Financial Performance Dora-2016

Financial Performance
EXECUTIVE SUMMARY
Introduction to Finance
Finance is the study of funds and management. Its general areas are business finance, personal finance, and public finance. It also
deals with the concepts of time, money, risk, and the interrelation between the given factors. It is basically focused on how the money is
spent and budgeted. It is one of the most important aspects in handling business. Finance addresses the methods where in business
entities used their financial resources on a certain period of time. It is the application of a set of techniques used by organizations in
managing their financial affairs. The income and expenditure are emphasized in finance and its differences can easily be indicated.
Financial Management:
Financial management is that managerial activity which is concerned with the planning and controlling of the firms financial
resources. It was a branch of economics till 1890, and as a separate discipline, it is of recent origin. Still, it has no unique body of
knowledge of its own, and draws heavily on economics for its theoretical concepts even today.
In general financial management is the effective & efficient utilization of financial resources. It means creating balance among
financial planning, procurement of funds, profit administration & sources of funds.
Meaning of Financial Management:

Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and
utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.
Definitions of financial management:
According to Solomon, Financial management is concerned with the efficient use of an important economic resource, namely,
capital funds.
According to J. L. Massie, Financial management is the operational activity of a business that is responsible for obtaining and
effectively utilizing the funds necessary for efficient operation.
According to Weston & Brigham, Financial management is an area of financial decision making harmonizing individual
motives & enterprise goals.
Main features of financial management:

On the basis of the above definitions, the following are the main characteristics of the
financial management-
Analytical Thinking- Under financial management financial problems are analyzed and considered. Study of trend of actual
figures is made and ratio analysis is done.
Continuous Process- previously financial management was required rarely but now the financial manager remains busy
throughout the year.
Basis of Managerial Decisions- All managerial decisions relating to finance are taken after considering the report prepared by
the finance manager .The financial management is the base of managerial decisions.
Maintaining Balance between Risk and Profitability- Larger the risk in the business larger is the expectation of profits.
Financial management maintains balance between the risk and profitability.
Scope/Elements:
1. Investment decisions includes investment in fixed assets (called as capital budgeting). Investments in current assets are also a part
of investment decisions called as working capital decisions.
2. Financial decisions - They relate to the raising of finance from various resources which will depend upon decision on type of
source, period of financing, cost of financing and the returns thereby.
3. Dividend decision - The finance manager has to take decision with regards to the net profit distribution.
Objectives of Financial Management:

The financial management is generally concerned with procurement, allocation and control of financial resources of a concern.
The objectives can be as follows:
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1. To ensure regular and adequate supply of funds to the concern.
2. To ensure adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations
of the shareholders?
3. To ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost.
4. To ensure safety on investment, i.e., funds should be invested in safe ventures so that adequate rate of return can be achieved.
5. There should be sound and fair composition of capital so that a balance is maintained between debt and equity capital.
OBJECTIVES OF THE STUDY

To study and analyze the financial position of the company through ratio analysis.
To study the liquidity and profitability position of the company.
To suggest the measures if any for improving the financial performance of the company.
To evaluate the performance of Dora plastics (pvt) Ltd. by analyzing The liquidity position of the company.
To study the changes and identify the problems in net working Capital position of the organization from 2006-11. To identify
and analysis the relationship between credit sales and Debtors and to analyzing the profitability position of the company.
LIMITATIONS OF THE STUDY

Availability of time is a serious constant in the proposed survey, since project will be completed within a period of 60 days.
The members of financial department are very busy with the audit
Work, hence they are not be able to spend more for me
In the case of inter firm comparison two firms should have uniform accounting practices.
Inflation makes the comparative study complicated and measuring.
The ratios are calculated from past five years financial statement and these are not indicators of future
The study is based on only on the past records.
The short span of the time provides also one of limitation.
Locke of Availability of accurate financial information and completed up so of the company may limits so the Analysis of the
study flu some extent.
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FINANCIAL ANALYSIS
Financial Analysis refers to the assessment of a business to deal with the planning, budgeting, monitoring, forecasting, and
improving of all financial details within an organization.
Understand, Identify, Analyze and Adjust

Understanding your organizations financial health is a fundamental aspect of responding to todays increasingly stringent
financial reporting requirements. To avoid risks, organizations must quickly
identify ascertain financial ratios and trends across in liabilities and assets
analyze and adjust planned and forecasted amounts
act to provide regulatory statements as needed
Financial Analysis applications built on the Micro Strategy platform make these activities easier and more efficient.
Business intelligence applications within the Financial Analysis application area include:
Budgeting and Budget Analysis
Financial Performance Management
Revenue Analysis
Cost Analysis
Expense Analysis
Cash Flow Analysis
Balance Sheet Analysis
Accounts Receivable Analysis
Accounts Payable Analysis
Invoicing and Billing Analysis
Profit and Loss Statements
1.1 INTRODUCTION
Introduction to Finance
Finance is the study of funds and management. Its general areas are business finance, personal finance, and public finance. It also
deals with the concepts of time, money, risk, and the interrelation between the given factors. It is basically focused on how the money is
spent and budgeted. It is one of the most important aspects in handling business. Finance addresses the methods where in business
entities used their financial resources on a certain period of time. It is the application of a set of techniques used by organizations in
managing their financial affairs. The income and expenditure are emphasized in finance and its differences can easily be indicated.
Financial Management:
Financial management is that managerial activity which is concerned with the planning and controlling of the firms financial
resources. It was a branch of economics till 1890, and as a separate discipline, it is of recent origin. Still, it has no unique body of
knowledge of its own, and draws heavily on economics for its theoretical concepts even today.
In general financial management is the effective & efficient utilization of financial resources. It means creating balance among
financial planning, procurement of funds, profit administration & sources of funds.
Meaning of Financial Management:

Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and
utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.
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Definitions of financial management:
According to Solomon, Financial management is concerned with the efficient use of an important economic resource, namely,
capital funds.
According to J. L. Massie, Financial management is the operational activity of a business that is responsible for obtaining and
effectively utilizing the funds necessary for efficient operation.
According to Weston & Brigham, Financial management is an area of financial decision making harmonizing individual
motives & enterprise goals.
Main features of financial management:

On the basis of the above definitions, the following are the main characteristics of the
financial management-
Analytical Thinking- Under financial management financial problems are analyzed and considered. Study of trend of actual
figures is made and ratio analysis is done.
Continuous Process- previously financial management was required rarely but now the financial manager remains busy
throughout the year.
Basis of Managerial Decisions- All managerial decisions relating to finance are taken after considering the report prepared by
the finance manager .The financial management is the base of managerial decisions.
Maintaining Balance between Risk and Profitability- Larger the risk in the business larger is the expectation of profits.
Financial management maintains balance between the risk and profitability.
Scope/Elements:
4. Investment decisions includes investment in fixed assets (called as capital budgeting). Investments in current assets are also a part
of investment decisions called as working capital decisions.
5. Financial decisions - They relate to the raising of finance from various resources which will depend upon decision on type of
source, period of financing, cost of financing and the returns thereby.
6. Dividend decision - The finance manager has to take decision with regards to the net profit distribution.
Objectives of Financial Management:

The financial management is generally concerned with procurement, allocation and control of financial resources of a concern.
The objectives can be as follows:
6. To ensure regular and adequate supply of funds to the concern.
7. To ensure adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations
of the shareholders?
8. To ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost.
9. To ensure safety on investment, i.e., funds should be invested in safe ventures so that adequate rate of return can be achieved.
10. There should be sound and fair composition of capital so that a balance is maintained between debt and equity capital.
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1.2 INDUSTRY PROFILE

History:
Indian plastic industry has made significant achievements in the country ever since it made a promising beginning with the start
of production of polystyrene in 1957. The industry is growing at a rapid pace and the per capita consumption of plastics in the country
has increased several times as compared to the earlier decade. The chronology of production of polymers is summarized as under
1957 - Polystyrene
1959 - LDPE
1961 - PVC
1968 - HDPE
1978 - Polypropylene
Currently, the Indian plastic industry is highly fragmented with an estimate of around 25,000 firms and over 400,000 employees.
The top 100 players of Indian plastic industry account for just 20% of the industry turnover. Barring 10 to 15% of the firms that can be
categorized as medium scale enterprises, most of the units operate on a small scale basis.
The immense potential of Indian plastic industry has motivated Indian manufacturers to acquire technical expertise, achieve
superior quality standards and build capacities in different facets of the booming plastic industry. Substantial developments in the plastic
machinery sector coupled with matching developments in the petrochemical sector, both of which support the plastic processing industry,
have facilitated the plastic processors to develop capacities to cater both domestic as well as overseas exports.
Indian Plastic Industry

The Indian plastic industry has taken great strides. In the last few decades, the industry has
grown to the status of a leading sector in the country with a sizable base. The material is gaining
notable importance in different spheres of activity and the per capita consumption is increasing at a
fast pace. Continuous advancements and developments in polymer technology, processing
machineries, expertise, and cost effective manufacturing is fast replacing the typical materials in
different segments with plastics.
On the basis of value added, share of India's plastic products industry is about 0.5% of India's
GDP. The export of plastic products also yields about 1% of the country's exports. The sector has a large presence of small scale
companies in the industry, which account for more than 50% turnover of the industry and provides employment to an estimate of about
0.4 million people in the country. Approximately Rs 100 billion are invested in the form of fixed assets in the plastic processing industry.
INDIA- one of the fastest growing economies of the world, is all set to attain the premier status along with China. India is a
favoured destination for overseas investors and offers the advantages of an open economy, increasing liberalization, a stable democratic
political scenario, highly skilled work force with fluency in English. Various overseas players wish to explore the Indian market and
invest in opportunities thrown open by the country, projected to be world number 3 in plastics consumption by 2010. This seems a very
achievable position as since the past decade, the Indian plastics industry continues to grow at double digit figures. A plethora of queries
plague the investor who wishes to tap the Indian market. Few of these queries from overseas include :
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Plastics machinery sector : present technology levels and demand
Finished products : Export potential
The major overseas players with base in India
Current consumption, projected growth of the Indian plastics industry

Role of the Indian Government in promoting :
1.
Overseas investments
2. The Indian plastics industry in general.

