Description
Project Report on J.K. Tyre Working Capital Policy
SUMMER TRAINING PROJECT ON WORKING CAPITAL At “J.K. TYRES INDUSTRIES, BANMORE, DISTT- MORENA”
Submitted to
PIONEER INSTITUTE OF PROFESSIONAL STUDIES, INDORE In the partial fulfillment of the degree of M.B.A Batch (2010-2012)
Submitted To ……………………………… SUBMITTED BY JAI PRATAP SINGH BHADAURIA Roll.No.10010064
1
CERTIFICATE
This is to certify that Mr. Jai Pratap Singh Bhadauria is student of Master Of Business Administration IIIrd Sem, for the year 2010 – 2012 from Pioneer Institute of Professional Studies, Indore, has completed his project entitled “WORKING CAPITAL’’ of JK Tyre and Industries Ltd, under my supervision.
Date: - …………… Place: - …………... Mr.Vineet Arora (Manager Account) JK Tyre and Industries Ltd, Banmore, Distt Morena (M.P.)
2
DECLARATION
I, JAI PRATAP SINGH BHADAURIA of “Master Of Business University, Administration” Indore (M.P.) from Pioneer declare Institute that all of the Professional Studies, Indore for Professional Studies, DAVV hereby information, facts and figures gathered by me are first hand in nature and is actually based on my study. Any resemblance from existing works is purely coincidental in nature.
Date:- …………. Place:- …………. JAI PRATAP SINGH BHADAURIA M.B.A. (IIIrd Sem) Financial Administration Pioneer Institute of Professional Studies, Indore DAVV, University
3
PREFACE
In the present scenario of globalization it has become mandatory to acquire practical knowledge to fit in the theory of survival of the fittest with the up gradation in technology level and ever increasing competition one must have a practical view and experiences of various theories of concept of “Financial Management”.
As the part of M.B.A. course, under went 50 days of “ Vocational Training” on complete study of “Financial Statement” of the company & analysis the “Working Capital” of JK Tyre & Industries Ltd; Banmore.
It had a privilege to being “Vocational Training” at JK Tyre & Industries Ltd; Banmore. This Training is important as it is a Vital part of our curriculum during the course and its give me good experience of my work. I had the opportunity to interact with many people from diverse fields, which further enriched my knowledge.
Jai Pratap Singh Bhadauria M.B.A (IIIrd Sem) Pioneer Institute, Indore
4
DAVV University
5
ACKNOWLEDGEMENT
I would like to thanks Mr. Majumdar Sir (G.M. Commercial) JK Tyre Banmore. Who is permitted to me for the trainee? It was my excellent industrial exposure to know the working of JK Tyre & Industries Ltd (BTP). It is my pleasure to express my gratitude towards respected Mr. Vineet Arora (Manager Account) JK Tyre Banmore, who is such a greatest person. He is kindly and cooperative in the nature; I am so kindly to him. It was pleasant experience to working under his supervision. I emitted my gratitude to Mr. Umesh Seth (Asst.Manager). Who is not only give his precious time, but also greatest support and favor to me through which I have learned so much about financial administration in the JK Tyre Banmore. I have gave so kindly thanks to Mr. Sunil Ku. Gupta (Dy.Manager) and Mr.Vineet Arora (Asst.Officer), who were help me understood and collection of data about my topic. I am very thankful to Mr. B. D. Roy (Chief Manager Personnel) and Mr. Anubhav Bhale (Officer Trainee) to give support and help of my summer training programme. Jai Pratap Singh Bhadauria M.B.A (IIIrd Sem) Pioneer Institute, Indore
6
DAVV University
7
CONTENTS
Certificate Declaration Preface Acknowledgement
(i) ( ii ) ( iii ) ( iv )
? Company Profile - 25 ? Company 26 Vision and
6 Mission
? Financial Statement 27 - 36 ? Working Capital Analysis ? Research 37 ? Conclusion 38 ? Suggestion 39 ? Appendix 40 - 42 ? Bibliography 43 Procedure
8
COMPANY PROFILE
? History of JK Industries ? Top Level Management ? Organisation Structure ? Achievement of JK Industries Ltd ? Awards of JK Industries Ltd ? Introduction of JK Tyre & Industries Ltd ? Division of JK Tyre & Industries Ltd ? Products of JK Tyre & Industries Ltd
9
? History of JK Industries Ltd:
Foundation:
In 1947 JK Industries set up a modern automatic tyre and tubes plant atJK Gram near Udaipur in Rajasthan in technical collaboration wiyh general tyre co.U.S.A. and another plant in1991 at Banmore in Madhya Pradesh. The two plants together have a many during capacity of nearly 30 lac tyre P.A . Having pioneered steel belted radial technology in India for over 20 year The company continues to be the leader in radial tyres over 30% of market share.JK Tyre is the first co. in the tyre manufacturing in the world get ISO Certification for its entire operation.
Founder Member:
JK Tyre owes its name to Late Juggilal Singhania, a dynamic personality with abroad vision inspired by the cause of Swadeshi Movement of Mahatma -Gandhi, and driven by the zeal to set up an Indian enterprises, Late Kamlapat Singhania founded JK Organisation in the 19 th century and established a new Industry in India.The process of industrialization and diversification was worthily and sucessfully carried on by Lala Kamlapat’s three sons Sir Padampat, Lala Kailashpat and Lala
10
Laxmipat aided in no small measure by the Late Gopal Krishna son of Sir Padampat Singhania.
Year
1983 1940 1943 1959 1969 1973 1977 1980 1984 1994
Group
JK Cotton Spinning & Weaving Mills Ltd, Kanpur. JK steel & Iron Co.Ltd, Kanpur. JK Engineering, Bombay. JK Rayon, Kanpur. JK Synthetic Ltd, Kota. Fibretech Engineering & Manufacture, Dodri. Steel Baled radial tyre. JK TyrePlant, Kankroli. JK White Cement, Gotan. ISO 9001 Awarded in Ist in World received ISO 14001 Vikrant Tyre Plant, Mysore. TCIL ( Tyre Corporation of India Ltd ) TPM ( Total Productive Maintenance )
Comments
Ist in India.
Ist in world.
