1

INTRODUCTION

1
 1.INTRODUCTION OF THE INDUSTRY

EDIBLE OIL INDUSTRY SCENARIO IN INDIA

India is the fourth largest oilseed producing country in the world, next only to
USA, China and Brazil, harvesting about 25 million tons of oilseeds against the
world production of 250 million tons per annum. Since 1995, Indian share in
world production of oilseeds has been around 10 percent. Although, India is a
major producer of oilseeds, per capita oil consumption in India is only 10.6
kg/annum which is low compared to 12.5 kg/annum in China, 20.8 kg/annum in
Japan, 21.3 kg/annum in Brazil and 48.0 kg/annum in USA.
Many varieties of oilseeds along with tree origin oilseeds are cultivated in India.
Among these, the major oilseeds are Soybean, Cottonseed, Groundnut,
Sunflower, Rapeseed, Sesame seed, Copra, Linseed, Castor seed and Palm
Kernels. India occupies the place of pride as the world's largest producer of
Groundnuts, Sesame seeds, Linseeds and Castor seeds. In India, oilseeds are
grown in an area of nearly 27 million hectares across the length and breadth of
the country. Depending on the period of cultivation, the oilseeds are classified as
'Kharif Crop' and 'Rabi Crop'. The Kharif Crop that is dependent on the Monsoon
is harvested around October-November each year. On the other hand, the Rabi
Crop is harvested around March-April each year. The edible oil industry of the
country comprises of 50,000 Expellers, 600 Solvent Extraction Plants, 300
Vegetable Oil Refineries, and 175 Hydrogenation Plants. The edible oil sector
occupies a distinct position in Indian economy as it provides job to millions of
people, achieves on an average a domestic turn over of US $ 10 Billion per
annum and earns foreign exchange of US $ 90 Million per annum.

Climatic conditions in India favor growing a variety of oilseeds. On the demand

side, a growing population and vastly varied dietary habits have ensured a
thriving market for edible oil in the country. In fact, there is a substantial demand
overhang, which is expected to continue for some years. At present, this is offset

2
by imports that cater to almost half of the total domestic consumption. With
cheap imports threatening to cripple the domestic industry, the government is
walking a tightrope between filling the demand
supply gap and the political need to keep the domestic industry in good health.
Unorganized, medium and small players dominate the industry. Hence, quality
remains a concern. There is need for better regulatory control to protect
consumers.
Oilseeds in India account for around 5.0 percent of the Gross National Product
(GNP) and 14.0 percent of the country's area under cultivation of crops. Castor,
Groundnut, Linseed, Niger, Rapeseed, Mustard, Safflower, Sesame and
Sunflower are some of the major oilseeds grown. India produces 10 percent of
the world's oilseeds, but has a low productivity of around 850-900 kg per hectare
(compared to a world average of around 1,100-1,350 kg per hectare).

The amount of oil extracted from the seed varies with the type and quality of
seed. In many cases, the oil recovery rate is upwards of 30.0 percent with
Sesame accounting for a high 45.0 percent.
Domestic consumption of edible oils has been growing at 4.0-5.0 percent a year.
The consumption in 2001-02 was around 25.75 million tons. Non-packaged oils
account for nearly 50.0 percent of consumption in both urban and rural markets.
In the remaining 50.0 percent contributed by packaged oils, branded oils
constitute a small portion of approximately 10.0-15.0%.

3
 2
INTRODUCTION
OF
ORGANIZATION

4
 2. INTRODUCTION OF ORGANIZATION

2.1 GROUP PROFILE

The Data Group has been founded by Shri Niranjan Lal Data who is the present
Chairman of the Group. He has built up the Group by his simplicity and hard
work. He believes that the society is best served by useful and quality products.
His vision has led to the growth of a well diversified group with a powerful
synergy. He is presently helped in managing the day to day affairs by his sons
Shri.Vijay Data and Shri Daya kishan Data.

The Group is likely to achieve a turnover of Rs 1000 crores in 2007-08 and this
is likely to go up to Rs 1150 crores in 2008-09.

The Group consists of the following companies which are engaged in the
following activity

Vijay Solvex Limited - Integrated Edible Oil Complex, Vanaspati,Wind power

Jaipur Glass & Potteries - Fine Bone China Tableware ; Insulators
Deepak Vegpro (P) Ltd - Mustard Oil , Cake, Vanaspati and Wind Power
Data Impex Ltd - Import/,Export, Marketing of Fine Bone
China Crockery in th U.K.
Raghuvar (India ) - Integrated Edible Oil Complex, Vanaspati
Data Arcade - Shopping Complex
Data Foods P limited - Intergrated Plant for Bakery Shortning and
Palm Fatty Acid in Sri Lanka
The brief details of some of the companies is given below Vijay Solvex Ltd
The present capacity is as follows
Vanaspati 100 Tons per Day
Refined Oil 50 Tons per Day
Solvent Extraction Plant 350 Tons per Day
Oil Mill 200 Tons per Day

5
Raghuvar ( India) Ltd
The plant was acquired from the Turner Morrison Group and has well known
rand Hanuman. The present capacity is:
Vanaspati 100 Tons per Day
Refined Oil 50 Tons per Day
Solvent Extraction Plant 300 Tons per Day
Oil Mill 125 Tons per Day

Deepak Vegpro (P) Ltd

Vanaspati 100 Tons Per Day
Oil 100 Tons Per Day

Jaipur Glass and Potteries

The unit was acquired by Vijay Solvex Ltd and under the supervision and control
of the Data Group the company is exporting tableware and insulators to
countries like U.K.,Europe, Germany, Hungary, Middle East,Sri Lanks, etc.
Data Impex Ltd is located at Birmingham U.K.. The company is active in the
markets of U.K. and Europe and is a prestigious vendor to leading retail chain
stores.

6
2.2 COMPANY PROFILE
a. Name of the Company VIJAY SOLVEX LTD.
b. Registered Office Bhagwati Sadan,S.D.Marg,Alwar-301001

Factory / Project : Old Industrial Area,

Itarana Road,Alwar-301001
c. Group to which belongs Not a Recognized Group. However
controlling rights are within the Data Family.
d. Date of Incorporation 29.12.87
e. Line of activity Manufacture of edible oil and oil cakes,
ceramic and generation of wind power.
f. Dealing with the bank 1993
since
g. Ownership and Board of Directors
1.Shri Niranjan lal Data - CEO
management
2.Shri Babu lal Data
3.Shri Daya Kishan Data
4. Shri Vijay Data - M.D.
h. Date of Last sanction 28.03.2006
i. Date of Last Review _______________
j. Constitution Public Limited
k. CRA Rating SBBJ-3 (As on 31.03.2006)
l. Pricing WC: 3% below BPLR minimum 9.00% p.a

TL : 3.50 % below BPLR min. 9.00 %

p. a
m. IRAC Code Standard

2.3 COMPANY HISTORY

7
Vijay Solvex Limited ,set up in 1987 ,has been promoted by Shri Niranjan Lal
Data and his family. Initially the company was engaged in the activity of oil
manufacturing only. In October, 1992, the Company diversified into
manufacturing Ceramics and allied activities by taking over Jaipur Glass and
Potteries Works Ltd.(JGPWL).The Company further diversified into the field of
Wind power generation in March,02.At present the Company has three divisions
viz: Vegetable Oil Division(VOD) at Alwar and Jobner, Ceramic Division and
Wind Mill Division.
In September 2005 the Company Goenka Products Pvt Ltd was amalgamated
with the Vijay Solvex ltd. as per order of Hon’ble High Court ,Rajasthan . Oil
Division Alwar of the Company is a fully integrated with seed crushing, solven
textraction, refinery and vanaspati manufacturing plant and Company’s refined oil
and vanaspati ghee is marketed in the brand name of ‘SCOOTER’ well
responded by customers.
Jaipur Glass & Potteries Works Ltd incorporated on 20.04.1942 was
originally promoted by one Jaipuria family to manufacture. Ceramic
potteries glazed tiles. The Management of the company was taken over by
Vijay Solvex Limited in October 1992 and was merged with Vijay Solvex
Limited as approved by Hon’ble High Court, Rajasthan. Presently the
Company is manufacturing Bone-china crockery and insulators.
In March 2002 the Company has installed 1.380 MW Wind Power Plant at
Jaisalmer District and the plant is performing well and the commercial
production/generation commenced in March 2002. The Company has
increased capacity of Wind Power Plant from 1.38 MW to 2.3 MW by
installing four machines of 230 KVA capacity.
All the Group Companies /industries are working satisfactorily. In February 2004
the group acquired 100% financial stake in M/S Raghuvar (India) Ltd., Jaipur
from Turner Morrison Group of Delhi.In 2005 the Company along with Group
companies Deepak Vegpro Pvt. Ltd and Raghuvar India ltd. has acquired a Sri
Lankan Company M/S V Com Advance Engineering Technology Pvt. Ltd.

8
(VCAET) with registered office at 21,Deal Place ,Colombo-3 Sri Lanka and have
set up a Bakery Shortening plant with a total investment of Rs 1434.95 lacs.
In October 2005, the Company made a bid to purchase land, building & plant and
machinery of Sriganganagar Co-opertive Cotton Complex Limited Sriganganagar
(Ginning & Spinning Mill) for Rs.801 Lacs. The Company was declared as hihest
bidder in the sale process of the same. Govt. of Rajasthan has award in our
favour to purchase the property Land, Building and Plant & Machinery for
Rs.801.00. The Company has deposited entire amount of bid, however the
company has not taken possession of above assets. The Company has not
incorporated financial data of Cotton Complex.

