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ON

Undertaken At

Submitted in the partial fulfillment for the award of Master’s Degree in Business Administration

(Session 2008 - 10)

SUBMITTED TO: SUBMITTED BY:

Mrs. Sapna Malik Pooja Gupta Roll No.: 081041

S. D. COLLEGE OF MANAGEMENT, ISRANA, PANIPAT

KURUKSHETRA UNIVERSITY, KURUKSHETRA

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PREFACE

Learning is an essential part of life .A person learns in everything he does. Each

moment, each day of his life teaches him a new thing.

Where as the practical knowledge is an important suffix to the theoretical

knowledge, both have to be coupled to be fruitful. Class room teaching makes

the fundamental concepts clear but they must be correlated with practical

training to make the theoretical base stronger.

I consider myself lucky to do my summer training at Concepts Creations

Panipat.

It helped me to apply theoretical knowledge in Concepts Creations Panipat which

made my financial concepts more clear.

Outmost care has been taken while printing the report but all kinds of

suggestions and critical evaluation is welcomed.

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ACKNOWLEDGEMENT

At the outset I would like to thank the Management of CONCEPT

CREATIONS PANIPAT for the wholehearted co-operation and guidance

extended by them, which made my summer training project possible.

I am very grateful to my project guide Mr. Mukesh Garg Manager-Finance

Department, for his support and suggestions, which led to the completion of

this project.

POOJA GUPTA

Date: _______

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STUDENT DECLARATION

I, student of Masters in Business Administration S.D COLLEGE OF

MANAGEMENT hereby declare that the dissertation/thesis entitle ‘Study of Cash

Flow Management’ of the CONCEPT CREATIONS PANIPAT submitted in

fulfillment of the training; is my original work and is not submitted for the award

for any other degree, fellowship or similar title or prize.

POOJA GUPTA

(MBA)

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CERTIFICATE

This is to certify that POOJA GUPTA has completed the research project entitled

“Analysis of Working Capital” under my supervision. To the best of my

knowledge, the report consists of results of empirical study conducted by my

student. In my opinion, the work is of the requisite standard expected of a MBA

student. Therefore I, recommend the same to be set for evaluation.

Mrs. Sapna Malik

(Project guide)

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TABLE OF CONTENTS

PARTICULARS PAGE NO.

Executive Summary 1

Objectives of Training 3

Managerial Usefulness of Study 4

CHAPTER-1 INTRODUCTION TO COMPANY 5-21

1.1 Introduction 5

1.2 Mission 7

1.3 Quality policy 7

1.4 Company profile 8

1.5 Organization chart 11

1.6 Career 14

1.7Product line 15

1.8 Competitive edge 18

1.9 Process 19

1.10 Latest creation 20

CHAPTER-2 REVIEW OF LITERATURE 22

CHAPTER-3 RESEARCH METHODOLOGY 26-28

3.1 Objectives of study 26

3.2 Research methodology 26

3.3 Research design 27

3.4 Types of research design 27

3.5 Data collection method 28

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CHAPTER-4 INTRODUCTION TO WORKING CAPITAL 29-56

4.1 Meaning of working capital 29

4.2 Need of working capital 30

4.3 Importance of working capital 31

4.4 Working capital Cycle 32

4.5 Important terms in working capital 34

4.6 Sources of working capital 35

4.7 Requirements of working capital 36

4.8 Types of working capital 39

4.9 Components of working capital 41

4.10 Working capital management 42

4.11 Components of working capital 44

4.12 Importance of working capital management 52

4.13 Techniques of working capital management 53

CHAPTER-5 ANALYSIS AND INTERPRETATION 57-77

5.1 Financials of company 57

5.2 Schedule of changes in working capital 67

5.3 Comparative statement of working capital 72

CHAPTER- 6 CONCLUSION AND SUGGESTIONS 78-80

6.1 Recommendations of study 78

6.2 Limitations of study 79

6.3 Conclusions 79

SWOT ANALYSIS OF COMPANY 81

BIBLIOGRAPHY 82

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LIST OF TABLES

Sr.no Description Page. No

Table: 1.7 Product line 15

Table: 5.1 Comparative Analyses of Sales 59

Table: 5.2 % Increase/(Decrease) in Sales 60

Table: 5.3 Comparative Analysis of Gross Profit (Rs in Lacks) 61

Table: 5.4 % Increase/(Decrease) in Gross Profit 62

Table: 5.5 Total Net Profit 63

Table: 5.6 % Increase/(Decrease) in Gross Profit 64

Table: 5.7 Comparative Analysis of Gross Profit Ratio 65

Table: 5.8 Comparative Analysis of Net Profit Ratio 66

Table: 5.9 Comparative Analysis of Current Assets 69

Table: 5.10 Comparative Analysis of Current Liabilities 70

Table: 5.11 Comparative Analysis of Working Capital 71

Table 5.12 Comparative Analysis of Debtor’s Collection Period 74

Table 5.13 Comparative Analysis of Stock Holding Period 75

Table 5.14 Comparative Analysis of Creditor’s Payment Period 76

Table 5.15 Comparative Analysis of Current Ratios 77

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LIST OF FIGURES

Sr. No Description Page. No

Fig: 1.1 Organizational Chart 12

Fig: 1.2 Company’s Share in Textile Industry 13

Fig: 1.3 Process for Manufacturing of Textile 19

Fig: 4.1 Working Capital Cycle 33

Fig: 4.2 Important Terms of Working Capital 34

Fig: 4.3 Types of Working Capital 39

Fig: 4.4 Permanent and Temporary WC of a Stable Firm 40

Fig: 4.5 Permanent and Temporary WC of a Raising Firm 41

Fig 5.1 Comparative Analysis of Sales 59

Fig: 5.2 % Increase/ (Decrease) In Sales 60

Fig: 5.3 Comparative Analysis of Gross Profit 61

Fig 5.4 % Increase/(Decrease) In Gross Profit 62

Fig 5.5 Total Net Profit 63

Fig5.6 % Increase/(Decrease) In Net Profit 64

Fig5.7 Comparative Analysis of Gross Profit Ratio 65

Fig 5.8 Comparative Analysis of Net Profit Ratio 66

Fig: 5.9 Comparative Analysis of Current Assets 69

Fig 5.10 Comparative Analysis of Current Liabilities 70

Fig: 5.11 Comparative Analysis of Working Capital 71

Fig 5.12 Comparative Analysis of Debtor’s Collection Period 74

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Fig 5.13 comparative analysis of stock holding period 75

Fig5.14 comparative analysis of creditor’s payment period 76

Fig5.15 comparative analysis of current ratios 77

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EXECUTIVE SUMMARY

Practical training constitutes an integral part of the management studies. Training

gives an opportunity to the student to expose themselves to the industrial

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environment, which is quite different from the class room teachings. The practical

knowledge is an important suffix to the theoretical knowledge.

One cannot rely upon theoretical knowledge. It has coupled with practical for it to

be fruitful. Classroom lectures make the fundamental concept of management

clear but their application in actual practice. Positive and correct results of the

classroom learning need realities of the practical situations. The training also

enables the management students to themselves see the working conditions

under which they have to work in future. It thus enables the students to undergo

those experiences, which will help later when they joint any organization.

It is in this sense that practical training in company has a significant role to play in

the subject of financial management for developing managerial and

administrative skills in the future finance managers and to enhance their

analytical skills.

I consider myself lucky to get training in largest manufacturer of carpets

“CONCEPT CREATIONS”. I underwent six weeks training at Panipat branch. It

really helped me to get a practical insight in to the actual environment and

provide me an opportunity to make my financial management concept clearer.

If development capital is what establishes a business, working capital is what

keeps it going. One of the most common downfalls of business is unexpectedly

high running cost. What is important is not just the size of operating costs, but the

cash flows – that is when money has to be paid out in relation to the stream of

income arriving in. Thus Working Capital Management is of prime importance.

This project is a small attempt to study the working capital management in

CONCEPT CREATIONS PANIPAT. The project can be divided into two sections.

First is the analysis of the working capital position of the company using ratio

analysis and second is the study of working capital management techniques.

Working Capital Management basically comprises of Receivables Management,

payables Management and Inventory Management. These three have been

discussed separately along with company’s policy on these areas.

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CONCEPT CREATIONS PANIPAT is maintaining the following records which are

indicative of its professional approach:

Maintaining proper sets of accounting records.

Maintaining an accurate cashbook reconciled with the bank statement.

Maintaining monthly statement showing profit performance and the

working capital position.

Making a regular forecast of cash requirements based upon planned

sales volume.

Ageing of debtors/creditors with comparisons to previous months.

At the end, observations/recommendations have been given.

OBJECTIVE OF THE TRAINING

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It is well known fact that we remember 20% of what we hear, we remember 40%

of what we see but we remember 75% of what we do.

There are two fold of the management of working capital

Maintenance of working capital at appropriate level.

Availability of ample funds as and when they are needed.

The present study in CONCEPT CREATIONS PANIPAT mainly focuses on the

above objectives as well as some other objectives which I have taken into

consideration during the project training.

To access the requirement of working capital of the company.

To assess the changes in working capital needs over the years.

How management of working capital affects the financial position of

the company?

Evaluate current assets and current liabilities to find out liquidity

position of the company.

To prepare the statement of working capital of the concern

MANAGERIAL USEFULNESS OF STUDY

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For a fresher like me, in a big organization like CONCEPT CREATIONS

PANIPAT . gave me a feel of the real working atmosphere. It enhanced my

horizons about how the members of the organization work as a team, co-

coordinating with each other, and their interdependence on each other. I became

aware of the synergy effect i.e., how different members in different profiles

produce greater results with co-ordination.