11
JK GROUP INDUSTRY Group year Head Office Branch
Industries Location
JK Paper Mills Jaykaygram (Raj) JK Lakshmi Delhi, Jaipur JK Agri Mirgang (U.P.) JK Tyre Kankroli, Banmore JK International 1982 Cement 1990 1977,1991 1992
Year
Head-Office
1962 New-Delhi
New-Delhi Orrisa,
New-Delhi New-Delhi New-Delhi Moskow,Londo n, Hong kong. New-Delhi New-Delhi
JK Pharma Gajraula(UP) JK Sugar Gajraula(UP)
1995 1996
12
13
? Top Level Industries,Ltd:
Name Of Director’s
Management
Of
JK
Designation
: Chairman. : Chairman & Director. : : : : : :
14
(A) Shri Hari Shankar Singhania (B) Shri Raghupati Singhnia Managing (C) Shri Arvind Narottam Lalbhai (D) Shri Arvind Singh Mewar (E) Shri Bakul Jain (F) Shri Rama Kant Vashishtha ( LIC Representative) (G) Shri Om Prakash Khaitan (H) Shri I M Vittala Murthy
Director. Director. Director. Director. Director. Director.
(I) Dr. Vinayshil Gautam (IDBI Nominee) (J) Shri Bharat Hari Singhania Director. (k) Shri Vikram Pati Singhania Dy. Managing Director. (L) Shri Swaroop Chand Sethi Whole-time Director.
: :
Director. Managing : :
ORGANISATION STRUCTURE OF JK INDUSTRIES LTD:
JK Industries Ltd, Tyre Manufacture
Kankroli Tyre Plant
Banmore Tyre Plant (BTP) Unit Head Vice President
Vikrant Tyre Plant
BU#
BU#
BU#
BU#
SSU#
SSU#
SSU#
SSU#
Stock Preperati on
Radial Tyre Bias Tyre Buildin
Engineeri ng Logistic & 15 Dispatch Quality & Technica
G. G.M. ‘Q.A’ G.M.
Commer cial People Support
D.G. G.M. Personn M
G.
D.G.
A.V.P.
Chief Manager
Chief Mgr HRD
ACHIEVEMENTS OF JK INDUSTRIES LTD:
1933 First in India to Manufacture calico prints- Juggilal Kamlapat Cotton Spinning and Weaving Mills Co. Ltd, Kanpur. 1940 First in India to Manufacture Steel Bailing Hoops for Jute and cotton and to make the country self sufficient by meeting the entire demand- JK Iron & steel Co. Ltd, kanpur. 1944 first in India to produce Aluminum virgin metal from Indian Bauxite-aluminum corporation of India Ltd, Jaykaynagar. 1949 First in India to manufacture engineering Files-JK Engineering Files, Bombay. 1959 First in India to set up a continuous process Rayon plant. 1960 First to manufacture a hydraulically operated cane crushing mill for Handsari Suger Plant and completed 100 tons plant-JK Iron & Steel Co.Ltd, Kanpur. 1961 First in world to set up a plant fir production of Hydrosulphite of soda by Sodium Amalgam process-JK Chemicals Ltd, Bombay. 1962 First in India to produce Nylon-6 with its own polymerized raw material- JK Synthetic Ltd, Kota. 1965 First to produce Sodium Sulphoxylate Formaldehyde (Rangolite C of ormosul) in India- JK Chemicals Ltd, Bombay. 1968 First to manufacture T.V. sets in India- JK Electronics, Kanpur.
16
First to manufacture Metallic Cops for synthetic filament yarn industries in India Syntex tube works, Kanpur. 1969 First to manufacture Acrylic fibres- JK Synthetics Ltd. Kota First to develop differentially Dyeable Nylon-JK Synthetic Ltd, Kota. 1973 First in India to license synthetic fibre technology to third party as well as the First to manufacture Synthetic Fibre Machinery Fibretech Engineers & Manufacturers, Dadri. 1976 First in India to produce steel Belted Radial Tyres for three wheelers-JK Tyre Plant, Kankroli. 1984 First in India to produce White Cement through dry process-JK White Cement. 1985 First in India to produce Cathonic Dyeable Polyester fibre-JK Synthetic Ltd, Kota. First in India to produce Nylon Tyre Cord based on Spin Draw Technology-JK Synthetic Ltd, Kota. 1989 First in India to produce Magnetic tapes with Cobalt Technology-JK Magnetic, Surajpur. 1991 Banmore Tyre Plant (BTP) set up with a capacity of 5.7 lacs tyres p.a. 1992 R & D ceter set up at “HASETRI”.
17
1994 India’s first T-Rate d tyre launched Banmore Tyre Plant(BTP) crossed 100 TPD. 1995 Mercedes Benz Launched on JK Steel radials first tyre manufacturer in the world to get ISO 9001. 1996 India’s first dual contact high traction steel radial-aquasonic launched. Introduced Steel wheels. 1997 Awarded the National Export Award for 96-97. Vikrant Tyres (VTL) acquired.India’s first H rated tyre launched. Only tyre manufacturer to get ‘E’ mark certification. HASETRI became the first research Institute in Asia to get ISO 9002. 1998 First tyre manufacturer in the world to get QS 9000. Awarded CAPEXIL’S highest export award for 97-98. 1999 Synergy with VTL in procurement, marketing and production flexibility. Completion of state of the art modernist ion of truck radials. JK Tyre ranked 16 th largest tyre company in the world. ISO-14000 accreditation for environment and safety. 2000 JK Introduced national Go Carting Championships. 2001 Received CAPEXIL award. JK Industries received FOCUSLAC export award for the year 1999-2000.Commendtion certificate of CII Exim. IInd National Go-Carting Championships held.
