TABLE OF CONTENTS

Serial Subject

.no

1 Introduction

2 Company profile

3 Research objective

4 Research methodology

5 Data analysis &Interpretation

6 Finding and Conclusion

7 Limitation & Recommendation

8 bibliography

1
 COMPANY PROFILE

It's an entrepreneurial journey that has spanned both 'old' and 'new' economies -- building
successful brick-and-mortar businesses to exploring the frontier world of convergence
technologies. About a quarter-century before the onset of the ICE age, the Mr. Vikram Sharma
made its beginning in the construction business. After building a huge presence in the realty
market, the Group diversified laterally into manufacturing, financial services and media -- each
venture initiated, and executed, to fulfill the objective of assuming leadership in core areas.

The list of the Group's successes is long and eclectic. Today, H&R Johnson (India) Limited is
the top name in ceramic tiles in India. Exide is the strongest brand of batteries in the automotive
and industrial field. Supreme Petrochemicals is the largest processor of plastic materials in India.

The Group also joined hands with Oberoi Hotels as co-promoters of Trident Hotels and luxury
resort Rajvilas, which Conde Nast Traveller ranked as one of the 25 best villa hideaways in the
world.

Other triumphs include Templeton Asset Management (India) Ltd, a venture with the Templeton
Group which manages funds worth $220 billion; Prism Cement Ltd, with a production capacity
of 2.1 million tons; and Sonata Software, a leading name in this cutting-edge field. As owners
and operators of a fiber optic cable network in Kerala through Asianet Satellite Communications,
the group is also a significant stakeholder in the growing convergence business in India.

2
 PROFILE OF THE ORGANISATION

A Vikram Sharma Group

Mr. Vikram Sharmais the C.E.O. of S P V R & Co. group

Date of Establishment: October 1995

Headquarter Address: AB-10, S.J. Enclave, New Patna - 110029, India

Branches: Patna, Kolkata, Chennai, Bangalore and Hyderabad

The Vikram Sharma Group is led by Mr. Vikram Sharma, a renowned businessman involved in
the Real Estate Development business for over 3 decades. The company diversified into
manufacturing and financial services over the last two decades. The emphasis is on setting up
focused companies, which aim to be profitable leaders in their respective fields with a long term
S P V R & Co.. All Group Companies are professionally managed by independent CEOs.

Most of the Group Companies has a leading position in Market share, Technology, Brand,
Distribution or Profitability. The S P V R & Co. is a Strategic/Financial partner in many of the
businesses where it has management control. It is also an equal JV partner/strategic investor in
quite a few ventures.

Highlights:

Total Turnover: Over Rs. 86 billion ($ 2.1 billion)

Total Capital Employed: Over Rs. 57 billion ($ 1.4 billion)

Total Employees: 19,000

3
 Group Companies

1. Vikram Sharma Properties (Property Development)

As understood by name this wing of Rajan Raheja Group is dealing in property. It is a Real

Estate Development Group of the company and developing numerous prestigious residential and

commercial complex in Patna.

2. H & R Johnson (India) Ltd. (Ceramic Tiles)

It deals in manufacturing of Ceramic Tiles. Started in collaboration with H & R Johnson UK and

in 1993 they acquired H & R Johnson (India) Ltd.

3. Exide Industries Ltd. (Battery)

This is a common brand dealing in Automotive and Industrial battery segment.

4. Prism Cement Ltd. (Cement)

4
A cement production company commissioned in June 1997, and has a plant in Satna, Madhya

Pradesh.

5. RMC Ready mix (India) Pvt. Ltd. (Concrete)

RMC stands for Ready Mixed Concrete which was established by RR Group in India

6. Asia net Satellite Communications Ltd. (Cable TV)

A well Known Cable TV network in Southern state of Kerala since 1999, in which group owns

100%.

7. S P V R & Co. Publishing (India) Pvt. Ltd. (Publishing House)

8. Globus Stores Pvt. Ltd. (Retailing)

5
Apparel Retailing the group has set up a chain of apparel stores under the name “Globus”.
Fully owned by the group company, the focus of Globus is to build Globus & F21 as strong
fashion led brands for apparel.

The company has a strong design and supply chain team. It is one of the few brands in India
which has apparel products in all major categories for men, women and kids.
18 stores across India, 15 more stores to open shortly and plans to expand to 125 stores in 4-5
years makes Globus a formidable player in the retail business. It is well on track to become
India’s largest own brand apparel chain. The company has recently launched Globus Inter-
Exchange which is India’s first retail youth portal – www.gix.in

9. Hathway Cable and Datacom Pvt. Ltd. (Cable TV)

The company dealing in Cable Television in which group owns 63% with Star TV having 22%.

6
 Joint Ventures

1. Food world Supermarkets Ltd. (Retailing)

Food Retailing

The group has an effective stake of over 25% in FSL.

