KS

Published on March 2017 | Categories: Documents | Downloads: 24 | Comments: 0 | Views: 211
of 72
Download PDF   Embed   Report

Comments

Content

 

A Study on Funds Management

INTRODUCTION TO FINANCE: Finance Fin ance is regarded as the “LIFE BLO B LOOD OD OF A BUSINESS ENTERPRISE”. This is because in the modern money-oriented economy finance is one of the basic foundations of all kinds of economic activities. It is the master key, which provides access to all the sources for being employed in manufacturing and merchandising activities. It has rightly been said that  business needs money, only when it is properly managed. Hence, efficient management of every business enterprise is closely linked with efficient management of every business enterprise is closely linked with efficient management of its finances. Finance is defined as “study of money management”. It is often descri bed descri bed as a part of the nervous system of a business. In its overall sense, finance embraces many areas other than corporation finance, money, banking, and credit of various types and classes. Considered as whole, finance may be said to be the circulating system of this economy body making  possible the needed co-operation between any units units of activity. The dimensions of finance have undergone phenomenal transformation during the last few decades. Until the recent past, finance was considered as an economic activity, concerned with procurement of funds for business purpose and the financial managers was considered the keepers of books of accounts and providers of capital needed by the enterprise. However, the financial managers are now become an integral part of the enterprise and are involved in the problems of decisions pertaining to the management of the asset of the enterprise.

FINANCE FUNCTION: Finance function is the important of all business functions. It remains a focus of all activities. It is not possible to substitute or eliminate this function because the business will close down in the absence of finance. The need for money is continuous. It starts with setting up the enterprise and remains at all the times. The development and expansion of  business rather needs more commitment of funds. The fund will have to be raised from various sources. The sources will be selected in relation to implications attached with them. The success of finance function will depend upon its planning. The receiving of money is not enough, its utilization is more important. The money once received will have to be returned

IFIM COLLEGE BANGALORE

Page 1

 

A Study on Funds Management

Also. If its use is proper then its return will be easy otherwise it will create difficulties for repayment. The management should have an idea of using the money profitability. It may be easy to raise funds but it may be difficult to repay them. The inflows and outflows of funds should be properly matched.

OBJECTIVES OF FINANCE FUNCTION ARE:   Mobilization of resources for the economy.     Channelizing the money in productive activities.     Generating income or profit.    Creating assets for the use of masses.     Contribution to the activities of promotion of the economy.  

A number of approaches are associated with the finance fi nance function The first approach to finance function is related to the providing of funds needed by a  business on most suitable terms. This approach confines this function only to raising of funds. The utilization of funds is considered out of the purview of the finance manager. It is felt that decisions regarding the application of funds are taken somewhere else in the organization. However, institutions and instruments for raising funds are a part of finance function. This function is wider than merely finding out sources of funds. Another approach relates finance function to cash. Every transaction in business is directly or indirectly connected with cash. This approach implies that finance function is not that board is implied by this approach. Third approach to this function envisages the raising of funds and their effective utilization. Finance function does not stop only by finding out sources and raising enough funds. Their proper utilization is also under its purview. The cost of raising funds and the return from their use should be compared. The funds should be able to

IFIM COLLEGE BANGALORE

Page 2

 

A Study on Funds Management

Give more returns than the cost involved in procuring them. The utilization of funds involves decision making. So finance function covers financial planning, rising of funds, allocation of funds, financial control, etc.  

The aim of finance function is to arrange as much funds for the business as required from time to time. This function has the following aims.

1.  Acquiring sufficient funds: The aim of finance function is to assess the financial needs an enterprise and then finding out suitable sources for raising rais ing them. The sources should be commensurate with the needs ne eds of the business. If funds are needed for longer periods then long term sources like share capital, debentures, term loans may be explored. A concern with longer gestation period should rely more on owner‟s funds instead of interest bearing securities because profits may not be there for some years.

2.  Proper utilization of funds:  Though raising of funds is important but their effective utilization is more important. The funds should be used in such a way that maximum benefit is derived from them. The return from there should be more than their cost. It should be ensured that funds do not remain idle at any point of time. The funds committed to various operations should be effectively utilized. Those projects should be preferred which are beneficial to the  business.

3.  Increasing profitability: The planning and control of finance function aims at increasing profitability of the concern. It is true that money generates money. To increase profitability, sufficient funds will have to be invested. Finance function should be so planned that the concern neither suffers from inadequacy of funds nor wastes more funds then required. A proper control should also be exercised so that scarce resources are not fulfilled away on uneconomical operations. The cost of acquiring funds also influences profitability of the business. If the cost of raising funds is more, the profitability will go down. Finance function also requires matching of cost and return from funds.

IFIM COLLEGE BANGALORE

Page 3

 

A Study on Funds Management

4.  Maximizing concern’s value:  value:  Finance function also aims at maximizing the value of the firm. It is generally said that a concern‟s value is linked with its profitability. Even though profitability influences a firm‟s value but it is not all. Besides profit, the type of sources used for raising funds, the cost of funds, the conditions of money market, the demand for products are some other considerations which also influence a firms value.

FUND FLOW ANALYSIS:  The fund flow analysis is taken is undertaken to highlight changes in the financial condition of a business concern over a period of time. The FUNDS FLOW STATEMENT is a statement, which shows the movement of funds on the report of the financial operations of the business undertaking. It indicates various means by which funds were during the particular period and the ways in which these funds were employed. In simple words, it is a statement of sources and application of funds. This statement is derived from an analysis of the changes that have occurred in the assets and liabilities items between the two balance sheets dates. With the help of the statement, an analyst can judge the liquidity position of the board, and the spending and financing habits of the management. In several instances, a board has a fairly good earning record, yet it may experience a shortage of liquid resources, which may often impel it towards liquidation. Contrary to this, despite low profits, a board may be placed comfortably with respect to working capital. Furthermore, the funds flow statement provides an insight in to financing pattern of an enterprise. An analysis of the major sources of funds in the past reveals what portion of the growth was financed by internal resources and what portion of external resources. It shows weather the board has been expanding its scale scal e of business by building up additional plant

IFIM COLLEGE BANGALORE

Page 4

 

A Study on Funds Management and equipments or by increasing its sales, or whether it is involved in purely routine affairs of distributing dividends and redeeming long-term debts.

FUNDS: In a narrow sense, fund means cash only. In border sense, it refers to money values in whatever form it may exist. In a popular sense, it means working capital, i.e., the excess of current assets over current liabilities.

FLOW OF FUNDS: The term „flow‟ means movement and includes both „inflow‟ and „outflow‟. The term „flow of funds‟ means transfer of economic  economic  values from one asset of equity to another. The flow of funds occur when a transaction changes on the one hand a non-current account and on the other on the other a current account and vice-versa. Flow of funds is said to have taken place when any transaction makes changes in the amount of funds available before happening of the transaction. If the effect of transaction in the increase of funds, it is called a source of funds and if it results in the decrease of funds, it is known as an application of funds.

FUNDS FLOW STATEMENT: In every concern, the funds flow in from different sources and similarly funds are invested in various source of investment. It is a continuous process. The study and control of this funds flow process (i.e., the uses of sources of funds) is the main objective of financial management to assess the soundness and the solvency of the enterprise. The funds-flow statement is a report on financial operation changes, flow of movements during the period. It is a statement which shows the sources and application of funds or how its shows the activities of a business or finances in a particular period. In other words, such a statement shows how the financial resources have been used during a  particular period of time. It is thus a historical statement showing sources and applications of funds between the two dates designed especially to analyze the changes in the financial conditions of an enterprise. IFIM COLLEGE BANGALORE

Page 5

 

A Study on Funds Management

In the words of FOULKE, it is “A statement of sources and application of funds is a technical device designed to analyze the changes in the financial condition of a business enterprises enterprise s between two dates”.  dates”.  

SOURCES OF FUNDS: Transaction that increase working capital are sources of funds of them are 1.  Funds from operations. 2.  Funds from issues of share capital. 3.  Funds from issue of debentures, acceptance of public deposits and other long-term loans. 4.  Sales of fixed assets.

APPLICATION OF FUNDS: The following are application of funds 1.  LOSS FROM OPERATION: loss from operations either decreases the

current assets or increases the current liabilities or in other words reduces the funds. It may either be shown as application of funds statement or as a reduction in sources of funds.  2.  PURCHASES OF FIXED ASSETS: If any fixed asset like building, machinery, furniture, or investment is purchased, it will reduces the current

assets [cash] without any corresponding decrease in current liability it is thus an application of funds.   3.  REPAYMENT OF LOANS: Redemption of debentures or preference share

capital. Any such repayment including the payment of premium on redemption of debentures or preference shares is an application of funds  because it reduces the current assets.  

IFIM COLLEGE BANGALORE

Page 6

 

A Study on Funds Management

4.  PAYMENT OF DIVIDEND:  Payment of dividend [and not proposed

dividend] is an application of fund  5.  OTHER APPLICTIONS:  Any loss such as embezzlement, compensation,

donations etc. Involving cash is an application of funds. 

Increase in working capital:  Increase in working capital [as per schedule of changes in

working capital] represents investment in current assets hence it is an application of funds. In other words, the excess of sources over application of funds is increase in working capital.

IMPORTANCE OF FUND FLOW STATEMENT Fund flow statement is analytical tool in the hands of financial manager. The basic purpose of this statement is to indicate an historical basis the changes in working capital i.e., where funds come from and were there are used during a given period. The utility of fund floe statement can be measured on the basis of its contribution to the financial management. It generally serves the following foll owing purpose they are given below 1.  Analysis of financial position:  The basic purpose of preparing the statement is to

have a rich into financial operations of the concerns. It analyses how the funds were obtained and used in the past. In the sense, it is a valuable tool for the finance manager for analyzing the past and future plans of the firm and their impact on the liquidity. He can reduce the reasons for imbalances in uses of funds in the past to take necessary corrective actions. In analyzing the financial position of the firm, the fund floe statement answers such question as   Why were the net current assets of the firm down, though the net income was

up or vice versa?   How was it possible to distribute the dividends in absence of or in excess of

current income for the period/   How was the sale proceeds of plants and machinery used? IFIM COLLEGE BANGALORE

Page 7

 

A Study on Funds Management   How were the debts retired?   What became to the proceeds of plant of share issue or debenture issue?

fin anced?   How was the increase in the working capital financed?   Where did the profits go?

