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1.1 INTRODUCTION
In financial strength and profitability of any firm, we study
about the financial statement of the firm. The financial statements are the end
product of the financial accounting process. The financial statement is nothing
but the financial information presented in concise and capsule from, and the
financial information relating to the financial position of the firm. The financial
statement is prepared by the-
To communicate with different parties about the financial
position of the firm. To analyze the operation and performance of the firm for
future planning.
The profitability statement is prepared on the three basic
considerations with different ratio which shows the strength of the firm.
The Balance sheet
The Income Statement
Statement of Appropriation of profitability ratio on assets or investment.
Ratio analysis is a widely-used tool of financial analysis. It can
be used to compare the risk and return relationship of films of different size. It
is defined as the systematic use of ratio to interpret the financial statements so
that the strength and weakness of a firm as well as its historical performance
and current financial condition can be determined.
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Every finance manager is involved in financial decision
making and financial planning. In order to taking right decision at the right
time on the basis of different ratio.
The strength and Profitability of the any firm in based on the
Balance Sheet, Income Statement of appropriation of profit. Balance Sheet is
regarded as the most signification and basic financial statement of any firm.
The Balance sheet is prepared by a firm to present a summary of
financial position at a given point of time. It presented the assets of the firm (i.e.
obligation towards outsiders) and contribution of the owners of the firm.
The Income statement, also known as the statement of Earning,
summarizes of the revenues and expense of the firm for an accounting of source
of income and expenses.
The Income statement of flow report as against the Balance Sheet
which is a stock report or status report.
The company Act 1956 does not provide that the IS of a
company shall given true and fair view of profit or loss of the company during
the financial year. The Income statement include revenues, Expenses and net
profit or loss.
1.2 PAPER INDUSTRY
Economic stability of nation depends on the strong industrial base it
enjoys. The Indian economy is on a new growth path with buoyancy in capital
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In 1951, there were 17 paper mills, and today there are about 515 units
engaged in the manufacture of paper and paperboards and newsprint in India.
The pulp & paper industries in India have been categorized into large-scale
and small-scale. Those paper industries, which have capacity above 24,000
tonnes per annum are designated as large-scale paper industries. India is self-
sufficient in manufacture of most varieties of paper and paperboards. Import is
confined only to certain specialty papers. To meet part of its raw material needs
the industry has to rely on imported wood pulp and waste paper.
Indian paper industry has been de-licensed under the Industries (Development
& Regulation) Act, 1951 with effect from 17th July, 1997. The interested
entrepreneurs are now required to file an Industrial Entrepreneurs'
Memorandum (IEM) with the Secretariat for Industrial Assistance (SIA) for
setting up a new paper unit or substantial expansion of the existing unit in
permissible locations. Foreign Direct Investment (FDI) up to 100% is allowed
on automatic route on all activities except those requiring industrial licenses
where prior governmental approval is required.
Growth of paper industry in India has been constrained due to high cost of
production caused by inadequate availability and high cost of raw materials,
power cost and concentration of mills in one particular area. Government has
taken several policy measures to remove the bottlenecks of availability of raw
materials and infrastructure development. For example, to overcome short
supply of raw materials, duty on pulp and waste paper and wood logs/chips has
been reduced.
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Which ratio will each of these group be interested in?
In this page you should complete the table below (you can do this
by printing it out). In the left hand column there is a list of interest group one by
one. Our job is complete the right hand column by giving two or three example
of ratio when you have filled gaps you will appreciate that it gives us some
ideas about the ratio that each of the users we have identified would be as
follows
investorReturn on capital
employed
LenderGearing
ratio
Manager Profitabilityratio
Owners of company and otherinstitution
Return on capitalemployed
Supplier and othertrade creditor Liquidity
Customers Profitability
Government and otheragencies Profitability
Localcommunity This could be long andinteresting list
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The ratio of one organization may be compared with the ratio of the
same organization for various years.
The interpretation of the ratio can be made by following ways,
Single absolute ratio.
Group of ratio.
Historical ratio.
Project ratio.
Inter-firm comparison.
ROLE:
The ratio analysis is used by the manager for the decision making,
financial forecasting and planning, communication, co-ordination and effective
control.
Ratio analysis will be useful to the investor in making up his mind
whether present financial position of a concern warrant further invest or not .
Ratio analysis helps in appraising the firm in term of their profitability and
performance individually. It can be also being done in relation to other firm. It
helps the planning and controlling part of the organization.
1.3 BASIC TERMS
RATIO ANALYSIS:
Ratio analysis is the process of determining and interpreting
numerical relationship between figures of the financial statement. Ratio analysis
is the common sited form of capital management. The technique of ratio
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analysis is used for measuring the short-term liquidity or working capital
position of a firm.
The ratio to be calculated are as follows
FINANCIALRATIO
OPERATINGRATIO
COMPOSITERATIO
1.Currency Ratio 1.Gross Profit Ratio1.fixed AssetsTurnover ratio
2.Quick AssetsRatio 2.Operating Ratio
2.Return on totalResource Ratio
3. Proprietary Ratio 3.Expences Ratio3.Return on Ownfund ratio
4.Debt Equity Ratio 4.Net Profit Ratio4.Earning Per ShareRatio
5.Stock TurnoverRatio
5.Debtor's TurnoverRatio
WORKING CAPITAL MANAGEMENT
(The Concept and Meaning)
Introduction :
Fixed capital and working capital are two main categories of
capital required in the business. Current asset is required for the short-term
financing where as fixed assets is required for the long-term financing.
The management of fixed assets different from current assets in
three different ways, i.e.
a) Time is an important factor in managing fixed assets; consequently,
discount and compounding techniques play a significant role in capital
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budgeting, whereas in current assets these are the minor factor.
b) The large holding of current assets, especially cash, strengthens the
firms liquidity position, reduces the risk, but also reduces the overall
profitability. Thus a risk-return trade off is involved in holding current
assets.
c) The level of fixed as well as current assets depends upon expected sales,
but current assets can be adjusted with the sales fluctuation in the short-
run.
Thus, the firm has greater degree of flexibility in managing current assets.
In business, funds are needed for two purpose:
1. For the establishment.
2. For its day-to-day operation.
1. Fixed Capital:
Long-term fund are needed to create production facilities and this
can be done by purchase of fixed assets, like plant and machinery, land,
building, furniture and fixture, etc. investment in these assets represent the
blocked part of firms capital on a fixed or permanent basis and so called as
Fixed Capital.
2. Working Capital:
Working capital includes the current assets and current
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liabilities areas of the balance sheet. The alternative name of it is Net
current assets. Finding adequate fund for running the business unit at the
maximum possible capacity is another aspect of financial management,
known as management of working capital. The important of working capital
may be judged by the sharing pattern between current assets and fixed assets.
