Project on Project Management
Content
CONTENTS
CHAPTER-I - INTRODUCTION
• • • • Introduction About The Study Concept Of Project Management Industry Profile Company Profile CHAPTER-II – RESEARCH METHODOLOGY • • • • • Purpose of the Project Work Significance of the Project Work Objectives of the Study Sources of Data Scope of the Study
CHAPTER-III
CONCEPT OF PROJECT MANAGEMENT • • • • • • Introduction Responsibility of a Project Manager Concepts Project Management Project management Life cycle Need for Project management Project Dimension’s
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•
Project Management Model
CHAPTER-IV - DATA ANALYSIS
• • • • • Current ratio Net profit ratio Sales position Common size income statement Comparative Balance Sheet CHAPTER- V – FINDINGS & SUGGESTIONS SUMMARY • • Findings Suggestions
Bibliography Acknowledgement
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INTRODUCTIO N
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The topic taken for the study is “A study on Financial Performance Analysis at Surya Metal Finishers. Bangalore The information in order to analyze the data is taken from the previous Year. The objective of the study is to analyze the profitability of the company and to analyze the ratios of the company. Identify whether the company have growth potential and sound financial basic, to analyze the trend percentage. The study used is analytical in nature. The data needed for the present study have been collected through the secondary data. The researcher as part of curriculum has conducted a study to find out to financial performance of the company. The required data is collected from the budgeted formats, Flash results and Five- year annual diary of the company. The data has been collected for a period of five years from 2007-08 to 200910. In this study an attempt has been made to analyze the financial performance of SURYA METAL FINISHERS. to interpret its results by using the various tools of financial statement analysis namely: • • • • • Sales position Current, Gross profit, Net Profit Ratio analysis Common size Income Statement. Comparative Balance Sheet Analysis. Trend percentage. The cash balance level of the company when compared to current liabilities is to minimum and the management may improve the cash balance to an optimum level to meet the contingencies. KSOU MANASAGANGOTRI MYSORE Page 4
INTRODUCTION ABOUT THE STUDY Finance may be defined as that administrative area or set of administrative functions in an organization which relate with the arrangement of cash and credit so that the organization may have the means to carry out its objective as satisfactorily as possible”. The main activities to the successful administration of finance in any organization comprise financial planning, raising the needed funds, financial analysis and control. Analysis of financial statement in a business deserves much attention in carrying out finance function. It helps to regains prospective analysis of operative period for the purpose of evaluating the wisdom and efficiency of financial planning. Analysis of what has happened should be of great value in improving the standards, techniques and procedures of financial control involved in carrying out finance function.
FINANCIAL MANAGEMENT Financial management is broadly concerned with the procurement and effective utilization of funds by a business firm. Financial management emerged as a distinct field of study at the turn of this century. Its evolution may be divided into two broad phases. The Traditional Phase and Modern Phase Finance theory, in general resist on the premise that the goal of the firm to its equity shareholders. This means that the goal of the firm should be to maximize of market value of its equity shares the goals of KSOU MANASAGANGOTRI MYSORE Page 5
maximization of shared as wealth, expressing the shareholders point of view, several alternatives have been suggested, maximization of earning per share, maximization of returns on equity etc., maximization of profit is not as inclusive goal as maximization of shareholders wealth. It suffers from several limitations like profit is obscure term’s not a proper guide to decision making. It should be expressed either on a per share basis or in relation to investment etc.
DEFINITION According to Solomon, financial management is concerned with the efficient use of an important economic resource, namely, capital funds.
According to Philippauts, “Financial Management is concerned with the management decisions the result in the acquisitions and financing of long term and short term credits for the firm. As such it deals with the situations that require selection of an specific assets as well as the problem of size and growth of an enterprise. The analysis of this decision is based on the expected inflows and outflows of funds and their effects upon managerial objective
FINANCIAL PERFORMANCE ANALYSIS The financial statement provides the basic data for financial performance analysis. Basic limitation of the traditional financial statement comprising the balance sheet and the profit and loss account is that they do not give all the information regarding the financial operations of a firm. Nevertheless, they provide some useful KSOU MANASAGANGOTRI MYSORE Page 6
information to the extent the balance sheet mirrors the financial position on a particular date in terms of the structure of assets, liabilities and owners equity, and so on. The profit and loss account shows the results of operations during a certain period of time in terms of the revenues obtained and the incurred during the year. Thus, the financial statements provide a summarized view of the financial position and operations of a firm. Therefore, much can be learnt about a firm from a careful examination of its financial statements as invaluable documents / performance reports. The analysis of financial statements is, thus, an important aid to financial analysis.
The focus of financial analysis is on key figures in the financial statements and the significant relationship that exists between them. The analysis of financial statements is a process of evaluating relationship between component parts of financial statements to obtain a better understanding of the firm’s position and performance. The first task of financial analyst is to select the information relevant to the decision under consideration from the total information contained in the financial statement. The second step involved in financial analysis is to arrange the information in a way to highlight significant relationships. The final step is interpretation and drawing of inferences and conclusions. In brief, financial analysis is the process of selection, relation, and evaluation.
RATIO ANALYSIS The ratio analysis is one of the most powerful tools of financial analysis. It is the process of establishing and interpreting various ratios. A financial ratio is the relationship between two accounting figures expressed mathematically. Ratios provide clues to the financial position of a concern. These are the pointers and indicators of financial strength,
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soundness, position or weakness of an enterprise. One can draw conclusions about the exact financial positions of a concern with the help of ratios. Ratio analysis is a process of comparison of one figure against another, which make a ratio, and the appraisal of the ratios to make proper analysis about the strengths and weaknesses of the company’s operations. Ratio analysis is extremely helpful in providing valuable insight into a company’s financial picture 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 and at the end of a period and these changes can help in forming an opinion about the progress of an enterprise.
Balance sheets as on two or more different dates are used for comparing the assets, liabilities and the net worth of the company. Comparative balance sheet analysis is useful for studying the trends of an undertaking.
Advantages • • • Comparative statements help the analyst to evaluate the performance of the company. Comparative statements can also be used to compare the performance of the firm with The average performance of the industry between different years.
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• •
It helps in identification of the weaknesses of the firm and remedial measures can be done meritly. Taken accordingly.
COMPARATIVE INCOME STATEMENTS The income statement discloses net profit and net loss on account of operations. A comparative Income Statements will show the absolute figures for two or more periods, the absolute change from one period to another and if desired the change in terms of percentages.
COMMON SIZE FINANCIAL STATEMENTS Common size financial statements are those in which figures reported are converted into percentages to some common base. In the income statement the sale figure is assumed to be low and all figures are expressed as a percentage of sales. Similarly in the balance sheet the total of assets or liabilities is taken as 100 and all the figures are expressed as percentages of this total. NATURE OF FINANCIAL STATEMENTS According to the American Institute of Certified Public Accountancy Financial Statements reflect a combination of recorded in the financial are not depicted in the financial statements, however material they might be, for example, fixed assets are shown at cost irrespective of their market or replacement price since such price is not recorded in the books.
LIMITATIONS OF FINANCIAL STATEMENT KSOU MANASAGANGOTRI MYSORE Page 9
Financial statements are prepared with the object of presenting a periodical review or report on the progress by the management and deal with the 1) Status of the investments in the business and 2) Results achieved during the period under the review.
CONCEPT OF PROJECT MANAGEMENT
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A formal definition Of Project management
A project is a temporary sequence of unique, complex, and connected activities having one goal or purpose and that must be completed by a specific time, within budget, and according to specification.
Effective Project Management by Wysocki, Beck, and Crane.
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So, what is a project?
Temporary
Unique
Does not necessarily mean “short duration” Have a definite beginning Ends with a measurable outcome Objectives have been achieved Becomes clear the objective cannot/will not be met Need no longer exists The project is terminated Something that has not been done before Repeating elements do not change the fundamental uniqueness of project work
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What is project management?
Project management is the process of
defining the extent (scoping), planning, staffing, organizing, directing, and controlling The development of an acceptable system at a minimum cost within a specified time frame
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Why is it so complicated?
Project management originated in engineering Base of knowledge emphasizes largescale projects PM emphasis tends to be on things and procedure, not people and process PM for IT issues are different than “classic” PM
Building a bridge vs. building a LMS system Designing Hoover Dam, Space Shuttle
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PMBOK
• PMBOK
– Project Management Body of Knowledge – Theoretical Framework – Knowledge Areas
• Context • Processes
Integration Time Quality Communications
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Scope Cost Human Resources Risk
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Procurement
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What is the project manager responsible for?
Knowledge Communications Documentation Quality control Development
Staff Working practices About the organization Skills required for project Up, down, across organization
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Project dimensions
Budget
Schedule
Quality
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If we change one…
Schedule Budget
Quality
You automatically change the others
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The “formal” project life Cycle
Define (initiation) Plan Execute
These are the most Frequently overlooked phases in Most projects
Leading, team building, motivating
Control Close
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Project management model
Define Plan
Clarification, definition Specification Content, design, construction, testing, launch Maintenance, evaluation
Coordinate and control Close
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INDUSTRY PROFILE
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ELECTROPLATING Electroplating has, over recent decades, evolved from an art to an exact science. This development is seen as responsible for the ever-increasing number and widening types of applications of this branch of practical science and engineering. Some of the technological areas in which means and methods of electroplating constitute an essential component are all aspects of electronics: macro and micro, optics, opto-electronics, and sensors of most types, to name only a few. In addition a number of key industries such as the automobile industry (that uses for example chrome plating to enhance the corrosion resistance of metal parts) adopt the methods even where other methods, such as evaporation, sputtering, chemical vapor deposition (CVD) and the like are an option. That is so for reasons of economy and convenience. By way of illustration it should be noted that that modern electroplating equips the practitioner with the ability to pre-design the properties of surfaces and in the case of electroforming those of the whole part. Furthermore, the ability to deposit very thin multilayer’s (less than a millionth of a cm) via electroplating represents yet a new avenue of producing new materials. Schematics of an electrolytic cell for plating metal "M" from a solution of the metal salt "MA". Electroplating is often also called "electrodeposition", and the two terms are used interchangeably. As a matter of fact, "electroplating" can be considered to occur by the process of electrodeposition. Electrodeposition is the process of producing a coating, usually metallic, on a surface by the action of electric current. The deposition of a metallic coating onto an object is achieved by putting a negative charge on the object to be coated and immersing it into a solution which contains a salt of the metal to be deposited (in other words, the object to be plated is made the cathode of an electrolytic cell). The metallic ions of the salt carry a positive charge and are thus attracted to the object. When they reach the negatively charged object (that is to be electroplated), it provides electrons to reduce the positively charged ions to metallic form. Figure 1 is a schematic presentation of an electrolytic cell for electroplating a metal "M" from an aqueous (water) solution of metal salt "MA". To further illustrate the foregoing, let us assume that one has an object made of one of the common metals, like copper, and that it has been properly pre-cleaned. We should want to plate it with, say, nickel. A wire will have to be attached to the object while the other end of the wire should be attached to the negative pole of a battery (or a power supply). To the positive pole of the battery (or power supply) we connect another wire with its other end connected to a rod made of nickel. Next we fill the cell with a solution of the metal salt to be plated. It is possible to use a molten salt and in some not so common cases, such as the deposition of tungsten, that is what is done. In most, more common, cases though the salt is simply dissolved in KSOU MANASAGANGOTRI MYSORE Page 23
water. In our present example the nickel chloride salt dissociates in water to positively charged nickel cat ions and negatively charged chloride anions. As the object to be plated is negatively charged it attracts the positively charged nickel cat ions, and electrons flow from the object to the cat ions to neutralize them (to reduce them) to metallic form. Meanwhile the negatively charged chloride anions are attracted to the positively charged nickel rod (known as the anode of the electrolytic cell). At the anode electrons are removed from the nickel metal, oxidizing it to the nickel cat ions. Thus we see that the nickel dissolves as ions into the solution. That is how replacement nickel is supplied to the solution for that which has been plated out and one retains a solution of nickel chloride in the cell. Nickel chloride is used here to exemplify the process of electroplating for a number of reasons. First among those is simplicity. It is not recommended, however, that nickel be used for, say, school science demonstrations because some individuals are quite allergic to it. We further do not recommend that chloride salts be used because those are amenable to release chlorine gas. For school or amateur type demonstration we recommend plating copper coins with zinc or nickel coins with copper. 1.2 Growth of Electroplating in India 1.2.1 Brief History & Present Scenario Electroplating has a long history in India; like many industrial activities, it gained Momentum after Independence. Modern day electroplating started in early sixties in Mumbai with dull Nickel. Bright Nickel followed soon after. Although official figures are not available, estimates (ref: 5) indicate that in 1970, electroplating industry was considered to be in the tune of Rs. 100 million. Since then, the industry has grown steadily without facing any recession. In 1976, the first semi-automatic plant was set up in Mumbai. Currently there are more than 600 automatic plants in the country. During the Period 1970-85, the import restriction regulation in force led to high growth of this Industry. It is estimated that electroplating industry is now worth Rs. I000 crores (Rs.10, 000 million; see Fig 1.1). This means that compounded average annual growth rate is about 16.6%. The sector employs about 1, 30,000 people in approximately 12,000 organized units. No statistics is available for unorganized 'units.1.2.2 Types and Location of Units The Industry is widely spread out across the country. While there are primarily two Varieties- (I) Primary User and Original Equipment (OE) manufacturer, who do, Electroplating as one of their overall manufacturing activity and (ii) Job work units, who do only plating for a large variety of components for both domestic and export purpose. Certain states have large number of units concentrated in some towns / cities, such as
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Andhra Pradesh -- Hyderabad Delhi Gujarat- Ahmedabad Haryana- Faridabad Karnataka- Bangalore Maharashtra - Mumbai, Pune, Nashik Punjab - Ludhiana Tamil Nadu - Chennai, Madurai Uttar Pradesh - NOIDA It is difficult to find out the distribution of production between the organized and small Scale / tiny / unorganized sector. However, judging by the consumption of chemicals and Additives, it is estimated that about 18,000 tons are consumed by organized sector, while Tiny and unorganized sector consumes about 10,000 tons. Therefore, approximately 36 % of the industry is contributed by the unorganized sector.