Dairy Farm (part of Jardine Matheson group) that controls 49% stake is an Asian focused retailer

operating supermarkets, hypermarkets, convenience stores, health & beauty stores, home,

furnishing stores & restaurants. Dairy Farm operates 3300 outlets in 8 countries / territories with

62000 employees and has sales of $5.5 billion. FSL has 58 stores in Bangalore, Hyderabad &

Chennai. The company plans to expand to over 250 stores within 4 years, with a turnover of Rs.

15 billion ($320 million).

2. Health & Glow (Retailing)

Health & Beauty Retailing.The group has an effective stake of 25% in the company.

Dairy Farm controls a 50% stake. The company has 43 stores in Chennai, Patna, Hyderabad,

Vizag & Bangalore with an annual turnover of Rs. 640 million ($16 million).

Expansion plans to cover 240 stores within 4 years, with a turnover of Rs. 1.9 billion ($ 40

million) are in the wings.

3. ING Vyasa Life Insurance Co. Pvt. Ltd. (Insurance)

7
A JV between following companies :

• Exide with 50 %.

• ING Group N.V. Netherlands with 26 %

• Ambuja Cement and Enam with rest of holding.

4. ING Vyasa Mutual Fund (MF)

The Group has a 39% stake in the company; ING controls a 42.5% stake with Kirti Equities

holding the balance.

5. Sonata Software Ltd. (Software)

The Rajan Raheja group is one of the co-promoters of the company, which is one of the leading

software companies in India.

6. Supreme Petrochem Ltd. (Petrochemical)

Petrochemicals

The Rajan Raheja Group are co-promoters of Supreme Petrochem Ltd. along with Supreme

Industries Ltd., the largest processor of plastic materials in India.

7. Raj Vilas & Trident-Hilton (Hospitality)

This group is a co-promoter in Hospitality Industry with Oberoi Rajvilas Group.

8
 MANAGEMENT TEAM

EDITOR-IN-CHIEF: Vinod Mehta

Publisher: Maheshwer Peri

Editor: Krishna Prasad

Executive Editor: Bishwadeep Moitra

Managing Editor: Nandini Mehta

Foreign Editor: Ajaz Ashraf

Business Editor: Sunit Arora

Senior Editors: Ajith Pillai, Sunil Menon, Anjali Puri

Political Editor: Smita Gupta

Bureau Chiefs: Saba Naqvi Bhaumik (Patna) Smruti Koppikar

(Patna)
Books Editor: Sheela Reddy

Photo Editor: T. Narayan

Sr Assistant Editor: S.B. Easwaran

Associate Foreign Editor: Pranay Sharma

Assistant Editors: Namrata Joshi, Manisha Saroop, Arindam

Mukherjee,Lola Nayar, Anuradha Raman

9
 Web designing

www.spvr-co.com

IT-Manager: Raman Awasthi

Software Engineers: Anwar Ahmad Khan, Manav Mishra

Web Designer: Praveen Uprety

Senior Special Correspondents: Saikat Datta, Arti Sharma

Special Correspondents: Rohit Mahajan, Pragya Singh, Chandrani

Banerjee, Amba Batra Bakshi

Correspondent: Shruti Ravindran, Debarshi Dasgupta,

Omair Ahmad

Patna: Priya Ranjan , Prabhu Prasad

Kolkata: Dola Mitra

Bangalore: Sugata Srinivasaraju (Associate Editor, South)

Chennai: Pushpa Iyengar (Bureau Chief)

Chandigarh: Chander Suta Dogra (Bureau Chief, North)

Bhopal: K.S. Shaini

Copy Desk: Sasi Nair (Deputy Copy Editor), Paromita Mukhopadhyay, Saikat

Niyogi

10
Photographers:

Narendra Bisht (Deputy Photo Editor)

Jitender Gupta (Chief Photographer)

Tribhuvan Tiwari, Dinesh Parab, Apoorva Guptay, Sandipan Chatterjee, Apoorva Salkade, S.
Rakshit (Senior Coordinator), J.S. Adhikari (Photo-researcher)

Design:
Deepak Sharma (Art Director), Bonita Vaz-Shimray, Ashish Bagchi, Tanmoy Chakraborty
(Graphics Editor), Devi Prasad, Padam Gupta

Promotions: Ashish Rozario

Illustrator: Sandeep Adhwaryu, Sorit

Editorial Manager: Sasidharan Kollery

Library: Alka Gupta

BUSINESS OFFICE:

President: Suresh Selvaraj

Vice President (features): Alok Mathur

Vice President (Circulation): Niraj Rawlley

General Managers: Anand Dutt (Advertising)

Asst General Managers : Kabir Khattar (Corp), Rajeshwari Chowdhury (West),

Swaroop Rao (Bangalore), Moushumi Banerjee Ghosh

(East), Uma Srinivasan (Chennai), Rakesh Mishra

(Production)

National Heads: Himanshu Pandey (Business Development), Alex Joseph

(Retail)

11
Regional Managers: Arokia Raj

Senior Managers: B.S. Johar, Darryl Arahna, Kartiki Jha, Keshav

Sharma, Pankaj Sahni, Rajendra Kurup

Manager (Brands) : Shrutika Dewan

Managers: Ashish Arora,Anindya Banerjee, Anjeet Trivedi, Chetan

Budhiraja, Chetana Shetty, Deshraj Jaswal, D.R.