OBJECTIVE:
The objective is to minimize the amount of working capital
employed financing the current assets. This will lead to an improvement in the
Return On Capital Employed.
Its important stems fro two reasons:-
1. Investment in current assets represents substantial portion of total
investment.
2. Investment in current assets and the level of current liabilities have to be
geared quickly to change in sales
SOURCES OF WORKING CAPITAL:-
1. Fund from business operation.
2. Sales of fixed assets.
3. Issues of share capital.
4. Short term borrowings.
Kinds of Working Capital:-
On the Basis of Concept.
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On the Basis of Time.
DIAGRAMATIC REPRESENTATION
BASED ON CONCEPT
There are mainly two concepts of working capital:
Gross working capital.
Net working capital.
GROSS WORKING CAPITAL:
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Gross working capital is a capital invested in the current assets of the
enterprise. Current assets are those assets, which in ordinary course of business
can be converted into cash within a short period, normally one accounting year.
CONSTITUENT OF CURRENT ASSETS:
Cash in hand
Bills receivable
Sundry debtors
Short term securities
Inventories
NETWORKING CAPITAL
Net working capital refers to the difference between current assets and current
liabilities
Net working capital = current assets current liabilities
Constituents of current liabilities
Bills payable
Sundry creditors
Short term loans
Bank overdrafts
Outstanding expenses
Net working capital either be positive or negative, when current assets
exceed current liabilities it is positive and when reversed it is
negative.
BASED ON TIME.
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Permanent working capital
Temporary working capital
PERMANENT WORKING CAPITAL
It is the minimum level of current assets, which is continuously required to
ensure effective utilization of fixed facilities and for maintaining the circulation
of current assets.
For example: every company has to maintain a minimum level of raw material,
work in progress, finished goods, cash balance
TEMPORARY WORKING CAPITAL
The extra working capital needed to support the change in production and sales
activities called temporary working capital. It is required to meet seasonal
demand and some special exigencies. For example: Launching the extensive
marketing campaigns for conducting research.
FACTORES DETERMINING
THE WORKING CAPITAL REQUIREMENTS
The working capital management of a concern depends upon a large
number of factors such as nature of business, length of the production cycle etc.
each having a different importance and influence of individual factors change
over the time. However, some important factors are outlined as below.
Nature of a business
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Demand of business
Cash requirement
Inventory turnover
Business cycle
Credit policy market condition
Activity of firm
2.1 TITLE OF STUDY:
The title of my project is A Studyon, FINANCIAL STRENGTH AND
PROFITABILITY of BILT GRAPHICS PRODUCT LTD, BALLARPUR
2.2 STATEMENT OF THE PROBLEM:
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Financial statements are prepared for the purposes of presenting a
periodical report by the management and deal with the state of investment in
business and result achieved during the period under review. Financial
statement is an important tool used in the apex management to recognize the
pros & cons of the company. Financial statements are affected by three things
i.e. recorded facts, accounting conventions and personal judgments. The result
derive from these financial statements are used to compare its performance with
its competitors. Adequate attention should be given while analyzing the income
statement and balance sheet of the company. Emphasis should be given on tools
& techniques of financial analysis. An effective financial statement concentrates
more on the tools & techniques of financial analysis.
2.3 OBJECTIVE OF THE STUDY
To study in general the Financial profitability and strength in BGPPL,
Ballarpur.
To study the horizontal perspectives of BGPPL paper industries.
To know how Financial statement and profitability is being managed.
To find out the soundness of BGPPL in managing the long term
solvency.
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To evaluate the different ratio of BGPPL this shows the liquidity
position of the company.
To study the management of working capital with an in depth analysis
of its different component.
2.4 NEED FOR THE STUDY
BILT Graphics Paper Product LTD. is a multi-product Paper-
manufacturing unit with varying cycle time for each product. The capital
required by each department in a large organization like BGPPL depends on the
product target for that.
A particular year, invites the need for an effective Financial Strength and
Profitability. Monitoring the duration of the operation cycle is an important
aspect of Financial Strength and Profitability. Control for an effective
management. BGPPL is now on its turn round path and needs to cut cost and
increase its revenue; therefore it must have to keep close check on the day to
day expenses to get maximum utilization out of it. Some prominent issues
should always be taken into account are:
1. The duration of raw material stage depends on the regularity of supply,
transactions time, degree of perish ability, price ability, price fluctuations,
and economics of bulk purchases.
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2. The duration of the work-in-progress stage depends on length of the
manufacturing cycle, consistency in capacity utilization in different
stages and efficient coordination of various inputs.
3. The duration at debtors stage depends on the credit period granted,
discount offered for prompt payments and efficiency of collection efforts.
Thus a detailed study regarding the Financial Strength And Profitability.
In BGPPL is to be done to consider the effectiveness of Financial Strength And
Profitability, identify the shortcoming in management and to suggest for
improvement in working capital management.
2.5 SCOPE OF THE STUDY:
1. It helps to find out the liquidity position of the company.
2. It helps to reveal the stock position of the company.
3. It guides the external factors about the various drawbacks in the company.
4. It simplifies the understanding of financial statement.
5. It helps to analyze the future prospects of the company.
2.6 LIMITATIONS OF STUDY
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Though the project would be completed successfully a few
limitations are expected.
As BILT is multi product manufacturing unit, the cycle time of
each product varies and it could be a problem to study the
FINANCIAL STRENGTH AND PROFITABILITY in a limited
duration of 1 month.
And analysis of sub topics is limited to some extensions.
Since the procedures and policies of the company do not allow
disclosing of all financial information the project has to be
completed with great effort to get an insight into FINANCIAL
STRENGTH AND PROFITABILITY in BILT.
2.7 RESEARCH METHODOLOGY
Research is an academic activities and such the term should be used in a
technical sense. According to Clifford Woody Research comprises defining
and redefining problems, formulating hypothesis or suggested solution,
collecting, organizing and evaluating data; making deduction and reaching
conclusions; and at last carefully testing the conclusions to determine whether
they fit the formulating hypothesis.
OBJECTIVE OF RESEARCH:
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The research study has its own specific purpose, we may think of
research objective as falling into a number of following board groupings:
I. To gain the familiarity with a phenomenon or to achieve new
insight into it.
II. To portray accurately the characteristics of a particular individual,
situation or a group.
III.To determine the frequency with which something occurs or with
which it is associated with something else.
IV.To test the hypothesis of a casual relationship between variable.
SOURCE AND METHODS OF DATA COLLECTIONA. Primary Data:-
It is the data collected for ones own research purpose. In my
Project the Primary source of Data used are-
1. According policies:-
The Accounting policies help me lot in getting all the accounting
concepts clear. It was also useful in understanding the accounting procedures.
