A

Summer Project Report

On

Project Finance for Study An Assessment of Lending

To Jewellery Manufacturing Ltd.
In the partial fulfillment of the Degree of
Master of Management Studies under the University of Mumbai
By

Miss Asiya Shaikh [Roll No: B-32]

Under the Guidance of

Prof. Harnesh Makhija.

(Internal Guide, AMSIMR)

PROF. M.K. VERMA

(EXTERNAL GUIDE)

Aruna Manharlal Shah Institute of Management

and Research
Ghatkopar [W], Mumbai-86.
2012-13
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 EXECUTIVE SUMMARY.

This Project report gives us knowledge about the manufacturing unit works. While studying
and preparation of working of the unit and project report I have came across the technical,
market, financial Assessment of the unit. While Preparation of Credit Monitoring Analysis of
unit I have came across how the unit is forecasting there sales Net profit &control over current
assests &current liabilities. The CMA gives the position of Assessment of units Working Capital
based on the requirement in future from time to time .

While assessing CMA I have came across that the working capital limit is assess on the basis of
units sales turnover, stock-in-trade, debtors &creditors.

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 CERTIFICATE

This is to certify that Miss Asiya Shaikh, student of AMSIMR 1 st year, Division-
B, Roll no.32, has completed her project work entitled Project finance for study
an assessment of lending to jewellery manufacturing Ltd .As a participation in
fulfillment of the Masters of Management Studies as per the syllabus of AMSIMR.
(2011-2012). I further clarify that; the work has been carried out under my
guidance.

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ACKNOWLEDGEMENT
The success of project is not with any one person, Its depends upon the encouragement,
guidelines and proficiency of many other. I have this chance to express my humble gratitude and
regards to the people who have been part in the successful completion of this project.

I would like to thank my Institute, Aruna Manharlal Shah Institute of Management and
Research, for giving me such opportunity to show my work and talent. I would also like to give
many thanks to my internal mentor, who was there all the way to support and encourage me,
Prof. Harnesh Makhija

I would also like to give a greatest appreciation &regards towards Mr M K

Verma(Director)and Mr .Dilip Mamdapur (Business Associate) for giving me opportunity to
get exposed to the corporate world and working environment.

Their guidance and motivation inspired me to perform my best. In spite of their busy schedule
they spend their precious time with me and also gave exposure to practical world. This
experience will be helpful for me in all my future endeavors.

I would also express my sincere gratitude towards my colleagues and other staff members of
MONEYY MAXX FINANCE for their help and co-operation.

Asiya Shaikh.

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 DECLARATION

I, ASIYA SHAIKH a student of MMS-II hereby declare that the project work presented in this
report is my contribution has been carried out under the supervision of PROF.HARNESH
MAKHIJA (faculty) in Aruna Manaharlal Shah Institute of management and research, Mumbai.

The information given in this Document are based on my personal studies and observations
which I made during my training program and it cannot be used as a proof for any further studies
or Documents by the company or any other person.

The objective of training undertaken is to get practical knowledge in corporate field, which
further enhance the skill and best utilization of my Talent in the corporate .

All information given in this document is brief and best up-to my knowledge.

Asiya Shaikh

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 TABLE OF CONTENTS

Sr.No Chapter 1:
A Introduction
B Objectives
C Research Methodology

Chapter 2:
Industry Introduction

Chapter 3: About M/S Shree Fine Jewels Pvt Ltd

A Back ground
B Organisation Structure
C Technical Assessment
D Marketing Assessment
E Financial Assessment

F Special Features of M/S Shree Fine Jewels Pvt Ltd

Chapter 4:
Data Analysis

Chapter 5:
A Conclusion
B Findings
C Recommendation

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 CHAPTER NO :1
A.Introduction:
Gems and Jewellery one of the major sector were indigenous as well as exports market demands
are always exists. Time &ages jewellery were taken as one of the most prominent decorative
item in ladies in any part of the world .India with his traditional & culture background
jewelleries pay an important role .For any social event gold is treated as an auspicious metal.
The demand for gold &gold related jewellery are exist even today .With the Modernization
&Liberalization of economy & upcoming of strong middle class society .The demand for
jewellery has increased .M/s Shree Fine trade Jewellery one of the company who caters to the
needs of middle class upper &lower middle class society &this has a wide range of markets to be
tabbed.

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B. Objective of the study:
The objective of undertaking project one M/s Shree Fine Jewels was to learn &observe the
following factor:

To analyzed the balance sheet of the company.

To access the viability of a company.
Management &Working of the company
Marketing of the Product &Strategy apply for increasing sales.
To Approach the banker for financial need of the company.
Technical Financial Background of the Promoters.
Increase in the Exports sales if the bank provides facility the promoter can increase their
sales to export.

