CHAPTER-1

INTRODUCTION

1
 INTRODUCTION
Introduction To Financial Management

Business concern needs finance to meet their requirements in the economic world. Any kind of
business activity depends on the finance. Hence, it is called as lifeblood of business organization.
Whether the business concerns are big or small, they need finance to fulfill their business
activities. In the modern world, all the activities are concerned with the economic activities and
very particular to earning profit through any venture or activities. The entire business activities
are directly related with making profit.
According to the Guthumann and Dougall, “Business finance can broadly be defined as the
activity concerned with planning, raising, controlling, administering of the funds used in the
business”.
Financial management is an integral part of overall management. It is concerned with the duties
of the financial managers in the business firm.
The business goal can be achieved only with the help of effective management of finance. We
can’t neglect the importance of finance at any time at and at any situation. Some of the
importance of the financial management is as follows:

Financial Planning
Financial management helps to determine the financial requirement of the business concern and
leads to take financial planning of the concern. Financial planning is an important part of the
business concern, which helps to promotion of an enterprise.

Acquisition of Funds
Financial management involves the acquisition of required finance to the business concern.
Acquiring needed funds play a major part of the financial management, which involve possible
source of finance at minimum cost.

2
Proper Use of Funds

Proper use and allocation of funds leads to improve the operational efficiency of the business
concern. When the finance manager uses the funds properly, they can reduce the cost of capital and
increase the value of the firm.

Financial Decision
Financial management helps to take sound financial decision in the business concern. Financial
decision will affect the entire business operation of the concern. Because there is a direct relationship
with various department functions such as marketing, production personnel, etc.

Improve Profitability
Profitability of the concern purely depends on the effectiveness and proper utilization of funds by the
business concern. Financial management helps to improve the profitability position of the concern
with the help of strong financial control devices such as budgetary control, ratio analysis and cost
volume profit analysis.

Increase the Value of the Firm

Financial management is very important in the field of increasing the wealth of the investors and the
business concern. Ultimate aim of any business concern will achieve the maximum profit and higher
profitability leads to maximize the wealth of the investors as well as the nation.

Promoting Savings
Savings are possible only when the business concern earns higher profitability and maximizing
wealth. Effective financial management helps to promoting and mobilizing individual and corporate
savings. Nowadays financial management is also popularly known as business finance or corporate
finances. The business concern or corporate sectors cannot function without the importance of the
financial management.

3
INTRODUCTION TO THE TOPIC:

“Working capital means the part of the total asset of the business that change from one form to
another form in ordinary course of business operations’.

Concept of Working Capital:-

The word working capital is made of two words
1. Working

2. Capital

The word working means day to day operation of the business, whereas the word capital means
monetary value of all assets of all the business.

Working Capital:-
Working capital may be regarded as the life blood of business. Working capital is of major
importance to internal and external analysis because of its close relationship with the current day
today operation of the business. Every business needs funds for two purposes.
 Long term funds are required to create production facilities through purchase of fixed assets such
as plants, machines, land, buildings & etc.

 Short term funds are required for the purchase of raw material, payment of wages, and other day-
to-day expenses. It is otherwise known as revolving or circulating capital. It is nothing but the

difference between current assets and current liabilities, i.e.

Working Capital = Current Assets – Current Liabilitie

Business use capital for conclusion, renovation, furniture, software, equipment, or machinery. It is
commonly used to purchase inventory or to make payroll. Capital is also used often by business to
put down a payment on a piece of commercial real-estate. Working capital is essential for any
business to succeed. It is becoming increasingly important to have access to more working capital
when we need it.

4
OBJECTIVES

The main objectives for undertaking this project are:

 To understand the concept of working capital of the firm.

 To conduct a brief study of historical working capital trends.
 To study the ratios related with working capital.
 To understand the forecast made by the firm with respect to the future
working capital requirement.
 To study the working capital operating cycle of the firm.
 To study the present working capital utilization pattern of the firm.
 To provide recommendations and suggestions based on the study.