2. Formal discussion:-
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I got a lot of opportunities to get into formal discussion with the
project guide in the company.
3. Observation:-
One of the methods that I used to collect the data was the
observation, the careful observation of companys overall activities and
functioning gave me good insight into the topic under study.
B. Secondary Data:-
In my project, I took secondary Data from the books, internet,
company sites, memorandum of settlement and company's document.
Research Design:-
The design chosen for this study is a descriptive research design.
The rationale behind using such description research design is to study the ratio
analysis and working capital management for which the source are balance
sheet and case transaction summary.
TOOL USED:-
RATIO ANALYSIS Current ratio, liquid ratio, inventory ratio, Working
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Capital ratio, Inventory turnover ratio, Inventory conversion period, and
graphs have been used as devices for analyzing the performance of working
capital management of BGPPL Ltd.
WORKING CAPITAL MANAGEMENT Fixed capital and Working capital are the two main categories of
capital required in the business. Current assets are required for the short-term
financing. Working capital includes the current assets and current liabilities
areas of the balance sheet.
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3.1 INCEPTION:
The Company was incorporated on 26th April 1945, at Nagpur. A company
is wholly owned by the Karamchand Thapar. The prime objective of company
manufactures all kinds of paper and allied products, Vanaspati, Chemicals, and
soaps. The Company uses the trade name Three Aces for paper and
Wisdom for stationery. The role of the corporation was to act as a catalyst for
growth of entrepreneurs and augment industrialization of the state.
1st October 1975, the name of the company was change from the Ballarpur
Paper & Straw Board Mills, Ltd., to Ballarpur Industries Ltd. The caustic
soda/chlorine plant was commissioned on 30th May. Industrial license was
received for increasing the capacity of the caustic soda/chlorine plant from 100
to 150 tons per day 61,48,131.5 bonus equity shares were issued in prop. 1:1.
In 1978, The BILT Middle East (Private) Ltd. Dubai, was incorporated on 10th
March, as a joint venture in Dubai in collaboration with a prominent
organization in the United Arab Emirates (UAE). The activities of this
company are trading in goods imported from India and elsewhere and
promotion of industries in the UAE. A joint venture company under the name
and style of Ballarpur Palm Oil Sdn. Bhd. was incorporated in Malaysia a palm
oil refining unit for setting up of a physical refining capacity of 200 MT per day
and a fractionation capacity of 200 MT per day of palm oil at a total cost of M
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million. The company was to provide technical and managerial know-how
for the project.
The Company's proposal to establish a hydro-electric station at
Dandeli with an installed capacity of about 60 MW was approved by Karnataka
Government and a No Objection Certificate was also received from Karnataka
State Electricity Board. The Company introduced 100% pure refined corn oil
under the brand name Cornola.
In 1987, The paper division was adversely affected due to closure of the
Ballarpur unit for about 37 days owing to labour problems.
In 1988, The Company launched Executive Bond, a new brand of writing
paper.
- The company introduced a 1Kg. pouch pack under the brand name of Gopal.
In 1989
- J G Glass Ltd., was amalgamated with the company.
- It was proposed to install one DG set of 11 KW at Karwar unit.
In 1990,
- A pulp mill with a capacity of 250 TPD, incorporating chlorine-di-oxide
bleaching was commissioned. A new pulp mill was proposed to be set up at the
Shree Gopal Unit.
- Production and sales in term of volume declined as one of the units was
partly shut down for a major re-build as a part of a modernization programmed.
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- With a view to entering the packaging paper segment, the Company set up
a project at Ashti, Gadchiroli, Maharashtra for the manufacture of 35,000
tonnes per annum of extensive sack kraft.
- English Indian Clays Ltd., Janpath Investments & Holding Ltd., Jg
Moulds Ltd., A G Glass Ltd., Krebs & Cie (India) Ltd., & Toscana
Shoes Ltd., are subsidiaries of the company.
In1991,
- Paper sacks under the brand name BILT pack were launched.
- The Company's leather division undertook backward integration for
establishing a tannery as well as facilities to make full shoes soles and lasts. All
efforts were made for technical and financial agreements with some of the top
names in Europe.
- The furnaces at the Pune and Rishikesh plants were rebuilt thereby adding an
energy efficient edge to bottle manufacturing operations.
In1992,
- The captive caustic soda and chlorine plants in Ballarpur & Yamnanagar
were fully assimilated leading to savings over 15%. Production of caustic soda
declined due to power cuts, water shortage and labour unrest for 26 days in
Kaiwar Unit. Rainfall affected Singach salt works.
In 1993,
- The Company proposed to install a new pulp mill at Shreegopal to
reduce dependence on imported pulp.
- The Company successfully launched refined sunflower oil under the
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brand name `Prime Life'.
In 1994,
- The Company introduced indigenously developed dicalcium phosphate
which received good market response. The Company proposed to set up a plant
at Khavda to produce 3000 MT of liquid bromine which was scheduled to be
commissioned in February 1996. It was also proposed to establish a marine
chemicals complex at Khavda.
In 1995,
- The Company increased the pulp capacity from 300 TPD to 320 TPD and
further proposed to increase to 350 TPD. A new pulp mill with a capacity of
150 TPD was being installed at unit Shree Gopal.
- The Company was successful in accessing new markets in Korea, Taiwan and
it was proposed to develop in house facilities for production of several bromine
derivalues for the international market.
- The Company set up the power division to meet 100% of its requirements.
The company negotiated for awarding contract with respect to Barsinagar
Lignite Mining-cum-Power project in Rajasthan & Khaparkheda, Thermal
Power Project in Maharashtra.
In 1996,
- Technical collaborations were also approved for manufacture of Aniline with
Rhone Poulenc of France, for Nitrobenzene with J.Meissner of West Germany
and for basic engineering and pollution control equipment with Specichim of
France.
In 1997,
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- The company lacked the necessary technology and was dependent upon
its collaborators.
- Thapar Power Group, an arm of the leading Ballarpur Industries, which
entered into an agreement five year ago with the Himachal Pradesh Government
to generate electricity through its Uhl-3 hydro power project.
- Phoenix Pulp and Paper Company (PPPC) is a joint venture between
European Overseas Development Corporation (EODC) and Ballarpur Industries
Limited (BILT) with the latter holding around 13 per cent in PPPC.
- The company set up a bromine capacity to derive the benefits from the
brine left over after the extraction of caustic soda.
In 1998,
- The joint venture BILT-Owens was in the non-core business of
glass.
- Ballarpur Industries Ltd., (BILT), the flagship company of the L M Thapar
Group, is all set to divest minority stake in its 100 percent subsidiary, The
Golden Green Company.