C. RESEARCH METHODOLOGY:

Primary Data:
The primary data which includes company profile, industry scenario has been obtained

from M/s Shree Fine Jewels Pvt. Ltd.

Secondary data:
The sources of secondary data were a combination of information from the internet ,

books, articles etc.

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Industry Introduction:

Page | 9
The Indian jewellery market is dominated by gold, which consists of almost 80 per cent of the
market share, followed by fabricated studded jewellery including diamond and gemstone studded
jewellery.

India is one of the premier locations for diamond manufacturing. The prospect of being able to
open a truly world class diamond mine in India in the next few years and take India into the top
10 diamond producing regions in the world is a strong possibility. Further, India has also
emerged as the largest cutting and polishing industry for diamond in the world.

Industry Structure

The gems and jewellery industry in 2011-12 has gone up by about 5 per cent at Rs 2,000 billion
(US$ 36.10 billion) against Rs 1,950 billion (US$ 35.20 billion) in 2010-11.

The sector accounted for India's 14 per cent of the total merchandise exports. On the contrary,
the imports of raw materials for making gems and jewellery stood at 32 per cent at Rs 721.60
billion (US$ 35.20 billion) in 2011-12 over Rs 545.64 billion (US$ 9.84 billion) in 2010-11.

The jewellery industry in India is estimated at Rs 1,500 billion (US$ 27.07 billion), of which
only 5 per cent is organized, thus creating opportunity for the foreign players to enter the Indian
market.

Gold

Gold has always been the jewellers' favourite metal given its intrinsic luster and ease of
fabrication. Gold jewellery enjoys the leading position in most markets across the world, and in
many ways forms the backbone of the precious jewellery industry. Given the fact that gold is
also one of the traded metals, gold jewellery consumption is also impacted by gold price
movements.

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India is one of the largest exporters of gems and jewelery. India is the diamond polishing capital
of the world. The Indian Gems & Jewelery industry is highly fragmented with a large number of
domestic private sector companies.

A large portion of the market is in the unorganized sector .

India is gaining prominence as an international sourcing destination for high quality
designer jewelery .

India is the fastest-growing jewelery market in the world.

Branded jewelery likely to be the fastest-growing segment in domestic sales.

Expected to grow at 40% p.a. to $2.2 billion by 2010.
Exports expected to grow from $15.5 billion in 2005 to over $25 billion by 2010.

India has several well recognized strengths which have made it a significant force in the global
Gems and Jewelery business.

Highly skilled, yet low-cost labor.

Established manufacturing excellence in jewelery and diamond polishing.
India is the most technologically advanced diamond cutting center in the world.
Opportunity to address one of the worlds largest and fastest-growing Gems and Jewelery
markets.
Opportunity to leverage Indias strengths to address the global market

The Gems & Jewellery a number of institutes that provide training in all aspects of manufacture
and design in Mumbai, Delhi, Surat and Jaipur. These training programs are being conducted to
ensure that the Indian industry achieves the highest levels of technical excellence.

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INTRODUCTION TO THE COMPANY
M/s Shree Fine Jewels Pvt Ltd.

Page | 12
Company Profile:
M/s Fine Trading Company is a Manufacturing Company engaged in making Jewellery from
Gold & Stones. Manufacturing all type of Diamond Jewellery like Diamond Necklace, Diamond
pendant and also all types of Gold Jewellery like Gold Necklace, Gold Pendant, etc. They have
launched their own Trademark & Designing Section for manufacturing.

It started as proprietorship firm later from 16th May 2011 this Firm was reconstituted into Pvt
Ltd Co named as M/s Shree Fine Jewels Pvt Ltd, with an intention of carrying out the
business more smoothly and efficiently.

Shree Fine Jewels also takes large corporate orders for manufacturing of Diamond &gold
jewellery and they can negotiate upon prices for large orders. Shree Fine Jewels are engaged in
manufacturing of Diamond & gold Jewellery since many years,

Shree Fine Jewels have wide experience in manufacturing and it also maintain a
good quality. SFJPL, Mumbai listed under Jewellery Manufacturers, Gold
Coin Dealers, Diamond Jewellery Manufacturers.

In the past 4 years the company has achieved a remarkable increase in the sales and the overall
profitability, which is evident from the audited accounts and the CMA produced before the bank.

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The company has following strategy which provides competitive edge to the company:-

o Wide and exclusive variety of design

o Ongoing research and innovations in design process and surface ornamentation

o Make stylish fine jewellery affordable to all.

o Concept Jewellery

Shree Fine Jewels Private Ltd is a well reputed fine jewelry company. It manufactures high
quality fine jewelry products including CZ (Cubic Zirconia) studded Jewelry.

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 MANAGEMENT &SHAREHOLDING PATTERNS:
The directors of the company are as under:

Objectives of the company

To Manufacture various Branded Jewellery since He has spent almost a decade in
Manufacturing of Designer Branded Jewellery and marketing.

