PART B

CAPITAL BUDGETING ALONG WITH RATIOS

METHODOLOGY:
This project is an analytical research where in the researcher has to use the available facts as
information and analyze these to make a critical evaluation of materials. This is also an applied
research with an aim to find a solution for immediate problems facing industry or the firm. The
methodologies followed in the analysis of the financial statement are comparative statement,
Common size statement, Trend analysis, ratio analysis, fund flow analysis and cash flow analysis.
PURPOSE OF THE STUDY
The purpose of study includes assessing the net present value and liquidity strength of the company
Sources of data collection
1. Primary data: the data required for the project was collected minor through primary data. That is
through interviewing to access the companys trends for the last four years with regard to liquidity
performance. The purpose of doing this project mainly to make a thorough study of the financial
analysis of the company. Purpose of the study and discussion with concerned authorities in the
company.
2. Secondary data: the major source of data for this project was collected from annual reports, profit
and loss account, manuals and some more information collected through the internet.
Plan of analysis
This study is conducted with the help of statistics figures & techniques like Graphs & charts for
better comparison and interpretation.

Tools and techniques used for analysis

The following are the methods of financial analysis used in general.
1. Cash flows
2. Balance sheet
3. Profit and loss account
4. Income statement
Limitations
1. The study is done only on the Balance sheet and Profit and loss
account.
2. Study is based on information provided by the company.

Capital budgeting
Capital budgeting (or investment appraisal) is the planning process used to determine whether an
organization's long term investments such as new machinery, replacement machinery, new plants,
new products, and research development projects are worth pursuing. It is budget for major capital, or
investment, expenditure.
DEFINITION
According to two Economist Keizer Hayed and Saladin Shah:
capital budgeting is a long term economics decision making it is called capital budgeting Each
potential project's value should be estimated using a discounted cash flow (DCF) valuation, to find
its net present value (NPV). (First applied to Corporate Finance by Joel Dean in 1951; see also Fisher
separation theorem, John Burr Williams: Theory.) This valuation requires estimating the size and
timing of all the incremental cash flows from the project. (These future cash highest NPV (GE).) The
NPV is greatly affected by the discount rate, so selecting the proper rate - sometimes called the hurdle
rate - is critical to making the right decision. The hurdle rate is the Minimum on an investment. This

should reflect the riskiness of the investment, typically measured by the volatility of cash flows, and
must take into account the financing mix. Managers may use models such as the CAPM or
the APT to estimate a discount rate appropriate for each particular project, and use the weighted
average cost of capital (WACC) to reflect the financing mix selected. A common practice in choosing
a discount rate for a project is to apply a WACC that applies to the entire firm, but a higher discount
rate may be more appropriate when a project's risk is higher than the risk of the firm as a whole.

CAPITAL BUDGETING PROCESS

INVESTME
NT
DECISION

CAPITAL
BUDGETI
NG AND
FINANCIN
G

FINANCING
DECISION

STEPS IN CAPITAL BUDGETING

Capital budgeting is a complex process which may be divided into the following phases:

Identification of potential investment opportunities

Assembling of proposed investments
Decision making
Preparation of capital budget and appropriations
Implementation
Performance review

Identification of Potential Investment Opportunities: The capital budgeting process begins with
the identification of potential investment opportunities. Typically, the planning body (it may be an
individual or a committee organized formally or informally) develops estimates of future sales which
serve as the basis for setting production targets. This information, in turn, is helpful in identifying
required investments in plant and equipment. For imaginative identification of investment ideas it is
helpful to (i) monitor external environment regularly to scout investment opportunities, (ii) formulate
a well defined corporate strategy based on a thorough analysis of strengths, weakness, opportunities,
and threats, (iii) share corporate strategy and perspectives with persons who are involved in the
process of capital budgeting, and (iv) motivate employees to make suggestions.
Assembling of Investment Proposals: Investment proposals identified by the production department
and the other departments are usually submitted in a standardized capital investment proposal firm.
Generally, most of the proposals, before they reach the capital budgeting committee or somebody
which assembles them, are routed through several persons. The purpose of routing a proposal through
several persons is primarily to ensure that the proposal is viewed from different angles. It also helps
in creating a climate for bringing about coordination of interrelated activities. Investment proposals
are usually classified into various categories for facilitating decision-making, budgeting and control.
An illustrative classification is given below:

Replacement investments
Expansion investments
New product investments
Obligatory and welfare investments
Decision Making: A system of rupee gateways usually characterizes capital investment decision
making. Under this system, executives are vested with the power to okay investment proposals up to
certain limits. For example, in one company the plant superintendent can okay investment outlays up
to Rs.2,000,000, the works manager up to Rs.500,000, and the managing director up to
Rs.2,000,000.Investments requiring higher outlays need the approval of the board of directors.
Preparation of Capital Budget and Appropriations: Projects involving smaller outlays and which
can be decided by executives at lower levels are often covered by a blanket appropriation for
expeditious action. Projects involving larger outlays are included in the capital budget after necessary
approvals. Before undertaking such projects an appropriation order is usually required. The purpose

of this check is mainly to ensure that the funds position of the firm is satisfactory at the time of
implementation. Further, it provides an opportunity to review the project at the time of
implementation.
Implementation: Translating an investment proposal into a concrete project is a complex, timeconsuming, and risk-fraught task. Delays in implementation, which are common, can lead to
substantial cost-overruns. For expeditious implementation at a reasonable cost, the following are
helpful:

Adequate formulation of projects: The major reason for delay is inadequate formulation of projects.
Put differently, if necessary homework in terms of preliminary studies and comprehensive and
detailed formulation of the project is not done, many surprises and shocks are likely to spring on the

way. Hence, the need for adequate formulation of the project cannot be over emphasized.
Use of the principle of responsibility accounting: Assigning specific responsibilities to project
managers for completing the project within the defined time-frame and cost limits is helpful for

expeditious execution and cost control.

Use of network techniques: for project planning and control several network techniques like PERT
(Programme Evaluation Review Technique) and CPM (Critical Path Method) are available. With the
help of these techniques, monitoring becomes easier.
Performance review: Performance review, or post completion audit, is a feedback device. It is a
means for comparing actual performance with projected performance. It may be conducted, most
appropriately, when the of the project have stabilized. It is useful in several ways:

It throws light on how realistic were the assumptions underlying the project,
It provides a documented log of experience that is highly valuable for decision making,
It helps in uncovering judgmental biases;
It includes a desired caution among project sponsors.

CAPITAL BUDGETING TECHNIQUES

Accounting rate of return
Payback period

 Net present value

Profitability index
Internal rate of return
Modified internal rate of return

The accounting rate of return - (ARR)

The ARR method (also called the return on capital employed (ROCE) or the return on investment
(ROI) method) of appraising a capital project is to estimate the accounting rate of return that the
project should yield. If it exceeds a target rate of return, the project will be undertaken.

Note that net annual profit excludes depreciation.

Decision criteria
A. Capital Rationing Situation
Select the projects whose rates of return are higher than the cut-off
rate
Arrange them in the declining order of their rate of return and
Select projects starting from the top of the list till the capital available
is exhausted.
B. No Capital Rationing Situation
Select all projects whose rate of return are higher than the cut-off rate.

C. Mutually Exclusive Projects

Select the one that offers highest rate of return.
Advantages
It Is Easy To Calculate.
The Percentage Return Is More Familiar To The Executives.
Disadvantages:
It does not take account of the timing of the profits from an investment.
It implicitly assumes stable cash receipts over time.
It is based on accounting profits and not cash flows. Accounting profits are subject to a number of
different accounting treatments.
It is a relative measure rather than an absolute measure and hence takes no account of the size of the
investment.
It takes no account of the length of the project.
it ignores the time value of money.
PAY BACK PERIOD
The CIMA defines payback as 'the time it takes the cash inflows from a capital investment project to
equal the cash outflows, usually expressed in years'. When deciding between two or more competing
projects, the usual decision is to accept the one with the shortest payback.
Payback is often used as a "first screening method".The company might have a target payback, and so
it would reject a capital project unless its payback period was less than a certain number of years.
Decision Rules
A. Capital Rationing Situation