- BILT had set up the division in 1992 at a capital investment of Rs 47 Cr to
manufacture construction materials like blocks, pre-cast reinforced slabs and
wall panels.
In 1999,
- Ballarpur Industries Ltd. (BILT) is exploring the possibility of collaboration
with Swedish company `Tumba Bruk' for manufacturing papers used in paring
of currency notes.
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- BILT has entered into technical agreements with a South Korean and a
Japanese company for manufacturing coated and lightweight coated paper.
In 2000,- Duff & Phelps Credit Rating India (DCR) has assinged a D1 (very high
certainty of timely payment) rating to the Rs 15 crore short term debt
programme of Ballarpur Industries.
- The Company will be allotting three equity shares of Rs 10 each to the
shareholders of APR for every 10 equity shares of Rs 10 each of APR held by
them.
- The Board of Ballarpur Industries is being expanded from 12 to 15.
- Mr. Narottam Sahgal has resigned from the Directorship of the company
w.e.f. 15th September.
In 2001,- Crisil has assigned `AA+' (SO) (structured obligation) to the Rs150- crore
structured debt obligation issue of the company.
- The Company has signed a memorandum of understanding with Sinar MAS
India for acquiring equity stake in the company.
- The Company has appointed Mr. Gautam Thapar, Managing Director, as the
Vice-Chairman and Managing Director of the company.
- Ballarpur Industries Ltd (BILT) will shortly finalize an equity issue, which
has received the board's in-principle approval.
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- The Board of Directors of Ballarpur Industries Ltd has noted the change in
nomination by Unit Trust of India on the Board of Directors of the company.
Mr. R K Ahooja has been nominated by UTI on the Board of Directors of the
company in place of Mr. K G Vassal.
In 2002,
-The Board of Directors of Ballarpur Industries has changed the designation of
Mr. R R Vederah, a Whole time Director, from Director &COO to Deputy
Managing Director with immediate effect.
-R R Vederah designated as Deputy M D of BILT.
In 2003,-The board of BILT has approved the proposal to divest the investments of
Janpath Investments and Holding Ltd.
-BILT counter is recording a heavy trade in stock market and the players in the
market are keen on buying the company stock.
In 2004,
-Starlight International Holdings Ltd. acquires 10,000,000 shares of Ballarpur
Industries Ltd. amounting to 6.16% of total capital of the company
3.2 OBJECTIVE OF THE ORGANIZATION:
a) Strategic Goal: The long-term goal of the national policy is that India should
have a modern and efficient paper industry of world standards, catering to
diversified paper demand. The focus of the policy would therefore be to achieve
global competitiveness not only in terms of cost, quality and product-mix but
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also in terms of global benchmarks of efficiency and productivity. This will
require indigenous production of over 100 million tones (m T) per annum by
2019-20 from the 2004-05 level of 38 m T. This implies a compounded
annual
growth 7.3% per annum.
b) The above strategic goal is justified on the ground that steel consumption in
the world, around 500 m T in 2004, is expected to grow at 3.0 percent per
annum1 to reach 1,000 m T in 2015, compared to 2 percent per annum in the
past fifteen years. China will continue to have a dominant share of the world
steel demand. At home, the Indian growth rate of steel production over the past
fifteen years was 7.0 percent per annum. The projected growth rate of 7.3
percent per annum in India compares well with the projected national income
growth rate of 7-8 percent per annum, given an income elasticity of steel
consumption of around 1.
c) In terms of consumption of PAPER, defined as production plus imports
minus exports, the present equation is 38+2-4 = 36 m T in 2004-05. Table 1
gives the equation for 2019-20 and the projected compounded annual growth
rates for production, imports, exports and consumption.
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3.3 BOARD OF DIRECTORS
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BIL
TS.No Name Designation
1 Mr.Gautam Thapar Chairman / Chair Person
2 Mr.Ashish Guha Director
3 Mr.Shardul S Shroff Director
4 Mr.R K Ahooja Director
5 Mr.Sanjay Labroo Director
6 Dr.Pramath Raj Sinha Director
7 Mr.A S Dulat Director
8 Mr.B Hariharan Group Director
9 Mr.R R Vederah Managing Director
10 Mr.A P Singh Nominee Director
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Mr. Gautam Thapar, Chairman/Chair Person
Mr.R R Vederah Managing Director
Mr. B Hariharan Group Director (Finance)
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Mr. A P Singh Nominee of LIC
Mr. R K Ahooja, Director
Mr. Sanjay Labroo, Dector
Mr. Shardul S Shroff,Director
Mr A S Dulat, Director
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Dr. Pramath Raj Sinha, Director
Mr. Ashish Guha, Director
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3.4 ORGANIZATIONAL CHART
3.5 BUSINESS OPERATIONThere was a phenomenal growth of Paper industry during the last
two decades particularly after partial decontrol affected by the Govt. of India
since 1980. The installed capacity in the country rose from 15 million tonnes in
1980 to 110 million tonnes in the year 2000. Due to paper increase in the cost of
Wood ,Bamboo, Electricity, and other inputs, it was all the most essential to go
for the modernization by adopting the new dry process technology in place of
the existing wet-process to make the product competitive in term of quality and
price .
The modernization of the existing plant in the wet-process
technology was thought of in the year 1999. BILT obtained required project
finance from IDBI, SBI, IFCI under the World Bank Line of credit. In order to
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part-finance the ongoing modernization, equity share of Rs 25 crores was
infused by UTI during the year 1996.
3.6 PRODUCT OF THE ORGANISATION:
COTED WOOD FREE PAPER
UNCOTED WOOD FREE PAPER
COPIER
CREAMWOVE(LOW VALUE PRODUCT)
TISSUE & HIGIENE
LICENCED CAPACITY: 6,00,000 MT/Annum
INSTALLED CAPACITY: 7,00,000 MT/Annum
YEAR-WISE ACTUAL PERFORMANCE
(IN LACS MT)
YEAR PRODUCTION DESPATCH
2004-2005 4.46 4.26
2005-2006 5.02 4.90
2006-2007 5.77 5.56
2007-2008 6.33 6.10
2008-2009 6.88 6.54
3.7 COMPETITORS OF THE ORGANISATION
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ITC(INDIAN TOBACCO COMPANY)
NAVNIT
SPRING PAPER
VINAYAK PRINTER PVT. LTD.
KAGAZNAGAR PAPER
ANDHRA PAPER COMPANY PVT LTD.