Though it is not an easy job to find the definite answer to such question because funds derived from a particular source are rarely used for a particular purpose. However, certain useful assumptions can often be made and reasonable conclusions are usually not difficult to arrive at. 2.  Evaluation of the firms financing:   One important use of the statement is that it

evaluates the firm financing capacity. The analysis of sources of funds reveals of the firms financed its development in projects in the past i.e., from internal sources or from external sources. It also reveals the rate of growth of the firm. 3.  An instrument for allocation of resources:  In modern large scale business available

funds are always short for expansion programs and there is always a problem of allocation of resources. It is therefore a need of evolving an order of priorities for  putting through their expansion programs which are faced accordingly and funds have to be arranged as different phases of programs get in to their stride. The amount of funds to be available for this project shall be estimated from finance with the help of fund flow statement. This prevents the business from becoming a helpless victim of unplanned action.  4.  A tool of communication to outside world:  Fund flow statement helps in gathering

the financial statement of business. It gives an insight into the evolution of the present financial position and gives answer a nswer to the problem „where have our resources been moving‟? in the present world of credit financing, it provides useful information to  bankers, creditors, financers, government etc regarding amount of loan required and its purpose, the term of repayment and sources of repaym repayment ent of loan etc. the financial manager gains a confidence born out of a study of fund flow statement.  

IFIM COLLEGE BANGALORE

Page 8

 

A Study on Funds Management

5.  Future guide:  An analysis of fund flow statement of several years certain valuable

information for the financial manager for planning the future financial requirements of the firm and their nature too i.e., short-term, long-term or midterm. The management can formulate its financial policies based on information gathered from the analysis of such statement. Financial manager can rearrange the firms financing more effectively on the basis of such information along with the expected changes in trade payables and the various accruals. In this way it guides the management in arranging its financing more effectively.  

LIMITATION OF FUND FLOW STATEMENT: The fund flow statement has a number of uses however; it has certain limitations also which are listed below   It has been remembered that fund flow statements is not a substitute of an income

statement or a balance sheet. It provides only some addition as regards changes in working capital.    It cannot reveal continuous changes.     It is not an original statement but simply re-arrangement of data given in the

financial statements.    It is essentially historic in nature and projected fund flow statement cannot be

 prepared with much accuracy.    Changes in cash are more important and relevant for financial management than

the working capital. 

IFIM COLLEGE BANGALORE

Page 9

 

A Study on Funds Management

RESEARCH DESIGN

TITLE OF THE STUDY  "A

S STU TU D Y

ON

TH E

F UND

M AN AGEM EN T

WI TH

R EFER EFERN N EC ECE E

TO

 KARNATAKA  KARNA TAKA SO SOAPS APS AND DETERG DETERGENTS ENTS LI LIMITED”  MITED”  

STATEMENT OF THE PROBLEM: Funds management is one of the crucial function of the top level management which will influence the profitability and financial position of the company so there is lot of  problems involved in the managing of funds of the company, this study is an attempt to understand the sources and deployment of funds by the Karnataka soaps and detergents ltd and evaluate its operating efficiency, also there is a need for research on funds management. Analysis of funds management performance is one of the major requirements for  planning because owners, management, creditors, prospective investors, and employees are involved in the decision making process. Government and financial institutions require it, as they are interested to know the financial soundness of the company. This underlines the importance of funds management analysis and the current study is conducted to investigate into funds management to evaluate the performance and profitability of Karnataka Soaps and Detergents Ltd.

IFIM COLLEGE BANGALORE

Page 10

 

A Study on Funds Management

OBJECTIVES OF THE STUDY: Following are the objectives of analyzing the Funds management:   To evaluate the statement of sources and application of funds of KS & DL over

the past five years.    To analyze present and future earning capacity of profitability of KS&DL,     To understand the short-term and long term solvency of KS&DL for the benefit of

the debenture holders and trade creditors.   To evaluate financial stability of KS&DL.   To study the income and expenditure of KS & DL.   To evaluate operational efficiency of KS&DL as a whole and of its various parts

or departments. 

SCOPE OF THE STUDY: The scope of the study covers evaluating the Funds management by analyzing the financial statement of Karnataka Soaps and Detergent Limited  which was collected from the  present record and from discussion discussion with the company‟s accountant. The study aims at analyzing the comparative balance sheet of Karnataka Soaps and Detergent Limited over last five years and interpreting how working capital is managed and also the different ratios and suggesting remedies for better performance.

This Study gives the information about financial aspects of KS&DL from 2009 to 2012. This study was done in the time duration of 4 weeks from the information provided by concerned officials of KS&DL.

IFIM COLLEGE BANGALORE

Page 11

 

A Study on Funds Management

RESEARCH METHODOGY The purpose of methodology is to describe the process involved in research work. This includes desi gn, data collection method, the field survey and the analysis of data the overall research design,

RESEARCH DESIGN A research design is a logically logicall y and systematic plan prepared for directing a rese research arch study. It specifies the objectives of the study, the methodology and the techniques to be adopted for achieving the objectives. It constitutes the blue print for the collection, measurement and analysis of data   It is an outline that specifies the sources and the types of information relevant to the

research question.   It is a blue print specifying the methods to be adopted for gathering and analysis the

data.   It should facilitate in obtaining required information.   It should suit to the availability of resources and time.

TYPE OF STUDY The research is made in a descriptive way of study. The financial statements are analyzed through various tools of financial statements analyses. Analytical method of study is done by following the trend analysis relating to the source and deployment of funds which helps to analyze financial statement of the company. The analysis is done by the trend series and certain financial ratios.

SOURCES OF DATA The source of data collected for this study could be broadly classified in two categories.

1.  PRIMARY DATA: The tools used for primary data collections are purely based on personal enquiry with the executives and staff of the entire department including finance department for IFIM COLLEGE BANGALORE

Page 12

 

A Study on Funds Management collecting data about the company. The enquiry was done in order to achieve and collect much information to make the project more effective.

2.  SECONDARY DATA: The secondary data has been collected from various published sources like journals, magazines etc. It is also obtained from published sources like annual reports, company profile, books of accounts, other relevant text book etc.

PLAN OF ANALYSIS The data collected from the secondary sources have to be processed & interpreted systematically it includes such as:  

Interpretation of the study for 5years.

 

Application of ratio analysis for the period of the study

 

Identification of the changes in the working capital with the increase or decrease of

the amount in the balance sheet of 5 years.  

Calculation of various ratios reflecting the current ratio, quick ratio, cash ratio,

inventory turnover ratio, creditors turnover ratio, average payment period, working capital ratio etc..

LIMITATION OF THE STUDY    Study of funds management is limited to the information gathered through the enquiry

and discussions with the company officials and executives.   The period of study was very less.   Inter firm and Intra firm comparison is not possible.   Analysis of the study was dependent on the information provided by the organization.   The study is done only on the basis of financial statement of 5years only.

IFIM COLLEGE BANGALORE

Page 13

 

A Study on Funds Management CHAPTER SCHEME  SCHEME  I. 

INTRODUCTION: This chapter includes introduction to finance and fund flow

statements and importance of funds.  

II. 

RESEARCH DESIGN:

Introduction, meaning, definition of research design. Nature/essential of a good research design. It also includes Title of the project, statement of the problem, objective of the study, research technique, sampling design, methods of data collection, tools of data collection, plan of analysis, limitations of the study, chapter scheme. III. 

COMPANY PROFILE:

This chapter gives us the profile of KS&DL. It provides details regarding KS&DL, nature of its activities, organizational structure, functional departments, its vision and mission, business operations, product profile, market status, competitors, a brief SWOT analysis and future prospects for the growth of KS&DL. IV. 

DATA ANALYSIS AND INTERPRETATION: INTERPRETATION:

This chapter focuses upon the data which is collected to know the funds management of KS & DL through the comparative balance sheet.  This chapter also shows various ratios like current ratio, liquidity ratio, turnover ratios and the liquidity position of KS&DL.

V. 

SUMMARY OF FINDINGS SUGGESTIONS AND CONCLUSION:

This chapter of the study includes the findings of the overall study at KS&DL on  basis of data analysis and the conclusion which is online with objectives of the research. VI. 

BIBILIOGRAPHY, BIBILIOGRAP HY, APPENDICES AND ANNEXURES:

This chapter includes the bibliography of the study and balance sheet of the organization.

IFIM COLLEGE BANGALORE

Page 14

 

A Study on Funds Management PROFILE OF THE COMPANY  INTRODUCTION TO SOAP INDUSTRY:  Soap is one of the commodities which have become an indispensable part of the life of modern world. Since it is non durable consumer goods, there is a large market for it. The whole soap industry is experiencing changes due to innumerable reasons such as government relations environment and energy problems increase in cost of raw material mater ial etc. The changing technology and ever existing desire by the individual and the organization to produce a better product at a more economical rate has also acted as catalyst catal yst for the dynamic process of change. More and more soap manufactures are trying to capture a commanding market share by introducing new products. The soap industry in India faces a cut throat competition with multinational companies dominate the market. Th e y a re al so f ac i ng s e ve re th re at fr o m dy dyna nami micc an and d en ente terp rpri risi sin ng new new en entr tran ance ce especially during 1991-92.If we look back into the history of soaps & detergents, mankind knew about soaps nearly 2000 years back i.e. in 70 A.D. when Mr. Elder accidentally accidentall y discovered the soap, when roa st ed me at ov er fl owe d on th e gl ow in as hes . Thi s l um p l i k e p r o d uc t w a s s o a p & h a d fo foam amin ing g & cl clea eans nsin ing g ch char arac acte ter. r. In 11 1192 92 A. A.D. D. th thee fir first st com comme merc rcial ial ba batch tch of soa soaps ps was was made made &mar &mar ket ed by M/s Bri st ol soa p mar ket in London, from ther e i n 1662A.D . t he firs t patent for maki making ng so soap ap was was ttak aken en in London. The world consumption of soap in 1884A.D. was said to be 2 lakh tonnes p.a. Soap manufacturing was started in North America. Some American companies with well known names were started 200 years ago. During middle age soap was made at vari variou ouss places in Ital y, France, England & other countr ies. France became famous & many small factories were established there.