18
AWARDS OF JK INDUSTRIES LTD:
? Amity HR Excellence Award ? JD Power Award ? Udyog Ratan Award ? PHD Chamber of Commerce and Industry ? JK Tyre attains Superbrand Status ? Press Release: JK Industries Completes Restructuring ? Press Release: JK Tyre's plans to hike the capacity of truck radials facility at Mysore ? Prestigious Padma Bhusha Award to chairman of JK Organisation ? Press Release : JK Tyre, India's No.1 Four Wheeler Tyre Manufacturer ? J.K. Tyre presented the Rajiv Gandhi National Quality Award for the Year 2001 ? Asia Rub Tech 2002 organised by the Indian Rubber Institute and Indian Rubber Manufacturers Research Association, in association with JK Tyre ? Maruti presents JK Tyre National Karting Championship 2002 ? JK Tyre Launches India's First Eco Friendly Coloured Tyres ? JK Tyre awarded commendation certificate for business excellence by CII - EXIM Bank for the year 2001
19
? JK Industries Ltd. received FOCUS LAC Export Award ? Launch of Ultima XPS. ? Team India Championship. JK Tyre wins 2001 Formula Asia
? Jk's Prodigy- Narain puts India on the Formula-I World Map ? JK Tyre Goes Karting at Le Meridien ? JK Tyre's Karun Chandhok wins the First Round of Formula Asia 2001 ? Triumph at Final round of Third JK Tyre National Road Racing Championship ? JK Tyre set to gear up exports. ? J.K. Tyre bags "Top export award" for the year 1999-2000 from Capexil....
20
INTRODUCTION OF JK TYRE AND INDUSTRIES LTD:
21
It is indeed satisfying that the company achieved an high prodution of 67.85 lac tyres and and an impressive growth of 24% and attained a turnover of nearly Rs. 3000 crores during the year. The company pioneered radial technology in India. First time it launched passenger radial tyres in the country in 1979, later on the year 1989, again the first to start production of truck radial tyres at Mysore. JK Tyre has first introduce of EcoFriendly green tyre, high speed v-rated passenger radials and asymmetric tyre. Radialisation in the passenger segment has now reached 90% k.m. truck segment it is fast growing. Truck/bus radialisation is presently 2.8% and is expected to grow to about 15% by 2012. JK Tyre also focus on “Off the road (OTR) tyres. The production of OTR tyre incresed by 84% in the current year.JK Tyre has established of an independent R&D institute “HASETRI”—Hari Research Institute. JK Industries maintaned its leadership by exploiting the growing market as also overcome the challenges posed by the competition from the Domestic players and Imports. The company has been able to deliver world class product to customer in urban and rural areas through commitment to excellence coupled with focus on R&D innovative marketing & a well trained & dedicated work force at all levels.The company is now fully focussed on the tyre business. Shankar Singhania Elastomer and Tyre
22
?
Company TurnOver Graph:- (Rs. Crores)
CAGR OVER 20 YEARS-15%
2970 3000 2500 2000 1500 1000 500 0 1985-86 1990-91 1995-96 2000-01 2004-05 2005-06 209 379 1066 1343 Series1 2400
23
About The JK Tyre & Industries Ltd ( Banmore):
Location short of Gwalior Highway. Registered Office Corp. & Admin. Operation commenced Product Radial and Bias design of Truck and Busses, light commercial vehicles, Passenger cars, jeeps, tractors and Tube Flap. Man power strength =1088 Union Certification : Internal : Banmore tyre plant has received ISO 9002, TS-16949 & ISO-14000 JK Tyre Customers : Maruti, Telco, Mahindra & Mahindra
24
:
Banmore ( M.P.) about 25 km on Delhi-Agra-Gwalior
: :
Kolkata New Delhi : In March-1991
: Manufacture and Marketing of tyre of
:
M & S =248 Workers (Regular)
JK Tyre Competitors Bridgestone
:
MRF,
Apollo,
Ceat,
Birla,
DIVISION OF JK TYRE, BANMORE:
JK Tyre Plant Banmore, having following Division.
?
Cost Department. Purchase Department. Store Department. (A) Raw Material Store. (B) General Store.
?
?
?
Dispatch Department. Excise Department. Administration Department. Account Department.
?
?
?
25
26
PRODUCTS OF JK TYRE & INDUSTRIES LTD:
Truck Tyres – Domestic 121 Level S.No. Brand
1) (DOT) 2) 10 3) STAR 4) 5) JETXTRA 6) STAR LUG 7) JTRK XL 8) (DOT)
Size
9.00*20 10.00 -20 10.00 -20 10.00*20 10.00*20 10.00 -20 10.00 -20 9.00*20 16PR JTK JETKING16PR JTK 16PR JTK 16PR 16PR 16PR 14PR JTK
Truck Tyres – Domestic 115 Level S.No.
1) JETMILE 2) (DOT) 3) 4) 5) JETRIB (E) 6) RIB 7) (DEV)
Size
10.00*20 9.00-20 9.00*20 9.00-20 10.00*20 10.00*20 10.00-20
27
Brand
16PR 14PR FK 14PR FK 14FK-100 18PR 16PR JET PET 53
8) PET-61/JET-R-P 9) ACE 10) TRACKKINGDX/2111 11) RIB
10.00-20 10.00-20
16PR 18RP JET 10.00-20
9.00*20
14PR JET
28
Light Truck – Bias S.No.
12) 13) TRAK 14) PET19JETMILE 15) JETRIB(Export) 16)
Size
7.50-16 8.25*16
Brand
18PR JTRK 39 16PR JET 8.25-16
7.00*16 7.00*16
12PR 14PR JRB
Passenger-Radial S.No.
17) 18) 19) 20) 21) 22) LTO) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37)
Size
145 145/80 145/70 145/70 145/70 145/80 155/65 155/70 155 155/80 165/65 165/80 165/65 165/80 165/80 175/65 175/70 175/70 175/70 175/80 185/70
29
Brand
R12 XPC R12 RALLY R12 ULTIMA R12 ULTIMA R13 ULTIMA R12 ULTIMA RDL XP XP XP (A R13 TORNADO R13 TORNADO R13 ULTIMA R13 ULTIMA (TUBELESS) R13 TORNADO R15 RALLY RADIAL R13 RALLY R14 TORNADO TL R13 UTL XPS TL TORNADO DOTT/TL R13 TORNADO R13 ULTIMA XP R13ULTIMAXPS(T.Les s) R14 RALLY LT R13ULT ROYALE(T.L)]
38) 39)
185/70 185/70
R14 LOGAN R14 VECTRA TL
?
Company Tyre Production Graph: (lac Nos.)
CAGR OVER 20 YEARS-12%
7.9 67.85
9.24 19.23 37.43
1985-86 1990-91 1995-96 2000-01 2004-05 2005-06
57.74
30
? Company Vision and Mission: Vision:? To be amongst the most admired companies in India committed to excellance.
