Acknowledgement

I am Grateful to Mr. N. SUBRAMANIAN and

Dr.KAVITHASUBRAMANIAN, Secretary and Management Trustee

J.J College of Art & Science (Autonomous), Pudukkottai

for their opportunity give to me.

It is my Privilege to express My Gratitude toward to

Dr.J. PARASURAMAN, M.A., M.B.A., M.C.A., M.Phil, B.Ed.,

Ph.D., Principal, J.J College of Art & Science

(Autonomous), Pudukkottai for having admitted to me in

this college to undergo this course.

I express my special thanks to Mr. S. ADAEKALAVAN,

M.C.A., M.Phil, Head, Department of Commerce, J.J College

of Art & Science (Autonomous), Pudukkottai for his

valuable support and guidance.

I wish to acknowledge my indebtedness and deep sense of

gratitude to my Respected Guide Dr. L.LEO FRANKLIN M.Com,

M.Phil, Ph.D. Assistant Professor and Research

Advisor of Commerce, J.J College of Art & Science

(Autonomous), Pudukkottai for his motivation and valuable

guidance.

I offer my affectionate thanks to my Father and my Mother

and my family members and my Friends for their Co-

operation rendered throughout the project.

I feel highly elated in manifesting my deep sense of

Gratitude and Respect for “The Almighty” for his immense

blessing is all my endeavor’s to complete my project

successfully.

SUBALAKSHMI

Abstract

This paper’s core aim is to analyses information about a

company's gross receipts and gross payments for a

specified period of time. The gross receipts and gross

payments will be reported in the cash flow statement

according to one of the following classifications:

operating activities, investing activities, and

financing activities. The net change from these three

classifications should equal the change in a

company's cash and cash equivalents during the reporting

period.

Cash flow is of vital importance to the health of a

business. One saying is:” revenue is vanity, cash flow is sanity, but

cash is king”. What this means is that whilst it may look

better to have large inflows of revenue from sales, the

most important focus for a business is cash flow.

Many businesses may continue to trade in the short- to

medium-term even if they are making a loss. This is

possible if they can, for example, delay paying

creditors and/or have enough money to pay variable

costs. However, no business can survive long without

enough cash to meet its immediate needs.

Understanding the basic concepts of cash flow will help

you plan for the unforeseen eventualities that nearly

every business faces.

CONTENTAcknowledgement 0

Abstract 1

CONTENT 2

CHAPTER - I 6

1. GENERAL INTRODUCTION 61.1. OBJECTIVES OF THE STUDY 8

1.2. STATEMENT OF THE PROBLEM 8

1.3. PURPOSE OF THE STUDY 8

1.4. SCOPE OF THE STUDY 8

1.5. RESEARCH QUESTIONS 9

1.6. Geographical scope 9

2. RESEARCH METHODOLOGY 102.1 RESEARCH 102.2 RESEARCH DESIGN 102.3 DATA COLLECTION 112.4 TOOLS USED IN THE ANALYSIS 12

2.5 PERIOD OF STUDY 122.6 LIMITATION OF THE STUDY 12

3. CHAPTER SCHEME 13

CHAPTER - II 14

1. REVIEW OF LITERATURE 141.1 Introduction Error! Bookmark not defined.

1.2 BAUMOL’S MODEL 14

1.3 THE MILLER-ORR MODEL 16

1.4 The Drive towards Efficiency, Transparency, Standardization and Integration 17

1.5 CASH MANAGEMENT AND CAPITAL BUDGETING PRACTICES 18

CHAPTER - III 23

1. COMPANY PROFILE 231. INTRODUCTION 23

Quality Assurance 23

Companies & Brands 23

1.1 VISION & MISSION 24

1.2 PRODUCTS AND SERVICES 251.2.1 Venetian Blinds 251.2.2. Vertical Blinds 251.2.3 Wooden / Chic Roll Ups 261.2.4 Roller Blinds 261.2.5 Insect Screens 271.2.6 Curtain Rods 271.2.7 Curtains 271.2.8 Window Film 281.2.9 Sofa 281.2.10 Wall Covering 281.2 .11 Wall Scenery 291.2 .12 Pest Control 291.2.13 Door Mat 30

2. INDUSTRY PROFILE 312.1 Interior Services 31

2.2 Interior Designing 31

2.3 Interior Design Planning 32

2.4 Turnkey Projects on Interior Designing 33

2.5 Space Planning 33

2.6 False Ceilings 34

2.7 Wood Work 34

2.8 Glass Work 35

2.9 Acoustic Ceiling 35

2.10 Modular Furniture 36

2.11 Customized Furniture 36

SAMPLING AREA 37

CHAPTER – IV 38

1. DATA ANALYSIS AND INTERPRETATION 381.1 SCHEDULE OF CHANGES IN WORKING CAPITAL YEAR 2010-11 38

1.2 FUND FLOW STATEMENT FOR THE YEAR 2010-11 39

1.3 SCHEDULE OF CHANGES IN WORKING CAPITAL YEAR 2011-12 40

1.9 CASH FLOW STATEMENT FOR THE YEAR 2009-2010 46

2. RATIO ANAYSIS 512.1 CURRENT RATIO 51

2.2 QUICK RATIO 53

2.3 NET PROFIT RATIO 55

2.4 INVENTORY TURNOVER RATIO 57

2.5 DEBTORS TURNOVER RATIO 59

2.6 DEBT-ASSET RATIO 61

2.7 FIXED ASSETS TURNOVER RATIO 63

2.8 WORKING CAPITAL TURN OVER RATIO 65

STATEMENT OF WORKING CAPITAL 66

2.9 CURRENT ASSETS TO FIXED ASSETS RATIO 67

2.10 WORKING CAPITAL TO CURRENT ASSET RATIO 69

3. TREND ANALYSIS 71

4. CASH BUDGETING 73

CHAPTER - V 75

1. FINDINGS, SUGGESTIONS AND CONCLUSIONS 751.1 FINDINGS 75

1.2 SUGGESTIONS 76

1.3 CONCLUSION 78

BIBLIOGRAPHY 79

CHAPTER - I

General Introduction

CHAPTER - I1. GENERAL INTRODUCTION

Cash is the important current asset for the

operations of the business. Cash is the basic input

needed to keep the business running on a continuous

basis; it is also the ultimate output expected to be

realized by selling the service or product manufactured

by the firm. The firm should keep sufficient cash,

neither more nor less.

Cash shortage will disrupt the firm’s manufacturing

operations while excessive cash will simply remain idle,

without contributing anything towards the firm’s

profitability. Thus, a major function of the financial

manager is to maintain a sound cash position.

Cash is the money which a firm can disburse

immediately without any restriction. The term cash

includes coins, currency and cheques held by the firm,

and balances in its bank accounts. Sometimes near-cash

items, such as marketable securities, are also included

in cash.

"The concept of cash management is not new and it

has acquired a greater significance in the modern world

of business due to change that took place in the conduct

of business and ever increasing difficulties and the

cost of borrowing." Apart from the fact that it is the

most liquid current assets, cash is the common

denominator to which all current assets can be reduced

because the other current assets i.e. receivables and

inventory get eventually converted into cash. This

underlines the significance of cash management.