In India the first soap industry was established by North West soap company in1897 at Meerut following the swadeshi movement. From 1905 onwards few more fac tor ies we re setu setup. p. They They ar are, e,

  Mysore government soap factory at Bangalore



       

   

Godrej soap at Bombay Bengal chemicals Tata oil mills 1930 lever brothers comp

THE INDIAN SOAP INDUSTRY SCENARIO:  The Indian soap industry has long been dominated by hand full of companies such as: 1. Hindustan levers limited 2. Tata oil mills (taken over by HLL) 3. Godrej soaps private limited. IFIM COLLEGE BANGALORE

Page 15

 

A Study on Funds Management 4. Recent entrants include –  include –  Colgate  Colgate Palmolive Ltd, Proctor & Gamble Ltd,  Nirma Soap works, Wipro Ltd etc. The Indian soap industry continued to flourish very well until 1967-68, but began to stagnate & soon it started to recover & experienced a short upswing in 1974. This increase in demand can be attributed due to; 1. Growth of population. 2. Income & consumption increase. 3. Increase in urbanization. 4. Growth in degree of personal hygiene.

Soap manufacturers are classified as 1.  Organized. 2.  Unorganized.

PRESENT STATUS:

Market scenario:  India is the ideal market for cleaning products. Hindustan liver, which towers over the cleaning business, sells in all over the cleaning business but the tiniest of Indian settlements. The 7.4 lakhs tons per annum soap market in India in crawling along at 4%The hope lies in raising Rupee worth, the potential for which is high because the Indian soap market is pseudo in nature & it is amazingly complex being segmented not only on the basis of price benefits,  but even a range of emotions within that outlining framework.

PROBLEMS OF SOAP & DETERGENT INDUSTRY:  Soap industry faces some problems in case of raw materials. The maj The major or ingre ingredi dien ents ts are are so a p a s h , linear alkyl, benzene& sodium. Tripoli phosphate poses number of seriou s problems in terms of availability. The demand supply gap for vegetable oil is 1.5 to 2 lakh tons & is met through imports. In recent t imes, caustic soda and soap ashes in the cheaper varieties of soaps are quite high.  

IFIM COLLEGE BANGALORE

Page 16

 

A Study on Funds Management COMPANY PROFILE THE FOUNDERS OF MYSORE SANDAL SOAP:

Sir M. Visvesvaraya

Nalwadi krishnaraja Wodeyar

Sri S. G. Shastri HISTORY OF KARNATAKA SOAPS AND DETERGENTS LIMITED:

India is rich land of forest, ivory, silk, sandal, precious gems are magical charms of centuries. The most enchanting perfumes of the world got their exotic smell with a twist of sandal. The world‟s world‟s   richest sandalwood resource is from isolated stretch of forests land in south India in Karnataka. The origin of sandalwood and its oil in Karnataka, which is used in making of Mysore sandal soaps, is well known as fragrant ambassador of India and sandal wood oil is in fact known as “LIQUID GOLD”.  GOLD”.  IFIM COLLEGE BANGALORE

Page 17

 

A Study on Funds Management By the inspiration of his highness Maharaja of Mysore late Jayachamarajendra wodeyar, the trading of sandalwood logs started which was exported to Europe and new destinations, but with commencement of First World War faced severe crisis on the business of sandalwood. This situation gave arise to start of an industry, which produces value added products i.e., of sandalwood oil. His highness maharaja of Mysore created this situation as an opportunity by sowing the seed of the government sandalwood oil factory, which is present Karnataka soaps and detergents Ltd. The project was shaped with the engineering skills and expertise of the top level. Sir M.Visvesvarya, the great engineer who was the man behind the  project. “Government soap Factory” in Bangalore was established est ablished by the Maharaja of M Mysore ysore Nalwadi Krishna raja Wodeyar  and Diwan  Sir M. Visvesvaraya  during the year 1916.

The soap making process was perfected under the stewardship of eminent scientist Shri S. G. Shastri. The sandalwood Oil Division in Mysore was established during the year 1916 and Sandalwood Oil Division at Shimoga was established during the year 1944. 

arnataka soaps and detergents limited [KS&DL]  –   a Government of Karnataka K arnataka undertaking is involved in the extraction of sandalwood oil and in the manufacture of soaps, Detergents, Incense sticks and sandal Talc, having over 9 decades of experience in this field. KS&DL today is one of the largest producers of sandalwood oil and sandal soap in the world, with a turnover of Rs.125crs. The sandal soaps of KS&DL have a definite niche in the soap market with the oldest known perfumery material sandalwood as its main ingredient. Sandal Soaps of KS&DL are probably the only soap in the world with pure natural sandalwood oil. KS&DL is the true inheritor of India‟s golden sandalwood legacy, the sandalwood oil which is also known as Liquid Gold. Sandal wood oil is recommended in ancient ayurvedic texts for skin care, has excellent antiseptic properties and soothes prickly heat and other skin rashes too. This is the reason why soaps made out of sandalwood oil are used all over the world for nourishing and softening the skin. It was the availability of sandal wood oil, which  became a reason to set up a soap factory.

IFIM COLLEGE BANGALORE

Page 18

 

A Study on Funds Management RENAMING: On 1st  October 1980, the Government Soap Factory was renamed as “Karnataka Soaps and Detergent Limited” by integrating sandal oil factories at Mysore, Shimoga and Bangalore. The Company was registered as a public limited company. Today Company  produces varieties of products in the toilet soaps, detergent, agarbathies and Cosmetics.

TRADEMARK OF KS & DL: 

THE “ S H A R A B H A ”   The carving on the cover is the Sharabha, the trademark of KS & DL. The Sharabha is a mythological creation from the “PURANAS PURANAS” ” which has a body of a lion and head of elephant, elephant, which embodies the combined virtues of wisdom and strength. It is adopted as an official emblem of KS& DL to symbolize the philosophy of the company. The Sharabha thus symbolized a power that removes imperfections and impurities. The Maharaja of Mysore adopted it as his official emblem and soon took its pride of place as the symbol of government soap factory of qualities that reflects a standard of excellence of Karnataka soaps & detergent Ltd.

SLOGAN: “NATURAL PRODUCTS WITH EXOTIC FRAGRANCES”  

KS &DL has a long tradition of maintaining the highest quality standard, right from the selection of raw materials to processing and and packing of the end product. The reasons why its  products are much in demand globally and are ar e exported regularly r egularly to UAE, Bahrain, Bahrai n, Saudi  –   Arabia, Kuwait, Qatar, South America. The entire toilet soaps of KS & DL are made from raw materials of vegetable origin and are totally free from animal fats. IFIM COLLEGE BANGALORE

Page 19

 

A Study on Funds Management VISION STATEMENT:   Keeping pace with globalization, global trends and the state‟s policy policy for technology in

every aspect of governance.    Ensuring global presence of Mysore Sandal products while leveraging its unique

strengths to take advantage of the current technology scenario by intelligent and selective diversification. arnataka‟s pre-eminent pre-eminent status as a proponent and provider of   Further, ensure K arnataka‟s technology services to the world, nation, other states public and private sectors.   Making all out efforts to achieve reasonable profits.   Most importantly to earn the invaluable foreign exchange, both to the state and to the

country.

MISSION STATEMENT:  

To serve the National economy.   To attain self-reliance.   To promote purity & quality products   To maintain the Brand loyalty of its customers.   To build upon the reputation of Mysore sandal soap based on pure sandal oil.  

OBJECTIVES OF KS & DL:   self –  reliance.  reliance.   To attain self –    To promote and uphold its image as symbol of traditional products   To promote purity and quality products and thus enhance age old  –   charm of

Sandalwood Oil.   To build upon the reputation of Mysore Sandal soap based on pure sandal oil.   To maintain the brand loyalty of its customer.   To supply the products mentioned above at most reasonable and competitive rate.

IFIM COLLEGE BANGALORE

Page 20

 

A Study on Funds Management POLICY OF KS&DL:   Seek purchase of goods and services from environment responsible suppliers.   Communicate its environment policy and best practices to all its employees‟

implications.   Set targets and monitor progress through internal and external audits.   Strive to design and develop products, which have friendly environmental impact

during manufacturing.   Reuse and recycle materials wherever possible and minimize energy consumption and

waste.

COMPETITORS OF KS&DL PRODUCT AND SERVICES: KS&DL is facing cut-throat competition in national and international market. Some of its main competitors are 1.  M/S. Hindustan Unilever Ltd 2.  M/S. Godrej Soaps Private Ltd 3.  M/S. Proctor& Gamble 4.  M/S. Wipro 5.  M/S. Nirma Soaps Private Ltd 6.  M/S. Jyothi Laboratories

DEPARTMENTS OF KS&DL: 1.  Human Resources and Administration 2.  Production Department  3.  Marketing Department 

IFIM COLLEGE BANGALORE

Page 21

 

A Study on Funds Management 4.  Finance\Accounts Department  5.  Research & Development Department  6.  Stores Department  7.  Welfare Department  8.  Maintenance Department  9.  Materials Department  10. Management Information System Department 

AN ISO-9001 AND ISO-14001 COMPANY: KS & DL with a tradition of excellence of over eight decades is committed to customer delight, through total quality management and continuous improvement

through

the involvement of all employees. employees. KS&DL has got got ISO 9002 certificate. The Company Company got itself upgraded to ISO-9001-2004, Quality Systems in i n the year 2004-05  The company is located in the heart of the Bangalore city. The management of the company took a decision to get the ISO-14001 and become model to other public sector for the techniques used and also to other Government units to spread the message of maintenance of environment. ISO-14001 and ISO-9001 will facilitate to improve the corporate brands in the global market and it will help the company to improve the profits, year after year on long-term basis. The environment management system adopted in the company through this motive as follows:   Conservation of energy   Conservation of Surrounding   Conservation of resources

IFIM COLLEGE BANGALORE

Page 22

 

A Study on Funds Management

PRESENT STATUS OF THE COMPANY The company is mainly dependent on southern market. The product availability in retail outlets particularly for Mysore sandal soap is almost comparable to any other similar industries products in the premium segment in the south. Whereas in other parts like Eastern and Northern markets presentations of KS &DL product is relatively poor, which depends on the company‟s distribution structure, stockiest and field personnel strength.  strength.   With increased trust on distribution, the company does not foresee any problem to achieve the projected sales through the redistribution package. Further the policy of Indian government also sees the public sector enterprises enter the industry in a large way there by making the products available to the consumers at reasonable  prices. Being located in the southern part of the India the government soap factory claims  preferential treatment for expansion programme in view of availability of exotic natural sandalwood oil. 1.  The company has entered into shampoo, dish wash, detergent bar & room refresher. 2.  The company is striving to develop new perfumes for soaps detergents, agarbathies & shampoo. The company wants to improve the existing products in terms of quality.