The Indian plastics industry functions with its unique market dynamics, of which, www.plastemart.com has been a successful part.
www.plastemart.com has attempted to address these queries in "Synopsis of the Indian Plastics Industry : 1992-2010" ; the past 18 years
and what the future holds for the overseas investors.
After liberalization of the economy in 1992, the Government of India has been quite supportive of industry in general, taking many steps
over the years for the conducive growth of business. These measures favouring economic growth, are being continuously taken by the
Indian Government, irrespective of the change in power. The Government of India is end devouring to achieve GDP growth of more than
7% in the next 10 years. It is quite possible that plastics could grow at 14%, based on historical performance
The Petrochemical Department of the Government of India is in the process of setting up a development council to promote the
development of downstream sectors in India. This
clearly illustrates that the Government of India is quite positive and supportive to new investments in India. In fact, many foreign
entrepreneurs have been able to set up 100% owned companies in India in the plastics processing and machinery industry sectors. Foreign
equity participation in the petrochemical industry has been increased to a 51% stake (a majority stake). However, the polymer
manufacturers and other downstream industries are free to set up projects 100% on their own equity. Some examples of the international
Companies That Have Set Up Projects In India On Their Own Are:
Polymer Manufacturing
BASF Styrenics
Bayer ABS
LG Polymers
Compounding
Clariant
DSM
Dupont
GE Plastics
Multibase- Dow Corning
Converting Industry
3M
Baxter
Delphi (Automotive parts)
Huhtamaki (Plastic film converter)
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Moser Baer
Visteon (Automotive parts)
Terumo Penpol
Machinery
The above list is only indicative and not comprehensive. Some of these initially started as joint ventures but later, when the Government
of India granted permission, they acquired remaining equity stake from the Indian partners. Additionally, quite a many joint ventures have
been formed in India. Some notable joint ventures are: MachinoBasell (compounding), Mamta Brampton (Machinery).
The Indian plastics industry, with more than 4 million tons consumption in 2003 is well spread all over India. While it is estimated to be
fragmented across more than 20,000 processors, the large processors are less than 100. These 100 have about 35% share of the plastics
processing industry. The major sectors in which large processors are present are:
Exports:
In the calendar year 2006, the value of
world plastic export was US$ 375 billion.
However the share of India was less than
1 % with exports of worth US$ 3.187 billion. The
percentage of growth in export was 21 %.
During this trend of growth in exports, the export
of plastics raw material increased from 55
% to 60 % of the total export of plastic goods,
while the export of processed plastic
goods has registered a negative growth from 45 %
to 9 %. According to recent reports, the
industry is said to be losing an opportunity of
USD 300 million through value addition
on the raw materials that are exported.
The top 10 trading partners for Indian plastic industry are
USA
UAE
Italy
UK
Germany
Singapore
Saudi Arabia
China
The Indian plastic exports were valued at about US$ 532 million during FY 2004 (1st half FY2005 exports US $ 295 million). With
significant capacity additions leading to over-capacity in domestic markets during FY2001 and beyond, polymer exports have increased
considerably. However, due to the lower competitiveness of the plastic products industry, polymers have been exported directly.
Products
The major plastic products that India export are
Raw Materials - PVC, polypropylene, polyethylene, polystyrene, ABS, polyester chips, urea / phenol formaldehyde, master batches,
additives, etc
Packaging - PP / HDPE woven sacks / bags / fabrics, poly-lined jute goods, box strapping, BOPP tapes, a range of plastic sheeting / films
(of PVC, PP, HDPE, nylon, FRP, PTFE, acrylic, etc.), pouches, crates, bottles, containers, barrels, cans, carboys, shopping / carrier /
garbage bags.
Films
Polyester
film,
BOPP
film,
mesh,
metalized
multilayer
films
and
photo
films
Consumer Goods - Toothbrushes, cleaning brushes, hair brushes, nail / cosmetic brushes, combs, molded furniture (chairs, tables, etc.)
house ware, kitchenware, insulated molded house ware, microwave re-heat able containers, mats and mattresses, water bottles, gifts and
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novelties, a range of stationery items like files, folders, mathematical instruments, etc.
Writing Instruments - Pens, ball pens, markers, sign pens, refills, etc.
Travel ware - Molded luggage, soft luggage, a range of bags like school bags / ladies handbags, wallets, etc.
Leather Cloth / Artificial Leather Floor Coverings - Vinyl floor coverings and linoleums
Plastics materials in India
India has witnessed a substantial growth in the consumption of plastics and an increased production of plastic waste. Polyolefins
account for the major share of 60% in the total plastics consumption in India. Packaging is the major plastics consuming sector, with 42%
of the total consumption, followed by consumer products and the construction industry. The relationship observed between plastic
consumption and the gross domestic product for several countries was used to estimate future plastics consumption (master curve).
Elasticitys of the individual material growth with respect to GDP were established for the past and for the next three decades estimated
for India thereby assuming a development comparable with that of Western Europe. On this basis, the total plastics consumption is
projected to grow by a factor of six between 2000 and 2030. The consumption of various end products is combined with their
corresponding lifetimes to calculate the total waste quantities. The weighted average lifetime of plastics products was calculated as 8
years. Forty-seven percent of the total plastics waste generated is currently recycled in India; this is much higher than the share of
recycling in most of the other countries. The recycling sector alone employs as many people as the plastics processing sector, which
employs about eight times more people than the plastics manufacturing sector. Due to the increasing share of long-life products in the
economy, and consequently in the volume of waste generated, the share of recycling will decrease to 35% over the next three decades. The
total waste available for disposal (excluding recycling) will increase at least 10-fold up to the year 2030 from its current level of 1.3
million tones
1.3 COMPANY PROFILE

Over a decade it came into existence as a group under the lotus feet of Lord Venkateswara in Andhra Pradesh, India. Dora group
comprises of the following companies by establishing a own successful brand name "DORA" - The name you know for trust.
* Dora Plastics (p) Ltd.
* Keshava Plastics
* Keshava Fabrics (p) Ltd.
* Jagdheesh Food Packs (p) Ltd.
In 1999 entered into manufacturing of "Disposable Containers" viz., disposable items - Disposable Cups and Glasses and the
Company has celebrated its successful completion of a "Decade" recently in November 2009. With the taste of success, in 2002, started
another venture Keshava Plastics, manufacturing of Disposable Syringes and needles, with patented brand names of "Dora" and "Dora
One". In 2007 started another new venture, Keshava Fabrics Pvt. Ltd., manufacturing of PP Non-Woven Fabric Cloth, which is having
multiple applications, and the product has got wide acceptance in the Market as one of the reputed brand "Keshava Fabric" across South
India. In 2010 added another venture to the group, Jagdheesh Food Packs Pvt Ltd., manufacturing of PS Foam food packaging products
and Aluminum food packaging products with patented brand name of "JD Pack".
All the Companies are laced with all requisite infrastructure facilities, highly motivated supportive staffs and communication
facilities in order to cater to the rigorous requirements of diverse customers. The Companies with the ultimate sense of productivity
provides special techniques to its products to facilitate the user
We are DORA GROUP based in TIRUPATI, India. We are member of Tradekey.com since November, 2009. Our business is related to
Industrial Machinery industry and we specifically deal in DISPOSABLE SYRINGES. Please find our product details below:
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DISPOSABLE SYRINGES:
The product disposable syringes are available with needle and without needle in various sizes - 2 mil, 3 ml, 5 ml, 10 ml, in
ribbon packing and blister packing with different guages from 21 g to 25 g.
Our Vision:
Providing world class quality, services and offering most competitive prices to earn customer satisfaction and preferences. To earn
trust and building corporate image of the company by constant growth and transparency to all the stake holders including share holders,
employees, customers, vendors and society as a whole.
Keeping pace with the technological development, training of the employees and benchmarking world class management systems
and there by achieving excellence in corporate governance.
Our Mission:
Provide excellent services to our customers in all means
Ensure the timely execution in all our endeavors
Learn new strategies to identify niche markets
Create Opportunities to achieve our highest potentials
Strive hard to enhance our values

Providing world class quality, services and offering most competitive prices to earn customer satisfaction and preferences. To
earn trust and building corporate image of the company by constant growth and transparency to all the stake holders including share
holders, employees, customers, vendors and society as a whole Keeping pace with the technological development, training of the
employees and benchmarking world class management systems and there by achieving excellence in corporate governance.
PRODUCT PROFILE
The company starts with an initial quantity of 50,000 Kgs, as the production. The company Used poly propylene as the raw
materials to produce disposable plastic cups. The raw material is imported from Reliance. The company maintains 15 tones inventory in
stores and the production process time is 6 hours. A raw material is purchased once in 10 days i.e. 3 times in months. 3% input is loss in
production as process loss. Monthly turnover of the company is 30, 00,000/-approximately and
1,00,000 sales per day.
The cost of the product depends on size & gauge. The method of price fixation is based on value addition price-20% of value
addition. Value addition means difference between inputs cost& cost of sales.
Product Advantage
The main advantages of this product is use and throw and also very cheap in cost.
The company produces 10 to 15 items based on sizes and gauges. The following are the various types of product
Dora Plastic Products
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Products
100 ml dis tea cups100x100
250ml tumbler (JKRL) (100x30)
100 ml dis tea cups100x60
250ml tumbler JKRL (100X70)
80ml tea cups 100x150
250ml tumbler HE (100X70)
80ml tea cups 100x100
300ml (100x50)
250ml tumbler 100x70 Plain
50ml ice 100x60
250ml tumbler 100x30
200ml 100x100
50ml ice 100x100
250ml SPL 100x35
100ml ice 100x70
250ml tumbler PH (100X70)
100ml ice 100x30
250ml PL 100X70
90 ml Tea 100x130
As an Organization and individual we are committed to:
Satisfy customer's requirement
Continual improvement on product, process and quality management systems
Optimum use of resource
Description of Production Process of Single use syringes