Vision of the company:

The company is a growing concern and has added many patents of his range
of jewellery .The demand for CZ is increasing with the new generation and
there is a rise in demand at all metropolitan centers were the company

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 supplies through his own dealers. The existing companies is a pvt ltd and the
vision of the company is to registered the same as limited company to create
goodwill in the market.

Profile of the main promoters:

Company has two Promoter cum Director namely shree Gajendra B. Bhandari and Smt
Monica G. Bhandari.

Shree Gajendra B. Bhandari, who is Chartered Accountant, is working in the field of

Branded Jewellery since last one decade.

He is tied up various Jewellery Federation Groups, further he is attending and Organizing

various Trade Fares, Seminars related to Gems and Jewellery.

He has wide knowledge of Manufacturing various Branded Jewellery since He has spent
almost a decade in Manufacturing of Designer Branded Jewellery.

The Directors have an excellent experience of more than a decade in this industry. Their

expertise and efforts is making the company achieve new heights.

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 OVERALL ASSESSMENT:

The company is a growing concern and has added many patents of his range of jewellerys
.The demand for CZ is increasing with the new generation and there is a rise in demand at
all metropolitan centers were the company supplies through his own dealers.

The Firm approached Federal Bank for Cash Credit Facility for growth of Business . The main
objective was to seek Working Capital Limit against Stock & Book Debts i.e Sundry Debtors .

The market requires such types of jewellerys thus the company is desiring to increase the bank
facilities from Rs 28 lacs to 68 lacs .

Accordingly visualizing the growth potential the company has purchased new premises of
1500sqft to install modern machines and increase the labour force for which the company wants
additional working capital ,cash credit limit of rs:68 lacs .
These will be a major increase from the existing limit of rs:28 lacs to rs:68 lacs .
The increased amount of Rs 40 lacs will be utilized for purchasing goods from SBI against bank
guarantee.

Thus the overall assessment is that the company demand is geniuning its requires and increase of
40 lacs to grow the business.

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 Organization Structure

Sr. No. Particulars No. Of Workers Salary/Wages

1 Marketing 2 7000 each+incentives
2 Administration 1 8000 each
3 HR 1 8000 each
3 Production Manager 2 20000 each
4 Peon 1 5000
5 Workers 9 Wages as per piece per
day
(Working hours is 8 hours from 10 am to 6 pm)

The whole Manufacturing Process from raw material to finished

goods takes 10 days.

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Details of Machineries in the Unit -
Sr. No. Particulars Cost
1 2 in 1 Wax Injector 35000
2 3 in 1 Casting Machine 85000
3 Burn out Machine 45000
4 Electroplating 20000
5 Melter 15000
6 Polish Machine 55000
7 Rolling Machine 35000
8 Setting Tank with Hand Wash 40000
9 Steam Machine(20 litres) 45000
10 Water Jets 40000
11 Vacuum Cleaners 7300
12 Hand Driers 4195
13 Weighing Machines 27000
14 Rolling Mill 45000

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TECHNICAL ASSESSMENT.
Implementation Schedule

Desig Model Die

Filing
Casting
ning Making Making
Qualit
y
Check Elect
Setti Pre
ing & ropla Filing ng Polish
Packi ting
ng

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PRODUCT PROCESS:
The designs are made on the basis of computerized. Following are the process of designing the
product.

Firstly they prepare the model.

Dyeing process .
Casting process.
Filing process.
Polishing process.
Stone, diamond
Repolishing.
Electro-plating process.
Mina.
Rhodium.

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 Designing
In this process, specialized designers design products as per specification

i.e. as per weight, size, design, style etc.

Model Making Hand Made & CAD CAM)

In this process, the paper design is converted into physical form( in

silver). Traditionally, it use to design it manually. Now new technology

such as CAD/CAM is used in this process.

Die Making

After silver model is ready, we make die of rubber (Specialized Silicon

Rubber) and make a die of that model.

Casting

After cutting the die, we get wax model of the same design which was in

silver then the powder is poured on the design and is kept in Burnout

Furnace.

Filing
In this process skilled filers file the hard surface of the product.

Pre polished
Then the products are pre polished.

Setting
In this process, we set & attach CZ, Semi precious &,Precious stone.

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 Final Polish
This process gives final polish and mirror polish to the product

Electroplating
In this Process, plating is made on the product such as 24 carat Gold and

Rhodium.

Quality Checking and Packing

This is the final phase of product where quality and quantity is checked.

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 MARKET ASSESSMENT

1: Product:
Company engaged in manufacturing of Designer Branded Jewellery.

Main Products of Company consist of

Ladies Rings

Gents Rings

Ladies Ear Rings

Pendant

Designer Set

All this products are made of CZ Diamonds and it has less than 1

Gm. average weight.