Select the projects which have payback periods lower than or

equivalent to the stipulated

payback period.
Arrange these selected projects in increasing order of their respective payback periods.
Select those projects from the top of the list till the capital Budget is exhausted.
C. Mutually Exclusive Projects
In the case of two mutually exclusive projects, the one with a lower payback period is accepted,
when the respective payback periods are less than or equivalent to the stipulated payback period.
net
month

inflow

outflow

CUMULATIVE

cash

CASH FLOWS

flow
1247539

3380082
-

-3380082

1087445
-

-4467527

2
1395002

1621066
-

-6088593

8
1395204 1443331

8611364

-14699957

april

9095308

may

6839212 7926657

june
july
august
septemb

1477189 1639296
6
5338664

-481273

8770677 8092428

678249

9080367 9282185
1569070 1704827

-201818
-

r
decembe

3
7
1080982 1130228

1357574

r
january
february

1
4
8194121 8690648
5898924 6602643
2598490 2209975

er
october
novembe

march

total

1344266 1482965
35

69

-492463
-496527
-703719
3885148
1386993
4

-15181230
-14502981
-14704799
-16062373
-16554836
-17051363
-17755082
-13869934

Advantages of the payback method:

Payback can be important: long payback means capital tied up and high investment risk. The method
also has the advantage that it involves a quick, simple calculation and an easily understood concept.

Disadvantages of the payback method:

It ignores the timing of cash flows within the payback period, the cash flows after the end of
payback period and therefore the total project return.
It ignores the time value of money. This means that it does not take into account the fact that $1
today is worth more than $1 in one year's time. An investor who has $1 today can either consume it
immediately or alternatively can invest it at the prevailing interest rate, say 30%, to get a return of
$1.30 in a year's time.
It is unable to distinguish between projects with the same payback period.
It may lead to excessive investment in short-term projects.
INTERNAL RATE OF RETURN
The internal rate of return (IRR) is defined as the discount rate that gives a net present value (NPV)
of zero. It is a commonly used measure of investment efficiency.
The IRR method will result in the same decision as the NPV method for (non-mutually exclusive)
projects in an unconstrained environment, in the usual cases where a negative cash flow occurs at the
start of the project, followed by all positive cash flows. In most realistic cases, all independent
projects that have an IRR higher than the hurdle rate should be accepted. Nevertheless, for mutually
exclusive projects, the decision rule of taking the project with the highest IRR - which is often used may select a project with a lower NPV.
In some cases, several zero NPV discount rates may exist, so there is no unique IRR. The IRR exists
and is unique if one or more years of net investment (negative cash flow) are followed by years of net

revenues. But if the signs of the cash flows change more than once, there may be several IRRs. The
IRR equation generally cannot be solved analytically but only via iterations.
One shortcoming of the IRR method is that it is commonly misunderstood to convey the actual
annual profitability of an investment. However, this is not the case because intermediate cash flows
are almost never reinvested at the project's IRR; and, therefore, the actual rate of return is almost
certainly going to be lower. Accordingly, a measure called Modified Internal Rate of Return (MIRR)
is often used.
Despite a strong academic preference for NPV, surveys indicate that executives prefer IRR over NPV
[citation needed]

, although they should be used in concert. In a budget-constrained environment, efficiency

measures should be used to maximize the overall NPV of the firm. Some managers find it intuitively
more appealing to evaluate investments in terms of percentage rates of return than dollars of NPV.
The IRR is the discount rate at which the NPV for a project equals zero. This rate means that the
present value of the cash inflows for the project would equal the present value of its outflows.
The IRR is the break-even discount rate.
The IRR is found by trial and error.

where r = IRR
IRR of an annuity:

where:
Q (n,r) is the discount factor
Io is the initial outlay
C is the uniform annual receipt (C1 = C2 =....= Cn).