The raw material used for the production of single use syringes are polypropylene for the barrel and plunger and thermoplastic
elastomer for gasket in form of granules. In the raw material store the granules are filled from the bags in to the containers and from there
they are conveyed to the injection molding machine. During the filling into the containers, no dirt gets into the raw material.
Molding:
The plastics raw material is filled into the material hopper of the injection molding machines in plasticized by the injection units
of the machines. The plasticized material is injected under pressure into the closed precision injection molds. Due to the cooling water
system linked with the mold, the plasticized material is cooled down again becoming the respective part, such as barrel, plunger, hub and
cap. At the end of the cooling down time the mold is open hydraulically and the shaped parts are ejected. The individual injection molded
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parts are filled in to storage containers for approximately 24 hours for further cooling down and shrinking to the definite measurement.
First in first out system is followed.
Printing and Assembly:

After storage the barrel are taken to the printing machines and plungers to the assembly machines. The barrels are placed onto in
feed conveyer which takes the barrels to printing drums and the ink with the help of calibrated iron roller gets transferred from ink roller
to the syringe
The printed barrel as well as plunger and gasket are taken to the assembly machines and automatically fed in to machines. In this
machine the gasket is pushed into the plunger and assembled plunger pushed into the barrel then after a required size of needle fixed on
the nozzle of syringe. After a functional test the assembled syringes separated into good and bad ones are ejected and collected in
containers.
Packing:
After assembly the hypodermic syringes with needle are ribbon packed using a laminated film suitable for thermoforming and
paper which is gas permeable but impermeable for germs. The film and paper on rolls are hanging into the packing machine. In the next
step paper roll gets unwound and conveyed to the printing device, where it gets all necessary data (Date of Mfd., Lot No., etc.) from here
with laminate film the syringe on conveyer led to the sealing station. The film is sealed by a heated sealing plate. This sealing is done on
all four sides of every pack. Several cut marks on paper which permits for the Ethylene Oxide gas in pack.
After sealing the packages, which are still interconnected are cut, crosswise, then the product leaves the clean room and is now
protected all over against contamination. The packages are then placed into inner boxes; the inner boxes are already printed; only
indications such as production date, lot no., expiry, etc. are stamped on.
The inner boxes are set into a dispatch carton which is also labeled with required data.
The dispatch boxes are closed and conveyed to sterilization area.
Testing:
After sterilization the dispatch boxes are taken to the quarantine store. There the remain under quarantine until the
microbiological controls have proven to be satisfaction. At the same time residual gas in the products are removed by a good aeration.
The products remain in this store for a fort night, depending on the results of the sterility test. After the sterility of the products has been
ascertained they are transferred to the dispatch store for sale
Management profile:
Financial Banks
They had the term loans for SBI Rs 60,00,000
State Bank of India,
Settipalli Branch,
Renigunta Road,
Settipalli(Post),
Tirupati 517506.
Registered office
Plat No.30,
Industrial Estate,
Renigunta Road,
Settipalli (Post),
Tirupathi.
BOARD OF DIRECTORS
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Managing directors
T. Kesavulu Naidu
Director
T. Doraswami Naidu
Auditor
E. Palguna Kumar
2. THEORETICAL FRAMEWORK
WORKING CAPITAL MANAGEMENT
INTRODUCTION
Working capital may be regarded as the life blood of a business. Working capital Management is one of the most important aspects of
Financial Management. It forms a major function of the finance manager and accountant.
DEFINITION
1. Working Capital Represents the Excess of Current Assets over current Liabilities and identify the liquidity position of total enter
prizes Capital
Written by Aswathappa
2. According to smith working capital Management is concerned with the problems that arise in attempting to manage the current
assets, current liabilities, and the inter-relationship that exists between them.
MEANING:
Neither Working Capital management nor administration of all aspects of working capital, which manage the firms current
assets and current liabilities in such a way that a satisfactory level of working capital is maintained.
Every organization funds are also needed for short term purposes for the purchase of raw materials payment of wages and other
day to day expenses etc, These funds are also known as working capital. Mainly the organization used working capital day to day
business obligations purposed used. The main goal of working capital is to mange current assets and current liabilities. The following
formula is used calculation of working capital.
Net Working Capital = Current Assets -------
Current Liabilities
According to genstenberg Circulating capital means current assets of a company that are changed in the ordinary course of
business from one form to another, as for example from cash to inventories, inventories to receivables, receivables into cash.
I.
TYPES OF WORKING CAPITAL

There are two types of working capital. They are
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I) ON THE BASIS OF CONCEPT:

1) Gross working capital.
2) Net working capital.
1. Gross Working Capital
Refers to the firms investment in current assets are the assets, which can be concerned into and within an accounting year (or
operating cycle) and include cash, short-term securities, debtors (accounts receivables or book debts) bills receivable and stock
(inventory)Gross working capitals points to the arranging of funds to finance current assets.
2. Networking Capital
Refers to the difference between current assets and current liabilities. Currents liabilities are those claims of outsiders, which are
expected to nature for payment within accounting years and include creditors (accounts payable). Bills Payable and outstanding
expenses. Networking capital can be positive or negative. A positive networking capital will arise when current assets, exceed current
liabilities and a negative working capital will arise when current liabilities are in excess of current assets.
II) ON THE BAIS OF TIME

1) Permanent/fixed/fluctuating working capital
2) Temporary working capital
1) Permanent Working Capital :
The need for current assets arises because of the operating cycle. The operating cycle is a continuous process and therefore, the
need for the current assets is felt constantly. But the magnitude of current assets needed is not always a minimum level of current assets,
which is continuously required by the firm to carry on its business operations. This minimum level of current assets is referred to as
permanent or fixed working capital.
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EXAMPLE: - Every firm has to maintain a minimum level of raw materials, work-in-progress, finished goods and cash balance. This
minimum level of current assets is called permanent or fixed working capital as this part of capital is permanently blocked in current
assets. As the business grows, the requirements of permanent working capital also increase due to the increase in current assets.
Amount
Temporary w c
Of w c
Or
Fluctuating w c
Permanent w c
Time
Note:
W C where =working capital
2) Temporary Working Capital
Depending upon the changes in production and sales, the need for working capital over and above permanent working capital,
will have in be maintained to support the peak proceeds of sale and investment in receive may also increase during such periods. On the
other hand, investment in raw material, working in progress and finished goods will fall if the market is slack.
The extra working capital needed to support the changing production and sales activities is called fluctuating, or variable or
temporary working capital. The firm to meet liquidity measurement that will last only temporarily creates temporary working capital.
Amount
Temporary w c
Of w c
or
Fluctuating w c
Time
II.
permanent W c
DETERMINATES OF WORKING CAPITAL OR FACTORS AFECTING

The working capital requirement of a firm affected by a number of factors.
The various factors, which affect the working capital requirement of a concern, are as follows:
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INTERNAL FACTORS
1. Nature of Business
The working capital requirements of enterprises are basically related to the conduct of business. Public utilities have certain
features which have a bearing on their working capital needs. They do not maintain big inventories arid have, therefore, probably the
least requirement of working capital. On the other hand trading and manufacturing concern required large amount of working capital to
maintain a sufficient amount of cash inventories and book debts.
2. Production Cycle
The term production or manufacturing cycle refers to the span between the procurement of raw materials and completion of the
manufacturing process leading to the production of finished goods. In other words, there is a sometime gap before raw materials become
finished goods. Therefore the longer the time span, the larger will be the working capital needed and vice versa.
3. Business cycle
The business fluctuations influence the size of working capital mainly during updated phase when boom conditions prevail, the need
for working capital is likely to cover the lag between increases sales and receipt of cash as well as invest in plant and machinery to meet
the increased demand. The down swing an opposite effect on the level of working capital requirement.
4.Credit Policy
The credit policy relating to sales and purchases also affects the working capital. The credit policy in influences the requirements
of working capital in two ways:
Though credit terms granted by the firm to its customers/buyers of goods credit terms available to the firm from its creditors. A
firm, which more credit sales and cash purchase required high working capital than a firm having more credit purchase and cash sales.
~15~
5. Scale of Production
A concern carrying on activities on a small scale of needs less working capital. On the other hand a concern undertaking activities
on large scale needs large amount of working capital.
6. Growth and Expansion of Business
The growth and expansion of business also affect the working capital requirement. When there is growth and expansion in the
business of a firm the working capital needs of the firm will also increase.
7. Operating Efficiency
The operating efficiency of the management is also important determinant of the level of working capital. A firm enjoying
operating efficiency can eliminate wastage and use its resources efficiently and thereby reduce its working capital needs considerably.
EXTERNAL FACTORS
1. Business Fluctuations
Business enterprises usually experiences fluctuations in demand for their products and services because of changes in economic
conditions. In view of this, working capital requirements of these enterprises are affected. Thus, in the event of economic prosperity,
general demand of the goods and services tends to shoot up. To cope with increased demand and consequently increased production, the
firm will require additional working capital.
2. Technological Developments
Technological developments in the area of production can have sharp effects on the need for working capital. If a firm switches
over to new manufacturing process and installs new equipments with which it is able to cut period involved in converting raw materials
into finished goods, permanent working capital requirements of the firm will decrease.
3. Transport and Communication Developments