UNITS OF BGPPL IN INDIA :-
UNIT MANUFACTURING PLACE
BALLARPUR PULP AND PAPER MAHARASHTRA
BHIGWAN PULP AND PAPER MAHARASHTRA
SHREE GOPAL PULP AND PAPER HARIYANA
SEWA PAPER ONLY ORISSA
ASHTI PULP ONLY MAHARASHTRA
KAMALAPURAM PULP ONLY ORISSA
UNITS OF BGPPL OUT OF INDIA:-
UNITMANUFACTURING PLACE
SFI(STATE OFSABAH,MALAYSIA)
PULP ANDPAPER
MALAYSIA
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3.8 ACHIVEMENTS, ACCLADES & MILESTONES
The company has become the first Paper mill in the country to obtain
the one International System Standards certification, ISPO 14001 for Excellence
in Environment Management awarded by Greentech Foundation, New Delhi.
First Price in Excellence in energy Conservation and Management by the
Maharashtra Energy Development Agency, Pune.
REWARD & RECOGNITION:
1. CII- National Award for Excellence in Energy Management in Aug 2008.
2. Safety innovation Award from the institution of Engineers (India) Delhi
state center in Sept 2008.
3. Excellence in Environment Management awarded by Greentech
Foundation, New Delhi 2006-2007, 2007-2008, 2008-2009.
4. Indian Manufacturing Excellence Award in 2006.
5. First price in Energy Conservation by Maharashtra Government, Pune in
2007-2008.
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List of BILT Branches:
BILT has a network of over hundred distributors spread across more than 52locations across the Indian subcontinent
BILTs Distribution Network*
North
Delhi
Ludhiana
Amritsar
Chandigarh
Patiala
Kanpur
LucknowMeerut
Agra
Varanasi
Paharanpur
Moradabad
Jammu
RohtakJamunanagar
South
Chennai
Sivakasi
Tirupur
Bangalore
Hyderabad
Kochi
KeralaCoimbatore
Madurai
Secunderabad
Vijaywada
Vishakhapatnam
Ernakulam
PondicherryHubli
West
MumbaiAhmedabad
Jabalpur
Goa
Pune
Nagpur
NashikAurangabad
East
CalcuttaCuttack
Raipur
Patna
Bhagalpur
Nepal
GuwahatiRanchi
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Indore
Surat
Kolhapur
BILT MARKESTING NETWORKS
Corporate Office (Gurgaon)
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SalesPresence
Manufacturing Facilities
FINANCING AND ACCOUNTING WING
In the BGPPL main function of the Finance and Accounts Department is to
look after the treasury management and to render service in financial aspects for
effectively conducting the business of the company. The finance Department
has many sub sections. It has about 55 employees consisting of about 50
executives and 5 non-executives. The entire department is headed by the general
manager. Finance and Accounting Department of BGPPL is divided into several
sections for administrative control and assignment of responsibilities and fixing
of accountability etc. To name a few are:
The following are sections of finance and Account department in RINL.
1. Raw material Accounts
2. Stores Accounting
3. Sales Accounts
4. Pay and PF Accounts
5. Works accounts section
6. Operational Bills Accounts
7. General Accounts Section
8. Cash Section
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9. Loans and Advances
10. Corporate Accounts
11. Internal Audit Section
12. Budget Section
13. Costing Section
14. Project Accounts
3.10 FUTURE PROSPECTS:
VISION
Our aspiration is to become a leading creator of Shareholder Value in the
Paper Industry.
To achieve this, we will ENERGISE our people, with a positive culture
that rewards INNOVATION, breeds INITIATIVES and encourages
INTELLIGENT risk taking.
MISSION
To achieve this, we will use the ENERGY of our people, develop and
implement leading edge technologies and draw on both to deliver effective
world-class solutions to our customers.
To consistently outperform expectations and deliver superior value to
both our Customers and Stakeholders
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CORE VALUES
Honesty
To be principled, straight-forward and fair in all dealings.
Integrity
Maintaining the highest standards of professionalism.
Flexibility
Adapting ourselves to always stay a step ahead of change.
Respect for individual
Giving each person room to contribute and grow.
Respect for knowledge
To acquire and apply leading edge expertise in all aspects of our business.
Team performance
The team comes first; none of us is as good as all of us!
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4.1 CURRENT RATIO
It measures the short-term financial position of the business concern.
In other word it is companys ability to meet its short term obligation. It
matches the total current assets of the company against its current
liabilities.
Current Ratio = Current Assets _
Current Liabilities
4.1TABLE SHOWING THE STATUS OF CURRENT
RATIO
Amount in Lakhs
Particular 2006-07 2007-08 2008-09
Total Current Assets Or Gross WorkingCapital(A)
13,336,451
14,666,983
13,757,086
Total Current Liabilities(B) 4,371,209 3,564,746 3,715,096
Current Ratio A/B 3.05 4.11 3.7
INFERENCE
As a conventional rule, current ratio of 2:1 or more is considered as
satisfactory. As BILT is having current ratio a bit lowered than the ideal
ratio, it may be interpreted that its liquidity is not sufficient. However,
in 2007-08 it was 4.11.
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4.1 GRAPH SHOWING CURRENT RATIO
ANALYSIS
The current ratio is not the binding parameter, in order to judge the
companys success. It is just a measure in quantity, but not of quantity,
in 2007-08, current ratio increased, there can be two reasons or either of
it.
A. Increase in current assets.
B. Decrease in current liabilities.
QUICK RATIO (ACID TEST RATIO)
Liquid ratio is worked out to test short-term liquidity of the
company in its correct form. It establishes the relationship between the
quick assets and the current liabilities. We know that an assets is liquid
when it is really converted in to cash without any loss in value.
Quick ratio indicates the ability of the business to meet its
immediate commitments. Quick ratio is a better test of financial
strength than the current ratio as it keeps on consideration to inventory,
which may be very slow moving. It is a supplementary measure of
liquidity and place more emphasis on immediate conversion of assets
into cashes than thus the current ratio.
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Formula For Quick Ratio:-
Quick Ratio = Quick OR Liquid Ratio _
Current Liabilities & Provisions
4.2 TABLE SHOWING QUICK RATIO
Particular 2006-2007 2007-2008 2008-2009
Current Assets investment and fixeddeposits 4007 113 197
Inventory 31,24,171 13,44,596 13,00,003
sundry debtors 35,37,971 18,52,520 20,54,245
cash and bank balance 34,45,820 36,37,830 1,04,107
loan and advances 32,24,482 78,31,9241,02,98,534
Total(A)1,33,36,451
1,46,66,983
1,37,57,086
Current liabilities
Liabilities 29,89,24315,59,02
7 14,61,066
Provision1,381,99
620,05,71
922,54,03
0
Total(B) 43,71,20935,64,74
637,15,09
6
Total A/B 3.05 4.11 3.7
INFERENCE
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Generally, a ratio of 1:1 is considered to represent a satisfactory current
financial condition. In the year 2007-2008, company shows low quick
company has higher quick ratio. The company shows low quick ratio in
the subsequent year which are equivalent to 1. Therefore the company
has satisfactory quick ratio.
