Working at Sugar Factory

INTRODUCTION

Financial Management

Financial management is concerned with the managerial decisions, which result in the

acquisitions and financing of long term and short term credits for the firm. As such it deals with

such situations that require selection of specific assets and liabilities as well as the problem size

and growth of an enterprise. The analysis of these decisions is based on the expected inflows and

outflows of funds and their effects upon managerial objectives.

Social financial management is essential in both profit and non-profit organizations. The

financial management helps in monitoring the effective employment of funds in fixed asset and in

Working capital. The financial manager estimates the total assets of financial requirements and

position of the company.

The Maintenance of assets and maximization of profitability of the firm are the

main objectives of the financial management. Besides the basic objectives, the other objectives

of financial management are

1. Ensuring a fair return to shareholders.

2. Building up reserves or growth and expansion.

3. Ensuring maximum operational efficiency by efficient and effective utilization of finance.

4. Ensuring financial discipline in the organization.

Capital required for a business can be classified under two main categories Viz.,

Fixed capital

Working capital

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Every business needs funds for two purposes for its establishment and to carry its day-to-

day operations. Long-term funds are required to create production facilities through purchase of

fixed assets and such 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 expenses, etc these funds are known as working capital.

In simple words, working capital refers to that part of the firm’s capital, which is

required for short-term, or current assets such assets cash, marketable securities, debtors, and

inventories. Funds thus, invested in current assets keep revolving fast and are being constantly

converted into cash and these cash flows out again in exchange for other current assets. Hence it is

also known as revolving or circulating capital or short-term capital.

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1.1 INDUSTRY PROFILE

Sugarcane belongs to the genus SACCHARAM. The word sugar is divided from the

Sanskrit word SHARAKARA from which the word SACCHARAM seems to have been derived

indelicate the antiquity of knowledge of sugarcane in India. Sugar industry is the second largest

agro based industry in India next to textiles. It has emerged as the largest vacuum pan sugar

producer in the world. Sugarcane is grown in about 102 countries in the world and India Occupies

the first rank from the point of area followed by Brazil and Cuba. Andhra Pradesh occupies the

fifth place with regard to cane area and production in the country.

There are around 493 sugar mills across the country with an aggregate installed

capacity of 16.2 million tones. These are sitting on a mountain of inventory 10 months

consumption of closing stocks, to be precise some are there for long and some others have come in

recently has ensured that the industry has lost the confidence of all the major stakeholders such as

investors, banks, financial institutions and farmers. This has led the industry from one crisis to

another. The resultant rush by mills, especially from the north and the west, to scuttle the sugar

release mechanism by moving the courts has sent not only price market but also the industry as

well hurting downhill. The present cost structure is such that the mills could never be profitable

exporters.

Sugar comes under the essentials commodities Act. ISPO fact, there has been

control on all facts of regime that regulates the installed capacity, the minimum support price for

cane, the reservation of cane area for mills and the control over price and movement of sugar as

well its by product molasses, have all triggered a situation totally out of sync with market realities.

Gur and khandasari are traditional Indian sweeteners, which are produced in additional to

sugar. These are the natural mixture of sugar molasses. If pure clarified sugarcane juice is boiled.

What is left as solid is gur also called jaggery.

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Capital requirement in gur making is very less, when compared to the capital requirement

for a sugar plant of the same capacity. Currently around one- third of India’s sweetener production

of 26 million tons is the form of these products. While, the production of sugar has fluctuated

between 17-21 million tons. Around 4 million hectares of land is under sugar cultivation in India.

The production of sugarcane in the recent years has fluctuated between 230-300 million tons. The

Indian sugar industry is the second largest agro-processing industry in the country. India is the

largest consumer and second largest producer of sugar in the world next to Brazil.

Sugar as commodity is currently faced with a peculiar situation of huge inventories,

plunging prices, unpaid dues to cane farmers and mills suffering losses. The sugar production

fluctuates over the years; displaying a distinct cyclic trend typically Indian sugar industry follows a

five-year cyclic pattern. Imports and exports are resorted to when there is mismatch in domestic

sugar production. India had been an export of sugar till 2002-03. However, the country has started

importing sugar in 2003-04. Typically, the quantity imported or exported in 1-2 million tons,

depending on the excess/shortage situation.

The Indian sugar prices are largely governed by the releases of sugar made by the

government. Lower the release higher the price. The sugar economy in India is highly regulated,

starting from sugarcane to the use of end-product sugar. It has been a demand for liberalization of

the sugar economy. Efficient futures trading and subsequent price discovery would be the first in

this regard. These are three major grades of sugar traded in India –S 30, M 30 and L 30. These are

classified based on the size of granules.

There are certain problems faced by the sugar producing countries in the world including

India. Where there will be some difference in different regions, common problems faced by sugar

producing industries can be thrashed out if the representative from these different regions is met on

a common platform. Whether it is a matter of marketing, exports, government subsidies or

transport problems all have a commonality of features in themselves.

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Sugar industry is the single largest contribute or to the central government as well as state

government by way of paying excise duty, income tax, sales tax, purchase tax etc., by the sugar

industry. It also earns large amount of foreign currency by way of sugar exports to other countries.

Sugarcane is one of the most important cash crops in India. Sugar industry is seasonal industry.

The duration of season varying widely form area-to-area depending upon the availability of

sugarcane. Large number of workers is a seasonal employment skilled and semi-skilled worker.

These workers are paid retirement allowance while unskilled are not paid.

The potential of employment in sugar industry is depending upon the quality of

sugarcane, which is highly perishable in nature and susceptible to diseases, pests and climate

conditions. This is not a product to be transported over a long distance. The quality of sugarcane is

determined by its sucrose contents very from area to area depending upon the climatic conditions.

Irrigational facilities and cane development activities. The yield of cane per acre also varies form

area to area and also variety wise. Sugar industry is one of the industries located entirely on rural

areas. It is highly regulated industry in fixing the price of sugarcane and in marketing the finished

product and it is one of the heavy taxed industries in the country. The government collects tax

from sugarcane by way of purchase tax, sales tax, excise duty etc

Global scenario;-

No sugar or khandasari is produced on a commercial scale globally. Sugar is the

sweetener used worldwide.

Sugar is a carbohydrate named as source that occurs naturally in every fruit and

vegetable. Globally sugarcane and sugar beet are the major source of sugar is used as sweetening

agent in various household as well as industrial preparations. The global production of sugar, in the

recent years has been observed to be fluctuating between 130-140 million tons.