2.4 PROMOTERS

The Promoter Directors namely Shri Niranjan Lal Data, Vijay Data, Babulal Data
and Daya Kishan Data are established industrialists having rich experience in the
line. Other Directors on the Board as on 31.03.06 were Sh. Ramesh Chand
Gupta, Sh. Ram Babu Jhalani, Sh. Om Prakash Gupta and Sh. Ram Kishore.

2.5 SHARE HOLDING PATTERN

Category No. of shares value in Rs. % Holding

held

1. Indian Promoters 1872019 18720190 58.45

Holding

2. Private Corporate 503386 5033860 15.72

bodies

3. Indian Public 827158 8281580 25.83

Total 3202563 32025630 100.00

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 25.83

Promoters Holding
private Corporate
58.45 Indian public
15.72

2.6 Directors Profile

Directors:

Niranjan Lal Data Chairman

Vijay Data Managing Director
Daya Kishan Data Wholetime Director
Mukesh Sethi Wholetime Director
Ramesh sharma Wholetime Director
Ram Babu Jhalani Wholetime Director

Secretary:

A.L. Khandelwal

Auditors:

K.L. Datta & Co. Chartered Accountants

Corporate Advisors

V M & Associates
Company Secretaries, Jaipur

10
Introduction

Niranjan Lal Data, Chairman

Niranjan Lal Data is the 70 year old patriarch of Data Group. His
achievements have to be seen in light of India's recent economic
resurgence. Leadership according to him means motivating others
and he inspires awe and respect though his simplicity. As visionary,
he encompasses his 48 years of rich experience in oil industry. He
has been awarded the National Citizens Award 92 by Hon'ble Vice
President of India, and the Industrial Excellency Award by the then Chief
Minister of Rajasthan. He is the President of Rajasthan Oil Industries
Association. He is also a nominated Director of RIICO, a reputed finance and
investment agency of the Rajasthan government.

Vijay Kumar Data, Director

Vijay Data is the Managing Director of Vijay Solvex Ltd., a division
of Data Group. He guides the Group with intense intellect and
sense of pioneering zeal. His 26 years of experience in the field of
Production, Marketing, Finance, Purchase and General
Administration is thrusting the Group towards new heights. As a
social person, he is an active participant in community development
and welfare programs and heads various social and welfare institutions. He is
the Zonal Chairman of Solvent Extractors Association of India for west zone. He
is also the National President of All India Vaish Youth Federation.

11
Daya K. Data, Director
D.K. Data is a Mechanical Engineer from with 10 years experience
in oil milling and over a decade experience in ceramic industry. He
is independently looking after the ceramic division of the group. He
has widely travelled all over the world and has a great business
acumen which has assisted the company in achieving new
heights. He has single headedly established the UK office and
looks after its day to day operations. He is an active member of AIPMA (All
India Pottery Manufacturers Association) and is a life member of the Indian
Ceramic Society. It is his foresightedness that in spite of tough competitions,
Data Bone China remains the favourite brand of tableware for elites in India &
abroad.

Saurabh Data, Director

Saurabh Data is Director of Vijay Solvex Ltd. and is currently
assisting Shri Vijay Data in day to day operations of the company.
He completed his BSc. (Hons) Computing from University of
Leeds, U.K. He is a youth icon in the expanding Data Group and
stands strong as a promising entrepreneur.

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 2.7 Divisions of Vijay Solvex
EDIBLE OIL DIVISION:

Data Group has several distinctive edible oil processing complexes. They can be
classified as Integrated oil seed processing complexes and Oil Mills.
Vijay Solvex Ltd (VSL) and Raghuvar India Ltd (RIL) are the group’s two modern
integrated oil seed processing complexes. Several modifications and expansion in
production capacity of VSL has been made over the years. Seeing the demand and
supply, RIL was acquired in 2004 from Turner Morrison group. Products of both
complexes include Vanaspati Ghee, Soyabean/Mustard Refined oil, Mustard Oil and
De oiled Cake (DOC). Data Foods (Srilanka) produces Bakery Shortening and
Vanaspati Ghee. The group is the largest producer of mustard DOC in India.
The group has two independent oil mills located in the mustard growing belt of
Rajasthan. The mills produce high quality mustard pungent oil which is rich in aroma
and flavour. The group is one of the largest producers of mustard oil in India.

Data Group has been smart in as Current consolidated production

sessing the edible oil consumption capacity:
pattern in the country. Considering the Vanaspati Ghee | 300TPD
ever increasing per capita edible oil Refined Oil | 100TPD
consumption, it’s planning to further Solvent Extraction | 700TPD
enhance the production capacity. Oil Mill | 150TPD

In India, most brands are regional in nature and serve the local market. We at Data
Group, see this as an opportunity to grow at national level. Efforts are being made to
market our brand nation wide with strong focus on creating a robust distribution
network.

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Vijay Solvex Ltd is the flagship company of Edible Oil Division of Data Group of
Industries. The major products which it manufactures and markets are Mustard
Oil (Kachchi Ghani and Pakki Ghani), Vanaspati Ghee, Refined
Soyabean/Mustard oil under the famous SCOOTER brand. The products are
synonymous with excellent quality and are available nationwide.
Data Group of Industries (turnover exceeding Rs 9000 million; US$ 200m) is
well diversified into Bone China Crockery, Ceramic Gift items, High tension
Porcelain Insulators an Wind Power along with Edible oils.

The synergy lies in corporate philosophy of serving the society through quality
products and services at competitive price. Long term planning and seeing the
market well ahead of time are the corner stones to DATA Group’s success in this
globally competitive economy.

14
CERAMIC DIVISION

15
 In 1992, DATA Group’s flagship company M/S Vijay Solvex Ltd. took over “The Jaipur Glass &
Potteries Works Ltd” located centrally in Jaipur, Rajasthan. Once merged, it came to be known
as M/S Jaipur Glass & Potteries (an ISO 9001-2000 certified company). This is the only
company in India that manufacturers and exports both H.T Insulators and premium range of
Fine Bone China tableware under one roof.

The Division is engaged in manufacturing and exporting of Fine bone china

tableware, Decorative Ceramic Items, Grey Insulators, H.T Porcelain
Insulators etc. These insulators are type tasted from E.R.D.A, CPRI & well-
equiped High-voltage testing laboratory to carry-out tests as per relevant
ISS/IEC/BS/Din standards

It is one of the leading players in the emerging Indian Retail sector and is a
preferred supplier to major retail stores in India. It is exporting its products
to countries like U.K, Germany, Hungary, Middle East, Srilanka, US etc.
To extend its presence over seas, Data Group established Data
Housewares Limited, at Birmingham .U.K.

The company is engaged in import and distribution of Fine Bone china Tableware, Ladies hand
bags, Ladies shoes, Cotton towels and household products manufactured by various other group
factories.

Data Housewares Limited today is a prestigious vendor to leading retail chain stores in U.K.

HORTICULTURE DIVISION
16
To encourage the Agro activities, Data Group is engaged in
horticulture, agriculture and social forestry at modern farms
located in Alwar and Madhya Pradesh. The group is now
planning to go for biodiesel through Jetropha plantation.

POWER GENERATION

Data Group is commited to snergic advantage and

operating cost economy to compete to the global
competition. Under this vision in March 2002, the groups
flagship co. M/s Vijay Solvex Ltd installed wind energy
generators in Jaisalmer (Rajasthan) district. The power
generation through windmill has contributed for the
exploitation of natural resources without burning any fuel
and therefore maintains pollution free environment.
Subsequently, the group has commissioned more energy
generators which as of today has 16 generators producing
3.68 MW of electricity. By investing in environment
preservation in commissioning its wind power station, the
group demonstrated its commitment as a responsible
corporate citizen.

REAL ESTATE

Under another diversification program, the group took over

a project of shopping complex called DATA ARCADE in the
heart of Alwar (the city of Parks). Mosts shops have been
sold as offices and shops for MNCs

17
 3

PROFILE

VIJAY

SOLVEX

LIMITE

18
 Financial Management of the Company
The financial Management of the Vijay Solvex Limited is in the hand
of Board of Directors. All the policy decisions regarding arranging of
funds, distributing of dividends, raising loans and other financial
decisions are taken in the Board of director.

Capital Structure
Mar 04 Mar 05 Mar 06 Mar 07 Mar 08
Total Share Capital
Equity Share Capital 3.15 3.15 3.20 3.20 3.20
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 28.57 31.84 34.62 41.90 49.06
Revaluation Reserves 1.83 1.81 1.78 1.76 0.00

Sources of Finance working Capital

There are various sources of Finances of Working Capital as
(A) Trade Credit
(B) Accounts Receivable Credit
(C) Advances
(D) Finances by Commercial Banks etc.
List of Commercial Banks financing Working Capital
requirements:
o CORPORATION BANK
o HSBC

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 o EXPORT-IMPORT BANK OF INDIA
o ICICI BANK
o CANARA BANK
Accounting System Followed by Vijay Solvex Limited
The AGM (Finance & Accounts), who is directly responsible through
the Managing Director of the Board of Directors for Maintaining and
Controlling the Accounts of the unit, heads the Accounting
System/Department. The Structure of the Accounts Department is
as follows: -

AGM (FINANCE)

CHIEF ACCOUNT
OFFICER

ACCOUNTANT
ACCONTANT
(PURCHASES)
(SALES)

ASSISTANT
ASSISTANT
ACCOUNTANT
ACCOUNTANT

20
ACCOUNTS ACCOUNTS ACCOUNTS ACCOUNTS
ACCOUNTS
CLERK CLERK CLERK CLERK
CLERK

The internal audit is not compulsory, still the orgnisation conduct

internal audit and send his own auditors for checking at any time. The
monthly statement of Cash Flow and Fund Flow are prepared which
are duly checked by the Chief account Officer. The Purchasing
Committees look after the purchases of the unit which is guided by
the AGM. For store items tenders are floated and comparative
statements prepared and then the work order is given when the
supply is made in the store total verification procedure is adopted
both quantity and quality is checked and then the bill is sent to the
Account department. The Board of director through Executive
Committee also screens all the purchase approval and also ensures
that all the rules regulations and policies are totally followed both in
letter and spirit.