The usefulness of Study:

In-depth knowledge of Company’s workings.

Familiar atmosphere of Company motivates the researcher.

Awareness of difference between the bookish knowledge and the practical

workings of the company.

Knowledge of Company’s policies.

Motivates to work as a team member.

To get aware of Current Position of the Company.

The various designations in an organization, the respective work profiles and

the interdependence among them.

Synergy effect.

It helps to understand how to tackle work pressure and meet dead lines.

Difference between budgeted and actual performance.

Time utilization.

Wealth maximization.

Data analysis and interpretation helps to increase capability of mind.

Knowledge of Company’s decisions to solve the problems

1.1 INTRODUCTION TO INDUSTRY

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History, craft and cottage industries come together at this important junction

between the Punjab and the Gangetic Plains.

About 100 km from Delhi, in the state of Haryana, is the sprawling industrial city

of Panipat, a luminary of the handloom industry in India. Long before one enters

the main city, billboards proclaim the presence of the weaving units. Further, up,

the main road is flanked by a string of showrooms with local handloom products

on display.

Panipat is famous for ‘panja’ durrie a kind of a floor covering, which is in great

demand in India and abroad. Originally, it was a traditional item made by village

women meant to be a part of daughter’s dowry. But slowly the product came to

be recognized beyond Panipat and the growing demand for durries resulted in a

burgeoning number of private and state owned weaving units within the city.

What happened to make this plebeian looking city such a flourishing business

center? During the partition in 1947, a large number of professional weavers from

Sind, Jhang and Multan, (now in Pakistan) migrated to India. As chance would

have it, they were allotted land around Panipat to settle down. The weavers lost

no time in setting up looms and getting down to their ancestral craft.

But they were up against stiff competition from mills producing the same type of

durries much faster and much cheaper. To counter the challenge, weavers of

handloom durries began to experiment with color and design. Zebra stripes made

way for floral geometrical patterns. Stock reds and blues moved over to let in rich

Indian colors. Slowly the new kind of durrie caught on. From cotton to woolen

durries, it was but a natural transition, as Panipat is one of the largest markets of

raw wool in northern India. Today the Panipat-Ambala durrie-rug belt is famous

all over the country and has various outlets at home and abroad men meant to

be a part of daughter’s dowry. But slowly the product came to be recognized

beyond Panipat and the growing demand for durries resulted in a burgeoning

number of private and state owned weaving units within the city.

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Indian textile traditions are reputed all over the world and admired for their

beauty, texture and durability. India has a diverse and rich textile tradition. The

origin of Indian textiles can be traced to the Indus valley civilization. The people

of this civilization used homespun cotton for weaving their garments. India had

numerous trade links with the outside world and Indian textiles were popular in

the ancient world. Indian silk was popular in Rome in the early centuries of the

Christian era. Hoards of fragments of cotton material originating from Gujarat

have been found in the Egyptian tombs at Fostat, belonging to 5th century A.D.

The most ancient of Indian texts and scriptures, like Rigveda, the Ramayana and

Mahabharata talk of the finesse of Indian textiles. The ancient sculptures too

bear testimony to India’s rich textile traditions. Paintings depict figures in fine,

delicate and decorated fabric. Cotton, Muslin, silk and other Indian textiles were

some of the most traded products from India. Each Indian region has its own

textile – characterizing it in terms of designs, weaving patterns and techniques,

colors and texture. Read below the details of various Indian textile traditions.

The primary contribution of textile industry:

Export earning for the country, textile industry occupies16% of the

country's export earning.

Generating employment, second largest employment generator after

agricultural sector

Industrial output sums up to 14% of total industrial production and

approximately contributes to 30 % of total export products.

LEADING PANIPAT TEXTILE COMPANIES

Sheena exports

Handfab

Paliwal exports

Om Overseas

Ess Kay Enterprise

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Shri Krishna Furnishing

Shiv Shakti exports

1.2 MISSION

For an Enterprise business mission embodies of its endeavor, which acts as a

guiding light for continuous development & growth.

MISSION OF CONCEPT CREATIONS PANIPAT:

Engineering Changes through core competency for greater synergy reinforcing

bonds with customers & establishing powerful symbiotic relationship with

international allies, preparing global market. The company wants to make a

lasting difference to its shareholders, its customers, business associates, its

employee and country as a whole. Company also gives better quality and better

technology to customer and treats every customer as “special” to build respect

for, and loyalty to, CONCEPT CREATIONS PANIPAT

1.3 QUALITY POLICY-

Concept creations steadfast commitment to quality is reflected in ISO 9001-2000

certification and the Rugmark, Kaleen, Care & Fair label on Carpets.

The dedicated team of craftsmen in Concept creations brings together years of

experience and knowledge in carpet manufacturing. Designs are created using

the latest computer aided technology and manufactured to a quality only the

finest weavers can produce.

To maintain consistency in quality and supply throughout the year, they procure

high quality raw wool from the leading wool grading centers in India and New

Zealand. The wool is then blended and spun by us in India’s best spinning mills.

While manufacturing carpets, they blend soft yarn of New Zealand with resilient

and long lasting Indian wool to give the best quality carpets.

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Committed to total quality culture, Concept creations strive to meet and exceed

its customer expectations. Continuously endeavor towards achieving higher

standards of product and service excellence. Result - maximization of customer

trust and satisfaction.

Quality control is the hallmark of their products. It helps them at every stage to

achieve a very consistent product, which is in tune with customers' expectations.

Carpets are manufactured from the finest wool, which ensure that the carpets

have:

o Long life.

o Beautiful look.

o Easy to handle

o Soothing to the eyes.

o Are not harmful to the

health of children.

1.4 COMPANY PROFILE

Concept Creations is one of the largest manufacturers & exporters of Home

Furnishings, Carpets and Floor Coverings in India. They count among their

clientele some of the most reputed stores and catalog companies of the world.

Their in-house Design Studio is reputed for its superior quality of designs and

innovative products. They are renowned for our exclusive theme-based

collections that reflect the moods of various seasons.

They are also renowned for creating custom-made products to suit the taste of

aesthetics from across countries. Concept Creations is run by highly experienced

professionals who have in-depth knowledge in carpet designing, manufacturing

and raw materials.

Concept Creations has built up an international reputation in Carpets and Home

Furnishings on the basis of our superior quality products and timely delivery.

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YEAR OF ESTABLISHMENT 1996

OFFICE OF WORKS

Village & P.O., Noorwala

Main Barsat Road,

Panipat

PARTNERS

1. Shri Ashok Sharma

2. Shri Vinod Kathuria

3. Shri Ved Parkash Bharti

ADDRESS:

Concept Creations

Manufacturers & Exporters of Home Furnishings,

Village & P.O.,Noorwala, Main Barsat Road, Panipat

WORKS:

Noorwala, Main Barsat Road, Panipat – 132103 Haryana (India)

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+91 (180) 2631681, 2638791, 2640906

Fax: +91 (180) 2633086

Delhi Office: +91 (011) 2702 9522

DESIGN STUDIO:

110 Ground Floor, Vaishali Enclave, Pritampura, Delhi-110088(INDIA)

Tel: 91-11-2310747, 42455655,

Fax: 91-11-27029522.

E-MAIL:

conceptc@ndf.vsnl.net.in

kamal@conceptcreationsgroup.com

STATUTARY REGISTRATIONS:

Tax Deduction Account No. RTKC01841A

Permanent Account No. AAAFC6948H

TIN 06612609453

PF Registration No. KL17567

ESI Registration No. 13/25163/14

Service Tax No. 214/ST/GTA/PNP/2005

AUDITORS OF THE COMPANY

Vinod Grover & Associates

Charted Accountant

Panipat

BANKERS OF THE COMPANY

1. Oriental Bank Of Commerce 2. Oriental Bank Of Commerce

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3. Punjab National Bank, IGIA

4. Punjab National Bank, PTG

5. State Bank Of India, Airport

Mumbai

6. State Bank Of India, MT

Branch Panipat

7. State Bank Of India, N.S.

Mumbai

8. Union Bank Of India

9. Vijayaya Bank

ASSOCIATIONS OF PARTNERS IN OTHER

CONCERNS/FIRMS/COMPANIES:

Shri Ashok Sharma: Partner in Rivers.

Shri Vinod Kathuria Partner in Rivers, Associates in K K

Associates.

Shri Ved Parkash Bharti Partner in Rivers & Concept India.

Director in Le gem Hotel Pvt.Ltd,

Radhey Radhey Loomtex Pvt.Ltd,

Krishna Krishna Loomtex Pvt.Ltd,

1.5 ORGANIZATION CHART

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Fig: 1.1

Organizational Chart

COMPANY’S SHARE IN RELATED TO INDUSTRY:

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Fig: 1.2

Company’s share in textile industry

Total export from panipat is approx. 500crore and part of concept creations

export is 8.5% of total.

CUSTOMERS CHOICES OF PRODUCT:

BATHMATS

CARPET

BEDCOVERS

CURTAINS

SHAGGY CARPETS

TABLE COVER

NAPKIN

1.6 CAREER

‘Concept creations’ is a leader in the commercial carpet industry. They offer a

competitive compensation and benefits package to most of our employees.

Their primary customer contacts include commercial interior designers,

architects, flooring contractors/carpet dealers, and corporate clients. The work

environment is fast-paced, highly competitive but congenial.

Team consists of go-getters who have:

Positive attitude

Ability to inspire others

Potential to grow and assume higher responsibilities for contributing to the

success of the organization

They may have opportunities for you in their sales, design and export

department.