Major producers of sugar in the world are Brazil, India, and China, USA. Thailand,

Mexico, Australia, Cuba and Pakistan, which together account for 72% of world production.

Brazil, India and EU-15 are third of followed by China, Thailand and USA. Each year around 40

million tons of raw sugar is traded on the world market. Brazil is the world leading sugar exporter

with 25% of world exports (12-14million tons), followed by the EU-15 with 15% (6 million tons)

and Thailand with 5 million tons. The other major exporters are Australia and Cuba, with annual

exports of 3 to 4 million tons.

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The Russian federation (5-6 million tons), Indonesia (1.5-2 million tons), EU-15 (1.5-2

million tons), Japan (1-1.5 million tons), Korea (1-1.5 million tons), USA (1-1.5 million tons) is

the major global importers. Brazil sets the trend for world sugar prices. The Brazilian price is

dependent on the situation in the fuel sector since a major portion of its sugar production goes for

ethanol production, which is used as fuel in the country. Important world sugar market New York

(NYBOT), largest sugar futures market.

Major Indian Markets

Muzzafar nagar,

Mumbai,

Delhi,

Ludhiana,

Kolkata,

Hyderabad,

Chennai are major trading centers of sugar in India.

1.2 COMPANY PROFILE

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An Overview of Kovur Co-operative Sugar Factory:-

The Kovur Co-operative Sugar Factory is located at pothireddy palem village, Nellore.

The area occupied by the factory is exactly 122 acres of land. The government acquired the land.

The reason for the setting up the factory at that particular place was ideal available of raw

materials and other up infrastructure facilities the other reasons are the incentives offered by the

government for setting up of the plant in the backward area.

Structure of the Kovur Co-operative Sugar Factory Ltd

The Kovur Co-operative Sugar Factory Limited started its crushing operations on

06/03/1979 under the Co-operative Societies Act 1974. The factory had a capacity of 1250tons.

Now the sugar factory had a capacity of 2500tons it was intended to reach a recovery rate 9.5% for

the present crushing season.

The Kovur Co-operated Sugar Factory Limited is distributed 30% of the levy sugar directly

to the ration cardholders through the civil supplies department. The balance 70% is being

distributed indirectly to the ultimate consumer through the dealers (wholesalers and retailers).

Factors Influence the Selection of Site:-

Agricultural Soil

Nellore district is famous for its agriculture. Sugar cane (raw material) is mainly available in

the surrounding. Thus district is also tons for its sugar growth. The supply of sugarcane is

enormous for the year 1996-97 the production was above 3,500,00M.T’s which can be early

cracked by the sugar plant. The total area available for sugar cane cultivation in about 50,000acres.

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Irrigation Sources

The factory located on the back of the Penna River. The Penna water is diverted to kanigiri

tank and the survepalli tank. The kanigiri tank is the principle source of irrigation for a variety of

crops in the Kovur tank (which the factory located).

Labor

The labor available in the season in the required number. They are from the surroundings

110 villages.

Transportation

The main Nellore station is about 4km, from the factory in connected by a road the G.N.T

Road (meaning about 2km) that constitute the Chennai-Calcutta Highway and also to Chennai-

Bombay National Highway.

Cultivated Area

110 villages and 24 hamlets under 13 mandals cover the area of operation of the factory.

The surroundings of the factory consist of 907 of cane-cultivates land and with in the radius of 20-

30km.

Organised Structure of the K.C.S.F. Limited

From the start the M.D under the control of the board of directors and the chairman

managed the factory. A team of professional qualified and experienced person will assist him the

technical and commercial administration of the factory.

The board of directors has also set up a committee to help the M.D the committee has been

able to create awareness among the technical Person in the factory and improve production.

It had been able to set-up and monitor targets in the finance section. The Board of directors

and the chairman are elected by the shareholders. The state Government has appointed the M.D.

The Directorate A.P appoints the other 4 officers. Present there is no elected loard District

collector/personal in charge of the factory.

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Construction of Godown

The factory is utilizing more than the installed capacity and producing excess quantitative

of sugar. At present a factory is having 3 go downs which can store about 1, 50,000 quintals of

sugar. The factory is providing quintals of sugar in excess. It is being stored in private at a much

cost (8 to 10 Lakhs).

Division officers for benefit of growers

The divisional officers are opened at Kovur, Inamadugu, Rebala, Buchireddy palem,

Nellore and the at the factory, 8 months back the agricultural officer manages these offices the

lorries at the divisional officers are allotted for transportation of sugarcane.

Facilities Being Extended to the Cane Growers:-

Seed are supplied to cane growers on loan basis.

Fertilizers are being supplied to cane growers on lone basis with an interest rate of 12.4%

They indicates are being supplied to cane grower’s at 1/3 rd of their price through Development Corporation

Development of Seed Nurseries

At present they are having COC671 variety in most of the factory zone are but in its place

they are suggesting the early varieties 90A272, 87A298, 91A83, & 93A145, 83V15, CO7805 etc.

they are supplying the poor seed of the varieties of processing them from Chagall and West

Godavari District. The factory planning the seed nursery plantation in 250 acres in order to arrange

the seed for the next session. Which start from January 1997 onwards for planning in 2000, acres

they are also developing see in 30 acres for distribution to the cane growers.

Crushing Performance

They have spent about 16000 corers over the last 3 years for modernization and expansion

now they could crush up to 2500 TCD.

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BOARD OF DIRECTORS

MANAGING DIRECTOR

ADMINISTRATIVE OFFICER

Chief Agriculture

officer

Chief Accountant

officer

Chief Engineer

Chief Chemist

General Accountant

Stores Accountant

Cane Accountant

ORGANISATION CHART

2.1 REVIEW OF LITERATURE

Working Capital Management

The prime objective of any management is to make maximum profit. For attaining

maximum profit which enables the organization to accomplish to other objectives of the business

firms. Working capital management involves the administration of current assets of a firm namely

cash, receivables, and inventory.

Administration of fixed assets comes with in the preview of capital budgeting while the

management of working capital is a continuing function, which involves controlling of every day

and flow of financial resources circulating in the business. Therefore a business cannot survive in

the absence of satisfactory ratio between current assets and current liabilities. Before going to deal

with various aspects of working capital management it is better to under take definition and

concepts of working capital.

