General information

Company Profile

Company S Name : Address:

Excel Crop Care Ltd. 6/2 Ruvapary Road, Bhavnagar. 364005

E-mail : Registered Office :

eccl@excelcropcare.com 184-87,swami vivekanand road , Jogeshwari (west) Mumbai. 400102

Forms of the unit: Establishment:

public limited company 19th November 1941 (in Bhavnagar 1969)

Board of director:

D.S.Shath(chairman) K.C.Shroff(vice chairman) A.C.Shoff(M.D) Dipesh.K.Shroff(Executive Director) Prakash.K.Shroff P.V.S.Manyan A.D.Mango J.R.Naik M.L.Shah Mukul.G.Asher Sandeep Junnarkar

Vice president:

V.K.Parmar

Banker :

Bank of india City bank Syndicate bank State bank of india Abn Amro bank HDFC ICICI Uti bank Standard chartered bank

Auditors: Type of product : Branch offices:

S.V.Ghatalia & associates chartered accountants Agro chemical and industrial chemical. New Delhi , Calcutta , Hyderabad , Bangalore , Madurai-patna , headband

Company logo:

History and development Excel industries ltd. has comes a long way since its origin in a kitchen laboratory in 1941 and then the company has started on 5th September 1960. As a private limited company and became public limited company in 1965. The company manufactures basic industrial chemicals, pesticides, fumigants etc. Over the years, excel came to be known as an industry leader in the area of agrochemicals and agro chemicals intermediates. using its expertise in chemical technology. Excel also expanded its chemicals manufacturing range to include water treatment chemicals and polymer additives and few other specialty chemicals. Excels commitment to sustainable development led us to venture into the field of environment and bio-technology. Excel is a pioneer and technology leader is rapid conversion of municipal solid waste to organic compost. Organisation organic plant protection and soil / crop productivity enhancers are well accepted in the marker. In order to ensure focused attention to the expanded range of activities. The agro business division was spun off as a separate company. Excel crop care limited in 2003. Excel crop care was set up in 2003 and actively promotes integrated pest management (IPM) to Indian farmers. Excel is organized into two divisions. i.e 1. chemicals 2. environment and biotech Ever since their inception, organisation has built up a solid history and reputation of developing, Manufacturing and exporting chemicals. They have achieved over 100 product and process break through that even now are serving the specific needs. Organization has excellent research facilities in Mumbai and at their manufacturing locations. During the last six decades, we have received numerous awards in recognition of our dedication and excellence in the field of agro chemicals and others.

Mission for next 50 years excel industries limited We the member of excel family pay our respects to the memory of our founder late shri C. C. Shroff our dear pappa. On this 19th November.1990 making the commencement of the 50th year of what is now excel and rededicate ourselves to further fulfil the vision of our founder to make humble contribution to county ,industry , rural society and our company through technology ,innovation and through individual and collective endeavour. Satisfaction of our share holders ,customer ,our own people ,suppliers ,institutions ,investors ,society , community is paramount to us. We will make whole hearted efforts for the fulfilment of this objective through our interactions and interdependence with them. India our county is blessed with abundant national resources in terms of soil, sunlight, rain, ocean, rivers, minerals, underground resources, forests mountains and snow. We are fortunate to have a back ground of thousands of years of culture and civilization where values, principles and respect for nature are key factors. We the member of excel family will follows the path of imbibing our cultural spirit, harmoniously working to preserve, utilized and protect our natural resources and to continue to base our practises on values and principles. We have a responsibility towards industry and community, rural community is heart of India. We will be friends and contributors to well being of both industrial and rural community. Not only through our products and services but also through our knowledge and expertise. We will be of assistance of community and industry. Company is togetherness, we will work and contribute, learn and grow together in the spirit of saha viryam. This is our resolution and we resolve so, we pray to the almighty that we be granted the strength to fulfil our mission.

Excel in india

1 .Excel industry ltd. jogeshwari, Mumbai. 2 .Excel industry ltd ambali hill,andheri west ,Mumbai. 3 .Excel industry ltd raigadh dist. Mumbai. 4.Excel industry ltd M.I.D.C.area lote parshuram, chiplan. 5 .Excel crop care ltd ruvapari road ,Bhavnagar. Gujarat. 6 .Excel industry ltd. Gajod, kutch. 7 .Excel industry ltd M.I.D.C area Roha. 8.Excel industry ltd. Silvassa.