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REVIEW OF LITRATURE
History of electroplating
Before continuing with more detailed discussion of the subject at hand, a brief history of electroplating will be presented. The early history of electroplating may be traced back to around 1800. A university professor, or in modern terms: a chemist, Luigi Brugnatelli is considered as the first person to apply electrodeposition process to electroplate gold. Brugnatelli was a friend of Allisandro Volta (after whom the electric unit "volt" has been named) who had just a short time before discovered the chemical principles that would make possible the development of "voltaic" electrical cells. Volta's first actual demonstration of that was called "Voltaic Pile". As a consequence of this development, Brugnatelli's early work using voltaic electricity enabled him to experiment with various plating solutions. By 1805 he had refined his process enough to plate a fine layer of gold over large silver metal objects. He wrote in a letter to the Belgian Journal of Physics and Chemistry (later reprinted in Britain), which reads:
"I have lately gilt in a complete manner two large silver medals, by bringing them into communication by means of a steel wire, with a negative pole of a voltaic pile, and keeping them one after the other immersed in ammoniate of gold newly made and well saturated". KSOU MANASAGANGOTRI MYSORE Page 26
Unfortunately for Brugnatelli, a disagreement or falling out with the French Academy of Sciences, the leading scientific body of Europe at the time, prevented Brugnatelli's work from being published in the scientific journals of his day. His work remained largely unknown outside of his native Italy except for a small group of associates. By 1839, however, scientist in Britain as well as in Russia had independently devised metal deposition processes similar to those of Brugnatelli's for copper electroplating of printing press plates. By 1840, this discovery was adapted and refined by Henry and George Elkington of Birmingham, England for gold and silver plating. Collaborating with their partner John Wright and using Formulae developed by the latter for potassium cyanide plating baths, the Elkingtons were able to have the first viable patents for gold and silver electroplating issued on their name. From Great Britain the electroplating process For gold and silver quickly spread throughout the rest of Europe and later to the United States. With the burgeoning knowledge and understanding of the subject of electrochemistry and its importance in understanding the processes of "electrodeposition" came the ability to deposit other metals. By the 1850's electroplating methods of bright nickel, brass, tin, and zinc were commercialized and were applied for engineering and specific commercial purposes. In time, the industrial age and financial capital had expanded from Great Britain to the rest of the world. As a result, electrodeposition processes were expanding in scope and found more and more usage in the production of a variety of goods and services. While this expansion was taking place, no significant scientific discoveries were made until the emergence of the electronic industry in the mid forties of the last century. The only exceptions to this were improvements made to direct current power supplies which were/are used instead of batteries. Thus it is said that the years from 1870 to 1940 were a quiet period as far as electroplating was concerned, significant only in gradual improvement in larger scale manufacturing processes, anodic and cathodic reaction principles and plating bath formulae. During the later years of the forties, rediscovery of heavy gold plating for electronic components took place. In comparison to that, during the mid to later fifties the usage of new and more "user friendly" plating baths based on acid formulae (rather than strongly poisonous cyanide based ones) were developed and introduced for large scale commercial use. In closing this brief historic summary one is to note that today a number of regulatory laws (enacted mainly in the nineteen-seventies), for instance concerning waste water emission and waste disposal, set the tone/direction for the electrodeposition/electroplating industry for the next thirty years. Today, with the impressive progress and deeper understanding of the underlying electrochemical principles of electrodeposition, sophisticated plating baths formulae KSOU MANASAGANGOTRI MYSORE Page 27
have been developed and are being routinely employed. Those provide much greater control over the working characteristics of the deposition process than hitherto. Layer thickness, performance of electroplated finishes is among the attributes that have been brought under strict control. New developments enable greater plating speed, better throwing power (the ability of a plating solution to produce a relatively uniform distribution of metal upon a cathode of irregular shape), as well as reliable plated finishes. In addition, electroplating of materials such as platinum, osmium, and ruthenium are now broadly used in electronics for connectors, circuit boards, contacts etc. The writer believes that new and innovative electroplating technology will facilitate the rapid expansion of the telecommunication industry. In general, the growth of the electronics industry as a whole, and the demand to support the expansion of its underlying infrastructure will continue to drive improvements worldwide in the electrodeposition/electroplating industry. To illustrate the possible directions of progress we mention the need for further refinement and control of dc power supplies. Such progress should lead to further achievements in the electroplating and metal finishing industry. Last, but certainly not least, safer manufacturing methods and processes including wastewater recycling should reduce work place exposure to dangerous chemicals and waste byproducts. There has been a recent upsurge of interest in electrodeposition. This is due to three main factors/technologies: Metal deposition for the fabrication of integrated circuits. Deposition of magnetic recording devices (heads, discs). Deposition of multilayer structures. By way of illustration we mention here that electrodeposition of copper for integrated circuit fabrication has been successfully used since 1997 for the production of interconnection lines down to less than 0.02 microns (micron = one millionth of a meter) width. Electrodeposition methods represent a very attractive alternative to the hitherto conventional fabrication methods. Surface preparation It is commonly accepted and often quoted by electroplaters that one can make a poor coating perform with excellent pretreatment, but one cannot make an excellent coating perform with poor pretreatment. Surface pretreatment by chemical and/or mechanical means is important not only in the case of preparations for electroplating but is also required in preparation for painting. In either of these, methods are designed to ensure good adhesion of the coating or paint to the surface. Most (metal) surface treatment and plating operations have three basic steps. Surface cleaning or preparation. Usually this includes employing of solvents, alkaline cleaners, acid cleaners, abrasive materials and/or water. Surface modification. That includes change in surface attributes, such as application of (metal) layer(s) and/or hardening. KSOU MANASAGANGOTRI MYSORE Page 28
Rinsing or other work-piece finishing operations to produce/obtain the final product. Surface cleaning or preparation will be discussed in more detail. Success of electroplating or surface conversion depends on removing contaminants and films from the substrate. Organic and nonmetallic films interfere with bonding by causing poor adhesion and even preventing deposition. The surface contamination can be extrinsic, comprised of organic debris and mineral dust from the environment or preceding processes. It can also be intrinsic, one example being a native oxide layer. Cleaning methods are designed to minimize substrate damage while removing the film or debris. If a (metal) surface's chemistry and processing history are known one can anticipate cleaning needs and methods. In practice, extrinsic organic and inorganic soils originate with processing of the substrate before plating, as well as from the environment. Specific residues include lubricants, phosphate coating, quenching oils, and rust proofing oils, drawing compounds, and stamping lubricants. In short, the mixture of potential contaminants to which a part is exposed is typically complex. Again in case of a metal substrate it must be remembered that all metals form oxide and inorganic films to a degree with environmental gases and chemicals. Some of these are protective against continuing attack such as the aluminum oxide formed on aluminum alloys (see also anodizing). That phenomenon is the reason of the usefulness of aluminum siding on some homes. On the other hand, some are nonprotective, such as iron oxide on steel. Some of these films can even be plated directly with nickel over aluminum oxide over aluminum being an example. The cleaning and activation steps must account for the fact that surface oxide re-forms at different rates on different metals. Specifically, in case of iron or nickel the oxide re-forms slowly enough that the part can be transferred from a cleaning solution to a plating bath at a normal rate. In case of aluminum or magnesium the oxide re-forms very fast such that special processing steps are required to preserve the metal surface while it is being transferred to electroplating. Cleaning processes are based on two approaches. In physical cleaning, mechanical energy is introduced to release, both extrinsic and intrinsic contaminants from the (metal) surface. Examples are ultrasonic agitation and brush abrasion. In chemical cleaning contaminant films are removed by active materials, dissolved or emulsified in the cleaning solution. Extrinsic contaminants are removed with surface-active chemicals while the chemical energies involved are modest. Intrinsic films are removed with aggressive chemicals that dissolve the contaminant and often react with the surface (metal) itself. The energy involved in surface preparation is substantial. Deposition By now it should be evident that electrodeposition or electroplating should be defined as the process in which the deposit of a (usually) thin layer (of metal) is formed "electrolyticly" upon a substrate (that is often, but not always, also a metal). The purpose of such process may be to enhance or change the substrate's appearance and/or attributes (such as corrosion resistance). Examples are the KSOU MANASAGANGOTRI MYSORE Page 29
deposition of gold or silver on jewelry and utensils, and the deposition of chrome on automobile parts. Electroplating is performed in a liquid solution called an electrolyte, otherwise referred to as the "plating bath". The bath is a specially designed chemical solution that contains the desired metal (such as gold, copper, or nickel) dissolved in a form of submicroscopic metallic particles (positively charged ions). In addition, various substances (additives) are introduced in the bath to obtain smooth and bright deposits. The object that is to be plated is submerged into the electrolyte (plating bath). Placed usually at the center of the bath, the object that is to be plated acts as a negatively charged cathode. The positively charged anode(s) completes the electric circuit; those may be at opposite edges of the plating tank, thus causing film deposit on both sides of the cathode. A power source in the form of a battery or rectifier (which converts ac electricity to regulated low voltage dc current) is providing the necessary current. This type of circuit arrangement directs electrons (negative charge carriers) into a path from the power supply (rectifier) to the cathode (the object to be plated). Now, in the bath the electric current is carried largely by the positively charged ions from the anode(s) toward the negatively charged cathode. This movement makes the metal ions in the bath to migrate toward extra electrons that are located at or near the cathode's surface outer layer. Finally, by way of electrolysis the metal ions are removed from the solution and are deposited on the surface of the object as a thin layer. It is this process to which we refer as "electrodeposition". For a more technical discussion of some aspects of the process see the Appendix. From the above it would appear that the thickness of the electroplated layer on the substrate is determined by the time duration of the plating. In other words, the longer time the object remains in the operating plating bath the thicker the resulting electroplated layer will be. Typically, layer thicknesses may vary from 0.1 to 30 microns (micron = one millionth of a meter), though nothing prevents the deposition of thicker or thinner layers, as desired. The geometric shape and contour of an object to be plated affects the thickness of the deposited layer. In general, objects with sharp corners and features will tend to have thicker deposits on the outside corners and thinner ones in the recessed areas. The cause of this difference in the resulting layer thicknesses is that dc current flows more densely to sharp edges than to the less accessible recessed areas, in other words, the current distribution is not uniform. (Another, more accurate, explanation of this phenomenon involves the geometry of the electric field lines that exist between cathode and anode in the solution). In practice, an item such as, say, a watch or similar item with sharp faceted corners are difficult (almost impossible, actually) to plate uniformly. A plating method known as "electro less plating", this is outside the scope of this.
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Article, assures uniformity of plated thickness even on highly irregular shaped objects. In the case of electroplating, judicial placement of the anode(s) as well as modifications of the current density are required to overcome the thickness irregularity effects. Electroplating processes will not, as a rule, conceal preexisting surface imperfections such as scratches, dents or pits. Actually, the plating process will more often than not, make most surface blemishes even more pronounced. Thus it is important to remove any undesirable surface marks prior to the plating action. Typical voltammogram for a single-metal deposition (current and potential are plotted on arbitrary scales; cathodic current is negative by international convention, absolute value is plotted for sake of simplicity). Now, the electrochemical processes which occur in the deposition of a single metal has been known and utilized empirically for more than a century. In this case, it is not particularly necessary to examine the details of the mechanism and all the different (and numerous) parameters that would affect the process (and are outside the scope of this article). However, when attempting to reduce two or more different metals from a single solution, it is essential that the processes occurring at the cathode be considered. The most effective tool for analyzing the processes is a voltammogram, a graph of current against electrode potential (Figure 2). Such a curve provides all the information necessary to select the appropriate potential for the reduction of a desired metal, individually, without the necessity of rigorously analyzing all the interactions involved. Thus, for instance, if one considered two metals "A" and "B" with metal "A" being less noble (that is, with a more negative standard potential) than "B", the Volta metric curve for either one would resemble that shown in Figure 2. For the purpose of selective deposition the important distinction between the two metals is the onset of the reduction peaks in the voltammograms and their separation. Specifically, if the two peaks are clearly separated, one can reduce only metal "B" at some potential, while both can be reduced at a more negative potential. At the more negative potential the ratio between the amount of each metal deposited and so present in the alloy formed, is determined primarily by their relative concentrations in the solution. On the other hand, if the two Volta metric peaks overlap considerably, only an alloy can be deposited. Another note of caution: one should not increase the cathodic potential (and current) too far to avoid parasitic reactions that may occur beyond "over-potential reactions" in Figure 2. In cases of practical applications be it electro refining, electro winning, or plating the practitioner is interested only in the weight of metal deposited on the cathode. Any current causing other changes is considered "wasted". Of course, according to Faraday's law the overall amount of chemical change produced by any given quantity of electricity can be exactly accounted for. KSOU MANASAGANGOTRI MYSORE Page 31
Thus we define the current efficiency as the ratio between the actual amounts of metal deposited to that expected theoretically from Faraday's law. In other words, the ratio of the weight of metal actually deposited to the weight that would have resulted if all the current had been used for depositing is called the cathode efficiency, and it is desirable to keep it as close to 100% as possible. Schematics of a plating setup for the production of super lattice multilayer’s. The possibility of plating two metals from the same solution at different potentials, as discussed above, permits the creation of complex structures with relatively simple processes. Figure 3 depicts the schematics of a practical electrodeposition cell for the production of super-lattice multilayer’s. In this case, the deposition is carried out using a computer controlled potentiostat that controls the potential of the piece to be coated (the cathode) against the reference electrode. A pulse train shaped potential is enforced, resulting in the multilayer deposition. If one considers a copper/nickel system, the potential difference between the two levels would be approximately half a volt, with pure copper being deposited at the more positive potential and an alloy at the more negative potential. The thickness of the layers is controlled by the width of the pulses; very thin layers (less than a millionth of a cm) can be deposited in a few milliseconds (thousandth of a second) per layer. This way, multilayer’s of the two metals can be deposited using a single bath to produce magnetic/multilayer structures to be used in reading heads for computer hard discs. This example illustrates how complex and sophisticated the electrodeposition techniques may be. Appendix Electrodeposition or electrochemical deposition (of metals or alloys) involves the reduction of metal ions from aqueous, organic, or fused salt electrolytes. In its simplest form the reaction in aqueous medium at the cathode follows the equation [1] M+n + ne- ==> M With a corresponding anodic reaction. The anode material can either be the metal to be deposited (in this case the electrode reaction is electro dissolution that continuously supplies the metal ions) or the anode can be an inert material and the anodic reaction is oxygen evolution (in this case the plating solution is eventually depleted of metal ions). The deposition may, in principle, be accomplished via two different paths: An electrodeposition process in which electrons are provided by an external power supply. An electro less (autocatalytic) deposition process in which a reducing agent in solution is the electron source.
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The deposition reaction presented in Equation [1] is a reaction of charged particles at the interface between a solid (metal) electrode and a liquid solution. The two types of charged particles that can cross the interface are metal ions "M+n" and electrons "e-". The deposition reaction involves four types of issues. They are: Metal-solution interface as the locus of the deposition process. Kinetics and mechanism of the deposition process. Nucleation and growth process of the metal lattice (M lattice). Structure and properties of the deposits.
Discoveries Surrounding Electroplating
Several key inventions were in place before the discovery of electroplating, which played an essential role in how the electroplating process came about. In 1800, Alessandro Volta invented the voltaic pile, a row of voltaic cells that create an electric current, the first electric battery. The use of metal to transmit electricity is key in electrodeposition—it is unlikely that electroplating would have been discovered without Volta’s earlier work already in place. Relying on Volta’s voltaic pile as a main source of electricity, the Italian chemist Luigi Brugnatelli invented electroplating in 1805. His early attempts at electroplating evolved until he successfully plated a thin layer of gold onto silver. Despite the publication of his findings in the Belgian Journal of Physics and Chemistry, his research was not taken seriously due to Napoleon Bonaparte and the French Academy of Sciences. It wasn’t until similar research surfaced almost forty years later, that things began to change: in 1839 in Russia and Britain, processes that highly resembled Brugnatelli’s earlier work were used to electroplate copper printing plates. In Britain, around the same time, John Wright discovered that potassium cyanide could be used as an electrolyte solution during the electroplating process, and a brief year later British cousins George and Henry Elkington bought Wright’s patent and were issued several others for similar gold and silver electroplating processes. Eventually, the Elkingtons went on to experience widespread commercial success as they adapted their processes to plate silverware and manufacture decorative metal.
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Recent Electroplating Trends Although electroplating, as patented by the Elkingtons, spread quickly and successfully across Europe, the process remained relatively unchanged until the 1940s, when a surge in the electronics industry lead to the replacement of traditional cyanide solutions with safer acid baths, at least on the commercial level. The 1970s saw the development of safer water disposal regulations and continual hardware upgrades, which streamlined the process by enabling faster and more efficient electroplating. Today, new chemical developments make it possible to electroplate a wide range of materials, including platinum and osmium. The electronics industry continues to rely on electroplating for products such as connectors and circuit boards, and as the telecommunication industry expands, so does its dependence on the process. In addition, waste-water recycling and attempts to minimize work-place chemical exposure are helping ensure that electroplating continues to be safe regardless of chemical changes and ongoing developments.
INDUSTRIAL PROFILE OF ELECTROPLATING INDUSTRY
MAJOR PLAYER OF ELECTROPLATING INDUSTRY
Kuntz Electroplating Inc.
Company History
Our corporations’ humble beginning was on October 16th 1948 – the first day of production for Kuntz Electroplating Inc. The Company's founder, Oscar Kuntz, born on October 17, 1904,
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was a direct descendent of the Kuntz Family who owned and operated the famous Kuntz Brewery in Waterloo. After studying chemistry at both St. Mike's in Toronto, Ontario and at Fordham University in Detroit, Oscar Kuntz and his wife decided to return to Waterloo, Ontario with their family to start their own business. In 1947 Oscar purchased a building owned by Carr Brothers on Princess Street in Waterloo. Originally named Metal Finishers, Oscar started what is now Kuntz Electroplating Inc. with the assistance of his eldest son David. By 1951, the company grew to 48 employees. Due to the rapid growth of the Company, the plant relocated to Nyberg Street in Kitchener. The Nyberg Street location was expanded in both 1952 and 1956 to keep up with the growth of the company. Originally a 6,000 square foot plant in 1951, by 1956 it had doubled in size. In the late 1950's, Kuntz Electroplating had gained a reputation for its polishing and plating of household appliances, defense items including aircraft and radar work. In the late 1950's and early 1960's, Bob (Bobby) Kuntz brought fame to both the Company and to himself, as he was a star CFL running back and linebacker for both the Toronto Argonauts and Hamilton Tiger Cats. "Bobby Kuntz Day" brought 23,316 cheering Toronto fans to CNE Stadium on October 29, 1961 when Bob announced his retirement from the Argonauts. Bob later rejoined the CFL and helped the Tiger Cats win the Grey Cup in both 1963 and 1965. April 1961 was a sad month for the company, as one of the Company's founders, Dave Kuntz, passed away (Dave was the eldest son of Oscar Kuntz and elder
brother to Bob, Paul and Louie Kuntz. Jim Kuntz, still a loyal employee, is one of Dave's sons). At this time, Bob Kuntz was given the duties of managing the company. KSOU MANASAGANGOTRI MYSORE Page 35
In 1964, after increased production, plant expansion and employee growth, Kuntz Electroplating outgrew its location on Nyberg Street. A site was located on Wilson Avenue in Kitchener's new Industrial park. In 1965, Kuntz Electroplating moved to its' present location at 851 Wilson Avenue in Kitchener. The 20th Anniversary in 1968 was marked by adding 6,000 square feet to the plant. Known today as the "old Hoist Line", this addition "modernized the premises" and rearranged its production lines for one instead of three shifts. In addition, Kuntz leased a 5,000 square foot building (Polishing Plant #2) to the right of the main plant, to increase it's polishing capabilities. At this time, the Company employed approximately 100 employees and serviced customers from Windsor to Montreal in the appliance, automotive and aerospace industries. Sadly, just a couple years after this anniversary milestone the Company's Founder, Oscar Kuntz, passed away at the age of 68.