Definitions and Concepts of Working Capital:-

“Working capital management usually is considered to involve the administration of

current assets namely cash and marketable securities, receivables and inventories and the

administration of current liabilities”

- James C. Van Horne

“Working capital is the excess of current assets over current liabilities”

-J. S. Mill

“Working capital refers to the firm’s investment in the short term assets like cash, account

receivable and inventories”

- Western and Brigham.

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Concepts of Working Capital

There are two concepts or senses used for working capital these are

1. Gross working capital

2. Net working capital

1. Gross working capital

The concept of gross working capital refers to the total value of current assets. In other

words, gross working capital the total amount available for financial position of an enterprise. For

example, a borrowing will increase current assets and thus, will increase gross working capital but

at the same time it will increase current liabilities also. As a result the net working capital will

return the same. The business community usually supports this concept as it raises their assets and

their advantage to borrow the funds from external sources such as banks, and the financial

institutions. Gross working is the capital-total current assets.

2. Net working capital

The Net working capital is an accounting concept, which represents the excess of the

currents assets over the current liabilities. A currents asset consists of items such as cash, bank

balances, stock, debtors, bills receivables, etc., Excess of currents asset over the current liabilities

thus indicated the liquidity portion of an enterprise the ratio of 2: 1 between currents asset and

current liabilities considered as optimum or sound. It is important to mention that the Net working

capital will not increase in with every increase in gross working capital importantly Net working

capital will increase when there is increase in currents asset without corresponding increase in the

current liabilities.

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Significance of Working Capital:-

The significance of working capital are explained under the following heads namely,

1. Necessary Liquidity

2. Maximization of profits

3. Smooth Functioning

4. Increasing Firm’s value

1. Necessary Liquidity

The operating cycle that it takes certain time from spending money on raw materials to its

realization through the sales of finished goods. Therefore an enterprise needs necessary cash or

liquidity to meet its obligations during the intervening i.e., operating cycle. This is made possible

by working capital.

2. Maximization of profits

According to cardinal principle of financial management the maximization of profits

depends upon the proper balance between fixed capital and working capital. Working capital

management strikes this balance between the two by properly synchronizing cash inflows and cash

outflows.

3. Smooth Functioning

The significance of working capital is even more for small-scale enterprises as it seems

asset ensures the timely purchases of inputs even at competitive prices and payment to the factors

of production.

4. Increasing Firm’s value

Since working capital strikes proper balance between assets and liabilities it results in

increase in the market value of enterprise.

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Factors Determining the Working Capital :-

There are some of the important determinants of working capital namely,

1. Sales

2. Nature of business

3. Length of operating cycle.

4. Terms of credit

5. Seasonal variations

6. Turnover of inventories

7. Demand conditions.

1. Sales

Among the various factors size of sales is one of the important factors in the determining

the amount of working capital. In order to increase sales volume the enterprise has to maintain its

currents assets. In the course of period, the enterprise becomes in the position to keep the study

ratio of its current assets annual sales. As a result the turnover ratio, i.e. current assets to turnover

increases, reducing the length of operating cycle. Thus, less the operating cycle period less will be

requirements for working capital and vice versa.

2. Nature of Business

The requirement of working capital also varies among the enterprise depending upon the

nature of the business. For instance trading companies required more working capital than

manufacturing companies. This is because of that the trading business requires large quantities of

goods to be held in stock and also carry large amount of working capital than manufacturing

concerns. In both of these types of business, the value of current assets 80% to 90% of the values

of Total assets.

3. Length of operating cycle

The length of operating cycle can be defined as the time taken for the conversion of the

funds to loan. So longer the operating cycle time the more working capital required.

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4. Term of credit

Another important factor that determines the amount of working capital requirements

relates to the terms of credit allowed to the customers. Then the requirements of Working capital

will naturally be more if the credit period is longer and credit facilities are extend to all customers,

no matter reliable or non-reliable they are. This is because there will be longer Balances or debtors

and that too for a reliable longer period which will obviously demand for more capital.

5. Seasonal variations

The seasonal enterprise i.e. the enterprise whose operations pick up seasonally may require

more working capital to meet their increased operations during the Particular season.

6. Turnover of inventories

If inventories are large in size but turnover is slow, the small-scale enterprise will need

more working capital and the contrary is inventory is small but their turnover is quick, the

Enterprise will need a small amount of working capital.

7. Demand conditions

Most firms experience seasonal and cyclical fluctuations in demand for their productions

and services. These business variations affect the working capital requirements, especially the

temporary requirements of the firm.

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Sources of Working Capital:-

The two segments of working capital regular or fixed or permanent and variable are

financed by the long term and the short-tem sources of funds respectively. The main sources of

Long-term funds are shares, debentures, and short-term loans, retained earnings etc. The sources

of short-term funds used for financing variable part of working capital mainly include the

following:

1. Loans from commercial banks

2. Public deposits

3. Trade credit

4. Factoring

5. Discounting bills of exchange

6. Bank over draft

7. Cash credit

8. Accrual account

1. Loans from Commercial Banks

Small-scale industries can raise loan from the commercial banks with or without security.

This method of financing does not require any legal formally except that of creating a mortgage on

the Assets. Loan can be paid in lump sum or it parts. The short-term loans can also obtain from

Banks on the personal security of the directors of a company. Such loans are callers “clean and

advances” it is considered as one of the cheaper source of financing working capital requirements.

2. Public Deposits

Often companies find it easy and consentient to raise short-term funds by inviting the

Shareholders, employees and general public to deposit their savings with the company. It is a

Simple method of raising funds from the public for which the company has only to advertise and

inform the public that it is authorized by the companies Act to accept the deposits. The companies

can raise the public deposit subject to a maximum of 25% of their paid up capital free reserves.

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3. Trade Credit

Just as the companies sell all its goods on credit, they also buy the raw materials,

components and other goods on credit form their suppliers. Thus outstanding amounts payable to

the suppliers i.e., trade creditors for credit purchases are regarded as sources of finance. Generally

suppliers grant the credit to their claims for a period of 3 to 6 months.