Vision Statement At excel crop care, Our route to success is very clear.lead the way in whatever you do,but stay by the side of customer and societal obligations,produce the world s best product range,but make them economically and ecologically viable. We rate our success not by the glowing numbers in our rising prosperity curve of our customers, the farmers,we see our wealth in the radiance of their healthy farms, in the smile of assurance that lights up their faces, in the improvement of their economic and social well-being. We are convinced that our future is linked with that of the land and that of the farmers. In their success lies our victor and in their smiles ,lies our very existence. Mission Beyond crop protection ,behind every farmer. Beliefs : Do unto others as you want to do unto you  Work is worship  Self-education is the best education  Industrys primary responsibility is to save the society.  From the west to tnhe best  Quality is more important than quantity.  Harmony and growth go hand to hand.  Help, service and guidance even after sales.  In any successful work there is 1% inspiration and 99% hard working.

Organization chart

Vice president

General president

Senior manager

Manager

Personnel

Production

Marketing

Engineering

R&D

Administration

Executive

Officer

Staff

Supervisor

Workers

Marketing department

Introduction Marketing is a comprehensive terms.it inciude al resources and a set of activities necessary to direct and facilitate the transfer of goods and services from producer to consumer in the process of distribution. marketing is a social process by which individual and groups obtain what they through creating,offering and freely exchanging products ans services of value of others.

Marketing management is an art and science of choosing target markets and getting, keeping and growing customers through creating ,delivering and communicating superior customers value. Marketing is a creative and essential function of management. it plays a significant role in the survival and success of business. it is one of the effective ways to increase the company sales.

Excel crop care Ltd. is a large-scale unit and is a huge manufacturer of agro-chemicals.it owes monopoly in production process. Tp identify wants and create customers the company has set up a marketing department at its MUMBAI branch. here marketing efforts are carried out by four basic principles.

1. Reasonable & consistent pricing 2. Good Quality 3. Dependable Supplies 4. Technical service to inform & educate the consumer.

Organization of marketing department

Product Planning Product is a key element in the market offering. product is anything that can be offered to a satisfy a want or need. In absence of product there is nothing to distribute, promote or to sale. Thus there is a need for proper planning of the product. Product planning is the process of determining that line of product, which can secure maximum net realization from the intended markets.

Long Range Planning It includes planning over period of 3-5 years. The planning is done at corporate level.It is for overall development of the organization.

Annual Operation Planning The annual operation planning is yearly plan set after consulting the concerned persons from different sites. It involves marketing, production and purchase functions. It considers
y y y y y

Market Share Market Demand Market Competition Monsoon Position Distribution Demand

MARKET SIGMENTATION The concept of market segmentation is based on the fact that the markets of commodities are not homogeneous but they are heterogeneous. Market represents groups of customers having common characteristics but two customers are never common in their nature, habits, hobbies, income and purchasing techniques. They differ in their behaviour and buying decisions. On the basis of these characteristic, customers having similar qualities are grouped in segments. According to William J. Stanton Market segmentation consist of taking the total heterogeneous market for a product and dividing it into several sub-markets or segments, each of which tends to be homogenous in full significant aspects. The market for the product of Excle Corp Care Ltd is very widespread. it covers all parts of subcontinent of india. Company is already exporting its product to other countries of the world with such a widespread market that firm has adopted the policy of segmenting the market on the basis of the following two ways, 1. Area Base Market Segmentation
Head office

Northern zone head

Eastern zone head

Southern zone head

Central zone head

Western zone head

2. Product Base Market Segmentation

Product base

Industrial chemical

Agricultural product

PRODUCTION MIX Sales Promotion Sales promotion, incentive tools such as samples, coupons, prizes, free trials, free goods, prices off, trade shows and conventions etc. which are mostly short term, are designed to stimulate quicker or greater purpose of particular products or services by consumers or the trade. Sales promotion can be used for short run effects such as dramatize public offers and boast sagging sale. It is an integral part of promotion mix and should be carefully planned, designed and executed. it is short term incentives to encourage the purchase of product. it is sales efforts undertaken by a business for sales excel crop care ltd. uses the following sales promotion tools: credit facility: the company allows 30 days facility to all its customers. discount and allowances: the company provides trade discount and sales discount to their dealers so as to maximise sales. Commission and gifts: The company gives commission to those dealers who sell maximum. Apart from this other incentives like rewards gifts special discounts etc. are given After sales services: if the goods are demanded during transportation the firm replaces the goods and bears the transportation cost. If the customers are not satisfied with the product, he can directly contact to the company and ask for it. Publicity: In order to get publicity the company has its own service canter in village to provide services to their customers.

