Project Report

on

"Working Capital Management"

At INDIAN SUGAR & GENERAL ENGINEERING CORPORATION, Yamuna Nagar Submitted to
Kurukshetra University, Kurukshetra in partial fulfillment for the degree of Master of Business Administration (Batch 2010-2012)

Submitted by:
MANISHA Roll No MBA-3rd Semester Batch 2010-2012

Yamuna Institute of Engineering & Technology (YIET)

Approved by AICTE and Affiliated to Kurukshetra University, Kurukshetra (Haryana)

CONTENTS PARTICULARS Preface Acknowledgement Declaration CORPORATE PROFILE Corporate Profile HISTORY OF ISGEC ISGEC An Overview ISGEC Collaboration Organizational structure of ISGEC Group turnover Capital Structure of ISGEC PAGE NO.

Literature Review Topic Introduction Concept of Working Capital Management of Working Capital Sources of Finance for Current Assets and working capital Objectives of the study Research Methodology Data analysis & interpretation Findings Suggestions Conclusion Bibliography Annexure Questionnaire

Preface
Master of Business Administration is a course, which combines both theory and its application in the field of management. As part of this course, every aspirant has to undergo "a project". The purpose of this research project is to expose the students of management with the happening of real world. I was fortunate enough to get this opportunity by taking the project on "Working Capital Management in INDIAN SUGAR & GENERAL ENGINEERING CORPORATION, Yamuna Nagar. It enhances my knowledge regarding this area of operation. Every student has to prepare and submit a report on the working of its project. This report is the research work of the aspirant. It is an attempt to present an account of practical knowledge of the same.

ACKNOWLEDGEMENT
Any work study is never an individual own efforts. It is contributed effort of many hearts, hand and heads. I give my great sense of privilege in submitting this project work, for which I am grateful and indebted to Mr. Rajinder Agnihotry (Training Officer) for allowing me to undergo my training and to do this project at ISGEC. I sincerely acknowledge his help, efforts and cooperation as well as timely guidance, which helped me to complete my project. I express my sincere gratitude to my industry guide Mr. A.K. MAINI (SENIOR ACCOUNTANT), and ISGEC fordable guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible. I would also like to thank the entire team of ISGEC, for the constant support and help in the successful completion of my project. I liked to thanks all persons who helped me directly or indirectly in preparation of this report. (MANISHA)

STUDENT DECLARATION

I hereby declare that the project report titled WORKING CAPITAL at INDIAN SUGAR & GENERAL ENGINEERING CORPORATION,

YAMUNA NAGAR submitted in partial fulfillment of the requirement for the Degree of Master of Business Administration in Finance is record of bonafide research work carried out by MANISHA and that no part of this report has been submitted for the award of any other diploma ,degree fellowship or other similar title prize. The report is based on my personal opinion hence cannot be referred for official or legal purpose.

Place: Yamuna Nagar Date:_____________ (Signature)

 Corporate Profile

History Indian sugar & general engineering corporation (ISGEC)

ISGEC Collaboration

Structure of the Company

Group turnover Competitor Capital Structure of ISGEC

CORPORATE PROFILE
The group is called the Saraswati Industrial Syndicate Limited (Sis). It was started in 1993 with the establishment of saraswati sugar mills. This incidentally now happens to be once of the biggest industries in the country with the cane crushing capacity of above 12000 PD. over the years, three more units namely the INDIAN SUGAR & GENERAL ENGINEERING CORPORATION (ISGEC), ISGEC JOHN THOMPSON (IJT) and UP STEELS (UPS) were added. Today the annul turnover of ISGEC for each year exceeds us $ 24 million & group turnover of saraswati industrial syndicate limited exceeds us $ 100 million. The group include over 5000 people, which include engineers, technicians & skilled craftsmen. Many of the have undertaken advanced training in the UK, USA, ITALY, CANADA, AUSTRALIA, GERMANY & RASSIA. The engineering group was launched in 1946 with the establishment of the Indian sugar & general engineering corporation (ISGEC). It manufactures a variety of heavy engineering for varied application. ISGEC John Thompson (IJT) located at Noida supplies boilers & associated equipment on turnkey basis. In 1960, ISGEC collaborated with John Thompson from a joint company by the name of ISGEC JOHN THOMPSON. UP steels (UPS) was acquired in 1981 & merged later the parent company. as a foundry established in 1966 with the technical know-how from the Japans Kobe steels, UP steels has its main plant in Muzaffarnagar (UP) about 100 km. from north of DELHI. it manufactures sophisticated Alloy/Steel

castings both, hand & machine molded as well as Alloy iron & Steel ingots. The company was promoted by late Sh. D.D. puri and presently being chaired by Mr. Ranjit Puri (chairman & managing director). The company is a public limited company & The Directors Of The Company Are:

MR.RANJIT PURI DIRECTOR MR. ADITYA PURI MR. C.R. THOMPSON MR. B.L. WADHERA MR. TAHIR HASAN MR. K.K. VIJ MR. SUJATA VARADARAJAN MR. VINOD K. NAGPAL MR. LALIT MEHRA MR. S.C.JOLLY

CHAIRMAN & MANAGING JOINT MANAGING DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR

Audit Committee: MR. K.K. VIJ- CHAIRMAN MR. VINOD K. NAGPAL MR. LALIT MEHRA President & Company Secretary: MR. S.K. KHORANA Bankers: SATATE BANK OF PATIALA STANDARD CHARTERED BANK STATE BANK OF TRAVANCORE STATE BANK OF INDORE

 STATE BANK OF HYDERABAD PUNJAB NATOINAL BANK CORPORATION BANK Register Office: YAMUNANAGAR, HARYANA Units: INDIAN SUGAR & GENERAL ENGINEERING CORPORATIO ISGEC JOHN THOMPSON UTTAR PRADESH STEELS

INDIAN SUGAR AND GENERAL ENGINEERING CORPORATION The Company

ISGEC is the heavy engineering unit of saraswati industrial syndicate limited. It was established in 1946 & is located at yamunanagar, haryana, about 198 km. from Delhi. ISGEC is famous worldwide for the manufacture of Pressure Vessels gas containers, heat exchangers & Presses.

