COMPANY PROFILE

OF
JAI PRAKASH
ASSOCIATION
1
JAYPEE ASSOCIATES LTD.

Shri Jaiprakash Gaur
(Founder Of Jaypee Group

Growth with a Human Face
The group is well diversified conglomerate with active interest in the
areas of civil engineering, design & construction for hydropower & river
valley projects, development of private hydro power projects, cement
manufacturing, hospitality, Business development and management of golf
resort, expressways and highways, real estate development information
technology and educational institutes.
2
!ISIO" OF T#E CO$PA"Y %&
To e amongst most trusted power utility company y providing
environment friendly power on most cost effective asis, ensuring
prosperity for its sta!eholders and growth with human face."
$ISSIO" OF T#E CO$PA"Y% &
To achieve excellence in every activity we underta!e.
To ensure most cost effective power for sustained growth of #ndia.
To inculcate value system across the organi$ation for ensuring
trustworthy relationship with associates and sta!e holders.
To e committed towards the safety and health of employees and the
pulic. The main motto of the company is %or! for &afe, 'ealthy,
and (lean & )reen *nvironment.
$AJO' A'EAS OF OPE'ATIO"
(*+*,T
(#-#. (/,&T01(T#/,
'230/ 4/%*0 (/,&T01(T#/,
'/T*. 5,3 T/10#&+
#,6/0+5T#/, T*(',/./)2
*31(5T#/, & %*.650*
75#40585&' -*,T10*& .T3.
9

Jaypee
Cement
Jaiprakash
Associates ltd.
Jaypee Korcham
Hydro Corporation
JIL Information
Technology Ltd.
Jaiprakash Power
Ventres
Jaypee Hotels Ltd.
Jaypee !reens Ltd.
Jaypee Cements
Ltd
Jaypee Ventres
Ltd.
Jaiprakash "ewa
"ansthan
Jaypee
Cement
Jaypee Korcham
Hydro Corporation
JIL Information
Technology Ltd.
Jaiprakash Power
Ventres
Jaypee Hotels Ltd.
Jaypee !reens Ltd.
Jaypee Cements
Ltd
Jaypee Ventres
Ltd.
Jaiprakash "ewa
"ansthan
JAYPEE
G'O(P
CORPORATE PHILOSOPHY
5ny corporate entity needs to e dynamic and virant, responsive to
the changing economic scenario and flexile enough to asor
environmental and physical fluctuations. #t must harness the inherent
strengths of availale resources and must possess the capacity to learn
from success. +ore than anything else, it should ensure growth with a
humane face.
Today Jaypee Group is a well-diversified infrastructure industrial group
with a turnover of over 15000 crores.
O!E'!IE) OF CE$E"T I"D(ST'Y
:


(ement is one of the core industries, which plays a vital role
in the growth of a nation. #ndia ran!s fifth among the cement
producing countries in the world. The present per capita cement
consumption is around ;:!g, which is much lower than the per
capita consumption of the developed countries. 3uring the last
couple of years, cement industry has een one of the main
eneficiaries of the infrastructure oom. %hile on the one hand
several ig and small cement companies are actively considering
expansion plans in anticipation of further growth in demand for
cement, on the other, a phase of ac<uisitions and mergers among
the existing players is also not eing ruled out in the immediate
future.
The present scenario of cement industry is very good in
terms of demand and with the prices going aove 0s 1=> ? 0s 1;>
@
per ag everywhere and in some poc!ets even reaching 0s 2>> per
ag. +ost importantly, the gap etween the demand and supply does
not exist any longer in any part of the country. 3omestic
consumption with 11 per cent increase and exports !eeping up with
the last year levels, the #ndian cement industry is expected to cross
1@> million tones in dispatches, including domestic consumption , and
exports during 2>>@?>A from all plants put together.
The #ndian cement industry has a capacity to produce nearly 1@2
million tonnes a year and the demand has een growing y almost 1> per
cent annually, it has driven most of the cement companies to operate at
their full capacity or pea! production levels. The consumption demand
for cement has risen sustantially in states li!e 5ndhra 4radesh,
8arnata!a, 0ajasthan, 'imachal 4radesh, %est Bengal and (hattishgarh.
+oreover, healthy demand from +iddle *ast 5sian countries has helped
to push up the demand for cement export. The cement dispatches in the
last one year rose y a roust 11 percent aided y 1> per cent growth in
domestic dispatches. The exports have risen y :; percent as against
clin!er exports which are down y :9 per cent. 5s the demand has far
outstripped supply the cement companiesB capacities are at full throttle
with almost C: percent utili$ation. 5 glance at the tale elow shows the
production and dispatches and more importantly the capacity utili$ation
levels of major #ndian companies for the period 5pril >@ to 6e >A.
JAYPEE% CE$E"T DI!ISIO"
A