4. Factoring

Factoring is a financial service designed to help firms in managing their books debts and

receivables in a better manner. The book debts and receivables are assigned to a bank called factor

and cash is realized in advance from the bank. For rendering these services, the fee or commission

charged is usually a percentage of the sale of the book debts and receivable factored. This method

of raising short-term capital is known as ‘factoring’. The factoring is very helpful financial service

to both the suppliers companies and purchasing company

5. Discounting Bills of Exchange

The buyer of goods generally draws when goods are sold on credit bills of exchanged for

acceptance. The bills are generally drawn for the period of 3 to 6 months. In practice the writer of

the bills instead of holding the bill till the date of maturity prefers to discount them with

commercial banks on the payment of a charge known as ‘discount’. If a bill is dishonored on

maturity, the bank returns the dishonored bill to the company who then becomes liable to pay the

amount to the bank.

6. Bank overdraft

Overdraft is a facility extended by the banks to their current account holders for a short

term generally for a week. A current account holder is allowed to withdrawn from its current

Deposit account up to a certain limit over the balance with the bank the interest is charged only on

the amount actually overdrawn.

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7. Advances from Customers

One way of raising funds for short-term requirement is to demand for advance from one’s

own customers. Examples of advances from the customers are advances at the time of booking of

car a telephone connection flat etc. This has become an increasingly popular pays source of short-

term finance among the companies.

8. Accrual Accounts

Generally there is a certain amount of time gap between incomes is earned and is actually received

or expenditure becomes due and it’s actually paid. Salaries, wages and taxes are become at the end

of the month but they are usually paid in the first week of the next month this source of raising the

fund does not involve any cost.

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Operating Cycle

The times require to complete the sequence of events in the case of manufacturing firm is called

operating cycle.

Operating Cycle of the Manufacturing firm

The operating cycle consist of 3 phases.

1st phase cash gets converted into inventory. This includes purchase of raw material,

conversion of raw material into work-in-process and working in program to finished

product.

2nd phase the stock is converted into receivables if credit sales are made.

3rd phase the conversion of receivable into cash after certain period.

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Cash

Debtor Sales

Finished Product

Work-in progress

Raw materials

The operating cycles of a non-manufacturing firm is

Operation cycle of non-manufacturing firm

“The operating cycle refers to the length of time necessary to complete the following cycle of

events”.

CASH MANAGEMENT

Cash is common purchasing power or medium of exchange. As such, it forms the most

important component of working capital. The term cash with reference to cash management is used

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Current Assets Current Liabilities

1. Cash 1. Bank over draft

2. Bank balance 2. Bills payable

3. Short term investment 3. Trade creditors

4. Bills receivable 4. Provision for taxation

5. Trade debtors 5. Proposed dividends

6. Short term loans & advances 6. Unclaimed dividends

7. Inventories

8. Prepaid payments

7.Advance payments

8. Outstanding expenses

Cash

Stock of finished goods

Accounts receivables

in two senses, in narrow sense it is used broadly to cover cash and generally accepted equivalent of

cash such as cheques, draft and demand deposits in banks. The broader views of cash also induce

near cash assets, such as marketable securities and time deposits in banks. The main characteristics

of this deposits that they can be really sold and convert into cash in short term. They also provide

short-term investment outlet for excess and are also useful for meeting planned outflow of funds.

We employ the term cash management in the broader sense. Irrespective of the form in which it is

held, a distinguishing feature of cash as assets is that it was no earning power. Companies have to

always maintain the cash balance to fulfill the dally requirement of expenses. There are four

primary motives for maintain the cash as follow

Motives for Holding Cash

There are four motives for maintaining cash balances.

1. Transaction motive

2. Precautionary motive

3. Speculative motive

4. Compensating motive

Transaction Motive

The requirement of cash balances to meet routine cash needs is called Transaction motive.

A firm enters into a variety of transactions to accomplish its objectives like payments purchases,

wages, operating expenses, interest, tax, dividends, similarly inflow of cash from sales, returs on

outside investments. These receipts and payments constitute a continuous two-way of cash. But

since they do not perfectly synchronize, a minimum cash balance is necessary to uphold the

operations for the firm if cash payments exceed receipts. Always a major part of transaction

balances is held in cash, a part may be held in the form of marketable securities whose maturity

confirms to the timing of anticipated payments of certain items, such as taxation, dividend etc.

Precautionary Motive

Cash flows are somewhat unpredictable, with the degree of predictability varying among

firms and industries. Unexpected cash needs at short notice may also be the result of following:

1. Uncontrollable circumstances such as strike and natural calamities.

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2. Unexpected delay in collection of trade dues.

3. Cancellation of some order for goods due unsatisfactory quality.

4. Increase in cost of raw material, rise in wages, etc.

The higher the predictability of firm’s cash flows, the lower will be the necessity of holding this

balance and vice versa. The need for holding the precautionary cash balance is also influenced by

the firm’s capacity to have short-term borrowed funds and also to convert short-term marketable

securities into cash.

Speculative motive

Speculative cash balances may be defined as cash balances that are held to enable the firm

to take advantages of any bargain purchases that might arise. While the precautionary motive is

defensive in nature, the speculative motive is aggressive in approach. However, as with

precautionary balances, firms today are more likely to rely on reserve borrowing power and on

marketable securities portfolios than on actual cash holdings for speculative purposes. The

speculative motive helps to take advantage of following

1. An opportunity to purchase raw materials at a reduced price on payment of immediate cash

2. A chance to speculate on interest rate movements by buying securities when interest rates are

expected to decline.

Compensative Motive

Banks provide services like clearance of cheque, supply of credit information, transfer of

funds. While for some of their services, banks charge a commission. Usually clients are required to

maintain a minimum balance of cash at the bank. Since the firms for transaction purposes cannot

be utilized this balance, the banks themselves can use the amount to earn a return equal to the cost

of services. Such balances are compensating balance.

Objectives of Cash Management

The basic objectives of cash management are as follows

1. To meet the payments schedules

2. Minimizing funds committed to cash balances.

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Functions of Cash Management

1. Cash planning.

2. Managing the cash flows.

3. Determining optimum cash balance.

4. Investing idle cash.

Advantages of Cash Management

Cash does not enter into the profit and loss account of an enterprise, hence cash is neither profit

nor lose but without cash, profit remains meaningless for an enterprise owner.

A sufficient of cash can keep an unsuccessful firm going despite losses

An efficient cash management through a relevant and timely cash budget may enable a firm

to obtain optimum working capital and ease the strains of cash shortage, fascinating

temporary investment of cash and providing funds normal growth.

Cash management involves balance sheet changes and other cash flow that do not appear in

the profit and loss account such as capital expenditure.