Decision Rules IRR

A. "Capital Rationing" Situation
Select those projects whose IRR (r) = k, where k is the cost of capital.
Arrange all the projects in the descending order of their Internal Rate of
Return.
Select projects from the top till the capital budget allows.
B. "No Capital Rationing" Situation
Accept every project whose IRR (r) = k,
where k is the cost of capital.
C. Mutually Exclusive Projects
Select the one with higher IRR.

Net present value (NPV)

The NPV method is used for evaluating the desirability of investments or projects.

Where:

Ct = the net cash receipt at the end of year t

Io = the initial investment outlay
r = the discount rate/the required minimum rate of return on investment
n = the project/investment's duration in years.
The discount factor r can be calculated using:

A. "Capital Rationing" situation Select projects whose NPV is positive or equivalent to zero.
Arrange in the descending order of NPVs. Select Projects starting from the list till the capital budget
allows.
B. "No capital Rationing" Situation
Select every project whose NPV >= 0
C. Mutually Exclusive Projects
Select the one with a higher NPV.

Net present value vs. internal rate of return

Independent vs. dependent projects
NPV and IRR methods are closely related because:
i) Both are time-adjusted measures of profitability, and
ii) their mathematical formulas are almost identical.
So, which method leads to an optimal decision: IRR or NPV?

a) NPV vs. IRR: Independent projects

Independent project: Selecting one project does not preclude the choosing of the other.
With conventional cash flows (-|+|+) no conflict in decision arises; in this case both NPV and IRR
lead to the same accept/reject decisions.
Figure 6.1 NPV vs IRR Independent projects

If cash flows are discounted at k1, NPV is positive and IRR > k1: accept project.
If cash flows are discounted at k2, NPV is negative and IRR < k2: reject the project.
Mathematical proof: for a project to be acceptable, the NPV must be positive, i.e.

Similarly for the same project to be acceptable:

Where R is the IRR

Since the numerators Ct are identical and positive in both instances:
implicitly/intuitively R must be greater than k (R > k);
If NPV = 0 then R = k: the company is indifferent to such a project;
Hence, IRR and NPV lead to the same decision in this case.

NPV vs. IRR: Dependent projects

NPV clashes with IRR where mutually exclusive projects exist.

Profitability index (PI),

also known as profit investment ratio (PIR) and value investment ratio (VIR), is the ratio of payoff
to investment of a proposed project. It is a useful tool for ranking projects because it allows you to
quantify the amount of value created per unit of investment.
The ratio is calculated as follows:

Assuming that the cash flow calculated does not include the investment made in the project, a
profitability index of 1 indicates breakeven. Any value lower than one would indicate that the
project's PV is less than the initial investment. As the value of the profitability index increases, so
does the financial attractiveness of the proposed project.

Rules for selection or rejection of a project:

If PI > 1 then accept the project

If PI < 1 then reject the project

MODIFIED INTERNAL RATE OF RETURN

The Modified Internal Rate of Return (MIRR) is a financial measure of an investment's
attractiveness. It is used in capital budgeting to rank alternative investments of equal size. As the
name implies, MIRR is a modification of the internal rate of return (IRR) and as such aims to resolve
some problems with the IRR.
MIRR is calculated as follows:

,
Where n is the number of equal periods at the end of which the cash flows occur (not the number of
cash flows), PV is present value (at the beginning of the first period), FV is future value (at the end of
the last period).
The formula adds up the negative cash flows after discounting them to time zero using the external
cost of capital, adds up the positive cash flows including the proceeds of reinvestment at the external
reinvestment rate to the final period, and then works out what rate of return would cause the
magnitude of the discounted negative cash flows at time zero to be equivalent to the future value of
the positive cash flows at the final time period.
ADVANTAGES

Tells whether an investment increases the firms value

Considers all cash flows of the project

Considers time value of money

Considers the risk of cash flows( through of cost of capital decision rules)

DISADVANTAGES

Requires an estimate of cost of capital in order to make decisions

May not give the value maximizing decision when used to compare mutually exclusive

projects
May not give value maximizing decision when used to choose projects when there is capital
rationing