7aypee group is the 9rd largest cement producer in the country. The groups
cement facilities are located in the &atna (luster D+.4.E, which has one of
the highest cement production growth rates in #ndia.
The group produces special lend of 4ortland 4o$$olana (ement under the
rand name F7aypee (ementB D44(E. #ts cement division currently operates
modern, computeri$ed process control cement plants with an aggregate
installed capacity of 2; +nT45. The company is in the midst of capacity
expansion of its cement usiness in ,orthern, &outhern, (entral, *astern
and %estern parts of the country and is slated to e a 9@.C> +nT45 y
6219 DexpectedE with (aptive Thermal 4ower plants totaling A=2 +%.
=
8eeping pace with the advancements in the #T industry, all the 2A> cement
dumps are networ!ed using T3+GT3+5 -&5Ts along with a dedicated
hu to provide 2:G= connectivity etween the plants and all the 12> points
of cement distriution in order to ensure trac! H the H truc!" initiative and
provide seamless integration. This initiative is the first of its !ind in the
cement industry in #ndia.
#n the near future, the group plans to expand its cement capacities via
ac<uisition and greenfield additions to maximi$e economies of scale and
uild on vision to focus on large si$e plants from inception. The )roup is
committed towards the safety and health of employees and the pulic. /ur
motto is.
Work For Safe, Healthy,
Clean & Green Environment'.
$inin*
The cement manufacturing process starts from the mining of limestone,
which is the main raw material for ma!ing cement. .imestone is excavated
from open cast mines after drilling and lasting and loaded on to dumpers
;
which transport the material and unload into hoppers of the limestone
crushers.
Crushin* S+a,kin* - 'e,.ai/in* of Li/es+one
The .& (rushers crush the limestone to minus ;> mm si$e and discharge the
material onto a elt conveyor which ta!es it to the stac!er via the Bul!
material analy$er. The material is stac!ed in longitudinal stoc!piles.
.imestone is extracted transversely from the stoc!piles y the declaimers
and conveyed to the 0aw +ill hoppers for grinding of raw meal.
Crushin* S+a,kin* - 'e,.ai/in* of Coa.
The process of ma!ing cement clin!er re<uires heat. (oal is used as the fuel
for providing heat. 0aw (oal received from the collieries is stored in a coal
yard. 0aw (oal is dropped on a elt conveyor from a hopper and is ta!en to
and crushed in a crusher. (rushed coal discharged from the (oal (rusher is
stored in a longitudinal stoc!pile from where it is reclaimed y a reclaimer
and ta!en to the coal mill hoppers for grinding of fine coal.
'a0 $ea. Dryin*1Grindin* - #o/o*eni2a+ion
0eclaimed limestone along with some laterite stored in their respective
hoppers is fed to the 0aw +ill for fine grinding. The hot gasses coming
from the clin!erisation section are used in the raw mill for drying and
transport of the ground raw meal to the *lectrostatic 4recipitator G Bag
'ouse, where it is collected and then stored and homogenised in the
C
concrete silo. 0aw +eal extracted from the silo Dnow called 8iln feedE is
fed to the top of the 4reheater for 4yroprocessing.
C.inkerisa+ion
(ement (lin!er is made y pyroprocessing of 8iln feed in the preheater and
the rotary !iln. 6ine coal is fired as fuel to provide the necessary heat in the
!iln and the 4recalciner located at the ottom of the @GA stage preheater. 'ot
clin!er discharged from the 8iln drops on the grate cooler and gets cooled.
The cooler discharges the clin!er onto the pan G uc!et conveyor and it is
transported to the clin!er stoc!piles G silos. The clin!er is ta!en from the
stoc!pile G silo to the all mill hoppers for cement grinding.
Ce/en+ Grindin* - S+ora*e
(lin!er and )ypsum Dfor /4(E and also 4o$$olana Dfor 44(E are extracted
from their respective hoppers and fed to the (ement +ills. These Ball +ills
grind the feed to a fine powder and the +ill discharge is fed to an elevator,
which ta!es the material to a separator, which separates fine product and the
coarse. The latter is sent to the mill inlet for regrinding and the fine product
is stored in concrete silos.
Pa,kin*
(ement extracted from silos is conveyed to the automatic electronic pac!ers
where it is pac!ed in @> 8gs. 4olythene ags and dispatched in truc!s.
'e,en+ A,hie3e/en+s
of Jai Prakash Asso,ia+ions
1>
Year 4564
9>> +% Baspa H ## 'ydropower project has een awarded the )old
&hield for 2>>C?1>" and &ilver &hield for 2>1>?11" y the +inistry of
4ower, )overnment of #ndia in the category of performance of
hydropower stations".
+r. +anoj )aur, *xecutive (hairman, 7aypee )roup and +r.
&ameer )aur, +3 & (*/, 7aypee &ports #nternational .td won the
)loal &tandards 5ward at ,3T- 4rofit Business .eadership 5wards
2>11. The award was presented y +r. 4rana +u!herjee, 1nion 6inance
+inister of #ndia on =
th
7anuary, 2>12 at +umai.
Year 4566
3alla (ement 6actory D5 unit of 7aipra!ash 5ssociates .td.E is
11
awarded first pri$e in the cement sector for the ,ational *nergy
(onservation 5wards, 2>11.
(hunar (ement 6actory D5 unit of 7aipra!ash 5ssociates .td.E is
awarded the (ertificate of +erit in the cement sector for the ,ational
*nergy (onservation 5wards, 2>11.
7aypee 0ewa (ement 4lant and 7aype Bela (ement 4lant in +adhya
4radesh of the )roup have een awarded with the most prestigious SWORD
OF HONOUR award y the British &afety (ouncil, 18 in the field of 'ealth
and &afety management system.
Year 4565
7aypee 0ewa (ement 4lant and 7aype Bela (ement 4lant in
+adhya 4radesh of the )roup have een awarded with renowned and most
prestigious SWORD OF HONOUR award y the British &afety (ouncil, 18. This
is a well acclaimed and celerated international award in the field of
12
'ealth and &afety management system. 9.>> +nT45 0ewa and 2.:>
+nT45 Bela are the only cement plants to e estowed with this honour in
#ndia.(For De+ai.s
The garage processing plant of 7aipra!ash 5ssociates .td.
located in 3adumajra, (handigarh was awarded *xcellence for the est
solid waste management plant in the country" y (onfederation of #ndian
#ndustry D(##E.
I.ifetime 5chievement 5wardI eing conferred to &hri 7aipra!ash
)aur, 6ounder (hairman y +erchantsB (hamer of 1ttar 4radesh,
8anpur for creating new milestones in #nfrastructure development and his
achievement in (orporate &ocial 0esponsiility for the year 2>1>.
19
#nfrastructure .eader of the 2ear " award eing conferred to &hri
7aipra!ash )aur, 6ounder (hairman y &hri 8amal ,ath, the 1nion
+inister of 0oad Transport and 'ighways during the *ssar &teel
#nfrastructure *xcellence 5wards 2>1> in association with (,B( T-1;.
(For De+ai.s
:>> +% -ishnuprayag 'ydropower 4roject of 7aipra!ash 4ower
-entures .td D74-.E was awarded 1st 4ri$e in the category *nergy &
4owerBB y the *ssar &teel #nfrastructure *xcellence 5wards 2>1> in
association with (,B( T-1;. (For De+ai.s
9>> +% Baspa H ## 'ydropower project eing awarded with &ilver
&hield" y &hri &ushil 8umar &hinde, 1nion +inister of 4ower along with
&hri Bharatsinh &olan!i, 1nion +inister of &tate for 4ower in the
prestigious ,ational 5wards for +eritorious 4erformance in 4ower &ector
y the +inistry of 4ower for 2>>;?>C.