Due to continual demand for product, another Company Expansion occurred in 1973. This expansion included the addition of Maintenance, Lab, Quality Control, the Auto Lines and Shipping Departments. The Company now employed 150 employees and with this expansion, the plant space more than doubled to 52,000 square feet. In 1978, an addition was added to the existing Main Plant, which included the Hoist Aluminum Department and additional Office space. This increased the plant size to 75,000 square feet. In May of 1978, Kuntz Electroplating became a division of Magna International. This move broadened the automotive market for the company. In the fall of 1985, the Company saw the completion of the Waste Treatment facilities. This addition cost approximately $800,000 and added 7,500 square feet to the plant. In October of 1986, the Company completed the addition of the Hoist Steel, Hoist Phosphate and additional Shipping area to the back of the Main KSOU MANASAGANGOTRI MYSORE Page 36
Plant. This additional square footage of approximately 56,000 increased the plant to 150,000 square feet including warehouse space. During the Company's 40th Anniversary year, the company completed renovations to the Employees Main Lunchroom, Locker rooms, Boardroom, Lab, Quality Control and Office Facilities. At this time, Kuntz Electroplating employed 425 employees, and serviced over 125 customers in Southern Ontario, Michigan and into the mid-western United States. The highest output of products was for its copper/nickel chrome plating on both steel and aluminum bumpers. Zinc, phosphate and "specialty" finishes were produced as well. In May of 1989, Kuntz Electroplating acquired a sister company "Formulated Coatings of Brampton." Formulated Coatings had 90 employees, 120,000 square foot facility and was a world class "Cathodic E-Coating" facility. In the spring of 1990, after 12 productive years with Magna International, the Company felt it was in their best interest to discontinue its relationship with Magna and to go private once again. In May of 1991, at a time when many local companies had either closed down, left the country or had not recalled their people, Kuntz Electroplating was able to call back the 100 employees that had been temporarily laid off six months earlier. A major company decision was made to discontinue unprofitable lines in the company including barrel plating, zinc and our Auto 1, 3 and 4 Lines. The company instead would concentrate on the polishing and plating of bumpers, rims and automotive trim. Tremendous growth occurred from 1993 to 1996, with the Company hiring over 300 new employees bringing the total workforce to 675 employees -quite a growth from 50 years ago! Additions included our Recycling Department, where we recycle or reuse wood, gloves, cardboard, pop cans and numerous other goods; new offices for Shipping, Safety, and Supervisors at the rear of the main building; a new Cafeteria and locker rooms; a Health Centre. A Co-Generation Department was also added, allowing Kuntz Electroplating Inc. to supply its own power and harness steam (a natural bi-product) to heat the plating tanks. In 1997, a Company decision was made to plate additional aluminum wheels and therefore the Hoist Aluminum Department was expanded to accommodate this, along with the expansion of polishing Area 8. 150 polishers were added to staff to accommodate this new business.
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In 2000, Kuntz added a 5th co-generation engine which enabled the company to supply over 50% of its own power needs and be capable of running all critical production applications during emergency power outages. Other major projects were completed during the year including an expanded plating line (capable of both steel and aluminum substrates), a technologically advanced coating system for highSpeed wheel painting and an aggressive robotics program aimed at reducing costs and production efficiencies. In addition, a new high-tech water treatment facility was added with future expansion in mind. This new facility ensures Kuntz's commitment to a clean, safe environment is kept. In 2000, the Company employed over 1,000 people with over 750,000 square feet of production area. In 2004, Kuntz Electroplating Inc celebrated a new partnership with HarleyDavidson and Leggett & Platt (suppliers of the die cast aluminum components). A new state-of-the-art plating line launched that was designed and engineered specifically to meet Harley-Davidson's detailed standards for cosmetic nickel chrome finishing on its most popular engine. A result of two years of research, planning and construction, the new line uses sophisticated computer controlled, automated hoist systems, and is only the second of its kind in Canada. Advanced robotic polishing equipment was integrated into the new line, enabling an output of over 3 million parts annually for the American motorcycle company. This partnership with the fabled maker of motorcycles brings added prestige to Kuntz's portfolio of plated components. Today, the company continues to grow and deliver the highest quality polished and plated parts to the world’s most recognized manufacturers including Harley, GM, Toyota, Honda, BMW, Jaguar, Mercedes, Volvo, Nissan, Rolls-Royce, Bentley, and Freightliner to name just a few. The Company is now known throughout the world as the # 1 Finisher in the industry. With a dedicated workforce and a commitment "To be the best at what we do", Kuntz Electroplating is poised to remain #1 and to continue its phenomenal growth. Oscar would be proud!
Competitiveness
According to Michael Porter (1980) the state of competition in an Industry depends upon five basic competitive forces. KSOU MANASAGANGOTRI MYSORE Page 38
They are – Rivalry among existing firms Potential entrants – new entrants Buyers – bargaining power of buyers Suppliers- bargaining power of suppliers
• • • • An overview of what project management is The contexts of project management Project management model applied to small projects Why projects fail – ensuring project success
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COMPANY PROFILE
INTRODUCTION BACKGROUND AND INCEPTION M/s. Surya Metal Finishers is a Partnership Firm engaged in the business of Electro Plating like Zinc Plating, Copper Plating, Tin Plating, Phosphating, Blackening and allied activities.
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Since 2007 with over four years of Electroplating experience Surya Metal Finishers has pioneered the professional electro-platers movement in India. With continuous up gradation of technology, commitment to quality and constant innovation, Surya Metal has grown into a multi plating, multi facility, and multi technology company. S.M.F has set up impressive infrastructure and well service facilities in their 3 years of experience around the industry. 1. PARTNER’S PROFILE: C. Venkatesh Designation Age Qualification Experience Contact No. Email Id Designation Age Qualification Experience Contact No. Email Id : : : Managing Partner 38 years Diploma in Computer Science : 20 Years in Electroplating : 8050751510 : [email protected] : : : Partner 26 years B.Com, M.B.A : 05 Years in Electro plating : 09945236111 : [email protected]
Srinath R
2. LOCATION: The industry is located at #P-12/1, 3rd Stage, Peenya Industrial Estate, Bangalore – 560 058. The unit is having 1600 sq.ft space, 25 HP power and sufficient water facility. KSOU MANASAGANGOTRI MYSORE Page 41
NATURE OF BUSINESS CARRIED S.M.F offers well services from a wide spectrum of fields like Zinc plating, Tin plating, Copper plating, Phosphating, Chromium plating, Nickel plating, and all kinds of metal finishing on ms components. Expertise and skills in the company are used for effective work, continues Improvement in the quality and supply, quick solving the problems under the guidelines of the expert chemist. Communications has ensured that the services offered are state-of-the-art multinational companies in the field of electroplating like Zinc plating, Tin plating, Copper plating, Phosphating, Chromium plating, Nickel plating, and all kinds of metal finishing on ms components. S.M.F has been successfully increasing its contribution in the field of ELECTOPLATING, the most visible being the alkaline zinc plating process on M.S components. Other plating services include Tin plating, Copper plating, Phosphating, Chromium plating, Nickel plating. “Meeting and exceeding the expectations of customers” is the quality policy of S.M.F. In its march towards TQM, S.M.F has been helped b the spread of quality consciousness into every sphere and every activity. The passionate pursuit of excellence at SMF can be described in Four words: Quality, Technology, Better service and in time delivery.
VISION, MISSION, VALUES, OBJECTIVES STATEMENT OF THE COMPANY
VISION: To be a world-class enterprise in the field of professional electroplating. KSOU MANASAGANGOTRI MYSORE Page 42
MISSION: To be a customer focused globally competitive company in alkaline zinc plating and in other chosen areas of professional electroplating, through quality, technology and service.
VALUES Putting customers first Customer satisfaction Quick customer feed-back(Response) Working with transparency, honesty & integrity. Trusting and respecting individuals Fostering teamwork Striving to achieve high employee satisfaction Encouraging flexibility & better service Endeavoring to fulfill social responsibilities Proud of being a part of the organization
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OBJECTIVES To be a customer-focused company providing state-of-the-art services & solutions at competitive prices, meeting the demands of quality, delivery & service. To generate internal resources for profitable growth. To attain technological leadership in electroplating through in-house R&D, research laboratories & academic institutions. To give thrust to exports. To create a facilitating environment for people to realize their full potential through continuous learning & team work. To give value for money to customers & create wealth for partners. To constantly benchmark company’s performance with best in class internationally. To raise marketing abilities to global standards Effective and Efficient services and development process, considering the present and future needs of customers. Enhanced customer satisfaction by on-time delivery of defect free products and effective life cycle support. Continual up gradation and utilization of infrastructure and human resources. Mutually beneficial alliances with suppliers. Continual improvement of processes through innovation, technology and knowledge management.
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State-of-the-art design facility having in the areas •
1) 2) 3) • •
Proper cleaning facility Soak cleaning facility Anodic cleaning facility HCL pickling Well settled Laboratory with qualified chemist.
Passivation facility 1) Trivalent yellow passivation 2) Trivalent blue passivation 3) Top coat
• Drying facility 1) Hot water 2) Centrifugal Dryer 3) Hot air blowing system 4) Hot air oven (Thermostatic). • •
•
Inward/Outward perfect Inspection by specified person Chemicals Addition and Analysis We have the Lab facility for chemical Analysis and we follow our chemist Instructions and suggestions.
Testing Instruments
a) Temperature b) Density c) P.H
-
Thermometer Hydrometer Digital P.H meter and P.H Paper
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d) Thickness
Thickness testing Digital Instrument by Kiran Electronics, Mumbai.
PRESENT CUSTOMERS:
We are grateful to inform you that we are doing satisfactory work for the fallowing companies. a) b) c) d) e) f) g) h) i) Nash Industries GCL India (p)Ltd Sobo Technologies Flexo Tech Products H.H.V Industries A.R.R Precision Works (p) Ltd HYDROLINES-INDIA Professional Engineers Swasthik Technologies
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RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
“Research methodology is a systematic procedure of collecting the information in order to analyze and verify phenomenon with the help of the data”. The research process includes various steps such as formulating research problems extensive literature survey, preparing the research design, collection of data & processing, testing & preparation of the report etc. This project work is an attempt to get acquainted with various facts of short-term finance management. This project work aims at encompassing project management practices that prevail in the organization upon which the study was undertaken.
This project work is an endeavor to note, absorb and imbibe the mode of the current assets management and style of the corporate sector. Far from the routine academic exercise, it is an opportunity to go through the practical management where adequacy at the needy hour is the touchstone for efficiency.
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Significance of the study Project management is the lifeblood of an organization. It is better to describe it as financial lubricant of the firm
Project management study thus looks in meeting the short-term obligation of the firm. The surface of the current assets in order to satisfy the demand of current liabilities shows the firm’s solidity in terms of solvency towards current obligations. It determines the level of short-term funds to set off short-term obligations and also focuses on the net concepts i.e., the difference between current assets and current liabilities. The more the difference, the more the liquidity of the firm.
The study enables us to find out the trade-off between profitability and liquidity of the firm. The study also considers the estimation of the requirement of working capital, the optimum way of funding of working capital and optimum utilization of current assets etc. Thus working project management study is an extensive and exhaustive research into various dimensions of short-term fund management. This study involves discovery of level of current assets, its mix and the total current asset quiver to ensure smooth operations and efficient performance of the firm.
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Objectives of the Study The main objectives of the study of Project Management in Surya Metal Finishers, Peenya, Bangalore are as follows:
To assess the financial position of the company To study the Project Management with reference to liquidity and solvency of the Company To study the profitability position of the company by analyzing the various factors influencing the profitability To assess the financial stability of the firm by analyzing the comparative financial statements. To study the trend percentage it’s helpful in making a comparative study of the financial statements of several years To give suggestions to the Company to improve its performance, if any
LIMITATIONS OF THE STUDY • • • • • • The study is mainly depends upon the secondary data. I.e. The Final report of the company for the period of five years only. The Financial data cannot be estimated accurate for the future period. The analysis & Interpretation of the concern is based on only past performance. It cannot be compared with those of other concern. Financial ratios itself will not completely show the entire company’s good or bad position. The information provided in the financial statements is not an end in itself as no meaningful conclusions can be drawn from these statements alone. KSOU MANASAGANGOTRI MYSORE Page 56
Sources of Data The data required for the project work is collected from the following sources for the period of 2007-08 to 2009-10. Manual and accounting records it also helps in bringing out of the various factors which a lead to down fall of the company performance. RESEARCH DESIGN The research design of this study is analytical in nature. Here the facts and information are already available in order to make analysis and interpretation. DATA COLLECTION METHOD The data needed for the present study had been collected through the secondary data.
Primary Data The primary data for this project is collected from personal interviews and discussions with executives and the officials of the Company
Secondary Data The secondary data those which have been already been collected by someone else and which have already been passed through analytical processes. In this study, the secondary data are collected through company annual reports The secondary data is collected from the following sources • • Annual Financial Reports of the Company The different accounting records of the company Page 57
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• • •
Internal Reports of the Company Statements of the company Text Books
Scope of the Study The contents of the total evaluation of current assets and current liabilities and their percentage contribution in the total turnover. The yearly increase or decrease of current assets or current liabilities in the budget of Surya Metal Finishers is being reviewed. From this one would be in a position to glance the performance of current assets and current liabilities of the Company.
This project greatly deals with the working Project Management of Surya Metal Finishers, and emphasizes on the yearly composition of Financial Statement and Financial position in the total turnover of the Company. This also deals with key ratios to obtain a clearer picture of different resources available and at the disposal of the organization, which will enable one to give appropriation suggestion to the Company to improve its performance, if any.
TOOLS USED FOR ANALYSIS • • • • Ratio Analysis. Common size Income Statement (2007-2010). Comparative Balance Sheet (2007-2010). Trend percentage.
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ANALYSIS AND INTERPRETATION
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ANALYSIS AND INTERPRETATION
Details of Current Assets Particulars
2007-08 2008-09 2009-10
Inventory
1321000
235600
262900
Sundry Debtors Cash & Bank Balance Loans & Advances
149000
153924
306406
18700
11624
13578
122000
122000
122000
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350000 300000 250000 200000 150000 100000 50000 0 2007-08 2008-09 2009-10 Inventories S undry Debtors C & Ba ash nk B nces ala
Chart showing Current assets Transaction Details
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Details of Current Liability
Particulars
2007-08
2008-09
2009-10
Sundry creditors Term Loan
63100
72860
58090
0
0
190000
In 2009 Company has taken Rs.250000 amount of Term Loan from the bank and made the repayment of certain amount, and the remaining amount has been mentioned in the balance sheet.
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200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 0
Sundry Creditors Term loan
2007-08 2008-09 2009-10
Chart showing Current Liability Transaction Details
Source (2007-2010) Annual Report
Current assets and Current liabilities are inevitable. Current ratio = Current asset _______________
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Current liabilities
Current ratio S. No 1 2 3 Year 2007 – 2008 2008 – 2009 2009 – 2010 Current asset
421800 524148 704884
Current Liabilities
63100 72860 248090
Current Ratio 6.68 7.19
2.84
Source Annual report (2007 – 2010)
8 7 6 5 4 3 2 1 0 Current Ratio
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SALES POSITION OF THE COMPANY FOR 3 YEARS
PARTICULARS SALES
2007-08 1480900
2008-09 1525300
2009-10 1780000
ANALYSIS The sales position of the company is increasing continuously from 2007-08 to 200910, this indicates the profit earning capacity of the company.
INTERPRETATION Sales are meant to make profit and also have direct relation with profit. If the company has good quality products the sales will increase which in turn increase the profit. According to the data the company sales has been increased and even profit margin. It doesn’t mean that when sales increases even company will get marginal profit according to the sales, it even depends upon the Expenses (Direct and Indirect) Occurred by the company. Source (2007-10) Annual Report
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The Chart is Indicating the Sales Position of the Company in the Accounting years
1800000 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0
SALES
2007-08
2008-09
2009-10
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GROSS PROFIT RATIO: It measures the relationship of the gross profit to net sales and is usually represented as a percentage. Gross Profit Ratio = Gross profit ___________ X 100
Net sales
Table no.3.1.1 Gross Profit Ratio S. No 1 2 3 Gross profit
702170 621323 790970
Gross Net sales
1480900 1425300 1780000
Year 2007 – 2008 2008 – 2009 2009 – 2010
Profit Ratio
47.41 43.59 44.44
SOURCES: Annual Report (2007-2010)
INTERPRETATION: KSOU MANASAGANGOTRI MYSORE Page 67
From the above table shows that the Gross Profit Ratio was high in the period 2007 – 2008 with 47.41 and then a small decrease in the next year to 43.59 and it had a increase in 2009-2010 to 44.44.It shows a fluctuating trend.