Approval
ISGEC has been approved by Lloyds register of quality assurance as an ISO-9001 company. ISGEC is authorized by American society of mechanical engineers for the use of ASME 'U' & 'S' code stamps. Lloyds register as Class-1 manufacture of fusion welded Pressure Vessels up to 200mm thickness approves ISGEC. Engineers India ltd approves ISGEC. For manufactured of heat exchangers up to maximum tube thickness of 300mm. Engineers India ltd approves ISGEC. for manufactured of Vessels & columns in carbon & alloy steel up to 150 mm thickness & in Clad steel up to 132 mm thickness.

Product Range
Diversity of product range is the stimulus on which ISGEC thrives. They manufacture: Process Plant Equipment including Pressure Vessels, columns, towers, reactors, regenerators, shell & tube heat exchangers, autoclaves, etc. for fertilizers, refineries, petrochemicals & other chemical industries in various

material of construction including carbon steel, clad steel duplex stainless steel & non ferrous materials. Containers for chlorine & other liquefiable gases. ISGEC has manufactured more than 50000 containers & are the largest manufacturer of containers in the world. Boilers pressure parts for water tube boilers including boiler drums, super heaters, economizers, panel & manifolds, Heavy duty mechanical presses (up to 1000) & hydraulic presses (3000 tones) for sheet metal & other applications for automobile, railways & various other industries. Sheet plant equipment & sugar machinery. high quality grey iron & alloy casting (weight tones single piece) for the chemical industry, dye & intermediate dye industry & soda ash plants , pumps & compressors manufacture, machine tool manufactures.

Infrastructure
Human resources include about 400 qualified & experienced engineers/supervisors apart from skilled works men. ISGEC have employed over 1700 people. ISGEC has well equipped factory, covering an area of about 25 hectares including covered production area of more than 50000 square meters spread over 11 production bays. There are overhead cranes in all the ayes with maximum crane lifting capacity of 150 tons. extensive facilities for hot & cold working, welding, heat treatment & testing elp to ensure that compliance to quality standards.

 More than 125 sophisticated machines & machine tools are installed in various production bays. More than 150 welding machines are under operation. Capacity for manufacturing and supply of reactors.

ISGEC COLLABORATIONS
Working continuously towards further excellence in technology, ISGEC entered into technical collaboration with internationally well-known companies. Some of the companies are shown below:1955 A.F.CRAIG & CO., UK SUGAR MACHINERY INDUSTRIAL BOILERS & CEMENT MACHINERY SUGAR MILLS HYDRAULIC PRESS PLATE BENDING & LEVELING PULVERIZED FUEL BOILER,

1960 JOHN THOMPSONS, UK PRESSURE VESSELS 1963 1964 1966 KAWASAKI, JAPAN FARRELL, USA JOHN SHAW & SONS

1968 BRONX, UK MACHINES 1967 NE INTERNATIONAL ROD MILLS COMBUSTION, UK 1980 ROVETTA, ITALY

MECHANICAL PRESS

Some of Our International Clients

Phung Hiep Cane Sugar Factory, Vietnam Lamson Sugar Factory, Vietnam Binh Duong Sugar Corporation, Vietnam Bangladesh Sugar & Food Industry Corporation, Bangladesh Bien Hoa Sugar Joint Stock Company, Vietnam Gula Padang Terap, Malaysia Sugar Corporation of Uganda Ltd., Uganda South Nyanza Sugar Co., Kenya Khanh Hoa Cane Sugar Factory, Vietnam Biscom, Philippines Danao Development Corporation, Philippines Don Pedro Sugars, Philippines Fletcher Smith Ltd., UK

First Farmers Sugars, Philippines Guyana Sugar Corporation, Guyana Lopez Sugar Corporation, Philippines Pena Francia Sugars, Philippines Fauji Sugar Mills, Pakistan Sartaj Sugar Mills, Pakistan Birganj Sugar Factory, Nepal Caroni (1975) Ltd., Trinidad

Some of Our Indian Clients Saraswati Sugar Mills, Haryana, India Mawana Sugar Works, Uttar Pradesh, India Daya Sugars, Uttar Pradesh, India Nagar Taluka SSK Ltd., Maharashtra, India Babasaheb Ambedkar SSK Ltd., Maharashtra, India Bapuji Rao Deshmukh SSK Ltd., Maharashtra, India Kedareshwar SSSK Ltd., Maharashtra, India Chopda SSSK Ltd., Maharashtra, India Gayatri Sugar Complex, Andhra Pradesh, India Sayan Vibhag Khand Udyog Mandli Limited, Gujarat, India Riga Sugar Mills Ltd., Bihar, India Ramgarh Chini Mills Ltd., Uttar Pradesh, India Titawi Sugar Complex, Uttar Pradesh, India

Tikaula Sugar Mills Ltd., Uttar Pradesh, India Prabhulingeshwar Sugar Works Ltd., Karnataka, India Gem Sugars Ltd., Karnataka, India Magna Agro Industries Ltd., Lucknow, India Kothari Sugars & Chemicals Ltd., Tamil Nadu, India Chandrabhaga SSK Ltd., Maharashtra, India Neoli Sugar Factory, Uttar Pradesh, India

ORGANISATIONAL STRUCTURE

he chart of the organization structure of ISGEC showed the various hierarchal levels of the organization. Organization is divided into various departments managed by different general manager of the concerned

department.

SIS

ISGEC (YNR)

IJT NEWDELHI SARASWATI SUGAR MILL (YNR) U.P.STEELS MUZZAFFARNAGAR

ISGEC JOHN THOMPSON (IJT) IJT is located at Delhi. It supplies boiler & associated equipments on turnkey basis. In 1960 ISGEC collaborated with john Thompson, U.K. , to from a joint company by the name of ISGEC JOHN THOMPSON. U.P. STEELS (UPS) This was acquired in 1981 & merged with parent company. As a foundry establishment in 1966 technical know-how from Japans Kobe steels, UPS has its main plant sit muzzafarnagar (U.P.). It manufactures sophisticated alloy steel/steel castings both hand & machine rounded as well as alloy iron castings steel ingots

U.P. steel has obtained the prestigious Lloyds certification & is now on the Lloyds register international list of class-1 founder for manufacture of casting in different grades of steel.

ISGEC
The engineering group was launched with establishment of ISC-FC. It was founded in 1946 as a public limited company under the company act, 1956. It manufactures a variety of heavy engineering for varied applications. I conducted my project study at ISGEC (works), Yamuna Nagar. So, here I am going to, describe the things in context of ISGEC (works), Yamuna Nagar only.