2: Pricing
Pricing of the product is ranging from minimum 2000 &maximum 30000 in some of the

product the pricing of the product is more than the amount mention herein above.

3:PROMOTION:
The company has website www.juliejuhi.com.They have also attractive printed catalogue

&also having team of marketing executives. who are selling the product in the market as well

as individual and also collecting the data in respect of various types of products to be required

in the market

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4: Places:
The marketing executives of the company are contacting the various jewellery showrooms and
supplying the product as per there demands the such showrooms are located at the various
locations.

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Demand Outlook:

The gems and jewellery industry occupies an important position in the Indian economy. It is one
of the fastest growing industries in the country. Gems and Jewellery has been consumed by
Indians for ages for both its aesthetic as well as investment value. The demand for Fine jewellery
is ever increasing.

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The rising prices of gold has not affected the demand but has rather led to a situation of demand
explosion as, there are three categories of consumers belonging to lower income level, middle
income level and high income level. With an increase in the disposable income levels, the
preference of lower income level consumer has been shifted to gold jewellery. Similarly, the
preference of middle income and high income level consumers has shifted from gold jewellery to
diamond jewellery.

The rising price of gold has led to the trend of consumers opting for light weight jewellery. Thus
there is a remarkable increase in the demand for fine jewellery.

Supply Outlook:

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The supply trends depend upon the demand because due to change in outlook of society young
generations are always looking for new designs .Specially in case of Garments & Jewelries these
trends can be observed. Therefore the demand for latest design will remain for ever in a growing
Society & thus the gap will be always be there between demand & Supply .

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 .As per the Todays market scenario customer taste &preference play a very vital role as the
youngsters generation likes a different design with new innovative concept which are brought
in the market, this will attract the customer which leads to rise in demand s in the market.

These company has a good demand position in the overall market as they come up with a new
innovative ideas in the jewellery product.

Due to this they are highly in demand in the market based on there concept in which they deals
with top Reputed Clients in India who place orders for CZ Gold Jewellery such as s

1) M/s Malabar Gold Ornaments Makers Pvt Ltd ( Calicut )

2) M/s Malabar Gold Ornaments Makers Pvt Ltd ( Coimbatore )
3) M/s Shiv Shubham Jewellers Pvt Ltd.
4) M/s Mangaldeep Jewellers.
5) M/s Glistre Gold Collection PvtLtd

FINANCIAL ASSESSMENT:

The Firm approached Federal Bank for Cash Credit Facility for growth of Business. The main
objective was to seek Working Capital Limit against Stock & Book Debts i.e Sundry Debtors
.The company has an existing limit of 28 lacs they wants a bank gauaurntee to purchase gold
from SBI.For the procurement of the loan they have to show the CMA(Credit Monitoring

Page | 29
Analysis) under which the whole profit &loss account,balancesheet should be taken on an
assumption basis with the 20% margin growth rate for the future estimation for maintaing there
MBPF(Maximum Banking Permissible Finance)limit . The whole process of CMA &Calculation
of MBPF is show by below:

M/s Shree Fine Jewels Pvt Ltd.

(For WC proposal or combination of WC-STL-TL-
CL proposal) CMA(Credit Monitoring Analysis).
Rs
lacs
2011 2012 2013 2014 2015 2016

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 Audited(16/ Provisio Provisi Projec Project Projec
DETAILS 5/2011) nal onal tion ions tions

I. PROFIT AND
LOSS ACCOUNT:
SALES:

(i) sales 91.46 570 690 850.00 1050 1300

(ii) Export Sales 0.00 0.00 0.00 0.00 0.00 0.00
1050.0 1300.0
GROSS SALES: 91.46 570.00 690.00 850.00 0 0
LESS: Excise
duty 0.00 0.00 0.00 0.00 0.00 0.00
ADD: Other
Operating Income 0.00 0.00 0.00 0.00 0.00 0.00
1050.0 1300.0
NET SALES: 91.46 570.00 690.00 850.00 0 0

Increase in Net 23.19 23.81

Sales (%) 523.22% 21.05% % 23.53% %
COST OF
SALES:
(i) Raw materials
A. Imported 0.00 0.00 0.00 0.00 0.00 0.00
B. Indigenous 0.00 0.00 0.00 0.00 0.00 0.00
(ii) Other Spares 0.00 0.00 0.00 0.00 0.00 0.00
A. Imported 0.00 0.00 0.00 0.00 0.00 0.00
1018.0 1265.0
B. Indigenous 135.98 547.00 662.00 818.00 0 0
(iii) Power &
Fuel 0.00 1.20 1.30 1.40 1.50 1.60
(iv) Direct Labour 1.38 4.00 7.00 7.50 10.00 13.00
(v) Other Manuf.
Expenses
(vi) Depreciation] 0.00 1.52 1.22 0.97 0.78 0.62
(vii) Repairs &
Maintenance 0.00 0.00 0.00 0.00 0.00 0.00
(viii) Other Manuf.
Expenses 0.00 0.00 0.00 0.00 0.00 0.00
1030.2 1280.2
SUB TOTAL: 137.36 553.72 671.52 827.87 8 2