Desirable Experience

In the Interior Furnishings Industry.

Proven ability to understand the work.

Market knowledge and a clear understanding of home furnishing products.

1.7 PRODUCT LINE

Home Carpets Home

Furnishings

Floor

coverings

Kids

Collection

Profile

Hand Tufted Curtains Bath Mats Kids

Carpets

Latest

CreationsHandloom Cushions Jute Durries Bed Linen

Shaggy carpets Throws Hemp Cushions

Hand Knotted Bed Linen Leather Curtains

Custom Table Linen Cotton Durries Throws

Carpets:

They make perfect quality, smell free carpets in Plain, Modern and Oriental

Designs in Hand Tufted and Handloom Carpets. They have an exclusive

collection of Shaggy / Berber high pile carpets and we also specialize in making

customized Designer Carpets, Prayer Rugs, Theme Carpets and Contract

Carpets with company logo. Plus they also make plain Boardroom Carpet.

Home Furnishings:

They produce a complete range product – right from Bath Mats, Bed Covers,

Curtains, Cushions, Durries and Rugs to Placemats, Napkins, Table Covers,

apart from a variety of other home furnishings.

Floor Coverings:

Concept Creations offers an exclusive range of Floor Coverings such as Mats

and Durries in a variety of materials.

Kids Collection:

They produce a complete range of specially designed kid’s products including

Bed Linen, Cushions. To add that exclusive childlike ambience to your children’s

room, choose from our selection of exquisite Kids Carpets, Curtains, Throws and

Bath Mats, all Designed in colors, patterns and concepts ideal for children.

1.8 COMPETITIVE EDGE:

Due to our consistency in high quality products and timely delivery, they have

built up a formidable reputation in the market. Leading position among their

competitors is proven by the fact that many importers are choosing them over

their earlier suppliers from India and giving them all their future orders.

Another reason for the boom in demand for Indian Hand Tufted Woolen Carpets

is due to the long time recession in Hand Knotted Carpets and cut throat

competition in the Machine-Made Carpet industry. Hence, a lot of traders,

importers and machine-made carpet manufacturers are focusing on Indian Hand

Tufted Woolen Carpets. Concept Creations comes in here as a much sought

after supplier being the only organized company in India who can take care of all

types of customer requirements.

1.9 PROCESS FOR MANUFACTURING OF TEXTILE PRODUCTS

Fig: 1.3

Process for manufacturing of textile

1.10 LATEST CREATIONS

Carpets:

Bright colors Ethnic patterns in vogue Exquisite perfect finish

Floor Coverings:

Earthy brown Rim in black Smart & elegant

Home Furnishings:

Floral elegance summer colors

Kids Collection:

Flower n fun summer colors

The Handloom sector plays a very important role in the country’s economy. It is

one of the largest economic activity providing direct employment to over 65 lakes

persons engaged in weaving and allied activities. Due to effective government

intervention through financial assistance and implementation of various

development and welfare schemes, this sector has been able to with stand

competition from the power loom and mill sectors. Handloom, once the symbol of

self reliance and generating employment for millions of small weavers, is on the

verge of collapse following like increase in prices of raw-materials, fall in demand

and poor marketing. Handlooms are an important craft product and comprise the

largest cottage industry of the country. Millions of looms across the country are

engaged in weaving cotton, silk and other natural fibers. There is hardly a village

where weavers do not exist, each weaving out the traditional beauty of India’s

own precious heritage.

Spread in 1754 square Kilometer area. Panipat is located 90 K.M. away

from New Delhi in North having the population more than 8.33501 Lakhs. Panipat

is also called the city of weavers. Panipat is one off the developing city of

Haryana. The economy of city is based on several industrial agriculture, tourism

and handloom etc. Many Central and State Government Industrial units have

been established here. These are Panipat Thermal Power Station, National

Fertilizers Limited (NFL), Indian Oil Corporation; many private companies also

have been set up in this town like as PEPSI in drinks, ANSAL in construction,

Tanta Road construction etc.

Panipat is famous fro “PANJA DURRIE” a kind of floor covering, which is

in great demand in India and abroad. Originally, it was a traditional item made by

village women meant to be a part of daughter’s dowry. But slowly the product

came to be recognized beyond Panipat and growing demand for durries resulted

in a burgeoning numbers of private and state owned weaving units with in the

city.

The “Punjab Durries” is only one of the floor covering made in Panipat.

There are several other kinds of floor covering like large sized handloom durries,

chindi or fabric and leather scrap durries, rugs, druggist, and carpets. Also made

and marketed locally are blankets, khes and vast variety of furnishing fabrics.

Handloom goods are the important cottage and home industries taken up

by the people. Among the women folk, handloom cloth weaving is the traditional

occupation of the district. Their production of cloths is mainly household clothes

for every day use and traditional ceremonial dress etc. They feel proud to wear

clothes which they themselves have made.

The whole handloom industry survives on heavy subsidies today, as it has

always done. Which means that sales depend on the rebates offered during

festival times? There are no returns here for government as the weavers. Most

handloom co-operatives are permanently broke, the subsidies do not arrive in

time, and the weavers lead a precarious existence. The success stories of a

Kanchipuram or Banares are few and isolated to mean much. Take to any of the

weavers from weavers from Maduri to Chanderi and they will cavil at having to sit

at the loom for days and months. Handloom is extremely a time consuming. The

returns for weaving cotton fabrics are insufficient compensation for the labors. In

general, no weaver wants his children to break their backs and hearts in this

hereditary profession.

SCHEME OR DEVELOPMENT OF HANDLOOM INDUSTRY

1. PROJECT PACKAGE SCHEME

Under the scheme, the facilities are availability of margin money, supply

of looms and accessories, setting up of work shed, training of weavers,

setting up of dye house and go down, design input, publicity and

advertisement, common facility centre, sale centre, infrastructure

development etc. So far, 2407 weavers have been assisted involving an

amount of Rs.262.53 lakhs under the scheme.

2. INTEGRATED HANDLOOM VILLAGE DEVELOPMENT PROJECT

Under the scheme, assistance are available for construction of work

shed, common facility centre, training of weavers, supply of looms,

participation in exhibition, provision of margin money and infrastructure

development. So for, 1100 weavers have been assisted involving an

amount of Rs 181.67 lakhs under the scheme.

3. WORK SHED –CUM-HOUSING

Handloom weaving is mostly in the cottage scale and there in need for

adequate work shed. In view of this, Government of India action for

weavers has been assisted under the scheme involving an amount of

Rs. 216.00 lakhs.

4. DEEN DAYAL HATHKARGHA PROTSAHAN YOJONA

The Scheme has come into operation with effect from April 2001. It is a

comprehensive scheme for Handloom Sector to take care of wide range

of activities such as; product development, Infrastructural and

institutional and institutional support, training of weavers, supply of

equipment and marketing support etc. Both at macro and micro levels in

an integrated and coordinate manner for an overall development and

benefit of Handloom Weavers. The Government of India has sanctioned

a sum of Rs 240.69 lakhs and released a sum of Rs 120.28 lakhs as first

installment Central Share for implementation of 64 projects.

5. HEALTH PACKAGE SCHEME

Under the scheme, financial assistance in the form of medical

reimbursement is provided to weavers, for medical treatment of diseases

like asthma, T.B, inflammation of alimentary system etc. So for, 8315

weavers have been assisted involving Rs. 50.95 Lakhs under the

scheme.

6. MISCELLANEOUS HANDLOOM SCHEMES

Over and above these schemes, 1500 weavers have been assisted

involving Rs. 1.20 Lakhs under the Group Insurance Scheme, 1425

weavers involving Rs. 2.56 Lakhs under the Thrift Fund Scheme, 4500

weavers involving Rs. 90.00 Lakhs under the scheme of Margin Money

for Destitute Handloom Weavers involving Rs. 31.90 Lakhs with the

assistance from the government of India.

7. NEW INTITATIVES

In order, to provide financial assistance in an integrated manner too the

handloom weavers and strengthen the design segment of the fabrics.

Government of India had taken the new initiatives in addition to on going

other schemes and programmes by launching new schemes, namely,

Deen Dayal Hath Kargha Protsahan Yojana and set up a National

Center for Textile Design (NCTD) recently.

8. NATIONAL CENTRE FOR TEXTILE DESIGN

The National centre for Textile design has been set up to provide

information on fashion Trends, Colors and Design forecast, for the

benefits of weavers, exporters, handlooms agencies and all other

persons connected with the textile sector.

NCTD aims fro undertake online activities such as trends and forecast

both at National and International levels, to set up an extensive

database or cyber yellow pages, a design pool the virtual Museum of

Heritage Textiles etc. the center aims to benefits the weavers by linking

him to the market.

3.1 MAIN OBJECTIVE

“To analyze the Working capital” in Concept Creations Ltd to study day to day

operations of the company. ”

Sub Objectives of the Study

1 To understand and analyze the working capital of the company over the

year.

2 To get a feel of corporate life, its functioning & various interaction style.

3 To get the first hand experience in the field of manufacturing unit.

3.2 RESEARCH METHODOLOGY

Research in general refers to the search of knowledge. One can also define

research as a scientific & systematic collection of information.

In simple words research is the careful investigation or enquiry of markets

especially through search for new facts in any branch of knowledge.

Redman & mory defines research “systematized effort to gain new

knowledge.”