I.2GRAPH SHOWING QUICK RATIO
ANALYSIS:
In short, for an ideal situation
Inventory= Current liabilities = Current Assets
OR
Current Liabilities < Inventory
Current Liabilities Quick Assets
ABSOLUTE LIQUID RATIO
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This ratio is also known as the super quick ratio or cash ratio or cash
reservoir ratio. This ratio is considering only the absolute liquidity
available for the firm.
Absolute liquid ratio = Absolute liquid Assets
Current Liability
Absolute liquid Assets = Cash @ Bank Balance + Short Term
Securities.
4.3 TABLE SHOWING ABSOLUTE LIQUID RATIO
Amount in Lakhs
PARTICULAR 2006-2007 2007-2008 2008-2009Absolute Liquid Assets(A) 34,45,820 36,37,830 1,04,107
Total Current Liabilities(B) 43,71,209 35,64,746 37,15,096
Absolute liquid Ratio(A/B) 0.79 1.02 0.030
INFERENCE:-
The ratio has started average growth from there on and is at 0.79
in 2006-07. Further there is increase in the year 2007-08 & 2008-09.
The above data indicates current ratio values excess 2008-2009
higher standard ratio (2:1) this indicates cash poison was satisfactory
for business
4.3 GRAPH SHOWING ABSOLUTE LIQUID RATIO
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INVENTORY TURNOVER RATIO
Every firm has to maintain a certain level of inventory in order
to meet the requirement of the business. Another important liquidity
ratio is the inventory turnover ratio. Inventory turnover has measure of
the number of times the average inventory is sold during the last year. It
is computed by dividing the cost of goods are sold by average inventory
balance.
Inventory turnover ratio also known as stock velocity.
Inventory turnover ratio (I.T.R) indicates the number of times the stock
has been turned over during the period and evaluates the efficiency with
which a firm is able to manage its inventory.
Formula Of Inventory Turnover Ratio:-
Inventory Turnover Ratio = _Net sales_ _Avg. Inventory
Average Inventory = Opening stock + Closing stock2
4.4 TABLE SHOWING INVENTORY TURNOVER RATIO
Amount in Lakhs
Particular 2006-2007 2007-2008 2008-2009
Net sales(A) 2,16,23,23393,49,200 99,93,310
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Avg.Inventory
(B)
31,24,171 13,44,596 13,00,003
InventoryTurnoverRatio
(A/B)
6.9 7.0 7.69
INFERENCE
BILT shows increase since 2008-2009 and has an optimum inventory
turnover ratio. There is no standard inventory turnover ratio or rule of
thumb for interpreting the inventory turnover ratio. The norms may be
different for different firms depending upon the nature of the business.
4.4 GRAPH SHOWING INVENTORY TURNOVER RATIO
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INVENTORY CONVERSION PERIOD:
The amount of time required to sell the average inventory can be
determined by dividing the inventory turnover ratio in to the number of
days in a year for simplicity, 365 days. It helps in knowing the average
time for clearing the stock.
Inventory Conversion Ratio = No. of days In a Year .Inventory Turnover Ratio
4.5 TABLE SHOWS INVENTORY CONVERSION
PERIOD
Amount lakhs
PARTICULAR 2006-2007 2007-2008 2008-2009No. Of days in a
year
365 365 365
InventoryTurnover Ratio
6.9 7.0 7.69
Inventory
conversion
ratio(365/ITR)
52.90 52.14 47.46
INFERENCE
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The greater the number of times per year the inventory turnover, the
more efficient it is being used. This shows the average time taken for
clearing the stocks.
4.5 GRAPH SHOWS THE INVENTORY CONVERSION PERIOD
INVENTORY TO WORKING CAPITAL RATIO:
This is derived at by dividing the book value of closing
stock of raw materials, finished and semi-finished goods, store and
spare and other inventories by working capital and expressed as
percentage. This ratio appraises managements judgment in proportion
its working capital to the least liquid segment of that capital. If
investment is too much in the inventory, it not only limits the liquidity
of working capital, it may be indicative of poor judgment in balancing
and stocking also.
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Formula for Inventory to Working Capital:
Inventory to working Capital = Total inventory _Net Working Capital
4.6 TABLE SHOWS INVENTORY TO WORKING CAPITAL
Amount in LakhsParticular 2006-2007 2007-2008 2008-2009
TotalInventory(A) 31,24,171 13,44,596 13,00,003 Net WorkingCapital(B)
89,65,242 1,11,02,237 1,00,41,990
Inventory toWorkingCapital(A/B)
0.35
0.12 0.13
INFERENCE
A higher ratio indicates efficient utilization of working capital and a
low ratio indicates otherwise. But a very high working capital turnover
ratio is not a good situation for any firm and hence care must be taken
while interpreting the ratio.
4.6 GRAPH SHOWING INVENTORY TO WORKING
CAPITAL
RETURN ON ASSETS (ROA) RATIO:-
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Return on assets ratio measures the profitability of the
firm in terms of assets employed in the firm. The ROA is
Calculated by the establishing the relationship between the
profit and the employed to earn that profit.
Formula for Return on Assets ratio:
Return on Assets Ratio = Net Profit After Tax_ x100
Average Total Assets
4.7 TABLE SHOWING RETURN ON ASSETSAmount In Lakhs
Particular 2006-2007 2007-2008 2008-2009
Net Profit AfterTax(A) 36,27,796 30,26,339 36,00,237
Average TotalAssets(B)
3,57,07,392 2,30,03,034 2,33,62,874
Return OnAssets(A/B)
10.16 13.15 15.41
INFERENCE
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The graph shows BILT is having increasing Return On
Investment ratio which indicates efficient utilization of companies
assets and in the year 2006-2007 it was 10.16 but after this year
company shows consistence increase in their Return on assets ratio.
4.7 GRAPH SHOWING RETURN ON ASSETS
GROSS PROFIT RATIO
This is also known as the gross margin. It is calculated by
dividing gross profit by sales. The gross profit ratio depends upon the
relationship selling price and cost of production including direct
expenses.
Formula for Gross Profit ratio = _Gross Profit_ _ x 100 Net sales
4.8 TABLE SHOWS GROSS PROFIT RATIO
Amount In Lakhs
Particular 2006-2007 2007-2008 2008-2009
Gross profit/Loss(A)
32,36,174 13,72,720 12,53,853
Net Sales(B) 2,16,23,233 93,49,200 99,93,310
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Gross ProfitRatio(A/B)
14.97 14.68 12.55
INFERENCE
In 2008-2009 the Gross profit ratio is negative but before this year
the ratio was positive and increase continuously but in this year the
ratio will declined slowly
4.8 GRAPH SHOWS THE GROSS PROFIT RATIO
NET PROFIT
Net profit ratio establishes relationship between net profit (after tax)
and sales and indicates the efficiency of the management in
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manufacturing, selling administrative and other achievement of the
firm.