1.1. OBJECTIVES OF THE STUDY

• To find out the cash position of the concern

through ratio analysis.

• To analyze the cash management of the company.

• To study the growth of standard in terms of fund

flow statement and cash flow statement.

• To make suggestion and recommendation to improve

the cash position of standard.

1.2. STATEMENT OF THE PROBLEM

Cash management techniques are adopted by

organizations in order to ensure effective

investment of cash and to achieve profitability

both in the short run and long run.

But despite the adoption of these cash management

techniques, still most present fabric industry run

bankrupt to the extent that some are even closed

due to poor cash management.

1.3. PURPOSE OF THE STUDY

The purpose of the study was to establish the

relationship between cash management and profitability

of the concern.

1.4. SCOPE OF THE STUDY

The present study concentrates on the

cash position with reference to GOKUL FABRICATES. In

addition to that study contains the analysis of

financial soundness and growth of the firm in the term

of liquidity solvency and trend analysis.

It helps to take short term financial

decision and it indicates the cash requirement needed

for plant or equipment expansion programmers. To find

strategies for efficient management of cash. It helps to

arrange needed funds on the most favorable terms. It

helps to meet routine cash requirement to finance the

transaction. It reveals the liquidity position of the

firm by highlighting the various sources of cash and its

1.5. RESEARCH QUESTIONS

What are the cash management techniques used in

GOKUL FABRICATES private ltd?

What is the profitability of GOKUL FABRICATES

private ltd?

What is the relationship between cash management

and profitability in GOKUL FABRICATES private

1.6. Geographical scope

The study was based on GOKUL FABRICATES Pvt, ltd in

Chennai district.

2. RESEARCH METHODOLOGY

2.1 RESEARCH

Research is a process in which the researchers wish

to find out the end result for a given problem and thus

the solution helps in future course of action. The

research has been defined as “A careful investigation or

enquiry especially through search for new facts in

branch of knowledge”.

Martyn Shuttleworth - "In the broadest sense of the

word, the definition of research includes any gathering

of data, information and facts for the advancement of

knowledge.

2.2 RESEARCH DESIGN

The research design used in this project is

Analytical in nature the procedure using, which

researcher has to use facts or information already

available, and analyze these to make a critical

evaluation of the performance.

2.3 DATA COLLECTION

Data collection is the process of gathering

and measuring information on variables of interest, in

an established systematic fashion that enables one to

answer stated research questions hypotheses, and

evaluate outcomes. The data collection component of

research is common to all fields of study

including physical and social sciences, humanities,

business, etc.

Primary data is the data collected by the researcher themselves, i.e.

1. interview2. observation3. action research4. case studies5. life histories6. questionnaires7. ethnographic research8. longitudinal studies

Secondary sources are data that already exists

1. Previous research2. Official statistics3. Mass media products4. Diaries5. Letters6. Government reports7. Web information8. Historical data and information

2.4 TOOLS USED IN THE ANALYSIS

Fund flow statement & cash flow statement.

Trend analysis

Ratio analysis.

Cash Budget.

2.5 PERIOD OF STUDY

The present study has taken into account Five years

viz., 2010-2014

2.6 LIMITATION OF THE STUDY

Only secondary data collected from GOKUL FABRICATES

CHENNAI is used for the study, hence the accuracy of the

findings and conclusion of the statement will depend

upon the accuracy of the given data.

Only five years financial statement of GOKUL

FABRICATES CHENNAI is used for this schedule.

The limitations of the tools and techniques used in

the study will also reflect in the outcome of the study.

3. CHAPTER SCHEME

3.1 CHAPTER I

This chapter deals with the introduction of the

study, methodology, and objectives of the study,

limitations related to every scheme is discussed and

summarized.

3.2 CHAPTER II

This chapter deals with the review of literature

about this financial performance especially cash

management study.

3.3 CHAPTER III

This chapter presents the profile of the industry

and company for my study unit.

3.4 CHAPTER IV

This chapter explores the implications and findings

of the proposed work related with the analysis and

interpretation of this study from my observation.

3.5 CHAPTER V

This chapter concludes the thesis work by

summarizing the results, my suggestions for improvement

of my study unit and conclude my study with the chance

of future research.

CHAPTER - II1. REVIEW OF LITERATURE

This chapter reviews the different existing literature

of different scholars, the definition of cash

management, the appropriate cash management techniques,

the indications of cash management, profitability and

the relationship between cash management and

profitability

1.1 BAUMOL’S MODEL

The Baumol’s model of cash management provides a formal

approach for determining a firm’s optimum cash balance

under certainty. It considers cash management similar

to an inventory management problem. As such, the firm

attempts to minimize the sum of the cost of holding cash

(inventory of cash) and the cost of converting

marketable securities to cash.

The baumol’s model makes the following assumptions:

The firm is able to forecast its cash needs with

certainty.

The firm’s cash payments occur uniformly over a

period of time.

The opportunity cost of holding cash is known and

it does not change over time.

The firm will incur the firm sells securities and

starts with a converts securities to cash.

Baumol’s model for cash balance

Cost trade-off: Baumol’s model

1.2 THE MILLER-ORR MODEL

The limitation of the Baumol model is that it does not

allow the cash flows to fluctuate. Firms in practice do

not use their cash balance uniformly nor are they able

to predict do not use their cash inflows and outflows.

The Miller-Orr model overcomes this shortcoming and

allows for daily cash flow variation. It assumes that

net cash flows are normally distributed with a zero

value of mean and a standard deviation. The MO model

provides for two control limits-the upper control limit

and the lower control limit as well as a return point.

If the firm’s cash flows fluctuate randomly and hit the

upper limit, then it buys sufficient marketable

securities to come back to a normal level of cash

balance (the return point). Similarly, when the firm’s

cash flows wander and hit the lower limit, it sells

sufficient marketable securities to bring the cash

balance back to the normal level (the return point)

1.3 The Drive towards Efficiency,

Transparency, Standardization and

Integration

Fragmentation is a key driver of corporate

inefficiency. This has long been the case in the

movement of paper checks and related remittance

documents within the U.S. payments system, and the flow

of goods, trade-related documents and funds within the

broader global supply chain. As corporate treasurers

pursue end-to-end automation for treasury and supply-

chain activities, they understand that to achieve

straight-through processing — and the subsequent

optimization of working capital globally — they must

integrate the payment and information components of a

transaction.

Based on this drive for efficiency, three

interrelated trends are shaping North America’s cash

management landscape today. First, corporate treasurers

and their banks are driving the convergence towards

electronic payments to better integrate money and

information flows. Second, there is a parallel

convergence in international trade towards open account,

electronic payment and the automation of information

flows, as treasury pushes to integrate the physical and

financial supply chains. On both fronts, solutions are

emerging to digitize paper wherever it persists. Third,

as companies continue to expand globally — and

information and money flows follow — treasury is focused

on standardizing processes and strengthening internal

controls. The objective is to create transparency across

a range of business activities to manage risk and ensure

financial reporting integrity in compliance with

Sarbanes-Oxley.