Analytical Tools

Microsoft Excel Bar charts (A bar chart or bar graph is a chart with rectangular

bars with lengths proportional to the values that they represent. Bar charts are

used for comparing two or more values that were taken over time or on different

conditions, usually on small data sets. The bars can be horizontally oriented (also

called bar chart) or vertically oriented (also called column chart). Sometimes a

stretched graphic is used instead of a solid bar. It is a visual display used to

compare the amount or frequency of occurrence of different characteristics of

data and it is used to compare groups of data.

Justification of study

Working capital is very important aspect of finance of every company. It is use in

day to day working activities involved in an organization so this topic is chosen so

as to known changes in

Working capital of Concept Creations. This topic also helps in getting practical

knowledge of the finance area.

3.3 RESEARCH DESIGN

Research Designs the way in which the research is carried out. It works as a blue

print. Research Design is the arrangement of the conditions for the collections

and analysis of data in a manner that to combine relevance to the research

purpose with economy in procedure.

3.4 TYPES OF RESEARCH DESIGN

Exploratory Research Design

Descriptive & Diagnostic Research Design

Experimental Research Design

Exploratory Research Design

In it, a problem is formulated for precise investigation and working and

hypothesis are developed.

Descriptive & Diagnostic Research Design

In descriptive research design: those studies are taken which are concerned with

describing the characteristics of a particular individual or a group.

Experimental Research Design

In it casual relationships between the variables are tested. It is also known as

Hypothesis Testing Research Design

3.5 Data Collection Method:

Data collection is the basic step and of importance on which authenticity of study

depends. Before going for the study the researcher have to collect the

appropriate data required for the study. Source of allocation of data are two

types.

1. Primary Data: primary data are to be collected by the researcher, they are not

present in reports or journals etc. and can be collected through a number of method

which can be classified as follow

Personal interview of sample.

Telephonic interview.

E- Mails.

Observations.

Questionnaires.

Interviews.

The Primary data is not used in this project report.

2. Secondary Data: Secondary data are the data collected for some purpose other

than the research situations; such data are available from the sources such as

books, company reports, journals, rating organization, census department etc.. The

secondary data are readily available and therefore they are less costly and less time

consuming. Sources of secondary data are

Internets.

Book and journals.

Company reports.

Census department.

Research work of others.

This project report is based on secondary data. Following statements are used

for analysis and to derive the results required.

Annual Report

Files maintained by the department

4.1 MEANING OF WORKING CAPITAL

Working capital refers to the cash a business requires for day-to-day operations,

or, more specifically, for financing the conversion of raw materials into finished

goods, which the company sells for payment. Among the most important items of

working capital are levels of inventory, accounts receivable, and accounts

payable. Analysts look at these items for signs of a company's efficiency and

financial strength.

Positive working capital means that the company is able to pay off its short-term

liabilities. Negative working capital means that a company currently is unable to

meet its short-term liabilities with its current assets (cash, accounts receivable

and inventory).

Also known as "net working capital", or the "working capital ratio".

Accounts receivable (current asset)

Inventory (current assets), and

Accounts payable (current liability)

Concept of Working Capital:-

There are two concepts of working capital -

1. Gross working capital

2. Net working capital

Gross Working Capital:-

Gross working capital refers to the firm’s investment in current assets.

Current assets are assets, which can be converted into cash within an

accounting year. The main components of current assets are cash, debtors,

marketable securities and stock. The gross working capital concept focuses

attention on two aspects of current asset management.

Net Working Capital:-

Net working capital refers to the difference between current assets and current

liabilities.

Current liabilities are those claims of outsiders, which are expected to mature for

payment within an accounting year. Current liabilities include creditors, bills

payable and outstanding expense. Net working capital can be positive or

negative.

Net working capital is a qualitative concept. It indicate the liquidity position of the

firm and suggests the extent to which working capital needs may be financed by

permanent source of funds such as shares, debentures, long term debts etc. It

covers the question of judicial mix of long and short-term funds for financing

current assets.

In order to protect their interest, short-term creditors like a company to maintain a

positive NWC. Conventionally the ratio of CA and CL is 2:1. A negative NWC

means a negative liquidity, which may prove to be harmful to company,

reputation. It poses a threat on the company’s solvency and makes it unsafe and

unsound.

A. Optimum investment in current assets.

B. Financing of current assets.

4.2 NEED FOR WORKING CAPITAL:-

The basic objective of financial management is to maximize shareholder’s

wealth. For this it is Necessary to generate sufficient profits. The extent to it,

which the profit can be, earn, largely depend on the magnitude of sales.

However sales do not convert into cash instantly. There is invariable the time gap

between the sale of goods and receipt of cash. There is, therefore, a need for

working capital in the form of CA to deal with the problem arising. Out of the lack

of immediate realization of cash again goods sold. Therefore, sufficient WC is

necessary to sustain sales activity.

The operating cycle can be said to be at the heart of the need for WC. The

continuing flow from cash to suppliers, to inventory, to account receivables and

back into cash is known as operating cycle.

The operating cycle of a manufacturing Company involves three phases:

Acquisition of resources – such as raw materials, labor, power and fuel

etc.

Manufacturing of product – Which includes conversion of raw material

into WIP into finished goods?

Sale of the product – either on cash or on credit. Credit sales create

account receivable for collection.

4.3 IMPORTANCE

The better a company manages its working capital, the less the company needs

to borrow. Without adequate working capital there can be no progress. A

business must expand and assert itself in a competitive world. If expansion takes

place without the firm being able to cover its commitments, then over trading will

be the result. Available working capital is stretched a capacity until, finally,

bankruptcy or liquidation is forced upon the business. Even companies with cash

surpluses need to manage working capital to ensure that those surpluses are

invested in ways that will generate suitable returns for investors.

The lengths of production and sales cycle pay an important part in the over

trading process. If short, and the period of credit is not excessive, then money

from sales will help to replenish working capital. However the longer the total

period from the buying of the raw material to the receipt of the cash from sales,

the more likely is overtrading.

Working capital management can be subject to compromise and best practice is

often hard to identify, pursue or benchmark. From a funding optimization

perspective, however, generating extra cash from internal sources has the

advantage over bank and public debt of greater opportunity and access, typically

at lower cost.

In terms of the impact felt across the company in the business units and

customer- facing staff, it is not the financial but the operational benefits that are

most keenly felt following a reappraisal of working capital practices. The greater

efficiencies in dealing with customers and suppliers greater control of and

information on the processes related to ordering/ paying and delivering / getting

paid- can ultimately feed into improve delivery of goods and services at lower

cost.

Improve working capital leads to increase shareholder value because it enables

firms to generate more profit with less capital.

4.4 WORKING CAPITAL CYCLE:

Cash flows in a cycle into, around and out of a business. It is the business's life

blood and every

Manager’s primary task is to help keep it flowing and to use the cash flow to

generate profits. If a business is operating profitably, then it should, in theory,

generate cash surpluses. If it doesn't generate surpluses, the business will

eventually run out of cash and expire.

The faster a business expands, the more cash it will need for working capital and

investment. The cheapest and best sources of cash exist as working capital right

within business. Good management of working capital will generate cash will

help improve profits and reduce risks. Bear in mind that the cost of providing

credit to customers and holding stocks can represent a

substantial proportion of a firm's total profits.

There are two elements in the business cycle that absorb cash - Inventory

(stocks and work-in-progress) and Receivables (debtors owing you money).

The main sources of cash are Payables (your creditors) and Equity and Loans.

Fig: 4.1

Working Capital Cycle

OPERATING CYCLE= R + W + F + D – C

R = Raw material shortage period.

W = Work in progress holding period.

F = Finished goods shortage period.

D = Debtors collection period.

C = Credit period availed.

1 Raw material shortage period = Avg. Stock of raw material

Avg. Cost of raw material consumption per day

2 WIP holding Period = Avg. WIP Inventory

Avg. Cost of production per day

3 Finished Goods storage period = Avg. Stock of finished Goods

Avg. Cost of goods sold per day

4 Debtors collection period = Avg. book debts

Avg. credit sales per day

5 Credit period availed = Avg. trade creditors

Avg. credit purchases per day

4.5 IMPORTANT TERMS OF WORKING CAPITAL

Fig: 4.2

Important terms of working capital

OVER CAPITALISATION: Over capitalization implies that a company has

too large funds for its requirements, resulting in a low rate of return a

situation which implies a less than optimal use of resources. A firm has,

therefore, to be very careful in estimating working capital requirements.

OPTIMUM WORKINGCAPITAL: If a company’s current assets do not

exceed its current liabilities, then it may run into trouble with creditors that

want their money quickly. The working capital ratio which measures the

ability to pay back can be calculated current assets divided by current

liability.

It is understood that current ratio of 2:1 for a manufacturing company

implies that firm has an optimum capital structure.

UNDER CAPITAISATION: In the firm has inadequate working capital, it is

said to be under-capitalized. Such a firms runs the risks of insolvency.

This is because; paucity of working capital may lead to a situation where

the firm may not able to meet its liability.

4.6 SOURCES OF ADDITIONAL WORKING CAPITAL

Sources of additional working capital include the following:

Existing cash reserves

Profits (when you secure it as cash.

Payables (credit from suppliers)

New equity or loans from shareholders

Bank overdrafts or lines of credit

Long-term loans

If you have insufficient working capital and try to increase sales, you can easily

over-stretch the financial resources of the business. This is called overtrading.

Early warning signs include:

Pressure on existing cash

Exceptional cash generating activities e.g. offering high discounts for early

cash payment

Bank overdraft exceeds authorized limit

Seeking greater overdrafts or lines of credit

Part-paying suppliers or other creditors

Paying bills in cash to secure additional supplies

Management pre-occupation with surviving rather than managing

Frequent short-term emergency requests to the bank (to help pay wages,

pending receipt of a cheque).