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 ADD: Opening
Stock in Process 0.00 0.00 0.00 0.00 0.00 0.00
DEDUCT:
Closing Stock in
Process 0.00 0.00 0.00 0.00 0.00 0.00
COST OF 1030.2 1280.2
PRODUCTION: 137.36 553.72 671.52 827.87 8 2
C O P as % of 97.40 98.48
Gross Sales 150.19% 97.14% 97.32% % 98.12% %

ADD: OP Stock
of Finished Goods 32.51 81.00 85.00 90.00 95.00 105.00
DEDUCT: CL
Stock of Finished
Goods 81.00 85.00 90.00 95.00 105.00 120.00
COST OF 1020.2 1265.2
SALES: 88.87 549.72 666.52 822.87 8 2

Cost of Sales as 96.81 97.32

% of Gross Sales 97.17% 96.44% 96.60% % 97.17% %
Selling, General
& Admn. Expenses 1.12 6.00 7.00 7.00 8.00 10.00
PROFIT
BEFORE
INTEREST & TAX
(PBIT) 1.47 14.28 16.48 20.13 21.72 24.78
PBIT as % of
Gross Sales 2.51% 2.51% 2.39% 2.37% 2.07% 1.91%
Interest & Other
Financial Charges 0.36 8.43 10.12 11.00 11.15 12.00
Intt. & Fin.
Charges as % of
Sales 0.39% 1.48% 1.47% 1.29% 1.06% 0.92%
OPERATING
PROFIT BEFORE
TAX (PBT) 1.11 5.85 6.36 9.13 10.57 12.78
PBT as % of
Gross Sales 1.21% 1.03% 0.92% 1.07% 1.01% 0.98%
ADD: Other
Nonoperative
Income
(i) Interest &
dividend 0.00 0.00 0.00 0.00 0.00 0.00
(ii) Exchange
Profit/ Export 0.00 0.00 0.00 0.00 0.00 0.00

Page | 32
Incentives
(iii) Exchange
Prov Written Back 0.00 0.00 0.00 0.00 0.00 0.00
(iv) Profit on
sale of assets 0.00 0.00 0.00 0.00 0.00 0.00
(v) Sale of Scrap 0.00 0.00 0.00 0.00 0.00 0.00
SUB-TOTAL
(INCOME) 0.00 0.00 0.00 0.00 0.00 0.00
Deduct Other
Non-operating
Exp.
(i) Loss on
Invest 0.00 0.00 0.00 0.00 0.00 0.00
(ii) Loss on Forex 0.00 0.00 0.00 0.00 0.00 0.00
(iii) Loss on Sale
of Fixed Assets 0.00 0.00 0.00 0.00 0.00 0.00
(iv) Bad Debts
W/ Off 0.00 0.00 0.00 0.00 0.00 0.00
(v) Miscls
Expenses Written
Off 0.00 0.00 0.00 0.00 0.00 0.00
SUB-TOTAL
(EXPENSES) 0.00 0.00 0.00 0.00 0.00 0.00
PROFIT
BEFORE TAX /
LOSS 1.11 5.85 6.36 9.13 10.57 12.78
Tax Paid 0.00 0.00 0.00 0.00 0.00 0.00
Provision for
Taxes 0.00 2.00 2.00 3.00 3.50 4.00
NET
PROFIT/LOSS
(PAT) 1.11 3.85 4.36 6.13 7.07 8.78
PAT as % of
Gross Sales 1.21% 0.68% 0.63% 0.72% 0.67% 0.68%
Equity/Pref.
Dividend Paid (i)
Amt 0.00 0.00 0.00 0.00 0.00 0.00