The Managing Director has the purchasing power of one Lac. All the
transactions of the accounts are done through the banks. The
payment of and seeds and soyubean is made on three month credit
system. The petty expenses are paid in cash. For this purpose a
balance of Rs. 10 lac is monthly given to the cashier.
21
 4
PRODUCT
PORTFOLIO

22
4.1 Products of Vijay Solvex

1. Mustard oil

2. Vanspati ghee

3. Soyabean Refined oil

23
4. Mustard Refined oil

5. Ground nut oil

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4.2 Brands of Vijay Solvex
Scooter
The voyage of Scooter brand began in 1978 and since then it has
become synonymous with excellent quality. The oil is extracted from
traditional kolhus which gives “Kachchi Ghani” flavor and provide
natural pungency. Scooter brand Mustard oil contains right ratio of
Omega 3 and omega 6 which is considered good for the human body.
Low in saturated fats enables to maintain good health. Vitamin E helps
in rejuvenation of skin.

Neeraj Gold
Presenting Neeraj Gold for quality conscious customers! Every drop of
this pungent oil is as pure as gold which will provides excellent health to
your loved ones. Neeraj Gold Mustard oil contains right ratio of Omega
3 and omega 6 which is considered good for the human body. Low in
saturated fats enables to maintain good health. Vitamin E helps in
rejuvenation of skin.

Hanuman

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Hanuman Brand mustard oil is low in fat and rich in essential nutrients
that will provide perfect health for your loved ones. This oil is cold
pressed which make your food delicious as its natural pungency will
add rich flavour to your food. This oil is extracted from premium quality
seeds in our modern hygienic plant. This oil is good source of natural
antioxidants found in form of Vitamin E important for normal growth and
development of human beings.

Neeraj
Neeraj Brand mustard oil is extracted from traditional kolhus which
gives “Kachchi Ghani” flavor and provide natural pungency. Neeraj
Brand mustard oil contains right ratio of Omega 3 and omega 6 which is
considered good for the human body. Low in saturated fats enables to
maintain good health. Vitamin E helps in rejuvenation of skin.

4.3 Plant Locations

Year of Name of
Establishmen the Division Place Products
t Company
Integrated Edible oil
ROM
processing complex:
Industries
Kanota(Jaipur, Solvent Extraction: De
2008 (Being Edible Oil
Raj.) Oiled cake (DOC),
Commissioned
Vanaspati, Refined oil,
)
Mustard oil
Deepak
Vegpro (P)Ltd, Durgawati(Kaimur,
2007 Edible Oil Vanaspati
Vanaspati Bihar)
Division
Data Foods Bakery Shortening /
2005 Edible Oil Srilanka
(P) Ltd Vanaspati
Integrated Edible oil
processing complex:
Solvent Extraction: De
Raghuvar
2004 Edible Oil Jaipur (Raj.) Oiled cake (DOC),
India Ltd
Vanaspati, Refined oil,
Mustard oil and Wind
Power

26
 Goenka
Jobner (Jaipur, Oil Mill: Groundnut oil,
2003 Products Edible Oil
Raj.) Mustard oil and cake
(a unit of VSL)
Data Import / Export and
2002 Housewares Ceramics Birmingham, UK marketing of FINE Bone
Ltd China Crockery
Deepak Oil Mill: Mustard oil and
1999 Edible Oil Alwar (Raj.)
Vegpro (P) Ltd cake; Wind Power
Jaipur Glass & Fine Bone China
1992 Potteries Ceramics Jaipur (Raj.) Tableware and H.T.
(a unit of VSL) Insulators
Integrated Edible Oil
Complex : Solvent
Vijay Solvex Extraction (DOC),
1989 Edible Oil Alwar (Raj.)
Ltd Vansapati, Refined oil,
Mustard Oil/Cake and
Wind Power

4.4 Three Dimensions Of Growth

1. CAPACITY EXPANSION 2. GLOBALIZATION

3. DIVERSIFICATION

1.CAPACITY EXPANSION :-

Vijay solvex ultimate aim to expansion of capacity . So that company fully satisfied the demand of
customers.

27
2.GLOBALIZATION:-

Globalization Globalization breaks the traditional barriers of national boundaries and Allows
the most competitive value addition, thus rewarding and enhancing efficiencies.

3.DIVERSIFICATION:-

Vijay solvex and its associate companies and businesses, collectively, Are seeking to broaden
the scope of operations in their traditional Domains, increasingly occupying adjacent domains. The
high potential Of the oil sector and opportunities from globalization converge To offer tremendous
opportunities as never before.

28
 WORKING
CAPITAL
MANAGEMEN
T

5.1 INTRODUCING WORKING CAPITAL:

It involves managing the relationship between a firm's short-term assets and its
short-term liabilities. The goal of Working capital management is to ensure that
the firm is able to continue its operations and that it has sufficient cash flow to
satisfy both maturing short-term debt and upcoming operational expenses.

29
A revolutionary change has taken place with new trends and new policies of the
Government in the wake of WTO; economic liberalization and competitive
business market. This has stressed the need of effective, efficient and proper
financial management of investment of funds in business.
To run a business funds and finances are required. A large amount is required
for acquiring the fixed facilities like land, building, plant and machinery etc. and
also for production and uninterrupted day to day operations investment is needed
for inventories of raw materials, semi finished goods and other related production
operation.
Two vital aspects of corporation like are liquidity and profitability. The Profitability
depends on the liquidity and due to thus important aspect, the working capital
management of short terms assets and short run sources of finances is
becoming an integral part of planning of the business. Total Capital can be
divided into Fixed Capital and working Capital. The Capital can also be divided at
fixed assets or long-term financing and current assets or short term financing.

The adequate funds must be available for investment in current assets for
procuring new supplies of raw materials and paying of wages and services. The
funds required for day to day operating costs are known as Working Capital.
These costs are met out of Current Assets like cash, bank balance, debtors and
inventories. In layman terms, the Current Assets are called Working Capital.
Usually current assets are not retained for longer period in the business and are
converted into some other forms.
Current assets are known as ‘Gross Working capital ‘. This is a going concern
concept that enables to provide current amount of Working Capital at the right
time, so that business operations sail uninterruptedly and to bring about
productivity from other assets. This concept is also known as Current Capital or
Circulating capital. The size of investment in the Current assets of the business
does not show or indicate current financial position, but for true assessment of
financial strength, these must be focused in relation with firms ‘Current

30
Liabilities’. The difference between Current assets and Current Liabilities is
known as Net working Capital.

Net Working Capital = Current Assets – Current Liabilities

While Gross Working Capital is a Going Concern concept, and Net working
Capital is an Accounting Concept of Working capital.
The goal of Working Capital Management is to manage firm’s current assets and
current liabilities in such a way that satisfactory level of Working Capital is
maintained. It has been emphasized that a firm should maintain a sound Working
Capital position and there should be optimum investment in working Capital. The
proper management of Working Capital also aims at protecting the purchasing
power of assets and maximizing return on investment.

The Net Working Capital is also known as Net Current assets. This concept
helps in knowing the additional capital required for financed the Current Assets
over and above what is financial by the Current Liabilities. This also indicates the
position of the firm and weather the firm has to finance either from long-term
funds or bank borrowing. The consideration of the level of investment in current
assets should avoid two danger points; Excessive and Inadequate in current
assets. Excessive investment means, an idle investment, which earn nothing and
inadequate investment firms solvency is threatened. Therefore, the management
should be vigilant and should have knowledge of the sources of funds in
emergency and possible investment avenues to temporarily invest the idle funds.
For efficient management of Working capital, both gross and net concepts of
working capital are important. There is no precise way to determine the exact
amount of gross or net Working Capital for any firm. There is also no specific rule
to how current assets should be financial. In practice, it is not feasible to finance
current assets should be financial. In practice, it is not feasible to finance current
assets by short-term sources only. Keeping in view, the constraints of the

31
individual organization, a judicious mix of long and short-term finance should be
invested in current assets. The current assets should be put to productive use,
since they involve cost of funds.

It is also very important that Working capital should be classified on the basis of
time factor as either permanent or temporary.

There is always a minimum level of current of current assets, which is

continuously required by the firm to carry on its business operation. This is
referred to as Permanent or Fixed Working Capital. Depending upon the changes
in production and sales plan, the need for Working Capital will fluctuate. This
extra Working Capital needed to support the changing pattern of production and
sale activities is referred as Variable or Temporary Working Capital. The variable
or Temporary Working Capital should be obtained from the sources that will allow
its return when not in use. This classification can be depicted through two
diagrams.

Temporary or Variable
Permanent
tl(R
s
.) C
p
a
g
inW
o
rk

Time

32
Temporary Working capital is created to meet the liquidity requirement that will
last only temporarily. The above diagram illustrates between Permanent and
Temporary Working Capital. It is shown that Permanent working Capital is stable
in case of over-time; while Temporary working Capital is fluctuating sometime
increasing and sometime decreasing.