5
HYPOTHESES :

 The following hypothesis are framed for conduction of the study:

 The Company has sound position of working Capital in their business.

 Company has maintained sufficient profits during the period.

6
 SCOPE OF STUDY

 The main scope of the study is to check the management of working capital (current
assets and current liabilities) of only NESTLE
 The study analysed the liquidity position and working capital management of a limited
sample consisting of only one companies i.e. NESTLE .
 The study of working capital is based on only one tool i.e. Ratio analysis
 Further the study is based on last 5 years Annual Reports of the company taken into
consideration.
 As only company s was studied so the findings could only be generalized to this sector’s
firms

7
LIMITATIONS OF THE STUDY:-
Following limitations were encountered while preparing this project:

1) Limited Data:-
This project is completed with annual reports; it just constitutes one part of data collection i.e. secondary.
There were limitations for primary data collection because of confidentiality.

2) Limited Period:-
This project is based on five years annual reports. Conclusions and recommendations are based on such
limited data. The trend of last five years may or may not reflect the real working capital position of the
company

3) Limited Area:-
Also it was difficult to collect the data regarding the competitors and their financial information. Industry
figures were also difficult to get.

5) Type Data Used For This Project:-

This project is completely based on secondary data collected from various sources like annual report,
internet, books etc.

8
 CHAPTER-2

COMPANY PROFILE

9
INTRODUCTION:

It is considered to be “the multinational among multinationals”. A 1.5 percent sales is generated

from home country alone, other factories are situated in abroad.Nestlé was founded in 1867 by
pharmacist Henri Nestlé on the shores of Lake Geneva in Vevey, Switzerland. One hundred and
thirty-four years later, our headquarters are still in Vevey, surrounded by the Swiss Alps in one of
the world’s best-preserved environmental settings. As they have grown from humble beginnings
into the world’s largest food company, they have attempted to take the fundamental cultural
values of environmental preservation and cleanliness into every country where they operate.
Company has 468 Nestlé factories currently in operation.
 Company’s facilities reflect the environmental values basic to Nestle Company.

 Top management follow the Company’s environmental performance

 Company’s Environmental Officer reports directly to General Management to ensure there is

on-going awareness regarding environmental affairs.

Nestlé Environmental Advisory Group meets regularly to review current environmental issues
and to anticipate potential concerns. This allows them to maximize control over their activities
and contribute to sustainable development in the countries where they operate. The Nestlé
Environment – Progress Report 2000 describes the results of continuous improvement in its
environmental practices and being a leader in environmental performance.

10
HISTORY

Merging of many small companies resulted into the big company named Nestle. Chemist,
merchant, innovator Henri Nestle made experiments with the wheat flour, cow’s milk, sugar.
Resulted product was useful to the infants as a nutrition those who cannot be breast-fed by their
mothers and it proved to be useful by saving an infant born prematurely. Then the production of
it started and named as Farine Lactee Nestle at Vevey.
Developing of own brands and to achieve success in a tougher way instead of choosing an easier
way to become a private label was the decision taken by Henri Nestle. Anglo-Swiss company
was established by Charles and George Page, two Americans which is a condensed milk
company that competed with Nestle products. Peter, world’s leading chocolate maker and a
friend of Nestle merged his chocolate factory into Nestle Company. While World War I dairy
product demand increased lot by considering the government contracts
By the end of the war the usage of the fresh milk started again leaving condensed milk resulted
in first loss to Nestle Company in 1921. In 1930, a soluble coffee powder was produces by
Dapples which revolutionized drinking of coffee all around the world. It was introduced as
Nescafe due to the World War II onset. The affect of World War II haven’t impacted much upon
Nestle and later it has grown up with many new products.
After 1974, there was lot of decrease in the profits earned by the Nestle. It was made better by
the CEO Helmut Maucher in 1981, firstly by restructuring the internal matters and divestments
and secondly by continuing with the strategic acquisitions. By 20th century Nestle became the
undisputed leader in food industry. Bringing of best and most relevant products to the people is
the main aim of Nestle Company.