4.7 WORKING CAPITAL REQUIREMENTS

Working capital needs of a firm are influenced by numerous factors.

Important ones are:

a) Nature and size of business: Working capital requirements of a firm

are basically influenced by the nature of its business. Manufacturing

firms require less working capital as compare to trading and financial

firms. However, certain manufacturing firms also require a heavy

investment in working capital. Public utility concerns require less capital.

b) Manufacturing Cycle: The production process consumes time right

from the purchase and use of raw materials to the completion of finished

goods. The longer the duration, the greater the requirement of working

capital for the firm. Thus, if there are alternative ways of manufacturing a

product, the process with shortest manufacturing cycle should be

chosen.

c) Production policy: If the production is evenly spread over the entire

year, working capital requirements are greater, because the inventories

will be unnecessary accumulated during off- season period, but if the

production schedule favors a varying production plan as per the

seasonal requirements, working capital is required to a greater extent

during a specified season only.

d) Business Fluctuations: Most firms experience seasonal and cyclical

fluctuations in demand for their products and services. On account of

market boom, sales increases and, as a consequence, the requirement

of inventories and debtors increase. Slack seasons reduce the

requirements of investment in working capital.

e) Firm Credit Policy: The credit policy of a firm affects the working capital

by influencing the level of book debts. Liberal credit policy requires more

working capital, as there will be more investment in debtors because the

collections would also be slower then. In the same way, an org. , which

has a very efficient debt collection system and offer strict credit terms will

require lesser working capital as compare to organization where debt

collection system is not so efficient.

f) Ability of credit: The working capital requirements of a firm are also

affected by credit terms granted by its creditors. If the credit period

allowed to the company is more, the requirements of working capital

would be less for the company. If the company does not enjoy liberal

credit facilities from its suppliers, it will have to arrange for greater funds

for investment in current assets.

g) Efficiency of operations: The operating efficiency of a firm relates to

optimum utilization of resources at minimum costs. If the operation of the

company is efficiently managed, the operating costs would be low and

the resources would be utilized in the best possible manner resulting in

speeding up of the working capital cycle and thus, reducing the working

capital requirements.

h) Dynamic attitudes: If the management of the firm is dynamic, thinking

in terms of expanding the business or diversifying it, greater funds are

required by the business. The main reason why more funds are required

early is that advance planning is essential if the firm is to expand and

grow.

i) Inventory policies: This has an impact on the working capital

requirements since large amount of funds is normally locked up in

inventories. An efficient firm may stock raw material for smaller period

and may require lower working capital.

j) Price Fluctuations: Price- level changes, particularly inflation, have a

great effect on the requirements of working capital. In periods of rising

prices, more funds are required to be invested in working capital. Same

level of operations can be conducted only with greater funds of money

falls.

k) Supply Fluctuations: Regular supply of raw materials and labor would

cause lesser working capital requirements. If large quantities of raw

material are required to be stored because of non-availability at a later

date or on account of increased prices, more funds are needed for

working capital.

l) Abnormal Factors: Factors such as strikes and lockouts require

additional working capital. Recessionary conditions require more fund for

working capital to maintain same amount of current assets.

4.8 TYPES OF WORKING CAPITAL: (from point of view of time)

Fig: 4.3

Types of working capital

Permanent Working Capital: Permanent working capital refers to hard

core Working Capital. It is used that minimum level of investment in the

current assets that is carried by the business at all to carry out minimum

level of activities.

The following are the characteristics of permanent working capital:-

a) Amount of permanent working capital remains in the business is one

form or the other. The suppliers of such WC should not accept its

return during the lifetime of the firm.

b) It grows with the size of the firm. Permanent WC is permanently

needed for the business and therefore, it should be financed out of

long term funds.

Temporary Working Capital: Temporary working capital is that part of

working capital, which is required by a business above Permanent working

capital. It is also called variable working capital. Since the volume of

temporary working capital keep on fluctuating time by time according to

the business activities it may be financed by short term sources.

Amount

Of

WC

Fig: 4.4

Permanent and Temporary Working Capital of a Stable Firm

It is shown in the above diagram that permanent WC is stable while temporary

WC is fluctuating and increasing and decreasing in accordance with seasonal

demands.

In the case of an expanding firm the permanent WC line may not be horizontal.

This is because the demand for permanent CA might be increasing (or

decreasing) to support a rising level of activities. In that case line should be

raising one as follows

Both kind of WC are necessary to facilitate the sales process through the

operating cycle. Temporary WC is created to meet liquidity requirement that are

of purely transient nature.

Temporary WC

Permanente WC

Time

Fig: 4.5

Permanent and Temporary WC of a Raising Firm

4.9 COMPONENTS OF WORKING CAPITAL:-

There are two basic components of Working Capital

(a) Current assets.

(b) Current liabilities.

Effective management of working capital calls for effective management of these

components. Current assets management includes management of cash,

inventories, account receivables etc. And current liabilities management includes

creditor’s management etc.

4.10 INTRODUCTION TO WORKING CAPITAL MANAGEMENT

Temporary WC

Permanent WC

Amount Of WC

Time

Working Capital management is a significant face of financial management.

Working Capital is referred to as the “Life–Blood of any business firm”. In a

manufacturing concern, Management of working capital requires a great deal of

time of managers over its different issues:-

Framing working capital policies.

Assessing the needed level of working capital.

Arranging short-term financing.

Controlling the movement of cash.

Administering accounts receivables and

Monitoring investment in inventories.

Working capital in simple terms is the amount of funds which a company must

have, to finance its day to day operations. It can also be regarded as the

proportion of company’s total capital which is employed in short term operation.

Besides these issues, management of working capital

Has been the point of discussion because of ever growing demand for short term

finance, its increasing scarcity of finance. It is discipline that seeks proper

policies for managing current assets and current liabilities for maximizing the

benefits. An effective management of working capital enables a firm to maximize

the profitability and also to maintain adequate liquidity in the business as

maintaining optimum level of working capital is the ultimate objective with which

finance manager is seriously concerned.

So, to carry on the production and distribute activities smoothly and to ensure

Higher Profitability and to maintain proper Liquidity, an adequate and optimum

level of working capital is required.

Considering the above issues, study has been carried out in particular to assess

the requirement of working capital in Concept creations. Various options to

finance the short term requirement and ways and means of control of utilization

of available resources because today industries find it difficult to procure

adequate credit. Therefore the basic concern is to optimize the use of available

resources through the effective and efficient management of working capital.

In financial literature, there exits two concepts namely Gross Concept & Net

Concept of working capital. Gross working capital concept refers to current

assets viz. Cash, Marketable Securities, Inventories of Raw Material, Work in

Progress, Finished Goods and Receivables. Net working capital concept refers to

the difference between Current Assets and Current Liabilities.

Working Capital can be classified into Fixed or Permanent and Variable or

Fluctuating parts. The minimum level of investment in current assets regularly

employed in extra working capital needed to support the changing nature of the

activity is called Variable / Fluctuating Working Capital.

Working Capital Management is thus concerned with all aspects of

managing Current Assets and Current liabilities etc.

1. Level of investment in each aspect of current assets.

2. Financing or working capital, mix of various sources of financing, managing

bills payable, short term bank loans, deposits.

3. Inter relatedness of various aspects of business. For example inventory level

keeps changing acc. To changing levels of sales. During higher sales, inventory

decreases, cash balances or receivables increases.

Thus all the current assets decisions are inter related and studies of Working

Capital Management constitute all the inter related areas as shown:

4.11 COMPONENTS OF WORKING CAPITAL MANAGEMENT

Components of working capital management

Inventory control:

The objective of inventory management is to minimize the costs associated with

holding inventories without impairing operational efficiency. The problem in

Inventory Management is to determine the optimum level of inventories and to

maintain the same. The optimum level

Should ensure that the firm does not suffer on account of production and sales

requirements, keeping in view the minimum possible costs in order to maximize

profitability. Inventories are stock of the product, a company is manufacturing for

sale. Inventories can exist in the form of raw material, work-in-progress, finished

goods, components and supplies, whereas motive for holding inventories can be

transaction motive, precautionary motive and speculative motive. Inventories

constitute the most significant part of Current assets. Because of the large size of

inventories maintained by firms, a considerable amount of funds is required to be

committed to them. It is therefore, absolutely imperative to manage inventory

efficiently and effectively in order to avoid unnecessary investment. Managing

inventory is a juggling act. Excessive stock can place a heavy burden on the

cash resources of a business whereas insufficient stocks can result in lost sales,

delays for customers etc. The less time a company holds inventory, the lower its

working capital investment will be. There is a magic threshold, beyond which the

length of time the seller needs to acquire materials and make and ship a product

is less than the length of time between order placements and when the customer

expects to receive the product. If a business can cross that line, it can completely

eliminate inventory and acquire exactly the right materials after each sale has

been made.

Inventory Management Techniques

Inventory Management techniques include the followings:

I. Effective and efficient purchasing, storage and issuing procedures.

II. Setting of various levels like max., min., reorder level.

III. Fixation of Economic Order Quantity.

IV. Establishment of inventory budgets.

V. Min-Max plan.

VI. Two-Bin system.

VII. ABC analysis.

VIII. VED analysis.

IX. XYZ analysis.

X. Use of inventory rations.

XI. Aging Schedule of inventories

For Inventory Management Concept creations has taken the following steps:

Business Process Re-Engineering

All the manufacturing facilities are being modernized in accordance with global

norms, towards this substantial investment in R&D.