Mission:? To be largest & most profitable tyre company in India. ? To retain No.1 position in Truck & Bus segment and to be amongst top two in all other 4 wheeler tyre segments. ? To make Truck/Bus radial operations profitable & retain leadership in the Passenger radial market. ? To be the largest Indian tyre exporter. Continue to be a significant player in the world in truck & bias market. ? To be a customer obsessed company. ? To enhance value to shareholders & service to all stake holders. ? To develop a highly motivates team with a sense of ananda. ? To excels as a values driven organisation. ? To be the most preferred tyre brand in India.
31
FINANCIAL STATEMENT
? Working Capital Management
? Concept and General Introduction. ? Operating Cycle. ? Statement for Calculation of W.C.M of JK Tyre & Industries Ltd. ? Analysis of W.C.M. of JK Tyre & Industries Ltd.
32
CONCEPT AND GENERAL INTRODUCTION:
The Working Capital is a most important part of financial adinistrtion,It has an important role inprogram of any organization in the present environment of business is surging & heading towards globalisation and achieving such objective. In achieving this goal every organization has appointed some specialization for their Working Capital Management. In Working Capital Management, the current Assets of the company that are changed into the ordinary course of business from one to another i.e, from Cash to Inventory, Inventory to Recievables and Receivables to Cash is a Working capital Management. ? Kinds of W.C.M:
Working Capital
On the basis of concepts
On the basis of time
Gross W/C
Net W/C
Fixed W/c
Variable W/C
Seasonal W/C
Speci
Regular W/C
Reserve W/C
33
Gross Working Capital:
Gross Working Capital refers to the firms investment in Current Assets. Current Assets are the Assets which can be converted into cash within an accounting Year & include cash, short term securities, debtors, bills receivable ( account Receivable or book debt) and stock(inventory).
Net Working Capital:
Net Working Capital refers to the difference between Current Assets & Current Liabilities. Current Liabilities are those claims of outsiders which are expected to mature for payments within an accounting year & include creditors (account payable), bills payable and outstanding expenses.
Fixed Working Capital:
Fixed Working Capital is the minimum level of Current Assets. It is also Known as permanent working capital.
Variable Working Capital:
Variable Working Capital is a extra working capital needed to support the changing production and sales activities of the firm.
Variable Amount (in Rs.) Permanent
Time 34
? Working Capital Cycle:
For Debit
Cash Cash
For Credit
Sales
Raw Material
Semi Finish Goods
Debto rs
Raw material
Semi Finish Goods
Finish Goods
Sale
Finish Goods
? Operating Cycle Of W.C.M: “Operating Cycle of a manufacturing firm”
Purchases Collection Payment Credit-Sale
Inventory Conversion Period
Recievable Conversion Period
? Inventory Conversion Period:
35
ICP = RMCP + WICP + FGCP *360 Raw Material Conversion Period = Raw Material Inventory Raw Material Consumption Work In Progress Conversion Period = Work In Progress Inventory * 360 Cost Of Production Finish Goods Conversion Period = Finished Goods Inventory * 360 Cost Of Good Sold
? Recievable Conversion Period (Debtor Conversion Period):
Recievable Conversion Period = Debtors * 360 Cr. Sales
? Gross Operating Cycle:
Gross Operating Cycle = Inventory Conversion Period + Debtors Conversion Period
?
Net Operating Cycle:
Net Operating Cycle = Gross Operating Cycle – Creditors Defferal Period
?
Credit Deferral Period:
Credit Deferral Period = Creditors * 360 Cr. Purchase
36
?
Factors Determining Requirement:
Of
Working
Capital
a)General Business condition. b)Working Capital Cycle. c) Size of Business / Scale of Operation. d)Production Policy. e)Credit Policy. f) Manufacturing Process. g)Seasonal Variations. h)Business Cycle. i) Price Level Changes. j) Earning Capacity and Dividend Policy. k)Rate of Stock TurnOver. l) Rate of Growth of Business. m) Banking Connection.
37
STATEMENT FOR CALCULATION OF W.C.M 0F JK TYRE & IND LTD:
CURRENT ASSETS, LOANS AND ADVANCE:
30.9.06
Rs. In Crores (10
Million)
30.9.03
30.9.05
30.9.04
? CURRENT ASSETS:
Raw Material 143.04 56.25 Stores & Spares 17.02 13.80 Finish Goods 189.38 127.33 Stock in Progress 19.15 13.93 Debtors(unsecured, considered good): Debts over six month 10.45 15.97 Other Debts 467.44 396.62 Interest Accured on investments 0.18 Cash and Bank Balances: Cash on Hand 0.11 0.06 Remittances in transit and 26.68 6.95 Cheques on Hand Balances with Scheduled Banks: On Current Accounts 6.24 7.38 On Deposit Accounts 6.29 10.93 (pledged with bank Rs.6.17crs; 30.09.2009 Rs. 5.78crs) On Saving Bank Account (Rs. 4498; As at 30.09.2009: Rs. 4345-for Employees security Deposit) ------------------38
129.95 15.88 77.78 20.42 14.11 397.68
92.97 15.86 54.93 14.41 12.49 437.03 0.02 15.53
0.38 0.10 20.44
9.68 5.89
11.28 11.40
-----------
---------
649.22 ---------?
885.98 ----------
692.31 -----------
665.92 ---------
LOANS AND ADVANCES:
Secured Loan Unsecured: Loans 1.52 6.60 97.37 10.08 1.52 9.10 11.16 94.41 0.66 9.94
14.98 83.61 2.79 15.53
Advances recoverable in cash or in kind or for value to be received 89.66 Subsidary Companies Deposit with Govt. Authorities and others 10.96
14.18 --------137.14 --------776.30 ---------
Fringe Benefit Tax Advance Payments Mat Credit Entitlement Income Tax Advance Payments
3.47 0.47 7.15 --------127.54 ---------
0.34 5.07 --------120.52 ---------
5.01 --------110.38 --------812.83 ---------
786.36
1013.52 ------------------
CURRENT LIABILITIES AND PROVISIONS:
?
CURRENT LIABILITIES:
39
Acceptances 7.12 36.36 49.56 Sundry Creditors 549.45 411.98 347.56 Investors Education and Protection Fund (refer note B20 of schedule 14) 2.26 2.11 Investors Education and Protection Fund (refer note B23 of schedule 13) 1.35 Other Liabilities 204.27 195.67 159.84 Interest Accrued but not dues on Loans 6.17 12.08 6.14 ---------------------------769.27 627.74 564.45 ---------------------------?