1.4 CASH MANAGEMENT AND CAPITAL BUDGETING

PRACTICES

Virginia department of transportation Richmond,

Virginia.

Our review has found that Transportation has made

significant progress or completed most of the

recommendations made in our 2008 special report.

Complete implementation of these changes will take at

least four to five years.

Over the last two years, Transportation’s

management has started not only implementing

recommendations, but more importantly begun implementing

a change in the corporate and cultural structure of the

organization. The success of change with Transportation

will depend on whether a true structural change in

organization takes place. The measure of success will

require a substantial long-term commitment by management

to not only making the change, but to prevent

backsliding into Transportation’s old approaches.

In some ways, the accomplishments to date are the

easy part of change. The harder part lays ahead in

funding and implementing new systems, continuing to make

the changes to get closer to capital budgeting process,

and overcoming Transportation’s corporate and cultural

structure to improve project management. The success of

this effort is highly dependent on management guidance

and direction, and current management has demonstrated

their dedication towards this effort. If any management

change occurs, it is essential that they have the same

commitment; otherwise, progress may be negatively

impacted.

Transportation is restoring fiscal accountability

by implementing several budgetary and financial changes,

including adopting a debt management policy and model.

Additionally, they are establishing a methodology to

identify statewide transportation priorities and

developing project management policies.

Transportation has completed several budgetary and

financial changes, including attempts to make the Six-

Year Improvement Program a realistic management tool and

reduce the projects with a deficit status.

However, to ensure accurate matching on cash

inflows and outflows, Transportation must begin

estimating the cost of projects by fiscal year.

Transportation does not currently have sufficient

controls and processes in place to manage the rate at

which they spend funds.

For major projects, Transportation has begun

assigning a project management team that follows a

project from its inception to its completion. However,

it is still too early in the process to determine if the

policies put into place will provide Transportation with

better project management. However, the actions to date

are those considered best practices in both the private

and public for large organizations. Maintenance is still

an area of concern at Transportation. The growing

maintenance requirements and the limited ability to

budget on a needs-based approach increases the risk of

inappropriately applied funding. Once the asset

management system is fully implemented a needs-based

approach will be possible and Transportation will be

able identify and prioritize maintenance projects.

1.5 Ms. KATHERINE M. LANDMANN CONTROLLER

WASHINGTON UNIVERSITY IN ST. LOUIS CAMPUS.

This final report presents the results of our audit

of the cash management procedures used by Washington

University in St. Louis (University) to control the

funds paid by the Payment Management System (PMS) during

the three years ended June 30, 2000.

We found that the University did not have adequate

policies and procedures in place to monitor daily cash

balances and to precisely calculate interest earned on

positive daily cash balances. In monitoring the daily

cash balances, the University did not consider (1)

outstanding checks and (2) overhead costs as incurred.

In addition, the University did not use the appropriate

interest rates when calculating the interest remitted to

the Federal government.

We determined that the amount of excess interest

remitted by the University was comparable to the amount

of interest that should have been remitted if

appropriate procedures had been used. We believe that

this occurrence was a coincidence due to off setting

factors in the University’s calculation of the amount to

be remitted.

We are recommending that the University revise its

written policies and procedures to effectively monitor

the daily cash balance and to accurately compute the

Federal remittance. We made four specific

recommendations for improving the University’s cash

management procedures. The University concurred with two

and is still evaluating the third. However, they did not

accept our fourth recommendation. The University’s

response is included in its entirety as Appendix A.

1.6 CASH MANAGEMENT BY ENID BEVERLY JONES

It is a Financial Overview for School

Administrators is a succinct overview of public school

finance, presenting concepts of importance to both site-

based and central-office leaders. A pragmatic blend of

theoretical concepts and factual information provides

readers with an excellent synopsis of public school

finance.

The economics and politics of education are

discussed in the context of human capital and the role

of public education in the United States as an

investment in human capital. Author Enid Jones, who is

an associate professor of school finance at Fayetteville

State University, stresses the importance of investment

in human capital and its necessity for an educated,

productive workforce.

The chapter on adequacy and equity provides an

understanding of the two concepts so frequently debated

in school finance. As more states struggle with funding

issues, this subject matter is timely and useful.

Cash Management seems intended for use nationwide

with information on basic school business procedures,

including budgeting and financing of school facilities.

The use of lay terminology and relevant examples make

the book valuable both in graduate school classes on

educational leadership and in the hands of practicing

administrators.

(Cash Management: A Financial Overview for School

Administrators, by Enid Beverley Jones, Scarecrow Press,

Lanham, Md., 2001)

CHAPTER - III

1. COMPANY PROFILE

1. INTRODUCTION

GOKUL FABRICATORS is a South India’s leading manufactures and

supplies of window blinds, established in the year of 1996.

Our Strength is well appreciated satisfied customers in throughout

south India.

Quality Assurance

International Standard Quality and inspects before final delivery.

Neat, clear and spacious work station Quick and timely delivery of consignment, Dedicated staff for proper management.

Companies & Brands

Trade Mark –GOKULUX

Gokul Fabricators

Manufacturing –Window Blinds & Insect Screen System

Gokul Furnishings Pvt Ltd.

Home Furnishings Curtains & Fabrics.

Gokul Pest Control

Specialist: Termite Control

Shri Balalji Decors

Interior Decoration,Wall Paper, Sun Control Film & Floorings

1.1 VISION & MISSION

1.1.1 Vision:

Efficiently managed.

Dedicated to the entire customer fulfillment and

attractive share holders’ significance.

Innovative, capitalist and empowered team

continually creating value and attaining universal

bench mark.

Nurturing culture of caring, faith and incessant

learning while meeting the expectations of

employees, share holders, creditors, customers and

society.

1.1.2Mission:

The Company Vision will be realized by achieving a

series of multifaceted Mission objectives stated below:

Gokulux offer the after sales & services as follows

GOKUL FABRICATORSAll Type of Window Blinds, Insect System & Awnings.Repair & Services under Taking for Window Blinds, InsectSystem, Awnings

GOKUL FURNISHINGS PVT LTD

Home Furnishing Like-Curtains, Road, Sofa lining,Scalape Design work under taken.

SHRI BALAJI DECORShri Balaji Decors have been established ourselves asone of the leading interior decors in Chennai.

GOKUL PEST CONTROLGokul Pest Control is to be standard as a company whodeliver complete consumer happiness. We afford complete,complex and specialized services for termites,cockroaches, rats, silverfish, mice, rodents, ants etc.

1.2 PRODUCTS AND SERVICES

1.2.1 Venetian Blinds

25mm Aluminum Blinds are

available in wide range of Colors in Plain, Metallic and

perforated Horizontal Blinds with metal head rail and

bottom rail offer the durability combined with

flexibility of slats makes it easy to maintain and hence

a longer life.100 Colours Available.