INVENTORY MANAGEMENT

Inventory management involves the control of assets being produced for the purposes of

sale in the normal courses of the company’s operation. Inventories include raw material, work-in-

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process and finished good inventory. The main goal of effective inventory management is to

minimize the total costs direct and indirect that is associated with holding inventories. How ever

the importance of inventory management to the company depends upon the extent of investment in

inventory.

Meaning

The term “inventory” refers to the stock file of the product which a firm is offering for sale

and the components that male the product.

Nature of Inventories

Inventories are stock of the product a company is manufacturing for sale and components

that make up the product. The various forms in which inventories exist in a manufacturing

company.

1. Raw materials

Raw materials are basic inputs that are converted into finished product. Raw materials

inventories are those units which have been purchased and stored for future productions.

2. Work-in-process

Work in process inventories are semi-manufactured products. They represent products that

need more work before they become finished products for sale.

3. Finished goods

Finished goods inventories are those completely manufactured products, which are ready

for sale.

Stocks of raw materials and work-in-process facilitate production, while stock of finished

goods is required for smooth maturing operation. Thus inventories serve as a link between the

production and consumption of goods.

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A firm also maintains a fourth kind of inventory or stores and spares. This category

includes those products which are accessories to the main products produced for the purpose of

sale.

Ex: bolts, nuts, clamps, screws etc.

Purpose of Inventories

The purpose of holding inventories is to allow the firm to separate the processes of

purchasing, manufacturing and marketing of its primary products. The goal is to achieve

efficiencies in areas where costs are involved and to achieve sales at competitive prices in the

market place.

The main purposes are

1. Avoiding losses of sales

2. Gaining quantity discount

3. Reducing order cost

4. Achieving efficient production.

Purpose of inventory

Objectives of Inventory Management

The main objectives of inventory management as follows

1. Ensure a continuous supply of raw materials to facilitate uninterrupted production.

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Firms holdingInventories

Purchasing

Producing

Selling

Avoid losses of sales

Gain Quantity discounts

Reduce Order Costs

Achieve efficient production

2. Maintain sufficient stocks of raw materials in periods of short supply and anticipate price

changes.

3. Maintain sufficient finished goods inventory for smooth sales operation, and efficient

customer service.

4. Minimize the carrying cost and time.

5. Control investment in inventories and keep it at an optimum level.

Inventory Control

A firm needs an inventory control system to effectively manage its inventory. Inventory

control is concerned with the acquisition storage, handling and use of inventories so as to ensure

the availability of inventory when ever needed provide adequate cushion for contingency and

derive maximum economy and minimize wastage and losses.

– R. K. Ghosh and G. S. Gupta,

Objectives of Inventory Control

To minimize the possibility of delay in production through regular supply of raw materials,

stores and spares, tools and other equipment and when required.

1. To avoid unnecessary capital locker up in inventories.

2. To exercise economies in ordering, the obtaining and storing of materials.

Ordering System of Inventories

26

In managing inventories, the firm’s objective should be in constance with the shareholder

wealth maximization principle. To achieve this, the firm should determine the optimum level of

inventory.

To mange inventories efficiency, answers should be sought to the following two questions

like

a. How much should be ordered

b. When should it be ordered

There are three important systems of ordering materials they are

1. Economic order quantity (EOQ)

Or

2. Fixed period order system or periodic re ordering system or periodic review system.

3. Single order and scheduled part-deliveries system.

Role of Inventory in Working Capital Management

Inventories are components of current assets. Some characteristics are important in the

broad context of working capital management including.

1. Current assets

2. Level of liquidity

3. Liquidity lags

4. Circulating activity

RATIOS

27

Current Ratio:-

Current ratio measures the firm’s short-term solvency of indicates the availability of current assets

in rupees for every one of current liability. A ratio greater than its standard means that the firm

has more current assets the current liability

Current Assets Current Ratio =

Current Liability

Liquidity Ratio:-

Liquidity ratio indicate that a relationship between quick or liquid assets and current

liabilities. An asset is liquid if it can be converted into cash immediately of reasonable soon

without a loose of values.

Quick (or) Liquid Assets

Liquidity Ratio =

Current liabilities

Liquid or Quick Assets = Current Assets – (Inventory + Prepaid Expenses)

Absolute Liquid Ratio:-

Since cash is most liquid asset a financial analysis may examine the ratio of cash and its

equivalent to current liabilities, trade investment on marketable secularity is equivalent to cash.

Absolute liquid Assets

Absolute liquid Ratio =

Current liabilities

RESEARCH METHODOLOGY

28

3.1 STATEMENT OF THE PROBLEM

Working capital management is very significant aspect in the management of finance of any

organization. By checking the level of working capital one can easily identify and profitability

position of the firm and the decision regarding.

1. The level of working, which can be determined, by the level of current assets and current

liabilities

2. Financing of current assets and current liabilities are of at most importance and significant

in the financial management of the business because it not only shows the financial

efficiency of business but also it credit worthiness, which has gained importance in these

days of credit squeeze. This fact has been justified by many industries, which have failed

frequently due to faulty management of working capital.

It is this view that a case study has been made on working capital management in Kovur

Cooperative Sugar Factory.

3.2 OBJECTIVES OF THE STUDY

To study the schedule changes in working capital of Kovur Cooperative Sugar Factory.

29

To study the working capital management with regards to cash, and inventory of Kovur

Cooperative Sugar Factory.

To analyze the liquidity position of Kovur Cooperative Sugar Factory.

3.3 NEED FOR THE STUDY

30

In the process of industrialization of a country the problem lies only in

financing a business unit at its initial stage but also in providing adequate working capital for its

day-to-day requirements. The efficiency and profitability of an enterprise is mostly determined by

adequacy of capital for short and medium loan requirements. Ultimately the working capital

contribution is the very base, which the super structure of modern industrial economy is erected.

But it must be known clearly that very often financing of working capital requirements of an

enterprise is an intricate and highly complex process entailing intelligent and careful managerial

approach. It was through that an in depth study will definitely help in improving the position of

working capital management of the Kovur Cooperative Sugar Factory.

3.4 SCOPE OF THE STUDY

31

Financial management is that the managerial activity which is concerned with the

planning and controlling of the firm’s financial resources. Though it was a branch of economics till

1890 as a separate activity or discipline, it is of recent origin. Still it has no unique body of

knowledge of its own and heavily on economics for its theoretical concepts even today.

The present study aims at the following

Highlighting the necessity of current assets and current liabilities.