Temporary or Fluctuat ing

Permanent
l(R
s.) C
p
a tfW
rkig m
A
n
u
o

Tim e

In the second diagram depict that if the firms requirement for permanent capital is
increasing or decreasing over a period of time, then Permanent working Capital
line need not be horizontal. The difference between Permanent and Temporary
working Capital for the growing firm has been shown in the above Figure.

33
5.2 Components of Working Capital:
Working capital has two components. Working Capital in current use of Current
Liabilities with the amount of Current assets is shown in the Balance Sheet. In
some Balance Sheets all items classified, as Current Liabilities and Current
assets are given in a consolidated Form.

Constituents of Current Assets:

The following items constitute the current assets.
Cash In Hand
Cash in Bank
Fixed Deposits
Advances to Vendors, Loan to Employees etc.
Bill Receivable
1) For sale of finished products
2) For sale of capital goods
3) For sale of non-trading items
4) Finished and Semi-finished products
 Work-In-Process and Work-In-Progress
 Raw Material stock
 Stores of spares including loose tools etc.
 Investments in Government or Corporate Securities.

Constituents of Current Liabilities.

The following items constitute the current Liabilities
 Bills Payable for
1) Supplies of material, store etc.
2) Non-trading items as rent taxes etc.
3) Administrative charge, if any

34
  Income Tax payable during the following years.
 Dividends payable during the coming year
 Provision for specific purposes
 Short-terms Loans including bank overdrafts.

When Current Liabilities are more than Current Assets, Working Capital results in
negative.

5.3 Operating Cycle:

Current assets of a firm that are changed in the ordinary course of business from
one form to another, as for example from Cash to Inventories, Inventories to
Receivable and Receivable to Cash etc.
Working Capital is required because of the time gap between production and
actual realization in cash. This time-gap is technically termed as “Operating
Cycle” of the business. This is also known as “Cash Cycle‘’ of the Working
Capital.

OPERATING CYCLE OR CASH CYCLE

35
 Pu
n Cash Ra rcha
llectio w M se
ate of
Co rial

Raw
Debitor Cash Sale Material & Sales
Cr
ed
it S

st er,
ale

ere w
.
etc
Int , Po
Finished Goods

nt, es
Re Wag
We can illustrate this, by quoting an example, suppose, we have a Current
Liabilities of Rs. 70,000-00 and Current Assets of Rs. 1,00,000. The difference
between Current Assets and current Liabilities is Rs. 30,000. Now Rs. 70,000
should be raised from Long-term Loan in order to make business operating
successfully. Therefore, the objective of working capital Management is also to
maintain a smooth and rapid flow of funds over the Cash Cycle and to increase
the Working Capital efficiency and profitability of the firm. Controlling the Cycle
Time involved in the Activities does this. Working Capital known as ‘blood’ of the
firm. This blood can be seen flowing through the organization in the following
pattern;
 Cash is needed to start with- Current Assets.
 Cash is used to buy Raw Material- Current Assets.
 Raw Material can be bought on credit-Creditors or Current Liabilities.
 To pay in advance for Raw Material- Loans & Advances are current
assets.
 Raw Material is converted in process – A Current assets.
 Stock or Work in progress.
 Work In Progress is converted to – A Current Assets
Finished Products.
 Finished Products can be sold on – Credit sale generate debtor- A Current
Credit or on cash assets.
 When debtors pay-up, cash is generated- A Current Assets.

36
  To finance this cycle, money may be – a Current Liabilities.
 May be borrowed from creditors.
More cash is generated at every rotation then that was first needed to buy the
raw material and add value to product. This added value cover all manufacturing
and trading expenses and also leaves a margins, it earn profit or surplus.
OP = M + W + F + D – C
Where,
OP = Operation Cycle Period
M = Material Storage Period
W = Work-in-Progress
F = Finished Goods
D = Debtors Collection Period
C = Creditors Payment Period

(a) Material Storage Period

Material Storage Period= Average Stock Raw Material

Average Per day Consumption of Raw Material

Average Stock = Opening Stock + Closing Stock

2
Average Per day Consumption = Raw Material Consumed × 365
during the year

37
(b) Work-in-Progress

Work-in-Progress = Average Stock in Work-in-Progress

Daily Average Production Cost

(c) Finished Goods Storage Period

Finished Goods Storage Period = Average Stock of Finished Goods

Daily Average cost of Goods Sold

= (Opening Stock + Closing Stock)/2

Total cost of Goods Sold /365

(d) Debtors Collection Period

Debtors Collection Period = Average Debtors +B/R
Credit Sales per day

OR

= Average Debtors +B/R

Net Credit Sales for the year ×365
(e) Creditors Payment Period

Creditors Payment Period = Average Creditors + B/P

Credit Purchases for the year ×365
OR
= Average Creditors + B/P
Net Credit Purchases for the year ×365

38
(2)Number of Operating Cycles = 365
Net Operating Cycle

5.4 Importance and Advantages of Working Capital:

When we symbolize working Capital with ‘Blood or Oxygen ‘ for a business
organization, there lies the total Growth and survival of the business
organization. Some of the advantages and importance of Working capital in
business organization are discussed here.

39
Solvency of the business: Optimum and adequate Working Capital in business
organization helps in maintaining solvency of the business by providing
uninterrupted flow of production. Excessive and inadequate Working
Capital threatened the very basis of solvency of business organization.
It also increases the organization financial soundness.

Goodwill of the organization: There are many benefits both seen and unseen
to a business organization which are based on goodwill. Sufficient and
adequate Working Capital enables the business organization to make
prompt payments and this helps in maintaining and creative positive
goodwill.

Raise easy loan: An adequate Working Capital ensures law rates of interest on
bank Loans. Sources of funds and finances for any business venture
can be easily arranged on favorable terms. Due to the effective and
sound management of the Working Capital the financial lending
institutions always came forward to have business with this
organization.

Continuity, Uninterrupted and Regular supply:

An adequate Working Capital ensures regular supply of raw material for
manufacturing and production and this further helps in uninterrupted
manufacturing and continuity in production.

 Motivate Work Force: An organization with sound Working Capital can

make regular payments of salaries, wages and meet other day to day
commitment, which help in motivating and raises the morale of the
employees Working in the organization. It also increases the efficiency,
reduces wastage, pilferage and cost of production and increases
productivity.

40
  Purchasing Power: An adequate Working Capital enables and increases
the purchasing power of the business organization. It is always in a better
position to avail the advantages of any favorable opportunity either to
purchase raw material and avail cash discounts or to execute a special
order or to avail better options and market position. This help in reducing
cost of production.

 Power to Face Crises: Adequate Working Capital enables a business

organization to face business crises in emergencies such as depression,
because during such period generally there is much demand and pressure
on the Working Capital. During slumps the demand for going down goes
up. A large amount is booked in inventories and the receivable. Firms
having ample Working Capital tide over and have power to face crises
during the period of depression.

So, keeping in view all the above points, we can very easily confirm the
statement that should, optimum and adequate Working Capital Works as
blood and oxygen in the life of business organization.

5.5 STATEMENT OF PROBLEM

Statement of problem is a first step in any research. Unless or until there is no

problem one cannot conduct any research. As this is a manufacturing concern

41
working capital is very vital for its functioning. By going through the Financial
Statements of last 5 years it has been observed that there are wide fluctuations
in the working capital from one year to other & that has affected the profits
significantly. So I have chosen Working Capital Management as the topic of the
research study.

6
OBJECTIVE
OF
42
 STUDY

The major objectives of this study are as follows: -

1. Working capital aim to protecting the purchasing power and maximizing

return on investment

2. To study the size and composition of Working Capital of the unit

3. To study the effectiveness of utilization of investment and evaluate the

process and procedures of managing different Current assets.

4. To analyses and evaluate the efficiency and profitability of Working Capital

management techniques.

5. To suggest a few pragmatic measures and techniques for possible

Improvement in the management of Working Capital.

6. It has sufficient cash flow

43
 7
RESEARCH
METHODOLOGY

44
Research Methodology:
Research in common parlance refers to a search for knowledge. One can also
define research as a scientific and systematic search for pertinent information on
a specific topic.
The word research has been derived from French word Researcher means to
search.
FRANCIES RUMMER defined Research:
“ It is a careful inquiry or examination to discover new information or
relationship and to expand or verify existing knowledge.”
Research is the solution of the problem, whether created or already generated.
When research is done, some new outcome, so that the problem (created or
generated) to be solved.
Research methodology here includes:
 Type of research.
 Data Collection.
 Sampling.

7.1 Type of Research

In preparation of this project report, the research design is “Descriptive” in nature.
The Conventional method of data collection was used.

45
7.2 Methods of Data Collection:
The Secondary data on is characterized by the data being collected exactly for
the project writing, but have to drive-it-out from the record, books organization
appraisal, documents, financial statement, working capital statement of Vijay
Solvex Ltd. and other published material available.
The following steps of research methodology were taken in preparation of this
work.

Collection of Data
The first step in the process is to collect the data for this work. The data can be
collected through primary as well as secondary sources. The data collection is
the foundation of any study.
Data pools and record, communication methods and personal interviews etc. are
some of the ways to collect the data.
The main objective is to collect comprehensive data so that relevant data or
maximum information can be easily driven-out, keeping in view the constraints
regarding time; organizational policies, environment and secrecy are properly
adhered.