Liberal payment terms: 1. Advance payment 2. Immediate payment by cheque 3. Payment within 45 days Advertising Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identify sponsor. Advertising can be used to built up a long-term image for a product or trigger sale. It can efficiently reach geographical dispersed buyers. The purpose of advertising is to inform, influence and induce general public to buy the goods and services of advertisers. All the Advertising of excel s manufactured products is handled by head office at MUMBAI. Excel advertises in following the ways: 1. Verbal
y y y

Audio through radio. Demonstration through television. Direct demonstration.

2. Non verbal
y y y y

Posters Advertisement of newspaper and magazines Pamphlets Calendars

3. Others
y

A series of literature for the actual consumers (i.e. the farmers) communicating the benefits and providing instruction for the use of the product.

y y

Set of literature for students in education. It has registered. Itself in search engines on internet to expand its national and international markets.

Company gives advertisement according to state means in regional languages and also at proper seasonal time with effective message.

Human resource department

Introduction Personnel department is heart of organization. As the one had truly said that one plus one makes two in organization where there is two or more person work with coordination according to George R. Terry personnel management is concerned with obtaining and maintaining of satisfactory and satisfied work force. Personnel management means to manage people with both as an individual and as a group at working place.Personnel management is known besides personnel

administration,labor management, and manpower management. As the term implies personnel management is the management of human resouece in origin ,in order to solve their problems in a responsible manner.it has become necessary for almost all units to set up a separate personnel department. Excel Crop Care Ltd; has a separate personnel dept. The welfare activities done for their employees are remarkable.in this company it can be seen that there is bonding between management and workers and hence result is to smooth functioning of the organization activities.The HR activities under taken by personnel department are the best.

Time keeping system Time is an important and valuable element factor in any organisation. Excel industry ltd is more conscious of the time keeping. For the smooth running of any organisation activity. It is necessary to have a sound of time keeping system. It helps to an employee for calculation and determination of wages and salary. Time keeping system follow by excel industries ltd is as follows. SHIFT A B C (NIGHT) D (GENERAL) Late coming workers : 10 minutes late coming is allowed for workers.they are provided 5 minutes more to enter into premises. In terms of workers half hour wages will be cut. Staff member and supervisors : 15 minutes late coming is allowed to them. But if staff comes after 15 minutes than short leave will be considered and his one short leave will be used.supervisor can use the short leave only twice a month. Management : 5 minutes late coming is allowed that is 8:40 a.m. more than this time if they come late. their half day salary will cut from their monthly salary TIME 7:00 am to 3:00 pm 3:00 pm to 11:00 pm 11:00 pm to 7:00 am 8:30 am to 5:00 pm

Organization of personnel department

Chief Manager of personnel Department

Senior Manager

Senior Executive

Training

Industrial Relation

Staff

Peon

Recruitment and Selection Recruitment Recruitment means right number of people at right time at right place which is necessary to ensure the smooth and efficient operation of the organization. Recruitment is a process of searching for employees & simulating and encouraging them to apply for jobs in an organization. Recruitment arises due to..... 1. Death 2. Retirement

3. Retrenchment 4. Resignation 5. New project 6. Plant Expansion 7. New Technology 8. Other Reasons.....

Excel Crop Care Ltd ,is doing this with two different sources, 1. External 2. Internal Internal Source: Promotion, Transfer, etc..... External Source: Employee Recommendation, Advertisement, Employment Exchange, Camus Interview.

Mainly three type of recruitment is there. 1. Permanent recruitment 2. Temporary recruitment 3. Apprenticeship

Selection The procedure is concerned with securing relevant information about an applicant. The objective of selection process is to determine whether an applicant meets the qualification for a specific job. And to choose the applicant who is most likely to perform well in the job. Here in Excel, selection process typically follow a standard pattern, beginning with initial screening, then interview and concluding with final employment decision. Before performing these recruitment and selection one has to inform employment exchange office. Co; has to fill up the company notification of vacancy form which includes job profile. If company requires list of employee then employment office will provide it. Excel crop care ltd; also takes the help of employment office for selecting employees. It invites experts from outsides for arranging the interview of applicants. Once the candidate is selected for particular job, they are placed on the job training. Induction Induction process is process of introducing new employee in the organization. When a new employee joins the organization, he is stranger to the people eat work place. In this process new employee is introduced about the company, various policies of the company, rules and regulation. He/she is given full information about the history and objectives of the company. It makes employee feel at home. In Excel crop care ltd, every new employee is provided homely atmosphere so that he/she can feel comfortable. More over new employee is placed in all departments for initial few days so that he comes to know about whole organization. He is also made familiar with the health and safety equipment.