Explain the need for holding cash.

Highlight the need for and a nature of inventory.

3.5 SOURCES OF THE DATA

32

The Data that being used in study was collected from two methods.

1. Primary data

2. Secondary data

1. Primary data

The primary data relating to Kovur Cooperative Sugar Factory were to be

collected through discussions with concerned officers and staff in the Finance Department of the

company.

2. Secondary data

The data relating to Kovur Cooperative Sugar Factory Ltd has been collected

through secondary sources viz., published annual Reports of the company during the years 2004-

2009.

Research Instrument

Annual reports of The Kovur Co-operative Sugar Ltd., from 2005-2010.

3.6 LIMITATIONS OF THE STUDY

33

The study will be only a provisional or based on the data collected from the published

annual reports during 2004-2009.

Working Capital standards pertain to relevant industry is also a limiting factor for analysis.

The company is defying to provide confidential matter regarding finance to outsiders.

4.1 DATA ANALYSIS AND INTERPRETATION

34

SCHEDULE OF CHANGES IN WORKING CAPITAL DURING

2005-06

PARTICULARS 2005 2006CHANGES

IN WORKING CAPITAL

CURRENT ASSETS (A)

InventoriesCash & Bank Balance

Loans & advancesOther current assets

11,05,91,0205,17,98,6957,57,21,4224,717,474

3,95,59,5455,00,68,8438,44,91,82551,45,801

INCREASE DECREASE

--

8,770,4034,28,327

7,10,31,4751,729,852

--

TOTAL (A) 24,28,28,611 17,29,66,014 91,98,730 7,27,61,327

CURRENT LIABILITIES (B)Sundry creditors

Other current liabilities

5,19414,26,91,553

5,19414,85,83,721

--

-58,92,168

TOTAL (B) 14,26,96,747 14,85,88,915 - 58,92,168

Working capital (A-B)

Net decrease in W.C

10,01,31,864

-

3,06,77,099

6,94,54,765

91,98,730

6,94,54,765

7,86,53,495

-

TOTAL 10,01,31,864 10,01,31,864 7,86,53,495 7,86,53,495

Source

Published annul reports of The Kovur Co-operative Sugar Ltd., 2005-2006

Analysis

As the above statement reveals the decrease of Working capital about 6,94,54,765/-. The above

figures is due to the decrease of current assets about 91,98,730/- and also increase of current

liabilities of about 58,92,168/-.

35

SCHEDULE OF CHANGES IN WORKING CAPITAL DURING 2006-07

PARTICULARS 2006 2007CHANGES

IN WORKING CAPITAL

CURRENT ASSETS (A)



3,95,59,5455,00,68,8438,44,91,82551,45,801

21,48,37,3485,32,88,3929,25,77,08740,78,126

INCREASE DECREASE

17,52,77,80332,19,54980,85,262

---

10,67,675

TOTAL (A) 17,92,66,014 36,47,80,953 18,65,82,614 10,67,675

CURRENT LIABILITIES (B)

Sundry creditorsOther current liabilities

5,19414,85,83,721

5,19414,85,83,721

--

--

TOTAL (B) 14,85,88,915 14,85,88,915 - -


Net increase in W.C

3,06,77,099

18,55,14,939

21,61,92,038

-

18,65,82,614

-

10,67,675

18,55,14,939TOTAL 216192038 21,61,92,038 18,65,82,614 18,65,82,614

Source


Analysis

As the above statement reveals the increase of Working capital about 18,55,14,939/-. The above

figure is due to the increase of current assets about 18,65,82,614 /-.


PARTICULARS 2007 2008

CHANGES

IN WORKING CAPITAL

36

CURRENT ASSETS (A)



21,48,37,3485,32,88,3929,25,77,08740,78,126

15,03,72,5553,55,09,2879,42,72,25135,16,286

INCREASE DECREASE

--

16,95,164-

6,44,647931,77,79,105

-5,61,840

TOTAL 36,47,80,953 28,36,70,379 16,95,164 8,28,05,738



5,19414,85,83,721

5,19420,49,38,891

-

-

-5,63,55,170

TOTAL (B) 14,85,88,915 20,49,44,085 - 5,63,55,170


Net decrease in W.C

21,61,92,038

-

7,87,26,294

13,74,65,746

16,95,164

13,74,65,746

13,91,60,908

-

TOTAL 21,61,92,038 21,61,92,038 13,91,60,908 13,91,60,908

Source


Analysis


figures is due to the decrease of current assets about 16,95,164 /- and also increase of current

liabilities of about 5,63,55,170 /-.



CHANGES

IN WORKING CAPITAL

INCREASE DECREASE

37

CURRENT ASSETS (A)



15,03,72,5553,55,09,2879,42,72,25135,16,286

20,90,40,2703,73,08,8269,37,98,80836,67,630

5,86,67,71517,99,539

-1,51,344

--

4,73,443-

TOTAL (A) 28,36,70,379 34,38,15,534 6,06,18,598 4,73,443



5,19420,49,38,891

5,19422,68,22,000

--

-2,18,83,109

TOTAL (B) 20,49,44,085 22,68,27,194 - 2,18,83,109


Net increase in W.C

7,87,26,294

3,82,62,046

11,69,88,340

-

6,06,18,598

-

2,18,83,109

3,82,62,046

TOTAL 11,69,88,340 11,69,88,340 6,06,18,598 6,06,18,598

Source


Analysis

As the above statement reveals the increase of Working capital about 3,82,62,046/-. The

above figures is due to the increase of current assets about 6,06,18,598/- and also decrease of

current liabilities of about 2,18,83,109/-.