(ii) Rate 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

RETAINED
PROFIT 1.11 3.85 4.36 6.13 7.07 8.78

Page | 33
 II. BALANCE
SHEET
LIABILITIES: 2007 2012 2013 2014 2015 2016
CURRENT Audited(16/ PROVISI Provisi Projec Project Projec
LIABILITIES: 5/2011) ONAL onal tion ions tions
Short Term
borrowings from
banks
(including bill
purchased/discou
nted)
(i) from applicant
bank 0.00 68.00 68.00 68.00 68.00 68.00
(ii) from other
banks 0.00 0.00 0.00 0.00 0.00 0.00
(iii) (of which Bill
purchased & disc.)
LC 0.00 40.00 40.00 40.00 40.00 40.00
SUB-TOTAL 0.00 68.00 68.00 68.00 68.00 68.00
Short Term
Borrowings from
others 0.00 0.00 0.00 0.00 0.00 0.00
Sundry Creditors
(Trade) 196.00 102.00 105.00 109.40 140.00 167.00
Adv payment fm
cust / dep fm
dealers 2.58 3.10 3.11 5.00 5.00 6.00
Provision for
TAxation 0.00 3.00 2.00 3.00 3.50 6.00
Audit fees payable 0.25 0.30 0.30 0.43 0.51 1.00
Other Statutory
Liabilities
(Due within One
Year) 0.00 0.00 0.00 0.00 0.00 0.00
Instalments of
Term loans /
Debentures /
. DPGs / deposits
etc. (due within 1
year) 0.00 0.00 0.00 0.00 0.00 0.00

Other C.L. &

Prov (due within 1
year) 0.00 0.00 0.00 0.00 0.00 0.00

Page | 34
 Interest accrued
bot not due 0.00 0.00 0.00 0.00 0.00 0.00
Dues to
Directors 0.00 0.00 0.00 0.00 0.00 0.00
Security Dep-
Suppliers and
Contractors 0.00 0.00 0.00 0.00 0.00 0.00
Other Current
Liabilities 0.00
Other Provisions 0.18 1.00 5.00 6.00 7.20 8.00

SUB-TOTAL 199.01 109.40 115.41 123.83 156.21 188.00

TOTAL
CURRENT
LIABILITIES 199.01 177.40 183.41 191.83 224.21 256.00

TERM
LIABILITIES
Debentures (not
maturing within 1
year) 0.00 0.00 0.00 0.00 0.00 0.00

Pref. Shares
(redeemable after 1
Yr) 0.00 0.00 0.00 0.00 0.00 0.00

Term Loans( Excl

instl payable within
1 Yr)
Term Deposits (
repayable after 1
year) 0.00 0.00 0.00 0.00 0.00 0.00
Unsecured loans 9.87 62.00 69.60 69.60 69.00 69.00
Mobilisation
Advace repayable
after1 year 0.00 0.00 0.00 0.00 0.00 0.00
Deferred Sales
Tax 0.00 0.00 0.00 0.00 0.00 0.00
Deferred Tax
Liability 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL TERM
LIABILITIES 9.87 62.00 69.60 69.60 69.00 69.00

Page | 35
 Ordinary share
capital 46.76 47.87 51.72 56.08 69.21 84.53
Preference Share
Capital(Additional
cap) 0.00 0.00 0.00 0.00 0.00 0.00
General reserve 0.00 0.00 0.00 0.00 0.00 0.00
Capital Reserve 0.00 0.00 0.00 0.00 0.00 0.00
Surplus(+) or
deficit (-) in P & L
Account 1.11 3.85 4.36 6.13 7.07 8.78
Share Application
Money 0.00 0.00 0.00 0.00 0.00 0.00
Security Premium 0.00 0.00 0.00 0.00 0.00 0.00
Share Premium 0.00 0.00 0.00 0.00 0.00 0.00
Capital
redemption reserve 0.00 0.00 0.00 0.00 0.00 0.00

NET WORTH 47.87 51.72 56.08 62.21 84.53 93.31

TOTAL
LIABILITIES 256.75 291.12 309.09 323.64 377.74 418.31

ASSETS: 2011 2012 2013 2014 2015 2016

CURRENT Audited(16/ Provisio Provisi Projec Project Projec
ASSETS 5/2011) nal onal tion ions tions
Cash and Bank
Balances 6.03 8.08 8.50 9.00 9.13 9.34
Investments 0.00 0.00 0.00 0.00 0.00 0.00

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(Other than Long
Term)
0.00 0.00 0.00 0.00 0.00 0.00
(ii) Fixed
deposits with banks 0.00 0.00 0.00 0.00 0.00 0.00
RECEIVABLES 133.00 180.00 193.00 196.46 245.00 265.00

Domestic Sales 133.00 180.00 193.00 196.46 245.00 265.00

Export Recv(
Incl. B/P& Disc by
banks) 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00
INVENTORY 81.00 85.00 90.00 95.00 105.00 120.00
Raw Material
Indigenous 0.00 0.00 0.00 0.00 0.00 0.00
Raw Material -
Imported 0.00 0.00 0.00 0.00 0.00 0.00
Stock in process 0.00 0.00 0.00 0.00 0.00 0.00
Finished Goods 0.00 0.00 0.00 0.00 0.00 0.00
Goods in Transit 0.00 0.00 0.00 0.00 0.00 0.00
Cl Stock of
Traded goods 81.00 85.00 90.00 95.00 105.00 120.00
Stores & Spares 0.00 0.00 0.00 0.00 0.00 0.00
Advance to
suppliers of raw
material 0.00 0.00 0.00 0.00 0.00 0.00
Other Current
Assets: 9.77 10.01 10.81 8.00 14.00 20.00
(i) Deposits 3.77 3.00 3.00 4.00 4.00 7.00
(ii) Duties &
Taxes paid in
Advance 0.00 0.00 0.00 0.00 0.00 0.00
(iii) Others 0.00 0.00 0.00 0.00 0.00 0.00
(iv) Loans and
Advnces 6.00 7.01 8.00 9.00 10.00 13.00
(iv) Interest
Accrued on Invest
& Deposits 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL
CURRENT 229.80 283.09 302.50 313.46 373.13 414.34