11
Nestle India:

 Nestlé Relationship with India dates back to 1912, when it began trading as the Nestlé Anglo-
Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in
the Indian market.

 After India’s Independence in 1947, the economic policies of the Indian government
emphasized the need of local production.

 Nestlé responded to India’s aspiration and setup its first factory in 1961 at Moga, Punjab.
Where government wanted Nestlé to develop the milk economy.

 Nestlé has been a partner in India’s growth for over nine decades now and has built a very
special relationship of trust and commitment with the people of India.

 Nestlé India.

Mission, Vision and Goals of Nestle

 Vision:
Providing high quality food to the people to meet the various needs of them by daily marketing
and selling foods.

 Mission:
The foods which are safer having high quality and that providing optimal nutrient to people for
meeting the physiological needs is the main mission of Nestle.

 Business Objectives:
The main objective of the Company is to produce and market company products creating value
to it. Not favoring short-term profit by expensing a lot. Maintaining consciousness of fact that
professionalism reflects the corporation while recruiting the right people.

12
 Core Values:
Maintaining respect and trust in people is main core value to be kept in mind. To listen and
engage with people is also one kind of communication. To cooperate and helping others should
be done willingly which is the basic for advance and promotion of the company.

13
 Chapter-3

THEORITICAL
BACKGROUND

14
THEORITICAL PERSPECTIVE :

“Working capital means the part of the total asset of the business that change from one form to
another form in ordinary course of business operations’.

Concept of Working Capital:-

The word working capital is made of two words
3. Working

4. Capital

The word working means day to day operation of the business, whereas the word capital means
monetary value of all assets of all the business.

Working Capital:-
Working capital may be regarded as the life blood of business. Working capital is of major
importance to internal and external analysis because of its close relationship with the current day
today operation of the business. Every business needs funds for two purposes.
 Long term funds are required to create production facilities through purchase of fixed assets
such as plants, machines, land, buildings & etc.

 Short term funds are required for the purchase of raw material, payment of wages, and other
day-to-day expenses. It is otherwise known as revolving or circulating capital. It is nothing but
the difference between current assets and current liabilities, i.e.

Working Capital = Current Assets – Current Liabilities

Business use capital for conclusion, renovation, furniture, software, equipment, or machinery. It
is commonly used to purchase inventory or to make payroll. Capital is also used often by
business to put down a payment on a piece of commercial real-estate. Working capital is essential
for any business to succeed. It is becoming increasingly important to have access to more
working capital when we need it.

15
Concept of Working Capital :

Gross Working Capital = Total of Current Assets

Net Working Capital = Excess of Current Assts over Current Liability

Current Assets:
 Cash in hand / at bank
 Bills receivable
 Sundry debtors
 Short term loans
 Inventory / stock
 Temporary investment
 Prepaid expenses
 Accrued income

Current Liabilities:
 Bills payable
 Sundry creditors
 Outstanding expenses
 Accrued expenses

1. Cash and Equivalents:-

This is most liquid form of working capital requires constant supervision. A good cash budgeting
and forecasting system provides answer to key questions such as; is the cash level adequate to
meet current expenses as they come due? When will pick cash need occur? When will repayment
be expected and will the cash flow cover it

16
2. Accounts Receivables:-
Many businesses extend credit to their customer. If you do is the amount of account receivable
reasonable relative to sales? How rapidly are receivable being collected? Which customers are
slow to pay and what should be done about them.

3. Inventory :-
Inventory is often as much as 50% of firm current assets. So naturally it requires continue
scrutiny. Is the inventory level reasonable compared with sales and the nature of your business?
What’s the rate of inventory turnover compared with the companies in your type of business.