KS & DL AT GLANCE: Incorporated name

: Karnataka Soaps and Detergents Limited.  

Address

: Karnataka Soaps and Detergent Limited,

Bangalore –  Bangalore  –  Pune  Pune highway. Post Box No.5531, Rajajinagar, IFIM COLLEGE BANGALORE

Page 23

 

A Study on Funds Management Bangalore-560055. Ph: 080-23377691/22376922/23/24. 080-23377691/22376922/23/24. Email:  [email protected]  Email: [email protected]  www.mysoresandal.com   Website:  www.mysoresandal.com Website:

Year of establishment establish ment

: 1918

Constitution

: wholly owned by Govt of Karnataka

Undertaking.

Management

: Govt of Karnataka nominates/appoints

Board of Directors, Chairman & MD. Renamed

: 1980

Trademark

: The trademark is SHARABHA. It is the

Body of lion with the head of an elephant It means blending the intelligence of lion And the strength of an elephant. Production range

: Toilet soaps, bar soaps, detergent cakes

Powders, agarbathies, cosmetics, baby Products, sandalwood oil.

Process Known how

: The facility is a pioneer in the

Manufactures of various soaps and IFIM COLLEGE BANGALORE

Page 24

 

A Study on Funds Management Technology imported from Italy.

Capacity of the unit

: Licensed capacity is 26,000 metric tons

Of soaps & 10,000 metric tons of Detergents per annum.

PLANTS

: AT BANGALORE   Soap plant    Detergent plant    Fatty acid

AT MYSORE

Sandal wood oil  Sandal  Agarbathies Agarbathies

AT SHIMOGA

Duty paid go down 

IFIM COLLEGE BANGALORE

Page 25

 

A Study on Funds Management

PRODUCT PROFILE: KS&DL is the true inheritor of golden legacy of India. Continuing the tradition of excellence for over eight decades, using only the best East Indian grade Sandalwood oil & Sandalwood soaps in the world. The products produced at KS&DL are the Soaps, Detergents, Deter gents, Agarbathies and Sandalwood oil.

PRODUCT RANGE FROM THE HOUSE OF MYSORE SANDAL SOAP:   Mysore Sandal Soap

o

(75gm, 125gm & 150gm) As per weight it‟s it‟s available  available of Rs.10, 20, 25 Respectively.

  Mysore Sandal Special Soap

o

Available mostly in 75 grams pack and having sandalwood and almond oil as ingredients.

IFIM COLLEGE BANGALORE

Page 26

 

A Study on Funds Management   Mysore Sandal Baby Soap

o

This soap is mainly for babies made of ingredients suitable for babies soft and sensitive skin.

  Three-In-One Gift Pack –  Pack – (SJR) (SJR) 3Tabs

(150gm Each)

  Mysore Sandal Gold Soap

(125gm)

  Mysore Rose Soap

(100gm)

o

o

o

IFIM COLLEGE BANGALORE

Page 27

 

A Study on Funds Management

  Six-In-One Gift Pack- 6Tabs

o

  Mysore Sandal Gold sixes 6 Tabs

o

(150gm Each)

(125gm Each)

  Mysore Sandal Soap Bath Tablet Trio 3nos. (150gm Each)

o

IFIM COLLEGE BANGALORE

Page 28

 

A Study on Funds Management

DETERGENTS: KS&DL also manufactures high quality detergents applying the latest spray drying technology with well balanced formulation of active matters & other builders; they provide the ultimate washing powder. 1. Sensor Detergent Powder

(1kg/2kg)

2. Mysore Detergent Powder (1kg/500gms) 3. Mysore Detergent bar

(250gms)

4. Mysore Detergent Cake

(125gms/250gms)

AGARBATHIS: 1.  Mysore Sandal premium 2.  Mysore Rose 3.  Suprabath 4.  Parijata 5.  Venkateshwar 6.  Ayyappa 7.  Chandhana 8.  Mysore sandal 9.   Nagachampa 10.  Mysore Jasmine 11.  Bodhisattva 12.  Durga 13.  Alif Laila IFIM COLLEGE BANGALORE

Page 29

 

A Study on Funds Management

SANDALWOOD OIL: In 5ml, 10ml, 20ml, 100ml, 500ml, 2kg, 5kg, 20kg and 25kg packing.

POWDERS:

1.  Mysore Sandal Talk: Cooling & Healing, Fragrant freshness, Net. Wt 20gm, 60gm, 300gm and 1kg. 2.  Mysore Sandal Baby Powder: Tender loving care for baby…& Mummy. Net wt 100 400gms.

IFIM COLLEGE BANGALORE

Page 30

 

A Study on Funds Management

EXPORTS FROM KS&DL:  1.  Middle East Countries. 2.  Asian Countries. 3.  American Countries. 4.  European Countries. 5.  Australia and New Zealand. 6.  African countries.

COMPETITORS INFORMATION AND THEIR MARKET SHARE Hindustan Univer Limited

-

70%

Godrej

-

4%

Procter & Gamble

-

10%

KS & DL

-

11%

Others

IFIM COLLEGE BANGALORE

-

5%

Page 31

 

A Study on Funds Management

INFRASTRUCTURAL FACILITIES 1.  Canteen facility

 

2. library 3.  Car parking 4.  Waiting room

ACHIEVEMENTS AND AWARDS OF KARNATAKA SOAPS AND DETERGENTS LIMITED:   Government of Karnataka

Dept of Industries and commerce State Export Promotion Advisory Board. “EXPORT AWARD” 1974-75 1974-75   Detergent plant

M/s Chemical Bombay have given 1st price for the year 1980-1981  

Geographical Indication GI-2005

  ISO 9001-2000 9001-2000 in the year year 1999   ISO 14001-2004 in the year 2000

IFIM COLLEGE BANGALORE

Page 32

 

A Study on Funds Management

WORK FLOW MODEL:

SILOS (Silos are closed chambers) Soaps Noodles Container Mixer Simplex Plodder It becomes NOODLES Milling It becomes soap ribbons Duplex plodder cutting Machine cakes are led To stamping machine Wrapping Machine Led through conveyor belt

IFIM COLLEGE BANGALORE

Page 33

 

A Study on Funds Management

FUTURE GROWTH AND PROSPECTUS:   Introduction of anti-bacteria, herbal transparent soap, made out of 33 essential oil

 based Timely introduction and implementation of of market driven decisions.   Improvement in existing products Mysore Sandal classic improved

moisturizers

& skin conditions.   Introduction of sandalwood powder in 50gms, 100gms to meet the growing demand

for religious purpose.   Introduction of new higher powered detergent powder for institutional sales in bulk

 packaging.   To attain market leadership.   Introduction of new trade schemes to increase sales.   Aggressive advertisement and publicity as part of sales promotion.   Reduction in distribution expenses and cost reduction in all areas.

BANKERS: “KARNATAKA SOAPS AND DETERGENTS LIMITED”  being a huge

organization, should possess better banking facilitates to meet the timely requirements of capital of the company & to fulfill the financial obligations of supplies, customers & other  personnel having relationship with the company. company. The Bankers of the company are:   STATE BANK OF MYSORE   CANARA BANK   VIJAYA BANK   SYNDICATE BANK

IFIM COLLEGE BANGALORE

Page 34

 

A Study on Funds Management ORGANISATION CHART OF FINANCE FUNCTION: FUNCTION: The below chart shows the organization structure of KS&DL. It shows the hierarchy in which the authority and responsibility flows at KS&DL. A typical organization chart of finance function of a company is given

Managing Director

General Manager

AGM 

Junior Officer

Manager

Manager

AGM 

Junior Officer 

Junior Officer

Sr Assistant

Sr Assistant

Sr Assistant

Jr Assistant

Jr Assistant

Jr Assistant

LEVELS OF ORGANISATION: The organization of KS&DL consists of 4 levels, they are ‟s and Managing Managing Director.   TOP LEVEL consisting of Board of Director ‟s   SECOND LEVEL consisting of Directors of Finance and Special officers   THIRD LEVEL consisting of senior managers, deputy managers and officers.   FOURTH LEVEL consisting of clerks, Assistants and Attendees.

IFIM COLLEGE BANGALORE

Page 35

 

A Study on Funds Management STAFF AND ITS APPLICATIONS KS & DL has several advantages relating to staff. KS & DL has a dedicated work force of 712 professionals, which share the vision of the KS & DL. Training and development is a continuous process at KS & DL, which has been intensified to tune the staff to the organizational environment requirement. It also hires the qualified technicians and professionals to carry out the project at economical rate.

SWOT ANALYSIS: 1.  STRENGTHS: STRENGTHS:     The Mysore sandal soap contains pure sandal and almond oil.   Certified by ISO.   World‟s largest production of sandalwood oil.  oil.    Brand name from decades in soap market.   It has very good dealership network in south which ensures that the products reach

every customer. stabilit y.   Diversified product range helps the company to maintain stability.

2.  WEAKNESSESS:   Distribution network is weak in north and east.   Absence of television advertisement.   High oriented cost due to excessive labor force.    Neglecting freshness aspect.   Low turnover resulting in low profit.

IFIM COLLEGE BANGALORE

Page 36

 

A Study on Funds Management 3.  OPPORTUNITIES:   Traditional benefits that sandal is good for skin.   Skin care is just gaining importance among consumers   As a soap attribute.   Government support and large production capacity.   Advantages of being in the industry for a long time.   Existence of vast market and huge demand.