NET PROFIT RATIO: The net profit ratio is that expresses the relationship between net profit and sales. It is a measure of management’s efficiency in operating the business successfully from the owner’s point of view. Net Profit Ratio = Net profit ________ X 100 Net sales Net Profit Ratio S. No 1 2 3 Net sales
14809 00 14253 00 17800 00
Net profit Ratio
23.52 16.5 17.17
Year 2007 – 2008 2008 – 2009 2009 – 2010
Net profit
348300 235110 305660
SOURCES: Annual Report (2007-2010)
INTERPRETATION: KSOU MANASAGANGOTRI MYSORE Page 68
From the above table shows that the Net profit ratio for the year 2007-08 is 23.52. In the year 2008-09 it decreases to 16.5 and in the year 2007-08 it increased to 17.17. A high ratio is preferable as it indicates more profitability where as a low ratio indicates low profitability.
ANALYSIS OF COMMON SIZE INCOME STATEMENT Common size income statement (2007 - 2009)
2007-08 Particulars Income Net sales Total income Less- Expenditure Operating expenses Deprecation Interest Total expenditure Profit Total
1080120
Percentage
2008-09
Percentage
1480900 1480900
100 100
1425300
100
1425300
100
72.93 3.5 0.05 76.48 23.52 100
1137489 44078 8623 1190190 235110
79.81 3.09 0.60 83.5 16.5 100
51750 730 1132600 348300 1480900
1425300
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INTERPRETATION: From the above table shows common size income statement in the year 2007-08 profit is 23.52% and 2008-09 profit is decreased to 16.5% compared to previous year.
3.2.2 Common size income statement (2008 - 2010)
2008-09 Particulars Income Net sales Total income Less- Expenditure Operating expenses Deprecation Interest Total expenditure Profit Total
1137489 44078 8623 1425300
Percentage
2009-10
Percentage
100
1780000 1780000
100 100
1425300
100
79.81 3.09 0.60 83.5 16.5 100
1377204 75046 22090
77.37
4.22
1.24
1190190
235110
1474340
305660 1780000
82.83
17.17 100
1425300
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INTERPRETATION: From the above table shows common size income statement in the year 2008-09 profit is 16.5% and 2009-10 profit is increased to 17.17% compared previous year.
ANALYSIS COMPARATIVE BALANCE SHEET Comparative Balance Sheet (2008 - 2009)
Particulars APPLICATION OF FUNDS Fixed assets CURRENT ASSETS Inventories Sundry debtors Cash and bank balance Loans and advances TOTAL ASSETS LIABILITES Sources Of Funds
Partner’s Capital
2007-08
2008-09
Increase
Decrease
299250
250972
48278
132100 149000 18700 122000
235600 153924 11624 122000
103500 4924 7076 -
721050
774120
657950 0 0 63100
701260 0 0 72860
62650
Loan and liability Profit and loss account Current liabilities TOTAL LIABILITES
9760
721050
774120
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INTERPRETATION: Assets: The table shows that a total Assets has been increased by 6.86%. The current Liabilities have been increased by 13.4%. Fixed Assets-The table is clearly showing that fixed assets have been decreased because of Depreciation (Reducing the value of the asset).there is no Additional Purchase of machineries during the year. Stock – Stock have been increased because of Increase in Purchase of raw materials during the year (2008-09) Sundry Debtors- Debtors quietly increased in the year (2008-09) compare to previous year. Cash & Bank balance: It is required for day to day transaction of the company; there is not much difference compare to previous year. In S.S.I (Small Scale Industries) like Surya Metal Finishers the cash transaction will be more than cheque transactions. Loans and Advances- There is no changes in advances because it is an advance paid by the company to the Building owner of the company , the company has been stayed in the same place for the next 2 years , so there is no changes in advances. Liability: Partner’s Capital- partners capital have been increased in the year 2008-09 compare to 2007-08 because the profit of the company have been added to the partner’s capital. Current Liability – Current liability have been increased due increase in the credit purchase during the year compare to previous year. KSOU MANASAGANGOTRI MYSORE Page 72
ANALYSIS COMPARATIVE BALANCE SHEET Comparative Balance Sheet (2009 - 2010) Particulars APPLICATION OF FUNDS Fixed assets CURRENT ASSETS Inventories Sundry debtors Cash and bank balance Loans and advances TOTAL ASSETS LIABILITES Sources Of Funds
Partner’s Capital 701260 0 0 72860 906920 190000 0 38090 34770 205660 190000 235600 153924 11624 122000 262900 306406 13578 122000 27300 152482 1954 250972 430126 179154
2008-09
2009-10
Increase
Decrease
774120
1135010
Loan and liability Profit and loss account Current liabilities TOTAL LIABILITES
774120
1135010
INTERPRETATION: Assets: KSOU MANASAGANGOTRI MYSORE Page 73
The table shows that a total Assets has been increased by 31.8%. The current Liabilities have been decreased by 47.72%. Fixed Assets-The table is clearly showing that fixed assets have been increased because of Additional Purchase of machineries during the year Stock – Stock have been increased because of Increase in Purchase of raw materials during the year (2009-10) Sundry Debtors- Debtors highly increased in the year (2009-10) compare to previous year due to increase in credit sales during the year. Cash & Bank balance: It is required for day to day transaction of the company; there is not much difference compare to previous year. In S.S.I (Small Scale Industries) like Surya Metal Finishers the cash transaction will be more than cheque transactions. Loans and Advances- There is no changes in advances because it is an advance paid by the company to the Building owner of the company , the company has been stayed in the same place for the next 2 years , so there is no changes in advances. Liability: Partner’s Capital- partners capital have been increased in the year 2009-10 compare to 2008-09 because the profit of the company have been added to the partner’s capital. Current Liability – Current liability have been decreased due the payment made by the company during the against credit purchase during the year (Term loan sanctioned during the year) so it has been decreased compare to previous year.
RETURN ON TOTAL RESOURCES:
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This ratio is calculated to measure the profit after tax against the amount invested in total assets to ascertain whether assets are being utilized properly or not. It is calculated as under: Return on total assets = Net profit after tax ________________ X 100 Total assets Return on total resources
Return on Total S. No 1 2 3 Year Net Profit Total Assets Ratio 2007 – 08 2008 – 09 2009 – 10 348300 235110 305660 721050 774120 1135010 48.3 30.37 26.93 resources
SOURCES: Annual Report (2007-2010)
INTERPRETATION: From the above table shows that the return on total resources ratio for the year 200708 is 48.3.In the year 2008-09 it decreased to 30.37. In the year 2009-10 is 26.93 decreases in past 2 year.
FIXED ASSET TURNOVER RATIO: KSOU MANASAGANGOTRI MYSORE Page 75
The ratio indicates the extent to which the investment in fixed assets contributes towards sales. The standard or ideal fixed assets Turnover ratio is five times. The fixed assets turnover ratio is generally expressed as a rate. It can be calculated as follows: Fixed asset turnover ratio= Net sales ___________ Fixed assets Fixed asset turnover ratio S. No 1 2 3 Fixed assets Year 2007 – 2008 2008 – 2009 2009 – 2010 Net sales 1480900 1425300 1780000 Fixed asset
299250 250972 430126
turnover Ratio 4.95 5.68 4.14
SOURCES: Annual Report (2007-2010)
INTERPRETATION: The Fixed Asset Turnover ratio shows a various trend. The ratio was 4.95 In the year 2007-08. It increased to 5.68 in the year 2008-09.In the year 2009-10 it decreased to 4.14. And in the year 2009-10 there is an decreased to4.14.
APPENDICES Balance Sheet as at March 31, (2007 to 2010) KSOU MANASAGANGOTRI MYSORE Page 76
Particulars Sources of Funds: Partner’s capital Loan liability Current liability and provision Profit and loss a\c GRAND TOTAL Application of Funds: Fixed Assets SUB TOTAL(2) Current Assets, Loans & Advances Inventories Sundry Debtors Cash & Bank Balances Loans& Advances A+B+C+D:(sub total(70) GRANDTOTAL(2+4) Current Liabilities provision Current assets loans advances Working capital 70 71 70-A 70-B 70-C 70-D 68 64 66 71
2009-10
2008-09
2007-08
906920 190000 38090 0
701260 0 72860 0
657950 0 63100 0
1135010
774120
721050
430126 430126
250972 250972
299250 299250
306406 262900 13578 122000 704884
235600 153924 11624 122000 523148
132100 149000 18700
122000
421800
1135010
228090
774120
72860
721050
63100
704884
523148
421800 358700
476794
450288
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INTERPRETATION: Partner’s capital: partner’s capital has been increased year by year due to addition of profit to the partner’s capital. Loan liability: in the accounting year of (2009-10) the company has taken the term loan from the bank so it’s added to liability. Current liability: Current liability various from year to year due to various in credit purchase during the year compare to previous years Sundry Debtors: Debtors has been increased due to increase in credit sales during the year compare to previous years. Working capital: Working capital has kept increasing due to changes in the current asset and current liability compare to previous years.
SURYA METAL FINISHERS NO.P-12/1,PEENYA INDUSTRIAL ESTATE,BANGALORE-560058
ESTIMATED FINAL ACCOUNTS FOR THE PERIOD OF APRIL-MARCH2008
PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED 31-3-2008 PARTICULARS To Opening stock " Purchases AMOUNT 82,100 8,27,830 PARTICULARS By Sales (Coating,Labour) AMOUNT 14,80,900
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" Gross Profit Total To Rent " salary " Electricity " Water charges " Conveyance " Repair & Maintenance " Printing & Stationary " Rates & Taxes " In’t & Bank charges " Telephone " Depreciation " Vat " Net Profit (Before partners salary) TOTAL
7,02,170 1612100 1,44,000 159,000 7,600 4,520 4,300 3,200 6,760 2,000 730 7,310 51,750 8,600 3,48,300
By Closing Stock Total By gross profit B/d
1,32,100 1612100 702170
702170
TOTAL
702170
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SURYA METAL FINISHERS NO.P-12/1,PEENYA INDUSTRIAL ESTATE,BANGALORE-560058
ESTIMATED FINAL ACCOUNTS FOR THE PERIOD OF APRIL-MARCH2008
BALANCE SHEET AS ON LIABILITIES Partners Capital Add: Profit Drawings Sundry Creditors AMOUNT
31-3-2008 ASSETS AMOUNT
5,95,300 3,48,300 285,650 657,950
Fixed Assets Furniture & Fixture Les: Dep Machinery & 63,100 Equipments Less: Dep 49,950 2,83,050 18,000 1,800 3,33,000 16,200
Deposits K.S.T Rent S. Debtors Closing Stock Cash & Bank Balance 2,000 1,20,000 1,22,000 1,49,000 1,32,100 18,700
Total
7,21,050
Total
7,21,050
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SURYA METAL FINISHERS NO.P-12/1,PEENYA INDUSTRIAL ESTATE,BANGALORE-560058
ESTIMATED FINAL ACCOUNTS FOR THE PERIOD OF APRIL-MARCH2009
PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED 31-3-2009 PARTICULARS To Opening stock " Purchases " Gross Profit Total To Rent " salary " Electricity " Water charges " Conveyance " Repair & Maintenance " Printing & Stationary " Rates & Taxes " Int & Bank charges " Telephone " Depreciation " Vat " Net Profit (Before partners salary) TOTAL 6,21,323 TOTAL 6,21,323 AMOUNT 85,300 9,54,277 6,21,323 16,60,900 1,26,600 1,48,200 3,800 2,365 10,360 7,200 6,660 2,000 8,623 5,660 44,078 20,667 2,35,110 By gross profit B/d PARTICULARS By Sales (Coating,Labour) By Closing Stock Total 2,35,600 16,60,900 6,21,323 AMOUNT 14,25,300
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SURYA METAL
FINISHERS
NO.P-12/1,PEENYA INDUSTRIAL ESTATE,BANGALORE-560058
FINAL ACCOUNTS FOR THE PERIOD OF APRIL-MARCH2009
BALANCE SHEET AS ON LIABILITIES Partners Capital Add: Profit Drawings Sundry Creditors AMOUNT
31-3-2009 ASSETS AMOUNT
657950 2,35,110 191,800 07,01,260
Fixed Assets Furniture & Fixture Les: Dep Machinery & 72,860 Equipments Less: Dep 42,458 2,36,392 16,200 1,620 2,78,872 14,580
Deposits K.S.T Rent S. Debtors Closing Stock Cash At Bank Cash on hand Total 7,74,120 Total 2,000 1,20,000 1,22,000 1,53,924 2,35,600 7,424 4,200 7,74,120
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ESTIMATED FINAL ACCOUNTS FOR THE PERIOD OF APRIL-MARCH2010
PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED 31-3-2010 PARTICULARS To Opening stock " Purchases " Gross Profit Total To Rent " salary " Electricity " Water charges " Conveyance " Repair & Maintenance " Printing & Stationary " Rates & Taxes " Int & Bank charges " Telephone " Depreciation " Vat " Net Profit (Before partners salary) TOTAL AMOUNT 2,35,600 10,16,330 07,90,970 20,42,900 1,38,000 1,63,100 4,300 3,100 3,860 8,763 12,065 2,000 22,090 6,065 75,046 46,916 3,05,660 PARTICULARS By Sales (Coating,Labour) By Closing Stock Total By gross profit B/d AMOUNT 17,80,000
2,62,900 20,42,900 07,90,970
7,90,970
TOTAL
7,90,970
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FINDINGS & SUGGESTIONS
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Findings:
The ratio of current assets to total assets has below the margin in all the years. This shows the dominance of fixed assets over current assets. The company is small scale industry but still they are not maintaining cost records, example (Row material cost, Cost of production per unit) etc. It is observed that it is maintaining low liquidity position. The liquidity position of the company is very low. The firm is not efficiently managing the cash. It has been found that the firm is not maintaining good funds in long-term sources which show a bad sign for the capital employed for the firm. The financing pattern of working capital shows that creditors showed an increasing trend until 2009. Thereafter there has been decreasing trend. Shortterm sources showed an increasing trend. Sundry Creditors came down compare to previous years due to repayment of current liabilities. The funds flow statements shows that working capital though shows a fall in 2008-09, there has been a gradual increase in working capital for the next year. There is a decrease in profit of the firm during the year2008-09, and increase in the profit of the firm in the year 2009-10 and hence the firm is in a good position showing good increase in the profits of the firm. The total assets turnover of the firm has been tremendously increasing in 2009-10 the years due to purchase of fixed assets during the year KSOU MANASAGANGOTRI MYSORE Page 85
Suggestions:
A high ratio of inventory turnover implies a good inventory, but still the company should control inventory, so as to reduce interest burden, unnecessary occupation of space, possible deterioration of material and so on. It is suggested that instead of going for stock piling techniques because of the cited reasons it may go for reserve policy techniques i.e., keeping required inputs to operate and meet any anticipatory demands. The firm has to control the cost of production, and there is no record of cost of production. The firm also can use ABC Analysis though it use funds flow, cash flow and ratio analysis as a tool for working capital management. The company is maintaining conservative policy. Moderate policy should be followed to maintain both liquidity and profitability. The firm is maintaining approximately 45-55% debtors in current assets. If at all there is any possibility, the company should try to reduce the debtors holding period to bridge gap between the excess and shortage of working capital. It is happening only because of more credit period given to the customers. Finance is the life blood of the company, so the company has to concentrate on the maintenance of the financial resources. From the analysis it can be suggested that the gross profit and net profit can be improved by increasing the sales of the company KSOU MANASAGANGOTRI MYSORE Page 86
The company should reduce the operating expenses by cost control and cost reduction in order to increase the net profit margin profit. Overall it can be concluded that the company’s current position is
satisfactory and in the long run the company can put more efforts to gain more
BIBILOGRAPHY
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BIBLIOGRAPHY: • M.Y khan & P.K Jain, Financial management ( Tata Mc Graw-Hill publishing company limited) • • • • Prasanna kumar, Project management M.P Pandikumar. Management accounting(Excel books, New Delhi) T.S. Reddy & Y Hariprasad reddy, Management accounting Margham publication S.N. Maheswari, Management accounting Sultan chand
WEBSITES: www.google.com.in www.scribd.com
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TITLE
TABLE OF CONTENTS CONTENTS
Introduction
Introduction Importance of the study Purpose of the Project Work Significance of the Project Work Objectives of the Study Sources of Data Scope of the Study Industrial Profile Company profile
A
Study
on
Project
Introduction Meaning of Project Formal Definition of Project Management PMBOK-Project Management Body Of Knowledge
Management
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Responsibility of a Project Manager Concepts Project Management Project management Life cycle Need for Project management Project Dimension’s Project Management Model Sources of Project management
Research Methodology
Introduction Purpose of the Project Work Significance of the Project Work Objectives of the Study Sources of Data Scope of the Study
Summary
Observations Recommendations Limitations
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ACKNOWLEDGEMENT It gives me an immense pleasure to express my deep sense of Gratitude to my internal guide Prof. Dr, Suresh.C.Hegadi for his enormous guidance and assistance. He has been my mentor and guide, his continuous encouragement and valuable suggestions helped me at every stage of this project. I would like to express my thanks to my Business partner Mr. Venkatesh .C, Surya Metal Finishers For supporting me to complete my project Finally, I would like to thank my family and friends for their Overwhelming Support and encouragement
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SRINATH NAVADA (Partner) Surya Metal Finishers
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CHAPTER-I - INTRODUCTION
• • • • Introduction About The Study Concept Of Project Management Industry Profile Company Profile CHAPTER-II – RESEARCH METHODOLOGY • • • • • Purpose of the Project Work Significance of the Project Work Objectives of the Study Sources of Data Scope of the Study
CHAPTER-III
CONCEPT OF PROJECT MANAGEMENT • • • • • • Introduction Responsibility of a Project Manager Concepts Project Management Project management Life cycle Need for Project management Project Dimension’s
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•
Project Management Model
CHAPTER-IV - DATA ANALYSIS
• • • • • Current ratio Net profit ratio Sales position Common size income statement Comparative Balance Sheet CHAPTER- V – FINDINGS & SUGGESTIONS SUMMARY • • Findings Suggestions
Bibliography Acknowledgement
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INTRODUCTIO N
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The topic taken for the study is “A study on Financial Performance Analysis at Surya Metal Finishers. Bangalore The information in order to analyze the data is taken from the previous Year. The objective of the study is to analyze the profitability of the company and to analyze the ratios of the company. Identify whether the company have growth potential and sound financial basic, to analyze the trend percentage. The study used is analytical in nature. The data needed for the present study have been collected through the secondary data. The researcher as part of curriculum has conducted a study to find out to financial performance of the company. The required data is collected from the budgeted formats, Flash results and Five- year annual diary of the company. The data has been collected for a period of five years from 2007-08 to 200910. In this study an attempt has been made to analyze the financial performance of SURYA METAL FINISHERS. to interpret its results by using the various tools of financial statement analysis namely: • • • • • Sales position Current, Gross profit, Net Profit Ratio analysis Common size Income Statement. Comparative Balance Sheet Analysis. Trend percentage. The cash balance level of the company when compared to current liabilities is to minimum and the management may improve the cash balance to an optimum level to meet the contingencies. KSOU MANASAGANGOTRI MYSORE Page 4
INTRODUCTION ABOUT THE STUDY Finance may be defined as that administrative area or set of administrative functions in an organization which relate with the arrangement of cash and credit so that the organization may have the means to carry out its objective as satisfactorily as possible”. The main activities to the successful administration of finance in any organization comprise financial planning, raising the needed funds, financial analysis and control. Analysis of financial statement in a business deserves much attention in carrying out finance function. It helps to regains prospective analysis of operative period for the purpose of evaluating the wisdom and efficiency of financial planning. Analysis of what has happened should be of great value in improving the standards, techniques and procedures of financial control involved in carrying out finance function.