1.2.2. Vertical Blinds

The vertical Blinds are

manufactured to the highest possible standards. Using

the latest components and fabrics. Gokul Vertical Blinds

concentrate on color and texture, Runner Spacer all

systems luxury, smooth and trouble free operation.500

Shades Available

1.2.3 Wooden / Chic Roll Ups

Wooden / Chic Roll ups in a range

of pleasing shades with a choice of Pine Cedar, Peach,

Maple, Teak and other wood stains. A glamorous

compliment for any room available in natural beauty of

exotic Bamboo

1.2.4 Roller Blinds

Vista Roller blinds offer

designers unique flexibility in windows treatments. It

comes standard with manual control system or an optional

motorized control which is concealed and easy to install

directly into the roller tube

Awnings

Vista awning has been designed after years of R&D

and is corrosion resistant to retain their original

appearance after several years of use. The awning come

in a galaxy of fabrics in most enchanting colour

combinations which brighten up the entire exterior

space, with minimum maintenance as the awning fabric is

treated for repellency and colour fastness. Vista

awnings also have the option for motorization. Awnings

available in different models

1.2.5 Insect Screens

Allows circulation of Fresh Air,

Abundant natural light, Washable, Easy to install,

Stretch-proof, durable. Accepted standard worldwide. 5

Colour Available, Velcro Type, Door Type, Roller Type

available

1.2.6 Curtain Rods

The Vista range of curtain rods are

a 21st Century concept for curtain installation, curtain

rods are made of a single piece and can be supplied in a

size from 3’ to 12’ length.

1.2.7 Curtains

Polyester, Jaccard, Netted and all

quality curtain cloth available. We are dealing in all

leading mills. Tailoring undertaken. Scalape model and

window curtain like French Pleat, Box Pleat, Loop Type

etc., for our professional tailoring unit makes it real

1.2.8 Window Film

Type of Films

Privacy Films

Reflective Type

Non Reflective Type

Safety Films

FOOL RINGS

1.2.9 Sofa

Sofa sets and cushion beds as per

your Design and expectation with 200 varieties of

American Velvet also undertaken Relining of Existing

Sofa Sets.

1.2.10 Wall Covering

Indian and imported widest range of

Wall Papers is available to suit your needs. Our

experienced and skilled workers fix Wall Papers with

precision.

Economical time saving and maintenance free, glossy,

matt, two tones satin and metallic finisher, can be

recoated by any number of times.

1.2 .11 Wall Scenery

Wall Scenery available in all price

ranges and different sizes.

1.2 .12 Pest Control

We are handling the followings:

Pre Constructions Anti Termite Treatment

Post Construction Anti Termite Treatment

Rodent Control

Disinfestations Services

Wood Borer Treatment

Mosquito Control

Garden Pest Control

1.2.13 Door Mat

1) Vinyl Looped Matting, Durable easy maintenance,

100% washable Hygienic & clear, fire resistant seven

shades is available.

2) Duroturf brand, Instant lawn and Cusion matt

available in different colors

COMPANY CONTACT DETAIL:

CORPORATE OFFICE: Gokul FabricatesNo: 27 First FloorsSecond Avenue Ashok NagarChennai-6000 83Ph No: 044-24896731/ 999431104

2. INDUSTRY PROFILE

Furniture - furnishings that make a room or other

area ready for occupancy; "they had too much furniture

for the small apartment"; "there was only one piece of

furniture in the room"

A piece of equipment necessary or useful for

comfort or convenience. Furnishings The furniture,

appliances, and other movable articles in a home or

other building. Furnishings Wearing apparel and

accessories.

Part of the furniture Informal someone or something

that is so long established in an environment as to be

accepted as an integral part of it has been here so long

that he is part of the furniture

2.1 Interior Services

Backed by a team of dexterous architects and

interior designers who are well versed with their domain

of space planning, interior designing, space planning,

interior architectural planning, customized furnishings

and executing feasible answers to the same, we are

counted as one of the leading firms engaged in

undertaking a spectrum of interior designing services

that include the following:

2.2 Interior Designing

The Company offer services for interior designing

that are done keeping in mind the taste and preferences

of our clients. The interior designing services offered

by them are executed within a committed time frame and

are offered as per the current trends in this sector.

They also ensure that they keep in mind the budget of

their clients and deliver them services as per their

requirement.

2.3 Interior Design Planning

Owing to their in-depth expertise in the interior

designing sector, they execute services such as interior

design planning that are meticulously planned and

exhibit the aesthetics of any abode. Known for

contemporary outlook, their services for interior design

planning are executed for residences, offices and other

commercial set ups.

Interior Architectural Planning and Designing

Interior architectural planning and designing can

be described as a practice concerned with designing a

space - walls, windows, doors, finishes, textures,

light, furnishings and furniture. A special team of

Interior designers is deployed to develop a serviceable,

safe, and aesthetically pleasing space for a client.

They undertake specialized interior designing

services that are characterized by reliability,

flexibility and time adherence and can be executed in

spaces that are commercial, industrial, or residential.

Backed by a team of Interior designers who work in close

proximity with architects and clients to thoroughly

evaluate the aesthetic tastes of the client and

translate the outlay of a space, as per the needs of the

occupants, and the style that best suits both. Also, we

ensure to leave no stone unturned in offering

unblemished services with excellent finish right from

the color coordination of the walls to electrical

fittings.

2.4 Turnkey Projects on Interior Designing

They provide complete turnkey projects on Interior

designing with all interior-designing facilities such as

architectural designing, interior designing, interior

decoration, maintenance and landscaping in a package or

individually. They use a combination of highly skilled

interior designers and sophisticated technology to turn

imaginative idea into real design in order to render

unbeatable Turnkey Projects.

2.5 Space Planning

Adopt at undertaking space planning services that

are recognized for their brilliant conceptualization and

the gradual build up towards flawless execution, they as

a firm; have earned a positive niche in the interior

designing industry.

In the modern world of space crunch, it is

extremely important that each centimeter of space is

meticulously brought into effective use. With their

dexterous project managers, they are able to offer space

planning services in an efficient manner.

2.6 False Ceilings

They undertake services pertaining to designing and

installing false ceilings as per the specifications of

their clients. False ceiling systems solve the problem

of dirty, unhygienic ceilings that are difficult, and

expensive to clean by providing a bright, durable and

hygienic surface, which is easily maintained. This

extremely practical false ceiling system is suitable for

any area requiring a fixed, non-porous, non-fibrous and

non-absorbent ceiling.

False Ceilings has varied advantages such as:

• Waterproof

• Termite Proof

• Fire Retardant

• Economical

• Maintenance free

Also, being non-porous and non-absorbent, false

ceilings can incorporate flush fitting lighting, air

vents and sprinklers that are easy to install &

available in various colors shades.

2.7 Wood Work

They are proficient in undertaking wood work as per

the specifications provided by their clients. With a

pool of talented designers, interior engineers and

carpenters they execute their services like wood

paneling, construction of cupboards, windows, doors and

much more, using premium quality termite free wood, that

is quality checked on various quality parameters.

2.8 Glass Work

The Company successfully undertake and execute

glass work services that bespeak of innovation,

archetypal designing and panache they lend to the

surroundings. With a well-knitted and expert team of

professionals who understand the intricacies involved in

the fragile work of glass, ensure that they put in hard

work, which results in splendid art forms.

They are instrumental in offering services

pertaining to the following:

• Stained glass

• Etched glass

• Artistic glass work in arches and widows

2.9 Acoustic Ceiling

As one of the leading names engaged in offering

acoustic ceiling services, they have been highly

recommended across the nation by their content clients

for their reliable and pioneering services.