CHANGES

IN WORKING CAPITAL

INCREASE DECREASE

38

CURRENT ASSETS (A)



20,90,40,2703,73,08,8269,37,98,80836,67,630

18,31,27,29235,60, 459

10,27,71,39436,38,137

89,72,586

2,59,12,97817,02,367

29,493

TOTAL (A) 34,38,15,534 32,51,43,282 89,72,586 2,76,44,838



5,19422,68,22,000

5,19425,30,71,827

--

-26,24,98,327

TOTAL (B) 22,68,27,194 25,30,77,021 - 26,24,98,327


Net decrease in W.C

11,69,88,340

-

7,20,66,261

4,49,22,079

89,72,586

4,49,22,079

-

-

TOTAL 11,69,88,340 11,69,88,340 5,38,94,665 5,38,94,665

Source


Analysis


figures is due to the decrease of current assets about 89,72,586/- and also increase of current

liabilities of about 26,24,98,327 /-

STATEMENT OF NETWORKING CAPITAL

Table: 4.1

39

YEAR CURRENT ASSETS

CURRENT LIABILITIES

NET WORKING CAPITAL

2005-2006 242828611 142696747 94292675

2006-2007 172966014 148588915 216192308

2007-2008 364780953 148588915 216192308

2008-2009 283670379 204944085 116988340

2009-2010 343815534 226827194 116988340

Source


Graph: 4.1

40

Interpretation

From the above graph the networking capital is 9,42,92,675 in 2006; and increasing as

21,61,92,308 in 2007 and 21,61,92,308 in 2008;and decreasing as 11,69,88,340 in 2009 and

11,69,88,340 in 2010.The increasing is due to the increase in current assets and decreasing is due

to decrease in current assets.

CASH MANAGEMENT IN K.C.S.F LTD

41

0

5

10

15

20

25

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Years

NE

TW

OR

KIN

G C

AP

ITA

L

Cash is the prime component in the current assets position of adequate amount of cash is

assigned of the liquidity position of the company. Higher the cash higher the liquidity. The average

cash and bank balances position of Kovur Cooperative Sugar Factory is given in the following

table.

Table: 4.2

AVERAGE CASH AND BANK BALANCES

Source


Graph: 4.2

42

YEARS CASH &BANK BALANCE

NET WORKING CAPITAL

CASH TO NETWORKINGCAPITAL RATIO

2005-2006 50933769 94292675 0.542006-2007 51678617 216192308 0.23

2007-2008 44398839 216192308 0.20

2008-2009 36409056 116988340 0.31

2009-2010 36457642 116988340 0.31

Interpretation

From the above graph the size of the cash & bank balances are 0.54% in the year 2005-06,0.23%

in the year 2006-07,0.20 % in the year 2007-08,0.31% in the year 2008-09,0.31% in the year 2009-

10. This ratio indicates the proportion of cash and bank balance. It is assumed that the level of cash

balance decides the liquidity, profitability aspects of the company. The lower the cash to

networking capital the greater may be the profitability of the concern and vice-versa. If any

company holds too low cash and bank balances in the relation to net working capital, it implies the

ability of firm to meet day-to-day requirement of cash. Practice of holding cash balance in relation

to net working capital indicates good cash management in sales.

PERCENTAGE OF CASH &BANK BALANCES TO CURRENT ASSETS

43

The percentage of the cash and balances will reveal the proportion of highly liquid assets in the

total current assets the higher the percentage the greater the liquidity. The details presented in the

following table.

Table: 4.3

CASH & BANK BALANCES AS A % OF CURRENT ASSETS

PARTICULARS 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Cash & Bank Balance 50068,843 53288392 35509287 37308826 35606459

Current Assets 172966014 364780953 283670379 343815534 325143282

Net Working Capital 94292675 216192308 216192308 116988340 116988340

% of cash to current assets 28.94 14.60 12.51 10.85 10.95

% of cash to working capital 53.1 24.64 16.42 31.89 30.43

Source


Graph: 4.3

44

Interpretation

From the above graph it was observed that the percentage of current assets in 2005-06 is

28.94%; in 2006-07 is 14.60%; in 2007-08 is 12.51%; in 2008-09 is 10.85%; in 2009-10 is 10.95%

and percentage of cash to working capital is 2005-06 is 53.1%; in 2006-07 is 24.64%; in 2007-08

is 16.42%; in 2008-09 is 31.89%; in 2009-10 is 30.43%.There is a gradual decrease in cash to

current assets for the period i.e., 2005-2009 because the difference in the ratio of increasing current

assets is high when compare to cash, and some what increased in the year 2009-2010.

PERCENTAGE OF INVENTORY TO TOTALCURRENT ASSETS

Table: 4.4

45

YEAR INVENTORY TOTAL CURRENT

ASSETS

% OF INVENTORY TO

TOTAL CURRENTASSETS

2005-2006 39559545 325358346 12.15

2006-2007 214837348 263581011 81.50

2007-2008 150372555 457091114 32.89

2008-2009 209040270 375507098 55.66

2009-2010 183127292 444624838 41.18

Source


Graph: 4.4

46

Interpretation

The total inventory as a percentage of the total current assets as 12.15% in the year 2005-06

it has increased as 81.50 % in 2006-07 and decreased in the year 2007-08 as 32.89%, then

increased as 55.66% in 2008-09,and decreased in the year 2009-10 as 41.18%

INVENTORY TURN OVER RATIO

47

Table: 4.5

YEAR SALES AVERAGE

INVENTORY

INVENTORY

TURN OVER RATIO

2005-2006 82152310 75075282 1.09

2006-2007 75013716 127198446 0.58

2007-2008 304917416 182604951 1.66

2008-2009 496306796 179706412 2.76

2009-2010 344176519 196083781 1.75

Source

Published annul reports of The Kovur Co-operative Sugar Ltd., 2005-2010.

Graph: 4.5

48

Interpretation

Inventory Turnover ratio measures the velocity and the efficiency of the company in

selling its products. In the year 2005-06 it was 1.09 %; and decreased to 0.58 % in the year 2006-

07; increased to1.66 % in the year 2007-08; increased to 2.76 % in the year 2008-09; decreased

to1.75% in the year 2009-10. So the firm was not efficient in management of inventory.

SHOWING HOLDING PERIOD OF INVENTORY

49

Table: 4.6

YEAR INVENTORY TURN

OVER RATIO

NUMBER OF

DAYS

NUMBER OF DAYS

FOR INVENTORY

2005-2006 4.15 360 87

2006-2007 0.69 360 522

2007-2008 4.05 360 89

2008-2009 4.74 360 76

2009-2010 3.75 360 96

Source


Graph 4.6

50

Interpretation

From the graph in the year 2005-2006 the holding period was 87 days, 522 days in 2006 –

07, 89 days in 2007-2008, 76 days in 2008-2009, 96 days in 2009-2010. The above graph shows

the inventory holding period from the year 2005 to 2010. The inventory was sold with in 76 days

in the year 2008-2009 it is less period when compared to other years.