FINANCIAL MANAGEMENT Financial management is broadly concerned with the procurement and effective utilization of funds by a business firm. Financial management emerged as a distinct field of study at the turn of this century. Its evolution may be divided into two broad phases. The Traditional Phase and Modern Phase Finance theory, in general resist on the premise that the goal of the firm to its equity shareholders. This means that the goal of the firm should be to maximize of market value of its equity shares the goals of KSOU MANASAGANGOTRI MYSORE Page 5
maximization of shared as wealth, expressing the shareholders point of view, several alternatives have been suggested, maximization of earning per share, maximization of returns on equity etc., maximization of profit is not as inclusive goal as maximization of shareholders wealth. It suffers from several limitations like profit is obscure term’s not a proper guide to decision making. It should be expressed either on a per share basis or in relation to investment etc.
DEFINITION According to Solomon, financial management is concerned with the efficient use of an important economic resource, namely, capital funds.
According to Philippauts, “Financial Management is concerned with the management decisions the result in the acquisitions and financing of long term and short term credits for the firm. As such it deals with the situations that require selection of an specific assets as well as the problem of size and growth of an enterprise. The analysis of this decision is based on the expected inflows and outflows of funds and their effects upon managerial objective
FINANCIAL PERFORMANCE ANALYSIS The financial statement provides the basic data for financial performance analysis. Basic limitation of the traditional financial statement comprising the balance sheet and the profit and loss account is that they do not give all the information regarding the financial operations of a firm. Nevertheless, they provide some useful KSOU MANASAGANGOTRI MYSORE Page 6
information to the extent the balance sheet mirrors the financial position on a particular date in terms of the structure of assets, liabilities and owners equity, and so on. The profit and loss account shows the results of operations during a certain period of time in terms of the revenues obtained and the incurred during the year. Thus, the financial statements provide a summarized view of the financial position and operations of a firm. Therefore, much can be learnt about a firm from a careful examination of its financial statements as invaluable documents / performance reports. The analysis of financial statements is, thus, an important aid to financial analysis.
The focus of financial analysis is on key figures in the financial statements and the significant relationship that exists between them. The analysis of financial statements is a process of evaluating relationship between component parts of financial statements to obtain a better understanding of the firm’s position and performance. The first task of financial analyst is to select the information relevant to the decision under consideration from the total information contained in the financial statement. The second step involved in financial analysis is to arrange the information in a way to highlight significant relationships. The final step is interpretation and drawing of inferences and conclusions. In brief, financial analysis is the process of selection, relation, and evaluation.
RATIO ANALYSIS The ratio analysis is one of the most powerful tools of financial analysis. It is the process of establishing and interpreting various ratios. A financial ratio is the relationship between two accounting figures expressed mathematically. Ratios provide clues to the financial position of a concern. These are the pointers and indicators of financial strength,
KSOU MANASAGANGOTRI MYSORE Page 7
soundness, position or weakness of an enterprise. One can draw conclusions about the exact financial positions of a concern with the help of ratios. Ratio analysis is a process of comparison of one figure against another, which make a ratio, and the appraisal of the ratios to make proper analysis about the strengths and weaknesses of the company’s operations. Ratio analysis is extremely helpful in providing valuable insight into a company’s financial picture 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 and at the end of a period and these changes can help in forming an opinion about the progress of an enterprise.
Balance sheets as on two or more different dates are used for comparing the assets, liabilities and the net worth of the company. Comparative balance sheet analysis is useful for studying the trends of an undertaking.
Advantages • • • Comparative statements help the analyst to evaluate the performance of the company. Comparative statements can also be used to compare the performance of the firm with The average performance of the industry between different years.
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• •
It helps in identification of the weaknesses of the firm and remedial measures can be done meritly. Taken accordingly.
COMPARATIVE INCOME STATEMENTS The income statement discloses net profit and net loss on account of operations. A comparative Income Statements will show the absolute figures for two or more periods, the absolute change from one period to another and if desired the change in terms of percentages.
COMMON SIZE FINANCIAL STATEMENTS Common size financial statements are those in which figures reported are converted into percentages to some common base. In the income statement the sale figure is assumed to be low and all figures are expressed as a percentage of sales. Similarly in the balance sheet the total of assets or liabilities is taken as 100 and all the figures are expressed as percentages of this total. NATURE OF FINANCIAL STATEMENTS According to the American Institute of Certified Public Accountancy Financial Statements reflect a combination of recorded in the financial are not depicted in the financial statements, however material they might be, for example, fixed assets are shown at cost irrespective of their market or replacement price since such price is not recorded in the books.
LIMITATIONS OF FINANCIAL STATEMENT KSOU MANASAGANGOTRI MYSORE Page 9
Financial statements are prepared with the object of presenting a periodical review or report on the progress by the management and deal with the 1) Status of the investments in the business and 2) Results achieved during the period under the review.
CONCEPT OF PROJECT MANAGEMENT
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A formal definition Of Project management
A project is a temporary sequence of unique, complex, and connected activities having one goal or purpose and that must be completed by a specific time, within budget, and according to specification.
Effective Project Management by Wysocki, Beck, and Crane.
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So, what is a project?
Temporary
Unique
Does not necessarily mean “short duration” Have a definite beginning Ends with a measurable outcome Objectives have been achieved Becomes clear the objective cannot/will not be met Need no longer exists The project is terminated Something that has not been done before Repeating elements do not change the fundamental uniqueness of project work
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What is project management?
Project management is the process of
defining the extent (scoping), planning, staffing, organizing, directing, and controlling The development of an acceptable system at a minimum cost within a specified time frame
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Why is it so complicated?
Project management originated in engineering Base of knowledge emphasizes largescale projects PM emphasis tends to be on things and procedure, not people and process PM for IT issues are different than “classic” PM
Building a bridge vs. building a LMS system Designing Hoover Dam, Space Shuttle
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PMBOK
• PMBOK
– Project Management Body of Knowledge – Theoretical Framework – Knowledge Areas
• Context • Processes
Integration Time Quality Communications
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Scope Cost Human Resources Risk
Page 15
Procurement
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What is the project manager responsible for?
Knowledge Communications Documentation Quality control Development
Staff Working practices About the organization Skills required for project Up, down, across organization
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Project dimensions
Budget
Schedule
Quality
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If we change one…
Schedule Budget
Quality
You automatically change the others
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The “formal” project life Cycle
Define (initiation) Plan Execute
These are the most Frequently overlooked phases in Most projects
Leading, team building, motivating
Control Close
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Project management model
Define Plan
Clarification, definition Specification Content, design, construction, testing, launch Maintenance, evaluation
Coordinate and control Close
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INDUSTRY PROFILE
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ELECTROPLATING Electroplating has, over recent decades, evolved from an art to an exact science. This development is seen as responsible for the ever-increasing number and widening types of applications of this branch of practical science and engineering. Some of the technological areas in which means and methods of electroplating constitute an essential component are all aspects of electronics: macro and micro, optics, opto-electronics, and sensors of most types, to name only a few. In addition a number of key industries such as the automobile industry (that uses for example chrome plating to enhance the corrosion resistance of metal parts) adopt the methods even where other methods, such as evaporation, sputtering, chemical vapor deposition (CVD) and the like are an option. That is so for reasons of economy and convenience. By way of illustration it should be noted that that modern electroplating equips the practitioner with the ability to pre-design the properties of surfaces and in the case of electroforming those of the whole part. Furthermore, the ability to deposit very thin multilayer’s (less than a millionth of a cm) via electroplating represents yet a new avenue of producing new materials. Schematics of an electrolytic cell for plating metal "M" from a solution of the metal salt "MA". Electroplating is often also called "electrodeposition", and the two terms are used interchangeably. As a matter of fact, "electroplating" can be considered to occur by the process of electrodeposition. Electrodeposition is the process of producing a coating, usually metallic, on a surface by the action of electric current. The deposition of a metallic coating onto an object is achieved by putting a negative charge on the object to be coated and immersing it into a solution which contains a salt of the metal to be deposited (in other words, the object to be plated is made the cathode of an electrolytic cell). The metallic ions of the salt carry a positive charge and are thus attracted to the object. When they reach the negatively charged object (that is to be electroplated), it provides electrons to reduce the positively charged ions to metallic form. Figure 1 is a schematic presentation of an electrolytic cell for electroplating a metal "M" from an aqueous (water) solution of metal salt "MA". To further illustrate the foregoing, let us assume that one has an object made of one of the common metals, like copper, and that it has been properly pre-cleaned. We should want to plate it with, say, nickel. A wire will have to be attached to the object while the other end of the wire should be attached to the negative pole of a battery (or a power supply). To the positive pole of the battery (or power supply) we connect another wire with its other end connected to a rod made of nickel. Next we fill the cell with a solution of the metal salt to be plated. It is possible to use a molten salt and in some not so common cases, such as the deposition of tungsten, that is what is done. In most, more common, cases though the salt is simply dissolved in KSOU MANASAGANGOTRI MYSORE Page 23
water. In our present example the nickel chloride salt dissociates in water to positively charged nickel cat ions and negatively charged chloride anions. As the object to be plated is negatively charged it attracts the positively charged nickel cat ions, and electrons flow from the object to the cat ions to neutralize them (to reduce them) to metallic form. Meanwhile the negatively charged chloride anions are attracted to the positively charged nickel rod (known as the anode of the electrolytic cell). At the anode electrons are removed from the nickel metal, oxidizing it to the nickel cat ions. Thus we see that the nickel dissolves as ions into the solution. That is how replacement nickel is supplied to the solution for that which has been plated out and one retains a solution of nickel chloride in the cell. Nickel chloride is used here to exemplify the process of electroplating for a number of reasons. First among those is simplicity. It is not recommended, however, that nickel be used for, say, school science demonstrations because some individuals are quite allergic to it. We further do not recommend that chloride salts be used because those are amenable to release chlorine gas. For school or amateur type demonstration we recommend plating copper coins with zinc or nickel coins with copper. 1.2 Growth of Electroplating in India 1.2.1 Brief History & Present Scenario Electroplating has a long history in India; like many industrial activities, it gained Momentum after Independence. Modern day electroplating started in early sixties in Mumbai with dull Nickel. Bright Nickel followed soon after. Although official figures are not available, estimates (ref: 5) indicate that in 1970, electroplating industry was considered to be in the tune of Rs. 100 million. Since then, the industry has grown steadily without facing any recession. In 1976, the first semi-automatic plant was set up in Mumbai. Currently there are more than 600 automatic plants in the country. During the Period 1970-85, the import restriction regulation in force led to high growth of this Industry. It is estimated that electroplating industry is now worth Rs. I000 crores (Rs.10, 000 million; see Fig 1.1). This means that compounded average annual growth rate is about 16.6%. The sector employs about 1, 30,000 people in approximately 12,000 organized units. No statistics is available for unorganized 'units.1.2.2 Types and Location of Units The Industry is widely spread out across the country. While there are primarily two Varieties- (I) Primary User and Original Equipment (OE) manufacturer, who do, Electroplating as one of their overall manufacturing activity and (ii) Job work units, who do only plating for a large variety of components for both domestic and export purpose. Certain states have large number of units concentrated in some towns / cities, such as
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Andhra Pradesh -- Hyderabad Delhi Gujarat- Ahmedabad Haryana- Faridabad Karnataka- Bangalore Maharashtra - Mumbai, Pune, Nashik Punjab - Ludhiana Tamil Nadu - Chennai, Madurai Uttar Pradesh - NOIDA It is difficult to find out the distribution of production between the organized and small Scale / tiny / unorganized sector. However, judging by the consumption of chemicals and Additives, it is estimated that about 18,000 tons are consumed by organized sector, while Tiny and unorganized sector consumes about 10,000 tons. Therefore, approximately 36 % of the industry is contributed by the unorganized sector.