4. Accounts Payable:-
Financing by suppliers is common in small business; it is one of the major sources of fund for
entrepreneurs. Is the amount of money owned suppliers reasonable relative to what you
purchase? What is your firm’s payment policy doing to enhance or detract from your credit
ratings.

5. Accrued Expenses & Taxes Payable:-

These are obligation of your company at any given time and represent a future outflow of cash.

17
OPERATING CYCLE

The need of working capital arrived because of the time gap between production of goods and
their realization after sale. This time gap is called ‘Operation Cycle’ or Working Capital Cycle’.
The operation cycle of a company consist of time period between procurement of inventory and
the collection of cash from receivables.
The operating cycle is a length of time between the company outlay on raw material, wages and
other expenses inflow from of cash from sales of goods. Operating cycle is an important concept
in management of cash and management of cash working capital. The operating cycles reveals
the time that elapses between outlay of cash and inflow of cash. Quicker the operating cycle less
amount of working capital is needed and it improves profitability. The duration of the operating
cycle depends on nature of industries and efficiency in working capital management.

18
SIGNIFICANCE OF WORKING CAPITAL :

Factors requiring consideration while estimating working capital

Factors Requiring While Estimating Working Capital

 The average credit period expected to be allowed by suppliers.

 Total cost incurred on material wages.

 The length of time for which raw material are to be remain in store before they are issued for.

 The length of production cycle or work in progress.

 The length of sales cycle during which finished goods are to be kept waiting for sales.

 The average period of credit allowed to customer.

 The amount of cash requires making advance payment.

19
Importance of Working Capital Ratios

Ratio analysis can be used by financial executive to check upon the efficiency with
which working capital is being used in the enterprise. The following are the
important ratios to measure the efficiency of working capital. The following easily
calculated, ratios are important measure of working capital utilization.
Ratio Formulae Result Interpretation
Stock Turnover = x days On average you turn over the
(in days) Average stock x 365 value of entire stock every x
Cost of good sold days. You may need to break
this down into product good
for effective stock
management .

Receivable ratio = x days It takes you on average x days

(in days) DEBTOR x 365 to collect money due to you if
SALE your official credit terms 45
days and it takes you 65 days.

On average you pay your

suppliers every x days. If you
DEBTOR x 365 negotiate better credit term
Payable ratio Cost of Sale or Purchase this will increase. If you pay
(in days) = x days early say to get discount this
will be decline if you simply
pay your suppliers this will
also increase your reputation.

= x times Current assets are those

assets ready to turn into
Totat Assest cash or will do so within
Current ratio Currenttotal Liability in 12 months in the
course of business.
Current liabilities are
those which are to be
paid within 12 months.

20
Quick ratio Total Assest-inventory Similar to current ratio but
Total Currenttotal Liability takes account of the fact that
= x times it may take time to convert
inventory into cash.

Working Inventaryreceivable payment +as -sales A high percentage means that

capital ratio sale working capital needs are
high relative to your sales.

Determinants Of Working Capital

The amount of working capital is depends upon following factors:
1. Nature of business

Some businesses are such due to their very nature that their requirements of fixed capital are
more rather than working capital. These businesses sell services and not the commodities and
that too on cash basis. As such no funds are blocked in piling inventions and also no funds are
blocked in receivable. For example public utility services like railways, infrastructure, oriented
project etc. There required of working capital is less on the other hand there are some business
like trading activity, where require of working capital is less but more money is blocked in
inventory & debtors.
2. Length of production cycle

In some business like machine tools industry the time gap between the acquisitions of raw
material till the end of final production of finished products itself is quite high. As such amount
may be blocked in raw material or work in progress of finished goods or even in debtors.
Naturally there need of work in capital is high.
3. Size and growth of business

21
In very small company working capital requirement is quit high due to high overhead, higher
buying and selling cost etc. As such medium size business positive high edge over the small
companies. But if the business starts growing after certain limit the working capital requirements
may adversely affect by increasing size.
4. Business / Trade cycle

If the company is the operating in the time of boom, the working capital requirement may be
more as the company may like to buy more raw materials. May increase the production and sale
to take the favorable benefits of the market due to increase in sale there may be more and more
amounts of fund blocked in stock & debtors etc. Similarly in case of depression also working
capital may be high as the sales terms of values and quantity may be reducing there may be
unnecessary pilling up of stack without getting sold the receivable may not be recovered in the
time.