Acoustic ceilings are popularly used as an instant

fix for unappealing rooms. Instead of an expensive

renovation of a dilapidated ceiling, a grid can be

installed in a few hours and acoustic ceiling tiles

fixed over them. Our interior designers and decorators

pay minute attention to the meticulous designing of the

work taken upon by them. Factors such as color

coordination, electric fittings and safety are always

stressed upon to render services that are ideal in every

aspect.

2.10 Modular Furniture

They undertake services pertaining to modular

furniture, which is a convenient answer to the

traditional space occupying furniture. Backed by their

team of adept designers and carpenters they are able to

design a range of modular furniture, which is craved

using excellent and termite free wood. Procured from

reliable sources across the nation their wood is quality

tested on various parameters, before giving it the shape

of modular furniture.

The advantages of modular furniture are as follows:

• Easily portable

• Contemporary designs

• Occupies less space

• Dimensionally accurate

• Excellent finishes available such as: Mahogany,

chocolate, dark brown

2.11 Customized Furniture

They are skilled in offering customized furniture,

which is designed as per the specifications offered by

the clients. Being adroit in following instructions and

coming up with designs that are extremely innovative and

less space occupying, our range stands up to the

international quality levels.

They undertake services at the premises of the

client or else at their own site, using wood that is

sourced from reliable sources across the nation. Offered

by them is a range of dining tables, sofa sets,

armchairs, relaxing chairs and much more.

Customized Furnishings

They offer splendid services in regard to

customized furnishings that entail drapery rods,

curtains and much more. Being elegantly color

coordinated our range scores high on graceful designing

and attractive hues.

They offer our assortment as per the specificationsprovided to them by the client.

SAMPLING AREA

Showing composition of respondents of Gokul Furnishings

Pvt Ltd

Companies(members)(Nos.) 9

GOKUL FABRICATES plants(Nos.) 3

Manpower Employed(Nos.) Approx. 460

CHAPTER – IV

1. DATA ANALYSIS AND INTERPRETATIONTABLE NO : 4. 1

1.1 SCHEDULE OF CHANGES IN WORKING CAPITAL YEAR 2010-11

Particulars 2009-10Rs

2010-11Rs

IncreaseRs

DecreaseRs

Current Assets

Debtors

Cash& bankbalances

Loans&Advances

CurrentLiabilities

Creditors

Net Workingcapital

21,26,500

4,35,930

1,40,900

17,25,300

9,78,030

23,22,660

2,48,083

8,60,200

6,80,200

27,50,743

1,96,160

--------

7,19,300

10,45,100

----------------

------------

1,87,847

-----------------

---------------

---------

Increase inworkingcapital

17,72,713 17,72,713

TOTAL 27,50,743

27,50,743 19,60,560 19,60,560

Source: Annual Report

INTERPRETATION

The working capital shows a Net increase in

working capital at Rs. 17,72,713 for the year

2010-11. The main contribution is Debtors, loans &

advances, Current Liability are increasing in trend,

cash & bank balance are decreased in trend.

TABLE NO: 4.2

1.2 FUND FLOW STATEMENT FOR THE YEAR 2010-11

Particulars Rs Rs

Sources of funds:

Fund from operation

Sales of investment

Total sources (A)

Application of funds:

Assets purchased

Repayment of long

term loan

Total application(B)

Increase in working

capital

20,26,00

4,00,0

24,26,000

65,384

17,72,713

INTERPRETATION

In this above table the fund flows

statement shows that funds are not utilized properly in

the year 2010-11. The company has to use the fund to

increase their funds in other securities like government

securities and other companies securities. The company

has to increase their source of the funds.

TABLE NO:4. 3

Particulars 2010-11Rs

2011-12Rs

IncreaseRs

DecreaseRs

CurrentAssets

Debtors

Cash& bankbalances

Loans&Advances

CurrentLiabilities

CurrentLiability

Net Workingcapital

Increase inWorking

23,22,660

2,48,083

8,60,200

6,80,200

27,50,743

33,32,341

14,607,00

29,31,964

24,80,920

7,90,500

60,83,084

26,83,881

16,20,720

8,61,960

1,10,300

33,32,341

Capital

TOTAL 60,83,084 60,83,084

43,04,601 43,04,601

Source: Annual Report.

INTERPRETATION

The working capital shows a net working capitalat Rs. 3332341 for the year 2011-12. The maincontributions are in cash & bank balances, loans&advances are increasing in trend, Debtors are decreasedin trend.

TABLE NO : 4.41.4 FUND FLOW STATEMENT FOR THE YEAR 2011-12

Particulars Rs RsSources of funds:

Fund from operation

Sales of investment

Total sources (A)

44,79,18

15,00,

59,79,183

Assets purchased

Tax paid

Repayment of loan

Increase in working

capital

9,76,078

11,78,38

28,49,15

26,46,842

33,32,341

INTERPRETATION

In this above table the fund flows statement shows

that funds are not utilized properly in the year 2011-

12. The company has to use the fund to increase their

funds in other securities like government securities and

other companies securities. The company has to increase

their source of the funds.

TABLE NO: 4. 5

Particulars2011-12

Rs2012-13

IncreaseRs

DecreaseRs

Current Assets

Debtors

Cash& bankbalances

Loans& Advances

CurrentLiabilities

CurrentLiability

Net Working capital

Increase inWorking Capital

14,60,700

29,31,964

24,80,920

7,90,500

60,83,084

25,07,146

25,89,646

47,36,084

24,10,000

12,87,340

84,48,390

11,28,946

18,04,120

70,920

4,96,840

25,07,146

TOTAL 84,48,390 84,48,390

30,03,986

INTERPRETATION

The working capital shows a net working capital at

Rs. 25,07,146 for the year 2012-13 The main

contributions are Debtors, cash & bank balances, loans&

advances are increasing in trend.

TABLE NO: 4.6

Fund from

operation

Long term loans

borrowed

Total sources (A)

Assets purchased

Repayment of long

term loan

Increase in

working capital

39,27,03

2,50,0

58,731

41,77,037

16,69,891

25,07,146

INTERPRETATION

other companies securities. The company has to increase

their source of the funds.

TABLE NO: 4. 7

Particulars2012-13

Rs2013-14

RsIncrease

RsDecrease

CurrentAssets

Debtors

Cash& bank

25,89,646

47,36,084

59,30,150

4,35,850

33,40,504

43,00,23

balances

Loans&Advances

CurrentLiabilities

Creditors

Net Workingcapital

Increase inWorkingCapital

24,10,000

12,87,340

84,48,390

30,55,070

64,10,000

12,72,540

1,15,03,460

40,00,000

14,800

30,55,070

TOTAL 1,15,03,460

1,15,03,460

73,55,304

INTERPRETATION

The working capital shows a net working capital

at Rs. 3055070 for the year 2013-14. The main

contributions are Debtors, loans& advances are

increasing in trend, cash & balance is decreased in

trend.