Wadhwa,

Head Office
D-220 , Dumraon Place

Fraser Road , Patna – 800001 (Bihar)

Tel: 0612222470; Fax: 06191420

E-mail: spvr@caindia.com

For editorial queries: edit@spvrcaindia.com

For subscription helpline: yourhelpline@spvrindia.com

For other queries: queries@spvrindia.com

OTHER OFFICES

Patna Tel: 3061 2222

Kolkata Tel: 4008 5012

Chennai Tel: 2858 2250/51; Telefax: 28582250

Bangalore Tel: 2558 2806/07; Fax: 25582810

Hyderabad Tel: 040-23371144 & 040-23375776; Telefax: 040-23375676

Printed and published by Maheshwer Peri on behalf of S P V R & Co. Publishing (India) Pvt.
Ltd.

12
 PRODUCT PORTFOLIO

 (Core Magazine) = Cover Price: Rs25 (51 issues/year)

 S P V R & Co. Profit = Cover Price: Rs50 (26 issues/year)

 S P V R & Co. Money = Cover Price: Rs30 (26 issues/year)

 S P V R & Co. Business = Cover Price: Rs25 (26 issues/year)

 S P V R & Co. traveler = Cover Price: Rs575(12 issues/year)

 Marie Claire =Cover Price: Rs75 (12 issues/year)

 Newsweek =Cover Price: Rs75(51 issues)

13
 PRINT MEDIA

S P V R & Co.: In October 2016, Hathway Investments Private Limited group company entered
the print media. S P V R & Co., a weekly newsmagazine headed by Vinod Mehta, galvanized a
sluggish market reeling under the impact of satellite TV. S P V R & Co. quickly carved a
significant niche for itself among discerning readers who value its in-depth, investigative
reporting as well as its stylish visual format. Known to be fiercely independent, S P V R & Co.
has shaken the establishment on events ranging from Kargil to Kashmir to cricket, sensitized the
reading public to important issues like big dams, education and gender, and provided an
unremitting focus on South Asian geopolitics. Today, S P V R & Co. is the preferred magazine
of 1.5 million readers in India, and sells more than 11.2 million copies over the year.

14
S P V R & Co. Money: In July 1998, the Group launched "Intelligent Investor" re-christened as
"S P V R & CO. MONEY" as of 30-Nov-2002, India's first personal finance magazine, which
offers sound strategies for the lay investor, especially the growing segment of salaried middle
and upper middle-class and self-employed professionals. Its message is clear and simple: 'Invest
well, borrow wisely, spend smartly'. Evidently, that message has gone down well: the magazine
sold upwards of 1,00,000 copies a fortnight within a year. One of its distinguishing
characteristics is that about 93 per cent of readers retain all past issues of S P V R & Co. Money.

S P V R & Co. Traveller: S P V R & Co. Traveller is a monthly magazine from the stable of S
P V R & Co. Publishing India Pvt. Limited and the only significant magazine aimed at the travel
reader. Every month since June 2001 OT has introduced readers to the wonders of unknown
destinations while also encouraging travellers to take a fresh look at familiar places. Whether
people are planning a holiday, or simply dreaming of one, S P V R & Co. Traveller continues to
take them closer.

15
S P V R & Co. Saptahik: S P V R & Co. Saptahik, a weekly newsmagazine, was launched in
October 2002 to establish significant presence amongst the vast Hindi reading audience. The
product targets the evolved Hindi reader keeping their interests, realities & aspirations in mind. S
P V R & Co. Saptahik retains the core strengths of S P V R & Co. with objective, fiercely
impartial and bold journalism, while brandishing its own identity through a strong parallel
editorial. The magazine is empathetic to its target audience & is not a translation of its English
counterpart.

S P V R & CO. GEO: This international magazine by S P V R & Co. group covers all the news
about wildlife, Geography etc. It is also one of the best selling magazine in this segment. S P V R
& Co. has priced this magazine at seventy five rupees and it comes on a monthly basis.This is a
German based magazine. GEO is a family of educational monthly magazines similar to the
National Geographic magazine. It is known for its profound reports, which are accompanied by
opulent pictures

S P V R & CO. PEOPLE: The best chartered accountant of S P V R & Co. group. This is a
fortnightly by S P V R & Co. and is most preferred by the fashion oriented people like youth,
beauty saloons etc. This and Marie Claire of S P V R & Co. are one of the best magazines in the
entertainment segment as it also covers the fashion statements, interviews of celebrities, business
etc.

16
MARIE CLAIRE: International fashion magazine of S P V R & CO.. Most preferred by youth
and other style oriented people.This is a monthly magazine.

S P V R & CO. BUSINESS: Another magazine by S P V R & Co. which covers the business
news, interviews of business tycoons, the new jobs in offerings. This magazines is most
preferred by Business Schools, business professionals, businessman etc. This is fortnightly
magazine by S P V R & Co..