SARASWATI SUGAR MILL

It was the first unit being established in 1933. It introduced massive modernization program that leads to increase in the capacity from 8000 to 9600 tones-canecrushed per day. It was undertaken at the cost of rs.30 crores. Ssm secured a prestigious order of 10 lakh tones of sugar, exports are expected to be substantially lower this year because world price are fallen. It is one of leading manufacturing sugar company in India.

GROUP TURNOVER
Our group turnover has increased manifold over the last ten years: Amount in million of rupees 2000-2001 2001-2002 2002-2003 2003-2004 4790 5085 2642 3056

2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

4403 4790 5198 4509 5067 5893

6000 5000 4000 3000 2000 1000 0 Series1 Series2 Series3 Series4

10

11

COMPETITORS
ISGEC has diverse competitors for its varied range. In container group. ISGEC has monopoly till 1997 as its market! Here nearly 95% different products of ISGEC have different market shares. But the major competitors can be categorized as: GODREJ HMT L&T BHEL

CAPITAL STRUCTURE OF ISGEC

By Capital structure we mean combination of debt and equity that leads to the maximum value of the firm. As ISGEC is a subsidiary of the Company SIS so having no capital of its own. In place of Capital it has investment of Head Office and the Capital of SIS can be studied as follows :

AUTHORIZED CAPITAL OF ISGEC :

The present authorized capital of company is 709.99 lacs shares of Rs. 10/- each. Presents there are no preference shares in the capital of the company.

SHARE HOLDING PATTERN OF ISGEC

The paid up capital of the company is Rs. 709.99 lacs comprising of 70,99,900 shares of Rs. 10/- each with Saraswati Industrial Syndicate Limited, Yamuna Nagar.

 To know the pattern of the working capital management at (ISGEC), Yamuna Nagar.

To know the profitability of the company .

To know various sources of Working Capital.

To find out the future prospect of the company & evaluate opportunity in the near future capital of the concern.

To give suggestions for the improvement of existing system so that it could be implemented effectively with minimum cost & time. To analyses the liquidity position of the concern with help of ratios.

Research Methodology has many dimensions, it includes not only the research methods but also consists the logic behind the methods used in the context of the study and explain why only a particular method or technique had been used so that search lend themselves to proper evaluation. Thus in a way it is written game plan for concluding research problem. IT is necessary to design a research methodology for the problem as the same may differ from problem to problem. The methodology that was followed includes both: Primary Data Collection Secondary Data Collection Primary data collection included an in-depth study based on working capital, management of working capital, sources of finance for current assets and working capital and factors that affect working capital. A detailed study was undertaken about ISGEC, its working capital, its services, with the help of senior finance manager.

Secondary data collection included the data collected from its Annual report year ended September 30, 2011 and various documents and files related to study.

 Concept of Working Capital Management of Working Capital Sources of Finance of Working Capital

CONCEPT OF WORKING CAPITAL INTRODUCTION

Fixed assets from the skeleton of any business, working capital is its flash and blood. For a going concern the fixed assets are of permanent nature and are not to be sold. The other type of assets require for day to day working of a Unit are known as Current Assets which are floating in nature and keep on changing during course of business. It is these Current Assets which are generally referred to as Working capital is what makes the company work. It is impossible to carry on any business only with Fixed Assets, working capital is a must. Inadequacy of WC chocks any business to death. A healthy WC position is the sine-qua-non of a successful business which is reflected in adequate inventories, lowest level of debtors, minimum utilization of bank facilities for working capital etc.

IMPORTANCE OF WORKING CAPITAL

It is the objective of every firm to generate sufficient profits. This eventually depends on the magnitude of the sales. However, SALES DONT CONVERT INTO CASH INSTANTLY, There is time between sales of goods and receipt of cash. Technically it is known as operating of cash cycle. This time lag between the purchase of raw materials and the realization from debtors force every Company to find money to finance its operations during that item. For instance, if the time lag for a Company is two months certain quantity of Stocks, Debtors and Cash for dayto-day transactions. The adequacy of WC helps in raising credit standing of a business concern. A business enterprise with adequate WC is always in a position to avail advantages of any favorable opportunity either to purchase raw material or to execute a special

order or to wait for better market position. An adequate WC ensures favorable rates of interest on bank loans. The general moral of management increases by its financial soundness. During slump the demand for going down goes up. A large amount is booked in inventories and the receivable Companies having ample WC can tide over period of depression.

ELEMENTS OF WORKING CAPITAL

There are two elements of WC

LONG TERM WORKING CAPITAL :

The long term WC represent the amount of funds needed to keep a Company running in order to satisfy demand at its lowest point. The value which represent the long term WC stay with the business process all the time.

SHORT TERM WORKING CAPITAL :

The short term WC varies directly with the level of activity achieved by a Company. It also changes from one to another, from cash to inventory, from inventories to debtors and from debtors back to Cash.

DETERMINENTS OF WORKING CAPITAL

NATURE AND SIZE OF BUSINESS :
A firm with large scale of operation need more WC than small firm.

MANUFACTURE CYCLE :
Longer the manufacture cycle larger the firms WC requirement.

SALES GROWTH :
The WC needs of the firm increases as its sales grow.

DEMAND CONDITION :
Increase in demand will require further addition of Working Capital & vice versa.

PRODUCTION POLICY :
A steady productions policy requires more Working Capital.

PRICE LEVEL CHANGES :

Rising price level require a firm to maintain higher amount of WC as same level of current assets need more investment now.

OPERATING EFFICIENCY AND PERFORMANCE :

Better utilization of resources improves profitability and help in releasing pressure on WC.

FIRM 's CREDIT POLICY :

A liberal Credit Policy without rating the credit-worthiness of customers will require greater Working Capital.

AVAILABILITY OF CREDIT :
A firm will need less Working Capital if liberal credit terms are available to it and vice versa.

MANAGEMENT OF WORKING CAPITAL

Working Capital Management refers to the administration of all aspects of current assets namely Cash Marketable Securities, Debtors, Stock (Inventories) and Current Liabilities. To Finance Manager should have knowledge of the source of working capital funds as well as investment avenues where ideal funds may be temporarily invested? It must be seen that right source are tapped to finance current assets and that the current liabilities are paid in time. The goal of Working Capital Management is to manage the firm current assets and current liabilities in such a way that a satisfactory level of Working Capital is maintained, as without it firm is likely to be come insolvent or even bankrupt.