5. Terms of Purchase & Sales

Sometimes due to competition or custom it may be necessary for the company to extend more
and more credit to customer as a result more amount is locked up in debtors and bills receivable
which increase the working capital requirement. On the other hand, in case of purchase, if credit
is offered by suppliers of goods and services, a part of working capital requirement may be
finance by them, but it is necessary to purchase on cash basis, the working capital requirement
will be higher.

6. Profitability
The profitability of the business may be vary in each and every individual case, which is in turn
its depends on numerous factors, but high profitability will positively reduce the strain on
working capital requirement of the company, because the profit to the extend that they earned in
cash may be used to meet the working capital requirement of the company.

22
7. Operating efficiency
If the business is carried on more efficiency, it can operate in profits which may reduce the strain
on working capital; it may ensure proper utilization of existing resources by eliminating the
waste and improve the coordination.

Need of Working Capital Management:

Working capital is the life blood and nerve center of business. Working capital is very essential to
maintain smooth running of a business. No business can run successfully without an adequate
amount of working capital. The main advantages or importance of working capital are as
follows:
1. Strengthen The Solvency: Working capital helps to operate the business smoothly without
any financial problem for making the payment of short-term liabilities. Purchase of raw materials
and payment of salary, wages and overhead can be made without any delay. Adequate working
capital helps in maintaining solvency of the business by providing uninterrupted flow of
production.

2. Enhance Goodwill: Sufficient working capital enables a business concern to make prompt
payments & hence helps in creating and maintaining goodwill. Goodwill is enhanced because all
current liabilities & operating expenses are paid on time. .

3. Easy Obtaining Loan: A firm having adequate working capital, high solvency and good
credit rating can arrange loans from banks and financial institutions in easy and favorable terms.

4. Regular Supply Of Raw Material: Quick payment of credit purchase of raw materials
ensures the regular supply of raw materials fro suppliers. Suppliers are satisfied by the payment
on time. It ensures regular supply of raw materials and continuous production. .

5. Smooth Business Operation: Working capital is really a life blood of any business
organization which maintains the firm in well condition. Any day to day financial requirement
can be met without any shortage of fund. All expenses and current liabilities are paid on time.

6. Ability To Face Crisis: Adequate working capital enables a firm to face business crisis in
emergencies such as depression.

23
Gross Working Capital – Gross working capital refers to the amount which the company has
invested into the current assets; current asset includes cash, stock, debtors or anything which can
be converted into cash within a year.
Net Working Capital – Net working capital refers to the difference between the current assets
and current liabilities of the company, current asset as explained above will be same and current
liabilities include trade creditors, bills payable, outstanding expenses or any debt which company
has to pay within a year.
As one can see from the above that both gross working capital and net working capital are
different because under gross working capital one calculate the amount which the company has
invested into current assets, which implies that current liabilities are excluded while calculating
gross working capital, which is not the case under net working capital where one calculate the
difference between current assets and current liabilities.

24
 CHAPTER-4

RESEARCH
METHODOLOGY

25
RESEARCH METHODOLOGY:

The process through which the research study would be completed is called
research methodology. Research methodology describes the method of conducting
the research study. It shows the logical sequence of the steps of research process
from beginning to completion.

SELECTION OF LOCATION FOR THE STUDY: The location for study was
selected as the corporate office of N.K KUSUMGAR & CO. Nagpur.