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REVIEW OF LITRATURE
History of electroplating
Before continuing with more detailed discussion of the subject at hand, a brief history of electroplating will be presented. The early history of electroplating may be traced back to around 1800. A university professor, or in modern terms: a chemist, Luigi Brugnatelli is considered as the first person to apply electrodeposition process to electroplate gold. Brugnatelli was a friend of Allisandro Volta (after whom the electric unit "volt" has been named) who had just a short time before discovered the chemical principles that would make possible the development of "voltaic" electrical cells. Volta's first actual demonstration of that was called "Voltaic Pile". As a consequence of this development, Brugnatelli's early work using voltaic electricity enabled him to experiment with various plating solutions. By 1805 he had refined his process enough to plate a fine layer of gold over large silver metal objects. He wrote in a letter to the Belgian Journal of Physics and Chemistry (later reprinted in Britain), which reads:
"I have lately gilt in a complete manner two large silver medals, by bringing them into communication by means of a steel wire, with a negative pole of a voltaic pile, and keeping them one after the other immersed in ammoniate of gold newly made and well saturated". KSOU MANASAGANGOTRI MYSORE Page 26
Unfortunately for Brugnatelli, a disagreement or falling out with the French Academy of Sciences, the leading scientific body of Europe at the time, prevented Brugnatelli's work from being published in the scientific journals of his day. His work remained largely unknown outside of his native Italy except for a small group of associates. By 1839, however, scientist in Britain as well as in Russia had independently devised metal deposition processes similar to those of Brugnatelli's for copper electroplating of printing press plates. By 1840, this discovery was adapted and refined by Henry and George Elkington of Birmingham, England for gold and silver plating. Collaborating with their partner John Wright and using Formulae developed by the latter for potassium cyanide plating baths, the Elkingtons were able to have the first viable patents for gold and silver electroplating issued on their name. From Great Britain the electroplating process For gold and silver quickly spread throughout the rest of Europe and later to the United States. With the burgeoning knowledge and understanding of the subject of electrochemistry and its importance in understanding the processes of "electrodeposition" came the ability to deposit other metals. By the 1850's electroplating methods of bright nickel, brass, tin, and zinc were commercialized and were applied for engineering and specific commercial purposes. In time, the industrial age and financial capital had expanded from Great Britain to the rest of the world. As a result, electrodeposition processes were expanding in scope and found more and more usage in the production of a variety of goods and services. While this expansion was taking place, no significant scientific discoveries were made until the emergence of the electronic industry in the mid forties of the last century. The only exceptions to this were improvements made to direct current power supplies which were/are used instead of batteries. Thus it is said that the years from 1870 to 1940 were a quiet period as far as electroplating was concerned, significant only in gradual improvement in larger scale manufacturing processes, anodic and cathodic reaction principles and plating bath formulae. During the later years of the forties, rediscovery of heavy gold plating for electronic components took place. In comparison to that, during the mid to later fifties the usage of new and more "user friendly" plating baths based on acid formulae (rather than strongly poisonous cyanide based ones) were developed and introduced for large scale commercial use. In closing this brief historic summary one is to note that today a number of regulatory laws (enacted mainly in the nineteen-seventies), for instance concerning waste water emission and waste disposal, set the tone/direction for the electrodeposition/electroplating industry for the next thirty years. Today, with the impressive progress and deeper understanding of the underlying electrochemical principles of electrodeposition, sophisticated plating baths formulae KSOU MANASAGANGOTRI MYSORE Page 27
have been developed and are being routinely employed. Those provide much greater control over the working characteristics of the deposition process than hitherto. Layer thickness, performance of electroplated finishes is among the attributes that have been brought under strict control. New developments enable greater plating speed, better throwing power (the ability of a plating solution to produce a relatively uniform distribution of metal upon a cathode of irregular shape), as well as reliable plated finishes. In addition, electroplating of materials such as platinum, osmium, and ruthenium are now broadly used in electronics for connectors, circuit boards, contacts etc. The writer believes that new and innovative electroplating technology will facilitate the rapid expansion of the telecommunication industry. In general, the growth of the electronics industry as a whole, and the demand to support the expansion of its underlying infrastructure will continue to drive improvements worldwide in the electrodeposition/electroplating industry. To illustrate the possible directions of progress we mention the need for further refinement and control of dc power supplies. Such progress should lead to further achievements in the electroplating and metal finishing industry. Last, but certainly not least, safer manufacturing methods and processes including wastewater recycling should reduce work place exposure to dangerous chemicals and waste byproducts. There has been a recent upsurge of interest in electrodeposition. This is due to three main factors/technologies: Metal deposition for the fabrication of integrated circuits. Deposition of magnetic recording devices (heads, discs). Deposition of multilayer structures. By way of illustration we mention here that electrodeposition of copper for integrated circuit fabrication has been successfully used since 1997 for the production of interconnection lines down to less than 0.02 microns (micron = one millionth of a meter) width. Electrodeposition methods represent a very attractive alternative to the hitherto conventional fabrication methods. Surface preparation It is commonly accepted and often quoted by electroplaters that one can make a poor coating perform with excellent pretreatment, but one cannot make an excellent coating perform with poor pretreatment. Surface pretreatment by chemical and/or mechanical means is important not only in the case of preparations for electroplating but is also required in preparation for painting. In either of these, methods are designed to ensure good adhesion of the coating or paint to the surface. Most (metal) surface treatment and plating operations have three basic steps. Surface cleaning or preparation. Usually this includes employing of solvents, alkaline cleaners, acid cleaners, abrasive materials and/or water. Surface modification. That includes change in surface attributes, such as application of (metal) layer(s) and/or hardening. KSOU MANASAGANGOTRI MYSORE Page 28
Rinsing or other work-piece finishing operations to produce/obtain the final product. Surface cleaning or preparation will be discussed in more detail. Success of electroplating or surface conversion depends on removing contaminants and films from the substrate. Organic and nonmetallic films interfere with bonding by causing poor adhesion and even preventing deposition. The surface contamination can be extrinsic, comprised of organic debris and mineral dust from the environment or preceding processes. It can also be intrinsic, one example being a native oxide layer. Cleaning methods are designed to minimize substrate damage while removing the film or debris. If a (metal) surface's chemistry and processing history are known one can anticipate cleaning needs and methods. In practice, extrinsic organic and inorganic soils originate with processing of the substrate before plating, as well as from the environment. Specific residues include lubricants, phosphate coating, quenching oils, and rust proofing oils, drawing compounds, and stamping lubricants. In short, the mixture of potential contaminants to which a part is exposed is typically complex. Again in case of a metal substrate it must be remembered that all metals form oxide and inorganic films to a degree with environmental gases and chemicals. Some of these are protective against continuing attack such as the aluminum oxide formed on aluminum alloys (see also anodizing). That phenomenon is the reason of the usefulness of aluminum siding on some homes. On the other hand, some are nonprotective, such as iron oxide on steel. Some of these films can even be plated directly with nickel over aluminum oxide over aluminum being an example. The cleaning and activation steps must account for the fact that surface oxide re-forms at different rates on different metals. Specifically, in case of iron or nickel the oxide re-forms slowly enough that the part can be transferred from a cleaning solution to a plating bath at a normal rate. In case of aluminum or magnesium the oxide re-forms very fast such that special processing steps are required to preserve the metal surface while it is being transferred to electroplating. Cleaning processes are based on two approaches. In physical cleaning, mechanical energy is introduced to release, both extrinsic and intrinsic contaminants from the (metal) surface. Examples are ultrasonic agitation and brush abrasion. In chemical cleaning contaminant films are removed by active materials, dissolved or emulsified in the cleaning solution. Extrinsic contaminants are removed with surface-active chemicals while the chemical energies involved are modest. Intrinsic films are removed with aggressive chemicals that dissolve the contaminant and often react with the surface (metal) itself. The energy involved in surface preparation is substantial. Deposition By now it should be evident that electrodeposition or electroplating should be defined as the process in which the deposit of a (usually) thin layer (of metal) is formed "electrolyticly" upon a substrate (that is often, but not always, also a metal). The purpose of such process may be to enhance or change the substrate's appearance and/or attributes (such as corrosion resistance). Examples are the KSOU MANASAGANGOTRI MYSORE Page 29
deposition of gold or silver on jewelry and utensils, and the deposition of chrome on automobile parts. Electroplating is performed in a liquid solution called an electrolyte, otherwise referred to as the "plating bath". The bath is a specially designed chemical solution that contains the desired metal (such as gold, copper, or nickel) dissolved in a form of submicroscopic metallic particles (positively charged ions). In addition, various substances (additives) are introduced in the bath to obtain smooth and bright deposits. The object that is to be plated is submerged into the electrolyte (plating bath). Placed usually at the center of the bath, the object that is to be plated acts as a negatively charged cathode. The positively charged anode(s) completes the electric circuit; those may be at opposite edges of the plating tank, thus causing film deposit on both sides of the cathode. A power source in the form of a battery or rectifier (which converts ac electricity to regulated low voltage dc current) is providing the necessary current. This type of circuit arrangement directs electrons (negative charge carriers) into a path from the power supply (rectifier) to the cathode (the object to be plated). Now, in the bath the electric current is carried largely by the positively charged ions from the anode(s) toward the negatively charged cathode. This movement makes the metal ions in the bath to migrate toward extra electrons that are located at or near the cathode's surface outer layer. Finally, by way of electrolysis the metal ions are removed from the solution and are deposited on the surface of the object as a thin layer. It is this process to which we refer as "electrodeposition". For a more technical discussion of some aspects of the process see the Appendix. From the above it would appear that the thickness of the electroplated layer on the substrate is determined by the time duration of the plating. In other words, the longer time the object remains in the operating plating bath the thicker the resulting electroplated layer will be. Typically, layer thicknesses may vary from 0.1 to 30 microns (micron = one millionth of a meter), though nothing prevents the deposition of thicker or thinner layers, as desired. The geometric shape and contour of an object to be plated affects the thickness of the deposited layer. In general, objects with sharp corners and features will tend to have thicker deposits on the outside corners and thinner ones in the recessed areas. The cause of this difference in the resulting layer thicknesses is that dc current flows more densely to sharp edges than to the less accessible recessed areas, in other words, the current distribution is not uniform. (Another, more accurate, explanation of this phenomenon involves the geometry of the electric field lines that exist between cathode and anode in the solution). In practice, an item such as, say, a watch or similar item with sharp faceted corners are difficult (almost impossible, actually) to plate uniformly. A plating method known as "electro less plating", this is outside the scope of this.
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Article, assures uniformity of plated thickness even on highly irregular shaped objects. In the case of electroplating, judicial placement of the anode(s) as well as modifications of the current density are required to overcome the thickness irregularity effects. Electroplating processes will not, as a rule, conceal preexisting surface imperfections such as scratches, dents or pits. Actually, the plating process will more often than not, make most surface blemishes even more pronounced. Thus it is important to remove any undesirable surface marks prior to the plating action. Typical voltammogram for a single-metal deposition (current and potential are plotted on arbitrary scales; cathodic current is negative by international convention, absolute value is plotted for sake of simplicity). Now, the electrochemical processes which occur in the deposition of a single metal has been known and utilized empirically for more than a century. In this case, it is not particularly necessary to examine the details of the mechanism and all the different (and numerous) parameters that would affect the process (and are outside the scope of this article). However, when attempting to reduce two or more different metals from a single solution, it is essential that the processes occurring at the cathode be considered. The most effective tool for analyzing the processes is a voltammogram, a graph of current against electrode potential (Figure 2). Such a curve provides all the information necessary to select the appropriate potential for the reduction of a desired metal, individually, without the necessity of rigorously analyzing all the interactions involved. Thus, for instance, if one considered two metals "A" and "B" with metal "A" being less noble (that is, with a more negative standard potential) than "B", the Volta metric curve for either one would resemble that shown in Figure 2. For the purpose of selective deposition the important distinction between the two metals is the onset of the reduction peaks in the voltammograms and their separation. Specifically, if the two peaks are clearly separated, one can reduce only metal "B" at some potential, while both can be reduced at a more negative potential. At the more negative potential the ratio between the amount of each metal deposited and so present in the alloy formed, is determined primarily by their relative concentrations in the solution. On the other hand, if the two Volta metric peaks overlap considerably, only an alloy can be deposited. Another note of caution: one should not increase the cathodic potential (and current) too far to avoid parasitic reactions that may occur beyond "over-potential reactions" in Figure 2. In cases of practical applications be it electro refining, electro winning, or plating the practitioner is interested only in the weight of metal deposited on the cathode. Any current causing other changes is considered "wasted". Of course, according to Faraday's law the overall amount of chemical change produced by any given quantity of electricity can be exactly accounted for. KSOU MANASAGANGOTRI MYSORE Page 31
Thus we define the current efficiency as the ratio between the actual amounts of metal deposited to that expected theoretically from Faraday's law. In other words, the ratio of the weight of metal actually deposited to the weight that would have resulted if all the current had been used for depositing is called the cathode efficiency, and it is desirable to keep it as close to 100% as possible. Schematics of a plating setup for the production of super lattice multilayer’s. The possibility of plating two metals from the same solution at different potentials, as discussed above, permits the creation of complex structures with relatively simple processes. Figure 3 depicts the schematics of a practical electrodeposition cell for the production of super-lattice multilayer’s. In this case, the deposition is carried out using a computer controlled potentiostat that controls the potential of the piece to be coated (the cathode) against the reference electrode. A pulse train shaped potential is enforced, resulting in the multilayer deposition. If one considers a copper/nickel system, the potential difference between the two levels would be approximately half a volt, with pure copper being deposited at the more positive potential and an alloy at the more negative potential. The thickness of the layers is controlled by the width of the pulses; very thin layers (less than a millionth of a cm) can be deposited in a few milliseconds (thousandth of a second) per layer. This way, multilayer’s of the two metals can be deposited using a single bath to produce magnetic/multilayer structures to be used in reading heads for computer hard discs. This example illustrates how complex and sophisticated the electrodeposition techniques may be. Appendix Electrodeposition or electrochemical deposition (of metals or alloys) involves the reduction of metal ions from aqueous, organic, or fused salt electrolytes. In its simplest form the reaction in aqueous medium at the cathode follows the equation [1] M+n + ne- ==> M With a corresponding anodic reaction. The anode material can either be the metal to be deposited (in this case the electrode reaction is electro dissolution that continuously supplies the metal ions) or the anode can be an inert material and the anodic reaction is oxygen evolution (in this case the plating solution is eventually depleted of metal ions). The deposition may, in principle, be accomplished via two different paths: An electrodeposition process in which electrons are provided by an external power supply. An electro less (autocatalytic) deposition process in which a reducing agent in solution is the electron source.
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The deposition reaction presented in Equation [1] is a reaction of charged particles at the interface between a solid (metal) electrode and a liquid solution. The two types of charged particles that can cross the interface are metal ions "M+n" and electrons "e-". The deposition reaction involves four types of issues. They are: Metal-solution interface as the locus of the deposition process. Kinetics and mechanism of the deposition process. Nucleation and growth process of the metal lattice (M lattice). Structure and properties of the deposits.
Discoveries Surrounding Electroplating
Several key inventions were in place before the discovery of electroplating, which played an essential role in how the electroplating process came about. In 1800, Alessandro Volta invented the voltaic pile, a row of voltaic cells that create an electric current, the first electric battery. The use of metal to transmit electricity is key in electrodeposition—it is unlikely that electroplating would have been discovered without Volta’s earlier work already in place. Relying on Volta’s voltaic pile as a main source of electricity, the Italian chemist Luigi Brugnatelli invented electroplating in 1805. His early attempts at electroplating evolved until he successfully plated a thin layer of gold onto silver. Despite the publication of his findings in the Belgian Journal of Physics and Chemistry, his research was not taken seriously due to Napoleon Bonaparte and the French Academy of Sciences. It wasn’t until similar research surfaced almost forty years later, that things began to change: in 1839 in Russia and Britain, processes that highly resembled Brugnatelli’s earlier work were used to electroplate copper printing plates. In Britain, around the same time, John Wright discovered that potassium cyanide could be used as an electrolyte solution during the electroplating process, and a brief year later British cousins George and Henry Elkington bought Wright’s patent and were issued several others for similar gold and silver electroplating processes. Eventually, the Elkingtons went on to experience widespread commercial success as they adapted their processes to plate silverware and manufacture decorative metal.
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Recent Electroplating Trends Although electroplating, as patented by the Elkingtons, spread quickly and successfully across Europe, the process remained relatively unchanged until the 1940s, when a surge in the electronics industry lead to the replacement of traditional cyanide solutions with safer acid baths, at least on the commercial level. The 1970s saw the development of safer water disposal regulations and continual hardware upgrades, which streamlined the process by enabling faster and more efficient electroplating. Today, new chemical developments make it possible to electroplate a wide range of materials, including platinum and osmium. The electronics industry continues to rely on electroplating for products such as connectors and circuit boards, and as the telecommunication industry expands, so does its dependence on the process. In addition, waste-water recycling and attempts to minimize work-place chemical exposure are helping ensure that electroplating continues to be safe regardless of chemical changes and ongoing developments.
INDUSTRIAL PROFILE OF ELECTROPLATING INDUSTRY
MAJOR PLAYER OF ELECTROPLATING INDUSTRY
Kuntz Electroplating Inc.
Company History
Our corporations’ humble beginning was on October 16th 1948 – the first day of production for Kuntz Electroplating Inc. The Company's founder, Oscar Kuntz, born on October 17, 1904,
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was a direct descendent of the Kuntz Family who owned and operated the famous Kuntz Brewery in Waterloo. After studying chemistry at both St. Mike's in Toronto, Ontario and at Fordham University in Detroit, Oscar Kuntz and his wife decided to return to Waterloo, Ontario with their family to start their own business. In 1947 Oscar purchased a building owned by Carr Brothers on Princess Street in Waterloo. Originally named Metal Finishers, Oscar started what is now Kuntz Electroplating Inc. with the assistance of his eldest son David. By 1951, the company grew to 48 employees. Due to the rapid growth of the Company, the plant relocated to Nyberg Street in Kitchener. The Nyberg Street location was expanded in both 1952 and 1956 to keep up with the growth of the company. Originally a 6,000 square foot plant in 1951, by 1956 it had doubled in size. In the late 1950's, Kuntz Electroplating had gained a reputation for its polishing and plating of household appliances, defense items including aircraft and radar work. In the late 1950's and early 1960's, Bob (Bobby) Kuntz brought fame to both the Company and to himself, as he was a star CFL running back and linebacker for both the Toronto Argonauts and Hamilton Tiger Cats. "Bobby Kuntz Day" brought 23,316 cheering Toronto fans to CNE Stadium on October 29, 1961 when Bob announced his retirement from the Argonauts. Bob later rejoined the CFL and helped the Tiger Cats win the Grey Cup in both 1963 and 1965. April 1961 was a sad month for the company, as one of the Company's founders, Dave Kuntz, passed away (Dave was the eldest son of Oscar Kuntz and elder
brother to Bob, Paul and Louie Kuntz. Jim Kuntz, still a loyal employee, is one of Dave's sons). At this time, Bob Kuntz was given the duties of managing the company. KSOU MANASAGANGOTRI MYSORE Page 35
In 1964, after increased production, plant expansion and employee growth, Kuntz Electroplating outgrew its location on Nyberg Street. A site was located on Wilson Avenue in Kitchener's new Industrial park. In 1965, Kuntz Electroplating moved to its' present location at 851 Wilson Avenue in Kitchener. The 20th Anniversary in 1968 was marked by adding 6,000 square feet to the plant. Known today as the "old Hoist Line", this addition "modernized the premises" and rearranged its production lines for one instead of three shifts. In addition, Kuntz leased a 5,000 square foot building (Polishing Plant #2) to the right of the main plant, to increase it's polishing capabilities. At this time, the Company employed approximately 100 employees and serviced customers from Windsor to Montreal in the appliance, automotive and aerospace industries. Sadly, just a couple years after this anniversary milestone the Company's Founder, Oscar Kuntz, passed away at the age of 68.