7.3 SAMPLING
Sampling may be defined as the selection of some part of the aggregate or
totality on the basis of which judgment about the aggregate or totality is made. In
other words it is the process of obtaining information about an entire population
from which the samples are taken. It includes:

Sample size
Annual accounts of last 5 years

46
 8
SCOPE
OF
STUDY

47
Scope of study here means the things or area covered . The study includes the
following:
1. Cash Management.
2. Receivable Management
3. Inventory Management.
4. Ratio Analysis

SCHEME OF STUDY
Cauterization Scheme is used in the research. The project includes total of five
chapters, which are as follows:

1. CHAPTER-1 Introduction
2. CHAPTER-2 Research Design
3. CHAPTER-3 Company’s Profile
4. CHAPTER-4 Analysis & Interpretation of Financial Statements
5. CHAPTER -5 Findings & Recommendations

8.1 IMPORTANCE OF STUDY

The project is concerned with the “Working Capital Management at The Vijay
Solvex Limited, This study is very useful, as working capital is essential for every
manufacturing unit, to fulfill the daily requirements & for good management of
working capital.

It is also important to manage the firm’s current assets and liabilities in such a
way that a satisfactory level of working capital is maintained and thus ensure its
solvency.
Each of current assets must be managed to maintain liquidity.

48
Working capital management tries to avoid two-danger points excessive and
inadequate investments in current assets.

8.1 LIMITATIONS:

Limitations of the study are all those which a student has to face while
completing such project. However, following are the main limitations:

1. Only five-year data is analyzed, so desired conclusion is not been found.

2. Although the staff of Vijay Solvex Limited was very efficient and highly

cooperative and they devoted enough of their valuable time for us but

because of time constraint we were not able to devote as much time with

their employees.

3. Due to non-availability of data of other manufacturing units is not able to

compare the data of one unit with another.

49
1. Cash Management:
Cash is the most crucial component of Working Capital of a firm. Cash is like
Blood stream in a human body gives vitality and strength to a business firm.
Cash is both the beginning and the end of the working Capital Cycle. The
problem of Working Capital Management is in fact the problem of Cash
Management itself.
The term cash with reference to Cash Management is used in two senses i.e.
narrow and broad. In Narrow sense it includes Cash (Currency) and generally
acceptable equivalents of cash as cheques, draft and demand deposit in banks.
However, in the broader sense Cash and near cash items such as marketable
securities and time deposits in banks also included in the Cash. In the present,
the term cash has been used in the broader sense.
This however, also supported by management scholars and experts as they
observed, “Cash Management includes management of marketable securities
also, because, in modern terminology money comprise marketable securities and
actual cash in hand with bank.

Motives for Holding Cash

There are following four main motives of holding cash: -
Transaction Motive
Precautionary Motive
Speculative Motive
Compensation Motive
Transaction Motive
One of the important reasons for maintaining Cash is to facilitate
business transactions. Business needs cash for various payments
in ordinary course of its operation. Sometime outflows of Cash are
more than its inflows. Then the firm needs the cash so that liabilities
could be paid. If cash receipts match with the cash payments,
business does not need cash for the transactional purposes.

50
Precautionary Motive
Firm needs cash to combat some contingencies. Some of the
contingencies for which additional Cash is required include: -
Strikes, Floods, Failure of important customers.

Slow of cash collection

Rejection of orders by customers due to their dissatisfaction
Rise in cost of raw material etc.

 Speculative Motive
It means to make use of profitable opportunities by firm.
Sometimes, the firm wants to make use of such profitable
opportunities, which are outside the operation of the business. For
this purpose, firm retains some Cash. Some of these opportunities
are:-
1. Opportunity to purchase raw material at low price by payment of
cash immediately
2. Opportunity to purchase securities at falling prices.
3. Purchasing raw material at a time when its prices are the
lowest.

 Compensation motive
One more objective to maintain cash is to compensate for
providing free services by bank to the business. Bank provides a
number of services to its customers, like clearance by cheques,
credit information about other customers. For these services bank
charges commission, but some of the services are provided by
them are free of cost, for which they require indirect compensation.
For this purpose they wish their customers to maintain minimum

51
 cash balance. The firm for its business transaction can’t use this
bank balance, but bank can use it to earn profit and thus
compensate itself for the cost to services to the customers.

Objective of Cash Management:

 To follow Payment Schedule Strictly

To make payment according to payment schedule is the core
objective of the Cash Management. This not only strengthened the
Solvency of the firm but also of the firm.

The basic objective of Cash Management is to meet the Cash

requirement of business i.e. to pay its liabilities in time. In other
words, firm needs Cash to meet its routine expenses including
wages, salary, interest, dividends, taxes etc.

 To Minimize cash Balance

The second objective of Cash Management is to minimize Cash
balance. In order to minimize the cash balance, there is need to co-
ordinate with two contradictory aspects. Excessive amount of cash
balance helps in quicker payment and all advantages relating to
such payments can be taken. But it would mean that a large
amount of Cash fund will remain unused. It will reduce profitability
of business. Contrarily, when Cash available with the firm is unable
to pay its liabilities in time, it threatened the basic solvency and
goodwill of the firm. Therefore, the level of Cash in time should be
optimum. Firm should therefore determine its cash requirement
considering all the factors.

52
Cash planning and Cash Forecasting
Cash planning is crucial in developing the overall operating plans of
the firm. The Cash planning and Cash forecasting must be
coordinated to get effective overall cash control.

Optimal Investment of surplus cash

Optimal level of Cash must be maintained. Any Cash more than
this level is called Surplus. The objective of the Cash Management
is to effectively utilize the Surplus Cash. This Surplus Cash should
be invested in Short-term obligation To reduce loans outstanding
and thus obtain interest saving Purchase of own securities To
develop new products and improve old ones etc.

Devices of Cash Management:

The following are the main devices of Cash Management:-
Cash Budget
Cash Flow Statement
Cash Flow Ratio
Cash Management Models.

Cash Management at Vijay Solvex LIMITED:-

The Cash Management at the Vijay Solvex Limited is controlled by the Top
Management of the Unit. The amount to be invested in securities or other
investment is determines by the top management.
The Cash Flow statements are prepared on a monthly basis so to have the track
and control over the cash. The Cash Flow statement is prepared to project
weather the Unit have sufficient cash to meet its requirement or not. The
Managing Director has the disbursements power up to one Lac and for any

53
disbursement over and above, the matter is refereed to the Board of Director.
The Chief Account Officer is directly responsible for the Cash Management of the
Unit. The Board of Directors and the Senior General Manager of Vijay Solvex
Group has the power to check the Units any time.

2. INVENTORY MANAGEMENT
A large part of total assets of business is found in the form of inventory. To
observe that investment in inventory is not unnecessarily high and management
should keep proper control on the amount and structure of inventory. Because
among all the current assets of the business, inventory is the least liquid and any
wrong in the management of inventory cannot be corrected easily and it can be
ever costly for the firm. Funds of the firm which are procured from internal as well
as external sources need to be managed inventory and for this purpose inventory
should be aware of all the factors affecting the level of management and the
methods to control it.

The main objective of inventory management is to determine the level for each
type of inventory. For this purpose the purchasing and carrying costs should be
compared with their benefits. For example, when a firm purchase in bulk quantity,
it’s out of stock risk decrease but in case it continues to purchase, it reaches a
point where it’s carrying costs exceeds its benefits. Therefore, the management
should maintain only a proper level of inventory. Not only the financial manager is
concerned with inventory management but it also affects marketing and
production managers. For determining an optimum level of inventory proper co-
ordination among all of them is essential.

In manufacturing concerns inventory may includes: -

 Inventory or raw material
 Inventory of work-in-progress
 Inventory of finished goods

54
  Stores and supplies

The management of inventory is very important because it affects the whole

production policy and ultimately finances are affected. There are many risk and
cost of holding inventory. These are discussed below: -

Risk of Price Decline

There is always a risk of reduction in the prices of inventories by
the suppliers. This may be due to competition or depression in the
market.

Capital cost
Maintaining of inventories results in blocking of the firms financial
resources. The firm has therefore to arrange for additional funds to
meet the costs of the inventories.

Risk of Obsolete
The inventories may become obsolete due to improved technology,
changes in requirement etc. In Vijay Solvex ltd there is also a risk of
obsoletion because of chance of Fashion.

Storage and Handling Costs

Holding of inventories also involve cost of storage as well as
handling of materials. The storage costs include the rental of the
Godowns, Insurance charge etc.

55
Objectives of Inventory Management:
 To ensure that the supply of raw material and finished goods will remain
continues so that production process is not halted and the demand of the
customers is duly met.
 To minimize the carrying costs of the optimum level.
 To keep investment in inventory at the optimum level.
 To reduce the losses of theft, obsolescence and wastage etc.
 To minimize inventory ordering costs.

56
Management of Inventory at Vijay Solvex LIMITED

Raw Material
Without raw material, the production is not possible. Raw Materials are those
basic inputs that are converted into finished products through the manufacturing
process. Raw Material inventories are those units which have been purchased
and stored for future productions.

Work in Progress
Work in Progress is that stage of stock, which is between the raw material and
finished goods. In Vijay Solvex Limited the Work in Progress is valued at costs
including appropriate overheads.

Management of Stores and spares

To manage spares and stores forecasting is essential. The forecasting is based
on the past experience. Like other inventory, the firm has to maintain a minimum
level of stock and spares. The main techniques of inventory management are
these stores as follows:-
Reorder Point
EOQ
Reorder point means the point of inventory level at which the new order is
places. For determining reorder point two information are needed.