TABLE NO: 4.8

Fund from operation

Sales of fixed assets

Total sources (A)

Fixed assets purchased

Repayment of long term

Increase in working

capital

30,40,270

7,25,83

37,66,100

7,11,030

30,55,070

INTERPRETATION

other companies’ securities. The company has to increase

their source of the funds

TABLE NO : 4.91.9 CASH FLOW STATEMENT FOR THE YEAR 2009-2010

Cash Flow from Operating ActivitiesNet Income 20,07,130Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 2,71,000Changes in other accounts affecting operations(Increase)/decrease in accounts receivable 1,20,50,7

00(Increase)/decrease in inventories 4,35

,300 (Increase)/decrease in prepaid expenses 1,60

,000 Increase/(decrease) in accounts payable 70,93

,856Net cash provided by operating activities 20,07,

130Cash Flow from Investing ActivitiesCapital expenditures 10,00,000Proceeds from sales of equipment 1,20,50,7

00Proceeds from sales of investments 51,51,644Investments in subsidiary 10,00,000 Net cash provided by investing activities 25,50,000

Cash Flow from Financing ActivitiesPayments of long-term debt 21,26,500Proceeds from issuance of long-term debt 21,26,500

Dividends paid 30,754Purchase of treasury stock 2,40,500

Net cash provided by financing activities 2,96,600

Increase in Cash 4,35,930 Source: Annual ReportINTERPRETATION

From the above table cash flow statement shows

there is increase in cash of Rs.4,35930. The net income

amounted Rs.20,07,130 and the cash flow from investing

activities as Rs.25,50,000 in the year of 2009-2010 and

the cash flow from financing activities Rs.2,96,600.

TABLE NO: 4.10

1.10 CASH FLOW STATEMENT FOR THE YEAR 2010-11

Cash Flow from Operating ActivitiesNet Income 19,71,863Adjustments to reconcile net income to netcash provided by operating activities:Depreciation and amortization 2

,71,000Changes in other accounts affecting operations(Increase)/decrease in accounts receivable 1,35,30,9

00 (Increase)/decrease in inventories 5,

65,450 (Increase)/decrease in prepaid expenses 1,60,000Increase/(decrease) in accounts payable 87,53,5

74Net cash provided by operating activities 19,71,8

63Cash Flow from Investing ActivitiesCapital expenditures 10,00,0

00Proceeds from sales of equipment 1,35,30,9

00Proceeds from sales of investments 87,53,

574Investments in subsidiary 10,00,

000Net cash provided by investing activities 29,50,000Cash Flow from Financing ActivitiesPayments of long-term debt 23,22,

Proceeds from issuance of common stock 5,65

Dividends paid 1

Purchase of treasury stock 4,35,

Net cash provided by financing activities 2,72

,946 Decrease in Cash 1,87,847

INTERPRETATION

From the above table cash flow statement showsthere is decrease in cash of Rs.1,87,847. The net incomeamounted Rs.19,71,863 and the cash flow from investingactivities as Rs.29,50,000 in the year of 2010-2011 andthe cash flow from financing activities Rs.2,72,946.

TABLE NO: 4.11

Cash Flow from Operating ActivitiesNet Income 17,04,981Adjustments to reconcile net income to netcash provided by operating activities:Changes in other accounts affecting operations(Increase)/decrease in accounts receivable 1,44,45,7

60(Increase)/decrease in inventories 6,70,840

(Increase)/decrease in prepaid expenses 1,60,000

Increase/(decrease) in accounts payable 96,46,370 Net cash provided by operating activities 61,84,174Cash Flow from Investing ActivitiesCapital expenditures 10,00,000Proceeds from sales of equipment 11,60,0

00Proceeds from sales of investments 6,70,000Investments in subsidiary 10,00,

000Net cash provided by investing activities 61,84,

174Cash Flow from Financing ActivitiesPayments of long-term debt 14,607,00

Proceeds from issuance of common stock

70,840

Dividends paid 1

Purchase of treasury stock 5,65

,560 Increase in Cash 26,83,881

Source: Annual ReportINTERPRETATION

From the above table cash flow statement showsthere is increase in cash of Rs.26,83,881. The net

income amounted Rs.17,04,981 and the cash flow frominvesting activities as Rs.61,84,174 in the year of2011-12 and the cash flow from financing activitiesRs.2,90,560.

TABLE NO: 4. 12

40(Increase)/decrease in inventories 6,90,

200 (Increase)/decrease in prepaid expenses 1,60

.000Increase/(decrease) in accounts payable 1,35,96.5

91Net cash provided by operating activities 84,06,230Cash Flow from Investing ActivitiesCapital expenditures 10,00,000Proceeds from sales of equipment 1,90,84,9

40 Proceeds from sales of investments 1,46,46

Investments in subsidiary 10,00,000

Net cash provided by investing activities 2,50,000

Cash Flow from Financing ActivitiesPayments of long-term debt 2,58,96

Dividends paid 1

Purchase of treasury stock 6,70,8

,320 Increase in Cash 18,04,120 Source: Annual ReportINTERPRETATION

there is increase in cash of Rs.18,04,120. The net

income amounted Rs.30,40,270 and the cash flow from

investing activities as Rs.2,50,000 in the year of 2012-

13 and the cash flow from financing activities

Rs.3,10,320.

TABLE NO: 4.13

00(Increase)/decrease in inventories 6,75

,400(Increase)/decrease in prepaid expenses 1,60

Increase/(decrease) in accounts payable 1,54,77,120

Net cash provided by operating activities 1,14,465,00

Cash Flow from Investing ActivitiesCapital expenditures 10,00,00

0Proceeds from sales of equipment 15,45,0

00Proceeds from sales of investments 1,54,77,1

20Investments in subsidiary 10,00,0

00Net cash provided by investing activities 1,50

,000Cash Flow from Financing ActivitiesPayments of long-term debt 59,30,

,400Dividends paid 15,154

Purchase of treasury stock 6,90

,600Decrease in Cash 43,00,234 Source: Annual Report

INTERPRETATION

there is decrease in cash of Rs.43,00,234. The net

income amounted Rs.30,40,270 and the cash flow from

investing activities as Rs.1,50,000 in the year of 2013

– 2014 and the cash flow from financing activities

Rs.3,19,600.

2. RATIO ANAYSIS

2.1 CURRENT RATIO

Current ratio may be defined as the relationship between

current assets and current liabilities. This ratio is

known as working capital ratio. Is a measure of general

liquidity and is most widely used to make the analysis

of short term financial position.

Current AssetCURRENT RATIO = Current Liability

TABLE NO. 4.14

CURRENT RATIO

Year CurrentAssets

CurrentLiability

CurrentRatio

2009-10 31,38,630 17,25,300 1.822010-11 39,96,393 26,80,200 1.492011-12 65,44,424 37,90,500 1.732012-13 64,25,930 42,87,340 1.502013-14 52,61,800 32,72,540 1.61

INTERPRETATION

The current ratio is in the fluctuating trend.

The top most value of the ratio in the Year 2009-10 is

1.82% and lower value of ratio in the year 2010-11 is

1.49%.