Where the means of transport and communication in a country are not well developed, industries may need additional funds to
maintain big inventory of raw materials and other accessories which would otherwise not be needed where the transport and
communications systems are highly developed.
4. Import Policy
Import policy of the government may also have its bearing on the levels of working capital of the enterprises since they have to
arrange funds for importing goods at specified times.
5. Taxation Policy
Working capital needs of business enterprises are affected sharply by taxation policy of the government. In the event of
regressive taxation policy of the government, as it exists today in India, imposing heavy tax burdens on business enterprises leaves very
little profits for distribution and retention purposes.
III.
SOURCES OF WORKING CAPITAL

Among the various sources available for financing working capital needs finance manager has to select the best suitable source
depending on working capital need of company
~16~
The need of working capital is increased by raising prices of end products and relative inputs. On the other hand the government
and monetary authorities play their own role to curd the malice in periods of inflation. The control measures often take the firm of dear
money policy and restriction credit. Financing of additional working capital in such an amusement becomes a real problem to finance
manager of a concerned unit. Commercial banks play the most significant role in providing working capital finance, particularly in
Indians context. In view of mounting inflation, the R.B.I has taken up certain social measures to check the money supply in the
economy. The balancing need has to be managed either by long-term borrowings or by issuing equity or by earning sufficient profits and
retaining the same of coping with the additional working capital requirements. The first choice before a finance manager, where banks
do not provide a part of additional working capital, is to take the long-term sources of fianc.
Long Term Financing

Loans from financial institution the option is normally rules out, because financial institutions do not provide finance for working
capital requirements. Further this facility is not available to all companies. This option is not practical.
Floating of Debentures
The profitability of a successful floating of debentures seems to be rather merging. In Indian capital market, floating of
debentures has still to gain popularly debentures issues of companies in private sector not associated with certain reputed groups
generally failed to attract investors to invest their funds in companies. In this context the mode of raising funds by issuing convertible
debenture/bonds is also gaining.
Accepting Public Deposits

The issue of tapping deposits is directly to the image of the company seeking to invite public deposits.
Issue of Shares
With a view of financing additional capital needs, issue of additional equity share could be considered. Many Indian company
have still to go ahead to command respect of investors in the context low profit margin as well as lack o knowledge about company
make the success of a capita Issue very dim.
Raising Funds by Internal Financing

Raising funds from operational profit poses problems for many companies, because price of their end products are controlled and
do not permit companies to earn profit sufficient requirements to finance additional working assets, still a largely feasible solution lies in
increase profitability through cost control and cost reduction measures managing the cash operating cycle, rationalizing inventory stock
and so on.
~17~
IV. METHODS FOR ESTIMATING WORKING CAPITAL REQUIRMENTS

Three widely used methods for determining working capital requirements of a firm are :
Percentage of sales method
Regression analysis method
Operating cycle method
1. Percentage of Sales Method

In this method, level of working capital requirements is decided on the basis of past experience. The past relationship between
sales and working capital is taken as a base for determining the size of working capital requirements for future. It is, however, presumed
that the relationship between sales and working capital that has existed in the past has been stable. This may be explained with the help
of the following illustration.
Percentage of sales method is a simple and easily understood method and practically used for ascertaining short-term changes in
working capital in future. However this method lacks reliability inasmuch as its basic assumption of linear relationship between sales
and working capital does not hold true in all the cases. As such, this method cannot be recommended for universal application.
2. Regression Analysis Method

This is a statistical method of determining working capital requirements by establishing the average relationship between sales
and working capital and its various components in the past years. In this regard the method of least squares is employed and the
relationship between sales and working capital is expressed by the equation:
Y= a+bx
The values of a and b is obtained by the solution of simultaneous linear equations given as under:
Where a=fixed component
b=variable component
x=sales
y=inventory
n=number of observation
3. Operating Cycle Approach

Operating cycle refers to the length of time necessary to complete the following cycle of events.
Conversion of cash into inventory.
Conversion of inventory into receivable
Conversion of receivable into cash
If the operating cycle is length than the working capital requirement will be more on the other hands, if the operating cycle is
shorter than the working capital requirement will be less.
According to this approach, size of working capital requirements of a firm is determined by multiplying the duration of the
operating cycle by cost of operations. The duration of the operating cycle may be found with the help of the following formula:
O=R + W + F + A P
Where,
O=Duration of operating cycle

R=Duration of raw materials
W=Duration of work-in-process
F=Duration of finished goods
A=Duration of accounts receivable

P=Duration of accounts payable
Duration of raw materials
It reflects the number of days for which raw materials remain in inventory before they are issued for production. The following
formula can be used to determine duration of raw materials.
~18~
Average stock of raw materials
R= ---------------------------------------------------Per day consumption of raw materials
Duration of the work-in-process
It denotes the number of days required in the work-in-process stage. It may be ascertained with the help of the following formula:
Average work-in-process inventory
W= -------------------------------------------------Average production per day
Duration of finished goods
It refers to the number of days for which finished goods remain in inventory before they are sold. This can be computed by the
following formula
Average finished goods inventory
F=
------------------------------------------Per day sale of goods
Duration of the accounts receivable

It represents the number of days required to collect the accounts receivable. This may be calculated as under:
Average book debts
A= --------------------------------------------Average credit sales per day
Duration of accounts payable

It refers to the number of days for which the suppliers of raw materials offer credit. This may be measured with the help of the
following formula:
Average trade creditors
P= ----------------------------------------------Average credit purchases per day
V. OPERATING CYCLES
RECEIVABLES MANAGEMENT
~19~
Finished goods sold on credit get converted (from the point of view of the selling firm) into receivables (book debts) which
realized generate cash. The average balance in the receivable account would approximately be average daily credit sales multiplied by
average collection period.
OBJECTIVES OF RECEIVABLE MANAGEMENT

The main objectives of receivable management are:
To obtain the optimum value of sales.

To control the cost of credit and keep it at minimum.
To reduce the average collection period.
ASPECTS OF RECEIVABLE MANAGEMENT
Determining the credit policy.

Determining the credit terms.
Evaluating the credit applications.
Determining collection policies and methods.
Control and analysis of receivables.
DETERMINING CREDIT POLICY
The first decision area of receivable management is determining credit policy. In developing an optimum credit policy, the
financial manager should compare the benefits of credit extension with the cost of credit. The major considerations in costs are liquidity
and opportunity cost. The credit policy of a firm provides the frame work to determine.
Whether or not extent to a customer
How much credit to extend.
INTRODUCTION TO RATIO ANALYSIS

Definition of Ratio Analysis
A tool used by individuals to conduct a quantitative analysis of information in a company's financial statements. Ratios
are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to
judge the performance of the company. Ratio analysis is predominately used by proponents of fundamental analysis.
Advantages of Ratios Analysis:
Ratio analysis is an important and age-old technique of financial analysis. The following are some of the advantages / Benefits of
ratio analysis:
1.
Simplifies financial statements: It simplifies the comprehension of financial statements. Ratios tell the whole story of changes in
the financial condition of the business
2.
Facilitates inter-firm comparison: It provides data for inter-firm comparison. Ratios highlight the factors associated with
successful and unsuccessful firm. They also reveal strong firms and weak firms, overvalued and undervalued firms.
3.
Helps in planning: It helps in planning and forecasting. Ratios can assist management, in its basic functions of forecasting.
Planning, co-ordination, control and communications.
4.
Makes inter-firm comparison possible: Ratios analysis also makes possible comparison of the performance of different
divisions of the firm. The ratios are helpful in deciding about their efficiency or otherwise in the past and likely performance in
the future.
~20~
5.
Help in investment decisions: It helps in investment decisions in the case of investors and lending decisions in the case of
bankers etc.
Limitation of Ratio Analysis:

Ratio analysis is used by almost all the accounts managers for strategic planning and decision making. It also very helpful tool to
know the effect of each item of financial statements by creating relationship with other items. There is big list of benefits of ratio analysis
but it has also some limitations. So, account managers and other parties who use ratio and its analysis should remember these limitations
when they take any decision.
Followingaremaindrawbacksorlimitationsofratioanalysis:
Limited Use of Single Ratio:
Sometime, we cannot compare our ratios with others. For example, we have started new business and our financial results are not
still normal. At that time, our profitability ratio will have limited use because there is not any past data of profitability ratios.
Lack of Adequate Standards:
We could not make standards of all ratios. For example, we cannot tell what is rule of them of our net profit ratio because there
are lots of factors affect it. In the lack of adequate standards of ratios, we cannot give exact comment on the basis of ratio analysis.
Inherent Limitation of Financial Accounting:
Ratio analysis is just like simplification of financial accounting data. But there are lots of limitations of financial accounting which
you can read at here. All these limitation will be absorbed by ratios. This is the one of the important limitation of ratio. I can say if base is
not good, everything will be wrong. If there is small portion of poison in milk, its effect will be in everything what you will make.
Changes of Accounting Procedures:
If accounting procedures will change, our accounting ratio will be changed. At that time, we cannot compare our current year
ratios with our past year ratios. For example, in past year, we had used LIFO but current year, we are using FIFO for inventory valuation.
Due to this, figures of closing stock will be different. On this basis, if we have calculated current ratio, it will not be comparable with past
current ratio.
Window Dressing:
Because we have shown our financial data through window dressing. Our ratios will also be affected from it.
Personal Bias:
This is reality, I saw many CAs who waste their time to optimize different ratios by changing the project financial statements
figures for making attractive projects. All these activities are done for getting loan. So, this will make the drawback of ratio analysis.
Matchless:
Different companies uses different accounting policies, so, we can not compare their ratios.
Price Level Changes:
Inflation effect is ignored in calculation of ratios. So, ratio will not give perfect answer in changing of price level.
Ratios are not Substitute of Financial Statements:
Ratio analysis is important part of financial statements analysis. It can never become a substitute of financial statements. We just use
it with cash flow analysis, fund flow analysis and other analysis.
Wrong Interpretation:
We can interprete wrongly. For explaining the effect on company's position with ratios, there is big need of experience. Wrong
interpretation will be helpful for wrong decisions. So, it is limitation of ratio analysis that it does not explain all the facts, it has to
explain. For a new accounts manager, it may be difficult.
Type of Ratio Analysis:
Financial ratios are useful indicators of a firm's performance and financial situation. Most ratios can be calculated from
information provided by the financial statements. Financial ratios can be used to analyze trends and to compare the firm's financials to
those of other firms. In some cases, ratio analysis can predict future bankruptcy.
~21~
Financial ratios can be classified according to the information they provide. The following types of ratios frequently are used in
Liquidity ratios
Asset turnover ratios
Financial leverage ratios
Profitability ratios
Dividend policy ratios
Liquidity Ratios:
Liquidity ratios provide information about a firm's ability to meet its short-term financial obligations. They are of particular
interest to those extending short-term credit to the firm. Two frequently-used liquidity ratios are the current ratio (or working capital
ratio) and the quick ratio.
The current ratio is the ratio of current assets to current liabilities:
Current Assets
Current Ratio=
______________________
Current Liabilities
Short-term creditors prefer a high current ratio since it reduces their risk. Shareholders may prefer a lower current ratio so that
more of the firm's assets are working to grow the business. Typical values for the current ratio vary by firm and industry. For example,
firms in cyclical industries may maintain a higher current ratio in order to remain solvent during downturns.
Quick Ratio:
One drawback of the current ratio is that inventory may include many items that are difficult to liquidate quickly and that have
uncertain liquidation values. The quick ratio is an alternative measure of liquidity that does not include inventory in the current assets.
The quick ratio is defined as follows:
Current Assets - Inventory