1:
INTRODUCTION
OF
WORKING CAPITAL
MANAGEMENT
1@
)ha+ is )orkin* Capi+a.7
%or!ing capital is how much in li<uid assets that a company has on hand.
%or!ing capital is needed to pay for planned and unexpected expenses,
meet the short?term oligations of the usiness, and to uild the usiness.
5 lac! of wor!ing capital ma!es it hard to attract investors or to get
usiness loans or otain credit.
%or!ing capital is the money a usiness has availale to sustain its
operations. #tJs the capital availale to purchase inventory, pay employees,
!eep the lights on, and finance other short term expenditures. This ma!es
managing wor!ing capital a critical usiness s!ill. #f there is no wor!ing
capital, there is no usiness.
Thousands of companies fail each year due to poor wor!ing capital
management practices. *ntrepreneurs often donJt account for short term
disruptions to cash flow and are forced to close their operations. +any of
these companies have viale usiness models, and would have otherwise
succeeded had they etter managed their wor!ing capital.
)orkin* Capi+a. is 'e8uired +o S+ar+ and Gro0 a 9usiness %&
%hen you first start a usiness you need start?up wor!ing capital since the
usiness is not yet ma!ing money to sustain itself. The numer one reason
most usinesses fail during their first two years of operation is due to a lac!
of wor!ing capital.
'aving ample wor!ing capital not only helps you to meet your oligations,
it is vital to growing your usiness.
1A
Types of 0orkin* ,api+a.%&
The operating cycle creates the need for current assets Dwor!ing
capitalE.'owever the need does not come to an end after the cycle is
completed to explain this continuing need of current assets a destination
should e drawn etween permanent and temporary wor!ing capital.
Per/anen+ 0orkin* ,api+a.%
The need for current assets arises, as already oserved, ecause of the cash
cycle. To carry on usiness certain minimum level of wor!ing capital is
necessary on continues and uninterrupted asis. 6or all practical purpose,
this re<uirement will have to e met permanent as with other fixed assets.
This re<uirement refers to as permanent or fixed wor!ing capita.
Te/porary 0orkin* ,api+a.%
5ny amount over and aove the permanent level of wor!ing capital is
temporary, fluctuating or variale, wor!ing capital. This portion of the
re<uired wor!ing capital is needed to meet fluctuation in demand
conse<uent upon changes in production and sales as result of seasonal
changes.
&ources of %or!ing (apitalK
6 Lon*& +er/ sour,es% &
aE #ssue of shares
E #ssue of deentures
cE .ong Hterm loans
dE 0etained earning
1=
eE &ale of any old asset
4 Shor+ :Ter/ Sour,es% &
a In+erna. sour,es% &
iE 4rovision for tax
iiE 3epreciation funds
iiiE /utstanding expanses
; E<+erna. sour,es% &
iE ,ormal trade credit
iiE Bills payale
iiiE /verdraft
ivE 4ulic deposit
vE 5dvance from customers
FACTO'S AFFECTI"G T#E 'E=(I'E$E"T OF
)O'>I"G CAPITAL
6 Si2e of ;usiness%
This is very clear that if there is any ig concern means it need
maximum of wor!ing capital to run the usiness smoothly ut the
re<uirement of wor!ing capital will e reduced if we will reduced the
si$e of usiness as we do not have the sufficient long operating cycle
to invest the higher rate of wor!ing capital.
4 "a+ure of ;usiness%
'ere we will discuss on the major part of firms ?
iE The manufacturing unit
iiE The trading unit
1;
+eans we can easily understand that in case of manufacturing unit
the firm re<uired maximum wor!ing capital to complete its
operating cycle.
? Seasona. opera+ion
The seasonal operation also effect the re<uirement of wor!ing capital
ecause the sale can e increased or decreased if they is any concern which
is manufacturing the seasonal goods.
@ Credi+ po.i,y%
This policy normally ta!es an important place to impact on the
re<uirement of wor!ing capital means any company having a good credit
policy for a shorter period may re<uired the less wor!ing capital on the
other hand the lenient credit policy may generate the ris! of doutful dets.
#n this case the company re<uires more wor!ing capital during this period
this ta!es place to convert the credit into cash.
A $arke+a;.e ,o/pe+i+ion%
5s per the present synerio of the mar!et we can find the toughest
competition etween every two company which are dealing with the same
time of product to reduce the competitiveness and to win the gain the
company gives or provides the some special offers to the uyer and to the
seller and these offers are not related with the operating cycle of the
company so the company needs exist amount of wor!ing capital to manage
the amount of these offers.
B Gro0+h and e<pansion%
5s for as the growth and expansion is concerned it is very clear it will
increase the si$e of usiness we re<uire some extra money for this purpose.
#n the same condition if any company going to launch a new product they
again re<uired exist amount of wor!ing capital to complete the operating
1C
cycle of that particular product. The increment in the si$e is !nown as
growth and the estalishment in the new sector or segment is called
expansion.
C Shor+a*e of ra0 /a+eria.%
The re<uirement of wor!ing capital is also depends on the viaility of
the raw material in the mar!et. 5t the time of shortage of raw material
the price may also e high due to higher demand and less viaility in this
case the firm has to purchase the raw material on higher price and re<uired
some extra amount for the increment of cost. #t means the company has to
invest more money for purchasing.
D Di3idend po.i,y%
This factor is important ecause it is directly impact on the
financial position of the firm ecause the higher dividend rate ma!es the
company enale to get as strong position in the mar!et. &o to fulfill the
re<uirement of the dividend the company may use the retained earning or
profit or they have to generate the funds for dividend from other sources. &o
this will impact on the operating cycle as well as this will degrees the cash
alance of the company, which the company is used to fulfill re<uirement
of temporary wor!ing capital.
E Depre,ia+ion po.i,y%
3epreciation policy also is treated as a source of wor!ing
capital ecause we can use the depreciation funds for the timing of fulfill the
re<uirement of temporary wor!ing capital. #f the company is not
maintaining the depreciation policy in this case the company has to generate
the funds from the long term sources or any other source which can e
increase the liaility of the firm.
2>
Management of working capital:
%or!ing capital management involves the relationship etween a
firmJs short?term assets and its short?term liailities. The goal of wor!ing
capital management is to ensure that a firm is ale to continue its operations
and that it has sufficient aility to satisfy oth maturing short?term det and
upcoming operational expenses. The management of wor!ing capital
involves managing inventories, accounts receivale and payale, and cash.
%or!ing capital management will use a comination of policies and
techni<ues for the management of wor!ing capital. The policies aim at
managing the current assets Dgenerally cash and cash e<uivalents,
inventories and detorsE and the short term financing, such that cash flows
and returns are acceptale.
Cash /ana*e/en+
In3en+ory /ana*e/en+
?%or! in 4rocess D%#4E, 6inished )oods, &upply chain
management, 7ust #n Time, *conomic order <uantity, *conomic
<uantity.
De;+ors /ana*e/en+
? (redit policy vice versa 3iscounts and allowances
21
Shor+ +er/ finan,in*
? .oan factoring
)orkin* ,api+a. opera+in* ,y,.e
#nvestment in wor!ing capital is influenced y four !ey events in the
production and sales cycle. These events areK purchase of raw materials,
payment for their purchase, the sale of finished goods, and collection of
cash for the sales made.
Opera+in* ,y,.e and ,ash ,y,.e are two important components of wor!ing
capital management. Together they determine the efficiency of a firm
regarding wor!ing capital management. %hile the opera+in* ,y,.e is the
time period from inventory purchase until the receipt of cash, the ,ash ,y,.e
is the time period from when cash is paid out, to when cash is received.
The cash cycle is interpreted as the numer of days etween the payment for
inputs and getting cash y sales of commodities manufactured from that
input
Opera+in* ,y,.e of +he ,o/pany
The entire se<uence of operations in a company can e summari$ed as
followsK
The operating cycle for a company primarily egins with the purchase
of raw materials, which are paid for after a delay representing the
creditorJs payale period.
These purchased raw materials are then converted y the production
unit into finished goods and then sold. The time lag etween the
22
purchase of raw materials and the sale of finished goods is !nown as
the inventory period.
1pon sale of finished goods on credit terms, there exists a time lag
etween the sale of finished goods and the collection of cash on sale.
This period is !nown as the accounts receivales period.
The opera+in* ,y,.e ,an ;e depi,+ed as%
The stage etween purchase of raw materials and their payment is
!nown as the creditorsB payales period.
The period etween purchase of raw materials and production of
finished goods is !nown as the inventory period.
29
The fo..o0in* ra+ios 0i.. he.p in /ana*in* de;+orsF ,redi+ors and
in3en+ories
1. &toc! Turnover ratio L (ost of goods sold G 5verage &toc!
2. 3etors Turnover ratio L MD3etorsN Bills receivaleO9A@P G
,et credit sales.
9. 3etors Turnover rate L (redit sales G D5verage 3etors N
Bills receivaleE
:. (reditors Turnover ratio L MD(reditors N Bills
payaleEO9A@P G (redit purchases
@. (reditors Turnover rate L (redit purchases G 5verage
(reditors
2:




2@
IN VENTORY MNGEMENT !"
+aterial +anagement is concept which aims at a company wide,
integrated approach towards the management of materials in an #ndustrial
underta!ing?#ts ojective is primarily cost reduction and efficient handling
of materials at all stages and in all parts of the underta!ing.
#mproving the capital turnover ratio covers the whole range of
functions involved in converting raw materials and ancillary supplies into
finished products.
I$PO'TA"CE OF $ATE'IALS $A"AGE$E"T %
1. +aterials account for A> to A:Q fo the sales value of a production
hence small change in material costs can result in large sum of money
saved or lost.
The alance 9AQ accounts for wages and salaries, overheads and
profits.
2. #nventory carrying costs, riefly comprises of, interest charges on the
cost of inventory, storage and handling costs, cost of insurance, and
physical deterioration and osolescence costs.
5ll these amounts to atleast 2>Q of the materials costs. These are
hidden costs generally covered y overheads.
9. &o the total material cost will amount to e K
2A
A:Q N D 2>Q of A: or 12.;QE L =A.; say ==Q of the sales revenue.
'ence, the inventories should e controlled to the minimum possile.

AD!A"TAGES I" I"TEG'ATED $ATE'IALS
$A"AGE$E"T
/rgani$ations which have gone in a ig way for the integrated
materials management usually enjoy the following advantagesK
6. 9e++er A,,oun+a;i.i+y
4. 9e++er Coordina+ion
?. 9e++er Perfor/an,e
TOOLS A"D TEC#"I=(ES OF I"!E"TO'Y
$A"AGE$E"T
A&9&C Ana.ysis
(App.ied in J'P ;ased on ,onsu/p+ion .e3e.%
The materials are divided into a numer of categories for adopting a
selective approach for material control. #t is generally seen that in
manufacturing concerns, a small percentage of items contriute a large
percentage of value of consumption and a large percentage of items of
material contriute a small percentage of value. #n etween these two
limits there are some items which have almost e<ual percentage of value
of materials. 1nder 5?B?( analysis, the materials are divided into three
categories vi$., 5, B and (. 4ast experience has shown that almost 1>
per cent of the items contriute to => per cent of value of consumption
and this category is called I5I (ategory. 5out 2> per cent of the items
contriute aout 2> per cent of value of consumption and this is !nown
as category JBJ materials. (ategory J(J covers aout => per cent of items
of materials which contriute only 1> per cent of value of consumption.
2=
There may e some variations in different organi$ations and an
adjustment can e made in these percentages.
P'OCED('E
6. 'ECEIPT OF STO'ES%
1. /n arrival of consignment on visual inspection, if any damage is
found in pac!ing of consignments of itemGe<uipments, a damage
certificate is otained from transporting agency and same is
forwarded to insurance &ection for lodging transit insurance claim.
2. /n receipt of the purchased product at the &tores, the delivery
documents are verified with corresponding purchase
ordersGre<uisitions.
9. #f purchased product is re<uired (*,-5T claim, handover
I3uplicate for Transporter copyI to Taxation 3epartment
representative visiting &tores in morning hours of every wor!ing day.
:. 0eceipt of codified goods are recorded in goods receipt register as
and uni<ue goods receipt numer is allotted to each lotGconsignment.
@. 4hysical verification of the <uantities is carried out y counting
weight, measurement, etc.
A. 5n identification tag is affixed to one of the items, Bul! materials li!e
&teel, )rinding media, (asting, 0efractory items, .uricants, etc. are
directly unloaded at the designated place after due verification. 6uel
oils are directly ta!en into designated fuel tan!s. *xplosives are
directly unloaded at maga$ine located in the vicinity of mines after
due verification.
=. 6uel oils and explosive materials are unloaded, separately in separate
location i.e. '&3G6urnace /il Tan!s.
;. #nspection record generated accordingly.
2;
C. #nspection of material eing done within >= days receipt to indenting
department with respect to the specifications in purchase orders and
actual receipts.
1>. ,on?confirming materials are documented in to 3iscrepancies 0eport
/ne copy of the same is forwarded to the supplies along with material
for appropriate action.
11. Bill of party, indicating the )0 no. is forwarded to 5ccounts
3epartment for processing supplier payment.
12. 5ll the non?conforming materials li!e returned to supplier supported
y (hallan?cum gate pass.
4. STO'AGE A"D ISS(E OF STO'ES%
1. 5ll items are issued to 1ser 3ept. against re<uisition slip as per
D&tores re<uisition slipEG or reservation against &54 system.
2. Before issuing the materials necessary issue entries are made in
computer on line asis.
9. The items which re<uire special storage condition li!e earings,
instrumentation cards, vulcani$ing materials, etc. are identified and
stored appropriately and special precautions are ta!en where
necessary.
:. 5ll items which have a shelf?life are identified and first in first out
D6#6/E systems is followed for issue of such items, to ensure no
material with expiry date is stoc!ed.
@. 5ll shelf life items in stoc! are physically chec!ed every month to
detect any deterioration. *xpired material is eing used with
permission of the indenterGuser, in unproductive area or it is written
off and disposed off from the inventory after due approval of
'onorale +3.
2C
A. 5ll the items which gets surplus with user departments and further
usale can e returned to &tores through &tores 0eturn -oucher
9>
Cash /ana*e/en+%
The corporate process of collecting, managing and Dshort?termE
investing cash. 5 !ey component of ensuring a companyJs financial staility
and solvency. 6re<uently corporate treasurers or a usiness manager is
responsile for overall cash management.
&uccessful cash management involves not only avoiding insolvency
Dand therefore an!ruptcyE, ut also reducing days in account
receivalesD50E, increasing collection rates, selecting appropriate short?
term investment vehicles, and increasing days cash on hand all in order to
improve a companyJs overall financial profitaility
CAS# IS GE"E'ALLY $AI"TAI"ED FO' FOLLO)I"G
$OTI!ES%
A. Transa,+ion /o+i3e%
Transaction motive refer to the holding of cash to meet routine cash
re<uirements to finance the transactions which a firm carries on in a
variety of transactions to accomplish its ojectives which have to e
paid for in the form of cash. *.g. payment for purchases, wages,
operating expenses, financial charges li!e interest, taxes, dividends
etc. Thus re<uirement of cash alances to meet routine need is !nown
as the transaction motive and such motive refers to the holding of
91
cash to meet anticipated oligations whose timing is not perfectly