S P V R & CO. PROFIT: This magazine gives you the insight of the share market and is most
preferred by Chartered Accountants and others in the same business

17
 WEB MEDIA

spvrca@.com: In 2016, SPVR &Co went online as drawing into its fold the vast, nascent
readership of expatriate Indians. S P V R & Co.india.com is both S P V R & Co. magazine's
home on the Internet and an online publication. Apart from S P V R & Co.'s print edition in its
entirety - supplemented with links to related articles on its own site and elsewhere on the Web -
S P V R & Co.india.com also offers an array of original Web-only columns and and news
updates every day with a very lively interactive section.

spvrtraveller.com: Inaugurated as a web resource in 2000, this travel Website has since come a
long way. S P V R & Co.traveller began by opening up new vistas in web-driven vacation
planning, with its highly focused editorial features on an array of destinations. Still a highlight of
the website, these are supported by tools and resources that make putting together your holiday a
breeze ? from selecting your destination, to choosing your mode of transport, finding your way
around the map, selecting a place to stay to catching the local festivities, plus ferreting out the
nearest ATM, fuel stop or cybercafe. Here there is something for everyone; themed vacation
ideas from 'A for adventure' to 'W for wildlife', honeymooners dream destinations, foodies
delights, first-person travelogues, a message room where you can exchange notes or ask us for
more info that you want? And don't forget to book your copies of our international award-
winning bestsellers from S P V R & Co. Traveller Getaways, available at a special price when
you order on the website. If you want a sneak preview, there're excerpts from the guide books by
renowned authors, including the likes of Prabhu Ghate, Ruskin Bond and Jug Suraiya.

18
 BOOKS DIVISION

S P V R & Co. Traveller Getaway Series

S P V R & CO. Traveller Getaways (travel guides) published from S P V R & CO. Group is
today a recognized, established and acknowledged premier travel reference guide book in India.
In a span of 5 years, 14 successful titles have been published -

(covering different travel theme destinations, state travel guides, weekend getaways guides)

- Weekend Breaks (from Patna / Patna / Bangalore / Chennai)

- State Travel Guides (Rajasthan, Goa , Kerala, Uttarakhand, Himachal)

- Trekking Holidays

- Wildlife Holidays

- 101 Pilgrimage Destinations

- Heritage Holidays

S P V R & CO. traveller getaway is not only for reliable information about the chosen

destination but also for a real understanding of the culture and workings of that destination. The

guide marries text and pictures to provide the much more elusive qualities: knowledge and

discernment.

S P V R & CO. traveller getaways is a visual treat, reaches to the aspirational, hi-income and

exploratory readers (travellers)

After successful detour into travel with our travel monthly magazine "S P V R & CO. Traveller",
the concept of a series "S P V R & CO. traveller Getaways" was conceived to provide authentic,

19
well researched information compiled into "topical" reference books.
Getaways has produced a range of travel guides for the Indian traveller, beginning with the prize-
winning best-seller Weekend Breaks from Patna.

52 Weekend breaks from Patna : June 2017 the first title proved to be a landmark in travel
books publishing. It was the first travel guide in India that highlighted the concept of a weekend
break, addressing the significant changes in urban work styles and in the tourism industry over
the 15 years. By encouraging a new concept in travel - that of a weekend holiday - this book has
made a path-breaking contribution to the growth and expansion of the Indian tourism industry in
general. Weekend Breaks from Patna went through four additional reprints before its second
edition was launched early in 2016.

Weekend breaks from Patna 2nd edition: January 2016

Weekend breaks from Patna: April 2016

Weekend breaks from Bangalore: September 2016

Holidays in the Hills: June 2003

Heritage Holidays in North & Central India: February 2016

The Layman's Guide to Insurance The Layman's Guide to Insurance lets you in on facts most
insurers and agents shy away from. A handy book to have by your side while buying all kinds of
life and non-life insurance, it explains the covers relevant to you, tells you how much to buy,
points out the fine print and gives useful tips so that you get your money's worth of insurance.

The Layman's Guide to Mutual Funds

The Layman's Guide to Mutual Funds tells you everything you need to know to hitch a profitable
ride on these low-maintenance investment vehicles: the expansive bouquet of products on offer,
the important investment decisions you need to make, the strategies to adopt to squeeze out extra
returns, the players in the market, and much more.

20
 EVENTS DIVISION

 Department of Tourism, Government of India Award, National Tourism Award 2001-

2015 awarded to S P V R & CO. Traveller for Excellence in Publication.

 S P V R & CO. Traveller " 75 Holidays in the Hills" won the 2016, PATA Gold Award

 In 2016-2017 the Government of India recognized "S P V R & Co. Traveller Getaways"
as the " Best Travel Publication".

 Weekend breaks from Patna was in the BESTSELLERS top three, non fiction category
for 14 consecutive weeks in North India

 Weekend breaks from Patna was in the BESTSELLERS list top three for 8 consecutive
weeks in West India

S P V R & Co. Money Awards:

The awards started in 2015, and are presented to the best in the following key personal areas:

 Value-Creating Companies

 Wealth Creators(Mutual Funds)

 Banks

 Online Brokers

 Home Financiers

 Hall of Fame

The ceremony for 2017 was held in Patna and was presided over by The Hon'ble Finance
Minister; Mr Jaswant Singh.