RANKED PROJECTS
The real value of capital budgeting is to rank projects. Most organizations have many projects that
could potentially be financially rewarding. Once it has been determined that a particular project has
exceeded its hurdle, then it should be ranked against peer projects (e.g. - highest Profitability index to
lowest Profitability index). The highest ranking projects should be implemented until the budgeted
capital has been expended.
FUNDING SOURCES
When a corporation determines its capital budget, it must acquire said funds. Three methods are gee
stock have no financial risk but dividends, including all in arrears, must be paid to the preferred
stockholders before any cash disbursements can be made to common stockholders; they generally
have interest rates higher than those of corporate bonds. Finally, common stocks entail no financial
risk but are the most expensive way to finance capital projects. The Internal Rate of Return is very
important.
NEED FOR CAPITAL BUDGETING
1. As large sum of money is involved, which influences the profitability of the firm, makes
capital budgeting an important task.
2. Long term investment once made cannot be reversed without significance loss of invested
capital. The investment becomes sunk and mistakes, rather than being readily rectified, must

often be born until the firm can be withdrawn through depreciation charges or liquidation. It
influences the whole conduct of the business for the years to come.
3. Investment decision are the base on which the profit will be earned and probably measured
through the return on the capital. A proper mix of capital investment is quite important to
ensure adequate rate of return on investment, calling for the need of capital budgeting.
4. The implication of long term investment decisions are more extensive than those of short run
decisions because of time factor involved, capital budgeting decisions are subject to the
higher degree of risk and uncertainty than short run decision

RATIO ANALYSIS
Financial management is the specific area of finance dealing with the financial corporations make
and the tools and analysis used to make decisions. The decisions as a whole may be divided between
long term and short term decisions and techniques . Both share the same goal of enhancing firm value
by ensuring that return on capital exceeds cost of capital ,without taking excessive financial risks.
Capital investment decision comprises the long term choice about which projects receive investment,
whether to finance that investment with equity or debt. Short term financing requirements are called
working capital management and deal with balance of current assets and current liabilities by
managing cash inventories and short term borrowings.
Corporate finance is closely related to managerial finance which is slightly broader in scope,
describing the financial techniques available to all forms of business enterprise.
The level and historical trends of these ratios can be used to make inferences about a
companys financial condition, its operations and attractiveness as an investment. The information in the
statements is used by

Trade creditors to identify the firms ability to meet their claims i.e liquidity position of the
company

Investors to know about the present and future profitability of the company nad its financial

structure
Management, in every aspect of the financial analysis. It is the responsibility of the
management to maintain sound financial condition in the company.

Role of financial managers

Nature of work
Working conditions
Employment
Training, other qualifications and advancements
Job outlook
Earnings
Related occupations

Need for the study

The study has great significance and provides benefits to various parties whom directly

and indirectly interact with the company

It is beneficial to the management of the company by providing crystal clear picture

regarding important aspects like liquidity, leverage, and profitability.

The study is also beneficial for employees and offers motivation by showing how actively

they are contributing to growth of the company

The investors who are interested in investing in companys share will also get benefited by
going through the study and can easily take a decision whether to invest in company or not

STEPS IN RATIO ANALYSIS

Select information related to decision under consideration from the statements and calculate

appropriate ratios.
To compare the ratios with the ratios of the same firm in past years with the industry ratios. It

facilitates the industrys success or failure.