Training and development it means the act of increasing skills and knowledge of employee for particular job. It is an application of knowledge. To work accurately and perfectly organization must have well trained staff and experienced people. There are two methods used for training in excel. 1. On the job training 2. Off the job training On the job training 1. Demonstration 2. Apprenticeship 3. Performance appraisal 4. Experiments 5. Simulation etc...... Off the job training 1. Lecture 2. Conference 3. Panel discussion 4. Role playing 5. Case study etc.....

Excel crop care ltd is having its own training centre Vivekananda research and training institute. Excel crop care ltd has adopted the method of P.T.P (participating training technique). They also arrange lectures of outsider that are experts in that particular subject. It also provide training through programs like visual add, through documents like posters, notice, bulletin etc. they also arrange brain storming session, group discussion, workshop, conference etc.....

Performance appraisal system

Wages and salary In excel wages and salaries distributed for workers and staff on the 7th of each month. Salary is provided by cheques. The employee can apply for advance on 22nd of preceding month. If employee takes a loan from company the amount of interest is deducted directly from the salary. There are 3 grades for salary distribution. 1. Executive 2. Staff / supervisor 3. Workers. ADD : salary + daily allowance + general allowance Less: P.F + E.S.I + instalment if loan is taken = Total Allowance may be of dearness allowance, house rent allowance, washing allowance, night shift, leave travel assistance etc... A part from this company provides convergence charges such as 13 litter petrol, 650 ml oil and Rs.65 maintenance charge for moped and 18 litter petrol, 900 ml oil and Rs.75 maintenance for scooter.

Promotion and transfer policy Promotion Promotion may be defined as upward advancement of an employee in an organization to another job. This commands better wages, batter status, higher opportunity, batter working condition and hours of work and higher rank. Mainly promotion is given on the basis of 1. Seniority 2. Performance Transfer Transfer is lateral or horizontal movement of an employee from one job to another job. Where rank, position and salary will remain same In Excel the employees are transferred unless demanded or specially asked for by the employees. Mostly internal transfer takes place. I.e. one department to another department.

EMPLOYEE WELFARE ACTIVITY Working of ESI Scheme Excel crop care ltd. Follows employee state insurance (ESI) scheme. According to employee state insurance act 1948. This scheme applicable to those companies in which there are minimum 10 workers working with machine and electric power. this scheme covers all those employees whose salary is less than Rs. 6500 per month. Such employees are given the following facilities. 1. Free medical facilities to employee and his family.there are 4 hospitals of E.S.I in Bhavnagar. 2. In case of of injury or sickness 75% of their salary is given to him. 3. In case of death of employee his family members are given compensation and pension also. 4. Maternity leave for women workers for 3 months. For E.S.I. scheme. 1.75 % amount from employees + 4.75 % amount from company =6.50 % amount given as a contribution.

Provident fund scheme It is compulsory to apply provident fund scheme under the act of 1952. In excel crop care ltd; Bhavnagar 12 % P.F is deducted from employees salary. A yearly report is given by the company to regional office at Ahmadabad.company must pay the amount of P.F in bank after 15 days of payment of salary.

Excel crop care ltd; deducts P.F from the employees P.F fund from this fund 15.67% is credited to P.F and 8.33 % is for pension fund. Employees can get fund from his P.F fund. 1 .employees can withdraw 80 % home loan from their P.F. 2. employees can withdraw 50 % marriage loan from their P.F

Production department

Introduction Excel crop care ltd is producing agro chemicals as well as industrial chemicals fo agriculture use. Most agricultural chemicals are being manufactured at Bhavnagar unit. recently company is producing a wide rang of agro chemicals and formulations products at the manufacturing sites.

PRODUCT

1. 2. 3. 4. 5. 6. 7. 8.

Endosulfan technical Chlorpyriphos technical

9.