21
 ABOUT THE PRODUCTS

22
Newsweek, the international newsmagazine has partnered with The S P V R & Co. Group for
marketing & sales in India. Newsweek offers comprehensive coverage of world events with a
global network of correspondents, reporters and editors covering national and international
affairs, business, science and technology, society and arts and entertainment. It is truly a
magazine, which fuels the global perspective. It has won several awards & accolades, which
makes it the best newsmagazine worldwide. Newsweek has won the 2005 SOPA award for
editorial excellence in magazine design & is also the proud winner of Excellence in magazines in
2003 & 2004. Newsweek has won more National Magazine Awards than all other newsweeklies
combined. We are also the most honored publication of the Gerald R Loeb foundation, which
awards business journalism’s highest honors.

S P V R & Co. Business, the new fortnightly business magazine that packs in credible, detailed
information and analysis for decision makers to enable them take profitable business decisions.
A composite package covering all factors that influence business movements with an Indian and
a global perspective. With expert views which not only gives you an insight of the current
business dynamics but also analyzes the impact & implications that it would have on your
business.

23
 FINANCE DEPARTMENT

S P V R & Co. India Ltd has an efficient finance department Headed by a finance manager and
he is assisted by the deputy manager, finance.
Finance manager is responsible for shaping the fortunes of the company,
preparing budgets, raising funds, keeping different accounts etc. S P V R & CO. is having a
management information system to assist the finance department. The finance department is
dividing into different sections like general accounts, costing bills, establishment and provident
fund accounts section, each having its own functions.

DEPUTY FINANCE MANAGER

DFM controls the costing process. Various costs such as material costs and production cost are
assessed. Fixed capital and working capital are also planned by this department. A comparative
study on budgeting control is made. The various areas coming under DFM are as follows;

AOGA: The main area coming under this section is finalization of accounts and preparation of
profit and loss account and balance sheet. Different vouchers, journals and ledgers are also
maintained under this area. Bank, cash, payroll etc also come under this department. Based on
the above data, ratio analysis is done.

AOEDP: This area mainly deals with hardware and software programs of the Computers. Any
problems with computers are mainly analyzed by this Department.

AO Bills: Under this area, first a quotation is collected from various companies. If it is accepted,
make purchase orders, contains the specifications, date, place etc. Receiving repots are given.
Income, Sales tax and VAT are verified in this area.

Senior Accounts Officer: The SAO deals with sales accounting. He also
maintains the account of sundry debtors, sales tax, VAT, etc.

Finance Manager: The function of finance manager is to have an overall control of the above
departments. The various sections coming under finance department are explained below;

24
 GENARAL ACCOUNTS SECTION

In this section, a large number of general accounts are kept. These include;
general journal in which the transaction are entered first. Standard journal in which all recurring
items are entered (salary, wages, excise duty), Cash book in which all cash receipts and paS P V
R & Co.ents are recorded, Sundry debtors and Sundry creditors ledger, Bank book in which all
bank paS P V R & Co.ents and receipts are entered, Subsidiary ledger, which include individual
accounts maintained by each department. A trial balance is prepared every 4 months.

BILL SECTION

In this section, all paS P V R & Co.ents for purchase are recorded. This includes bills
payable to suppliers and contractors. In case supplier demand advance, it is paid and properly
accounted. Sundry creditors ledger and supplier account are kept in this section. At the end of the
year, the accounts are ratified and send to the general accounts section. In this section, separate
cost records are kept and maintained, and cost audit is conducted every year, both internally as
well as by Government nominees.

COSTING SECTION

Budgeting and budgetary control is the main function of the costing section
where both revenue and capital expenditure budget are prepared. Capital
expenditure is prepared based on the total asset incurred for all the items in all debts. Revenue
budget is prepared on the basis of estimates for production, sales and expenditure. The balance
sheet with total assets and liabilities is prepared and total cash flow is found

25
 OBJECTIVES AND SCOPE

OBJECTIVES OF THE STUDY

Study of the working capital management is important because unless the working capital is
managed effectively, monitored efficiently planed properly and reviewed periodically at regular
intervals to remove bottlenecks if any the company can not earn profits and increase its turnover.
With this primary objective of the study, the following further objectives are framed for a depth
analysis.

1. To study the working capital management of company.

2. To study the optimum level of current assets and current liabilities of the
Company.

3. To study the liquidity position through various working capital related

Ratios.