This ratio also indicates the firms capacity to face adverse
economic condition such as price completion.
Formula for Net Profit ratio = _Net profit_ x 100Sales
4.9 TABLE SHOWING NET PROFIT RATIO
Amount In LakhsPARTICULARS 2006-2007 2007-2008 2008-2009
NETPROFIT/LOSS(A)
25,07,674 12,94,478 12,53,853
NET SALES 2,16,23,233 93,49,200 99,93,310
NET PROFIT
RATIO(A/B) 11.67 13.45
12.55
INFERENCE
The net profit ratio shows the firm capacity to face adverse economic
situation. The net profit is maximum in year 2007-2008 and last year
down by 0.9%.
4.9 GRAPH SHOWING NET PROFIT RATIO
GRAPH
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10.5
11
11.5
12
12.5
13
13.5
NET PROFIT RATIO
11.67
13.45
12.55
Net Profit Ratio
2006-2007
2007-2008
2008-2009
CASH PROFIT RATIO
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The net profit of a firm affected by the amount/methods of
depreciation charged. Further the depreciation being a non-cash
expense, it is better to calculate cash profit ratio.
Cash Profit Ratio = _Cash Profit_ x 100Net sales
Cash Profit = Net Profit + Depreciation
4.10 TABLE SHOWING CASH PROFIT RATIO
AMOUNT IN LAKHS
Particular 2006-2007 2007-2008 2008-2009
Net profit(A)
Depreciation(B)
Cash
Profit(A+B)
25,07,674
15,49,077
40,56,751
12,94,478
6,33,780
19,28,258
12,53,853
7,69,544
20,23,397
Net sales (C) 2,16,23,233 93,49,200 99,93,310Cash Profit
Ratio(A+B/C) 18.76 20.62 20.25
INFERENCE
Cash profit ratio shows the method of depreciation charge of each items
expenses of cash profit and net sales. In the table shows that year 2007-
2008 is having higher cash profit than other years.
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4.10 GRAPH SHOWING CASH PROFIT RATIO
OPERATING PROFIT RATIO :
This refers pure operating profit of the firm. The operating profit
will be less than the GP ratio as the indirect expenses such as the
general and administrative, selling expenses and depreciation charge.
It can help to identify the corrective measures to improve
profitability of the company.
Operating Profit Ratio = _ Operating Cost_ x 100NetSales
4.11 TABLE SHOWING OPERATING PROFIT RATIO AMOUNT IN LAKHS
Particular 2006-2007 2007-2008 2008-2009
Operating
Profit(A)
32,36,174 13,72,720 12,53,853
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Net Sales(B) 2,16,23,233 93,49,200 99,93,310
Operating
Profit
Ratio(A/B)
14.97 14.68 12.55
INFERENCE
This is ratio of net operating profit to net sales. In all the years it remain
average.
4.11 Graph Showing Operating Profit Ratio
PREPARATORY RATIO OR EQUITY RATIO
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A various to the debt- equity ratio is the proprietary ratio which
will also known as equity ratio or shareholders to total equities ratio or
net worth to total assets ratio.
This ratio can also be represented in percentages of owner
capital to total capital of the firm.
Preparatory Ratio = _Shareholders fund_
Total Assets
1.12 TABLE SHOWING PREPARATORY RATIO OR
EQUITY RATIO
AMOUNT IN LAKHSParticulars 2006-2007 2007-2008 2008-2009
Shareholdersfund(A)
2,00,04,242 1,26,79,917 1,34,97,722
Total Assets(B) 3,57,07,392 2,30,03,034 2,33,62,874
Debt equityratio(A/B)
0.56 0.55 0.58
INFERENCES
The objective of computing this ratio is to find how efficiently the
funds supplied by the equity shareholders have been used. Its regarded
as a very important measure, because it reflects the productivity of the
ownership (or risk) capital employed in the firm. It is influenced by
several factors, return on investment , debt equity ratio, average cost of
debt funds and tax rate. This ratio indicates the firms ability of
generating profit per rupee of equity share holders fund higher the ratio,
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the more efficient the management & utilization of equity shareholders
funds. The return on equity capital has also increased . it is a good sign
for the company.
4.12 GRAPH SHOWING PREPARATORY RATIO OR EQUITY
RATIO
RATIO OF CURRENT ASSETS TO PREPARATORY FUND
The ratio is calculated by the dividing total of current assets
by the amount of share holders fund.
It indicates the extent to which proprietors fund are invested in
current assets.
Ratio of current Assets to preparatory funds
= _Current Assets_ _ x 100Share Holders Fund
4.13 TABLE SHOWING RATIO OF CURRENT ASSETS
RATIO
AMOUNT IN LAKHS
Particulars 2006-2007 2007-2008 2008-2009Current Assets(A) 13,336,451 14,666,983 13,757,086Share Holders fund(B) 20,004,242 12,679,917 13,497,722CA to Preparatory
Ratio(A/B)
66.67 115.67 101.92
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INFERENCE
The highest return on current assets in year 2007-2008 and after this
slowly decreases in the return ratio.
4.13 GRAPH SHOWING RATIO OF CURRENT ASSETS
RATIO
SUMMARY OF FINDINGS
1. As a conventional rule, current ratio of 2:1 or more is considered
as satisfactory. As BILT is having current ratio a bit lowered than
the ideal ratio, it may be interpreted that its liquidity is not
sufficient. However, in 2007-08 it was 4.11.
2. Generally, a ratio of 1:1 is considered to represent a satisfactory
current financial condition. In the year 2007-2008, company
shows low quick company has higher quick ratio. The company
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shows low quick ratio in the subsequent year which are
equivalent to 1. Therefore the company has satisfactory quick
ratio.
3. The ratio has started average growth from there on and is at
0.79 in 2006-07. Further there is increase in the year 2007-08 &
2008-09. The above data indicates current ratio values excess
2008-2009 higher standard ratio (2:1) this indicates cash poison
was satisfactory for business
4. The greater the number of times per year the inventory turnover,
the more efficient it is being used. This shows the average timetaken for clearing the stocks.
5. The greater the number of times per year the inventory turnover,
the more efficient it is being used. This shows the average time
taken for clearing the stocks.
6. A higher ratio indicates efficient utilization of working capital
and a low ratio indicates otherwise. But a very high working
capital turnover ratio is not a good situation for any firm and
hence care must be taken while interpreting the ratio.