Hence Working Capital Management has two objectives which are likely to go in opposite direction i.e. (i) (ii) Liquidity Profitability

Liquidity :
Liquidity means ability to settle the bills on due dates. This is possible only if you have adequate cash.

Profitability :
The Current resources be so managed that they contribute to overall corporate profitability to the maximum possible extent. This is possible only if the Company does not keep its current assets like Cash idle.

WORKING CAPITAL MANAGEMENT IN ISGEC

Any firm and ISGEC is no exception, faces an unavoidable need to manage its working capital well. And in ISGEC it is being done with expertise. For managing working capital in the Company, it prepares various statements some daily, some monthly and also a few annually. Some of these are sent to the Head Office for the purpose of sending it to the Bank so that the bank may grant the credit limit after considering these statements. Some statements sent to Head Office are kept by the Head Office itself for keeping a record of the funds in the company and there is shortage of funds then the Head Office make arrangements for the funds and if there is any surplus then Head Office transfers these funds to any of its other Units which is in need of funds. Some statements are also such which are maintained by the Unit for keeping with itself for the purpose of its own record. The Head Office may also demand these statements for seeing into the matters of the Unit. The Factory prepares the following type of statements :-

1. 2. 3. 4.

FORM C-I & FORM C-II BANK STOCK STATEMENTS CASH FLOW STATEMENT BANK AVAILABILITY REPORT

FORM C-I & FORM C-II

Form C-I and C-II are prepared for the purpose of renewal and enhancement of bank limits. This is prepared by the Factory whenever demanded by the Head Office and give information for the whole year C-I gives the position of the Company in the previous year and based on actual figures. Form C-II shows the requirements of the Company for the next year and based on both actual and estimated figures e.g. if the head office demands Form C-II on 10th of June 2001 for the year ending September 2001. the Form C-II will show the actual position of the company from October 1999 to May 2000 and estimate thereafter. This form gives general information about the stock of the company [ i.e. opening stock, production, releases and then closing stock] various receipt during every month (From sales, loans and other receipts) various payment and in the end a summary giving information about the opening and closing balance of cash and cash credit at the end of every month. A Form C-II is also prepared by the factory showing actual position of the factory after every month. This form is sent to the bank so that the bank can see the actual position of the factory against the project one after every month. The form gives information of all the receipts and payments of the factory during that month.

2.

BANK STOCK STATEMENTS

Under this two type of statements are prepared. Both are sent to the Bank Obtaining CC Limits these are: Daily Bank Stock Statement of sugar Monthly Stores Statement

Daily Bank Stock Statement This is a statement which is sent to the bank daily. The information included in this statement is about the opening balance of sugar, addition if any sugar issued and thereafter balance at the end of the day. Balances are shown for both of sugar separately i.e. for levy and free. Generally this statement also gives information about the debtors of the company but as the bank doesnt grant credit to the ISGEC against its sundry debtors so the information about the debtors of the company is excluded from this statements. The importance of stock statement is that it helps banker to have knowledge about the stock of the company. The cash credit limit sanctioned by the bank is secured though hypothecation of stock. Hence current details of the stock is the major requirements of bank. The Drawing power (DP) of the company is font homed through the detailed information of stocks. Bank fixed the credit limit for the company every month. So the DP limit is also arrived at the end of the every month.

HOW THE DP LIMIT IS ARRIVED AT ?

Drawing power is sum total of stock at the end of each month. Stock includes raw material semi-finished goods and finished goods. After keeping the required MARGINS which is 10% in case of levy sugar and 15% in case of free sugar, Drawing power is arrived at which ultimately determines the limit the company can use. The margin is kept by the bank for the part of stock that could turn to be obsolete or useless. It is on the desirous of the bank as they may grant the credit limit less than the drawing power.

3.

CASH FLOW STATEMENT

A projected cash flow statement is also prepared by the factory for every month to see whether the company will have sufficient cash to meet requirements at the end of every month after availing cash credit limit from the bank. And if there is any deficit at the end of the month intimation of this is given to the Head Office to make some arrangements . usually projected cash flow statement is prepared for 6 months. But if Head Office asks for preparing a projected cash flow statement for more period then it is prepared accordingly. For managing cash more efficiently a comparative cash flow statement is also prepared by the company showing caparison of actual cash position with estimated cash position. Reason are traced for any difference of actual balance from the estimated balance. This statement is prepared for each and every month in the the first week of next month and is for the internal use of the factory. But the head office may also be demand this vary statement as per its requirement.

4.

BANK AVAILABILITY REPORT

A Bank availability report is also prepared by the factory on daily basis to see the balance in credit limit granted by bank which the company can avail. It gives information about the drawing power of the company sanctioned cash credit limit less limit transferred to head office amount drawn by the company out of available net drawing power. And at the end the banks from which the company avails the limit. These banks are State Bank of Patiala, Oriental Bank of Commerce, Corporation Bank and other banks i.e. state bank of travancore .This statement is prepared for the purpose so that there is a check on the bank credit limit i.e. how much fund the company can take from the bank in case of need of fund.

SOURCES OF FINANCE FOR WORKING CAPITAL

A firm has a choice among three sources of financing current assets or working capital: 1. 2. 3. Long Term Financing Short Term Financing Spontaneous Financing

Long term financing is done through shares, debentures, preference shares, retained earnings and long-term debt from financial institutions. Funds available for a period of one year or less are called short-term finance. In India, short-term funds are used to finance WC. These sources include short-term bank loans, commercial papers, factoring receivables and public deposits. Spontaneous financing refers to the automatic sources for short term funds arising in the normal course of business. The major sources of such financing are trade credit and outstanding expenses. The real choice of financing current assets is between short term versus long term financing. Various finance for WC are given below: 1. Trade Credit

2. 3. 4.

Accrued Expenses &Deferred Income Public Deposits Bank Finance

1. Trade Credits :- Trade credit is an informal arrangement and is a spontaneous source of financing working capital. Supplier firm send goods to buy firm on credit, which means, buying firm don't pay cash immediately for the purchases made on the buyer's balance sheet, it appears as sundry creditors or accounts payable. When the buyer sign a bill a negotiable instrument to obtain trade credit, it appears on the buyer balance sheet as bills payable. The benefit of trade credit is that when the company knows that the drainage of cash has been deferred be some time, the amount of cash equal to purchase value of material can be utilized in earning some returns by investing in short term securities or be crediting the same to its credit / overdraft account thereby reducing the incidence of interest. 2. Accrued expenses and deferred income : Accrued expenses represents a liability that a firm has to pay for the services, it has already receives. They represents a spontaneous, interest free services of financing e.g wages and salaries, taxes and interest. Deferred income represents funds by the firm for goods and services, which it has to supply in future e.g. advance payment made by the customer. 3. Public deposits : mobilization of funds from general public specially the middle and upper middle class people, by offering reasonably attractive rate of return is another important source of financing working capital. The Rate of interest can't exceed 15% and it is compared on a quarterly basis. Public deposits are governed by the regulation of public under the companies (Acceptance of Deposits) Amendments rules 1978 : A company can't raise more than 10% of its paid up share capital. Government companies can accept deposits upto 35% of their paid up share capital and free reserves. The maximum maturity period allowed for public deposits is three years, while the minimum permitted maturity period is six months.