Due to continual demand for product, another Company Expansion occurred in 1973. This expansion included the addition of Maintenance, Lab, Quality Control, the Auto Lines and Shipping Departments. The Company now employed 150 employees and with this expansion, the plant space more than doubled to 52,000 square feet. In 1978, an addition was added to the existing Main Plant, which included the Hoist Aluminum Department and additional Office space. This increased the plant size to 75,000 square feet. In May of 1978, Kuntz Electroplating became a division of Magna International. This move broadened the automotive market for the company. In the fall of 1985, the Company saw the completion of the Waste Treatment facilities. This addition cost approximately $800,000 and added 7,500 square feet to the plant. In October of 1986, the Company completed the addition of the Hoist Steel, Hoist Phosphate and additional Shipping area to the back of the Main KSOU MANASAGANGOTRI MYSORE Page 36
Plant. This additional square footage of approximately 56,000 increased the plant to 150,000 square feet including warehouse space. During the Company's 40th Anniversary year, the company completed renovations to the Employees Main Lunchroom, Locker rooms, Boardroom, Lab, Quality Control and Office Facilities. At this time, Kuntz Electroplating employed 425 employees, and serviced over 125 customers in Southern Ontario, Michigan and into the mid-western United States. The highest output of products was for its copper/nickel chrome plating on both steel and aluminum bumpers. Zinc, phosphate and "specialty" finishes were produced as well. In May of 1989, Kuntz Electroplating acquired a sister company "Formulated Coatings of Brampton." Formulated Coatings had 90 employees, 120,000 square foot facility and was a world class "Cathodic E-Coating" facility. In the spring of 1990, after 12 productive years with Magna International, the Company felt it was in their best interest to discontinue its relationship with Magna and to go private once again. In May of 1991, at a time when many local companies had either closed down, left the country or had not recalled their people, Kuntz Electroplating was able to call back the 100 employees that had been temporarily laid off six months earlier. A major company decision was made to discontinue unprofitable lines in the company including barrel plating, zinc and our Auto 1, 3 and 4 Lines. The company instead would concentrate on the polishing and plating of bumpers, rims and automotive trim. Tremendous growth occurred from 1993 to 1996, with the Company hiring over 300 new employees bringing the total workforce to 675 employees -quite a growth from 50 years ago! Additions included our Recycling Department, where we recycle or reuse wood, gloves, cardboard, pop cans and numerous other goods; new offices for Shipping, Safety, and Supervisors at the rear of the main building; a new Cafeteria and locker rooms; a Health Centre. A Co-Generation Department was also added, allowing Kuntz Electroplating Inc. to supply its own power and harness steam (a natural bi-product) to heat the plating tanks. In 1997, a Company decision was made to plate additional aluminum wheels and therefore the Hoist Aluminum Department was expanded to accommodate this, along with the expansion of polishing Area 8. 150 polishers were added to staff to accommodate this new business.
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In 2000, Kuntz added a 5th co-generation engine which enabled the company to supply over 50% of its own power needs and be capable of running all critical production applications during emergency power outages. Other major projects were completed during the year including an expanded plating line (capable of both steel and aluminum substrates), a technologically advanced coating system for highSpeed wheel painting and an aggressive robotics program aimed at reducing costs and production efficiencies. In addition, a new high-tech water treatment facility was added with future expansion in mind. This new facility ensures Kuntz's commitment to a clean, safe environment is kept. In 2000, the Company employed over 1,000 people with over 750,000 square feet of production area. In 2004, Kuntz Electroplating Inc celebrated a new partnership with HarleyDavidson and Leggett & Platt (suppliers of the die cast aluminum components). A new state-of-the-art plating line launched that was designed and engineered specifically to meet Harley-Davidson's detailed standards for cosmetic nickel chrome finishing on its most popular engine. A result of two years of research, planning and construction, the new line uses sophisticated computer controlled, automated hoist systems, and is only the second of its kind in Canada. Advanced robotic polishing equipment was integrated into the new line, enabling an output of over 3 million parts annually for the American motorcycle company. This partnership with the fabled maker of motorcycles brings added prestige to Kuntz's portfolio of plated components. Today, the company continues to grow and deliver the highest quality polished and plated parts to the world’s most recognized manufacturers including Harley, GM, Toyota, Honda, BMW, Jaguar, Mercedes, Volvo, Nissan, Rolls-Royce, Bentley, and Freightliner to name just a few. The Company is now known throughout the world as the # 1 Finisher in the industry. With a dedicated workforce and a commitment "To be the best at what we do", Kuntz Electroplating is poised to remain #1 and to continue its phenomenal growth. Oscar would be proud!
Competitiveness
According to Michael Porter (1980) the state of competition in an Industry depends upon five basic competitive forces. KSOU MANASAGANGOTRI MYSORE Page 38
They are – Rivalry among existing firms Potential entrants – new entrants Buyers – bargaining power of buyers Suppliers- bargaining power of suppliers
• • • • An overview of what project management is The contexts of project management Project management model applied to small projects Why projects fail – ensuring project success
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COMPANY PROFILE
INTRODUCTION BACKGROUND AND INCEPTION M/s. Surya Metal Finishers is a Partnership Firm engaged in the business of Electro Plating like Zinc Plating, Copper Plating, Tin Plating, Phosphating, Blackening and allied activities.
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Since 2007 with over four years of Electroplating experience Surya Metal Finishers has pioneered the professional electro-platers movement in India. With continuous up gradation of technology, commitment to quality and constant innovation, Surya Metal has grown into a multi plating, multi facility, and multi technology company. S.M.F has set up impressive infrastructure and well service facilities in their 3 years of experience around the industry. 1. PARTNER’S PROFILE: C. Venkatesh Designation Age Qualification Experience Contact No. Email Id Designation Age Qualification Experience Contact No. Email Id : : : Managing Partner 38 years Diploma in Computer Science : 20 Years in Electroplating : 8050751510 : [email protected] : : : Partner 26 years B.Com, M.B.A : 05 Years in Electro plating : 09945236111 : [email protected]
Srinath R
2. LOCATION: The industry is located at #P-12/1, 3rd Stage, Peenya Industrial Estate, Bangalore – 560 058. The unit is having 1600 sq.ft space, 25 HP power and sufficient water facility. KSOU MANASAGANGOTRI MYSORE Page 41
NATURE OF BUSINESS CARRIED S.M.F offers well services from a wide spectrum of fields like Zinc plating, Tin plating, Copper plating, Phosphating, Chromium plating, Nickel plating, and all kinds of metal finishing on ms components. Expertise and skills in the company are used for effective work, continues Improvement in the quality and supply, quick solving the problems under the guidelines of the expert chemist. Communications has ensured that the services offered are state-of-the-art multinational companies in the field of electroplating like Zinc plating, Tin plating, Copper plating, Phosphating, Chromium plating, Nickel plating, and all kinds of metal finishing on ms components. S.M.F has been successfully increasing its contribution in the field of ELECTOPLATING, the most visible being the alkaline zinc plating process on M.S components. Other plating services include Tin plating, Copper plating, Phosphating, Chromium plating, Nickel plating. “Meeting and exceeding the expectations of customers” is the quality policy of S.M.F. In its march towards TQM, S.M.F has been helped b the spread of quality consciousness into every sphere and every activity. The passionate pursuit of excellence at SMF can be described in Four words: Quality, Technology, Better service and in time delivery.
VISION, MISSION, VALUES, OBJECTIVES STATEMENT OF THE COMPANY
VISION: To be a world-class enterprise in the field of professional electroplating. KSOU MANASAGANGOTRI MYSORE Page 42
MISSION: To be a customer focused globally competitive company in alkaline zinc plating and in other chosen areas of professional electroplating, through quality, technology and service.
VALUES Putting customers first Customer satisfaction Quick customer feed-back(Response) Working with transparency, honesty & integrity. Trusting and respecting individuals Fostering teamwork Striving to achieve high employee satisfaction Encouraging flexibility & better service Endeavoring to fulfill social responsibilities Proud of being a part of the organization
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OBJECTIVES To be a customer-focused company providing state-of-the-art services & solutions at competitive prices, meeting the demands of quality, delivery & service. To generate internal resources for profitable growth. To attain technological leadership in electroplating through in-house R&D, research laboratories & academic institutions. To give thrust to exports. To create a facilitating environment for people to realize their full potential through continuous learning & team work. To give value for money to customers & create wealth for partners. To constantly benchmark company’s performance with best in class internationally. To raise marketing abilities to global standards Effective and Efficient services and development process, considering the present and future needs of customers. Enhanced customer satisfaction by on-time delivery of defect free products and effective life cycle support. Continual up gradation and utilization of infrastructure and human resources. Mutually beneficial alliances with suppliers. Continual improvement of processes through innovation, technology and knowledge management.
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State-of-the-art design facility having in the areas •
1) 2) 3) • •
Proper cleaning facility Soak cleaning facility Anodic cleaning facility HCL pickling Well settled Laboratory with qualified chemist.
Passivation facility 1) Trivalent yellow passivation 2) Trivalent blue passivation 3) Top coat
• Drying facility 1) Hot water 2) Centrifugal Dryer 3) Hot air blowing system 4) Hot air oven (Thermostatic). • •
•
Inward/Outward perfect Inspection by specified person Chemicals Addition and Analysis We have the Lab facility for chemical Analysis and we follow our chemist Instructions and suggestions.
Testing Instruments
a) Temperature b) Density c) P.H
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Thermometer Hydrometer Digital P.H meter and P.H Paper
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d) Thickness
Thickness testing Digital Instrument by Kiran Electronics, Mumbai.
PRESENT CUSTOMERS:
We are grateful to inform you that we are doing satisfactory work for the fallowing companies. a) b) c) d) e) f) g) h) i) Nash Industries GCL India (p)Ltd Sobo Technologies Flexo Tech Products H.H.V Industries A.R.R Precision Works (p) Ltd HYDROLINES-INDIA Professional Engineers Swasthik Technologies
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RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
“Research methodology is a systematic procedure of collecting the information in order to analyze and verify phenomenon with the help of the data”. The research process includes various steps such as formulating research problems extensive literature survey, preparing the research design, collection of data & processing, testing & preparation of the report etc. This project work is an attempt to get acquainted with various facts of short-term finance management. This project work aims at encompassing project management practices that prevail in the organization upon which the study was undertaken.
This project work is an endeavor to note, absorb and imbibe the mode of the current assets management and style of the corporate sector. Far from the routine academic exercise, it is an opportunity to go through the practical management where adequacy at the needy hour is the touchstone for efficiency.
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Significance of the study Project management is the lifeblood of an organization. It is better to describe it as financial lubricant of the firm
Project management study thus looks in meeting the short-term obligation of the firm. The surface of the current assets in order to satisfy the demand of current liabilities shows the firm’s solidity in terms of solvency towards current obligations. It determines the level of short-term funds to set off short-term obligations and also focuses on the net concepts i.e., the difference between current assets and current liabilities. The more the difference, the more the liquidity of the firm.
The study enables us to find out the trade-off between profitability and liquidity of the firm. The study also considers the estimation of the requirement of working capital, the optimum way of funding of working capital and optimum utilization of current assets etc. Thus working project management study is an extensive and exhaustive research into various dimensions of short-term fund management. This study involves discovery of level of current assets, its mix and the total current asset quiver to ensure smooth operations and efficient performance of the firm.
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Objectives of the Study The main objectives of the study of Project Management in Surya Metal Finishers, Peenya, Bangalore are as follows:
To assess the financial position of the company To study the Project Management with reference to liquidity and solvency of the Company To study the profitability position of the company by analyzing the various factors influencing the profitability To assess the financial stability of the firm by analyzing the comparative financial statements. To study the trend percentage it’s helpful in making a comparative study of the financial statements of several years To give suggestions to the Company to improve its performance, if any
LIMITATIONS OF THE STUDY • • • • • • The study is mainly depends upon the secondary data. I.e. The Final report of the company for the period of five years only. The Financial data cannot be estimated accurate for the future period. The analysis & Interpretation of the concern is based on only past performance. It cannot be compared with those of other concern. Financial ratios itself will not completely show the entire company’s good or bad position. The information provided in the financial statements is not an end in itself as no meaningful conclusions can be drawn from these statements alone. KSOU MANASAGANGOTRI MYSORE Page 56
Sources of Data The data required for the project work is collected from the following sources for the period of 2007-08 to 2009-10. Manual and accounting records it also helps in bringing out of the various factors which a lead to down fall of the company performance. RESEARCH DESIGN The research design of this study is analytical in nature. Here the facts and information are already available in order to make analysis and interpretation. DATA COLLECTION METHOD The data needed for the present study had been collected through the secondary data.
Primary Data The primary data for this project is collected from personal interviews and discussions with executives and the officials of the Company
Secondary Data The secondary data those which have been already been collected by someone else and which have already been passed through analytical processes. In this study, the secondary data are collected through company annual reports The secondary data is collected from the following sources • • Annual Financial Reports of the Company The different accounting records of the company Page 57
KSOU MANASAGANGOTRI MYSORE
• • •
Internal Reports of the Company Statements of the company Text Books
Scope of the Study The contents of the total evaluation of current assets and current liabilities and their percentage contribution in the total turnover. The yearly increase or decrease of current assets or current liabilities in the budget of Surya Metal Finishers is being reviewed. From this one would be in a position to glance the performance of current assets and current liabilities of the Company.
This project greatly deals with the working Project Management of Surya Metal Finishers, and emphasizes on the yearly composition of Financial Statement and Financial position in the total turnover of the Company. This also deals with key ratios to obtain a clearer picture of different resources available and at the disposal of the organization, which will enable one to give appropriation suggestion to the Company to improve its performance, if any.
TOOLS USED FOR ANALYSIS • • • • Ratio Analysis. Common size Income Statement (2007-2010). Comparative Balance Sheet (2007-2010). Trend percentage.
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ANALYSIS AND INTERPRETATION
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ANALYSIS AND INTERPRETATION
Details of Current Assets Particulars
2007-08 2008-09 2009-10
Inventory
1321000
235600
262900
Sundry Debtors Cash & Bank Balance Loans & Advances
149000
153924
306406
18700
11624
13578
122000
122000
122000
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350000 300000 250000 200000 150000 100000 50000 0 2007-08 2008-09 2009-10 Inventories S undry Debtors C & Ba ash nk B nces ala
Chart showing Current assets Transaction Details
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Details of Current Liability
Particulars
2007-08
2008-09
2009-10
Sundry creditors Term Loan
63100
72860
58090
0
0
190000
In 2009 Company has taken Rs.250000 amount of Term Loan from the bank and made the repayment of certain amount, and the remaining amount has been mentioned in the balance sheet.
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200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 0
Sundry Creditors Term loan
2007-08 2008-09 2009-10
Chart showing Current Liability Transaction Details
Source (2007-2010) Annual Report
Current assets and Current liabilities are inevitable. Current ratio = Current asset _______________
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Current liabilities
Current ratio S. No 1 2 3 Year 2007 – 2008 2008 – 2009 2009 – 2010 Current asset
421800 524148 704884
Current Liabilities
63100 72860 248090
Current Ratio 6.68 7.19
2.84
Source Annual report (2007 – 2010)
8 7 6 5 4 3 2 1 0 Current Ratio
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SALES POSITION OF THE COMPANY FOR 3 YEARS
PARTICULARS SALES
2007-08 1480900
2008-09 1525300
2009-10 1780000
ANALYSIS The sales position of the company is increasing continuously from 2007-08 to 200910, this indicates the profit earning capacity of the company.
INTERPRETATION Sales are meant to make profit and also have direct relation with profit. If the company has good quality products the sales will increase which in turn increase the profit. According to the data the company sales has been increased and even profit margin. It doesn’t mean that when sales increases even company will get marginal profit according to the sales, it even depends upon the Expenses (Direct and Indirect) Occurred by the company. Source (2007-10) Annual Report
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The Chart is Indicating the Sales Position of the Company in the Accounting years
1800000 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0
SALES
2007-08
2008-09
2009-10
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GROSS PROFIT RATIO: It measures the relationship of the gross profit to net sales and is usually represented as a percentage. Gross Profit Ratio = Gross profit ___________ X 100
Net sales
Table no.3.1.1 Gross Profit Ratio S. No 1 2 3 Gross profit
702170 621323 790970
Gross Net sales
1480900 1425300 1780000
Year 2007 – 2008 2008 – 2009 2009 – 2010
Profit Ratio
47.41 43.59 44.44
SOURCES: Annual Report (2007-2010)
INTERPRETATION: KSOU MANASAGANGOTRI MYSORE Page 67
From the above table shows that the Gross Profit Ratio was high in the period 2007 – 2008 with 47.41 and then a small decrease in the next year to 43.59 and it had a increase in 2009-2010 to 44.44.It shows a fluctuating trend.