synchroni$ed with cash receipts.
9. Pre,au+ionary /o+i3e%
5 firm has to pay cash for the purposes which can not e predicted or
anticipated. The unexpected cash needs at the short notice may e due
toK6loods, stri!es & failure of customer &low down in collection of
current receivales #ncrease in cost of raw material (ollection of
some order of goods as customer is not satisfied The cash alance
held in reserves for such random and unforeseen fluctuations in cash
flows are called as precautionary alance. Thus, precautionary cash
provides a cushion to meet unexpected contingencies. The more
unpredictale are the cash flows, the larger is the need for such
alance.
C. Spe,u.a+i3e /o+i3e%
#t refers to the desire of the firm to ta!e advantage of opportunities
which present themselves at unexpected moment & which are
typically outside the normal course of usiness. #f the precautionary
motive is defensive in nature, in that firms must ma!e provisions to
tide over unexpected contingencies, the speculative motive represents
a positive and aggressive approach. The speculative motive helps to
ta!e advantages ofK 5n opportunity to purchase raw material at
reduced price on payment of immediate cash. 5 chance to speculate
on interest rate movements y uying securities when interest rates
are expected to decline. +a!e purchases at favourale price. 3elay
purchase of raw material on the anticipation of decline in prices.
D. Transa,+ion /o+i3e%
92
Transaction motive refer to the holding of cash to meet routine cash
re<uirements to finance the transactions which a firm carries on in a
variety of transactions to accomplish its ojectives which have to e
paid for in the form of cash. *.g. payment for purchases, wages,
operating expenses, financial charges li!e interest, taxes, dividends
etc. Thus re<uirement of cash alances to meet routine need is !nown
as the transaction motive and such motive refers to the holding of
cash to meet anticipated oligations whose timing is not perfectly
synchroni$ed with cash receipts.
E. Pre,au+ionary /o+i3e%
5 firm has to pay cash for the purposes which can not e predicted or
anticipated. The unexpected cash needs at the short notice may e due
toK6loods, stri!es & failure of customer &low down in collection of
current receivales #ncrease in cost of raw material (ollection of
some order of goods as customer is not satisfied The cash alance
held in reserves for such random and unforeseen fluctuations in cash
flows are called as precautionary alance. Thus, precautionary cash
provides a cushion to meet unexpected contingencies. The more
unpredictale are the cash flows, the larger is the need for such
alance.
F. Spe,u.a+i3e /o+i3e%
#t refers to the desire of the firm to ta!e advantage of opportunities
which present themselves at unexpected moment & which are
typically outside the normal course of usiness. #f the precautionary
motive is defensive in nature, in that firms must ma!e provisions to
tide over unexpected contingencies, the speculative motive represents
a positive and aggressive approach. The speculative motive helps to
ta!e advantages ofK 5n opportunity to purchase raw material at
99
reduced price on payment of immediate cash. 5 chance to speculate
on interest rate movements y uying securities when interest rates
are expected to decline. +a!e purchases at favourale price. 3elay
purchase of raw material on the anticipation of decline in prices.
9:
Credi+ /ana*e/en+%
(redit means delaying payment for goods or services you have
already received until a later date.
(redit management is concerned with ma!ing sure that organisation,
who uy goods or services on credit, or individuals who orrow money, can
afford to do so and that they pay their dets on time.
(redit jos exist within any industry sector e.g. manufacturing,
distriution, retail, telecoms, utilities, local authority, financial services, and
within any si$e company from &+*s D&mall, +edium *nterprisesE to large
corporate. 2ou could also wor! for a company specialising in credit
management services e.g. det collection agency, credit insurance company,
credit reference agency.
Credi+ po.i,y%
9@
The credit policy of the firm affects the wor!ing capital y
influencing the level of detors. The credit terms to e granted to customers
may depend upon the norms of the industry to which the firm elongs. But a
firm has the flexiility of shaping its credit policy within the constraint of
industry norms and practices. The firm should e discretion in granting
credit terms to its customers. 3epending upon the individual case, different
terms may e given to different customers. 5 lieral credit policy, without
rating the creditworthiness of customers, will e detrimental to the firm and
will create a prolem of collections. 5 high collection period will mean tie?
up of large funds in oo! dets. &lac! collection procedures can increase the
chance of ad dets. #n order to ensure that unnecessary funds are not tied
up in detors, the firm should follow a rationali$ed credit policy ased on
the credit standing of customers and periodically review the
creditworthiness of the exiting customers. The case of delayed payments
should e thoroughly investigated.
9A
9=
'ATIO A"ALYSIS
Defini+ion of G'a+io Ana.ysisG
0atio 5nalysis is a form of 6inancial &tatement 5nalysis that is used to
otain a <uic! indication of a firmJs financial performance in several !ey
areas. The ratios are categori$ed as &hort?term &olvency 0atios, 3et
+anagement 0atios, 5sset +anagement 0atios, 4rofitaility 0atios, and
+ar!et -alue 0atios.
0atio 5nalysis as a tool possesses several important features. The data,
which are provided y financial statements, are readily availale. The
computation of ratios facilitates the comparison of firms which differ in
si$e. 0atios can e used to compare a firmJs financial performance with
industry averages. #n addition, ratios can e used in a form of trend analysis
to identify areas where performance has improved or deteriorated over time.
9;
Because 0atio 5nalysis is ased upon accounting information, its
effectiveness is limited y the distortions which arise in financial statements
due to such things as 'istorical (ost 5ccounting and inflation. Therefore,
0atio 5nalysis should only e used as a first step in financial analysis, to
otain a <uic! indication of a firmJs performance and to identify areas which
need to e investigated further.
AD!A"TAGE OF 'ATIO A"ALYSIS
1. 'elpful in analysis of 6inancial &tatements.
2. 'elpful in comparative &tudy.
9. 'elpful in locating the wea! spots of the usiness.
:. 'elpful in 6orecasting.
@. *stimate aout the trend of the usiness.
A. 6ixation of ideal &tandards.
=. *ffective (ontrol.
9C
;. &tudy of 6inancial &oundness.