8.76 459.84 1.89 165.43 8.75 ---------675.13 ----------
PROVISIONS:
Provision for Retirement Benefits 13.00 1.30 4.51 7.70 15.74 0.76 1.20 7.49 1.05 --------26.24 --------12.19 0.76 7.49 0.98 --------21.42 --------701.37 -----------------
9.22 3.29 7.49 0.96 --------20.96 --------649.16 ---------
Provision Tax Taxation Provision for Fringe Benefit Tax Proposed Dividend
Provision for Corporate Benefit Tax 1.08 -------27.59 --------796.86 585.41 ---------
40
? Graph Of “ 4 ” Previous Years ( Current Assets , Loans and
Advances ):
Rs. in Crores {10 Million }
1200 1000 800 600 400 200 0
1013.52 786.36 776.3 812.83
Series1
30.09.03 30.09.04 30.09.05 30.09.06
? Graph Of
“ 4 ” Previous Years ( Current Liabilities and
Provisions ):
Rs. in Crores {10 Million }
800 600 400 200 0
585.41
649.16
701.37
796.86
Series1
30.09.03 30.09.04 30.09.05 30.09.06
41
?
Analysis of W.C.M 0f JK Tyre & Industries Ltd :
“ 4 ” Next Years ( Current Assets , Loans and
? Graph Of
Advances ):
Rs. in Crores {10 Million }
1500 1000
1036
1262.56 1111.52 1187.04
Series1 500 0
30.09.07 30.09.08 30.09.09 30.09.10
? Graph Of “ 4 ” Next Years ( Current Liabilities and Provisions
):
Rs. in Crores {10 Million }
1200 1000 800 600 400 200 0
854.74
923.39
992.04 1060.69
Series1
30.09.07 30.09.08 30.09.09 30.09.10
42
? Research Procedure Industries Ltd:
of
JK
Tyre
and
The company is committed to maintain “Technology Leaderships”, hence, all Research and Development activities are directed towards this core objective. Keeping pace with developments viz., Upgradation of road infrastruture, implementation of express highways and launch of new vehicles , company has been delivering high value added products and services for its entire range through R&D efforts – both in house and in close co-ordination with its technical collabrator,( Continental AG., Germany, fourth largest tyre manufacturer in the world). The R&D efforts are augmented by yhe State-of-the- Art-Facility “ Hari Shankar Singhaia Elastomer and Tyre Research Institute (HASETRI)” which is a specialized institute of its own kind in India dedicated to research in Tyre Materials and Tyre Mechanics. Through continuous R&D efforts at this DSIR recognized institute , large number of products , for both Bias and Radial ,have been successfully introduced in the market. The Hari Shankar Singhania Elastomer & Tyre Research Institute (HASETRI) is the very first of its kind in India. Established in October 1991, HASETRI has already been recognised under SIRO (Scientific and Industrial Research Organisation) by the Department of Scientific & Industrial Research (SDIR), Govt. of India. Additional R&D activities include reduction in tyre weight , new compound and components for improved tyre performance , new tyre asthetics and better product uniformity , introduction of energy efficient processes & improvement in pollution control etc. These initiatives and efforts have been well acclaimed by the customers both in the domestic and international markets.
43
Conclusion
The present study is based on importance of training and development and models of training. And it was found that for organization training and development is necessary. We found that a good training programme not only helps in increasing the efficiency of the worker but also increase the productivity of an organization. So at last we may conclude that Models must be developed for training and development by the organization from time to time.
44
Suggestion
45
Appendix
PROFIT & LOSS ACCOUNT
2006-05 Sales and Other Income 2077.34 Less: Excise Duty ---------2077.34 Increase(+)/Decrease(-) in Finished Goods 37.37 ---------2114.71 ---------Materials & Manufacturing 1221.61 Employees 125.86 Freight and Transportation 66.84 Excise Duty 345.19 Other Expenses 158.33 ---------1917.83 ---------46
Rs. in Crores ( 10 Million ) 2009-10 2009-08 2007-06
INCOME
2952.69 343.48 ---------2609.21 92.16 ----------2718.98 -----------
2383.82 304.74 ----------
2257.87 ----------
2079.08 2257.87 22.32 72.40
---------- ---------2117.84 2185.47
---------- ----------
EXPENDITURE
2150.32 155.70 88.70 155.38 ----------2550.10 -----------
1611.30 1347.77 142.66 83.24 149.10 138.84 73.96 317.63 151.26
----------- --------1986.30 2029.46 -------------------
Interest & Depriciation ) 196.88 Interest 98.70 ---------
OPERATING PROFIT( Before
168.88 76.15 ----------
131.54 64.45 --------67.09
156.01 78.19 ---------
PROFIT BEFORE DEPRICIATION
92.73 97.50 26.57 --------21.80 0.47
77.82 90.22 26.57 88.00 26.66 --------16.48 -
98.18 Depriciation 85.85 Transfer From Capital Reserve 26.72 --------PROFIT BEFORE TAX 39.05 Provision for Current Tax 0.90 Mat Credit Entitlement
--------3.44
(0.47) 1.44 3.31 ----------
(14.52) 1.20 ----------
---------
-
Deferred Tax Provision for Fringe Benefit Tax
---------
PROFIT BEFORE DEFERRED TAX
-
-
16.48 ---------16.76 36.70 4.29 --------12.19 -
38.15 Deferred Tax 16.06 --------PROFIT AFTER TAX 22.09 Additional Excise Duty- Earlier Years Less: Transfer from General Reserve Tax Provision for Earlier Years 1.25 Debenture Redemption Reserve no
47
---------17.05 -
-
36.70 0.28
-
Longer Required 0.45 Surplus from Previous Years 33.21 --------57.00 ---------
3.35 41.53 --------61.93 ---------
1.01 40.32 ---------57.81 ---------
0.45 43.01 --------55.65 --------
APPROPRIATIONS
Debenture Redemption Reserve General Reserve 2.50 Proposed Dividend 7.49 Corporate Dividend Tax 0.96 Surplus Carried to Balance Sheet 43.01 --------57.00 --------5.27 20.00 7.70 1.08 27.88 ---------61.93 ---------5.99 1.75 7.49 1.05 41.53 --------57.81 ---------5.36 1.50 7.49 0.98 40.32 --------55.65 ---------
3.04
48
BALANCE SHEET
Million ) 30.09.2008 30.09.07
Rs. in Crores (10 30.09.2010 30.09.2009
SOURCES OF FUNDS
Shareholders funds Capital 37.46 Reserve and Surplus 856.53
------------
30.79 560.93
---------------
37.46 745.14
----------------------------
37.46
818.76
591.72 856.22
------------
782.60
-----------------------------
893.99
---------------