Quick Ratio =
___________________________
Current Liabilities
The current assets used in the quick ratio are cash, accounts receivable, and notes receivable. These assets essentially are current
assets less inventory. The quick ratio often is referred to as the acid test.
Cash Ratio:
Finally, the cash ratio is the most conservative liquidity ratio. It excludes all current assets except the most liquid: cash and cash
equivalents. The cash ratio is defined as follows:
Cash+ Marketable Securities
Cash Ratio
=
Current Liabilities
The cash ratio is an indication of the firm's ability to pay off its current liabilities if for some reason immediate payment were
demanded.
Asset Turnover Ratios:
Asset turnover ratios indicate of how efficiently the firm utilizes its assets. They sometimes are referred to as efficiency ratios,
asset utilization ratios, or asset management ratios. Two commonly used asset turnover ratios are receivables turnover and inventory
turnover.
Receivables turnover is an indication of how quickly the firm collects its accounts receivables and is defined as follows:
~22~
Annual Credit Sales

Receivables=
____________________________
Accounts Receivable
The receivables turnover often is reported in terms of the number of days that credit sales remain in accounts receivable before
they are collected. This number is known as the collection period. It is the accounts receivable balance divided by the average daily credit
sales, calculated as follows:
Accounts Receivable
Average Collection Period = ______________________________
Annual Credit Sales / 365
365
Average Collection Period
________________________
Receivables Turnover
Inventory Turnover:
Another major asset turnover ratio is inventory turnover. It is the cost of goods sold in a time period divided by the average
inventory level during that period:
Cost of goods Sold
Inventory Turnover =
____________________________
Average Inventory
The inventory turnover often is reported as the inventory period, which is the number of days worth of inventory on hand,
calculated by dividing the inventory by the average daily cost of goods sold:
The inventory period also can be written as:
Average365
Inventory
InventoryPeriod
Period = ________________________________
= _________________________
Inventory
Inventory
Annual
Cost ofTurnover
Goods Sold / 365
Other asset turnover ratios include fixed asset turnover and total asset turnover.
Financial Leverage Ratios:

Financial leverage ratios provide an indication of the long-term solvency of the firm. Unlike liquidity ratios that are concerned
with short-term assets and liabilities, financial leverage ratios measure the extent to which the firm is using long term debt.
The debt ratio is defined as total debt divided by total assets:
Total Debt
Debt Ratio
______________
Total Assets
The debt-to-equity ratio is total debt divided by total equity:

Total Debt
Debt Equity Ratio
_________________
Total Equity
Debt ratios depend on the classification of long-term leases and on the classification of some items as long-term debt or equity.
The times interest earned ratio indicates how well the firm's earnings can cover the interest payments on its debt. This ratio also is known
as the interest coverage and is calculated as follows:
~23~
EBIT
Interest Coverage
___________________
Interest Charges
Where EBIT = Earnings before Interest and Taxes
Profitability Ratios:
Profitability ratios offer several different measures of the success of the firm at generating profits.
The gross profit margin is a measure of the gross profit earned on sales. The gross profit margin considers the firm's cost of goods sold,
but does not include other costs. It is defined as follows:
Sales Cost of Goods Sold
Gross Profit Margin
______________________
Sales
2.1 REVIEW OF LITERATURE

Introduction to Financial Performance Management
Financial performance management is concerned with the problem that arises in attempting to manage the current assets, the
current liabilities and the interrelationship that arise between them.
Current assets refer to those assets, which in the ordinary course of business can be or will be turned into cash within one year.
The major current assets are cash, marketable securities, accounts receivables and Inventory. Current liabilities are those liabilities, which
are intended, at their inception, to be paid in the ordinary course of business, with in a year. The basic current liabilities are Accounts
payable, Bills payable, Bank Overdraft and Outstanding expenses.
The goal of financial performence management is to manage the firms Current Assets and Current Liabilities in such a way that a
satisfactory level of financial performence is maintained.
Financial performence, it ensures normal and smooth working of a business unit. It is required for the raw materials and stores,
payments of wages and other regular expenses like electricity, water charges, taxes etc. Financial performence is necessary when regular
manufacturing activities are under taken and normal production activities are conducted. Such capital is required for a short period as it is
recovered from the customers when the products are sold to them.
Therefore interaction between current assets and current liabilities are in the main theme of financial performence management.
Profits are earned with the help of assts, which are partly fixed and partly current. Financial performence some times referred to as
CIRCULATING CAPITAL.
The management of fixed assets and current assets are differs in three ways:
In managing fixed assts, time is very important factor, consequently, discounting and compounding techniques play a significant
role in capital budgeting and a minor one in the management of current assets.
The large holding of current assets especially cash, strengthens the firms liquidity position (and reduces risk ness), but also
reduces that over all profitability. Thus, a risk-return trade off is involved in holding current assets.
The level of fixed as well as current assets depends upon expected sales, but it is only current assets, which can be adjusted with
sales fluctuations in the short run. Thus, the firm has a greater degree of flexibility in managing current assets.
In simple words financial performance means that which is issued to carry out the day to day operations of a business. Capital
required for a business can be classified under two main categories.

Fixed capital
~24~
Financial performance
Every business needs funds for two purposes, for its establishment and to carry on its day to day operations. Long term funds are
required to create production facilities through purchase of fixed assets such as plant and machinery, land, building, furniture etc.
Investment in these assets represents that part of firm capital, which is blocked on a permanent or fixed basis called fixed capital. Funds
are also needed for short term purposes i.e. for the purchase of raw material, payment of wages and other day to day operations of
business. These funds are known as financial performance. In other words, financial performance refers to that firms capital which is
required for short- term assets or current assets. Funds thus invested in current assets keep revolving last and being constantly converted
into cash and this cash flow is again converted into other current assets. Hence it is known as circulating or short term capital.
Nair N.K (1991) has studied the productivity aspect of Indian Plastic Industry. This study emphasized that plastic, being a
construction material, occupied a strategic place in the Indian economy. This study has revealed that the industry had an installed
capacity of 60 million tones with a production of 48 million tones. In this study the plastic industry was forecasted to have a capacity
growth of about 100 million tones. This study has also analyzed the productivity and performance ratios of the plastic industry with a
view to identifying the major problem areas and the prospects for solving them.
Anup Agarwal and Nandu J.Nagarajan (1992)
have identified that the influence of family relationship amongst the senior
managers of all equity firms in decision-making process and came out with the following findings,1.Managers off all-equity firms have
significantly larger stock holdings rather than mangers of similar-sized levered firms in the industry .There is significantly more family
involvement in the corporate operations of all equity firms rather than the levered firms,3.Managerial ownership in all equity firms are
characterized by greater liquidity positions than the levered firms.
Debasish Sur(1994), in his study related to working capital management on Balmer Lawrie &CO Ltd., found that the company
was averse to risk of maintaining lower level of current assets. The regression result showed major variation between actual and
anticipated working capital in all the years in the study, the trend analysis of turnover and working capital of the company showed that
the changes in the investment of working capital did not have any impact on the trading activity of the concern. Such a mismatch
revealed the inefficiency of working capital management of the company in this study.
3. RESEARCH METHODOLOGY
Research design:
The main aim of this study is to know the working capital Management with respect to Renigunta Dora plastics Pvt Ltd Research is a
carful investigation or enquiry through search for
new facts in any branch of knowledge.
Research Methodology
Research methodology is a way to systematically solve the research problem. It may be understand as a science of studying how
research is done identifiably. In it we study the various steps that are generally adopted by a research in studying his research problem
behind them.
SOURCE OF DATA COLLECTION

Primary data
The data is collected from in two ways one is primary data another one is secondary data. The primary data is not available from
the company, but in the secondary data is collected from various sources these are given below.
Secondary Data
The secondary data collected from the financial reports, previous records, published records and other statements provided by
finance department of DORA PLASTICS PVT LTD.
Availability of the Dora plastics Pvt ltd in the balance sheets 2010-11
~25~
NEED FOR THE STUDY