Total Quality Management

Concept creations Limited are following TQM. It aims at zero defect production,

which has far reaching implications on inventory level.

Just in Time Approach

Concept creations Limited, like many large manufactures operate on a just – in -

time (JIT) basis whereby all the components to be assembled on a particular day,

arrive at the factory on same day. This help to minimize manufacturing costs as

JIT stocks as discussed above take

Up little space, minimize stock for a very short time; they are able to conserve

substantial cash, which is otherwise blocked up in inventories.

Vendor Reduction

The company today is following the policy of reducing the number of vendors. It

is trying to shrink the vendor base radically and then trying to use its clout to

negotiate longer terms with the vendor.

Payable Management

Creditors are a vital part of effective cash management and should be managed

carefully to enhance the cash position. Purchasing initiates cash outflows and an

over-zealous purchasing function can create liquidity problems. Ironically, some

companies looking to take working capital off the balance sheet nurture slow,

inefficient or even obstructive A/P process. It’s one case where negligence can

improve financial performance. But squeezing the vendors is a shortsighted

policy. A better strategy is to shrink the vendor base radically, then use one’s

clout to negotiable longer terms with the vendors. Purchase quantities should be

geared to demand forecasts. Order quantities should be used which takes

account of stock holding and purchasing costs. The cost to the company of

carrying stock should be clearly defined. A Company should have alternative

sources of supply. It should get quotes from Major suppliers and shop around for

the best discounts, credit terms and reduce dependence on a single supplier.

Maximum Level

It is the largest quantity of a particular material, which should be kept in the store

at any one time. The fixation of maximum level is necessary to avoid

unnecessary blocking up of capital in inventories.

Minimum level

The minimum level is the lowest quantitative balance of material in hand, which

must be maintained at all, times so that the assembly line may not be stopped on

account of non availability of materials.

Re-Ordering Level

It is the point at which if the material in store reaches, further supplies must be

ordered. The re-ordering level is fixed somewhere between maximum and

minimum level each such a way that the quantity of material represented by the

difference between the re-ordering level and minimum level will be sufficient to

meet the demands of production till the order materializes and supplies are

received.

Economic order quantity

It refers to the size of order, which gives maximum economy in purchasing any

materials. It is also referred to as optimum or standard ordering quantity. It is

fixed after taking into consideration ordering cost, stock out cost and inventory

carrying cost the EOQ is determined by formula method, tabular method or

graphic method.

Ordering cost

It is the cost of placing an order and securing the supplies. The more frequently

orders are placed and fewer the quantities purchased on each order, the greater

will be the ordering cost and vice versa.

Stock out Cost

In includes the cost of expediting purchases, obtaining rush deliveries, keeping

track of back orders etc.

Inventories Carrying Cost

It is the cost of keeping item in stock. It includes interest on investment,

obsolescence loses, storekeeping cost, insurance premium etc

Perpetual Inventory System

It is also known as automatic inventory system. It is a method of recording store

balances after every receipt and issue, to facilitate regular checking and to

obviate closing down for stocktaking.

Min- Max Plan

This is one of the oldest techniques of inventory control. According to this

technique for each item of inventory the maximum and minimum levels are fixed.

The maximum level lays down the limit above which an inventory item will not be

kept in the stores.

Two bin system

In case of this technique, for each item of inventory two bins are maintained. The

first bin contains such quantity of inventory, which is sufficient to meet the

consumption requirement till the next order is placed and the second contains the

safety stock.

Order Cycling System

In case of this technique the stock of each item of inventory is reviewed

periodically, e.g., monthly, BI-monthly or quarterly. In case the review discloses

that stock level of a particular item of inventory will not be sufficient till the next

schedule that of review on the basis of probable rate of consumption, an order is

placed to replenish its supply

ABC Analysis

ABC analysis is the technique of exercising selective control over inventory item

the technique is based on assumption that a firm should not exercise some

degree of control on all items of inventory. It should rather keep greater control

over those items, which are more costly, compared to those items, which are less

costly. According to this approach, the inventory items are divided into three

categories: A, B and C.

VED Analysis

VED Analysis is of the nature of ABC analysis though it is generally used in case

of spare parts. The parts are classified into three categories – vital, Essential and

desirable the firm keeps spare parts in stock only for lead-time, as these are

those items, which are readily available in the market.

XYZ Analysis

XYZ analysis is based on value of inventory in stock. It is different from ABC

analysis, which is based on value of materials consumed and VED analysis,

which is base on relative importance of inventory in stock.

Aging Schedule of Inventory

Under this inventories are classified according to age. It helps in identifying

inventories, which are moving slowly into production or sales.

Receivable control:

The third importance of current assets is the accounts receivable. The credit and

collection policies are to be properly laid down and effectively implemented to

manage the account receivable efficiently. The credit policies should be such

which balance the risk on the one hand and the profitability on the other. The

investment in receivables should be at an optimum level - which can be

determined by a trade – off between the costs of receivables (including the bad

debt losses) and the profit on sales. Collection policies should ensure timely

collection of dues so As to minimize the risk of bad debt-losses. The efficiency of

firm’s collection policy is measured by the rate at which credit sales are

converted into cash. The term receivable is defined as “debt owed to the firm by

customers arising from sales of goods in the ordinary course of business”. The

sale of goods on credit is an essential part of modern day business.

The credit sales are generally made on open account in the sense that there are

no formal obligations through a financial instrument. However extension of credit

involves risks and cost. Management should weigh the benefits as well as the

cost to determine the goal of receivable management.

The benefits from receivables are the increased sales and profits anticipated

because of more liberal policy. When firm extend trade credit, i.e. invest in

receivables, they intend on increase the sales level. The motive of liberal credit

policy can be either growth oriented or sales retention. The extension of credit

has a major impact on sales, costs and profitability. Other things being equal, a

relatively liberal policy and therefore higher investments in receivables will

produce larger sales. However the cost will be higher with liberal policies then

with more stringent measures. Therefore account receivable management should

aim at a trade- of between profit and risk.

The costs associated with the extension of credit and account receivables are

collection cost, capital cost, delinquency cost and default cost. Collection costs

are administrative costs incurred in collecting the receivables from the customers

to whom credit sale has been made.

Decision areas

There are three crucial decision areas in receivable management:

Credit Policies

Credit terms

Collection Policies

Credit Policies

The credit policy of a firm provides the framework to determine whether or not to

extend credit to a customer and also how much credit to extend. It has two broad

dimensions, the first is credit standard and second is the credit analysis. Credit

standards represent the basic criteria for the extension of credit to customers.

The trade- off with reference to credit standards covers collection costs, average

collection period, level of bad debts losses and level of sales. With a relaxed

credit standard the collection costs, bad debts expenses and sales goes up and

in reverse case vice-versa happens. The second aspect of credit policy is credit

analysis. It begins with obtaining credit information of the customers and ends up

with the analysis of the obtained credit information. Information can be collected

either internally or externally.

Internal source of credit information is derived from the records of the firm. The

analysis of credit information should cover both qualitative as well as quantitative

aspects. The quantitative aspect is based on the available financial statements

whereas qualitative aspects cover the quality of management.

Credit terms

The second decision area in accounts receivable management is the credit

terms. After the credit standard has been establish and the credit worthiness of

the customers is assessed, the management of a firm must determine the terms

and conditions on which trade credit will be made available. Credit terms have

three components: credit period, cash discount and cash discount period. Credit

period is the duration of time for which trade credit is extended whereas cash

discount is the amount by which the over the due amount will be reduced thus

benefiting the customer.

The credit terms like the credit standard affect the profitability as well as the cost

of the firm therefore a firm should determine the credit terms on the basis of cost-

benefit trade-off.

Collection policies

The collection policies refer to the procedures followed to collect account

receivable when after expiry of the credit period they become due. This policy

covers two aspects: first is the degree of effort to collect the over due and second

is the type of collection efforts.

Cash control:

Cash is the most important component of working capital. It is most liquid asset

of an enterprise. In fact cash is the central point around which all business

activities operate and move. It is both the beginning and end of working capital

cycle. A business enterprise always strive to maintain sufficient cash balance,

neither in excess nor in less, as the surplus of cash will render it idle whereas

shortage of cash funds may threaten the firm’s liquidity and solvency, resulting

into danger to its survival too. So, to minimize these run-out costs and to

maintain liquidity along with profitability; proper and efficient cash management is

of paramount importance in a business organization.

4.12 IMPORTANCE OF WORKING CAPITAL MANAGEMENT

The study of Working Capital Management is of major importance to internal and

external analysis. It is being increasingly realized that inadequacy or

mismanagement of working capital leads to failure of business.

Following points emphasize the importance of working capital management:

1. Time involved: Financial manager has to devote the largest portion of his

time in day to day internal operation of the firm and hence the importance of

working capital management.

2. Relationships with sales growth: The need to finance current assets in

closely and directly related to growth of sales. If sales increase, more

amounts are required to be invested in accounts receivable. Moreover, in

anticipation, greater stocks are to be kept for the increased sales.

3. Quantum of investment: in most of the concerns, which are not

manufacturing, current assets may be even more than half of the total assets

of a business. Large investment requires careful attention of current assets of

the business. Large investment requires careful attention of the finance

management particularly since the investments tend to be relatively volatile.

4. Importance for small firms: Small firm cannot avoid investment in current

assets and therefore, for it the management of current assets assumes

special significance. It is so because of the difficulty in arranging long- term

loan also the effect being increased current

Liabilities on account of short-term-loans.