The third step is interpretation, drawing inferences and report writing.conclusions are drawn
after comparison in the shape of reporter recommended course of action.
BASIS OR STANDARDS OF COMPARISON

Ratios are relative figures reflecting the relation between the variables.they enable analyst to
draw conclusions regarding functional operations. They use ratios as atool of financial
analysis involves the comparison with related facts. This is the basis of ratio analysis. The
basis is of four types Past ratios- calculated from past financial statements of the firm
Competitors ratio-progressive and successful competitors at the same point of time.
Industry ratio- the industry to which the firm belongs
Projected ratios-ratios of future developed with the help of future developed financial
statements.
INTERPRETATION OF THE RATIOS
The interpretation of ratios is an important factor. The inherent limitations of ratio
analysis should be kept in mind while interpreting them. The impact of factors
such as price level changes, change in accounting policies, window dressing
etc., should also be kept in mind when attempting to interpret ratios. The interpretation
of ratios can be made in the following ways.
IMPORTANCE OF RATIO ANALYSIS
Aid to measure general efficiency
Aid to measure financial solvency
Aid in forecasting and planning
Facilitate decision making
Aid in corrective action
Aid in intra-firm comparison
Act as a good communication
Evaluation of efficiency
Effective tool

LIMITATIONS OF RATIO ANALYSIS

Differences in definitions
Limitations of accounting records

Lack of proper standards

No allowances for price level changes
Changes in accounting procedures
Quantitative factors are ignored
Limited use of single ratio
Background is over looked
Limited use
INTERPRETATION OF RATIOS
The interpretation of ratios is very
CLASSIFICATIONS OF RATIOS
The use of ratio analysis is not confined to financial manager only. There are different parties
interested in the ratio analysis for knowing the financial position of a firm for different purposes.
Various accounting ratios can be classified as follows:
1. TRADITIONAL CLASSIFICATION
It includes the following:
Balance sheet (or) position statement ratio: They deal with relationship between two
items of balance sheet. For example current assets and current liabilities.both the items
however must pertain of the same balance sheet.
Profit and loss account (or) revenue statement ratios: it deals with relation between
two profit and loss accounts. For example- gross profit to sales
Composite (or) inter statement ratios:
these ratios exhibit a profit and loss account or income statement item and a balance
sheet item. For example-stock turnover ratio or total assets ratio to sales
2. FUNCTIONAL CLASSIFICATION
These include liquidity ratios, long term solvency and leverage ratios, activity ratios and
profitability ratios.
3. SIGNIFICANCE RATIOS
Some ratios are important than others and the firm may classify them as primary and secondary ratios.
The primary ratio is one, which is of the prime importance to a concern. The other ratios that
support the primary ratio are called secondary ratios.

IN THE VIEW OF FUNCTIONAL CLASSIFICATION THE RATIOS ARE

1. Liquidity ratio
2. Leverage ratio
3. Activity ratio
4. Profitability ratio
LIQUIDITY RATIOLiquidity refers to ability of a concern to meet its current obligations as and when there becomes due. The short term
obligation of a firm can be met only when there are sufficient liquid funds. The short term obligations are met by
realizing amounts from current ,floating or circulating assets The current assets should either be calculated
liquid (or)near liquidity. They should be convertible into cash for paying obligations of short term nature.
The sufficiency (or) insufficiency of current assets should be assessed by comparing them with shortterm current liabilities. If current assets can pay of current liabilities then liquidity position will be satisfactory. To
measure the liquidity of the firm the following ratios can be calculated:
Current ratio-current ratio may defined as the relationship between the current assets and current
liabilities. This ratio is also known as working capital ratio which is a measure of general
liquidity and is most widely used to make analysis of a short term financial position (or)
liquidity of the firm. Components of current ratio are:

CURRENT ASSETS
Cash in hand
Cash at bank
Bills receivables
Inventories
Work in progress
Marketable securities
Short term investments
Sundry debtors
Pre paid expenses

CURRENT LIABILTIES
Outstanding expenses
Bank overdraft
Bills payable
Short term advances
Sundry creditors
Dividends payable
IT payable

 Quick ratio- It is defined as the relationship between quick or liquid assets and current
liabilities. An asset is said to be liquid when it can be converted to cash in short term and
without much loss of value.