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ASSETS
FIXED ASSETS
(i) Plant &
Machinery 6.36 7.63 6.11 4.89 3.92 3.14
(ii) Furnitures &
Fixtures 0.03 0.04 0.05 0.06 0.07 0.08
(iii) Vehicles 0.00 0.00 0.00 0.00 0.00 0.00
(iv) Air
Conditioner 0.00 0.00 0.00 0.00 0.00 0.00
(v) Computer 0.06 0.07 0.08 0.10 0.12 0.14
(vi) Electrical
Fittings 0.24 0.29 0.35 0.42 0.50 0.60
(vii) Factory
Building (WIP) 0.00 0.00 0.00 0.00 0.00 0.00
NET BLOCK 6.69 8.02 6.59 10.18 4.61 3.97
OTHER NON
CURRENT
ASSETS

(i) Investments in
Subsidiary
companies/
. Affiliates 0.00 0.00 0.00 0.00 0.00 0.00
(ii) Other
Investments 0.00 0.00 0.00 0.00 0.00 0.00

(iii) Adv to supplof

Cap
Goods/Contractors 0.00 0.00 0.00 0.00 0.00 0.00

(iv) Deferred
receivables(maturit
y > 1 year) 0.00 0.00 0.00 0.00 0.00 0.00
(v) Margin money
kept with banks. 0.00 0.00 0.00 0.00 0.00 0.00
(vi) Debtors
exceedings 6
months 0.00 0.00 0.00 0.00 0.00 0.00
(vii) Short Term
Deposits with
Bodies Corporate 0.00 0.00 0.00 0.00 0.00 0.00
(viii) Non-
consummable 0.00 0.00 0.00 0.00 0.00 0.00

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stores & spares
(ix) Other Non
current assets incl.
dues
from directors 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL OTHER
NON CURRENT
ASSETS 0.00 0.00 0.00 0.00 0.00 0.00

Intangible Assets
(patents, goodwill,
prelim. expenses,
bad/doubtfull
expenses not
provided for) 20.26 0.00 0.00 0.00 0.00 0.00
TOTAL ASSETS 256.75 291.11 309.09 323.64 377.74 418.31

Total Liabilities -
Total Assets 0.00 0.00 0.00 0.00 0.00 0.00

CALCULATION OF MPBF(MAXIMUM PERMISSIBLE BANKING

FINANCE

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 2011 2012 2013 2014 S 2016
Audited(16/5/2 Provisio Provisio Projecti Projectio Projectio
011) nal nal on ns ns
1. Total
Current Assets 229.80 283.09 302.50 313.46 373.13 414.34
2. Other
Current
Liabilities
(Other
. than Bank
Borrowings &
TL Instalments 199.01 109.40 115.41 123.83 156.21 188.00
3. Working
Capital Gap 30.79 173.69 187.09 189.63 216.92 226.34
4. Min.
Stipulated Net
Working
. Capital
(25% of Total
Current Assets
. excluding
Export
Receivables) 57.45 70.77 75.63 78.37 93.28 103.59
5. Actual/
Projected NWC 30.79 105.69 119.09 121.63 148.92 158.34
6. Item 3
Minus Item 4 -26.66 102.92 111.47 111.27 123.64 122.76
7. Item 3
Minus Item 5 0.00 68.00 68.00 68.00 68.00 68.00
8.
Maximum
Permissible
Bank
. Finance (
lower of 6 or 7
) -26.66 68.00 68.00 68.00 68.00 68.00
9. Excess
borrowings
representing
Shortfall in
NWC 26.66 NIL NIL NIL NIL NIL