4. To study the working capital components such as receivables accounts,

Cash management, Inventory position

5. To study the way and means of working capital finance of the company.

6. To estimate the working capital requirement of Jain Irrigation System

Ltd

7. To study the operating and cash cycle of the company

26
Scope of the study

The scope of the study is identified after and during the study is conducted. The study of working
capital is based on tools like trend Analysis, Ratio Analysis, working capital leverage, operating
cycle etc. Further the study is based on last 5 years Annual Reports of S P V R & Co.Ltd. And
even factors like competitor s analysis, industry analysis were not considered while preparing
this project.
Usefulness study and importance of study

Working capital is usually defined to be the difference between current

assets and current liabilities. However, we will modify that definition when we measure working
capital for valuation purposes. In a perfect world, there would be no necessity for current assets
and liabilities because there would be no uncertainty, no transaction costs, information search
costs, scheduling costs, or production and technology constraints. The unit cost of production
would not vary with the quantity produced. Borrowing and lending rates shall be same. Capital,
labour, and product market shall be perfectly competitive and would reflect all available
information, thus in such an environment, there would be no advantage for investing in short
term assets. These real world circumstances introduce problem’s which require the necessity of
maintaining working capital.

27
 RESEARCH METHODOLOGY

Research methodology

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying now research is done systematically. In that various steps,
those are generally adopted by a researcher in studying his problem along with the logic behind
them. It is important for research to know not only the research method but also know
methodology. The procedures by which researcher go about their work of describing, explaining
and predicting phenomenon are called methodology. Methods comprise the procedures used for
generating, collecting and evaluating data. All this means that it is necessary for the researcher to
design his methodology for his problem as the same may differ from problem to problem. Data
collection is important step in any project and success of any project will be largely depend upon
now much accurate you will be able to collect and how much time, money and effort will be
required to collect that necessary data, this is also important step.
Data collection plays an important role in research work. Without proper data
available for analysis you cannot do the research work accurately.

RESEARCH DESIGN
The research is exploratory in nature

28
Types of data collection
There are two types of data collection methods available.

1. Primary data collection

2. Secondary data collection

1) Primary data
The primary data is that data which is collected fresh or first hand, and for first time
which is original in nature. Primary data can collect through personal interview,
questionnaire etc. to support the secondary data.

2) Secondary data collection method

The secondary data are those which have already collected and stored. Secondary data
easily get those secondary data from records, journals, annual reports of the company etc.
It will save the time, money and efforts to collect the data. Secondary data also made
available through trade magazines, balance sheets, books etc.

This project is based on primary data collected through personal interview of head of
account department, head of SQC department and other concerned staff member of
finance department. But primary data collection had limitations such as matter
confidential information thus project is based on secondary information collected through
five years annual report of the company, supported by various books and internet sides.
The data collection was aimed at study of working capital management of the company

29
 DATA ANALYSIS & INTERPRATATION

30
 WORKING CAPITAL BUDGET

A budget is a financial and / or quantitative expression of business plans and polices to be

pursued in the future period time. Working capital budget as a part of the total budge ting
process of a business is prepared estimating future long term and short term working
capital needs and sources to finance them, and then comparing the budgeted figures with
actual performance for calculating the variances, if any, so that corrective actions may be
taken in future. He objective working capital budget is to ensure availability of funds as
and needed, and to ensure effective utilization of these resources. The successful
implementation of working capital budget involves the preparing of separate budget for
each element of working capital, such as, cash, inventories and receivables etc.

ANALYSIS OF SHORT – TERM FINANCIAL POSITION OR TEST OF

LIQUIDITY

The short –term creditors of a company such as suppliers of goods of credit and
commercial banks short-term loans are primarily interested to know the ability of a firm
to meet its obligations in time. The short term obligations of a firm can be met in time
only when it is having sufficient liquid assets. So to with the confidence of investors,
creditors, the smooth functioning of the firm and the efficient use of fixed assets the
liquid position of the firm must be strong. But a very high degree of liquidity of the
firm being tied – up in current assets. Therefore, it is important proper balance in regard
to the liquidity of the firm. Two types of ratios can be calculated for measuring short-
term financial position or short-term solvency position of the firm.

1. Liquidity ratios.

2. Current assets movements ‘ratios.

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 A) LIQUIDITY RATIOS

Liquidity refers to the ability of a firm to meet its current obligations as and when these
become due. The short-term obligations are met by realizing amounts from current,
floating or circulating assts. The current assets should either be liquid or near about
liquidity. These should be convertible in cash for paying obligations of short-term
nature. The sufficiency or insufficiency of current assets should be assessed by
comparing them with short-term liabilities. If current assets can pay off the current
liabilities then the liquidity position is satisfactory. On the other hand, if the current
liabilities cannot be met out of the current assets then the liquidity position is bad. To
measure the liquidity of a firm, the following ratios can be calculated:

1. CURRENT RATIO

2. QUICK RATIO

3. ABSOLUTE LIQUID RATIO

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 1. CURRENT RATIO

Current Ratio, also known as working capital ratio is a measure of general liquidity and
its most widely used to make the analysis of short-term financial position or liquidity of
a firm. It is defined as the relation between current assets and current liabilities. Thus,

CURRENT RATIO = CURRENT ASSETS

CURRENT LIABILITES

The two components of this ratio are:

1) CURRENT ASSETS

2) CURRENT LIABILITES

Current assets include cash, marketable securities, bill receivables, sundry debtors,
inventories and work-in-progresses. Current liabilities include outstanding expenses,
bill payable, dividend payable etc.