RESEARCH DESIGN: “A Research design is the arrangement of conditions for

collection and analysis of data in a manner that aims to combine relevance to the
research purpose with economy in procedure‖ The research design followed to
study the working capital management of Nestle pvt. ltd. is Descriptive and
Analytical Research Design.

DATA COLLECTION:
 Data collection is a term used to describe a process of preparing and

collecting data
 Systematic gathering of data for a particular purpose from various sources,

that has been systematically observed, recorded , organized.

 Data are the basic inputs to any decision making process in business

DATA COLLECTION
Types of data collection
Data can be defined as the quantitative value of the variable. Data is plural of ‘Datum’ which
literally means to give or something given. Data is though be the lowest unit of information
which other measurement and analysis can be done. Data can be the number, images, words,
26
figures, facts, or ideas. Data in itself cannot be understood and to get information from the data
one most interpret it into meaningful information. There is various information of interpreting
data. Data sources are broadly classified into Primary & Secondary data.

SECONDARY DATA : secondary data for this project will be collected from
annual report of the company. From different year.
Project is based on Secondary Data
1. Annual report for the year.2011-2012
2. Annual report for the year.2012-2013
3. Annual report. for the year 2013-2014
4. Annual report. for the year.2014-2015

27
 Chapter-5

DATA ANALYSIS
&
DATA INTERPRETATION

28
Calculation of working capital for the year 2011-2015

Particular 2011 2012 2013 2014 2015

CurrentAssets

Inventories 734.04 745.58 735.93 844.10 820.81

SundryDebtors 115.42 87.57 84.27 99.10 78.42

Cash&Bank 227.21 236.96 749.36 445.82 499.55

Loan& Adv. 243.21 180.60 229.61 197.24 228.12

TotalCurrent 1290.34 1490.12 2301.72 1963.67 2479.61

Assets
Current
Liabilities
Current 1059.75 1259.51 1348.76 1361.00 1382.40
Liabilities
Provisions 1097.20 1055.81 1407.27 1601.72 1862.49

TotalCurrent 1467.52 1128.43 1347.18 1355.45 1475.73

Liabilities

Working -177.18 361.69 954.54 608.22 1003.88

Capital

29
 Calculations of Ratios:

1. Current Ratio:

Particulars 2011 2012 2013 2014 2015

Current 0.55 0.54 0.65 0.53 0.50

Ratio

Interpretation:
Current ratio indicates the availability of current assets in rupees for every rupee of current
liability. The ratio reflects the financial stability of the enterprise. The standard and normal ratio
is 2:1. Now if we analyze five year data it can be predict that it holds the declining position in
year 2011 to 2015 and it is seen that it holds a low position than standard one and the company
require improving the position.

30
 2 Working Capital Turnover Ratio:

Particulars 2011 2012 2013 2014 2015

Working capital -42.41 23.04 9.53 16.20 8.15
turnover Ratio

Interpretation
However we can interpret that the working capital turnover ratio is increasing because current
assets are decreasing over current liabilities therefore working capital increase 2011 to 2015.

31
 3.CurrentAssetsTurnover Ratio:

Particulars 2011 2012 2013 2014 2015

Current Assets 3.10 4.38 4.09 6.83 6.57

Turnover ratio

Interpretation:

We observe the current assets turnover ratio increasing because of increase in current assets and
sales.

32
4. CurrentAssets

Particulars 2011 2012 2013 2014 2015

Total current 1290.34 1490.12 2301.72 1963.67 2479.61

assets ratio

Interpretation

Here we can observe the current assets are increasing from the year 2011 to 2015.

33
 5. Current Liabilities:

Particulars 2011 2012 2013 2014 2015

Totalcurrentl 1467.52 1128.43 1347.18 1355.45 1475.73

iabilities

Interpretation:

If we analyze the above table then we can see that it follow an uneven trend. The
important component of current liabilities is sundry creditors and other liabilities. This is liability
for company so this should be less. When company has minimum liabilities it creates better
goodwill in the market.