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WORKING OF CASH FLOW

VI. CASH FLOW STATEMENT

Operating Sector
570.0 690.0 850.0 1050.0 1300.0
Sales 0 0 0 0 0
Debtors (Trade) [Inc.(+)/Dec 47.00 13.00 3.46 48.54 20.00
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 .(-)]
523.0 677.0 846.5 1001.4 1280.0
Cash From Sales 0 0 4 6 0
Costs- Interest &
Finance Charges 8.43 10.12 11.00 11.15 12.00
Expenses on Stocks 547.0 662.0 818.0 1018.0 1265.0
Purchases 0 0 0 0 0
[Inc.(-
Trade Creditors )/Dec.(+)] 94.00 -3.00 -4.40 -30.60 -27.00
Manufacturing
Expenses 5.20 8.30 8.90 11.50 14.60
654.6 677.4 833.5 1010.0 1264.6
Cash Cost of Sales 3 2 0 5 0
Expenses for Inc. / Dec.
in Stocks 4.00 5.00 5.00 10.00 15.00
-
Cash from Aset 135.6
Conversion Cycle 3 -5.42 8.04 -18.59 0.40
Selling, Gen. & Adm.
Expenses 6.00 7.00 7.00 8.00 10.00
[Inc.(+)/Dec
Advance Payments .(-)] 0.00 0.00 0.00 0.00 0.00
[Inc.(-
Advances Received )/Dec.(+)] -0.52 -0.01 -1.89 0.00 -1.00
Taxation 2.00 2.00 3.00 3.50 4.00
Dividends 0.00 0.00 0.00 0.00 0.00
-
143.1 -
Cash From Operations 1 14.41 -0.07 -30.09 -12.60
[Inc.(+)/Dec
Other Current Assets .(-)] -0.77 0.00 1.00 0.00 3.00
Other Current [Inc.(-
Liabilities )/Dec.(+)] -3.87 -3.00 -2.13 -1.78 -3.79
Other
Income/Expenses(Net) 0.00 0.00 0.00 0.00 0.00
-
Net Cash From 138.4 -
Operations 7 11.41 1.06 -28.31 -11.81

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 Investment Sector
[Inc.(+)/Dec
Capital Expenditure .(-)] 2.85 -0.21 4.56 -4.79 -0.02
Investment in Group [Inc.(+)/Dec
Comp's .(-)] 0.00 0.00 0.00 0.00 0.00
Intang,/Other Term [Inc.(+)/Dec -
Assets .(-)] 20.26 0.00 0.00 0.00 0.00
-
121.0 -
Cash Before Funing 7 11.19 -3.50 -23.52 -11.79
Financing Sector
[Inc.(+)/Dec
Dues to Banks .(-)] 68.00 0.00 0.00 0.00 0.00
[Inc.(+)/Dec
Short Term Debts .(-)] 0.00 0.00 0.00 0.00 0.00
[Inc.(+)/Dec
Term Debts .(-)] 52.13 7.60 0.00 -0.60 0.00
[Inc.(+)/Dec
Equity .(-)] 1.11 3.85 4.36 13.13 15.32
[Inc.(+)/Dec
Other Loans & Reserves .(-)] -1.11 -3.85 -4.36 -6.13 -7.07
120.1
Total 3 7.60 0.00 6.40 8.25
Movement in Cash
Assets -0.94 -3.59 -3.50 -17.12 -3.54
[Inc.(+)/Dec
Cash & Bank Balance .(-)] 2.05 0.42 0.50 0.13 0.21
Investments (Other [Inc.(+)/Dec
Than Long Term) .(-)] 0.00 0.00 0.00 0.00 0.00
Movement in Cash
Assets 2.05 0.42 0.50 0.13 0.21

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10

5 Current ratio
4 Net profit

0
2011 2012 2013 2014 2015 2016

Page | 44
+

1400

1200

1000

800 Sales
COP as % GP
600
COS as % GP

400

200

0
2011 2012 2013 2014 2015 2016

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 .Special Features:

1. Its having own brand.

2. Use of CAD/CAM technology in designing.

3. The company has understood the marketing demands and his making product is a

range of price which is comfortable for any middle class family to buy its product.

1. The company had managing the working capital nicely with a small bank facilities of
28 acs has achieved the turnover of 2012.
2. Since it was observed that the company is desires of availing more bank facility as they
have made a dent in the market and its products are in demand..

Data Analysis:
Page | 46
Through these data collection I have come across about the technical,financial&market aspects .That
how the technical aspects takes place. On these technicality how an ( entrepreneur) can managed both
financial as well as market aspects .

From these we have analysis how a Manufacturing units works on.

As in corporate world manufacturing sector play a vital role in todays market .

CHAPTER NO:5
CONCLUSION:
Page | 47
 By Undertaking these project .I have gained knowledge in the following areas:

Growing Market Trends for gold jewellerys.

Formation of design through CAD/CAM system.
Marketing ability of the company to sales its products to top rated .Product of CZ gold
jewellery to companies established in Calicut/Coimbatore &down south functioning from
Mumbai.

Recommendation:

After doing the project it is a recommend that considering the following aspects:

Page | 48
 Increase in the Turnover.
Increase in the Cost of Production.
Increase in the Net Profit .
Increase in the PBIT &Composition of Current Assets/Current Liabilties
&Current Ratio

M/s Shree Fine Jewels is eligible to get an additional Working Capital Limit of Rs 40

Lacs.

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