Imidaclo pride technical Endosulfan 35 % E.C

10. 11. 12. 13. 14. 15. 16.

Het diol Butene diol

Chlorphyriphos 20 % E.C Chlorphyriphos 48 % E.C

Hitcel Glycel

Profonephos 50 % E.C Endohyper formulation

Chlorpyriphos technical Glyphosate technical

Exel mero 71 % Imidacel 17 %

Product Product portfolio Product portfolio is the statement in which the product is listed. i.e list of some of the product.the products of excel crop care ltd are as follows. 1.Industrial chemicals - Phosphorous trichloride -Phosphorous elemental -Phosphorous pentasalphide -Acetyl chloride 2.Agriculture chemical - Endocel technical (endosulfan technical) - Endocel 35 E.C(endosulfan formulation) -Trial technical (chlorphyphos technical) -Trial 20 E.C (chlorphyphos formulation) -Celphos (aluminium phospide) -Sulfex (wattle sulfur) -Glycel technical (glyphosate technical) -Glycel 41 % SL (glyphosate formulation)

Product process Process of endosulfan

HCCP

Plant

B. D.

Reactor

Filteration

Thinly cholaride

Solide intermediates

Reactor

Flaking

Flakes

Packing

Process of clorpyriphos :

TCAC

Catalyst

Reaction

Filteration

Product

Package

Dispatch

Quality Assurance The quality of the product is the essential priority of excel crop care ltd. The company has successfully implemented KAIZEN technology of quality improvement. Company also continues to ISO 14001: 2004 environmental management systems. The company continues to enjoy continues reputation of quality suppliers. Kaizen Implementation For TQM (Total quality management ) the company employed KAIZEN approach which works very smoothly in a successful manner. The main 5s included in KAIZEN approach are segregation, strengthen, shinning, standardization, self-discipline. License There are about 5 licenses given to the product out them some are listed below:
y y y y y

Canteen license under contract hotel and restaurant. Licences to import store and use spirit. Endo tech. ISI and Endocel 35% ECISI. Factory license ISO: 14001 certification

Safety department The objectives of the safety department of excel crop care ltd. are ;  Zero accidents  Maintain safe working procedures.  Provide safety instruments  Good house keeping withing the factory.  Legal complaints. The Bhavnagar plant continues to maintain the OSHAS: 18000 certificate for occupational health and safety management system. The government of Gujarat has recognized the Bhavnagar factory with an award for achieving 1 million hours of accident free factory operations.

Finance department

Introduction Finance may be defined as the part of Art and science it is the art and science of managing money. Financial management is that managerial activity which is concerned with the planning and controlling of the firms financial resource. Finance and accounting as such are separate function but are sufficiently related to be described together. Accounting covers the classification of financial transactions and summarization into the standard financial statement. The finance function of management will have particular responsibility
y

Ensuring a fair return on investment

Generating and building up surplus

Planning, directing and controlling the utilization of fund.

Excel Crop Care Ltd Bhavnagar has its accounting department and head of its is K.K Mehta

Organisation structure of finance department

General manager

Finance manager

Office (Auditing)

Staff manager

Office (Accounting)

Financial planning Financial planning is pre-requisite for the smooth functioning finance department and for the purpose of growth and expansion of business activities. There are two types of financial plan: 1. Long term Financial planning 2. Short term Financial planning The term financial plan are formulated for the expansion of business for starting new units for developing new products for modernization of the unit and for the purpose of sales of fixed assets. At excel they have planning about long term as well as short term financial planning. Short term financial planning is for monthly planning and long term planning is for yearly planning. Financial planning and decision making are undertaken at central level decision are made in the contest of organisation objectives.

Capitalization Capitalisation is defined as the sum of per value of outstanding stock and the bonds. Capitalisation word is used to refer and funded obligation, which may report wholly fictitious value; Capitalisation is the estimation of present value. In common parlance the phase Capitalisation refers to total amount of capital employed in business depending upon the efficiency of management of utilize installed capacity a company may be under capitalisation over capitalisation for fair capitalisation. A company is undercapitalized if its real value is more than book value. A company is over capitalized value is less than book value. A company is said to be fair capitalized if its real value is equal to book values. Book value of shares = capital + reserves + surplus No .of shares = 19, 00, 00,000 + 74, 30, 00,000 190, 00.000 = 49.10 Capital structure refers to the making of capitalisation. In a broader sense capital structure includes shares reserves etc, and the components os the total capital the optimum capital structure may be defined as the capital maximum value of firm. The capital structure of excel crop care ltd is as follow. Particulars Share capital Reserves and surplus Secured loan Unsecured loan RS. (in lacs) 550.28 17,376.19 5,002.75 9,554.82