4.13 TECHNIQUES FOR CONTROL OF WORKING CAPITAL:

Cash forecasting technique can be used of control of funds flowing in and out of

business to check surpluses and shortages. Daily, weekly, monthly cash flow

statements are used to regulate flow of funds and arrange for fund shortage and

invest surplus cash.

Fund Flow Statement

Ratio Analysis

1. Fund Flow Statement -Fund flow statements are used to find changes in

assets over a period of time showing uses of funds and sources of funds.

Fund flow represents movement of all assets particularly of current assets

because movement in fixed assets is expected to be small except at times

of expansion or diversification.

2. Ratio Analysis -Ratio analysis is mainly used for working capital control.

Following ratios are commonly used.

Working Capital Management Performance using Ratio Analysis

A “ratio” is defined as the indicated quotient of two mathematical expressions

and as the relationship between two or more things. In financial analysis, a

ratio is used as a benchmark for evaluating the financial position and

performance of a firm.

Ratio analysis involves comparison for a useful interpretation of the financial

statements. Single ratio in itself does not indicate favorable or unfavorable

condition.

Therefore in this report it is compared with:

Past ratios, i.e. ratios calculated from the past financial statements of

the same company.

Since liquidity ratios and activity ratios helps to measure the firm ability to

meet current obligations and firms efficiency in utilizing its assets respectively.

Those two have been used.

Limitations of Ratio Analysis

It is difficult to decide on the proper basis of comparison.

Price level changes make the interpretation of ratio invalid.

The differences in the definition of items in the balance sheet and

profit & loss account make the interpretation of ratios difficult.

The results are based on highly summarized information.

Consequently situations, which require control, might not be apparent or

situations, which do not warrant

Significant effort might be unnecessarily highlighted.

LIQUIDITY RATIOS

Liquidity ratio measures the ability of the firm to meet its current obligations. It

is necessary to strike a proper balance between high liquidity and lack of

liquidity. A high degree of liquidity means that a firm’s fund will be

unnecessarily tied up in current assets. Whereas lack of liquidity, implies

failure of a company to meet its obligations due to lack of sufficient liquidity.

The ratios, which are used for the analysis of Concept creations liquidity

position in this report, are:

Current Ratio

Quick Ratio

Activity Ratio

CURRENT RATIO

Current ratio is calculated by dividing current assets by current liabilities

Current ratio

QUICK RATIO

Quick ratio establishes a relationship between quick or liquid assets and

current liabilities. An asset is liquid if it can be converted into cash

immediately or reasonably soon without a loss of value. Inventories are

considered to be less liquid therefore calculating quick ratio they are deducted

from current assets.

Acid-test ratio (Quick ratio)

ACTIVITY RATIOS

Activity Ratios are used to evaluate the efficiency with which the firm manages

and utilizes its assets. The ratios are called Turnover Ratios as they indicate the

speed with which the firm manages and utilizes its assets..Activity ratios, which

are used to analyze Concept creations effectiveness in Asset utilization, are:

Inventory Turnover Ratio

Fixed Assets Turnover Ratio

Creditors Turnover Ratio

INVENTORY TURNOVER RATIO

It indicates the efficiency of the firm in producing and selling its product. It is

calculated by dividing sales by avg. inventory. In a manufacturing company

inventory of finished goods is used to calculate inventory turnover.

Inventory turnover ratio

CREDITOR TURNOVER RATIO

Receivables Turnover Ratio

Though the days are very high and apparently appears to substitute right

collection, this extended credit has its own drawback like:

High interest inbuilt in cost system.

Sub-quality creditors may be accepted.

Quality of material may be accepted

FIXED ASSETS TURNOVER RATIO

A firm’s ability to produce a large volume of sales for a given amount of net

assets is the most important aspect of its operating performance. Unutilized or

underutilized assets increase the firm’s need for costly financing as well as

expenses for maintenance and upkeep. Fixed assets turnover is calculated by

dividing net sale by net fixed assets

Asset turnover

5.1 OBJECTIVES OF ANALYSIS AND INTERPRETATION

ANALYSIS & INTERPRETATION:

(1) FINANCIALS OF THE COMPANY

Financials of the Company

(For the year 01.04.2008 to 31.03.2009)

Particulars 2004-05

(Amount in

Rs.)

2005-06

(Amount in

Rs.)

2006-07

(Amount in

Rs.)

2007-08

(Amount in

Rs.)

2008-09

(Amount in

Rs.)

Sales 19,20,10,938.

59

16,54,97,291 16,46,54,975 17,61,76,614 12,84,95,906

.94

%

Increase

/Decrease in

Sales

(13.81%) (0.51%) 6.99% (27.06%)

Gross Profit 3,36,71,730.5

9

1,99,00,000 22,964,102.3

4

22,990,990.7

8

15,432,683.4

4

%

Increase/De

crease in

Gross Profit

40.90% 15.40% 0.12% (32.8%)

Net Profit 76,29,845.77 34,00,000 31,00,167.07 38,80,943.10 36,02,053.20

%

Increase/De

crease in

Net Profit

55.44% (8.8%) 25.18%

(7.2%)

Gross Profit

Ratio

17.54% 12.02% 13.95% 13.04% 12.01%

Net Profit

Ratio

3.97% 2.05% 1.88% 2.20% 2.80%

1. Comparative Analysis of Sales (Rs in Lacks):

Fig 5.1

Comparative Analysis of Sales

2004-05 Total sales are 1920.11

2005-06 Total sales are 1654.97

2006-07 Total sales are 1646.55

2007-08 Total sales are 1761.76

2008-09 Total sales are 1284.96

Table: 5.1

Comparative Analysis of Sales

Interpretation: According to the analysis sales have decreased from last three

years but in 2007-08 it increased but in 2008-09 it decreased again at very high

level due to recession.

2. % Increase/(Decrease) in Sales over Immediate preceding year:

Fig: 5.2

% Increase/ (Decrease) in Sales over Immediate preceding year

2005-06 % Decrease in Sales over Immediate preceding year is -

13.81

2006-07 % Increase in Sales over Immediate preceding year is -

0.51

2007-08 % Increase in Sales over Immediate preceding year is 6.99

2008-09 % Increase in Sales over Immediate preceding year is

27.06

Table: 5.2

% Increase in Sales over Immediate preceding year

Interpretation: According to the analysis % increase of sales over preceding

year as shown in fig: 5.2.

3. Comparative Analysis of Gross Profit (Rs in Lacks):

Fig: 5.3

Comparative Analysis of Gross Profit (Rs in Lacks)

2004-05 Total Gross Profit is 336.72

2005-06 Total Gross Profit is 199

2006-07 Total Gross Profit is 229.64

2007-08 Total Gross Profit is 229.91

2008-09 Total Gross Profit is 154.33

Table: 5.3

Total Gross Profit

Interpretation: According to the analysis total gross profit have decreased in

2005-06 but increase in the year 2006-07 & 2007-08 but decreased in 2008-

2009.

4. % Increase/(Decrease) in Gross Profit over Immediate preceding

year:

Fig: 5.4

% Increase/ (Decrease) in Gross Profit over Immediate preceding year

2005-06 % Increase in Gross Profit over Immediate preceding year

is 40.09

2006-07 % Decrease in Gross Profit over Immediate preceding year

is 15.40

2007-08 % Decrease in Gross Profit over Immediate preceding year

is 0.12

2008-09 % Increase in Gross Profit over Immediate preceding year

is 32.8

Table: 5.4

% Increase/ (Decrease) in Gross Profit

Interpretation: According to the analysis the gross profit of company have

decreased in 2006-07 &2007-08 but increase in 2008-09 by 32.8%.

5. Comparative Analysis of Net Profit (Rs in Lacks):

Fig: 5.5

Comparative Analysis of Net Profit (Rs in Lacks)

2004-05 Total Net Profit is 76.30

2005-06 Total Net Profit is 34

2006-07 Total Net Profit is 31.01

2007-08 Total Net Profit is 38.81

2008-09 Total Net Profit is 36.02

Table: 5.5

Total Net Profit

Interpretation: According to the analysis the net profit of company have

decreased in 2005-06 & 2006-07 but increased in 2007-08 but due to recession

N.P have decreased in 2008-09 by 36.02%.

6. % Increase/(Decrease) in Net Profit over Immediate preceding year:

Fig: 5.6

% Increase/ (Decrease) in Net Profit over Immediate preceding year

2005-06 % Increase in Net Profit over Immediate preceding year is

2.05

2006-07 % Decrease in Net Profit over Immediate preceding year is

1.88

2007-08 % Increase in Net Profit over Immediate preceding year is

2.2

2008-09 % Decrease in Net Profit over Immediate preceding year is

-7.2

Table: 5.6

% Increase/ (Decrease) in Net Profit

Interpretation: According to the analysis there is % increase in net profit in the

year 2005-06 & 2007-08 but decrease in 2006-07 & 2008-09.

7. Comparative Analysis of Gross Profit Ratio:

Fig: 5.7

Comparative Analysis of Gross Profit Ratio

2004-05 Total Gross Profit Ratio is 17.53

2005-06 Total Gross Profit Ratio is 12.02

2006-07 Total Gross Profit Ratio is 13.95

2007-08 Total Gross Profit Ratio is 13.04

2008-09 Total Gross Profit Ratio is 12.01

Table: 5.7

Total Gross Profit Ratio

Interpretation: According to the analysis comparative gross profit ratio is shown

in fig: 5.7 it’s decreased in 2008-09 as compared to last five years.

