SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN INTERNATIONAL BUSINESS“ANALYSIS OF WORKING CAPITAL FOR DHARAMPAL SATYAPAL LTD.” SUBMITTED TO Ankit Goel ROLL NO. C-07 SUBMITTED BY MBA-IB Col. Mohan AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA AMITY UNIVERSITY UTTAR PRADESH COMPANY CERTIFICATE TO WHOM IT MAY CONCERN This is to certify that Ankit Goel , a student of Amity International Business School, Noida, undertook a project on “Working Capital Analysis” at Dharampal Satyapal Ltd. from 1st May’09 to 30th June’09 . Mr. Ankit Goel has successfully completed the project under the guidance of Mr. Neeraj Goel. He is a sincere and hard-working student with pleasant manners. We wish all success in his future endeavors. Signature with date (Name) (Designation) (Company Name) CERTIFICATE OF ORIGIN This is to certify that Mr. Ankit Goel, a student of Post Graduate Degree in MBA-IB (2008-2010), Amity International Business School, Noida has worked in the Dharampal Satyapal Ltd. under the able guidance and supervision of Mr.Neeraj Goel, (Manager finance), Company Birla Power Ltd. The period for which he was on training was for 8 weeks, starting from 1st May’09 to 30th June’09 I am thankful to my faculty guide Col. Signatur (Student) TABLE OF CONTENTS CHAPTER NO. This Summer Internship report has the requisite standard for the partial fulfillment the Post Graduate Degree in International Business. for the constant support and help in the successful completion of my project.0Evaluation of financial position 4.-1. Also. without which the present work would not have been possible. (Company) Birla Power Ltd. for his continued guidance and invaluable encouragement.. Signature ( FACULTY GUIDE ) Signature ( Student ) ACKNOWLEDGEMENT I express my sincere gratitude to my industry guide Mr. CH.1comparative studies . knowledge no part of this report has been reproduced from any other report and the contents are based on original research.Mohan of my institute.1Industry Profile SUBJECT Executive Summary Ch.-4.0 2. (Manager Finance). for his able guidance.4Scope of study 2. continuous support and cooperation throughout my project.0 Research Methodology Ch.3Schedule 2.1Primary Objectives 2. Company Profile 3.5Limitations Ch. To the best of our.2Methodology 2.-3.-2.Neeraj Goel. I would also like to thank the entire team of Dharamal Satyapal Ltd. 0 Findings & Analysis & Observations Ch. if it fails to meet its current obligations.Ch. Current assets are referred to as assets.It suggests the extent to which working capital needs may be financed by permanent source of fund. .-5. Company should shift from aggressive policy to conservative current assets policy.0 Sypnosis of project EXECUTIVE SUMMARY The management of current assets deals with determination. It implies that company follows matching principle for raising funds.0 Critical Review of Literature Ch.7. which means that company is maintaining lower ratio of current assets to fixed assets. The basic learning objective behind the study was Computation of Working Capital Management Operating Cycle of the firm Financial plan estimated for 2007-2008 and projected for 2008-2009 Working capital credit limits Ratio analysis On the basis of above calculations following conclusions can be made.-6.-11.0 Case Study Ch.1Tables Ch.0Recommendations Ch. as idle investment in current assets and are non-productive and so they can earn nothing. on the other hand inadequate amount of working capital can threaten solvency of the firm.-9.-10. Company should reduce the holiday period else the company will have to pay high carrying cost.0Bibliography Ch.It indicates the liquidity position of the firm and 2. Current assets should be sufficiently in excess of current liabilities to constitute a margin or buffer for maturing obligation within the ordinary cycle of business. Thus the working capital is a qualitative concept 1. control and monitoring the level of all the individual current assets. So to overcome the above problems following are the recommendations —Increase the proportion of current assets over fixed assets to come to proper proportion of current assets and fixed assets as per the basic norms and guidelines.