SOL!E"CY 'ATIOS
C(''E"T 'ATIO
This ratio explains the relationship etween current assets and current
liailities of a usiness. The formula of calculating the ratio isK?

Current Assets
Current ratio =
Current Liabilities
(urrent 5ssets include those assets which can e converted into cash within
a yearBs time and current liailities include those liailities which are
repayale in a yearBs time. This ratio indicates the availaility of current
assets in rupees for every one rupee of current liaility.
(urrent 5ssets L (ash in hand N (ash at Ban! N &hort term investments N
3etors N&toc! N4repaid expenses.
:>
(urrent .iailities L Ban! overdraft N BG4 N (reditors N 4rovision for
Taxation N 4roposed dividend N 1nclaimed dividend N /utstanding
dividend N .oans payale within a year.
1:,A;:,>;@,1>1.AC
6or the year 2>11?2>1> L L 1.11K1
19,21@,CCC,;2C.AC
12C2C@A2>2=.9A
6or the year 2>>C ? 2>1> L L 1.29 K 1
1>::1=1A;==.1C
;=>==A=112.2@
6or the year 2>>; H 2>>C L L 1.2; K 1
A=@C@292:2.@9



Si*nifi,an,e% 5s a conventional rule, a ratio of 2K1 or more is considered
satisfactory. #t means that current assets should, at least, e twice of its
current liailities. The higher ratio, the etter it is, ecause the firm will e
ale to pay its current liailities more easily.
Co//en+s%& The ratio shown y the graph says that we cannot easily meet
up our current liailities. #deally current assets should e twice the current
liailities ut here current assets are even less than current liailities.
:1
current ratio
#.##
#.$%
#.$&
#
#.#
#.$
#.%
year
r
a
t
i
o
455E
4565
4566
QUICK RATIO OR ACID TEST RATIO :-
Ruic! ratio indicates whether the firm is in a position to pay its current
liailities within a month or immediately.
Liquid assets
uic! Ratio =
Current liabilities
.i<uid 5ssets L (urrent 5ssets ? &toc! ? 4repaid *xpenses
.i<uid 5ssets means those assets which will cash very shortly. 5ll
current assets accept stoc! and prepaid expenses are included in li<uid
assets. &toc! is excluded from li<uid assets ecause it has to e sold efore
it converted into cash. 4repaid expenses are also excluded from it ecause
they are not expected to e converted into cash.
A>;19=1;CC
6or the year 2>>C ? 2>1> L L >.A> K 1
1>2>=2AC>@:
@;A;=:=2@2
6or the year 2>>;?2>>C L L >.C> K1
A@>::;9>:2

:2
Si*nifi,an,e% )enerally, the <uic! ratio of 1K1 is considered to e
satisfactory. Ruic! ratio thus more rigorous test of li<uidity than the current
ratio and, when used together with current ratio, it gives a etter picture of
short term financial position of the firm.
Co//en+s%&
&ince <uic! ratio is decreasing over the years Mfrom 2>>CD>.C>E?
2>11D>.:=EP, it not gives a good picture of firmB s short term financial
position so firm is not in the position to pay its current liailities
immediately..
CAS# 'ATIO
&ince cash is the most li<uid asset, a financial analyst may examine
cash ratio and its e<uivalent to current liailities. Trade investments and
mar!etale securities e<uivalent to cashS so they may e included in cash
ratio.
Cas" # $ar!etable securities
Cas" ratio =
Current Liabilities

:C:99C:@A:
6or the year 2>1>?2>11 L L >.9;
12C::1921;;
@9::;21;>9
6or the year 2>>C ? 2>1> L L >.@2
1>2>=2AC>@:
@@=;=C:A2=
6or the year 2>>;?2>>C L L >.;A
A@>::;9>:2
:9

Si*nifi,an,e%& (ash ratio generally helps in finding out whether the cash is
eing proper utilised in the usiness or not and to chec! that whether or not
cash is lying ideal in the firm, if yes then to ma!e proper utilisation of cash.
Co//en+s%&5s we can see that circulation of cash has decreased over the
past years. #t shows that detors are not ma!ing prompt payments and
company is not ale to ma!e etter utili$ation of cash
ACTI!ITY 'ATIO
I"!E"TO'Y T('"O!E' 'ATIO
#nventory turnover indicates the efficiency of the firm in producing and
selling its products. #t is calculated y dividing the cost of goods sold y the
average inventory.
Cost o% &oods Sold
'nventor( )urnover Ratio =
Avera*e 'nventor(
::
(ost of )oods &old L /pening &toc! N 4urchases N 3irect (harges H
(losing &toc!.
Or
(ost of )oods &old L ,et &ales H )ross 4rofit.
2@9::9:9>1@
6or the year 2>1>?2>11 L L =.=; times.
92@A@@=1@C
1@CA=22A@:;
6or the year 2>>C?2>1> L L 11.1C times.
1:2A:A9@19

12@2191;1@@
6or the year 2>>;? 2>>C L L 22.:@ times
@@=@=9=AC
Si*nifi,an,e%&
This ratio indicates whether or not the stoc! has een efficiently utili$ed. #t
shows the speed with which the stoc! is rotated into sales. The higher the
ratio, the etter it is, since it indicates that the stoc! is selling <uic!ly. #n
:@
usiness where stoc! turnover is high goods can e sold at low margin of
profit and even then the profitaility can e high.
Co//en+s%
#nventory turnover ratio of the company is <uite good earlier it means that
there is proper outflow of the stoc! and goods do not remain in the godown
for a long time. 5s we can see that the inventory turnover is decreasing
which shows that there is overspending in stoc! which is left unused .
TOTAL ASSETS T('"O!E' 'ATIO
5ssets are used to generate sales. Therefore, a firm should manage its assets
efficiently to maximi$e sales. The relationship etween sales and assets is
called asse+s +urno3er.