CHART NO : 4.1

CURRENT RATIO

2.2 QUICK RATIO

Quick ratio also knows as acid test or liquid ratio

established a relationship between quick (or) liquid

liabilities. An asset is said to be liquid if it can be

converted into within a short period without loss of

value. The other liquid assets are bills receivables,

such debtors, marketable securities and temporary

investments.

Current Assets-(Stock)QUICK RATIO = Current Liabilities-(Bank Overdraft)

NO: 4.15

Year Quick Assets CurrentLiability Quick Ratio

2009-10 27,03,330 17,25,300 1.572010-11 34,30,943 26,80,200 1.282011-12 58,73,584 37,90,500 1.552012-13 57,35,730 42,87,340 1.332013-14 45,86,400 32,72,540 1.40

INTERPRETATION

The quick ratio is in the fluctuating trend. The

top most value of the ratio in the Year 2009-10 is 1.57

and lower value of ratio in the year 2010-11 is 1.28.

CHART NO: 4.2

QUICK RATIO

2.3 NET PROFIT RATIO

The Net Profit ratio is found out by dividing Net

Profit by Net Sales.

Net Profit Ratio = Net Profit/Net Sales

The financial figures for Net Profit Ratio shown

above which is used for the calculation of Net

Profit/Net Sales and the result are shown in the

following table.

Net ProfitNET PROFIT RATIO = × 100

Net Sales

TABLE NO: 4.16

NET PROFIT RATIO

Year Net Profit Net Sales Net ProfitRatio

2009-10 20,07,130 1,20,50,700 16.655

2010-11 19,71,863 1,35,30,900 14.573

2011-12 17,04,981 1,44,45,760 11.802

2012-13 22,22,056 1,90,85,940 11.642

2013-14 30,40,270 2,20,38,100 13.795Source: Annual Report

INTERPRETATION

The net profit ratio is in the increasing trend

except 2010-2011 is 11.64. The top most value of the

ratio in the year 2009-10 is 16.66% and lowest value of

ratio in the year 2012-13 is 11.64%

CHART NO: 4.3

NET PROFIT RATIO

2.4 INVENTORY TURNOVER RATIO

Inventory turnover ratio implication the number of times

the stock has been turn over during the period and

evaluates the efficiency with which a firm is able to

manage its inventory.

Cost of Goods (Sales-GrossProfit)

INVENTORY TURNOVER RATIO = Average Stock/Closing

TABLE NO : 4.17

INVENTORY TURNOVER RATIO

Year Cost ofGoods

AverageStock

InventoryTurnoverRatio

2009-10 76,07,056 3,37,900 22.5122010-11 95,98,424 5,00,375 19.1822011-12 1,05,42,980 6,18,145 17.0552012-13 1,46,27,231 6,80,520 21.494

2013-14 1,66,01,920 6,82,800 24.314Source: Annual Report

INTERPRETATION

The inventory turnover ratio is fluctuating trend.

The top most value of the inventory turnover ratio in

the year 2010-11 is 14.50% and lowest inventory turnover

ratio in the year 2011-12 is 17.06.

CHART NO: 4.4

INVENTORY TURNOVER RATIO

2.5 DEBTORS TURNOVER RATIO

Debtor’s turnover is found out by dividing sales

(since all sales are in credit) by year-end balance of

Debtors.

The financial figures for Sales and Debtors used

for the calculation of debtor’s turnover ratio and the

result are shown in the following table.

Net Credit SalesDEBTORS TURNOVER RATIO =

Debtors

TABLE NO : 4.18

DEBTORS TURNOVER RATIO

Year Credit Sales DebtorsDebtorsTurnoverRatio

2009-10 1,20,50,700 21,26,500 5.6672010-11 1,35,30,900 23,22,660 5.8252011-12 1,44,45,760 14,60,700 9.8892012-13 1,90,85,940 15,89,646 12.0062013-14 2,20,38,100 17,40,550 12.661

INTERPRETATION

Debtors turnover ratio results in increasing trend

which may ultimately results in maintaining sales.

Above shows the debtors turnover ratios were increasing

from 2009-14 from 5.67% to 12.66%.

CHART NO: 4.5

DEBTORS TURNOVER RATIO

2.6 DEBT-ASSET RATIO

Debt-Asset ratio is found out by dividing Total

debt by Assets.

The financial figures for Debt-Asset Ratio shown

above which is used for the calculation of Total

Debt/Assets and the result are shown in the following

table.

Total DebtDEBT-ASSET RATIO =

Total Asset

TABLE NO: 4.19

DEBT-ASSET RATIO

Year Total Debt Total Assets Debt-AssetRatio

2009-10 21,26,500 67,72,630 0.313

2010-11 23,22,660 97,59,393 0.237

2011-12 14,60,700 1,25,74,674 0.116

2012-13 15,89,646 1,53,33,570 0.103

2013-14 17,40,550 1,73,59,040 0.100Source: Annual Report

INTERPRETATION

The debt-asset ratio is fluctuating trend. The top

most value of the ratio in the year 2009-10 is 0.31% and

lowest value of ratio in the year 2013-14 is 0.10%

CHART NO: 4.6

DEBT-ASSET RATIO

2.7 FIXED ASSETS TURNOVER RATIO

Fixed Assets turnover ratio is found out by

dividing sales by fixed asset (Net Block)

The financial figures for Sales and Fixed Assets

used for the calculation of Fixed Assets turnover ratio

and the result are shown in the following table.

Sales FIXED TURNOVER RATIO =

Fixed Asset (Net Block)

TABLE NO : 4.20

FIXED ASSETS TURNOVER RATIO

Year Credit Sales Net BlockFixed AssetsTurnoverRatio

2009-10 1,20,50,700 36,34,000 3.3162010-11 1,35,30,900 57,63,000 2.3472011-12 1,44,45,760 60,30,250 2.395

2012-13 1,90,85,940 89,07,640 2.1422013-14 2,20,38,100 79,97,240 2.755

INTERPRETATION

The fixed assets turnover ratio is in the

increasing trend except in the year 2013-14 is 2.76%.

The top most value of the ratio in the year 2009-10 is

3.31% and lowest value of the ratio in the year 2012-13

is 2.14%.

CHART NO: 4.7

FIXED ASSET

TURNOVER RATIO

TABLE NO: 4.21

2.8 WORKING CAPITAL TURN OVER RATIO

Working Capital = Current Assets − Current Liabilities

YEAR SALES(Rupees)

WORKINGCAPITAL(Rupees)

RATIO( Times )

2009-10 12050700 1413330 8.5262010-11 12730900 3316193 3.8392011-12 14445760 6753924 2.1382012-13 19085940 9138590 2.0882013-14 22038100 12178860 1.809

INTERPRETATION

This ratio indicates whether working capital has

been effectively utilized in making sales or not.

From the table it is noted that working capital had

some fluctuation in the middle of the study period, yet

the company was able to increase it in the later years.

Hence the turnover indicates that company had

utilized its working capital efficiently and the company

can also try to work on this to get more effective

values.