34
 6.Debt Equity Ratio:

Particulars 2011 2012 2013 2014 2015

Debt Equity 0.57 0.58 0.50 0.01 0.01

Ratio

Interpretation:
Debt equity ratio of the company is below 1. Which is below the standard norms and hence
the company has good financial position and less of financial risk and insolvency.

35
Chapter-6
FINDING
CONCLUSIONS&
SUGGESTION

36
Conclusion:

Working capital management is important aspects of the financial management. The study of
working capital management of Nestle India Ltd. Has revealed that the current ratio was as per
the standard industrial practice but the liquidity position of the company shows an increasing
trend. The study has been conducted on working capital ratio analysis, working capital leverage,
working capital components which help the company to manage its efficiency & affectively.

1. Working capital of the company was increasing and showing positive working capital year. It
shows good liquidity position

2. Positive working capital indicates that company has the ability of payement of short term
liabilities.

3. Working capital increase because of increment of the current assets is more than the current
liabilities.

4. Company current assets are always more than requirement if affect on profitability of the
company.

5. Current assets components shown sundry debtors were the major part in current asset is shown
that the inefficiency collection management.

37
Findings & Suggestions:

Suggestion can be use by the firm for the betterment increase of the firm after study and analysis
of project report on study and analysis of working capital. I would like to recommend:
1. Company should raise fund through short term sources for short term requirement of funds,
which comparatively economical as compare to long term fund.

2. Company should take control on debtor’s collection period ehich is majaor part of the current
assets.

3. Company has to take control on cash balance because cash is not earning assets and increasing
cost of fund.

38
BIBLIOGRAPHY

BOOKS:
1. FINANCIAL MANAGEMENT BY. KHAN & JAIN

2. MANAGEMENT ACCOUNTING 6th EDITION BY. M.Y.KHAN & P.K.JAIN

3. FINANCIAL ACCOUNTING FOR MANAGERS BY.SANJAY DHAMIJA

WEBSITES:
1. www.nestle.in

2. www.google.co.in

3. www.moneycontrol.com

ANNUAL REPORTS:
1. NESTLE INDIA 2011-2012

2. NESTLE INDIA 2012-2013

3. NESTLE INDIA 2013-2014

4. NESTLE INDIA 2014-2015

39
ANNEXURE

40
 BALANCE SHEET OFNESTLE INDIALTD.

Particulars Dec‘15 Dec’14 Dec’2013 Dec’2012 Dec’2011

SourcesOfFunds
TotalShareCapital 96.42 96.42 96.42 96.42 96.42
EquityShareCapital 96.42 96.42 96.42 96.42 96.42

ShareApplication 0.00 0.00 0.00 0.00 0.00

Money
PreferenceShareCapital 0.00 0.00 0.00 0.00 0.00

Reserves 2721.42 2740.79 2272.33 1701.99 1177.54

Networth 2817.84 2837.21 2368.75 1798.41 1273.96
SecuredLoans 0.9 4.11 0.01 0.24 0.84
UnsecuredLoans 16.83 15.46 1189.48 1049.95 970.03
TotalDebt 17.73 19.57 1189.49 1050.19 970.87
TotalLiabilities 2835.57 2856.78 3558.24 2840.6 2244.83
ApplicationofFunds

GrossBlock 5058.48 4950.1 4844.28 4368.68 2493.33

Less:Revaluation 0.00 0.00 0.00 0.00 0.00
Reserves
Less:Accum. 2160.63 1773.46 1474.97 1164.41 917.58
Depreciation
NetBlock 2897.85 3176.64 3369.31 3204.27 1575.75
CapitalWorkInProgress 230.79 244.78 294.71 344.08 1371.78