Loans
Secured Loans 656.51 738.19 Unsecured Loans 94.16 99.87 ---------750.67 838.06 Deferred Tax 1618.36 1739.23 ---------2369.03 2577.29 ---------724.77 219.10 -----------943.87 1535.59 ---------2479.46 ---------671.28 159.22 -----------830.50 1613.10 ---------2443.60 ---------------------------------------
Fixed Assets: Gross Block 1884.26 1855.63 Less: Depreciation 677.15 590.80 ---------Net Block 1207.11 1264.83
APPLICATION OF FUNDS
2084.22 860.03 ----------1224.19 1938.72 764.74 ----------1173.98 -----------
49
Capital Work in Progress 16.43 7.02 ---------1271.85 1246.70
22.51 -----------
61.63 -------------------223.54 250.04 3.05 812.83 701.37 ----------111.46 -----------------------------
1235.61
Investments 61.46 252.26 252.02 Deferred Tax 1.61 Current Assets , Loans and Advances 1013.52 776.30 786.36 Less: Current Liabilities and Provisions 796.86 649.16 585.41 -------------------Net Current Assets 216.66 127.14 200.95 -------------------Miscellaneous Expenditure ( To the extent not written off or adjusted ) 9.16 15.42 14.41 ------------------1535.59 1618.36 1739.23 -------------------
12.94 ---------1613.10 ----------------------------
Bibliography
(1) Shashi.K.Gupta ( Financial Management ) (2) I.M.Pandey. (Financial Management) (3) M.Y.Khan & P.K.Jain. (Financial Management) (4) www.JK Tyre.com
50
51
doc_863655513.doc
Project Report on J.K. Tyre Working Capital Policy
SUMMER TRAINING PROJECT ON WORKING CAPITAL At “J.K. TYRES INDUSTRIES, BANMORE, DISTT- MORENA”
Submitted to
PIONEER INSTITUTE OF PROFESSIONAL STUDIES, INDORE In the partial fulfillment of the degree of M.B.A Batch (2010-2012)
Submitted To ……………………………… SUBMITTED BY JAI PRATAP SINGH BHADAURIA Roll.No.10010064
1
CERTIFICATE
This is to certify that Mr. Jai Pratap Singh Bhadauria is student of Master Of Business Administration IIIrd Sem, for the year 2010 – 2012 from Pioneer Institute of Professional Studies, Indore, has completed his project entitled “WORKING CAPITAL’’ of JK Tyre and Industries Ltd, under my supervision.
Date: - …………… Place: - …………... Mr.Vineet Arora (Manager Account) JK Tyre and Industries Ltd, Banmore, Distt Morena (M.P.)
2
DECLARATION
I, JAI PRATAP SINGH BHADAURIA of “Master Of Business University, Administration” Indore (M.P.) from Pioneer declare Institute that all of the Professional Studies, Indore for Professional Studies, DAVV hereby information, facts and figures gathered by me are first hand in nature and is actually based on my study. Any resemblance from existing works is purely coincidental in nature.
Date:- …………. Place:- …………. JAI PRATAP SINGH BHADAURIA M.B.A. (IIIrd Sem) Financial Administration Pioneer Institute of Professional Studies, Indore DAVV, University
3
PREFACE
In the present scenario of globalization it has become mandatory to acquire practical knowledge to fit in the theory of survival of the fittest with the up gradation in technology level and ever increasing competition one must have a practical view and experiences of various theories of concept of “Financial Management”.
As the part of M.B.A. course, under went 50 days of “ Vocational Training” on complete study of “Financial Statement” of the company & analysis the “Working Capital” of JK Tyre & Industries Ltd; Banmore.
It had a privilege to being “Vocational Training” at JK Tyre & Industries Ltd; Banmore. This Training is important as it is a Vital part of our curriculum during the course and its give me good experience of my work. I had the opportunity to interact with many people from diverse fields, which further enriched my knowledge.
Jai Pratap Singh Bhadauria M.B.A (IIIrd Sem) Pioneer Institute, Indore
4
DAVV University
5
ACKNOWLEDGEMENT
I would like to thanks Mr. Majumdar Sir (G.M. Commercial) JK Tyre Banmore. Who is permitted to me for the trainee? It was my excellent industrial exposure to know the working of JK Tyre & Industries Ltd (BTP). It is my pleasure to express my gratitude towards respected Mr. Vineet Arora (Manager Account) JK Tyre Banmore, who is such a greatest person. He is kindly and cooperative in the nature; I am so kindly to him. It was pleasant experience to working under his supervision. I emitted my gratitude to Mr. Umesh Seth (Asst.Manager). Who is not only give his precious time, but also greatest support and favor to me through which I have learned so much about financial administration in the JK Tyre Banmore. I have gave so kindly thanks to Mr. Sunil Ku. Gupta (Dy.Manager) and Mr.Vineet Arora (Asst.Officer), who were help me understood and collection of data about my topic. I am very thankful to Mr. B. D. Roy (Chief Manager Personnel) and Mr. Anubhav Bhale (Officer Trainee) to give support and help of my summer training programme. Jai Pratap Singh Bhadauria M.B.A (IIIrd Sem) Pioneer Institute, Indore
6
DAVV University
7
CONTENTS
Certificate Declaration Preface Acknowledgement
(i) ( ii ) ( iii ) ( iv )
? Company Profile - 25 ? Company 26 Vision and
6 Mission
? Financial Statement 27 - 36 ? Working Capital Analysis ? Research 37 ? Conclusion 38 ? Suggestion 39 ? Appendix 40 - 42 ? Bibliography 43 Procedure
8
COMPANY PROFILE
? History of JK Industries ? Top Level Management ? Organisation Structure ? Achievement of JK Industries Ltd ? Awards of JK Industries Ltd ? Introduction of JK Tyre & Industries Ltd ? Division of JK Tyre & Industries Ltd ? Products of JK Tyre & Industries Ltd
9
? History of JK Industries Ltd:
Foundation:
In 1947 JK Industries set up a modern automatic tyre and tubes plant atJK Gram near Udaipur in Rajasthan in technical collaboration wiyh general tyre co.U.S.A. and another plant in1991 at Banmore in Madhya Pradesh. The two plants together have a many during capacity of nearly 30 lac tyre P.A . Having pioneered steel belted radial technology in India for over 20 year The company continues to be the leader in radial tyres over 30% of market share.JK Tyre is the first co. in the tyre manufacturing in the world get ISO Certification for its entire operation.