4.  THREATS:   There are other competitors such as Rexona, Moti, Santoor etc  

There is a need for renovation of plant and machinery.

  Government policy may reduce growth potential.   Other sandal soaps in the market.   Entry of new multinational in soap business.

IFIM COLLEGE BANGALORE

Page 37

 

A Study on Funds Management

DATA ANALYSIS AND INTERPRETATION

MEANING OF ANALYSIS: Analysis is the process by which, the whole body of gathered data, facts, figures and ideas, is converted into meaningful and usable information.

MEANING OF INTERPRETATION: Interpretation refers to the task of drawing inferences from the collected facts after analytical and/or experimental study. In short, it is a search for broader meaning of research findings.

MEANING OF ANALYSIS AND INTERPRETATION: INTERPRETATION: In the words of Kennedy and Memullar, "The analysis and interpretation of financial statements are an attempt to determine the significance and meaning of the financial statements data so, that a forecast may be made of the prospects for future earnings"

1.  COMPARATIVE FUNDFLOW STATEMENTS: In comparative fund flow statements two or more balance sheets and or the income statement of a firm are presented simultaneously in columnar form. The financial data for two or

more

years

are

placed

and

presented

in adjacent columns and thereby the financial data is provided a times perspective in order to facilitate periodic comparison. In comparative fund flow statements, the balance sheet and the income statements for a number of years are presented in condensed form for year comparison and to exhibit the magnitude and direction of changes.

The comparative fund flow statements may be prepared to show;   The absolute amount of different items in monetary forms. IFIM COLLEGE BANGALORE

Page 38

 

A Study on Funds Management   The amount of periodic changes in monetary terms.   The percentage of periodic changes to reveal the proportionate changes.   The comparative fund flow statement can be prepared for both balance sheet and the

income statement.   The analysts are able to draw useful conclusions when figures are given in a

comparative position.   The figures of sales for a quarter or half year or one year may tell only the present

 position of sales efforts.

COMPARATIVE BALANCE SHEET: The comparative balance sheet analysis is the study of the trend of the same items, group of items and computed items in two or more balance sheets of the same business enterprise on different dates. The changes in periodic balance sheet items reflect the conduct of a business. The changes can be observed by comparison of the balance sheet at the  beginning of the year and at the end of the year. These changes will help in forming an opinion about the progress of an enterprise. The comparative balance sheet has two columns for the data of columns for the data of original balance sheets. A third column is used to show increase in figures. The fourth and last column may be added for showing percentages of increases or decreases. This statement prepared on two or more different dates can be used for comparing sources of funds under that secured loans, unsecured loans and reserves reser ves & surplus. These statements also used to compare fixed and current assets, liabilities & provision and to find out increase/decrease in these items.

  Below are the comparative analysis of the balance sheet for the past 5 years:

On the bases of those we analyzed the performance of the company and changes in that.

IFIM COLLEGE BANGALORE

Page 39

 

A Study on Funds Management

COMPARITIVE BALANCE SHEET FOR THE YEAR 2008 & 2009 Particulars

1.Sources Of Funds  a)  Share capital  b)  Reserve & surplus c)  Secured loans d)  Unsecured loans

As on 31-03-08

As on 31-03-09

Absolute changes

% of changes

318221000

318221000

0

0

-

-

0

0

39448184

100

39448184 214405674

199911435

(14494239)

(6.76)

253853858

199911435

(5394239)

(21.24)

348447394

302808002

(45639320)

(13.96)

635943332

60360155

(32341177)

(50.86)

100

100

0

0

-

-

-

-

4. current assets 

760760496

700225559

(60534937)

(7.95)

Total Less: current liabilities & provision  i)  Liabilities

760760496

700225559

(60534937)

(7.95)

207051365

170706357

(36345008)

(17.55)

88833899

98239572

94.5673

10.58

Total

295885264

268945929

(26939335)

(9.10)

 profit & loss a/c

25572563

5326504

(20246059)

(79.17)

Total

43605194

26492550

(17112644)

(39.24)

Total APPLICATION OF FUNDS

1.Fixed assets  a)  Gross block  b)   Net block 2. Investment  3.Deferred tax assets 

Ii) provision

IFIM COLLEGE BANGALORE

Page 40

 

A Study on Funds Management

INTERPRETATION:

  There

o

is decrease in fixed assets in 2008 to 2009 this shows the company is not

contributing amount for fixed assets out of profit and the company‟s liquidity position is not good when compare to 2008 as the company is concentrating on earning profit. The decreased %age of fixed assets is 13.96 and 50.86 in gross and net block respectively.

  In the sources of funds secured and unsecured loans l oans are decreasing in the year 2009 as

o

compared to 2008 which is a good sign for the company. Secured loans are decreasing to zero and unsecured loans are ar e decreased by 6.76%. Share capital of the firm remains constant. There are no reserve and surplus with the firm in both the years‟ years‟ i.e.  i.e. 20068& 2009.

  There is a decrease in

o

the current assets from 2008 to 2009 with a percent of 7.95

which shows a loss to the company.

  As seen in current liabilities companies position is good as they are decreasing in the

o

year 2009 as compared to 2008 with a percentage of changes 17.55, which is again good for the company.

  In

o

the profit and loss account, in 2008 company had Rs.25572563 of profit which

 become Rs.5326504 in the year 2009 i.e. 79.17% of change. Overall company‟s company‟s performance  performance is satisfactory but company needs to give attention to some of its major areas like current assets and fixed assets as there is a decrease in current and fixed assets with a percentage change of 13.96 % and 50.86% respectively. There is a decrease in secured and unsecured loans with a percentage change of 100% and 6.76% respectively which is on the benefit side of the company.

IFIM COLLEGE BANGALORE

Page 41

 

A Study on Funds Management COMPARITIVE BALANCE SHEET FOR THE YEAR 2009 & 2010

Particulars

1.Sources Of Funds  e)  Share capital

As on 31-03-09

As on 31-03-10

Absolute changes

% of changes

318221000

318221000

-

-

-

15070293

15070293

100

16629120

16629120

0

199911435

129995436

(6691599) (6691599)

(34.97)

199911435

479915849

53286879

(26.66)

302808002

293406486

(10401516)

(3.43)

60360155

58930969

89722330

(3.70)

100

100

-

-

-

-

-

-

4. current assets 

700225559

816621470

116395911

16.62

Total Less: current

700225559

816621470

116395911

16.62

170706357

280039861

109335504

17.42

98239572

128527890

30288318

31

Total

268945929

408567751

139621822

52

MIS expenses

21166046

12931061

(8234985)

(422)

Total

26492550

479915849

(5326504)

(100)

f)  Reserve & surplus g)  Secured loans h)  Unsecured loans Total APPLICATION OF FUNDS

1.Fixed assets  c)  Gross block d)   Net block 2. Investment  3.Deferred tax assets 

liabilities & provision   j)  Liabilities

Ii) provision

IFIM COLLEGE BANGALORE

Page 42

 

A Study on Funds Management INTERPRETATION:

  From the above table again is a decrease in the fixed assets from 2009 to 2010 this

o

shows the company is not contributing amount for fixed assets out of profit. The decreased %age of fixed assets is 3.43 and 3.70 in gross and net block respectively.

  In the sources of funds secured and unsecured loans are increasing in the year 2010 as

o

compared to 2009 which is a not a good sign for the company. Secured loans are increased from zero to Rs.16629120 and unsecured loans are increased by 34.97%. Reserve and surplus are also increased by 100% from 2009 to 2010. Share capital of the firm remains constant.

  There is an increase in the current assets from 2009 to 2010 with a percent of 16.62

o

which shows that the company‟s company‟s liquidation  liquidation position is becoming good.

  As

o

seen in current liabilities company‟s company‟s   position is not much better as they are

increasing in the year 2010 as compared to 2009 with a percentage of changes 17.42, which is again not good for the company. Overall the company‟s performance is satisfactory as com pared to the performance per formance of 2009 as there is a decrease in unsecured loans but increase in secured loans with a  percentage change of (34.97)% and 0% respectively. There is an increase in the current assets but decrease in fixed assets with a percentage change of 16.62% and (3.43) which is good on the side of current assets but not good in reference of fixed assets.

IFIM COLLEGE BANGALORE

Page 43

 

A Study on Funds Management COMPARITIVE BALANCE SHEET FOR THE YEAR 2010- 2011 

Particulars

As on 31-03-10

As on 31-03-11

318221000

318221000

0

0

 j)  Reserve & surplus k)  Secured loans

15070293

136826041

121755748

807.91

16629120

10365536

(6263584)

(37.77)

l)  Unsecured loans

129995436

89995436

(40000000)

(30.66)

479915849

555408013

75492164

15.73

293406486

396106154

3699668

1.26

58930969

59055325

124356

0.21

100

30000100

30000000

30000000

-

32146548

32146548

100

4. current assets 

816621470

881689555

65068085

7.96

Total Less: current

816621470

881689555

65068085

7.96

280039861

308752365

28712504

10.25

128527890

166770640

38242750

Total

408567751

475523005

66955254

16.38

MIS expenses

12931061

28039490

15108429

116.83

Total

479915849

555408013

75492164

15.73

1.Sources Of Funds  i)  Share capital

Total

Absolute changes

% of changes

APPLICATION OF FUNDS

1.Fixed assets  e)  Gross block f)   Net block 2. Investment  3.Deferred tax assets 

liabilities & provision  k)  Liabilities

Ii) provision

IFIM COLLEGE BANGALORE

29.75

Page 44

 

A Study on Funds Management INTERPRETATION: l oans are decreasing in the year 2011 as   In the sources of funds secured and unsecured loans

o

compared to 2010 which is a good sign for the company. Secured loans are decreasing by 37.77 and unsecured loans are decreased by 30.66%. Share capital of the firm remains constant. Reserve and surplus are increased with an absolute change of Rs.121755748 the firm in the year 2011.

  The

o

above table is showing an increase in the fixed assets from 2010 to 2011 this

shows the company is contributing amount for fixed assets out of profit. The increased %age of fixed assets is 1.26 and 0.21 in gross and net block respectively.