Lead Time
The Usage Rate
Lead-time is the time period between the date of placing order and the date of
receiving delivery.
Average Usage is that quantity of new material, which used daily in business.
Reorder Point = Lead Time * Average Usage

57
Economic Order Quantity or EOQ
EOQ means the quantum of material, which is to be purchased by each order so
that the sum of ordering costs of material and its carrying costs are minimum.
One issue in the inventory management is that at one point of time or by each
order how much quantity should be purchased.
In Vijay Solvex Limited, the inventory of stock and spares is very closely verified
and proper procedure is adopted.

EOQ = √[2RO/C]
EOQ = Economic Order Quantity
R = Total cost per order of that item
O = Ordering cost per order of that item
C = Carrying cost per unit per annum
Management of Finished Goods
Finished Goods are goods, which are ready for sale. Almost every firm maintains
a minimum level of finished goods in order to make continuous supply of goods
to the consumers.

3. Management of Receivable
A major part of firm’s assets is in the form of receivable. Receivables are created
due to credit sales. A firm sells goods on credit to save itself from its competitors
and to attract potential customers. Firm’s funds are blocked during the period
between the date of actual sales and the date of payment arising from credit sale
and thereby creation of receivable.

58
Meaning of Receivable
Hampton has defined receivable as under:-
“ Receivable are assets accounts representing amounts Owned to the firm as a
result of the sales of goods or Services in the ordinary course of business’’.

Receivable are also termed as trade receivable, account receivable, customer

receivable, book debt trade acceptances, sundry debtors, bills receivable etc.
Management of Receivable- is also called management of trade credit. The
Receivable arising from credit sales contain risk element. In cash sales, such risk
does not exist. The amount of credit sales is realizes in future.

Characteristics of Receivable:
 It involves as element of risk, which should be carefully analyzed. Cash
sales are realized at time of sales. But contrary to it, on credit sales as the
cash payment has yet to be received, so it involves risk of non-recovery.
 It is based on Economic Value. To the buyer the economic value in the
goods or services passes immediately at the time of sales, while the seller
expects an equivalent value to be received latter on.
 It implies futurity. The cash payment for goods and services received by
the buyer will be made by him in future period.

59
Purpose of Receivable
There are following three purpose of investing in or maintaining receivable:-
(1) Growth in Sales

In comparison to cash sales, firm can make high sales by selling on credit,
because, many customer do not want to pay cash. Also according to
the rules stated by the buyer in the early contract forces the company
to supply on credit. The final payment is made after the physical
inspection by the buyer in his country with the sample shown.

(2) Increased Profits

Due to credit sales of goods and services, the total sales of business can
increases. As a result, its profits also start increasing.

(3) Response to Competition

Various firms sell goods on credit to their customers only because their
competitors are doing so. If the firm does not follow credit policy of its
competitors, its total sales will decrease because its customers will be attracted
towards other firms.

4. Ratio Analysis

60
CURRENT RATIO
Meaning
The ratio reveals the relationship between current assets and current liabilities
.This ratio also reveals that how efficiently the working capital of the firm is used.
Particular Formula 200 2008
7

Current ratio Current Assets/Current Liabilities 1.56 1.26

It shows the relationship between current assets and current liabilities. It is a

measure of general liquidity. It is also called as Working Capital Ratio. The Ideal
current ratio is 2 : 1. The Current Ratio of Vijay Solvex limited is meets the
required level of efficiency and represents the good image of the company.

61
Inventory Turnover Ratio
Meaning:-
This ratio indicates that the stock has been utilized efficiently or not. Also it is
used to check up that the required minimum stock has been invested or not. Only
proper inventory turnover enables the business to earn a reasonable margin of
profit.
Particular Formula 2007 2008
Inventory turnover Cost of Goods 8.59 7.79
ratio Sold/Average
stock

The Inventory Turnover Ratio indicates the efficiency of the firms in

producing and selling its products. It is calculated by dividing Sales by
Average Stock.
Every firm has to maintain a certain level of inventory of finished goods so as
to be able to meet the requirements of the business. But the level of inventory
should neither be too high or too low. It is harmful to hold more inventories.
Inventory Turnover Ratio would indicate whether inventory has been efficiently
used or not. The purpose is to see whether only require the minimum funds
have been locked in inventory. It measures the velocity of conversion of the
stock into sales. Usually high inventory turnover ratio indicates efficient
management of inventory because more frequently the stocks are sold, the
lesser money will be required to finance the inventory. A low inventory
turnover ratio indicates an inefficient management of the inventory.

There are no thumb rules or standard inventory turnover ratio for interpreting
the inventory turnover ratio. The norms may be different for different firms
depending upon the nature of the industry and business conditions.
As the inventory turnover ratio of Vijay solvex Limited is7.79, it shows the
greater efficiency of the company.

62
Debtors Turnover Ratio
Meaning:-
Debtor turnover ratio is calculated to measure the collect ability of accounts
receivable and tell about how the credit policy of the company is enforced.

Particular Formula 2007 2008

Debtor turnover Net Credit Sales / 18.48 18.90
ratio

It indicates the number of times the debtors are turned over during the year.
The higher the value of debtor’s turnover the more efficient is the
management of the debtors or more liquid is the debtors. But a precaution is
needed while interpreting a very high debtors turnover ratio because very
high ratio may impel a firm inability due to the lack of resources to sell on
credit thereby losing sale and profits.

63
 9
ANALYSIS
AND
INTERPECTIO
N

64
Factors Determining The Working Capital Requirements:
(1) Nature or Character of the business
The Working Capital requirement of a firm depends on the nature
of its business. Public utility undertakings like electricity, water supply,
telecom and railway etc. require very limited working capital because they
offer cash sales only supply the services and do not have creditors or
debtors.
(2) Size of the business
Working Capital requirements of a concern are directly
influenced by the size of the business. Greater the size of a business unit,
larger will be the requirement of the Working capital.

(3) Manufacturing Process

In manufacturing business, the requirement of working Capital
increases in direct production to the length of the manufacturing process.
The longer, the manufacturing process, the raw material and other
supplies have to be carried out long before the finished product is finally
obtained.

(4) Credit Policy

The credit policy of concern in dealing with its debtors and creditors
influences the requirement of Working Capital. Some concern purchases
its product on credit for three months and sell its product and services on
one credit needs lesser amount of Working Capital. In Vijay Solvex limited,

65
 the credit period for purchases is 90 days and normally sales is done on
credit basis as it does only export.

(5) Business Cycle

Business Cycle also determines the amount of the Working
Capital. In the period of boom, when the business is prosperous, there is
need for layer Working Capital due to increase in sales, rise in prices,
increase in production etc. On the contrary, in the times of depression,
when there is a down swing of the cycle business needs less working
Capital because a lot of the capital lies idle.

(6) Other Factors

Certain other factors such as operation efficiency,

management ability, irregularity of supply, import and export policies also

influence the requirement of Working Capital.

66
Working Capital Assessment:

a). Fund Based Limits : M/s Vijay Solvex Limited is continuously-earning

profits and classified standard assets as on 31.03.2008. Working Capital Limit is
for whole company

INVENTORY/RECEIVABLE NORMS (WHOLE COMPANY)

(Rs. In Lacs/level in months)

Accepted (level 2004-05 2005-06 2006-07 2007-08

of F.Y. 2006-07
R.M. 1147.00 590.01 572.87 2460.00 1672.50
(0.56 M) (0.35M) (0.29M) (0.94M) (0.62 M)
WIP 90.00 49.48 51.75 90.00 90.00
(0.04M) (0.03M) (0.02M) (0.03M) (0.03)
F.G. 880.75 605.56 1163.98 1139.75 1139.75
(0.35 M) (0.29M) (0.47M) (0.34M) (0.33M)
Trading Goods 600.00 188.43 979.06 800.00 800.00
(2.00 M) (0.85M) (2.19M) (1.63M) (1.55M)
Receivable 1938.00 2037.14 2416.38 2348.00 2468.00
(0.71 M) (0.90 M) (0.89 M) (0..64M) (0.65M)
Sundry Creditors 230.00 186.57 334.28 280.00 280.00
(0.10 M) (0.10M) (0.14M) (0.09M) (0.09M)

From the above, it is observed that projected levels of raw materials, trading
goods & finished goods and receivables are near about the accepted level for
financial year 2007-08 by the bank. In the year 2007-08 the level of raw material

67
 is higher side due to build up of inventory by short term corporate loan of
Rs.1000 Lacs.

ASSESSMENT OF M.P.B.F./A.B.F. (WHOLE COMPANY)

(AMOUNT RS. IN LACS)
S.N. Particulars 31.03.05 31.03.06 31.03.07 31.03.08
1 Total Current Assets 4892.85 6427.55 8121.85 7474.35
2 Other Current Liabilities (Other than Bank 1412.51 2631.53 3093.32 1759.44
Borr.)
3 Working Capital Gap 3480.34 3796.02 5028.53 5714.91
4 Actual/projected net working capital 1707.52 1914.17 2028.53 2714.91
5 Assessed Bank Finance 1772.82 1881.65 3000.00 3000.00
6 Bank Finance to total Current Assets (%) 36.23 29.27 36.94 40.14
7 Net Working Capital to Total Current Assets 34.90 29.78 24.98 36.32
(%)
8 Sundry Creditors to Total Current Assets (%) 3.81 5.20 3.45 3.75
9 Outside Current Liabilities to Total Current 28.87 40.94 38.09 23.54
Assets (%)
10 Total Current Liabilities including Bank 3185.33 4513.18 6093.32 4759.44
Finance

9000 8121.85
8000 7474.35
7000 6427.55
5714.91
6000 4892.85 5028.53 WorkingCapital Gap
5000 3796.02
3480.34 Total Current Liabilities
4000 3093.32
2631.53 Total Current Assets
3000 1759.44
2000 1412.51
1000
0
2005 2006 2007 2008

68
b. Non Fund Based Limits:

The company at present is availing L/C and B/G limits of Rs.400 lacs and Rs.100
lacs respectively which were assessed for achieving estimated sales of Rs.32957
lacs for the financial year 2007-08 For the financial year 2007-08, the Company
has achieved net sales of Rs.32742..25 lacs and estimated/ sales for the year
2006-07 /2007-08 at Rs.44108 lacs/ Rs.45285 lacs respectively and has
requested for renewal of L/C limit and Bank Guarantee Limit at existing level
which is recommended for sanction.