A company inviting deposits from the public is required to issue an advertisement about the main details of the company and the same has to be filled to Registrar Of Companies (ROC) before publishing it in the Newspaper and magazines.

4. Bank Finance : Banks are the main institutional sources of working capital. A bank considers a firm's sales and production plans and hence determine its working capital requirement. The amount approved by the bank for the firm's working capital is called the credit limit . But financial accommodation or credit limit 100% of the value of the goods would not be granted by the banks and they would fix a margin on the value of security, which must be provided by the borrower and the amount will be financed by the bank. a) Overdraft : In this the customer is permitted to overdraw up to a prefixed limit. Interest in charged on amount overdrawn. Overdraft amount operates against security in the form of pledge of shares and security of LIC policies. b) Cash Credits : In cash credits, the customer is charged interest only on the amount actually utilized from the prefixed limit. The security offered by the customer is in the nature of hypothecation of inventory and account receivables. c) Discounting of Bills : The bills raised on the buyer of the company's goods are discounted (Full amount of the bill discount charged by the bank) by bank. This facility helps the company in realizing funds fast without waiting for credit period to get over. d) Letter of credit : bankers open latter of credits (L/C) in favour of supplier for raw materials. L/C contains a written undertaking given by a bank on behalf of the purchaser to the seller to make payment of a stated amount on presentation of stipulated documents and fulfillment of all the terms and conditions incorporated therein. e) Bank guarantees: Bankers issue specific guarantees business transactions between various parties including government agencies. The Guarantees may broadly be divided into two categories : i) ii) Financial Guarantee discharge, financial obligation to the customers Performance Guarantee for the performance of a contract by customers

f. Packing Credit of Pre-shipment : The goods meant for export forms the primary security of banks guaranteeing packing credit advance. g. Working Capital Loans : A borrower some times require accommodation in excess of sanctioned credit limit. The borrower is required to pay higher rate of interest of additional credit.

FUND BASED LIMITS:

These are credit facilities given by banks where actual banks funds are involved. Fund based limits are given against hypothecation and ledge. The categories of fund based limits are: _ Cash Credit Limit (CC Limit)

CREDIT FOR EXPORT:

All credit facilities sanctioned to exporter for producing/ manufacturing/ processing/ packing/ warehousing/ shipping the goods meant for exports are termed as Pre-shipment Credit or Packing Credit. It is similar to Cc with the only difference that CC limit is sanctioned as running facility where as packing credit advance depends on specific exports obligation met by the exporter. Important point regarding packing credit are: The facility is allowed to only those exporters whose track record has been good and they are required to produce letter of credit/firm export orders within a reasonable period of time. All pre-shipment advances are to be liquidated from the proceeds of exports bills. The packing credit advance is granted up to the last date of shipment or up to a maximum of 180 days. Further extension of 90 to up to maximum of 270 days can permitted if export orders are not executed on completion of 180 days provided the bank is satisfied for the delay in execution of export order.

FINANCING WORKING CAPITAL IN ISGEC:

ISGEC is financing its working capital requirements mainly from Banks. Beside banks the other sources for working capital finance at ISGEC are trade creditor and security need from the dealer.

WORKING CAPITAL LIMITS SANCTIONED BY BANKS:

ISGEC has availed working capital limits by borrowing from number of Banks because of: Large size of borrowing To have a degree of flexibility in its operation with different Banks. It has been using consortium financing to take care of its entire needs.

CONSORTIUM FINANCE:
It is based on the philosophy of sharing risks and gains. Its main features are: A formal consortium has to be compulsorily constituted in case the find based WC limits are Rs.50 Crore or more. The number of participating banks is a consortium should be limits to four, five or six at the most. All banks forming a consortium must evolve a common form of credit appraisal to be obtained from the borrower. ISGEC has entered into consortium banking arrangements as follows: Name of the Bank consortium State Bank of Patiala Oriental Bank of Commerce State Bank of Travancore Punjab National Bank Corporation Bank %age share in the arrangement 56.52 15.44 3.41 2.89 21.74

%age Share in the arrangements

State Bank of Patiala Oriental bank of Commerce State Bank of Travancore Punjab National Bank Corporation Bank

ISGEC has entered into consortium arrangement because of its large requirement of fund non fund based limits and hence reduced its dependence of any one leading institution.

TERM LOANS
Term loans comprises of various secured loans (backed by hypothecation of certain assets) and unsecured loans taken from banks and various other institution. The current debt of the factory is :

SECURED LOANS
Loans and advances from banks As on 30.9.2011 (Rs. in Lacs)

Against stock stores and spares State bank of Patiala Term Loans from IFCI Term Loan from SDF Total 1201.51 22.36 438.64 1662.51

UNSECURED LOANS
Loans and advances from banks
SDF Loan Head Office Account ISGEC Covema Limited and ISGEC Exports Limited Fixed Deposits Total 1144.78 6526.32

As on 30.9.2011 (Rs. in Lacs)

57.59 4986.04 337.91

FACTORY RECEIVABLES:
Factoring is a Continuing arrangement between a financial intermediary called a Factor and Seller of goods and services. It is another important source of financing working capital but in India this concept is new and has yet to establish its root. The factor performs the following service in respect of the Account Receivables arising from the sale of such goods or services. 1. Purchase all account receivables of the seller for immediate cash 2. Administrators the sales ledger of the seller collects the accounts receivable. 3. Assume the losses, which may arise from bad debts.

4. Provide relevant advisory service to seller. The main point is to be noted down in factoring is that the factor handles all the receivable arising out of the credit sales of the seller. Company and not just same specific bill which is mainly done in bill discounting agreement.