  From the above table, in the year 2011 the position of current assets is 88.16 which

o

was 81.66 in 2008 and current liabilities is 30.87 and 28.00 in the year 2011 and 2010 respectively. All this is showing good results for the firm in accordance of current assets but not good in current liabilities position.

  In 2009 company‟s company‟s   MIS expenses are increasing with a absolute changes of Rs.

o

15108429 and percent change of 116.83, it means company should control its undesired expenses. Overall the performance of KS&DL is pretty satisfactory, when compare to the year 2010.It indicate that, in both the year 2010-2011 the company has a good liquidity  position as there‟s there‟s an  an increase in the fixed and current assets with a percentage change of 1.26% & 7.96% .The firm position also increasing in the side of sources of funds as there is a decrease in the secured loans with a change of (37.77)% and also decrease in the unsecured loans with (30.66)%.

IFIM COLLEGE BANGALORE

Page 45

 

A Study on Funds Management COMPARITIVE BALANCE SHEET FOR THE YEAR 2011- 2012

Particular

1.Sources Of Funds  m)  Share capital

As on 31-03-11

As on 31-03-12

Absolute changes

% of changes

318221000

318221000

0

0

n)  Reserve & surplus o)  Secured loans

136826041

267719129

130893088

95.66

10365536

107204608

96839072

934.24

 p)  Unsecured loans

89995436

83506504

(6488932)

(7.21)

555408013

778420599

223012586

40.15

396106154

309623620

(13517466)

(4.56)

59055325

69775760

10720435

18.15

2. Investment 

30000100

100

(30000000)

(99.99)

3.Deferred tax assets 

32146548

52504866

20358318

63.32

4. current assets 

881689555

1091372587

179683032

19.70

Total Less: current

881689555

1091372587

179683032

19.70

308752365

246650794

(62101571)

(20.11)

166770640

204956560

38185920

22.89

Total

475523005

451607354

(23915651)

(5.02)

 profit & loss a/c

28039490

16374640

(11664850)

(41.60)

Total

555408013

778420599

223012586

40.15

Total APPLICATION OF FUNDS

1.Fixed assets  g)  Gross block h)   Net block

liabilities & provision  l)  Liabilities

Ii) provision

IFIM COLLEGE BANGALORE

Page 46

 

A Study on Funds Management INTERPRETATION: From the table of comparative balance sheet of year 2011-2012

  In the sources of funds secured loans are increasing highly and unsecured loans are

o

decreasing in the year 2012 as compared to 2011 which is a not good for the company. Secured loans are increased by 934.247 and unsecured loans are decreased by (7.21). Reserve and surplus are increased with an absolute change of Rs.130893088 of the firm in year 2010. Share capital of the firm remains constant.

  The

o

above table is showing a decrease in the fixed assets from 2009 to 2010 this

shows the company is not contributing enough amounts for fixed assets out of profit. The decreased %age of fixed assets is 4.56.

  From the above table, in the year 2012 the position of current assets is 109.13 which

o

was 88.16 in 2011 i.e. there‟s there‟s a  a increase and current liabilities is 30.87 and 24.66 in the year 2011 and 2012 respectively. All this is showing good results for the firm in both the cases, current assets and current liabilities. Overall the performance of KS&DL is satisfactory but when compared to 2011 it‟s it‟s not  not good enough as there is an increase in secured loans but decrease in unsecured loans with a percentage change of 934.24% and (7.21) % respectively. company‟s liquidity  position is also not satisfactory when compared to t o the year 2011 as there is a decrease in fixed assets gross block with a change of 4.56% but increase in current assets with a  percentage of 19.70%.company`s current liabilities are also decreasing with a absolute changes of Rs.62101571 & percentage change of (20.11) % which is a good sign for the company.

IFIM COLLEGE BANGALORE

Page 47

 

A Study on Funds Management COMPARITIVE BALANCE SHEET FOR THE YEAR 2012- 2013

Particular

1.Sources Of Funds  q)  Share capital

As on 31-03-12

As on 31-03-13

Absolute changes

% of changes

318221000

318221000

0

0

r)  Reserve & surplus s)  Secured loans

267719129

343479146

75760017

28.30

107204608

800922400

(27112208) (27112208)

(25.29)

t)  Unsecured loans

83506504

83506504

0

0

778420599

163989804

(27112208) (27112208)

(14.22)

309623620

327262896

1739276

5.69

69775760

241431939

1584079

0.66

100

85830957

16055197

23.00

52504866

100

0

0

4. current assets 

1091372587

1239560593

148188006

13.58

Total Less: current

1091372587

1239560593

148188006

13.58

246650794

292361773

45710979

18.53

204956560

269166068

64209508

13.33

Total

451607354

561527841

109920487

24.34

 profit & loss a/c

16374640

-

-

-

Total

778420599

-

16374640

100

Total APPLICATION OF FUNDS

1.Fixed assets  i)  Gross block  j)   Net block 2. Investment  3.Deferred tax assets 

liabilities & provision  m)  Liabilities

Ii) provision

IFIM COLLEGE BANGALORE

Page 48

 

A Study on Funds Management INTERPRETATION: From the above table of 2012-2013

  In the sources of funds secured loans are decreasing and unsecured loans are also

o

decreasing in the year 2013 as compared to 2012 which is good for the company. Secured loans are decreased by 25.29 and unsecured loans are decreased to zero (0). Reserve and surplus are increased increas ed with an absolute change of Rs.75760017 in the year 2013. Share capital of the firm remains constant.

  The

o

above table is showing an increase in the fixed assets from 2012 to 2013 this

shows the company is contributing enough amount for fixed assets out of profit. The increased %age of fixed assets is 5.69.

  In the year 2013 the current assets are increasing with a percentage change of 13.58

o

and current liabilities are also increasing with a absolute change of Rs. 45710979 and a percentage change of 18-53. The overall performance of the firm is comparatively good in the last year as it has covered all of its unsecured loans and there is a decrease in the percentage of secured loans i.e. 25.29%. Company is also contributing a good amount toward its assets as  both of current and fixed assets are increased in the year 2013. So, the company‟s company‟s   liquidity position is good and the performance of the organization is also satisfactory.

IFIM COLLEGE BANGALORE

Page 49

 

A Study on Funds Management TABLE NO: 1 TABLE SHOWING THE CAPITAL FUNDS OF KARNATAKA SOAPS &

DETERGENTS LTD

DURING THE YEAR 2008 TO 2012

YEARS

CURRENT

Current

Current

ASSETS

liabilities

Ratio

2008-2009

70,02,25,559

26,89,45,929

2.6

2009-2010

81,66,21,470

40,85,67,751

1.9

2010-2011

88,16,89,555

47,55,23,005

1.8

2011-2012 H

1,09,13,72,587 1,09,13,72,587

45,16,07,354

2.4

2012-2013

1,23,95,60,593 1,23,95,60,593

56,15,27,841

2.2

Analysis:-

From the above table, it can be seen that, there is an increasing trend in the capital fund i.e., Rs 3332.91 lakhs in the year

2008 to Rs

7097.41 lakhs in the year 2012

IFIM COLLEGE BANGALORE

Page 50

 

A Study on Funds Management GRAPH NO: 1 GRAPH

SHOWING THE CAPITAL

FUND OF

KARNATAKA SOAPS AND AND DETERGENTS DETERGENTS DURING

THE

LTD

YEAR 2008 TO 2012

9 300 250 250 200 200 150 150 100 100 50 50 0 0

ANALYSIS:

A Relatively high current ratio is an indication that the firm is liquid and has the ability to pay its current obligations in time as and when they become due. On the other hand, a relatively low current ratio represents that the liquidity position of the firm is not good and the firm shall not be able to pay its current liabilities in time without facing difficulties. The ratio equal or near to the rule of thumb is 2:1, i.e. current assets double the current liabilities is considered satisfactory.

IFIM COLLEGE BANGALORE

Page 51

 

A Study on Funds Management INTERPRETATION: INTERPRETATION:

It is inferred that current ratio was up to the standard in the year 2008-09, 2010-11, 201112 due to decrease in inventory and debtors. For the two years it is showing a decreasing trend due to drastic increase in current liabilities.  

QUICK RATIO: It is the ratio that expresses the relationship between quick or liquid assets and quick or liquid liabilities. Any asset is called liquid if it can be converted to cash without loss in value. Cash is the most liquid assets. They include all current assets except inventories or stocks and prepaid expenses since these are not easily available for the payment of current liabilities. It shows a firm's ability to meet current liabilities with its most liquid assets. 1:1 ratio is considered ideal ratio for a concern because it is wise to keep the liquid assets at least equal to the liquid liabilities at all times. Current liabilities include all those liabilities, which should necessarily be paid within a short period of one year. The quick ratio formula is as follows;

QUICK RATIO= QUICK OR LIQUID ASSETS / CURRENT LIABILITIES

Table showing the quick ratio for the last 5 years (in.Rs) YEARS

QUICK ASSETS

IFIM COLLEGE BANGALORE

QUICK LIABILITIES

QUICK RATIO

Page 52

 

A Study on Funds Management 26,89,45,929

1.334

46,57,65,747

40,85,67,751

1.140

2010-2011

58,56,76,733

47,55,23,005

1.232

2011-2012

68,39,20,100

45,16,07,354

1.514

2012-2013

72,19,54,754

56,15,27,841

1.285

2008-2009

35,90,11,335

2009-2010

GRAPH SHOWING QUICK RATIO 1.6 1.4

1.5 1.33 1.2

1.2

1.2

1.11

1 0.8 0.6 0.4 0.2 0 2008-09

2009-10

2010-11

2011-12

2012-13

quick ratio

ANALYSIS:  A high acid test ratio is an indication that the firm is liquid and has the ability to meet its current or liquid liabilities in time and on the other hand a low quick ratio represents that the firm‟s liquidity position is not good. As a rule of thumb or a s a convention quick ratio of 1:1 is considered satisfactory.

INTERPRETATION: It is inferred that the company has the ability to meet its current liquid liabilities as and when they become due as it has pretty good quick ratio above the normal standard st andard of 1:1.