Founder Member:
JK Tyre owes its name to Late Juggilal Singhania, a dynamic personality with abroad vision inspired by the cause of Swadeshi Movement of Mahatma -Gandhi, and driven by the zeal to set up an Indian enterprises, Late Kamlapat Singhania founded JK Organisation in the 19 th century and established a new Industry in India.The process of industrialization and diversification was worthily and sucessfully carried on by Lala Kamlapat’s three sons Sir Padampat, Lala Kailashpat and Lala
10
Laxmipat aided in no small measure by the Late Gopal Krishna son of Sir Padampat Singhania.
Year
1983 1940 1943 1959 1969 1973 1977 1980 1984 1994
Group
JK Cotton Spinning & Weaving Mills Ltd, Kanpur. JK steel & Iron Co.Ltd, Kanpur. JK Engineering, Bombay. JK Rayon, Kanpur. JK Synthetic Ltd, Kota. Fibretech Engineering & Manufacture, Dodri. Steel Baled radial tyre. JK TyrePlant, Kankroli. JK White Cement, Gotan. ISO 9001 Awarded in Ist in World received ISO 14001 Vikrant Tyre Plant, Mysore. TCIL ( Tyre Corporation of India Ltd ) TPM ( Total Productive Maintenance )
Comments
Ist in India.
Ist in world.
11
JK GROUP INDUSTRY Group year Head Office Branch
Industries Location
JK Paper Mills Jaykaygram (Raj) JK Lakshmi Delhi, Jaipur JK Agri Mirgang (U.P.) JK Tyre Kankroli, Banmore JK International 1982 Cement 1990 1977,1991 1992
Year
Head-Office
1962 New-Delhi
New-Delhi Orrisa,
New-Delhi New-Delhi New-Delhi Moskow,Londo n, Hong kong. New-Delhi New-Delhi
JK Pharma Gajraula(UP) JK Sugar Gajraula(UP)
1995 1996
12
13
? Top Level Industries,Ltd:
Name Of Director’s
Management
Of
JK
Designation
: Chairman. : Chairman & Director. : : : : : :
14
(A) Shri Hari Shankar Singhania (B) Shri Raghupati Singhnia Managing (C) Shri Arvind Narottam Lalbhai (D) Shri Arvind Singh Mewar (E) Shri Bakul Jain (F) Shri Rama Kant Vashishtha ( LIC Representative) (G) Shri Om Prakash Khaitan (H) Shri I M Vittala Murthy
Director. Director. Director. Director. Director. Director.
(I) Dr. Vinayshil Gautam (IDBI Nominee) (J) Shri Bharat Hari Singhania Director. (k) Shri Vikram Pati Singhania Dy. Managing Director. (L) Shri Swaroop Chand Sethi Whole-time Director.
: :
Director. Managing : :
ORGANISATION STRUCTURE OF JK INDUSTRIES LTD:
JK Industries Ltd, Tyre Manufacture
Kankroli Tyre Plant
Banmore Tyre Plant (BTP) Unit Head Vice President
Vikrant Tyre Plant
BU#
BU#
BU#
BU#
SSU#
SSU#
SSU#
SSU#
Stock Preperati on
Radial Tyre Bias Tyre Buildin
Engineeri ng Logistic & 15 Dispatch Quality & Technica
G. G.M. ‘Q.A’ G.M.
Commer cial People Support
D.G. G.M. Personn M
G.
D.G.
A.V.P.
Chief Manager
Chief Mgr HRD
ACHIEVEMENTS OF JK INDUSTRIES LTD:
1933 First in India to Manufacture calico prints- Juggilal Kamlapat Cotton Spinning and Weaving Mills Co. Ltd, Kanpur. 1940 First in India to Manufacture Steel Bailing Hoops for Jute and cotton and to make the country self sufficient by meeting the entire demand- JK Iron & steel Co. Ltd, kanpur. 1944 first in India to produce Aluminum virgin metal from Indian Bauxite-aluminum corporation of India Ltd, Jaykaynagar. 1949 First in India to manufacture engineering Files-JK Engineering Files, Bombay. 1959 First in India to set up a continuous process Rayon plant. 1960 First to manufacture a hydraulically operated cane crushing mill for Handsari Suger Plant and completed 100 tons plant-JK Iron & Steel Co.Ltd, Kanpur. 1961 First in world to set up a plant fir production of Hydrosulphite of soda by Sodium Amalgam process-JK Chemicals Ltd, Bombay. 1962 First in India to produce Nylon-6 with its own polymerized raw material- JK Synthetic Ltd, Kota. 1965 First to produce Sodium Sulphoxylate Formaldehyde (Rangolite C of ormosul) in India- JK Chemicals Ltd, Bombay. 1968 First to manufacture T.V. sets in India- JK Electronics, Kanpur.
16
First to manufacture Metallic Cops for synthetic filament yarn industries in India Syntex tube works, Kanpur. 1969 First to manufacture Acrylic fibres- JK Synthetics Ltd. Kota First to develop differentially Dyeable Nylon-JK Synthetic Ltd, Kota. 1973 First in India to license synthetic fibre technology to third party as well as the First to manufacture Synthetic Fibre Machinery Fibretech Engineers & Manufacturers, Dadri. 1976 First in India to produce steel Belted Radial Tyres for three wheelers-JK Tyre Plant, Kankroli. 1984 First in India to produce White Cement through dry process-JK White Cement. 1985 First in India to produce Cathonic Dyeable Polyester fibre-JK Synthetic Ltd, Kota. First in India to produce Nylon Tyre Cord based on Spin Draw Technology-JK Synthetic Ltd, Kota. 1989 First in India to produce Magnetic tapes with Cobalt Technology-JK Magnetic, Surajpur. 1991 Banmore Tyre Plant (BTP) set up with a capacity of 5.7 lacs tyres p.a. 1992 R & D ceter set up at “HASETRI”.