NON-FUND BASE LIMITS

These are the credit facilities given by the banks where actual bank fund are not involved e.g. letter of guarantee. Presently ISGEC is availing these facilities only from State Bank of Patiala. Fund base limit and non fund based limit of State Bank of Patiala are as follows.

Fund Based (Pledge) Sanctioned

Credit Cash

Limit
12800

DP
9460

Outstanding On 30.9.2011
2047.00

Fund based Limit (hypothecation)

Cash Credit Non fund Based 200 154

DP
200 154

Outstanding as on 30.9.2011
4.95 154

Other than Bank finance company is also using the following sources to finance its working capital:-

TRADE CREDIT:
ISGEC enjoys a reasonable amount of goodwill in the market. This enables the company to get credit for longer duration and hence postpone immediate cash outflow. The trade creditors of the company outstanding as on 30 Sept. 2006, were amounted to Rs. 1229.00 lacs.

SECURITY FROM THE DEALERS:

An ISGEC sells its Products through the dealer, it receives some amount from the dealers on advances as security. This security also serves as a source of working capital finance.

SWOT ANALYSIS STRENGTHS

Producing high quality products comparable with the international standards as awarded by ISO-9001. Efficient labour is available at cheaper rate. Services & cooperation of the staff & the workmen is really appreciating. Their products are in use in 41 countries around the world. Company is discharging their social obligations as well. Administration is very strong.

Weakness
Not linked with port or airport so freight is high. Not & industrial belt. Educated & skilled professional does not want to stay in this belt.

OPPORTUNITY
With the globalization of economy export market is tapped.

THREATS
Indigenous market for few products is not very promising.

INVENTORY TURNOVER RATIO = Particulars

Inventory Sales

Sales / Inventory 2010-11

8852.68 31681.73

2008-09
11079.43 39656.30

2009-10
7005.10 38067.88

INVENTORY TURNOVER YEAR

2008-09 2009-10 2010-11
6 5 4 3 2 1 0 years 2008-09 2009-10 2010-11 Series1 Series2

RATIO
3.58 5.43 3.58

INTERPRETATION
This ratio measures how fast the inventory is moving the rim of the operating cycle and generating sales. It also shows the efficiency of inventory management. Higher the ratio the more efficient the management of inventories and vice versa.

DEBTOR TURNOVER RATIO = Sales / Average Debtors Particulars

Debtors Sales

2008-09
1717.27 1594.33

2009-10
543.32 1026.90

2010-11
852 1594.33

DEBTORS TURNOVER RATIO

YEAR
2008-09 2009-10 2010-11
80 70 60 50 40 30 20 10 0 years 2008-09 2009-10 2010-11 Series1 Series2

RATIO
23.09 70.07 37.19

INTERPRETATION
This ratio shows how many times accounts receivable turnover during the year converted into cash. Higher turnover ratio shows the greater efficiency of credit management.

AVERAGE COLLECTION PERIOD = 365 / Accounts receivable turnover

At SSM average collection period for years are as follows:

YEAR
2008-09 2009-10 2010-11 2 days 4 days 2 days

RATIO

Average collection period

5 4 days 3 2 1 0 2008-09 2009-10 Year 2010-11 average collection period

INTERPRETATION
Average collection period shows the number of days worth of credit sales i.e. locked in debtor. An average collection period which is shorter than the credit period allowed by form needs to interpreted or excessive conservation in credit granting and average collection period more than the period allowed means inefficient credit management and excessive amount being locked in debtors. So we see that the Companys average collection period is very low. This is because of the reason that company sells its sugar either to Govt. or though dealer. . So very few days are given to them for purposes. This is very good for the company.

CURRENT RATIO CURRENT ASSETS / CURRENT LIABILITIES Particulars

Current Assets Current Liabilities

2008-09
11715.94 6310.92

2009-10
12215.9. 4331.45

2010-11
15363.54 5571.17

CURRENT RATIO YEAR

2008-09 2009-10 2010-11 2.76 2.82 1.86

RATIO

INTERPRETATION

Current Ratio
4 3 Ratio 2 1 0 2008-09 2009-10 Year 2010-11 Current Ratio

Current ratio measures the ability of the firm to meet its current liabilities. It shows the short-term liquidity and solvency of the firm. A higher ratio shows the solvency of the firm but too much high ratio may be due to the excessive level of debtors and receivables.

QUICK RATIO = (CASH & BANK + DEBTOR + MKT. SECURITIES) / CURRENT LIABILITIES QUICK RATIO YEAR
2008-09 2009-10 2010-11 0.67 0.33 0.85

RATIO

Current Ratio
1 0.8 Ratio 0.6 0.4 0.2 0 2008-09 2009-10 Year 2010-11 Current Ratio

INTERPRETATION
This ratio shows the liquid or near liquid assets to meet the current liabilities of the company. Inventories are shored from the calculation of quick ratio as they cannot be easily converted into cash to meet the current liabilities.

FINDINGS

Working Capital is an important part and plays a very crucial role in the functioning of an organization. Creditworthiness or goodwill of any company depends upon its Working Capital is an important part and plays a very crucial role in the functioning of an organization. Creditworthiness or goodwill of any company depends upon its working capital ISGEC. Good Relationship with creditors if the relations with the creditors are good then in time of problems company can easily get more credit from creditors Investments in the stock have increase by 852.6 lakhs Creditors have increased by 1238.38 lakh Administrative and selling expenses have reduced by 695 lakhS Advances from customers have increased by 26 lakhs Dividend is not paid from the last three years Unsecured Loans have inreased by 3931 lakhs from the last year.

LIMITATIONS OF THE STUDY

Every study has some limitations. Inspite of the hurdles, the training period was a good time for learning experience but there were certain limitations that every researcher has to face during the research period. I too had to face certain such limitations:

1.

Shortage of time Period of 6 weeks is not sufficient to even study the basic routine ISGEC activities of the organisation

2.

Lack of expertise, being a fresher

3.

Difficulty in analyzing data, being a fresher.

4.

Lack of attention, support from the executives of the concerned organisation.

SUGGESTIONS

Company should make efforts on export. Loans and advances should be minimize: I have seen that from the last three years advances of the company are increasing regularly. A lot funds in loans and advances and quick ratio is under pressure. This is the main reason why companys quick ration is not good. If company minimize its loans and advances, the quick ratio could not come under pressure and the liquidity of the company will be improved

 Payment of Creditors should be made in time Analysis work: should be done before it is to be send to head office Company must avoid maximum wastage in production.