IFIM COLLEGE BANGALORE

Page 53

 

A Study on Funds Management

ABSOLUTE LIQUIDITY RATIO OR CASH RATIO: Liquidity of a firm can be viewed from an extremely conservative point of view and the short term liquidity of a company may be measured through cash ratio. Cash ratio or absolute liquid ratio is the ratio which expresses the relationship  between liquid li quid assets asse ts and quick liabilities. Absolute liquid ratio is the most rigorous ratio to measure the liquidity of the firm. Absolute liquid assets include cash in hand and at bank and marketable securities or temporary investments.

The absolute liquid ratio formula is as follows;

CASH RATIO= ABSOLUTE LIQUID ASSETS / CURRENT LIABILITIES

Table showing the cash ratio for the last 5 years YEAR

2008-2009

ABSOLUTE

CURRENT

LIQUID ASSETS

LIABILITIES

19,57,15,651

26,89,45,929

IFIM COLLEGE BANGALORE

RATIO

0.727

Page 54

 

A Study on Funds Management

2009-2010

31,23,45,581

2010-2011

33,43,85,423

2011-2012

25,51,32,909

2012-2013

28,53,59,727

40,85,67,751

0.765

47,55,23,005

0.703

45,16,07,354

0.565

56,15,27,841

0.508

GRAPH SHOWING CASH RATIO

0.9 0.8

0.727

0.765 0.703

0.7 0.565

0.6

0.508 0.5 0.4 0.3 0.2 0.1 0 2008-09

2009-10

2010-11 cash ratio

2011-12

2012-13

ANALYSIS: The acceptable norm for this ratio is 50% or 0.5:1 or 1:2 i.e. Re.1 worth absolute liquid assets are considered adequate to pay Rs.2 worth current liabilities in time as all the creditors are not expected to demand cash at the same time and then cash may also be realized form debtors and investors.

INTERPRETATION: IFIM COLLEGE BANGALORE

Page 55

 

A Study on Funds Management It is inferred that there was an increasing trend in first four years that is from 20062009. But in the previous year it has decreased to 0.508 which was a result of decrease in cash and bank balance bank  balance accompanied with increase in creditors where company won‟t be able to meet its short term financial obligations. So it has to take steps to decrease creditors and also speed up its collection from debtors to improve its cash reserves.

STOCK OR INVENTORY TURNOVER RATIO:  The inventory turnover ratio also known as stock turnover ratio indicates whether inventory has been efficiently used or not. The purpose is to see whether only the required minimum funds have been locked up in inventory. Inventory turnover during the period and evaluates the efficiency with which a firm is able to manage its inventory. It denotes the speed at which the inventory will be converted into sales, thereby contributing for the profits of the concern. Here cost of goods include (opening stock + purchases + manufacturing expenses closing stock or sales - Gross profit) And average stock includes opening stock + closing stock 2 Inventory turnover ratio can be calculated as fallows;

INVENTORY TURNOVER RATIO= SALES / AVERAGE STOCK

Table showing the Stock Turnover Ratio for the last 5 years YEARS

SALES

AVERAGE

RATIO

STOCK

2008-2009

98,81,11,423

IFIM COLLEGE BANGALORE

39,24,94,368

2.518

Page 56

 

A Study on Funds Management

2009-2010

104,43,74,470

2010-2011

1,28,64,62,008

2011-2012

1,53,37,03,531

2012-2013

16,47,77,47,37

34,60,34,973

3.018

32,34,34,273

3.978

35,17,32,655

4.360

46,25,29,163

3.562

GRAPH SHOWING INVENTORY TURNOVER RATIO 5 4.36

4.5 3.978 4

3.562

3.5

3.018

3 2.5

2.518

2 1.5 1 0.5 0 2008-09

2009-10

Inventory turnover ratio 2010-11

2011-12

2012-13

ANALYSIS: Inventory Turnover Ratio measures the velocity of conversion of stock into sales. A high inventory turnover/stock velocity indicates efficient management of inventory because more frequently the stocks are sold; the lesser amount of money is required to finance the inventory. A low inventory turnover indicates over-investment in inventory, dull business, poor quality of goods, stock accumulations, accumulations of obsolete and slow moving goods and

IFIM COLLEGE BANGALORE

Page 57

 

A Study on Funds Management low profits as compared to total investments. There are no „rules of thumb‟ or „standard inventory turnover turnover ratio‟ for interpreting the inventory inventor y turnover ratio.  ratio. 

INTERPRETATION: It is inferred that the inventory turnover ratio has been showing an increasing trend from past four years but there was a slight decrease in the previous year, which indicates that there is an efficient management of inventory and stocks are sold out within short span of time which reduces the warehouse cost and avoids the chances of obsolescence of stocks.

DEBTORS OR RECEIVABLE TURNOVER RATIO: Debtor's turnover ratio indicates the velocity of data collection of firm. In simple words, it indicated the number of times average debtors are turned over during a year. This ratio indicates the speed at which the debtors are converted into cash. Usually a high ratio will be referred to high efficiency e fficiency in debt collection and a low rat ratio io for lower efficiency. High ratios indicates that debts are collected in short time period (i.e., there is little time gap  between sales and payments. The ratio is obtained by dividing the net credit sales by average debtors outstanding during that year. Debtors' turnover ratio can be calculated as follows: DEBTORS TURNOVER RATIO= NET CREDIT SALES / AVERAGE DEBTORS

Table showing the Debtors Turnover Ratio for the last 5 years(in.Rs) YEARS

NET CREDIT

AVERAGE

SALES

DEBTORS

2008-2009

98,81,11,423

7,45,79,779

13.249

2009-2010

1,04,43,74,470 1,04,43,74,470

7,48,55,399

13.95

2010-2011

1,28,64,62,008 1,28,64,62,008

11,36,10,155 11,36,10,155

11.323

IFIM COLLEGE BANGALORE

RATIO

Page 58

 

A Study on Funds Management

2011-2012

1,53,37,03,531 1,53,37,03,531

15,49,38,144 15,49,38,144

9.899

2012-2013

16,47,77,47,37 16,47,77,47,37

16,80,85,689 16,80,85,689

9.803

GRAPH SHOWING DEBTORS TURNOVER RATIO 16 13.95 14

13.249

12

11.323 9.899

10

9.803

8 6 4 2 0 2008-09

Debtors turnover ratio 2009-10 2010-11

2011-12

2012-13

ANALYSIS: The debtors‟ turnover ratio indicates the number of times the debtors are turned over a year. Generally, the higher the debtors‟ turnover the more efficient is the management of debtors similarly; low debtors turnover implies inefficient management of debtors or sales.  

INTERPRETATION: IFIM COLLEGE BANGALORE

Page 59

 

A Study on Funds Management From the above table, it is seen that KS&DL has increased by almost 50% for the two years to 13.249 and 13.952 respectively. But in the year 2009-2010, 2010-2011 & 2011-12 it has gradually decreased to t o 11.323, 9.899 & 9.803. It is inferred that it shows a decreasing trend from past three years which is not a good sign for a company. So it has to take steps to manage debtors through prompt collection so that it will be able to sell the goods on credit and there by gaining sales and profit.  

CREDITORS OR ACCOUNT RECIEVABLE TURNOVER RATIO: Debtor's turnover ratio indicates the velocity of data collection of firm. In simple words, it indicated the number of times average debtors are turned over during a year. This ratio indicates the credit facility enjoyed by a firm. It is calculated by taking into account the net purchase and average creditors. Creditors' turnover ratio can be calculated as follows:

CREDITORS TURNOVER RATIO= NET PURCHASE / AVERAGE CREDITORS

Table showing the Creditors Turnover Ratio for the last 5 years (in.Rs) YEARS

NET PURCHASE

AVERAGE

RATIO

CREDITORS

2008-2009

36,72,38,387

4,53,54,445

8.09

2009-2010

50,70,94,587

4,75,84,558

10.65

2010-2011

54,14,33,115

7,01,84,312

07.71

2011-2012

80,19,28,342

6,97,71,274

11.49

IFIM COLLEGE BANGALORE

Page 60

 

A Study on Funds Management

2012-2013

77,53,83,439

6,44,60,999

12.02

GRAPH SHOWING CREDITORS TURNOVER RATIO 14 11.49

12

12.02

10.65 10 8.09

7.71

8 6 4 2 0 2008-09

Creditors turnover ratio 2009-10 2010-11

2011-12

2012-13

ANALYSIS: Generally higher the creditor‟s creditor‟s velocity  velocity better it is or otherwise lower the creditors velocity less favorable are results.

IFIM COLLEGE BANGALORE

Page 61

 

A Study on Funds Management

INTERPRETATION From the above table it has seen that KS&DL exhibits high creditors turnover ratio from 2008-09 where it has decreased gradually in the year 2009-10 and increased increase d in 2010-11,201112 to 11.49 and 12.02 respectively.

WORKING CAPITAL TURNOVER RATIO: Working capital turnover ratio indicates the velocity of the utilization of working capital. This ratio indicates the number of times the working capital is turned over in the course of a year. This measures the efficiency with which the working capital is being used  by the firm. A higher ratio indicates efficient utilization of working capital and a low ratio indicates otherwise. Working capital turnover ratio can be calculated as follows:

WORKING CAPITAL TURNOVER RATIO= SALES / NET WORKING CAPITAL

Table showing the Working Capital Turnover Ratio YEARS

SALES

NET

RATIO

WORKING CAPITAL

2008-2009

98,81,11,423

43,12,79,630

2.291

2009-2010

1,04,43,74,470 1,04,43,74,470

40,80,53,719

2.559

IFIM COLLEGE BANGALORE

Page 62

 

A Study on Funds Management

2010-2011

1,28,64,62,008 1,28,64,62,008

40,61,66,550

3.167

2011-2012

1,53,37,03,531 1,53,37,03,531

63,97,65,233

2.397

2012-2013

16,47,77,47,37 16,47,77,47,37

67,80,32,752

2.430

GRAPH SHOWING WORKING CAPITAL TURNOVER RATIO 3.5 3.167 3 2.559 2.5

2.397

2.291

2.43

2 1.5 1 0.5

0

2008-09

IFIM COLLEGE BANGALORE

2009-10

2010-11

2011-12

2012-13

Page 63

 

A Study on Funds Management

ANALYSIS: A higher working capital ratio indicates efficient utilization of working capital and low ratio indicates otherwise. From the above table, KS&DL working capital turnover ratio in the year 2008-2009 was 2.291 and for next two years it has shown an increasing trend. It increased in the year 2009-2010 to 3.167 and decreased in the year 2010-2011 to 2.397 & 2011-12 to 2.430.