To evaluate the performance of Dora plastics (pvt) Ltd. by analyzing. The liquidity
position of the company.
To study the changes and identify the problems in Net Working . Capital position of the organization from 2008-13.
To identify and analysis the relationship between credit sales debtors and to analyzing the profitability position of the company.
To identify and analysis the relationship between credit sales and debtors.
To ascertain the financial position of the company.
SCOPE OF THE STUDY
The primary objective of the company is to obtain maximum profit thought the business. The amount of profit largely depends up
on the magnitude of sales. However the sale does not convert into cash instantaneously.
There is always a time gap between the sales and their actual realization in cash is technical termed as operating cycle. Additional
capital required to have uninterrupted business operations, and the amount will be locked up in the current assets.
Regular availability of advocate working capital is inevitable for sustained business operations, if the proper fund is not provided
for the purpose, the business operations will be effected, and hence this part of finance managed well
OBJECTIVES OF THE STUDY
To study and analyze the financial position of the company through ratio analysis.
To study the liquidity and profitability position of the company.
To suggest the measures if any for improving the financial performance of the company.
To evaluate the performance of Dora plastics (pvt) Ltd. by analyzing the liquidity position of the company.
To study the changes and identify the problems in net working Capital position of the organization from 2008-13. To identify
and analysis the relationship between credit sales and Debtors and to analyzing the profitability position of the company.
LIMITATIONS OF THE STUDY

Availability of time is a serious constant in the proposed survey, since project will be completed within a period of 60 days.
The members of financial department are very busy with the audit
Work, hence they are not be able to spend more for me
In the case of inter firm comparison two firms should have uniform accounting practices.
Inflation makes the comparative study complicated and measuring.
The ratios are calculated from past five years financial statement and these are not indicators of future
The study is based on only on the past records.
The short span of the time provides also one of limitation.
Locke of Availability of accurate financial information and completed up so of the company may limits so the Analysis of the
study flu some extent.
~26~
4. DATA ANALYSIS AND INTERPRETATION

SCHEDULE OF CHANGES IN WORKING CAPITAL 2010-2011
Particulars
As on
As On
31/3/11
31/3/10
Change
Capital
Increase
Rs/-
OF
Working
Interpretation:
Decrease
Rs/-
Inventories
20,41,876 22,00,699 158823
Sundry Debtors
19,19,143 20,75,870 1,56,727
Cash & Bank balance
3,31,011
Other current assets
41,98,369 21,26,201
A. Total Current Assets
84,90,426 65,94,678
1,91,908
company was recorded Rs.8,97,905 and it was

been increased to Rs.12,30,736 in the year 2011.
1,39,103
20,72,195
OF
CHANGES
Particulars
Current Liabilities
41,66,255 36,83,918 4,82,337
Provisions
30,93,435 20,12,855 10,80,580
IN
As on
31/3/12
Current 72,59,690 56,96,773

a. Current Assets
Net Working Capital(A-B)

in
SCHEDULE
WORKING CAPITAL 2011-2012
b. Current Liabilities
Increase
Capital
the company during 2011 has increased than in

the year 2010 and the working capital of the
a. Current Assets
B.
Total
Liabilities
The net working capital requirement of
Working
12,30,736 8,97,905
3,32,831
18,78,467
22,11,298
3,32,831
12,30,736 12,30,736 22,11,298
22,11,298
Inventories
42,48,167
Sundry Debtors
28,68,464
Cash & Bank balance
11,29,883
34,75,187
117,21,701
Current Liabilities
71,64,256
Provisions
13,000
B. Total Current Liabilities
71,77,256
45,44,445
Decrease in Working Capital

45,44,445
Interpretation:
The net working capital requirement of the company during 2012 has increased than in the year 2012 and the working capital of
the company was recorded Rs.12,30,736 and It was been decrease to Rs.45, 44,445 in the year 2011.
~27~

Interpretation:
Particulars
As on
As On
31/3/13
31/3/12
Change OF Working Capital
Increase
Decrease
Rs/-
Rs/-
a. Current Assets
Inventories
64,39,331
42,48,167
21,91,164
Sundry Debtors
17,31,308
28,68,464
Cash & Bank balance
16,67,680
11,29,883
5,37,797
38,26,802
34,75,187
351615
136,651,121
117,21,701
Current Liabilities
53,37,950
71,64,256
Provisions
1,41,826
13,000
54,79,776
71,77,256
81,85,345
45,44,445
11,37,156
Increase in Working Capital

81,85,345
18,26,306
1,28,826
36,40,900
36,40,900
81,85,345
49,06,882
49,06,882
The net working capital requirement of the company during 2013 has increased than in the year 2013 and the working capital of
the company was recorded Rs.45,44,445 and it was been increased to Rs.81,85,345 in the year 2012.
~28~
Particulars
As on
As On
31/3/14
31/3/13
Increase
Decrease
Rs/-
Rs/-
a. Current Assets
Inventories
65,11,971
64,39,331
7,26,40
Sundry Debtors
34,87,689
17,31,308
17,56,381
Cash & Bank balance
15,18,089
16,67,680
58,98,110
38,26,802
164,15,858
136,65,121
Current Liabilities
95,53,947
53,37,950
Provisions
11,050
1,41,826
68,50,861
54,79,776
Working Capital(A-B)
92,94,997
81,85,345
1,49,591
20,71,308

92,94,997
42,15,997
1,30,776
11,09,652
11,09,652
92,94,997
45,15,179
45,15,179
Interpretation:
The net working capital requirement of the company during 2014 has increased than in the year 2014 and the working capital of the
company was recorded Rs.81,85,345 and it was been increased to Rs.92,94,997 in the year 2013.
~29~
Particulars
Interpretation:
As on
As On
31/3/15
31/3/14
The net
requirement of the
2015 has increased
2015
and
the
the company was

64,997 and it was
Rs.128, 92,552 in
The
working
statement
capital
Increase
Decrease
working
capital
Rs/-
Rs/-
company
during
than in the year
a. Current Assets
Inventories
86,60,820
65,11,971
21,48,849
Sundry Debtors
82,42,878
34,87,689
47,55,189
Cash & Bank balance
18,31,888
15,18,089
3,13,799
35,74,204
58,98,110
223,09,790
164,15,858
working capital of
recorded
been increased to
the year 2014.
23,23,906
showing
2014-15
Current Liabilities
123,90,306
95,53,947
28,36,359
Provisions
Years
5,02,246
11,050
4,91,196
Working Capital
94,17,238
68,50,861
128,92,552
95,64,997
33,13,709
56,51,461
72,17,837
36,40,900
33,27,555
33,27,555
11,09,652

2013-2014
2014-2015
the
from 2010-11 to
2010-2011
2011-2012
Working Capital(A-B)
2012-2013
Rs.95,
3,32,831
1,28,92,552 1,28,92,552 72,17,83733,27,555

72,17,837
~30~
LIQUIDITY RATIO :
4.1. CURRENT RATIO:
The current ratio establishes the relationship between current assets and current liabilities. The objective of computing this
ratio is to measure the ability of the firm to meet its short term financial strength/solvency of a firm. The satisfactory current ratio is
2:1.In other words, the objective is to measure the safely margin available for short term indicators. This ratio is expressed as under:
CURRENT ASSETS
CURRENT RATIO= ------------------------------------------CURRENT LIABILITIES
Table: 4.1
Years
Current Assets
Current Liabilities
2010-2011
8490426
7259690
Ratios
1.16
2011-2012
11721701
7177256
1.63
2012-2013
13665121
5479776
2.49
2013-2014
16415858
6850861
2.39
2014-2015
22309790
9417238
2.36
Graph : 4.1
Interpretation:
The Current ratio standard norm is 2:1, but the company actual ratios are above the standard ratio. So the company did maintain
the standard ratio, so will maintain the current assets.
~31~
4.2. QUICK RATIO:

In a short period a firm should be able to meet all its short term obligations i.e. current liabilities and provisions. Current assets
are those assets which can be converted into cash in the short run or with in one year. Current assets should not only yield sufficient fund
to meet current liabilities as they fall due.
Current Assets-Inventory
Quick Ratio
------------------------------------------Current liabilities
Table: 4.2
Years
Current Assets-
Current Liabilities
% Ratios
-Inventory
2010-2011
6448550
7259690
0.88
2011-2012
7473534
7177256
1.04
2012-2013
7225790
5479776
1.31
2013-2014
9903888
6850861
1.44
2014-2015
13648970
9417238
1.44
Graph: 4.2
Interpretation:
Quick ratio of the Dora Plastics during the period from 2010-15graduly fluctuated.It is the standard norm of 1:1.So the company
has follow up the standard norm.Hence the Quick ratio is satisfied.
4.3. CASH RATIO:
It is suggested that it would be useful, for the management if the liquidity measure also takes into account reserve borrowing
power. as the firms real debt paying ability depends not only on cash resources available with it but also on its capacity on its capacity on
borrow from the market at short notice. Absolute liquid assets include cash in hand and at bank and marketable securities or temporary
investments. This ratio may be expressed as under.
~32~
Cash
Cash Ratio
---------------------------Current Liabilities
Table : 4.3
Graph : 4.3
Years
Cash
Current Liabilities
% Ratios
2010-2011
331011
7259690
0.04
2011-2012
1129883
7177256
0.15
2012-2013
1667680
5479776
0.30
2013-2014
518089
6850861
0.07
2014-2015
1831888
9417238
0.19
Interpretation:
The above chart shows that Cash ratio of the Dora Plastics during the period from 2010-15, gradually fluctuated. In the year
2012-13is increased of 0.30.In the year of 2010-11, 2014-15is decreased of 0.04, 0.07.The cash ratio is standard norm is 1:1. So the
company has not follow up the standard norm.
4.4. NETWORKING CAPITAL RATIO:

The difference between Current Assets and Current Liabilities is called Networking Capital or Net Current Assets.
Net Working Capital
Net Working Capital
-----------------------------------------Net Assets
Net Working Capital = Current Assets Current Liabilities
Table: 4.4
Years
Net
Working Net Assets
2010-2011
Capital
1230736
10691729
% Ratios
0.11
~33~
2011-2012
4544445
19792611
0.22
2012-2013
8185345
22423358
0.36
2013-2014
6850861
22021389
0.31
2014-2015
9417238
25920599
0.36
Graph4.4
Interpretation:
The Networking capital should be increasing in the year 2011 & 2013.In the next year is decreased in the year of 2008.So the
company is trying to decrease the Networking capital in future also.
I.
LEVERAGE RATIOS:
II.
4.5. DEBT EQUITY RATIO :
The relationship dis cribs the Lenders contribution for each Rupee of the owners contribution is called Debt Equity Ratio.
Total Debt
Debt Equity Ratio =
------------------------------------------Net Worth
Table : 4.5
Years
Total Debt
Net Worth
% Ratios
2010-2011
1594407
7758722
0.21
2011-2012
9979842
8760874
1.14
2012-2013
10979479
9910161
1.11
2013-2014
9212138
11282396
0.82
2014-2015
12411151
12014823
1.03
Graph: 4.5
~34~
Interpretation:
The Debt Equity ratio of the Dora Plastics is in the year of 2010&2011 was increased and next year also be decreased and next
year also be increased more than the net worth, it will danger for the company.
III.
ACTIVITY RATIOS:
4.6. DEBTORS TURNOVER RATIO:

Debtors are convertible in to Cash over a short period and , therefore included in Current Assets. The Liquidity of the firm
depends on the Quality of Debtors to a great extends.
Sales
Debtors Turnover Ratio = ----------------------------------Debtors
Table : 4.6
Years
No . of days
Debtors
Days
2010-2011
365
1919143
22
2011-2012
365
2868464
35
2012-2013
365
1731308
15
2013-2014
365
3487689
25
2014-2015
365
8242878
58
Graph : 4.6
~35~
Interpretation:
Debtors Turnover ratio of the Dora Plastics during the period from 2010-15 gradually fluctuated. In the year of 2014 was
decreased and also will be increased of next year in 2012.The highest days of year in 2015.
4.7. WORKING CAPITAL TURNOVER RATIO:

The relation between Net Current Assets or Working Capital and Sales is called Working Capital Turnover Ratio.
Sales
Net Working Capital Ratio =
---------------------------------------Net Current Assets
Table: 4.7
Years
Sales
Net Current Assets
Times
2010-2011
31546070
1230734
25.63
2011-2012
29754094
454445
6.55
2012-2013
41638067
8185345
5.08
2013-2014
5009124
6850861
7.31
2014-2015
51552215
9417238
5.47
~36~
Graph : 4.7
Interpretation:
The above chart shows that Working Capital Turnover Ratio of the Dora Plastics during the period from 2010-15 gradually
fluctuated. The ratio sales bases to spend the working capital. Hence in that ratio depended total turnover and current assets and
liabilities bases. The highest value is 25.63 in the year 2010 and lowest value is 5.08 in the year 2013.
IV.
ASSETS TURNOVER RATIOS :
4.8. NET ASSETS TURNOVER RATIO:

A firm may also like to relate Net Assets to Sales.
Sales
Net Assets Turnover Ratio =
--------------------------------Net Assets
Table : 4.8:
Years
Sales
Net Assets
Times
2010-2011
31546070
10691729
2.95
2011-2012
29754094
19792611
1.50
2012-2013
41638067
22423358
1.85
2013-2014
5009124
22021389
2.27
2014-2015
51552215
25920599
1.98
Graph : 4.8
~37~
Interpretation:
The above chart shows that Net Assets Turnover Ratio of the Dora Plastics during the period from 2010-15 gradually fluctuated.
Hence in that ratio depended total turnover and current assets and liabilities basis? The highest value is 2.95 in the year 2010 and lowest
value is 1.50 in the year 2011.
4.9 . TOTAL ASSETS TURNOVER RATIO :
Net Assets Turnover can be computed simply by dividing sales by Total Assets.
Sales
Total Assets Turnover Ratio =
-----------------------------------Total Assets
Table: 4.9.
Years
Sales
Total Assets
Times
2010-2011
31546070
17951419
1.75
2011-2012
29754094
20113783
1.47
2012-2013
41638067
27903134
1.49
2013-2014
5009124
31586386
1.58
2014-2015
51552215
38813151
1.32
Graph:4.9
~38~
Interpretation:
The above chart shows that Total Assets Turnover Ratio of the Dora Plastics during the period from 2010 to 2012 gradually
increased after 2015 it is decreased why because in the year 2015 the turnover is very low on that situation the total assets are also low.
Hence this company not concentrates in that ratio especially in the years 2015.
4.10. FIXED ASSETS TURNOVER RATIO:

Fixed Assets Turnover Ratio can be computed simply by dividing Sales by Fixed Assets.
Sales
Fixed Assets Turnover Ratio =
-------------------------Fixed Assets
Table:4.10 :
Years
Sales
Fixed Assets
Times
2010-2011
31546070
9460993
3.33
2011-2012
29754094
8392083
3.54
2012-2013
41638067
14238013
2.92
2013-2014
5009124
15170528
3.30
2014-2015
51552215
16503361
3.12
~39~
Graph :4.10
Interpretation:
The above chart shows that Fixed Assets Turnover Ratio of the Dora Plastics during the period from 2010-15 gradually fluctuated.
After 20010 to 2011 it is increased why because in the year 2009 the turnover is very high on that situation the total assets are also high.
COMPARITIVE INCOME STATEMENT OF THE YEAR 2010-2011
PARTICULARS
Gross Sales
2010
2011
ABSOLUTE
2,94,55,716
3,15,46,070
20,90,354
COMPARITIVE INCOME STATEMENT

(+) Increase
4,73,188
7,42,958
2,69,770
Net sales (A)

PARTICULARS
2,99,28,904
2011
3,22,89,028
2012
23,60,124
ABSOLUTE
(-) Cost of Goods Sold (B)
2,47,291
5,06,189
2,58,898
2,96,81,613
3,17,82,839
21,01,226
11,11,002
11,84,519
73,517
2,85,70,611
3,05,98,320
20,27,709
60,017
44,767
-15,250
3,06,43,087
20,12,459
Gross Sales
Gross Profit (A-B)
(+) Increase
(-) Operating Expenses

Net sales (A)
Operating Profit
(+) Other Income

Gross Profit (A-B)
3,15,46,070
7,42,958
3,22,89,028
5,06,189
3,17,82,839
Profit Before Interest & 2,86,30,628
11,84,519
Depreciation
Operating Profit
(-)
Depreciation
(+) Other Income
Profit Before Interest & Tax
3,05,98,320
10,67,978
44,767
2,75,62,650
Profit Before Interest & Depreciation
(-) Interest
(-) Depreciation
Profit Before Tax
(-) Tax
(-) Interest
Profit After Tax
Profit Before Tax

(-) Tax
Profit After Tax
3,06,43,087
43,024
11,34,334
2,75,19,626
2,95,08,753
3,58,041
50,185
2,71,61,585
3,31,56,905
2,84,391
11,52,268
-3,87,489
3,33,22,596
13,84,831
16,10,835
-4,58,567
3,34,41,296
1,18,700
OF THE YEAR 2011-2012
15,39,757
2,00,312
3,19,37,765
11,34,334
66,356 13,39,445
6,24,436
2,95,08,753
5,79,669
19,46,103
3,25,62,201
19,19,114
11,53,808
19,474
50,185
2,94,58,568
7,161
19,38,942
3,14,08,393
18,99,640
2,31,023
1,80,838
1,22,443
2,93,36,125
-2,35,598
21,74,539
2,94,58,568
3,11,77,370
17,18,802
1,22,443
57,154
-65,389
2,93,36,125
3,11,20,216
17,84,091

~40~
PARTICULARS
2012
2013
ABSOLUTE
Gross Sales
3,31,56,905
4,65,03,000
1,33,46,095
2,84,391
13,69,850
10,85,459
3,34,41,296
4,78,72,850
1,44,31,554
1,18,700
-6,19,167
5,00,467
3,33,22,596
4,84,92,017
1,51,69,421
13,84,831
17,14,369
3,29,538
3,19,37,765
4,67,77,648
1,48,39,883
6,24,436
3,02,273
3,22,163
3,25,62,201
4,70,79,921
1,45,17,720
11,53,808
15,79,349
4,25,541
3,14,08,393
4,55,00,572
1,40,92,179
2,31,023
1,35,020
-96,003
3,11,77,370
4,53,65,552
1,41,88,182
57,154
5,94,286
5,37,132
3,11,20,216
4,47,71,266
1,36,51,050
(+) Increase
Net sales (A)
Gross Profit (A-B)
Operating Profit
(+) Other Income
(-) Depreciation
(-) Interest
Profit Before Tax
(-) Tax
Profit After Tax

PARTICULARS
2013
2014
ABSOLUTE
Gross Sales
4,65,03,000
5,62,65,237
97,62,237
13,69,850
2,18,728
-11,51,122
4,78,72,850
5,64,83,965
86,11,115
-6,19,167
-2,85,830
-3,33,337
4,84,92,017
5,67,69,795
82,77,778
17,14,369
18,26,744
1,12,375
4,67,77,648
5,49,43,051
81,65,403
3,02,273
2,79,149
-23,124
4,70,79,921
5,52,22,200
81,42,279
(+) Increase
Net sales (A)
Gross Profit (A-B)
Operating Profit
(+) Other Income
~41~
(-) Depreciation
(-) Interest
Profit Before Tax
(-) Tax
Profit After Tax
15,79,349
17,60,641
1,81,292
4,55,00,572
5,34,61,559
79,60,987
1,35,020
66,103
68,917
4,53,65,552
5,33,95,456
80,29,904
5,94,286
13,72,235
7,77,949
4,47,71,266
5,20,23,221
72,51,955