CONCLUSION

Working capital Management concerned with the problems that arise in attempting to manage the current assets, current liabilities and the inter-relationship that exists between them. The goal of working capital management is to manage the firm's current assets and current liabilities in such a way that a satisfactory level of working capital is maintained to boost the production. If a company could not maintain a satisfactory level of working capital it is likely to become insolvent. The analysis made in INDIAN SUGAR &GENERAL ENGINEERING COPORATION reveal that a satisfactory level of working capital is maintained in the company. The operating cycle of the company is also in the favourable position. The liquidity position ISGEC the company is more than satisfactory level. So, it can easily be concluded that overall working capital position of the company is good and company should try to maintain more favourable working capital position

Bibliography

Working Capital Management Financial Management Annual Report Documents and Files

V.K. Bhalla I.M. Panday ISGEC, Yamuna Nagar Indian sugar & general Engineering corporation, Yamuna Nagar

Balance Sheet of ISGEC As on September 30, 2010

Sources of Funds . (Rs. in Lacs) As on 30.9.2011

As on 30.9.2010

709.99 Shareholders Funds Share Capital Reserve and Surplus Loan Funds Secured Funds Unsecured Funds Deferred Tax Liability TOTAL APPLICATION OF FUNDS Fixed Assets Gross Block Less Depreciation Net Block Capital Work in Progress Investments Current Assets, Loans and Advances Inventories Sundry Debtors Cash and Bank Balances Other Current Assets Loans and Advances Less: Current Liabilities and Provisions Liabilities Provisions 10589.94 11299.93 1662.51 6526.32 8188.83 1357.22 9546.05 20845.98 709.99 9669.95 10379.94 6686.62 2595.28 9281.90 1464.85 10746.75 21126.69

15125.69 3782.22 11343.47 1153.56

12497.0 3 2943.41

14624.32 2827.01 11797.31 140.04

11937.35 1304.19

8852.68 852.00 416.47 0.46 1594.33 11715.94 6017.20 293.72 6310.92

7005.10 543.32 3608.25 32.33 1026.90 12215.90 3738.58 542.87 4331.45

Net Current Assets Miscellaneous Expenditures (to the extent not written off or adjusted) Preliminary expenses TOTAL

5405.02

7884.45

0.52 20845.98 (Rs. in Lacs) As on September 30, 2010

0.70 21126.69

Balance Sheet of ISGEC As on September 30, 2011

SCHEDULE A SHARE CAPITAL As on September 30, 2011

Authorized
71,00,000 (Previous Year 71,00,000) Equity Shares of Rs.10/0 each Issued Subscribes and paid up. 70,99,900 Equity Shares of Rs.10/0 each 710.00 710.00

709.00

709.00

Notes : Entire Share Capital is held by the holding Company, The Saraswati Industrial Syndicate Limited and its nominees. SCHEDULE B RESERVE AND SURPLUS Share Premium General Reserve Profit and Loss Accounts Balance As on September 30, 2011 (Rs. in Lacs) As on September 30, 2010 6300.00 (6300.00) 130.00 (130.00) 3239.95 (551.84) 9669.95

6300.00 (6300.00) 130.00 (130.00) 4159.94.00 (3239.95) 10589.94

SCHEDULE C SECURED LOANS From Financial Institutions and Banks Term Loan from IFCI and

(Rs. in Lacs) As on September 30, As on September 30, 2011 2010

22.36

2773.25

Banks Cash Credit Accounts Other Loans - from Sugar Development Funs Interest accrued and due

1201.51 438.64 -1662.51

3221.72 657.95 33.70 6686.62

SCHEDULE D
UNSECURED LOANS FROM THE Holding Company viz.The Saraswati Industrial Syndicate Limited ISGEC Covema Limited and ISGEC Exports Limited (call money and inter corporate deposits) Sugar Development Fund Loan (for cane development) Fixed deposits SCHEDULE E

As on September 30, 2011

(Rs. in Lacs) As on September 30, 2010 1272.23 257.52

4986.04 337.91

57.59

57.59

1144.78 1007.94 6526.32 2595.28 (Rs. in Lacs) As on September 30, As on September 30, 2011 2010 15125.69 3782.22 11343.47 1153.56 2943.41 14624.32 2827.01 11797.31 11937.35 1304.19

Fixed Assets
Gross Block Less Depreciation Net Block Capital Work in Progress Investments

SCHEDULE F Investments Non Trade Investment Mutual Funds

As on September 30, 2011 0.60 2942.81 2943.41 As on September 30, 2011 950.36

As on September 30, 2010 0.20 1303.99 1304.19 As on September 30, 2010 714.40

SCHEDULE G Inventories Store and Spare Parts

Work in Progress : Sugar Finished Stock : Sugar Molasses

12.90 7431.19 458.23 8852.68 As on September 30, 2011 1.26 852.00 -1.26 852.68

18.02 5774.28 498.40 7005.10 As on September 30, 2010 1.26 543.32 -1.26 543.32 As on September 30, 2010

SCHEDULE H

Sundry Debtors
Debts outstanding for a period exceeding six months (consider doubtful) Other debts Less : Provision for doubtful debt SCHEDULE I

As on September 30, 2011

Cash and Bank Balances Cash and Cheque in Hand With scheduled Banks:
Current Account

249.35 148.51

182.18 916.14

Stamps in Franking Machine and deposit with post office Fixed Deposits
SCHEDULE J Other current assets Interest Accrued on Fixed Deposits

----

0.02

18.61 416.47 As on September 30, 2011 0.46 0.46

2509.91 3608.25 As on September 30, 2010 32.33 32.33

SCHEDULE K LOANS AND ADVANCES Security Deposits Advances Recoverable in cash or in kind or for value to be received Balance with excise and customs Claims pending with government

As on September 30, 2011 34.58 1124.29 110.98 324.48 1594.33

As on September 30, 2010 33.31 468.55 30.39 494.65 1026.90

SCHEDULE L CURRENT LIABILITIES Sundry Creditors Advances from customers Excise duty payable Security and other deposits Interest Accrued but not due on loans SCHEDULE M

As on September 30, 2011 4747.46 65.83 718.63 76.52 408.76 6017.20 As on September 30, 2011 70.68 502.75 (279.71)

As on September 30, 2010 2509.08 39.24 669.76 78.99 491.51 3788.58 As on September 30, 2010 69.04 391.47 82.36