Cost o% *oods sold + sales
)otal Assets turnover ratio =
)otal Assets
Total 5ssets L 6ixed 5ssets N current assets
:;@2>@=1@>:
6or the year ending D2>1>?2>11E L L >.2C times.
1A@;=1>1:;==
9@:>9@A9=;@
6or the year ending D2>>C?2>1>E L L >.2A. times.
19:A11:=AA@A
21C@;@A@;:9
6or the year ending D2>>;?2>>CE L L >.2>A times.
1>A:2C9=>2>C
.
:A
Si*nifi,an,e% This ratio is of particular importance in manufacturing
concerns where the investment in assets is <uite high. This ratio reveals how
effectively the assets are eing utilised, compared with previous year.
Co//en+s%&
The graph clearly depicts that the total asset ratio was >.2> times in 2>>;?
2>>C which shows a gradual increase. The ratio gain momentum which
currently stood at >.2CC times which depicts efficient use of fixed assets
than earlier.
P'OFITA9ILITY 'ATIO
G'OSS P'OFIT 'ATIO
The ratio shows the relationship etween gross profit and sales.
&ross ,ro%it
&ross ,ro%it Ratio = - .//
Net Sales
,et &ales L )ross revenue H *xcise duty
291=A22;:;C
6or the year ending D2>1>?2>11E L O1>> L :=.=A Q
:;@2>@=1@>:
:=
1C:9A99=29=
6or the year ending D2>>C?2>1>E L O1>> L @:.;C Q
9@:>9@A9=;@
12=@=A;A>A;
6or the year ending D2>>;?2>>CE L O1>> L @;.>C; Q
21C@;@A@;:@
Si*nifi,an,e% This ratio measures the margin of profit availale in on sales.
,o ideal standard is fixed for this ratio, ut it should e ade<uate enough to
:;
meet not only operating expenses ut also to provide for depreciation,
interest on loans, dividends and creation of reserve.
Co//en+s%&
5s the figure clearly states that the revenue generated from oth sales and
profit are increasing. This results into higher profits for the company.
"ET P'OFIT 'ATIO
This ratio shows the relationship etween the net profit and the sales. #t may
e calculated y two methodsK?
Net ,ro%it
(a) Net ,ro%it Ratio = - .//
Net Sales
91::C21>:@
6or the year ending D2>1>?2>11E L O 1>> L A.:; Q
:;@2>@=1@>:
=:;2@29C1A
6or the year ending D2>>C?2>1>E L O1>> L 21.1 Q
9@:>9@A9=;@

A1:991A@>1
6or the year ending D2>>;?2>>CE L O1>> L 2=.C@ Q
21C@;@A@:;@
:C
helps in determining the overall efficiency of the usiness operations. 5n
increase in the ratio over the previous shows improvement in the overall
efficiency and profitaility of the usiness.
Co//en+s%&
The net profit ratio shows a decrease ecause the operating expenses have
increased in comparison to past year. &o they should !eep a watch on their
operating activities and try to reduce the expenditure incurred on them.
5s the figure clearly states that the revenue generated from sales is
increasing ut the profit is going down y few digits ecause of increase in
operational activities. But still the ratio of the current year is <uite
significant ut this continuous decrease in the ratio might e prolematic.
)O'>I"G CAPITAL T('"O!E' 'ATIO
%or!ing capital turnover indicates the rate of wor!ing capital utili$ation in
the company. This ratio can e compared either over a period of time or
with that of industry average
Net sales
@>
Wor!in* ca0ital turnover ratio =
Wor!in* ca0ital
%or!ing capital L (urrent 5ssets ? (urrent .iailities
21C@;@A@;:@
6or the year ending D2>>;?2>>CE L L C.CA times.
22>92;:>=>
9@:>9@A9=;@
6or the year ending D2>>C?2>1>E L L 19 times.
2=222C2C=9
:;@2>@=1@>:
6or the year ending D2>1>?2>11E L L 2=.;; times.
1=9CC@2C19
.
Si*nifi,an,e% This ratio indicates the rate of wor!ing capital utili$ation in
the company. This ratio can e compared either over a period of time or
with that of industry average
@1
Co//en+s%&
The graph clearly depicts that the wor!ing capital turnover ratio was C.CA
times in 2>>;?2>>C which shows a gradual increase. The ratio gain
momentum which currently stood at 2=.;; times which depicts efficient use
of wor!ing capital than earlier.
'a+ios of opera+in* ,y,.e%
Opera+in* ,y,.e of +he ,o/pany
The en+ire se8uen,e of opera+ions in a ,o/pany ,an ;e
su//ari2ed as fo..o0s%
The operating cycle for a company primarily egins with the purchase
of raw materials, which are paid for after a delay representing the
creditorJs payale period.
These purchased raw materials are then converted y the production
unit into finished goods and then sold. The time lag etween the
purchase of raw materials and the sale of finished goods is !nown as
the inventory period.
@2
R# MTERI$ CONVER%ION
&ERIO'
##.'#
$#.()
#%.(%
(
*
#(
#*
$(
$*
# $ %
YER
R

T
I
O
%
1pon sale of finished goods on credit terms, there exists a time lag
etween the sale of finished goods and the collection of cash on sale.
This period is !nown as the accounts receivales period.
'a0 /a+eria. ,on3ersion period%
Ra1 2aterial inventor( - 345
Ra1 2aterial conversion 0eriod =
Ra1 2aterial consu20tion

=>=1>@C2.== O 9A>
6or the year ending D2>>;?2>>CE L L 11.; days
21=9=:=9>@
29C>999=CO 9A>
6or the year ending D2>>C?2>1>E L L 21.>A days
2=222C2C=9
22C2A@19;O 9A>
6or the year ending D2>1>?2>11E L L 19.>9 days.
A99>=1;;:1
.
@9
455E 4566
Co//en+s%&
The graph clearly depicts that the raw material conversion period was
11.=1 days in 2>>;?2>>C which shows a gradual increase. The ratio gain
momentum which currently stood at 19.>9 days.
%or! in process conversion periodK
Wor! in 0ro*ress inventor( - 34/
Wor! in 0ro*ress =
Cost o% *oods sold