Quick ratio= quick assets

Current assets

Absolute liquid ratio: Although receivable, debtors and bills receivable are more liquid than
inventories yet there is a doubt about their realization

Profit & Loss A/c

1-Apr-2011 to 31-Mar-2012
Shreeji Interiors 2011-12 -

Particulars

(From 1-Apr-2011)
1-Apr-2011 to 31-Mar-2012

Opening Stock

10096980.00

Stock-Raw Materials
Stock - WIP

10096980.00

Stock - WIP - Misc

Purchase Accounts
Purchase - Karnataka
Carriage Inward
Interstate Purchase With 'C' Form
Purchase (Exempt)

80201327.37
73614546.29

Site Expense

Particulars

111174494.55

SALES @14%

71968973.38

Sales - SERVICE TAX

36751337.97

Service Tax Collected

2454183.20

A/c.
Closing Stock
Stock - WIP

5874827.08

(From 1-Apr-2011)
1-Apr-2011 to 31-Mar-2012

Sales Accounts

Stock-Raw Materials

62864.00

Stock - WIP - Misc

649090.00

Direct Expenses
Direct Expenses -Interior Works

Shreeji Interiors 2011-12 -

25878206.00
2164589.00
20952000.00
2761617.00
137052700.55

29655212.50

Gross Profit b/f

23948148.00

Indirect Incomes

1800810.00

DISCOUNT

17099180.68
93217.01
9868.00

Commissioning

5400.00

Interest on IT Refund

54260.00

Electricity Charges -Site

1650.00

Interest Recd FD

29089.01

Gautham
Genset Charges

119000.00

Installation Charges

296866.00

Insurance Charges

97644.00

Labour Charges
Lab Testing Charges
Loading & Unloading Charges
SECURITY CHARGES

1899622.50
1200.00
38446.00
562482.00

Service Charges

31314.00

Site Expenses (Helion Site)

20583.00

Site Rent

55100.00

Transportation Charges

776947.00

Gross Profit c/o

17099180.68
137052700.5
5

Indirect Expenses
Electricity Charges

12078121.81
188137.00

EPF A/c

50443.00

ESI A/c

4742.00

Financial Expenses

2234073.70

Rent Expenses

1036000.00

Salaries and Wages

2304002.00

Telephone Charges

272735.94

Audit Fees

55150.00

Books & Periodicals

22500.00

Business Development Expenses

Computer Maintenance
Depreciation
Donation

211536.00
50060.00
1416732.00
2000.00

Fuel Expenses

328728.00

Interest on Service Tax

353224.00

Legal Charges

30000.00

Mallur Factory Expenses

26562.00

Misc. Expenditure

54411.00

Office Maintenance

82715.00

Penalty (GOVT.)

4000.00

Postal & Couriers

5161.00

Prabhat Kumar Jina Contractor

Printing & Stationery

141138.68

Professional Fees

182775.00

Professional Tax Renewal Charges

Recruitment Charges
Repairs & Maintainence
Rounded Off
Service Tax Paid

2500.00
57116.00
227392.00
582.59
1938832.90

Staff Welfare Expenses

52187.00

Stock Insurance

25995.00

Travelling & Conveyance Charges

131401.00

VAT Paid

162498.00

Vehicle Maintenance

27375.00

Water Charges

167215.00

Written Off

228201.00

Nett Profit
Total

attendance
bank
payment
cash
payment
bank receipt
cash receipt
contra
credit note
debit note
delivery note
job work in
order
job work out
order
journal
material in
material out
memorandu
m
payment
payroll
physical
stock
purchase
purchase
order
receipt
receipt note
rejections in
rejections
out

5114275.88
17192397.69

Total

17192397.69

reversing
journal
sales
sales order
stock journal

LIST OF LEDGERS

Operations

--- - -

Internship Program & Support Team

OPERATIONS

BUSINESS

TEAM

DEVELOPMENT

PURCHASE

ACCOUNTS

HR

Head Purchase

Senior Accountant

HR Manager

Purchase Managers

Accountants

HR Executives

Head Business
Head Projects

Development

Business Development
Project Coordinators

Managers

Business Development
Project Managers

Executives

Accounts
Purchase Executives

Assistants

Admin

Business Relationship
Site Engineers

Site Supervisors

Quantity Surveyors

Safety Supervisors

Store Keepers

Executive