-8.0 Annexture 9. maintenance. Excessive investments in current assets should be avoided. because it impairs firm’s profitability.Birla power ltd. Birla power solutions ltd has high collection peri0od which shows that money has been unnecessarily blocked with the debtors. has both long term as well as short term sources for current asset financing. which can normally be converted into cash within one year therefore investment in current assets should be just adequate no more no less” to the needs of the business. Right now company is following aggressive policy. Hindustan Unilever Ltd. ITC and Kothari Products with the help of following ratiosLiquidity ratios Solvency/Leveraging ratios Coverage ratios Activity/turnover ratios Profitability ratios Investors ratios . sales and current assets of Birla Power METHODOLOGY The methodology to be adopted for the project is explained as under: 1. Iv) It will also include the ratio analysis of the financial statement so that the profitability and liquidity trade off can be analyzed. Iii ) Study of C M A form and to prepare for the current year.The project will focus on the study of overall working capital management at the organizations. 2. 3.RESEARCH METHODOLOGY PROJECT OBJECTIVE The project is aimed at evaluating the financial status of Dharampal Satyapal Ltd and then doing the comparative analysis with its competitors Studying the working capital management at Dharampal Satyapal Ltd.e. for which the following study and analysis will be undertaken: i)This project is aimed to estimate the operating plan for the year 2007-2008 ii ) This will also include the calculations and analysis of the operating cycle for the company..The initial step of the project was studying about the company and then evaluating the financial position of the company on the basis of ratio analysis. .Comparing the firm’s financial position with respect to its competitors i. and estimating the working capital requirements for 2007-2008 and then forecasting for 2008-2009 To find out if there is any relationship between the working capital. due to non-availability of complete information. Powell Industries. SCOPE OF THE STUDY Studying working capital management of the Birla Power ltd and benchmarking it with 3 of its competitors. These limitations cannot be removed and have to be accepted as permanent constraints in implementing the project. by me are: 1.Generalizations and calculated assumptions had to be made in some areas while analyzing the financial statements. ratios etc. . sales and current assets.The segment wise and product wise study of the various product segments and units of the company have been excluded from the scope of the project due to data and time constraints. 2. Under this stage the operating plan will be prepared and the study and analysis of the C M A form will be done. This will include the estimation of working capital requirement for 2007-2008.SCHEDULE The complete project will be for duration of 8 weeks. LIMITATIONS In spite of my continued efforts to make the project as accurate and wide in scope as possible. STAGE 2 (APPROX 6 WEEKS) The study of the overall working capital management of the company will be the first stage. certain limitations are becoming evident while implementing the project. The project has been divided into 2 stages with approximate time period allotted to each stage. which have been identified. Beacon Power Corp. forecasting for 2008-2009 and regression analysis and T test for finding out the relationship between working capital. Some limitations. Both the stages along with their approximate timelines are as follows: STAGE 1 (APPROX 2 WEEKS) The study of company’s financial position by doing ratio analysis of the financial statement so that the profitability and liquidity condition of the organization can be studied closely and then comparing it with the financial statements of Coleman Cable Inc. The hotel is currently being revamped and renovated and will soon emerge as an International standard destination with Five Star Hotel. Following close behind is a first-of-its kind Steel sheets plant coming up soon in the North East to produ cold rolle sheets. Efficient capital structure. Meetha Mazaa is revitalizing. Rubber thread. Beginning its journey with Tobacco. Manali and Goa with plans to set up hotels & resorts. Corbett Park. The Group acquired the Airport Hotel at Kolkata. In the Mouth Freshener Category. The Group has consolidated its position into diversified sectors like FMCG. ‘Catch’ Salt & Pepper tabletop dispensers hold their supremacy as India’s first rotatory table top dispensers. land has been acquired in cities like Udaipur. Catch Spices excessively continues to be connoisseurs’ favorites. DS Group has entered the fast growing . an eco friendly revolutionary packaging technology. the group is all set to emerge as one of the leading players in the hospitality segment. Cement and other businesses. Rajnigandha. was launched in India in association with Canpac – a leading Switzerland based packaging major. Its undeterred pursuit for ‘Quality & Innovation’ has led the Company to progress on a path of growth. operational discipline and a widespread distribution network.the Indian Mouth freshener”. Rajnigandha rules the market as the world’s largest selling premium pan masala. DS Group successfully ventured into the arena of Foods & Beverages. DS Group forayed into this segment with “The Manu Maharani’ at Nainital. The five star hotel building projects have also commenced in Guwahati and Jaipur. alluring the consumers with a wide range of beverages. and enabled the organization to deliver continued growth in all areas of operation. Packaging.COMPANY PROFILE Dharampal Satyapal Group (DS Group) is more than Rs. A heat resistant latex Rubber thread plant has been set up at Agartala to produce international quality rubber threads. DS Canpac Ltd. a budget hotel & large Convention Centre. which is committed towards high quality products & credited with several innovations over last seven decades. Hospitality. in addition to a sprawling Commercial area. non-tobacco. Reinforcing the emphasis on the quality at all levels. Further pursuing its quest for diversification. CRCA and galvanized steel sheets. the premium mouth freshener brand. ‘Pass Pass’ has created a new product category all-together as India’s first ever branded ‘all natural’ non supari assorted mouth freshener. Recognizing the immense potential in the Hospitality Segment. have together attributed to enhance ‘Brand DS’. has introduced a mild new flavour. Latex rubber threads are made from natural rubber applying the most sophisticated European technology. In addition to the above ventures. and ready-to-eat snacks under the brand ‘Catch’. DS Group has launched colossal projects in the Packaging sector.. Taking forward the Indian tradition of eating and serving mouth fresheners after meals. With a boom in tourism sector. in 2001. The latest products to be introduced under catch brand are Catch Jal Jeera & Catch Nibu Pani. Mussorie. Shimla. cutting edge technology. 1400 crores diversified conglomerate. A state-of-the-art plant at Noida offers packaging solutions to other FMCG marketers as well as exporters of food products. The group has also commissioned an ultra modern Flexible Packaging Unit in Bonda. “Meetha Mazaa . In line with its vision of diversification. While ‘Catch’ Natural Spring Water and its variants continue getting great response from consumers. spices. The sagacity to weave its business around consumer needs has conferred DS Group with a distinct value. Cement Industry. The capacity of the upcoming plant will be approximately 1 million tons Per Annum and will have a captive power plant based on coal. As a significant step in Infrastructure Sector. Kullu. by the Group. DS Group boasts of World Class Facilities spread across the length and breadth of the country. to execute its manufacturing processes with full adherence to international standards of quality. The Project is located at the Khliehriat sub division of District Jaintia Hills in Meghalaya. Assam and Tripura. Every stage of manufacturing is monitored with utmost care and attention. . The group has manufacturing units in Noida. Delhi. based on coal. This will be one of the largest investments on new projects. DS Group has signed a MOA with state Govt. Baroitwala in HP. of Meghalaya to set up a 240 MW Thermal Power Plant. @..@@J. -. - @¾¾nf° f¾°¯°°f°f¾°¾¾n -f °f ½©n°#J°. -f© ¾f ¾°nf°f °¾°½f¾f°¯f°°¾ J¾f¾nn¾¾°¾°f¾ °ff%-f¯%%¾°f°%%.f# °# . °f¾¾nn¾¾n¯½½©n°f°n.f½f°f¾¾#fff¯½fff½f ¯¾ . ¯½f°-f¯% . @. @- @¾¾nf. -f© %. ° f¾°9¾ff°.f°f°f°n% . % % ¯ °°f°f¾°¾¾n -ff¾°ff¯½fff½f °f f°nf°¾½¾°. ¯½f°f9 @½ nf¾°f°°f¾¾ ¾f°¯¾ .f# °# . @¾¯¯°°¾½½f¾¾¾f°f½ff¯°9¾ff °°°f°f¾°¾¾ @ ¾ °°½f¾½f¾ ° ½n¯f°½f°n°°¾f f¾°°f¾fn °f°f %. 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