GROSS WORKING CAPITAL =TOTAL CURRENT ASSETS

GROSS WORKING CAPITAL =7474.35 Lac.

NET WORKING = CURRENT ASSETS – CURRENT LIABILITIES

NET WORKING CAPITAL = 7474.35 - 1759 = 5714Lac.

69
 10
FINDINGS

70
The Company has set itself the task of consolidating and enhancing its position
in Indian edible oil market, both in terms of volumes as well as customer
satisfaction, in the medium term. The company is executing various initiatives in
terms of process and product improvement to achieve this goal.

Results of operation:

The Company generated profit from operations after tax of Rs.5.42 corers. After
meeting working capital requirements and extraordinary item payments the
Company earned net cash inflow of Rs 17.83 corers. From its operations in
2007-08. Profit before tax and extra-ordinary items improved by Rs 7.47 corers in
2007-08. After providing for taxes at Rs 2.06 corers (Including deferred tax and
fringe benefit tax), profit after tax for the current year improved by 5.42 corers.

Revenues:
The Company was able to earn revenue through the following streams of
business activities:

1. Current Assets in 2008 is Rs.7474.35 Lacs,which was Rs.8121.85Lacs in

2007.
2. Current liability in 2008 is Rs.1759.40Lacs, which was Rs.3093.32 in
2007.
3. Working Capital gap in 2008 is Rs. 5714.91Lacs, which was
Rs.5028.53,Lacs in 2007.
4. Total operating cycles period is 60 days

71
Liquidity:

As at March 31, 2008, Creditors are Rs. 280 Lac. During the year the Company
in 2008 take the inventory by short term corporate loans of Rs. 1000 Lac.
Debtors are Rs. 2468 Lac the year the company in 2008. Company’s current
ratio is 3.95. the current assets & current liabilities of company are Rs.152.85 &
Rs. 38.72 corers in 2008.
principal sources of liquidity are:

• Existing cash and cash equivalents

• Cash generated by operations
• secured & unsecured debts.
• Funds from short term liabilities.

Capital expenditure and Investments:

During the year, the Company incurred Rs 3.62 corers. Towards capital
expenditure. E.g. in gross block & 1 corer in investments related to capacity
expansion in the existing plants.

Staff costs:

The staff costs in 2008 is Rs.6.22 corers, which was Rs.5.60 corers in 2007.
The increase is mainly due to full year impact of salary revision made in the
previous year and incremental manpower for ongoing activities at VSL and
Product Development initiatives.

Material Cost:

The materials cost in 2008 is Rs.523.07 corers, which was Rs.388.02 corers in
2007.Raw materials the major input material, witnessed a steep increase during
the year (42% increases on point to point basis compared to March 2007). The
Company also managed to secure from global sources, components at lower
costs to offset the materials price induced input cost increases.

72
 11
SWOT ANALYSIS

73
STRENGTH:

Strength captures the positive aspects internal to your object that add value or
offer you a competitive advantage. This is your opportunity to remind yourself of
the value existing your object.

 Excellent Market Coverage.

 Quality – Conscious Organization; the Company is always able to
compete on Quality.
 Experienced work force.
 The employees are satisfied with their present job profile.
 Licenses renewed
 Access to best Technology
 Company is making full utilization of their potentials.

WEAKNESS:

Weakness capture the negative aspects internal to your object that detract from
the value you offer or place you at a competitive disadvantage. These are areas
you need to enhance in order to compete with your best competitor.

 The Price of Company Product is high than the Competitors.

 Employee’s turnover.
 Narrow product range.
 Unorganized labour contractors
 Lack of HR development
 Lack of liquidity Management

74
OPPORTUNITY:

Opportunities reflect the potential you can realize through implementing things.
Opportunities may be the result of growth, lifestyles changes, and resolution of
problems associated with current situations.

There so many opportunities to make better utilization of the work force if the
management gives better cash reward to the employee’s than worker will work
hardly.

 New product development.

 Increasing the export of the Products in Foreign.
 Company should replace the old machine so that workers may able to
give more production.
 Benchmarking HR practices
 Sharing HR practices with other locations.

THREATS:

Threats include factors beyond your control that could place your things at risk.
These are also external –you have no control over them, but you may benefit by
having contingency plans to address them if they should occur.

 Surrounded by the sick industries.

 New Domestic & MNCS are ready for entry in Edible Oil Business in near
Future. So this will increases Competition in the oil business. So Potential
Entrant will Propose Threat to the existing Company.
 Problem of labour turnover.
 As the company is in working since January 1987 hence there is threat to
the company that it should replace the old machine and to install the new
machinery

75
 There is need of development in technology change and to change the
present market policy.

12
SUGGESTIONS

76
 Recommendations & Suggestions

After studying the Working capital Management of vijay solvex ltd., I would

like to give few suggestions to the company so that it can run smoothly in

future. These are as follows:

• Efforts should be made to achieve it’s target, so that company can run

smooth.

• Introduces new production policy to helps to reducing cost of production

• There should be timely check of the customer’s problems for smooth
functioning of the company.
• The company should enter into other oil market to increase its profits.e.g.
Petroleum refining.
• One way to reduce man power cost is to complete one job in one stretch.
• Relation between the management and the employees should be made
more effective so that there may not be any communication barrier which
can affect the enter price in any way.
• Company can introduce more brands & products in it’ product line.
• Company should purchases the raw material from different-2 suppliers to
take the benefit of price differentiation and to reduce cost of production.
• Traveling expenses can be reduced as:-

Local transportation: combining the activities of different dep’t at one place.

Outside travel: - proper justification

77
 13
CONCLUSION

78
 Conclusion

 The study work has been done on the project topic “Working capital
Management of vijay solvex ltd.” Vsl has a key role as a producer of edible
oil in Indian market. Company has agreed position in the market. Company
does not spend much on advertisement, after it the demand for the
company products is increasing.

 The company is increasing the no. of it’s dealers. A number of initiatives

put forward by the cross functional team of Young Executives (YEs) as part
of their annual business plan is on their way to implementation.

 After robust growth over the past few years, Indian economy witnessed a
slowdown during 2007-08. GDP growth for 2007-08 as projected by the
Government at 8.7% shows a deceleration from the high growth of 9.4%
and 9.6%, respectively, in the previous two years. With the economy
modernizing, globalizing and growing rapidly, some degree of cyclical
fluctuation is to be expected.

 Since then Vsl. has been a major presence in India's edible oil industry with
a tradition of technological leadership, achieved through tie-ups with
international technology leaders and through vigorous in-house R&D.

The Vsl. Also takes partnership with government agencies, local

communities, NGOs and academic institutions to enhance their strengths
and help us leverage their expertise, reach and resources.

79
APPENDIX

80
 APPENDIX-1
Assessment of WC facilities-
[If the assessment of the WC limits is based on any other parameters, please
specify them along with an explanation]
a. Inventory & receivable levels: (WHOLE
COMPANY)
(Rs. In Lacs/level in months)
Accepted (level 2004-05 2005-06 2006-07 2007-08
of F.Y. 2006-07

R.M. 1147.00 590.01 572.87 2460.00 1672.50

(0.56 M) (0.35M) (0.29M) (0.94M) (0.62 M)
WIP 90.00 49.48 51.75 90.00 90.00
(0.04M) (0.03M) (0.02M) (0.03M) (0.03)
F.G. 880.75 605.56 1163.98 1139.75 1139.75
(0.35 M) (0.29M) (0.47M) (0.34M) (0.33M)
Trading Goods 600.00 188.43 979.06 800.00 800.00
(2.00 M) (0.85M) (2.19M) (1.63M) (1.55M)
Receivable 1938.00 2037.14 2416.38 2348.00 2468.00
(0.71 M) (0.90 M) (0.89 M) (0..64M) (0.65M)
Sundry Creditors 230.00 186.57 334.28 280.00 280.00
(0.10 M) (0.10M) (0.14M) (0.09M) (0.09M)

b. Assessed Bank Finance

(Rs. In lacs)
S. Particulars 31.03.05 31.03.06 31.03.07 31.03.08
No.
1 Total Current Assets 4892.85 6427.55 8121.85 7474.35
2 Other Current Liabilities (Other than Bank 1412.51 2631.53 3093.32 1759.44
Borr.)
3 Working Capital Gap 3480.34 3796.02 5028.53 5714.91
4 Actual/projected net working capital 1707.52 1914.17 2028.53 2714.91
5 Assessed Bank Finance 1772.82 1881.65 3000.00 3000.00
6 Bank Finance to total Current Assets (%) 36.23 29.27 36.94 40.14
7 Net Working Capital to Total Current Assets 34.90 29.78 24.98 36.32
(%)
8 Sundry Creditors to Total Current Assets (%) 3.81 5.20 3.45 3.75