7. The graph shows BILT is having increasing Return On
Investment ratio which indicates efficient utilization of
companies assets and in the year 2006-2007 it was 10.16 but after
this year company shows consistence increase in their Return on
assets ratio
8. In 2008-2009 the Gross profit ratio is negative but before this
year the ratio was positive and increase continuously but in this
year the ratio will declined slowly
9. The net profit ratio shows the firm capacity to face adverse
economic situation. The net profit is maximum in year 2007-
2008 and last year down by 0.9%.
10.Cash profit ratio shows the method of depreciation charge of
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RECOMME NDATION & SUGGESTION:
1. Company should not put more effort to increase the efficiency
and return on investment.
2. Company should take effective measure in utilizing current assets
and fixed assets efficiently for better turnover ratio.
3. It should give more return on investment, which will increase the
market value of the company.
4. Fixed assets turnover ratio of the company should be less than
57%. A ratio more than 57% indicates greater risk for the
creditors and it indicates financial weaken of the concern.
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5. The company should try to reduce blocking up of funds in the
inventory and maintain ideal ratio.
6. The management should keep a record of marks-ups and mark
down so that when trading statement is completed according to
actual figures, the gross profit can be tested for regularity or
otherwise after giving due consideration to such marks-ups and
mark downs.
As the company is in good position and has maintaining ideal
ratios there was less scope for the researches to suggest the company.
B ALANCE SHEET OF BILT
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(Rupees in Lakhs)
as at 30th June 2007 as at 30th June 2008 as at 30th June 2009
SOURCES OF FUNDS :
SHAREHOLDERS' FUNDS:
Share Capital
1,857,26
1
1,111,23
4
1,111,23
4
Reserves and Surplus
18,146,9
1
20,004,2
42
11,568,6
83
12,679,9
17
12,386,4
88
13,497,7
22
LOAN FUNDS :
Secured loans
7,449,01
4
5,427,83
2
5,090,40
2
Unsecured loans
5,915,63
3
13,364,6
47
3,979,10
7
9,406,93
9
3,806,03
7
8,896,43
9Deferred Tax Liability
( Net )
2,338,50
3 916,178 9,68,713
Total
35,707,3
29
23,003,0
34
23,362,8
74
APPLICATION OF FUNDS :FIXED ASSETS :
Gross block
32,681,9
27
12,176,7
57
13,625,4
37
Less: Depreciation
12,851,0
05
4,537,50
4
5,137,28
6
Net Block
19,830,9
22
7,639,25
3
8,488,15
1
Pending Allocation
1,680,01
7 747,504
1,918,26
0
Capital work-in-progress
2,252,41
1
23,763,3
50 598,945
8,985,70
2 22,353
10,428,7
64
INVESTMENTS
2,855,08
1
2,855,47
1
2,855,47
1
CURRENT ASSETS, LOANS &
ADVANCES :
Inventories
3,124,17
1
1,3,44,59
6
1,300,00
3
Sundry debtors
3,537,97
1
1,852,52
0
2,054,24
5
Cash & Bank balances
3,445,82
0
3,637,83
0 104,107Interest accrued on
investment 4,007 113 197
Loans & Advances 3224,482
7,831,92
4
10,298,5
34
13,336,4
51
14,666,9
83
13,757,0
86
LESS: CURRENT LIABILITIES
& PROVISIONS :
Liabilities
2,989,24
3
1,559,02
7
1,461,06
6
Provisions
1,381,96
6
2,005,71
9
2,254,03
0
4,371,2
09
3,564,7
46
3,715,0
96
Net Current assets
8,965,2
42
11,102,
237
10,041,
990
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PROFIT AND LOSS ACCOUNT OF BILT
PARTICULARS 2006-2007 2007-2008 2008-2009
INCOME
SALES 23,687,558 10,308,904 10,535,678
LESS: EXCISE DUTY 2,064,325 959,704 542,368
NET SALES 21,623,223 9,349,200 9,993,310
OTHER INCOMES 111,232 30,012 49,503INCREASE/(DECREASE)IN
STOCK -81,736 -98,862 214,020
TOTAL 21,652,729 9,280,350 10,256,833
EXPENDITURES
MANUFACTURING COST 13,482,655 5,878,397 6,475,062PURCHASES 494,678 359,841 432,620
PERSONAL COST 1,261,601 491,719 617,964ADMINISTRATION, SELLING &
MISCELLS COST 648,698 201,670 360,631
DEFERRED REVENUE EXP(NET) 110,072 64,095 40,973
INTEREST AND FINANCE COST 869,774 278,128 137,766
DEPRECIATION 1,549,007 633,780 769,544
TOTAL 18,416,555 7,907,630 8,834,560
PROFIT BEFORE TAXATION 3,236,174 1,372,720 1,253,853
PROVISION FOR TAXATION
CURRENT TAX 363,900 480,700 107,185
DEFERRED TAX 346,600 -48,058 52,535
MAT ENTITLEMENT CREDIT -368,400
FRINGE BENEFIT TAX 18,000 14,000 8,700
728,500 78,242 168,420
PROFIT AFTER TAX 2,507,674 1,294,478 1,253,853
ADD BAL B/F (LAST YR) 1,106,544 1,704,639 2,271,384ADD DEBENTURE REDMPN
RESERVE NO LONGER REQ 13,578 27,222 75,000AMT AVAILABLE FOR
APPROPRIATION 3,627,796 3,026,339 3,600,237
GARDEN CITY COLLEGE Page 28
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Statement of changes in working capital
(Figures in crores)
Particulars2006-2007
2007-2008
2008-2009
Current Assets
Inventories
3,124,1
71
1,3,44,5
96
1,300,00
3
Sundry debtors
3,537,9
71
1,852,52
0
2,054,24
5
Cash & Bank balances
3,445,8
20
3,637,83
0 104,107
Interest accrued oninvestment 4,007 113 197
Loans & Advances
3,224,4
82
7,831,92
4
10,298,5
34
Total current assets (a)
13,336,
451
14,666,9
83
13,757,0
86
Current Liabilities
Liabilities
2,989,24
3
1,559,0
27
1,461,0
66
Provision1,381,96
62,005,7
192,254,0
30
Total current liabilities (b)
4,371,
209
3,564,7
46
3,715,0
96
Net Working capital (a-b) 3.05 4.11 3.70
GARDEN CITY COLLEGE Page 29
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73/73
BIBLIOGRAPHY
Financial management I. M. pandey
Financial management Prasanna Chandra
Financial management D N Chabra
Working capital Management I.M. pandey
Financial Management R.K. Sharma &S.K.Gupta
Financial Management R.P. Rustagi
Annual Reports of BILT Graphics Paper Product Ltd GeneralArticles and Magazines of BILT.
Website:
www.bilt.com,
www.indianinfoline.com,
www.google.com,weekpedia,
BOOKS:
Survey of Indian industry-
The Hindu
http://www.bilt.com/http://www.bilt.com/