Management of working capital Working capital may be defined as the capital invested in the working assets like stocks of raw materials, semi finished goods, debtors etc. 1. Inventory management Excel crop care ltd has techniques for maintaining inventory at proper level. the techniques adopted by excel crop care ltd are as under;
y y

Economic order quantity. Selective inventory control (ABC analysis) Both techniques are used at the same time in excel crop care ltd. so they never face any crises of inventory.

2. Management of receivable Excel crop care ltd is investing consideration proportion of working capital in trade creditor book debt. So it should be managed well company has fixed as 30% of working capital in book debt. Excel crop care ltd. has adopted selective credit policy to every customer but only that financial position is good and payment 3 months credit facility to its customer. 3. Cash and bank management Excel crop care ltd. of each branch prepare budget twice in a month and money addition cash are budget for shorts time and long period are also prepared to make cash planning more effective. In every 15 days they prepare summery of cash inflow and outflow and find out surplus or deficit and there after it is sent to head office. If there is and deficit than head office provides cash.

Particulars Current assets Inventories Sundry debtors Cash & bank balance Other current assets Loan & advances Less : Current liabilities & provision Liabilities Provisions Net current assets

2009-10

2008-09

14,298.27 13,000.14 16,474.49 13,177.71 1,093.85 1,215.32 589.13 800.06 4,122.67 3,871.73

13,112.41 10,825.49 1,928.62 1,696.08 21,537.38 19,543.39

4. Management of receivable Excel crop care ltd. is investing consideration proportion of working capital in trade creditor book debt. So it should be managed well. company has fixed as 30 % of working capital in book debt. Excel crop care ltd. has adopted selective credit policy to every customer but only that financial position is good and payment 3 months credit facility to its customer. Excel crop care ltd has developed such optimum credit policy through its liquidity position is very good and so. It is investing more aims in book and attracting customers.

Working capital management

INTRODUCTION Financial management can be divided into two broad areas of responsibility as the management of the long term capital and the management of the short term capital. working capital in business is considered as life blood in human body .the management of working capital constitutes major area of decision -making for finance manager .working capital required to operate business on day to day basis and it varies according to nature of business ,production ,sales policy turnover ,credit period etc.. broadly working capital management can be describe as the administration of all aspects of current assets and current liability .liquidity means the capacity of the firm to convert the assets into realizable value in money. It measure the ability of the firm to honour the entire maturing obligation. Efficient management of working capital is one of the pre - conditions for the Success of an enterprise. Efficient management of working capital means

management of various component of working capital in such way that an adequate amount working capital is maintained smooth running of a firm and for fulfilment of twin objective of liquidity and profitability. While in adequate amount of

working capital empires the firm liquidity, holding of excess working capital result in the reduction of the profitability. But the proper estimation of working capital actually required, is a difficult task for the management. For this significant amount of fund is necessary to invest permanently in the form of various current assets.

CONCEPT OF WORKING CAPITAL Definition: Working capital refers to that part of the firm s capital, which is required for financing short-term or current assets such as marketable securities, debtors and inventories. Funds thus, invested in current assets keep revolving fast and are constantly converted into cash and this cash flow again in exchange for other current assets. Working capital is also known as revolving or circulating capital or short-term capital. Two concept of working capital 1) Gross concept: no specific distinction is made between the term total current assets and working capital. 2) Net concept: working capital as the different between current assets and current liabilities.