INTERPRETATION:  It is inferred that working capital turnover ratio shows an increasing trend, but it has decreased in the year 2009-2010 & 2010-11 which shows there is inefficient management of working capital in the previous year. The company should take steps to invest in current assets asse ts and other short term investment opportunities.  

FINDINGS, SUGGESTION AND CONCLUSION  INTRODUCTION: The final stage in the statistical enquiry relates to the interpretation of the data i.e., drawing logical and meaningful conclusion from the condensed data. Interpretation is concerned with establishing relationships within the collected data partially over lapping analysis. Interpretation is essential for the simple reason that the usefulness of research findings lie in  proper order. It is through interpretation that the research can well understand the abstract  principle, the work beneath its findings it leads to the establishment esta blishment of explanatory concepts that can serve as a guide for future research studies. Based upon the above consideration this chapter gives a summary of data analyzed in the previous chapter and on the basis of findings appropriate suggestion are given.

IFIM COLLEGE BANGALORE

Page 64

 

A Study on Funds Management FINDINGS: On the analysis of the financial statements of the Karnataka soaps and detergents Ltd for the year 2009-2013, the following findings are recorded. 1.  In capital fund, share capital is constant from the past 5 years but there is fluctuation in reserves and surplus. Hence the company is mainly mainl y dependent on share capital. 2.  The fixed assets are increasing increas ing respectively throughout the 5 years. 3.  The current ratio of the board is good. It shows the good liquidity position about the company. 4.  The company has properly allocated its income over the expenditure. Hence there is a surplus over the years. 5.  The debt equity ratio indicates the proportionate claims of owners and the outsiders against the company assets. It is found that this ratio is an cushion available to outsiders, to think before investing, but unfavorable from the point of view of the company. 6.  It is found that the company prefers to invest in loans and advances. 7.  It is found that the company mainly focusing on secured loans to raise the capital. capit al.

SUGGESTIONS/RECOMMONDATIONS:

1.  The liquidity position is showing relatively more the company can go for reducing the current assets and try to invest it in long term assets or long term revenue earning investments. 2.  The company is suggested to have a continuous check of all cash and bank balance. In case if the cash is idle it can be brought to the notice and can be invested in various short term investment opportunities to earn returns. Forecasting of cash should be made to meet requirements of business.

IFIM COLLEGE BANGALORE

Page 65

 

A Study on Funds Management 3.  Due to the shortage in cash the company is unable to have adequate inventory reserves which are hampering its optimum production capacity. So the company has to have efficient inventory reserves to increase its production. 4.  The company is not able to generate income from other sources due to lack of skills of the investment analyst. So, the company should try improving its investment decisions to generate income from other sources. 5.  As a part of recommendation it is advisable if KS&DL diverts a little portion of funds in undertaking expansion activities and ultimately enhancing its sales and  profitability. 6.  By adopting good planning towards recovery of debt that is by adopting Good Credit  policy, Proper assessment of credit worthiness of its debtors, by adopting strict collection measures etc. the company can get into more profitability. 7.  It is suggested to control over and under stocking of raw material using technical auditors and maintain a coordination between production processes department and inventory handling department for efficient outcomes. 8.  If the company maintains a favorable cash and bank balance it will help in smooth running of business and maintain balanced working capital.  9.  There is a surplus over the years and the company should focus on new investments decisions.

CONCLUSION: The overall performance of the organization is satisfactory, particularly the last two years trading profit is good but the trading profit is fluctuating every year. The company can increase its clientele base by doing certain promotional campaigns such as organizing corporate parties and advertising in a better manner. As a part of the study it can be concluded that the quick ratio overall the year have remains stable which is the t he good indication for the company‟s position, since it‟s able to t o meet  meet   its current liabilities. Also the creditor‟s turnover ratio is a good indicator that the company is

IFIM COLLEGE BANGALORE

Page 66

 

A Study on Funds Management able to meet timely payments and hence is enjoying a good reputation in the market. However as per the debtors position in the balance sheet effective management is required, so that a favorable trend and position can be observed overall the years. Also KSDL should try to have an efficient inventory reserve so that its productivity is increase and hence improve the investment decision and increase the income level from other sources. Last but not the least the company can device a competitive pricing strategy so that it can overcome price related hurdles that it has been facing over the years and hence leads to a successful organization, fulfilling its operational objectives.

BIBLIOGRAPHY: 

REFERENCE

AUTHOR

EDITION

PUBLISHER

BOOKS

BBM Financial

Appannaiah Reddy, 1st Edition

Himalaya Publishing House,

Management

Satyaprasad

Delhi

IFIM COLLEGE BANGALORE

Page 67

 

A Study on Funds Management Business Research

Ramachandra,

Methods

Chandrasekhar

Management

M.N. Arora

1st Edition

Himalaya Publishing House, Delhi

1st Edition

Accounting

Himalaya publishing house, Delhi

  Annual Reports



  Journals



  Internet references



  Web Sites :



www.mysoresandal.co.in www.KSDL.com  en.wikipedia.org

PROFIT AND LOSS ACCOUNT (RS.IN LAKHS)

PARTICULARS

AMOUNT

AMOUNT

AMOUNT

AMOUNT

INCOME(year)

2010

2011

2012

2013

 Net Sales

1,04,43,74,47 1,04,43,74,47

1,28,64,62,00

1,53,37,03,53

1,64,77,74,73

0

8

1

7

1,90,04,300

2,09,85,305

6,06,23,797

2,22,88,309

Other income IFIM COLLEGE BANGALORE

Page 68

 

A Study on Funds Management

1,06,33,78,77 0

1,30,74,47,31 3

1,59,43,27,32 8

1,67,00,63,04 7

4,73,09,343

2,64,66,726

7,03,74,213

5,32,86,174

1,11,06,88,11 3

1,28,09,80,58 7

1,66,47,01,54 1

1,72,33,49,22 1

Materials Consumed (include trading items)

50,70,94,583

54,13,33,115

80,19,28,343

77,53,83,439

Other Expenditure

55,19,82,573

61,35,25,868

73,44,42,910

79,97,99,905

Depreciation

36,05,016

35,77,430

39,69,038

49,82,474

1,06,26,82,57 3

1,15,85,36,41 3

1,54,03,40,29 1

1,58,01,65,81 8

Operating Profit/Loss

4,80,05,540

12,24,44,174

12,43,61,250

14,31,83,402

Less: Interest and Finance charges

46,08,734

45,08,734

72,76,261

82,97,546

PROFIT BEFORE TAX

4,33,57,146

11,79,35,440

11,70,89,988

13,48,85,857

Current Tax

52,00,000

1,80,00,000

1,85,00,000

4,80,00,000

Fringe Benefit Tax

23,01,452

70,98,690

21,28,828 2,03,58,318

89,30,375

-

87,04,083

Increase/(-) Decrease in stock

EXPENDITURE

Less: Provision for Taxation

Deferred Tax Asset

-

3,21,46,548

Dividend Tax

-

45,96,941

PROFIT AFTER TAX

3,58,55,694

Prior period income/(-) Expenditure

66,40,886

-

8,82,39,809

11,68,14,478

9,31,12,149

-

1,40,78,609

14,41,082

Proposed dividend

-

2,70,48,785

-

1,59,11,050

Tax of earlier year

2,20,99,794

1,37,30,643

-

-

2,03,96,797

12,17,55,748

13,08,93,087

7,57,60,017

(53,26,504)

1,50,70,293

13,68,26,041

26,77,19,129

1,50,70,293

13,68,26,041

26,77,19,129

34,34,79,146

Profit/loss brought forward previous year Profit/loss Carried to IFIM COLLEGE BANGALORE

Page 69

 

A Study on Funds Management Balance sheet

ST

BALACE SHEET AS AT 31  MARCH

Particulars 1.Sources Of Funds  u)  Share capital v)  Reserve & surplus w)  Secured loans

IFIM COLLEGE BANGALORE

2009

(AMOUNT

IN

CRORES) CRORES)

2010

2011

2012

2013

31.82

31.82

31.82

31.82

31.82

-

1.51

13.68

26.77

34.34

-

1.66

1.04

10.72

8.00

Page 70

 

A Study on Funds Management x)  Unsecured loans

13.00

9.00

8.35

8.35

-

-

3.21

5.25

6.14

30.28

29.24

29.61

30.96

32.72

24.24

23.35

23.71

23.98

24.14

6.03

5.89

5.91

6.98

8.85

-

-

-

-

-

6.03

5.89

5.91

6.98

8.85

34.12

35.09

29.60

40.75

51.76

6.88

8.09

14.63

16.35

17.29

Cash and Bank Balance

19.57

31.23

33.43

25.51

28.53

Loans and Advances

9.44

7.25

10.49

21.53

21.39

-

-

-

-

-

70.02

81.66

88.17

109.14

123.95

Current Liabilities

17.07

29.26

30.88

24.67

29.23

Provision

9.82

11.59

16.67

20.50

26.91

 Net Current Assets (6) Less (7)

43.13

40.81

40.62

63.98

67.80

Miscellaneous Expenditure

2.12

1.29

2.80

1.64

-

Total Assets (Net)

51.81

47.99

61.96

77.84

82.52

Deferred tax liability (Net)

1.Fixed assets  Gross block Less depreciation  Net block Capital work in progress Total 2. current Assets Loans and Advances Inventories

Sundry Debtors

Investments in gratuity fund Total

19.99

Less: Current Liabilities and Provision

IFIM COLLEGE BANGALORE

Page 71

 

A Study on Funds Management

IFIM COLLEGE BANGALORE

Page 72

Sponsor Documents

Or use your account on DocShare.tips

Hide

Forgot your password?

Or register your new account on DocShare.tips

Hide

Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in

Close