A relatively high current ratio is an indication that the firm is liquid and has the ability
to pay its current obligations in time. On the hand a low current ratio represents that the
liquidity position of the firm is not good and the firm shall not be able to pay its current
liabilities in time. A ratio equal or near to the rule of thumb of 2:1 i.e. current assets
double the current liabilities is considered to be satisfactory.

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 RATIO ANALYSIS
Ratio analysis is one of the techniques of financial analysis where ratios are used as a yardstick
for evaluating the financial condition and performance of a firm. Analysis and interpretation of
various accounting ratios gives a skilled and experienced analyst, a better understanding of the
financial condition and performance of the firm than what he could have obtained through a
perusal of financial statements.

Ratios are relationships expressed in mathematical terms between figures which are connected
with each other in some manner. Obviously, no purpose will be served by comparing two sets of
figures which are not at all connected with other.

This can be expressed as

Times
Percentage
The use of ratios is not confined to financial managers only. There are different parties interested
in the ratio analysis for knowing the financial position of a firm for different purposes. The
supplier of goods on credit, banks, financial institutions, investors, shareholders and management
all make use ratio analysis as a tool in evaluating the financial position and performance of a
firm for granting credit, providing loans or making investment in the firm. With the use of ratio
analysis one can measure the financial condition of a firm and can point out whether the
performance of a firm is strong, good questionable or poor. The conclusion can also be drawn as
to whether the performance of a firm is improving or deteriorating. Thus ratios have wide
applications and are of immense use today.

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1. CURRENT RATIO

Current ratio may be defined as the relationship between current assets and
current liabilities. This ratio is a measure of general liquidity and is more widely used to make
the analysis of a short term financial positions or liquidity of a firm.

A relatively high current ratio is an indication that the firm is liquid and has the ability to pay its
current obligations in time as and when they become due. On the other hand, a relatively low
current ratio represents that the liquidity position of the firm is not good and the firm shall not be
able to pay its current liabilities in time without facing difficulties.
Current assets
Current ratio =_____________________
Current liabilities

It indicates the availability of current assets in rupees for every one rupee of
current liability. A ratio equal or near to the rule of thumb of 2:I i.e. current assets double the
current liabilities are considered to be satisfactory. The idea of having doubled the current assets
as compare to current liabilities is to provide for delays and losses in the realization of current
assets.

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CURRENT RATIO

Years Current assets Current liabilities Current ratio

(in crore) (in crore) (in times)

2013 4749 1362 3.49

2014 6072 1201 5.06

2015
5776 1372 4.21

2016 7673 3183 2.41

2017 5822 2192 2.66

0
2013 2014 2015 2016 2017

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2. QUICK RATIO OR ACID TEST OR LIQUID RATIO
Quick ratio is a more rigorous test of liquidity than the current ratio. The term
liquidity refers to the ability of a firm ton pay its short term obligations as and when they become
due.

Quick ratio may be defined as the relationship between quick assets and current
or liquid liabilities. An asset is said to be liquid if it can be converted into cash with in short
period without loss of value. Inventories and prepaid expenses are excluded from the list of
liquid assets because they are now expected to9 be converted to cash immediately without a
sufficient loss of value.

Current asset- inventory

Quick or liquid or acid test ratio=_____________________________
Current liabilities

A rule of thumb or as a convention quick ratio of 1:1 is considered satisfactory. It

is general that if quick assets are equal to current liabilities then he concern may be able to meet
its short term obligations.

A firm having a high quick ratio may not have a satisfactory liquidity position of
it has slow paying debtors

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 QUICK RATIO

Liquid assets Current liabilities Quick ratio

Years
(in lakhs) (in lakhs) (in times)

2013 3229 1362 2.37

2014 3788 1201 3.15

2015 4199 1372 3.06

2016 5942 3183 1.87

2017 4520 2192 2.06

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 quick ratio
6

3
quick ratio

0
2013 2014 2015 2016 2017

3. ABSOLUTE LIQUID RATIO OR CASH RATIO

Cash and bank balance

+Short term securities
Absolute liquid ratio =__________________________
Current liabilities

Debtors and bills receivables are generally more liquid than inventories. Yet there may be
doubts regarding their realization into cash immediately or in time. Hence there is opinion that
the absolute liquid ratio should also e calculated together with current ratio and acid test ratio so
as to exclude even receivables from the current assets and find out the absolute liquid assets.

Absolute liquid assets include cash in hand and at bank and marketable securities or
temporary investments. The acceptable norm for this ratio is 50% i.e., rupee one worth absolute
liquid assets are considered adequate to pay Rs 2 worth current liabilities in times as all the

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creditors are not expected to demand cash at the same time and then cash may be realized from
debtors and investors.

Cash and bank balance

+short term securities
Absolute liquid ratio =____________________________________
Current liabilities

ABSOLUTE LIQUID RATIO

Cash and bank Absolute liquid

Current liabilities
Years balance ratio
(in Crore)
(in Crore) (in times)

2013 98 1361 0.07

2014 331 1201 0.28

2015 243 1372 0.18

2016 70 3183 0.02

2017 1075 2192 0.49

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 The table shows the absolute liquid ratio which helps to know whether absolute assets are
adequate to pay the current liabilities.