PARTICULARS
2014
2015
ABSOLUTE
Gross Sales
5,62,65,237
5,88,60,104
25,94,867
2,18,728
6,00,873
3,82,145
5,64,83,965
5,94,60,977
29,77,012
-2,85,830
-2,10,809
-75,021
5,67,69,795
5,96,71,786
29,01,991
18,26,744
22,34,585
4,07,841
5,49,43,051
5,74,37,201
24,94,150
2,79,149
1,94,038
-85,111
5,52,22,200
5,76,31,239
5,21,09,039
17,60,641
21,14,333
3,53,692
5,34,61,559
5,55,16,906
20,55,347
66,103
1,20,252
54,149
5,33,95,456
5,53,96,654
20,01,198
13,72,235
7,32,427
6,39,808
5,20,23,221
5,46,64,227
26,41,006
(+) Increase
Net sales (A)
Gross Profit (A-B)
Operating Profit
(+) Other Income
(-) Depreciation
(-) Interest
Profit Before Tax
(-) Tax
Profit After Tax
BALANCE SHEET AS ON 2010-11

NUMBERS PARTICULARS
1
SCHEDULES 2010
2011
Sources of funds
~42~
Share capital
4847800
Share application money
3902800
_
Reserves &surplus
Loans funds:
3913074
3855922
Secured and unsecured loans
9979844
1594408
Deferred tax liability
1051895
1338599
Total
19792613 10691729
Application of funds:
15911560 15826661
7519477
6365668
Net Block
8392083
9460993
Capital work-in-progress
6856083
1.fixed assets(gross Block)

less depreciation
2.current assets loans & advances
a) Inventories
b) Sundry Debtors
4248167
2041876
c) Cash & Bank
2868464
1919143
d) Other assets
1129883
331011
10
3475187
4198396
Less: Current Liabilities &
11721701 8490426
provisions
a)Liabilities
b)provisions
7164256
11
12
4166255
13000
3093435
7177256
7259690
Miscellaneous expenses
3
TOTAL
19792611 10691729
~43~
BALANCE SHEET AS ON 2011-12

NUMBERS PARTICULARS
1
SCHEDULES 2011
2012
5402800
4847800
3913074
Sources of funds
Share capital
Reserves &surplus:
Loans funds:
4507361
10979479 9979844
1533719
1051895
Total
22423358 19792613
Application of funds
22337700 15911560
8099687
7519477
less depreciation
Net Block
14238013 8392083
6856083
a) Inventories
b) Sundry Debtors
6439331
4248167
c) Cash & Bank
1731308
2868464
d) Other assets
1667680
1129883
10
3826802
3475187
13665121 11721701
provisions
a)Liabilities
b)provisions
11
5337950
141826
7164256
13000
~44~
12
5479776
7177256
3
TOTAL
22423358 19792611
BALANCE SHEET AS ON 2012- 13

NUMBERS PARTICULARS
1
SCHEDULES 2012
2013
5402800
5402800
Sources of funds
Share capital
Reserves &surplus:
Loans funds:
5879596
4507361
9212138
10979479
1526855
1533719
Total
22021389 22423358
25030855 22337700
9860327
8099687
less depreciation
Net Block
15170528 14238013
a) Inventories
b) Sundry Debtors
6511971
6439331
c) Cash & Bank
3487689
1731308
d) Other assets
518089
1667680
10
5898110
3826802
provisions
16415858 13665121
~45~
a)Liabilities
b)provisions
11
9553947
5337950
12
11050
141826
6850861
5479776
_
TOTAL
22021389 22423358
BALANCE SHEET AS ON 2013 - 14

NUMBERS PARTICULARS
1
SCHEDULES 2013
2014
5402800
5402800
5879596
Sources of funds
Share capital
Reserves &surplus:
Loans funds:
6612023
12411151 9212138
1494624
1526855
Total
25920599 22021389
28478021 25030855
11974660 9860327
less depreciation
Net Block
16503361 15170528
a) Inventories
b) Sundry Debtors
8660820
6511971
c) Cash & Bank
8242878
3487689
1831888
1518089
~46~
d) Other assets
3574204
5898110
10
provisions
a)Liabilities
22309790 16415858
b)provisions
11
12
12390306 9553947
502246
11050
9417238
6850861
TOTAL
25920599 22021389
BALANCE SHEET AS ON 2014 - 15

NUMBERS PARTICULARS
SCHEDULES 2014
2015
5402800
5402800
5879596
Sources of funds
Share capital
Reserves &surplus:
Loans funds:
6612023
12411151 9212138
1494624
1526855
25920599 22021389
Total
28478021 25030855
2
11974660 9860327

16503361 15170528
~47~
less depreciation
8660820
6511971
e) Inventories
8242878
3487689
f) Sundry Debtors
1831888
1518089
g) Cash & Bank
10
3574204
5898110
Net Block
h) Other assets
22309790 16415858
provisions
a)Liabilities
11
12390306 9553947
b)provisions
12
502246
11050
9417238
6850861
3
_
TOTAL
25920599 22021389
FINDINGS
The Current ratio standard norm is 2:1, but the company actual ratios are above the standard ratio. So the company maintain the
standard ratio, so will maintain the current assets.
Quick ratio of the Dora Plastics during the period from 2010-15 graduly fluctuated.It is the standard norm of 1:1.So the company
has follow up the standard norm.Hence the Quick ratio is satisfied.
~48~
The above chart shows that Cash ratio of the Dora Plastics during the period from 2010-15 , graduly fluctuated. In the year 201011 is increased of 0.30.In the year of 2011-12,2013-14 is decreased of 0.04,0.07.The cash ratio is standard norm is 1:1. So the
company has not follow up the standard norm.
The Networking capital should be increasing in the year 2010&2012.In the next year is decreased in the year of 2008.So the
company is trying to decrease the Networking capital in future also.
In the Debt ratio of the company is in the all years total Debt is less than the capital employed . So it show good position, it will
maintains the bellow ratio in future also.
Working Capital Turnover Ratio of the Dora Plastics during the period from 2010-15 gradually fluctuated. The ratio sales bases
to spend the working capital. Hence in that ratio depended total turnover and current assets and liabilities bases. The highest
value is 25.63 in the year 2010 and lowest value is 5.08 in the year 2014.
SUGGESTIONS
The working capital was increased in the year 2012-14. So the companies maintain more working capital in that year because of
investment was made in the current Assets.
The working capital was decreased in the year 2010-11. So the company maintains less working capital in that year.
It is better to reduce the long term loans which base high interest charges. If the concern clear off there loans and so for fresh loans
with current interest rates.
~49~
CONCLUSION
The Liquidity position of DORA PLASTICS Pvt Ltd. was good but the cash position was low, so the company should improve
the cash position in future, the Leverage ratio was not satisfied. The Activity Ratio was satisfied of DORA PLASTICS Pvt Ltd. The
Profitability Ratio of the company is not good. Overall the Financial performance of the company is good, and it has to take necessary
steps to further growth of the company.
BIBLIOGRAPHY
I.M.PANDEY,2012,Financial Management, Eighth Edition, Vikas Publishing House Pvt. Ltd.
M .Y.KHAN & P. K. JAIN Financial Management, Third Edition, Tata Mc. Graw Hill Publishing Co.Ltd.
Prasanna Chandra, financial management, 5th edition 2002 Tata Mc. Graw Hill Publishing Co.Ltd ,New Delhi.
SD NAIDU & B SUDHIR financial management, first edition, student ship line publishing house
Paresh Shah, Financial management, Second Edition 2005, Costing and Pricing System at Research Publication
WEB SITES
www.google.com
www.indian plastic industry.com
www.wikipedia.com
www.doragroup.co.in
~50~

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Financial Performance

Meaning of Financial Management:

Definitions of financial management:

Main features of financial management:

Objectives of Financial Management:

OBJECTIVES OF THE STUDY

LIMITATIONS OF THE STUDY

Understand, Identify, Analyze and Adjust

analyze and adjust planned and forecasted amounts

act to provide regulatory statements as needed

Budgeting and Budget Analysis

Financial Performance Management

Cash Flow Analysis

Balance Sheet Analysis

Accounts Receivable Analysis

Accounts Payable Analysis

Invoicing and Billing Analysis

Profit and Loss Statements

Meaning of Financial Management:

Definitions of financial management:

Main features of financial management:

Objectives of Financial Management:

1.2 INDUSTRY PROFILE

Indian Plastic Industry

Plastics machinery sector : present technology levels and demand

Finished products : Export potential

The major overseas players with base in India

Current consumption, projected growth of the Indian plastics industry

2. The Indian plastics industry in general.

world plastic export was US$ 375 billion.

However the share of India was less than

1 % with exports of worth US$ 3.187 billion. The

percentage of growth in export was 21 %.

During this trend of growth in exports, the export

of plastics raw material increased from 55

% to 60 % of the total export of plastic goods,

while the export of processed plastic

goods has registered a negative growth from 45 %

to 9 %. According to recent reports, the

industry is said to be losing an opportunity of

USD 300 million through value addition

on the raw materials that are exported.

The top 10 trading partners for Indian plastic industry are

1.3 COMPANY PROFILE

Provide excellent services to our customers in all means

Ensure the timely execution in all our endeavors

Learn new strategies to identify niche markets

Create Opportunities to achieve our highest potentials

Strive hard to enhance our values

1,00,000 sales per day.

Dora Plastic Products

100 ml dis tea cups100x100

250ml tumbler (JKRL) (100x30)

100 ml dis tea cups100x60

250ml tumbler JKRL (100X70)

80ml tea cups 100x150

250ml tumbler HE (100X70)

80ml tea cups 100x100

250ml tumbler 100x70 Plain

50ml ice 100x60

250ml tumbler 100x30

50ml ice 100x100