Investments 1324.92 811.82 851.08 364.86 134.37

Inventories 820.81 844.1 735.93 745.58 734.04
SundryDebtors 78.42 99.1 84.27 87.57 115.42
Cash&BankBalance 499.55 445.82 749.36 236.96 227.21

TotalCurrentAssets 1398.78 1389.02 1569.56 1070.11 1076.67

Loans&Advances 228.12 197.24 229.61 180.6 243.21

FixedDeposits 0.00 0.00 0.00 0.00 0.00
TotalCA,Advances 1626.9 1586.26 1799.17 1250.71 1319.88
DeferredCredit 0.00 0.00 0.00 0.00 0.00
CurrentLiabilities 1382.4 1361 1348.76 1259.51 1059.75
Provisions 1862.49 1601.72 1407.26 1055.81 1097.2
TotalCL&Provisions 3244.89 2962.72 2756.03 2315.32 2156.95

NetCurrentAssets -1617.99 -1376.46 -956.86 -1024.61 -837.07

MiscellaneousExpenses 0.00 0.00 0.00 0.00 0.00

TotalAssets 2835.57 2856.78 3558.24 2848.6 2244.83

ContingentLiabilities 111.92 43.53 72.68 103.86 461.87

41
 BookValue 292.26 294.27 245.68 186.53 132.13
PROFIT& LOSS A/C
Particulars Dec’15 Dec’14 Dec’13 Dec’12 Dec’11

12months 12months 12months 12months 12months

Income

SalesTurnover 8482.48 10178.07 9419.02 8614.15 7697.31

ExciseDuty 307.17 323.23 317.97 279.62 182.76

NetSales 8175.31 9854.84 9101.05 8334.53 7514.55

OtherIncome -390.17 94.32 96.9 31.03 27.16

StockAdjustments -11.97 67.43 -105.32 92.02 48.28

TotalIncome 7772.59 10016.59 9092.63 8457.58 7589.99

Expenditure
RawMaterial 3498.21 4640.46 4059.29 3909.06 3677.43

Power&FuelCost 221.99 384.33 385.38 370.89 295.81

EmployeeCost 912.75 837.05 741.5 663.38 546.46

OtherManufacturing 0 0 0 0 0
Expenses
Selling&Admin. 0 0 0 0 0
Expenses
MiscellaneousExpenses 1975.46 2028.63 1861.98 1657.88 1523.93

PreoperativeExpense 0 0 0 0 0
Capitalized
TotalExpenses 6608.41 7890.47 7048.15 6601.21 6043.63

OperatingProfit 1554.93 2031.8 1947.58 1825.34 1519.2

PBDIT 1164.18 2126.12 2044.48 1856.37 1546.36

Interest 3.29 14.23 36.51 26.6 5.11

PBDT 1160.89 2111.89 2007.97 1829.77 1541.25

Depriciation 347.26 337.54 329.95 277.15 153.33

OtherwrittenOff 0 0 0 0 0
ProfitBeforeTax 813.63 1774.35 1678.02 1552.62 1387.92

42
 ExtraOrdinaryItems 0 0 0 0 0

PBT 813.63 1774.35 1678.02 1552.62 1387.92

Tax 250.36 589.66 560.89 484.69 426.37
ReportedNetProfit 563.27 1184.69 1117.13 1067.93 961.55

BookValue(InRs.)

TotalValueAddition 3110.2 3250.01 2988.86 2692.15 2366.2

PreferenceDividend 0 0 0 0 0

EquityDividend 467.62 607.42 467.62 467.62 467.62

CorporateDividendTax 95.63 109.16 79.47 75.86 75.39

SharesInIssue 964.16 964.16 964.16 964.16 964.14

EPS(inRs) 58.42 122.87 115.87 110.76 99.73

EquityDividend 485 630 485 485 485

BookValue(InRs.) 292.26 294.27 245.68 186.53 132.13

43
44