81
9 Outside Current Liabilities to Total Current 28.87 40.94 38.09 23.54
Assets (%)
10 Total Current Liabilities including Bank 3185.33 4513.18 6093.32 4759.44
Finance

c. Assessment of EPC/FBD limits: - NIL -

d. Computation of LC limits for WC : Rs.400.00 Lacs

Annual RM Consumed under LC 15 % Rs.6121 Lacs
Monthly RM purchases Rs.510 Lacs approx.
Usance --
Lead time 30 Days
L/C Limit required Rs.510 Lacs
Recommended LC limit Rs.400.00 Lacs

e. Assessment of BG limits: Rs.100.00 Lacs

Outstanding BGs as on 31.12.2006. Rs. Nil
Add: BGs required during the Rs. Nil
period………
Less: Estimated maturity/cancellation of NIL
BGs during the period …………….
Requirements of BGs Rs. 100.00 lacs (contingency reqt.)
Recommended BG limit Rs. 100.00 lacs

f. Efficiency ratio:
Particulars 31.03.0 31.03.0 31.03.07 31.03.08
5 6
Net sales to Total Tangible Assets 3.39 3.40 3.68 4.06
[times]
PBT to total Tangible Assets [%] 5.45 4.06 8.07 9.57
Operating cost of Sales [%] 91.26 90.98 90.44 90.20
Bank Finance to Current Assets [%] 36.23 29.27 36.94 40.14
Inventory + Receivables to Net Sales 51 61 59 52
[days]

82
 APPENDIX-2
VIJAY SOLVEX LTD.
CREDIT RISK ASSESSMENT (CRA) SYSTEM
SET - I RISK RATING SUMMARY FOR WORKING CAPITAL LIMITS AND TERM
LOAN.

Financial Risk parameters Value Score SCORE RATING

A. STATIC RATIOS >90 SBBJ-1
CURRENT RATIO (out of 5) 1.49 3 <90>75 SBBJ-2
TOL / TNW (out of 5) 0.84 2 <75>65 SBBJ-3
PBDIT / INTT. ( Times) (out of 5) 3.89 5 <65>50 SBBJ-4
PAT / NET SALES (%) (out of 1.27 0 <50>45 SBBJ-5
10)
ROCE (%) (out of 5) 10.59 3 <45>35 SBBJ-6
(INV. + REC.) / NET SALES ( Days )(out of 47 DAYS 5 <35>25 SBBJ-7
5)
TOTAL SCORE OUT OF 35 23 <25 SBBJ-8
Trends in Performance 3 1
TOTAL SCORE OUT OF 38 24
B. FUTURE PROSPECTS
Projected Profitability (0 TO 3) 0
Non Achievement of Projected Profitability (0 -1
to -3)
Sub - Total Score (Out of 3) -1
C. RISK MITIGATION :
COLLATERAL SECURITY FINANCIAL
STANDING
Sub - Total Score (Out of 6) 6 6
AGGREGATE FIN. RISK SCORE out of 47 29
47
Qualitative Risk Factors (Score from -1 to -10)
BUSINESS RISK PARAMETERS Max.
Score
Technology 4 2
Capacity Utilisation v/s Break Even Point 2 2
Compliance of Environment Regulations 2 2
User/Product Profile 2 2
Consistency in Quality 4 4
Distribution Network 2 2
Consistency if Cash-flows 4 2

83
Aggregate Business Risk Score 20 16
INDUSTRY RISK PARAMETERS Max.
Score
Competition 2 2
Industry Outlook 2 1
Regulatory Risk 2 1
Contemporary Issues like WTO, etc. 2 2
Aggregate Industry Risk Score 8 6
MANAGEMENT RISK PARAMETERS Max.
Score
Integrity 3 3
Track Record 3 2
Managerial Competency /Commitment 3 2
Expertise 2 2
Structure & Systems 2 1
Experience in the Industry 2 2
Credibility : Ability to meet Sales Projections 2 2
Credibility : Ability to meet Profit (PAT) 2 2
Payment Records 2 2
Strategic Initiatives 2 2
Length of relationship with the Bank 2 2
Aggregate Management Score 25 22

OVERALL SCORE 73
OVERALL RISK RATING SBBJ-3

TREND IN PERFORMANCE
PARAMETER Score Score Score Score
2001 2003 2004 2005
CR 1.48(5) 1.47(5) 1.50(5) 1.49(5)
TOL/TNW 0.60(5) 0.93(5) 0.91(5) 0.84(5)
PAT/NET 1.08(0) 1.76(0) 1.39(0) 1.27(0)
SALES
ROCE 7.61(0) 6.63(0) 11.87(3) 10.59(3)
10 10 13 13

84
APPENDIX-3

SET -II RISK RATING SUMMARY FOR TERM LOAN. -

Financial Risk parameters Value Score SCORE RATIN
G
A. STATIC RATIOS >90 SBBJ-1
CURRENT RATIO (out of 5) 1.49 5 <90>75 SBBJ-2
TOL / TNW (out of 5) 0.84 5 <75>65 SBBJ-3
PBDIT / INTT. ( Times) ( out of 5) 3.89 0 <65>50 SBBJ-4
PAT / NET SALES (%) (out of 10) 1.27 0 <50>45 SBBJ-5
Gross average DSCR for all loans (out of 10) - - <45>35 SBBJ-6
TOTAL SCORE OUT OF 25 normalised out 14 <25 SBBJ-8
of 35
Trends in Performance 3 1
TOTAL SCORE OUT OF 38 15
B. FUTURE PROSPECTS
Projected Profitability (0 TO 3) 0
Non Achievement of Projected Profitability (0 -1
to -3)
Sub - Total Score (Out of 3) -1
C. RISK MITIGATION : COLLATERAL
SECURITY FINANCIAL STANDING
Sub - Total Score (Out of 6) 6 6
AGGREGATE FIN. RISK SCORE out of 47 20

Qualitative Risk Factors (Score from -1 to

-10)
BUSINESS RISK PARAMETERS Max. Score Co.'s Score
Technology 4 4
Capacity Utilisation v/s Break Even Point 2 2
Compliance of Environment Regulations 2 2
User/Product Profile 2 2
Consistency in Quality 4 4
Distribution Network 2 2
Consistency if Cash-flows 4 2
Aggregate Bus. Risk Score 20 18

INDUSTRY RISK PARAMETERS Max. Score Co.'s Score

Competition 2 2
Industry Outlook 2 2
Regulatory Risk 2 1

85
Contemporary Issues like WTO, etc. 2 2
Aggregate Ind. Risk Score 8 7

MANAGEMENT RISK PARAMETERS Max. Score Co.'s Score

Integrity 3 3
Track Record 3 2
Managerial Competency /Commitment 3 2
Expertise 2 2
Structure & Systems 2 2
Experience in the Industry 2 2
Credibility : Ability to meet Sales Projections 2 2
Credibility : Ability to meet Profit (PAT) 2 2
Payment Records 2 2
Strategic Initiatives 2 2
Length of relationship with the Bank 2 2
Aggregate Management Score 25 23

OVERALL SCORE 68
OVERALL RISK RATING SBBJ- TL- 3

86
 APPENDIX-4

Details about Associate Concerns / subsidiaries as per Audited results of

31.03.2005

PARAMETERS/COMPA Saurabh Deepak Veg Pro Raghuvar India Vijay

NY Agrotech Pvt Pvt Ltd Ltd Industries

Ltd
ACTIVITY Oil Industry Oil Industry Oil Industry Oil Milling
Electricity Electricity
Electricity
Generation Generation
Generation
CONSTITUION Pvt Ltd Pvt Ltd Ltd Company Firm
Company Company
DIRECTORS / Sh SaurabhData Sh Deepak Sh NL Data Sh Sh DK Data
PARTNERS Smt Mohini Devi Data Smt BL Data Sh NL Data –
Smt Neelima
Data Mohini Devi Vijay Data HUF BL Data
Smt Neelima Sh DK Data – HUF
Data Gangadeen
Vijay Kumar
HUF
BANKERS / FIs SBBJ, Alwar SBBJ, Alwar SBBJ, Tilak SBBJ,
Marg, Jaipur Khairthal
OPINION OF BANKS / Reputed Reputed Reputed Reputed
FIs Customer Customer Customer Customer
FB LIMITS* (Rs. In Lacs) 1275.00 1475.00 1900.00 350.00
Existing
NFB LIMITS (Rs. In 10.00 10.00 25.00 --
Lacs) Existing
TOTAL LIMITS (Rs. In 1285.00 1485.00 1925.00 350.00
Lacs) Existing
ASSETS Standard Standard Standard Standard

87
CLASSIFICATION
CRA RATING SBBJ-3 SBBJ-3 SBBJ-3 SBBJ-3
NET SALES / INCOME 7446.83 9994.38
(Rs. In Lacs)
NET PROFIT / LOSS 151.35 225.59
(Rs. In Lacs)
TNW (Rs. In Lacs) 670.25 1189.98
NET BLOCK (Rs. In 352.35
Lacs)
TOL / TNW 2.22 1.92
CR 1.34 1.24
INTER LOCKING OF
FUNDS, IF ANY

*Including term loan sanctioned to the company/firm for wind power project

88
BIBLIOGRAPHY

89
Books:

KHAN & JAIN, FINANCIAL MANAGEMENT

PRASSAN CHANDRA , FINANCIAL MANAGEMENT

I M PANDEY , FINANCIAL MANAGEMENT

Manuals:

Annual Reports 2007-08, 2006-07…

News paper:

Economic times

Websites:

www.dataoils.com

www.vsl.in

www.Investorpedia.com/vsl/balance sheet

90