C=@AC:;=@O9A>
6or the year ending D2>>;?2>>CE L L 2;.:: days
12@2191;1@@
C=@AC:;=@O9A>
6or the year ending D2>>C?2>1>E L L 1;.9@ days
1C19@A;==22
29A:>92:=9O 9A>
6or the year ending D2>1>?2>11E L L 9:.>: days.
2@9::9:9>1A
@:
4565
#OR( IN &ROCE%%
$&.++
#&.%*
%+.(+
(
#(
$(
%(
+(
# $ %
YER
R

T
I
O
%
FINI%HE' GOO'% INVENTORY
,.$%
$+.,&
$).$#
(
#(
$(
%(
# $ %
YER
R

T
I
O
%
Co//en+s%&
The graph clearly depicts that the wor! in process was 2;.:: days in 2>>;?
2>>C and then it declines to 1;.9@. The ratio gain momentum which
currently stood at 9:.>: days.
6inished goods inventory conversion periodK
Finis"ed *oods inventor( - 34/
Finis"ed *oods =
Cost o% *oods sold

91A;A99@;O9A>
6or the year ending D2>>;?2>>CE L L C.29 days
12@2191;1@@
192=CA1A>@O9A>
6or the year ending D2>>C?2>1>E L L 2:.C; days
1C19@A;==22
1;:@:2@9A@O 9A>
6or the year ending D2>1>?2>11E L L 2A.21 days.
2@9::9:9>1A
@@
455E
4565
4566
'E)TOR% CONVER%ION &ERIO'
*.$&
'.)&
#(.&,
(
*
#(
#*
# $ %
YER
R

T
I
O
%
Co//en+s%&
The graph clearly depicts that the finished goods inventory was C.29 days in
2>>;?2>>C and then it comes to 2:.C; which shows a gradual increase. The
ratio gain momentum which currently stood at 2A.21 days.
3etor conversion periodK
debtors - 34/
Debtor conversion 0eriod =
Credit sales
91=;:::::O9A>
6or the year ending D2>>;?2>>CE L L @.2; days
21C@;@A@;:@
;:1;AA:::O9A>
6or the year ending D2>>C?2>1>E L L =.A; days
9C:9>=>1>2A
1::;ACC==AO 9A>
6or the year ending D2>1>?2>11E L L 1>.;C days.
:;@2>@=1@>:

.
@A
455E
4565
4566
455E
4565
4566
GRO%% O&ERTING CYC$E
+,.%
)+.&
'%.%
(
$(
+(
)(
&(
# $ %
YER
'

Y
%
Co//en+s%&
The graph clearly depicts that the detorsB conversion period was @.2; days
in 2>>;?2>>C and then it comes to =.A; which shows a gradual increase. The
ratio gain momentum which currently stood at 1>.;C days.
Gross opera+in* ,y,.e%
)ross operating cycleL raw material conversion period N wor! in
process N finished goods conversion period.
2>>;?2>>CL 11.= N 2;.: N C.29 L :C.9
2>>C?2>1>L 21.AN 1;.9 N2:.CL A:.;
2>1>?2>11L19.>9N 9:.>:N2A.21L =9.2;
G'AP# PP'ESE"TATIO"
@=
NET O&ERTING CYC$E
++
*'.#
)$.+
(
$(
+(
)(
&(
# $ %
YER
'

Y
%
Co//en+s& The graph clearly depicts that the gross operating cycle was
:C.9 days in 2>>;?2>>C and then it comes to A:.; days which shows a
gradual increase. The ratio gain momentum which currently stood at =9.9
days.
"e+ opera+in* ,y,.e&
,et operating cycle also referred as cash conversion cycle.
/perating cycle is the time duration re<uired to convert sales, after
the conversion of resources into inventories, into cash.
,et operating cycleL gross operating cycle? detors
conversion period
2>>;?2>>CL :C.9 ?@.9L :: days
2>>C?2>1>L A:.;? =.=L @=.1 days
2>1?2>11L =9.9? 1>.CLA2.: days
G'AP# PP'ESE"TATIO"
@;
455E
4565
4566
Co//en+s& The graph clearly depicts that the net operating cycle was ::
days in 2>>;?2>>C and then it comes to @=.1 days which shows a gradual
increase. The ratio gain momentum which currently stood at A2.: days.
SUGGESTIONS AND
RECOMMENDATIONS

The .i<uidity 0atio shows that the li<uidatorBs position of the
company is <uite satisfactory. 5ll the ratios such as the current ratio,
<uic! ratio and cash ratio show a satisfactory position of the
company. The company has to ma!e full utili$ation of its assets.
.everage position of the company is good as we can see that the ratio
continuously decreases and lastly the firm is ale to pay all its det in
current year. &o the firm should try to maintain it and should invest its
money in some profitale activities.
)ross 4rofit ratio of the company is declining, this could e due to K?
@C
455E
4565 4566
#ncrease in the prices of raw material.
#ncrease in the manufacturing expenses.
There is fall in prices of unsold goods, there y reducing
the value of unsold goods.
6ocused attention should e paid y initiating a special drive to
expedite recoveries from sundry detors.
The ,et 4rofit 0atio of the firm also decreases. #t shows the
inefficiency and unpredictaility of the usiness. This decline is
ecause of increase in expenses orne y operating activities.
CONCLUSION

6inance is the asic pillar on which the structure of industrial
underta!ing is ased. This pillar should e properly placed. 5
good wor!ing environment and attractive incentives for the
achievement of targets has oviously created ideal conditions in
7aypee cements for the oth management and wor!ers. ,ot a
single day of production has een lost this shows efficiency in
management.
A>
#n my report # have calculated some of the ratio that was very
regularly used at 7aypee group for the necessary analysis activities
performed y it from time to time. 7aypee group uses this
techni<ue usually to chec! out its current functioning and to
compare its performance on regular asis with the past years.
This techni<ue is useful in inter?firm analysis and to judge
once performance standard as ratio helps to set some standard
mar!s which the firm target to achieve in the given span of time.

BIBLIOGRAPHY
I. I. M. Pandey - Financial Management Vikas-2003
II. Annual reports Jaypee Associates Ltd.
(Cement division)
A1
III. Company website - www.jalindia.com
IV. Websites - www.google.com
A2