CHART NO: 4.8

STATEMENT OF WORKING CAPITAL

TABLE NO : 4.22

2.9 CURRENT ASSETS TO FIXED ASSETS RATIO

INTERPRETATION

YEARCURRENTASSETS(Rupees)

FIXEDASSETS

(Rupees)

RATIO(Times)

2009-10 2260324 820000 2.756

2010-11 1950571 1040550 1.874

2011-12 2444821 1569766 1.557

2012-13 2672840 1488700 1.795

2013-14 2644950 1699500 1.556

The level of current assets can be measured by

using this current asset to fixed assets ratio.

From the table it is noted that the ratio is

between the average ratio and this indicates the company

had a moderate current asset policy throughout the study

period.

CHART NO: 4.9

CURRENT ASSETS TO FIXED ASSETRATIO

TABLE NO: 4.23

2.10 WORKING CAPITAL TO CURRENT ASSET RATIO

YEARWORKINGCAPITAL(Rupees)

CURRENTASSETS

(Rupees)

RATIO( Times )

2009-10 16,79,724 22,60,324 0.743

2010-11 13,50,037 19,50,571 0.692

2011-12 18,44,130 24,44,821 0.754

2012-13 18,85,740 26,72,840 0.705

2013-14 18,39,950 26,44,950 0.695 Source: Annual Report

INTERPRETATION

From the table working capital ratio registered a

fluctuating trend during the study period this is noted.

Hence it is found that the working capital ratio is

managed by using the cash & bank balance available in

the company.

CHART NO: 4.10

WORKING CAPITAL TO CURRENT ASSET RATIOS

TABLE NO: 4.24

3. TREND ANALYSIS

Y = a + bX

Where a = ∑Y ; b = ∑XY

n X∑ 2

Cash / Bank

YEAR X X2

Cash / Bank(Rs )Y

XY(Rs)

2009-10 -2 4 1319224 -26384482010-11 -1 1 384335 -3843352011-12 0 0 505632 02012-13 1 1 805350 8053502013-14 2 4 645250 1290500TOTAL 5 10 3659791 -926933

a = 3659791 / 5 = 731958.2

b = 926933 / 10 = 92693.3

Cash/Bank value in 2014-15 will be about 731958.2.

TABLE NO: 4.25

INVENTORIES

YEAR X X2

Inventories(Rs )Y

XY(Rs)

2009-10 -2 4 1,20,500 -2,41,0002010-11 -1 1 1,80,550 -1,80,5502011-12 0 0 2,01,560 02012-13 1 1 2,51,560 2,51,5602013-14 2 4 2,86,000 5,72,000TOTAL 5 10 10,40,170 4,02,010

a = 1040170 / 5

= 208034

b = 402010/10

= 10201.0

Inventories value in 2013-14 will be about 208034

4. CASH BUDGETING

A firm is well advised to hold adequate cash

balance but should avoid excessive balances. The firm

has, therefore, to assess its need for cash properly.

The cash budget is probably the most important tool in

cash management. It is device to help a firm to plan and

control the use of cash. It is a statement showing the

estimated cash inflows and cash outflows over the

planning horizon. In the other words, the net cash

position of a firm as it moves from one budgeting sub

period to another is highlighted by the cash budget.

CASH BUDGET

TABLE NO : 4. 26

PARTICULARS 2009-10 2010-11 2011-12 2012-13 2013-14a OPENING WORKING IN PROGRESS

240500 435300 565450 670840 690200

b Receipts 12050700

13530900

14445760

19085940

22038100

c Payments 2447874 1991868 2212059 2249119 2409160d NET CASH FLOW (b-c) 9602826 1153903

21223370

11683682

11962894

0e Cumulative NetCash Flow 2007130 4479193 1704981 8406230 1144650

f (a+e) 2247630 4914493 2270431 9077070 12136700

g Minimum Cash Balance Requirement

100000 100000 100000 100000 100000

SURPLUS RELATIONTO THE MINIMUMCASHBALANCE REQUIREMENT (F-G)

2147630 4814493 2170431 8977070 11136700

INTERPRETATION

In the above table it clearly determines the

availability of the cash balance in the subsequent year.

It will clearly determine the minimum cash balance

requirement of the concern. In the 2013-14 leads to

higher need of cash balance 11136700 lakhs. The cash

balance is highly required for the day- to day

transaction.

CHART NO : 4.11

CASH BUDGET

CHAPTER - V

1. FINDINGS, SUGGESTIONS AND CONCLUSIONS

1.1 FINDINGS

The net working capital shows every year has been

increase in the working capital.

The schedule of changes in working capital the

current assets are mainly in increasing trend and

liabilities are in decreasing trend.

The fund flow statement shows the funds were

properly used and the increasing in working

capital reflects on the day-to-day operation.

The fund flow statement every year the net working

capital had been increased.

The cash flow statement shows that the sources of

funds had been increased and the application of

funds has been decreased.

Current ratio analysis states there is a

fluctuating trend.

The trend analysis shows the inventories and

cash/bank value will be increased in subsequent

The cash budget early determines the availability

of cash balance in subsequent transaction.

Cash to current assets ratio has huge fluctuations

during the period.

Cash position in of the company has uneven trend.

Uneven trend in networking.

The company has its working capital ratio has been

above the standard norms during the period 2009-

Liquidity position of the company is satisfied.

Current assets are not properly utilized by the

concern towards the turnover.

Working capital turnover ratio in the year 2009-

2010 better when compare to the previous year.

The company has spent huge expenses.

1.2 SUGGESTIONS

The cash position of the company has not been

properly maintained. So the company has to make an

effort to reduce the expenses and also cash to

current assets ratio.

Company can utilize their assets properly.

Modernized equipments can purchase.

From current ratio, overall ratio was above the

accepted norms of 0.5. So the company has to reduce

the overall ratio avoid the unnecessary cash kept

in ideal.

Company can properly maintain their debtors to

sales turnover ratio.

A Working capital ratio has been maintained below

the norms.

A management may take necessary steps to employee

more members of staff considering the burden of

work load.

Advertisement publicity should be given so as to

make awareness to the public.

The company must motivate the respective employees

to get best efforts out of them.

The company has to raise the long term investment

and utilize the current assets.

1.3 CONCLUSION

The study is conducted at GOKUL FABRICATES, Chennai

with the title of a study on Cash management. This study

was conducted mainly with help of secondary data

obtained from the unit.

The company should use the minimum investment in

inventory to organize it profitability. Whether the

company may invest large size of inventory to the

concern. The efficient and production levels are

decreased. So the concern should maintain the maximum

investment in inventory. The company able to achieve the

Cash management objectives in proper way. May be any

researcher will do their research work in the field for

over all financial performance (or) particularly working

capital management in future.

BIBLIOGRAPHY

NO TITLE OF THE BOOK AUTHORPUBLICATION

1 FinancialManagement

M.Y. Khan&P.K. Jain

McGraw HillPublishing

(2001)

P.V. Kuldarni HimalayaPublishing

House(2001)

3 Pinciples ofManagementAccounting

S.N. Maheswari Sultan Chand(2002)

I.M. Pandey VikasPublishingHouse(2003)

5 ResearchMethodology

C.R. Kothari WishwaPrakashan(1999)

WEBSITE:

www.gokulfabricates.in

www.abb.in

www.ge.in

www.siemens.org

Annual Report,Gokul Fabricates,Chennai.

Acknowledgement

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