CASH

DE TORS

RAW MATERIAL

FINISHED GOODS

WORK-INPROGRESS

IMPORTANCE OF ADEQUATE WORKING CAPITAL 1. Solvency of the business: Adequate working capital helps in maintaining the solvency of the business by providing uninterrupted of production. 2. Goodwill: Sufficient amount of working capital enables a firm to make prompt payments and makes and maintain the goodwill. 3. Easy loans: Adequate working capital leads to high solvency and credit standing can arrange loans from banks and other on easy and favorable terms. 4. Cash Discounts: Adequate working capital also enables a concern to avail cash discounts on the purchases and hence reduces cost. 5. Regular Supply of Raw Material: Sufficient working capital ensures regular supply of raw material and continuous production. 6. Regular Payment Of Salaries, Wages And Other Day TO Day Commitments: It leads to the satisfaction of the employees and raises the morale of its employees, increases their efficiency, reduces wastage and costs and enhances production and profits. 7. Exploitation of Favorable Market Conditions: If a firm is having adequate working capital then it can exploit the favorable market conditions such as purchasing its requirements in bulk when the prices are lower and holdings its inventories for higher prices. 8. Ability to Face Crises: A concern can face the situation during the depression. 9. Quick And Regular Return On Investments: Sufficient working capital enables a concern to pay quick and regular of dividends to its investors and gains confidence of the investors and can raise more funds in future. 10. High Morale: Adequate working capital brings an environment of securities, confidence, high morale which results in overall efficiency in a business.

FACTORS DETERMINING THE WORKING CAPITAL REQUIREMENTS EXCEL CROP CARE LTD. Is consider the below factor for the working capital management. 1. NATURE OF BUSINESS: The requirements of working is very limited in public utility undertakings such as electricity, water supply and railways because they offer cash sale only and supply services not products, and no funds are tied up in inventories and receivables. On the other hand the trading and financial firms requires less investment in fixed assets but have to invest large amt. of working capital along with fixed investments. Bundy India ltd. Provide the product so tie up with inventories so company required more working capital. 2. SIZE OF THE BUSINESS: Greater the size of the business, greater is the requirement of working capital. Bundy India has more product line so required more capital. 3. PRODUCTION POLICY: If the policy is to keep production steady by accumulating inventories it will require higher working capital. Bundy India ltd. Production policy is based on customer requirement and specification. So we store raw material and common spare parts which use by all automobiles company. 4. LENTH OF PRDUCTION CYCLE: The longer the manufacturing time the raw material and other supplies have to be carried for a longer in the process with progressive increment of labor and service costs before the final product is obtained. So working capital is directly proportional to the length of the manufacturing process. 5. WORKING CAPITAL CYCLE: The speed with which the working cycle completes one cycle determines the requirements of working capital. Longer the cycle larger is the requirement of working capital. 6. RATE OF STOCK TURNOVER: There is an inverse co-relationship between the question of working capital and the velocity or speed with which the sales are affected. A firm having a high rate of stock turnover will needs lower amt. of working capital as compared to a firm having a low rate of turnover. 7. CREDIT POLICY: A concern that purchases its requirements on credit and sales its product / services on cash requires lesser amt. of working capital and vice-versa.

8. BUSINESS CYCLE: In period of boom, when the business is prosperous, there is need for larger amt. of working capital due to rise in sales, rise in prices, optimistic expansion of business, etc. On the contrary in time of depression, the business contracts, sales decline, difficulties are faced in collection from debtor and the firm may have a large amt. of working capital. 9. RATE OF GROWTH OF BUSINESS: In faster growing concern, we shall require large amt. of working capital. 10. EARNING CAPACITY: Some firms have more earning capacity than other due to quality of their products, monopoly conditions, etc. Such firms may generate cash profits from operations and contribute to their working capital. The dividend policy also affects the requirement of working capital. A firm maintaining a steady high rate of cash dividend irrespective of its profits needs working capital than the firm that retains larger part of its profits and does not pay so high rate of cash dividend. 11. PRICE LEVEL CHANGES: Changes in the price level also affect the working capital requirements. Generally rise in prices leads to increase in working capital. 12. OTHERS FACTORS: These are: a) Operating efficiency. b) Management ability. c) Irregularities of supply. d) Import policy. e) Asset structure. f) Importance of labour. g) banking facilities, etc

MANAGEMENT OF WORKING CAPITAL Management of working capital is concerned with the problem that arises in attempting to manage the current assets, current liabilities. The basic goal of working capital management is to manage the current assets and current liabilities of a firm in such a way that a satisfactory level of working capital is maintained, i.e. it is neither adequate nor excessive as both the situations are bad for any firm. There should be no shortage of funds and also no working capital should be ideal. WORKING CAPITAL MANAGEMENT POLICES of a firm has a great on its probability, liquidity and structural health of the organization. So working capital management is three dimensional in nature as 1. It concerned with the formulation of policies with regard to profitability, liquidity and risk. 2. It is concerned with the decision about the composition and level of current assets. 3. It is concerned with the decision about the composition and level of current liabilities.