CURRENT RATIO

51

Table: 4.7

YEAR CURRENT

ASSETS

CURRENT

LIABILITIES

RATIO

2005-2006 242828611 142696747 1.70

2006-2007 172966014 148588915 1.16

2007-2008 364780953 148588915 2.45

2008-2009 283670379 204944085 1.38

2009-2010 343815534 226827194 1.51

Source


Graph: 4.7

52

Interpretation

The above graph shows the current ratio of the firm in the year2005-06 is 1.70;in the year

2006-2007 is 1.16;in the year 2007-2008 is 2.45;in the year2008-2009 is 1.38; in the year 2009-

2010 is 1.51. Since the ratio is less than its standard except in the year 2007-08, the shot term

financial position of the company is unsatisfactory in all the years except 2007-08.

LIQUID RATIO

Table: 4.8

53

YEARS LIQUID ASSETS CURRENT

LIABILITIES

RATIO

2005-2006 198123265 142696747 1.38

2006-2007 45949460 148588915 0.30

2007-2008 210892112 148588915 1.41

2008-2009 70962479 204944085 0.34

2009-2010 157050105 226827194 0.69

Source

Published annul reports of The Kovur Co-operative Sugar Factory Ltd., 2005-2010

Graph: 4.8

54

Interpretation

From the above graph it can be observed that the liquid ratio in the year 2005-2006 is

1.38;in the year 2006-2007 is 0.30;in the year 2007-2008 is 1.41; in the year 2008-2009 is 0.34; in

the year 2009-2010 is 0.69.Since the liquid ratio is 1.38% in 2005-2006,and 1.41% in 2007-

2008,which are greater than the standard ratio (1:1), it maintain sufficient amount of liquid assets

so the performance is satisfactory in those two years and it was unsatisfactory in the remaining

years

ABSOLUTE LIQUID RATIO

Table: 4.9

YEARS CASH & BANK CURRENT RATIO

55

BALANCE LIABILITIES

2005-2006 50068843 142696747 0.35

2006-2007 53288392 148588915 0.36

2007-2008 35509287 148588915 0.23

2008-2009 37308826 204944085 0.18

2009-2010 35606459 226827194 0.15

Source

Published annul reports of The Kovur Co-operative Sugar Ltd., 2005-2010.

Graph: 4. 9

56

Interpretation

From the above graph it can be observed that the absolute liquid ratio in the year 2005-

2006 is 0.35;in the year 2006-2007 is 0.36;in the year 2007-2008 is 0.23; in the year 2008-2009 is

0.18; in the year 2009-2010 is 0.15.The average ratio during the period of study is 0.25.In the all

the years absolute liquid ratio is lower than the acceptable standard ratio (0.5:1), which indicates

that the firm has not maintaining sufficient level cash to meet its day-to-day obligations.

5.1 FINDINGS

57

The net decrease in working capital during the year 2005-2006 is Rs: 6,94,54,765

The net increase in working capital during the year 2006-2007 is Rs: 18,55,14,939


The net increase in working capital during the year 2008-2009 is Rs: 3,82,62,046


The networking capital is 9,42,92,675 in 2006; and increasing as 21,61,92,308 in 2007 and

21,61,92,308 in 2008; and decreasing as 11,69,88,340 in 2009 and 11,69,88,340 in

2010.The increasing is due to the increase in current assets and decreasing is due to

decrease in current assets.

The size of the cash & bank balances are 0.54% in the year 2005-06,0.23% in the year

2006-07,0.20 % in the year 2007-08,0.31% in the year 2008-09,0.31% in the year 2009-10.

The percentage of current assets in 2005-06 is 28.94%; in 2006-07 is 14.60%; in 2007-08 is

12.51%; in 2008-09 is 10.85%; in 2009-10 is 10.95% and percentage of cash to working

capital is 2005-06 is 53.1%; in 2006-07 is 24.64%; in 2007-08 is 16.42%; in 2008-09 is

31.89%; in 2009-10 is 30.43%.

Inventory Turnover ratio measures the velocity and the efficiency of the company in selling

its products. In the year 2005-06 it was 1.09 %; and decreased to 0.58 % in the year 2006-

07; increased to1.66 % in the year 2007-08; increased to 2.76 % in the year 2008-2009;

decreased to1.75% in the year 2009-10. So the firm was not efficient in management of

inventory.

58

In the year 2005-2006 the holding period was 87 days, 522 days in 2006 –2007, 89 days in

2007-2008, 76 days in 2008-2009, 96 days in 2009-2010. The inventory was sold with in

76 days in the year 2008-2009 it is less period when compared to other years.

The current ratio in the year2005-06 is 1.70; in the year 2006-2007 is 1.16;in the year

2007-2008 is 2.45;in the year2008-2009 is 1.38; in the year 2009-2010 is 1.51. Since the

ratio is less than its standard except in the year 2007-08, the shot term financial position is

unsatisfactory in all the years except 2007-08.

The liquid ratio in the year 2005-2006 is 1.38; in the year 2006-2007 is 0.30;in

theyear2007-2008 is 1.41; in the year 2008-2009 is 0.34; in the year 2009-2010 is 0.69. The

liquid ratio was less than standard ratio in all the years; therefore liquidity position is

unsatisfactory.

In the all the years absolute liquid ratio (0.25) is lower than the acceptable standard ratio

(0.5:1), which indicates that the firm has not maintaining sufficient level cash to meet its

day-to-day obligation.

59

5.2 SUGGESTIONS

The firm should take measures to increase the current assets double the current liabilities to

increase current ratio to make them equal to the standard ratio inorder to improve the

working capital.

It is suggested to make investment in inventories and to improve the performance in

inventory management.

The firm facing main problem about raw material so management should offer best prices

and seed capital to farmers to increase the raw material.

60

5.3 CONCLUSION

The study reviewed the Working Capital position and short-term financial strength of

the Kovur Cooperative Sugar Factory Limited. It was found that the level of current assets like

cash and bank balances and inventory are less in working capital due to step fall in the sales,

and more investment on fixed assests. For improving working capital management and short-

term financial strength, they can invest and utilize the short-term assets.

61

BIBILOGRAPHY

Financial Management. Theory & Practice Prasanna Chandra Tata Mc Grawhill

1977

Financial Management I.M.Pandey Vikas Publications 1999.

Management Accounting Practice-R.K.Sharma, Seshi K.Gupta

Financial Management Decision Making Jon Hampton practice Hall India 1992

Annual Reports and Accounts of Vijaya Dairy, Nellore.

Web site: www.google.com.

62

http://www.google.com/

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