PROVISIONS Provision for leave Salary Provision for pension Provision for Taxnet of Advance tax and TDS of Rs.858.37 Lacs

293.72

542.87

CASH FLOW STATEMENT OF ISGEC as on 30.9.2011

Amount (in Lacs) as on 30.9.2011 As on September 30, 2010 4551.76

Cash Flow from Operating Activities Net profit /(Loss) before Tax but after exceptional / extraordinary items Adjustments for: Depreciation Interest Expenses Interest / Dividend Income (Profit)/ Loss on Fixed Assets Sold (Net) (Profit )/ Loss on sale on Investment (Profit) / Loss on sale / revaluation of store Misc. Expenditure written off Debts / Advances written off Liability no longer required written back Provision for Leave encashment Pension provision Any other non cash item 1440.86

961.19 796.51 (99.71) 47.66 (2.40) 0.60 0.18 1.26 (6.66) 1.64 111.28 (3.80)

954.73 1072.12 (51.38) 46.07 -(3.03) 0.18 7167.00 (6.48) 10.59 (270.56) (7.27)

Operating Profit before working capital changes Adjustment for changes in working capital: Decrease in sundry Debtors Decrease in other receivables Decrease in inventories Increase in Trade and other payable Cash Generated from operations Taxes (Paid) / Received (Net of TDS) Net Cash from Operating Activities

3248.61

6304.40

(309.94) (567.43) (1848.16) 2321.83 2844.91 (990.57) 1854.34

1173.95 232.64 4077.36 (612.85) 11175.50 (1890.13) 9285.37

Cash Flow from Investing Activities Purchase of Fixed Assets Additions during the period Proceed from Sale of Fixed Assets Sale of Investments Interest / Dividend Received (Revenue) (1580.76) 12.23 854.48 131.58 (582.47) (962.52) 84.77 (3812.01) 19.10 (4670.66)

Net cash used in investing activities C

Cash Flow from Financing Activities Proceeds from secured Loans Proceeds of unsecured Loans Interest Paid

(4990.41) 3931.04 (912.96) (1972.33)

(2192.25) (1489.27) (1140.51) (4822.13)

Net Cash used in financing activities

Net increase / (Decrease) in cash equivalent

(700.46)

(207.42)

Cash and cash equivalent as at 30.9.2005 Cash and cash equivalent as at 30.9.2006 Cash and Cash equivalents comprise cash, cheques and drafts and remittances in transit Current Accounts (Dividend Account) Balance with Scheduled Banks

1098.32

1305.77

397.86

1098.32

249.35 --148.51 397.86

182.18 --916.14 1098.32

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30.9.2011

(Rs. in Lacs)

Year ended 30.9.2011

INCOME Gross Sales Less: Excise Duty Net Sales Other income Total 31681.73 1920.89 29760.84 285.90 30046.74

Year ended 30.9.2010

38067.88 2104.91 35876.84 239.85 36116.69

EXPENDITURES Manufacturing Expenses

Employees cost Administration and Selling expenses Interest to Bank and other Depreciation Preliminary Expenses written off Decrease in finished goods and work-in-progress

25288.81 2474.20 696.60 796.51 961.19 0.18 30217.49 (1611.61) 28605.88 1440.86 614.00 14.50 (107.63) 919.99 3239.95 4159.94 4159.94 11.44

21999.23 2152.38 1391.91 1072.12 954.73 0.18 27570.55 3994.38 31564.93 4551.76 1625.00 6.00 232.65 2688.11 551.84 3239.95 3239.95 41.14

TOTAL
Profit for the year before Tax Provision for Tax: Current Tax Fringe Benefit Tax Deferred Tax Brought forward from last year Profit available for appropriation Balance carried to Balance Sheet Basic/diluted earnings per share (Rs.)

Bank Availability Report as on 4.6.2010 (closing)

(Rs. in Lacs)
4.6.200 7 Previous day 4.6.2007 Previous day

Value of goods Less : Margin @15% on Free and @10% on Levy Sugar and Mill on Buffer Stock Drawing Power after Margin Less : Lien Drawing Power after lien

2295 22981 Levy Sugar Stock 0 (Qtls) 2980 2985 Levy Sugar Rate (Rs./Qtls)

2009010 200910

126091 1245.19

126091 1245.19

1997 19996 Free Sugar Stock 0 (Qtls) 00 Buffer Stock (Qtls.) 1997 19996 Free Sugar Rate 0 average last three months or market price, whichever is low (Rs. / qtls.) CLOSING AVAILABILITY 00

200910 200910 200910

137132 1373515 5 186501 1372.45 1410.00 2239 186501 1372.45 1390.00 2004

Total SBOP YNR and

SBOP SBOP Corp. PN OBC Corp. SBT FCNR NOIDA YNR B YNR Noida NOIDA YNR JGD

Sanctioned CC Limit Sanctioned CC Limit / DP DP/Limit 9785 TRFD . to H.O. & R.O. Net 1018 Sanctioned 5 Limit / DP Amount -7946 Drawn (-) Surplus (+) Amount 2239 Available

Ambala 2280 5870 0 1997 5870 0 00

6930 6930 6930

100 100

665 3550 665 3550

4900 2570 2570

785 285 285

5870 -3774

00

00 00

100

665 3550 3541 9

00 00

00 00

-99 -531

2096

00

00

134

00

00

Balance in cash Credit Account at Yamuna Nagar as on 4.6.200 7 cc A/c no. 1 Buffer Stock PNB SBOP (FCNRNoida) SBOP, Ambala Corporation Bank, YNR OBC (DR) (DR) (DR) (DR) (DR) (DR) (DR) Previous Variation day - (DR) -1449.70 234.96 1214.74 - (DR) -2559.63 00 2559.63 -531.22 (DR) -531.22 00 (DR) 00 (DR) -99.06 (DR) - (DR) -99.06 -3541.12 00 00 00

3541.12 Corp. bank (FCNRNoida) SBT, Noida Total (DR) (DR) 7945.77 (DR) (DR) -8180.73 00 00 234.96

OUTSTANDING CANE PAYMENT AND OTHER CANE EXPENSES AS ON PREVIOUS VARIATION 31.5.2010 DAY Unpaid cane Payment 220 1006 786 Cane Commission to 80 101 21 CPA's Cane Commission to 25 25 0 Societies Securities 79 79 0 Cane Haulage 76 2 -74 payments Cane purchase tax 22 22 0 TOTAL 502 1235 733