8. Comparative Analysis of Net Profit Ratio:

Fig: 5.8

Comparative Analysis of Net Profit Ratio

2004-05 Total Net Profit Ratio is 3.97

2005-06 Total Net Profit Ratio is 2.05

2006-07 Total Net Profit Ratio is 1.88

2007-08 Total Net Profit Ratio is 2.2

2008-09 Total Net Profit Ratio is 2.8

Table: 5.8

Total Net Profit Ratio

Interpretation: According to the analysis comparative Net profit ratio is shown in

fig: 5.8 it’s increased in 2008-09 as compared to last years.

5.2 SCHEDULE IN CHANGES IN WORKING CAPITAL (in Lacks)

Particulars 2007 2008

Working Capital

Increas

e

Decrease

Current Assets:

Debtors

Loans & Advances

Closing Stock

(Stock in Trade)

Cash & Bank

Balance

450.93

77.71

238.90

41.88

426.56

107.28

243.55

37.31

-

29.57

4.65

-

24.37

-

-

4.57

Total (A)

809.42 814.70 34.22 28.94

Current Liabilities:

Sundry Creditors

Expenses Payable

Bank Overdraft

(O.B.C)

472.96

10.88

27.13

417.39

12.50

67.03

55.58

-

-

-

1.62

39.9

Total (B) 510.97 496.91 55.58 41.52

(A)-(B) 298.45 317.79

Net Increase In

Working Capital

19.35

1. Comparative Analysis of Current Assets (Rs in Lacks):

Fig: 5.9

Comparative Analysis of Current Assets (Rs in Lacks)

2007 Current Assets (Rs in Lacks) is 809.42

2008 Current Assets (Rs in Lacks) is 814.70

Table: 5.9

Comparative Analysis of Current Assets

Interpretation: According to the analysis the current assets have increased in

2008 as compared to 2007. As shown in fig: 5.9.

2. Comparative Analysis of Current Liabilities (Rs in Lacks):

Fig: 5.10

Comparative Analysis of Current Liabilities (Rs in Lacks)

2007 Current Liabilities is 510.97.

2008 Current Liabilities is 496.91

Table: 5.10

Comparative Analysis of Current Liabilities

Interpretation: According to the analysis the liabilities of the company have

decreased in 2008 as compare to 2007. It’s 496.91 in 2008.

3. Comparative Analysis of Working Capital (Rs in Lacks):

Fig: 5.11

Comparative Analysis of Working Capital (Rs in Lacks)

2007 Working Capital is 298.45

2008 Working Capital is 317.79

Table: 5.11

Comparative Analysis of Working Capital (Rs in Lacks)

Interpretation: According to the analysis working capital have increased in 2008

as compare to 2007 shown in fig: 5.11.

5.3 COMPARATIVE STATEMENT OF WORKING CAPITAL (in Lacks):

Particulars 2007 2008

Debtors Collection Period:

Sales

Debtors

Debtors Collection Period = Debtors / Sales *

12m

1,761.77

450.93

3.07 m

1,284.96

426.56

3.98m

Stock Holding Period

Cost of Production

Closing Stock

Stock Holding Period = Closing Stock / COP *

12m

1505.38

238.90

1.90m

1,130.63

243.55

2.58m

Creditor’s Payment Period

COP

Creditor’s

Creditor’s Payment Period = Creditor’s / COP

1505.38

472.96

3.77

1130.63

417.38

4.43

Current Ratio

Current Assets

Current Liabilities

Current Ratio = CA / CL

809.42

510.97

1.58

814.70

496.91

1.64

1. Comparative Analysis of Debtors Collection Period: (in months)

Fig: 5.12

Comparative Analysis of Debtors Collection Period: (in months)

2007 Debtors Collection Period 4.3 month.

2008 Debtors Collection Period 2.5 month.

Table: 5.12

Comparative Analysis of Debtors Collection Period: (in months)

Interpretation: According to the analysis data collection period is 2.5 in the year

2008 as compare to 2007 it was 4.3 month.

2. Comparative Analysis of Stock Holding Period: (in months)

Fig: 5.13

Comparative Analysis of Stock Holding Period: (in months)

2007 Stock holding period is 1.9.

2008 Stock holding period is 2.58.

Table: 5.13

Comparative Analysis of Stock Holding Period: (in months)

Interpretation: According to the analysis stock holding period have increased to

2.58 as compared to 2007 it was 1.9.

3. Comparative Analysis of Creditor’s Payment Period: (in months)

Fig: 5.14

Comparative Analysis of Creditor’s Payment Period: (in months)

2007 Total of Creditor’s Payment Period is 3.77

2008 Total of Creditor’s Payment Period is 4.43

Table: 5.14

Comparative Analysis of Creditor’s Payment Period: (in months)

Interpretation: According to the analysis creditor’s payment period in 2008 is

4.43 as compare to 2007 shown in fig: 5.14.

4. Comparative Analysis of Current Ratio: (in lacks)

Fig: 5.15

Comparative Analysis of Current Ratio: (in lacks)

2007 Current ratio is 1.58

2008 Current ratio is 1.64

Table: 5.15

Comparative Analysis of Current Ratio: (in lacks)

Interpretation: According to the analysis current ratio have increased in 2008 as

compare to 2007 that is 1.64.

After conducting the survey & analyzing the whole report. It is concluded

that Concept creations exports more than 8.5% of the total export from

Panipat city because of best quality products.

Most of the material used is imported which increases the cost, rather than

exploiting the local resources of Panipat.

More emphasis is on floor coverings while other products like curtains,

bed coverings, and also seems attractive.

Demand of carpet is so high that capacity enhancement proves to be

glamour.

6.1 RECOMMENDATIONS

Concept creations should utilized Panipat vicinity resources so as to

increase employment opportunities as it has maximum export from

Panipat.

Concept creations should concentrate on others products like curtains,

bed coverings etc to increase market share.

As according to its carpet demand it should increase its capacity so as to

meet the required demand in the market.

Concept creations should adopt certain tools to cope up with recession

such as cost cutting.

It should diversify itself to other than Panipat area also and should not

mainly concentrate on export & import.

Short term liability such as salary, wages should not be immediately paid.

Time duration of 10-15 days should be kept for the payment of these

liabilities this will increase the cost balance within the organization.

Limitations of the study

However, I tried my best to have desired information from the respondents and to

make the report fruitful but some limitations are bound to incur which may affect

the results or findings.

6.2 Limitations of the study are:-

Lack of experience: I was new on the topic which was assigned to me.

So lack of experience in getting information from respondents came in to

the way of collecting the relevant data.

Time Constraints: Time was a bit short to fathom into the depth of the

study. But still all efforts to the best possible extent have been made to

collect the data.

Data collection Constraints: Since most of the data used is secondary in

nature, this poses the constraints on the validity and reliability of the data.

Busy Employees: Employees are not available as are busy in their work

Appointments: There was a problem in taking appointments from the

managers.

Sources: Sources were confounded some time to give proper information.

Area: The office area was very congested.

6.3 Conclusion

The Working capital analysis is the one of the important tools of financial

statement analysis because with working capital analysis the day to day

operations of company can be analyzed and Concept creations do not

have a satisfactory financial health according to analysis.

Concept creations have a good location area in the vicinity of Panipat but

it’s not able to explore Panipat resources in an efficient manner. So it’s

concluded that the management has the finance available but it’s not able

to invest in a right direction. Therefore it should take in concentration the

financial analysis of concern statement to take appropriate decisions.

Textile industry in India has vast scope to grow as Panipat & Umbel is the

hub of textile industries and there are many options available to

manufacture textile products. Such as weaving and designing. Concept

creations are basically in weaving section. It’s recommended to more into

designing also which will increase the financial health.

Last but not the least this research work aims to gather the knowledge of

financials loop-pools of the company and in this research work I have

contributed best of my experience in Concept creations.

SWOT ANALYSIS OF COMPANY

(A) STRENGTHS

Good Brand Equity

Good Sales Distribution System

Have it own Department (R & D)

High Production Capacity

High Quality Standard

Good Technological Base

(B) WEAKNESSES

After sale service

Promotional Activities

Unable to finance needed changes in strategy

(C) OPPORTUNITIES

Industry can improve its market by selling products to southern

and western part of country.

Strict payment terms are strength at times as well as weakness

at time. If a moderate change as per present market conditions

is adopted, then it can increase its market share.

(D) THREATS

EGR (Excessive Govt. Regulations)

CTC (Cut Throat Competitions)

Survey period:

15th June- 31st July 2009

Bibliography:

BOOKS

Tulsain P.C, 2007, Financial statement, Financial Accounting, 2nd Edition,

Page 9.1-9.15

Maheshwari S.N, 2007, Financial Analysis, Financial Management, 13 th

Edition, Page

Financial Management- S.K Gupta

Management Accountancy-D k Gole

Cost and Management Accountancy, S.N.Maheshwari

Financial Management And Policy, James C.Van Horne

JOURNALS

1. Natarajan. R, June 2009, Focus on Weaving, The Textile Magazine, Vol.

50, No. 8, Page 39-41.

2. Mayer Karl, June 2009, Stitch bonding Machines, Asian Textile, ISSN

09713425, Page 41-44

3. Dr. Mathur Manisha, June 2009, Technical Textile, Manmade Textile in

India, Vol. LII, No.6, Page 207-209, 52th Edition

4. Chakrabarti Malay, 24 June 2009, Export Prospects & Markets, Textile

Trends, Vol. LII, No.3, Page 33-38, 52th Edition.

WEBSITES

1. http://en.wikipedia.org

2. www.advfn.com

3. www.investorwords.com/