Column1
7

Column1
3

0
2013 2014 2015 2016 2017

B. TURNOVER RATIO

1. Debtor turnover ratio

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 A firm sells goods for cash and credit debtors are created in final accounts. Debtors are
expressed to be converted into cash over a short period and they are included in current assets.

Debtors turnover ratio =Credit sales

Average debtors

DEBTOR TURNOVER RATIO

Sales
Years Average debtors Debtors turnover ratio
(in Crore)
(in Crore)

2012 7397 325 22.76

2013 9943 474 20.98

2014 10330 362 28.54

2015 12163 414 29.38

2016 32933 407 80.91

2017 16809 68 247.20

The above table shows the debtors turnover ratio. The ratio decreased in 2006 because of
high debtors. The ratio was increased during 2007 to 2012 due to reduced debtors.

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WORKING CAPITAL TURNOVER-

Sales
Years Working Working capital turnover
(in Crore)
capital

2013 9943 3388 2.93

2014 10330 4871 2.12

2015 12163 4404 2.76

2016 32933 4490 7.33

2017 16809 3631 4.62

Profitability ratios:
1) Return on capital employed = PROFIT BEFORE TAX *100
FUNDS EMPLOYED

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 PBT (in Crore) ROCE
Years Funds Employed

2013 482 9049 5.33

2014 251 10661 2.35

2015 381 10998 3.47

2016 442 17304 2.55

2017 567 16319 3.47

Column1
3

0
2013 2014 2015 2016 2017

2) Return on shareholders’ fund=

Profit after tax / net worth*100

PAT (in ROSF

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 Years Crore) Net worth

2013 341 3555 9.60

2014 175 3642 4.81

2015 258 3689 6.70

2016 360 3959 9.10

2017 401 4271 3.47

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 Series 1
8

4
Series 1
3

0
2013 2014 2015 2016 2017

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 FINDINGS:

After the analysis of the components of current assets & current liabilities and the
trends of working capital, we find that:-

 Current assets are increasing more than current liabilities.

 Position of Debtors to Current Assets is average. This ratio had increased from
the year 2015-13 to 2016-14 showing a liberal credit policy followed by the
company.

 Large part of working capital is involved in maintaining inventory.

 Inventory as a component of current assets is high as compared to the other

components.

 Increase In working capital borrowings and the dependency of S P V R & CO. on

the subsidy has increased.

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 Recommendation

Working capital is one of the most important aspects of operational efficiency of

business .Working Capital plays a very important role in the functioning of any
organization. Both the current assets & current liabilities are very much
influencing factors on the working capital of an organization.

After the discussion and analysis of the financial position of S P V R & CO. Ltd..,
it is clear that the working capital of S P V R & CO. is in sound position. Working
capital is not measurable by only current assets & current liabilities but there are
some other factors also that have an influence on the working capital.

In current assets also, there are two most important factors, which are Debtors and
Inventory, which affect working capital. In S P V R & CO. Ltd. Inventory and
Debtors are efficiently managed to strengthen the position of the organization
both in short term and long terms.

After analyzing and interpreting the financial data of S P V R & CO. with the help
of Ratio Analysis, the following suggestions were given to the organization for
further betterment & improvement in the working capital

 The present status and levels of current assets is extremely good and therefore it
requires proper maintenance.

 The current percentage of inventory is too high which is not good for operational
efficiency and sound working capital and thus, it need to be controlled by using
various inventory management techniques such as JIT of Kanban. Another
alternative would be to have varying stock or inventory levels during the different
seasons or even months and, thereby, altering the production to suit such needs.

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  Cash balances have a lower percentage in current assets. This requires some
concern as cash and bank balances are the most liquid of all current assets. To
improve the cash balances S P V R & CO. needs to improve its average collection
period and also it should invest more money in marketable securities.

Some other concepts such as receivable management should be adopted so that

money can be collected more easily and the working can be smoothening.

As agriculture has changed dramatically since the end of world war two. Food and
fiber productivity soared due to new technologies. Now sustainable agriculture is
the need of the day. The essential nutrient which is required by the plants is
nitrogen, phosphorus and potash.

To meet the need of the nutrients essential for plant growth and good productions
use of fertilizer is a must as we know inorganic fertilizer has its limitation use of
organic fertilizer such as FYM composer green manure etc is most essential for
the sustainable agriculture fallowed by use of inorganic fertilizers and the other
agriculture practices and good product. So S P V R & CO. is always been the
major part of the Indian agricultural and fertilizer industries part and it promises
with his work to enhance the development and has always been given awards for
his contribution to the development of India.

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 BIBLIOGRAPHY:

 Books

Annual Reports of S P V R & CO. Ltd. Of 2014-12,-2015-13,2016-14

Financial Management: By I.M. Pandey

Agreement Files of S P V R & CO.

 Websites

www.S P V R & CO..nic.in

www.investopedia.com

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