NET PROFIT RATIO: The net profit ratio is that expresses the relationship between net profit and sales. It is a measure of management’s efficiency in operating the business successfully from the owner’s point of view. Net Profit Ratio = Net profit ________ X 100 Net sales Net Profit Ratio S. No 1 2 3 Net sales
14809 00 14253 00 17800 00
Net profit Ratio
23.52 16.5 17.17
Year 2007 – 2008 2008 – 2009 2009 – 2010
Net profit
348300 235110 305660
SOURCES: Annual Report (2007-2010)
INTERPRETATION: KSOU MANASAGANGOTRI MYSORE Page 68
From the above table shows that the Net profit ratio for the year 2007-08 is 23.52. In the year 2008-09 it decreases to 16.5 and in the year 2007-08 it increased to 17.17. A high ratio is preferable as it indicates more profitability where as a low ratio indicates low profitability.
ANALYSIS OF COMMON SIZE INCOME STATEMENT Common size income statement (2007 - 2009)
2007-08 Particulars Income Net sales Total income Less- Expenditure Operating expenses Deprecation Interest Total expenditure Profit Total
1080120
Percentage
2008-09
Percentage
1480900 1480900
100 100
1425300
100
1425300
100
72.93 3.5 0.05 76.48 23.52 100
1137489 44078 8623 1190190 235110
79.81 3.09 0.60 83.5 16.5 100
51750 730 1132600 348300 1480900
1425300
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INTERPRETATION: From the above table shows common size income statement in the year 2007-08 profit is 23.52% and 2008-09 profit is decreased to 16.5% compared to previous year.
3.2.2 Common size income statement (2008 - 2010)
2008-09 Particulars Income Net sales Total income Less- Expenditure Operating expenses Deprecation Interest Total expenditure Profit Total
1137489 44078 8623 1425300
Percentage
2009-10
Percentage
100
1780000 1780000
100 100
1425300
100
79.81 3.09 0.60 83.5 16.5 100
1377204 75046 22090
77.37
4.22
1.24
1190190
235110
1474340
305660 1780000
82.83
17.17 100
1425300
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INTERPRETATION: From the above table shows common size income statement in the year 2008-09 profit is 16.5% and 2009-10 profit is increased to 17.17% compared previous year.
ANALYSIS COMPARATIVE BALANCE SHEET Comparative Balance Sheet (2008 - 2009)
Particulars APPLICATION OF FUNDS Fixed assets CURRENT ASSETS Inventories Sundry debtors Cash and bank balance Loans and advances TOTAL ASSETS LIABILITES Sources Of Funds
Partner’s Capital
2007-08
2008-09
Increase
Decrease
299250
250972
48278
132100 149000 18700 122000
235600 153924 11624 122000
103500 4924 7076 -
721050
774120
657950 0 0 63100
701260 0 0 72860
62650
Loan and liability Profit and loss account Current liabilities TOTAL LIABILITES
9760
721050
774120
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INTERPRETATION: Assets: The table shows that a total Assets has been increased by 6.86%. The current Liabilities have been increased by 13.4%. Fixed Assets-The table is clearly showing that fixed assets have been decreased because of Depreciation (Reducing the value of the asset).there is no Additional Purchase of machineries during the year. Stock – Stock have been increased because of Increase in Purchase of raw materials during the year (2008-09) Sundry Debtors- Debtors quietly increased in the year (2008-09) compare to previous year. Cash & Bank balance: It is required for day to day transaction of the company; there is not much difference compare to previous year. In S.S.I (Small Scale Industries) like Surya Metal Finishers the cash transaction will be more than cheque transactions. Loans and Advances- There is no changes in advances because it is an advance paid by the company to the Building owner of the company , the company has been stayed in the same place for the next 2 years , so there is no changes in advances. Liability: Partner’s Capital- partners capital have been increased in the year 2008-09 compare to 2007-08 because the profit of the company have been added to the partner’s capital. Current Liability – Current liability have been increased due increase in the credit purchase during the year compare to previous year. KSOU MANASAGANGOTRI MYSORE Page 72
ANALYSIS COMPARATIVE BALANCE SHEET Comparative Balance Sheet (2009 - 2010) Particulars APPLICATION OF FUNDS Fixed assets CURRENT ASSETS Inventories Sundry debtors Cash and bank balance Loans and advances TOTAL ASSETS LIABILITES Sources Of Funds
Partner’s Capital 701260 0 0 72860 906920 190000 0 38090 34770 205660 190000 235600 153924 11624 122000 262900 306406 13578 122000 27300 152482 1954 250972 430126 179154
2008-09
2009-10
Increase
Decrease
774120
1135010
Loan and liability Profit and loss account Current liabilities TOTAL LIABILITES
774120
1135010
INTERPRETATION: Assets: KSOU MANASAGANGOTRI MYSORE Page 73
The table shows that a total Assets has been increased by 31.8%. The current Liabilities have been decreased by 47.72%. Fixed Assets-The table is clearly showing that fixed assets have been increased because of Additional Purchase of machineries during the year Stock – Stock have been increased because of Increase in Purchase of raw materials during the year (2009-10) Sundry Debtors- Debtors highly increased in the year (2009-10) compare to previous year due to increase in credit sales during the year. Cash & Bank balance: It is required for day to day transaction of the company; there is not much difference compare to previous year. In S.S.I (Small Scale Industries) like Surya Metal Finishers the cash transaction will be more than cheque transactions. Loans and Advances- There is no changes in advances because it is an advance paid by the company to the Building owner of the company , the company has been stayed in the same place for the next 2 years , so there is no changes in advances. Liability: Partner’s Capital- partners capital have been increased in the year 2009-10 compare to 2008-09 because the profit of the company have been added to the partner’s capital. Current Liability – Current liability have been decreased due the payment made by the company during the against credit purchase during the year (Term loan sanctioned during the year) so it has been decreased compare to previous year.
RETURN ON TOTAL RESOURCES:
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This ratio is calculated to measure the profit after tax against the amount invested in total assets to ascertain whether assets are being utilized properly or not. It is calculated as under: Return on total assets = Net profit after tax ________________ X 100 Total assets Return on total resources
Return on Total S. No 1 2 3 Year Net Profit Total Assets Ratio 2007 – 08 2008 – 09 2009 – 10 348300 235110 305660 721050 774120 1135010 48.3 30.37 26.93 resources
SOURCES: Annual Report (2007-2010)
INTERPRETATION: From the above table shows that the return on total resources ratio for the year 200708 is 48.3.In the year 2008-09 it decreased to 30.37. In the year 2009-10 is 26.93 decreases in past 2 year.
FIXED ASSET TURNOVER RATIO: KSOU MANASAGANGOTRI MYSORE Page 75
The ratio indicates the extent to which the investment in fixed assets contributes towards sales. The standard or ideal fixed assets Turnover ratio is five times. The fixed assets turnover ratio is generally expressed as a rate. It can be calculated as follows: Fixed asset turnover ratio= Net sales ___________ Fixed assets Fixed asset turnover ratio S. No 1 2 3 Fixed assets Year 2007 – 2008 2008 – 2009 2009 – 2010 Net sales 1480900 1425300 1780000 Fixed asset
299250 250972 430126
turnover Ratio 4.95 5.68 4.14
SOURCES: Annual Report (2007-2010)
INTERPRETATION: The Fixed Asset Turnover ratio shows a various trend. The ratio was 4.95 In the year 2007-08. It increased to 5.68 in the year 2008-09.In the year 2009-10 it decreased to 4.14. And in the year 2009-10 there is an decreased to4.14.
APPENDICES Balance Sheet as at March 31, (2007 to 2010) KSOU MANASAGANGOTRI MYSORE Page 76
Particulars Sources of Funds: Partner’s capital Loan liability Current liability and provision Profit and loss a\c GRAND TOTAL Application of Funds: Fixed Assets SUB TOTAL(2) Current Assets, Loans & Advances Inventories Sundry Debtors Cash & Bank Balances Loans& Advances A+B+C+D:(sub total(70) GRANDTOTAL(2+4) Current Liabilities provision Current assets loans advances Working capital 70 71 70-A 70-B 70-C 70-D 68 64 66 71
2009-10
2008-09
2007-08
906920 190000 38090 0
701260 0 72860 0
657950 0 63100 0
1135010
774120
721050
430126 430126
250972 250972
299250 299250
306406 262900 13578 122000 704884
235600 153924 11624 122000 523148
132100 149000 18700
122000
421800
1135010
228090
774120
72860
721050
63100
704884
523148
421800 358700
476794
450288
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INTERPRETATION: Partner’s capital: partner’s capital has been increased year by year due to addition of profit to the partner’s capital. Loan liability: in the accounting year of (2009-10) the company has taken the term loan from the bank so it’s added to liability. Current liability: Current liability various from year to year due to various in credit purchase during the year compare to previous years Sundry Debtors: Debtors has been increased due to increase in credit sales during the year compare to previous years. Working capital: Working capital has kept increasing due to changes in the current asset and current liability compare to previous years.
SURYA METAL FINISHERS NO.P-12/1,PEENYA INDUSTRIAL ESTATE,BANGALORE-560058
ESTIMATED FINAL ACCOUNTS FOR THE PERIOD OF APRIL-MARCH2008
PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED 31-3-2008 PARTICULARS To Opening stock " Purchases AMOUNT 82,100 8,27,830 PARTICULARS By Sales (Coating,Labour) AMOUNT 14,80,900
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" Gross Profit Total To Rent " salary " Electricity " Water charges " Conveyance " Repair & Maintenance " Printing & Stationary " Rates & Taxes " In’t & Bank charges " Telephone " Depreciation " Vat " Net Profit (Before partners salary) TOTAL
7,02,170 1612100 1,44,000 159,000 7,600 4,520 4,300 3,200 6,760 2,000 730 7,310 51,750 8,600 3,48,300
By Closing Stock Total By gross profit B/d
1,32,100 1612100 702170
702170
TOTAL
702170
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SURYA METAL FINISHERS NO.P-12/1,PEENYA INDUSTRIAL ESTATE,BANGALORE-560058
ESTIMATED FINAL ACCOUNTS FOR THE PERIOD OF APRIL-MARCH2008
BALANCE SHEET AS ON LIABILITIES Partners Capital Add: Profit Drawings Sundry Creditors AMOUNT
31-3-2008 ASSETS AMOUNT
5,95,300 3,48,300 285,650 657,950
Fixed Assets Furniture & Fixture Les: Dep Machinery & 63,100 Equipments Less: Dep 49,950 2,83,050 18,000 1,800 3,33,000 16,200
Deposits K.S.T Rent S. Debtors Closing Stock Cash & Bank Balance 2,000 1,20,000 1,22,000 1,49,000 1,32,100 18,700
Total
7,21,050
Total
7,21,050
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SURYA METAL FINISHERS NO.P-12/1,PEENYA INDUSTRIAL ESTATE,BANGALORE-560058
ESTIMATED FINAL ACCOUNTS FOR THE PERIOD OF APRIL-MARCH2009
PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED 31-3-2009 PARTICULARS To Opening stock " Purchases " Gross Profit Total To Rent " salary " Electricity " Water charges " Conveyance " Repair & Maintenance " Printing & Stationary " Rates & Taxes " Int & Bank charges " Telephone " Depreciation " Vat " Net Profit (Before partners salary) TOTAL 6,21,323 TOTAL 6,21,323 AMOUNT 85,300 9,54,277 6,21,323 16,60,900 1,26,600 1,48,200 3,800 2,365 10,360 7,200 6,660 2,000 8,623 5,660 44,078 20,667 2,35,110 By gross profit B/d PARTICULARS By Sales (Coating,Labour) By Closing Stock Total 2,35,600 16,60,900 6,21,323 AMOUNT 14,25,300
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SURYA METAL
FINISHERS
NO.P-12/1,PEENYA INDUSTRIAL ESTATE,BANGALORE-560058
FINAL ACCOUNTS FOR THE PERIOD OF APRIL-MARCH2009
BALANCE SHEET AS ON LIABILITIES Partners Capital Add: Profit Drawings Sundry Creditors AMOUNT
31-3-2009 ASSETS AMOUNT
657950 2,35,110 191,800 07,01,260
Fixed Assets Furniture & Fixture Les: Dep Machinery & 72,860 Equipments Less: Dep 42,458 2,36,392 16,200 1,620 2,78,872 14,580
Deposits K.S.T Rent S. Debtors Closing Stock Cash At Bank Cash on hand Total 7,74,120 Total 2,000 1,20,000 1,22,000 1,53,924 2,35,600 7,424 4,200 7,74,120
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ESTIMATED FINAL ACCOUNTS FOR THE PERIOD OF APRIL-MARCH2010
PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED 31-3-2010 PARTICULARS To Opening stock " Purchases " Gross Profit Total To Rent " salary " Electricity " Water charges " Conveyance " Repair & Maintenance " Printing & Stationary " Rates & Taxes " Int & Bank charges " Telephone " Depreciation " Vat " Net Profit (Before partners salary) TOTAL AMOUNT 2,35,600 10,16,330 07,90,970 20,42,900 1,38,000 1,63,100 4,300 3,100 3,860 8,763 12,065 2,000 22,090 6,065 75,046 46,916 3,05,660 PARTICULARS By Sales (Coating,Labour) By Closing Stock Total By gross profit B/d AMOUNT 17,80,000
2,62,900 20,42,900 07,90,970
7,90,970
TOTAL
7,90,970
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FINDINGS & SUGGESTIONS
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Findings:
The ratio of current assets to total assets has below the margin in all the years. This shows the dominance of fixed assets over current assets. The company is small scale industry but still they are not maintaining cost records, example (Row material cost, Cost of production per unit) etc. It is observed that it is maintaining low liquidity position. The liquidity position of the company is very low. The firm is not efficiently managing the cash. It has been found that the firm is not maintaining good funds in long-term sources which show a bad sign for the capital employed for the firm. The financing pattern of working capital shows that creditors showed an increasing trend until 2009. Thereafter there has been decreasing trend. Shortterm sources showed an increasing trend. Sundry Creditors came down compare to previous years due to repayment of current liabilities. The funds flow statements shows that working capital though shows a fall in 2008-09, there has been a gradual increase in working capital for the next year. There is a decrease in profit of the firm during the year2008-09, and increase in the profit of the firm in the year 2009-10 and hence the firm is in a good position showing good increase in the profits of the firm. The total assets turnover of the firm has been tremendously increasing in 2009-10 the years due to purchase of fixed assets during the year KSOU MANASAGANGOTRI MYSORE Page 85
Suggestions:
A high ratio of inventory turnover implies a good inventory, but still the company should control inventory, so as to reduce interest burden, unnecessary occupation of space, possible deterioration of material and so on. It is suggested that instead of going for stock piling techniques because of the cited reasons it may go for reserve policy techniques i.e., keeping required inputs to operate and meet any anticipatory demands. The firm has to control the cost of production, and there is no record of cost of production. The firm also can use ABC Analysis though it use funds flow, cash flow and ratio analysis as a tool for working capital management. The company is maintaining conservative policy. Moderate policy should be followed to maintain both liquidity and profitability. The firm is maintaining approximately 45-55% debtors in current assets. If at all there is any possibility, the company should try to reduce the debtors holding period to bridge gap between the excess and shortage of working capital. It is happening only because of more credit period given to the customers. Finance is the life blood of the company, so the company has to concentrate on the maintenance of the financial resources. From the analysis it can be suggested that the gross profit and net profit can be improved by increasing the sales of the company KSOU MANASAGANGOTRI MYSORE Page 86
The company should reduce the operating expenses by cost control and cost reduction in order to increase the net profit margin profit. Overall it can be concluded that the company’s current position is
satisfactory and in the long run the company can put more efforts to gain more
BIBILOGRAPHY
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BIBLIOGRAPHY: • M.Y khan & P.K Jain, Financial management ( Tata Mc Graw-Hill publishing company limited) • • • • Prasanna kumar, Project management M.P Pandikumar. Management accounting(Excel books, New Delhi) T.S. Reddy & Y Hariprasad reddy, Management accounting Margham publication S.N. Maheswari, Management accounting Sultan chand
WEBSITES: www.google.com.in www.scribd.com
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TITLE
TABLE OF CONTENTS CONTENTS
Introduction
Introduction Importance of the study Purpose of the Project Work Significance of the Project Work Objectives of the Study Sources of Data Scope of the Study Industrial Profile Company profile
A
Study
on
Project
Introduction Meaning of Project Formal Definition of Project Management PMBOK-Project Management Body Of Knowledge
Management
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Responsibility of a Project Manager Concepts Project Management Project management Life cycle Need for Project management Project Dimension’s Project Management Model Sources of Project management
Research Methodology
Introduction Purpose of the Project Work Significance of the Project Work Objectives of the Study Sources of Data Scope of the Study
Summary
Observations Recommendations Limitations
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ACKNOWLEDGEMENT It gives me an immense pleasure to express my deep sense of Gratitude to my internal guide Prof. Dr, Suresh.C.Hegadi for his enormous guidance and assistance. He has been my mentor and guide, his continuous encouragement and valuable suggestions helped me at every stage of this project. I would like to express my thanks to my Business partner Mr. Venkatesh .C, Surya Metal Finishers For supporting me to complete my project Finally, I would like to thank my family and friends for their Overwhelming Support and encouragement
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SRINATH NAVADA (Partner) Surya Metal Finishers
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