17
1994 India’s first T-Rate d tyre launched Banmore Tyre Plant(BTP) crossed 100 TPD. 1995 Mercedes Benz Launched on JK Steel radials first tyre manufacturer in the world to get ISO 9001. 1996 India’s first dual contact high traction steel radial-aquasonic launched. Introduced Steel wheels. 1997 Awarded the National Export Award for 96-97. Vikrant Tyres (VTL) acquired.India’s first H rated tyre launched. Only tyre manufacturer to get ‘E’ mark certification. HASETRI became the first research Institute in Asia to get ISO 9002. 1998 First tyre manufacturer in the world to get QS 9000. Awarded CAPEXIL’S highest export award for 97-98. 1999 Synergy with VTL in procurement, marketing and production flexibility. Completion of state of the art modernist ion of truck radials. JK Tyre ranked 16 th largest tyre company in the world. ISO-14000 accreditation for environment and safety. 2000 JK Introduced national Go Carting Championships. 2001 Received CAPEXIL award. JK Industries received FOCUSLAC export award for the year 1999-2000.Commendtion certificate of CII Exim. IInd National Go-Carting Championships held.
18
AWARDS OF JK INDUSTRIES LTD:
? Amity HR Excellence Award ? JD Power Award ? Udyog Ratan Award ? PHD Chamber of Commerce and Industry ? JK Tyre attains Superbrand Status ? Press Release: JK Industries Completes Restructuring ? Press Release: JK Tyre's plans to hike the capacity of truck radials facility at Mysore ? Prestigious Padma Bhusha Award to chairman of JK Organisation ? Press Release : JK Tyre, India's No.1 Four Wheeler Tyre Manufacturer ? J.K. Tyre presented the Rajiv Gandhi National Quality Award for the Year 2001 ? Asia Rub Tech 2002 organised by the Indian Rubber Institute and Indian Rubber Manufacturers Research Association, in association with JK Tyre ? Maruti presents JK Tyre National Karting Championship 2002 ? JK Tyre Launches India's First Eco Friendly Coloured Tyres ? JK Tyre awarded commendation certificate for business excellence by CII - EXIM Bank for the year 2001
19
? JK Industries Ltd. received FOCUS LAC Export Award ? Launch of Ultima XPS. ? Team India Championship. JK Tyre wins 2001 Formula Asia
? Jk's Prodigy- Narain puts India on the Formula-I World Map ? JK Tyre Goes Karting at Le Meridien ? JK Tyre's Karun Chandhok wins the First Round of Formula Asia 2001 ? Triumph at Final round of Third JK Tyre National Road Racing Championship ? JK Tyre set to gear up exports. ? J.K. Tyre bags "Top export award" for the year 1999-2000 from Capexil....
20
INTRODUCTION OF JK TYRE AND INDUSTRIES LTD:
21
It is indeed satisfying that the company achieved an high prodution of 67.85 lac tyres and and an impressive growth of 24% and attained a turnover of nearly Rs. 3000 crores during the year. The company pioneered radial technology in India. First time it launched passenger radial tyres in the country in 1979, later on the year 1989, again the first to start production of truck radial tyres at Mysore. JK Tyre has first introduce of EcoFriendly green tyre, high speed v-rated passenger radials and asymmetric tyre. Radialisation in the passenger segment has now reached 90% k.m. truck segment it is fast growing. Truck/bus radialisation is presently 2.8% and is expected to grow to about 15% by 2012. JK Tyre also focus on “Off the road (OTR) tyres. The production of OTR tyre incresed by 84% in the current year.JK Tyre has established of an independent R&D institute “HASETRI”—Hari Research Institute. JK Industries maintaned its leadership by exploiting the growing market as also overcome the challenges posed by the competition from the Domestic players and Imports. The company has been able to deliver world class product to customer in urban and rural areas through commitment to excellence coupled with focus on R&D innovative marketing & a well trained & dedicated work force at all levels.The company is now fully focussed on the tyre business. Shankar Singhania Elastomer and Tyre
22
?
Company TurnOver Graph:- (Rs. Crores)
CAGR OVER 20 YEARS-15%
2970 3000 2500 2000 1500 1000 500 0 1985-86 1990-91 1995-96 2000-01 2004-05 2005-06 209 379 1066 1343 Series1 2400
23
About The JK Tyre & Industries Ltd ( Banmore):
Location short of Gwalior Highway. Registered Office Corp. & Admin. Operation commenced Product Radial and Bias design of Truck and Busses, light commercial vehicles, Passenger cars, jeeps, tractors and Tube Flap. Man power strength =1088 Union Certification : Internal : Banmore tyre plant has received ISO 9002, TS-16949 & ISO-14000 JK Tyre Customers : Maruti, Telco, Mahindra & Mahindra
24
:
Banmore ( M.P.) about 25 km on Delhi-Agra-Gwalior
: :
Kolkata New Delhi : In March-1991
: Manufacture and Marketing of tyre of
:
M & S =248 Workers (Regular)
JK Tyre Competitors Bridgestone
:
MRF,
Apollo,
Ceat,
Birla,
DIVISION OF JK TYRE, BANMORE:
JK Tyre Plant Banmore, having following Division.
?
Cost Department. Purchase Department. Store Department. (A) Raw Material Store. (B) General Store.
?
?
?
Dispatch Department. Excise Department. Administration Department. Account Department.
?
?
?
25
26
PRODUCTS OF JK TYRE & INDUSTRIES LTD:
Truck Tyres – Domestic 121 Level S.No. Brand
1) (DOT) 2) 10 3) STAR 4) 5) JETXTRA 6) STAR LUG 7) JTRK XL 8) (DOT)
Size
9.00*20 10.00 -20 10.00 -20 10.00*20 10.00*20 10.00 -20 10.00 -20 9.00*20 16PR JTK JETKING16PR JTK 16PR JTK 16PR 16PR 16PR 14PR JTK
Truck Tyres – Domestic 115 Level S.No.
1) JETMILE 2) (DOT) 3) 4) 5) JETRIB (E) 6) RIB 7) (DEV)
Size
10.00*20 9.00-20 9.00*20 9.00-20 10.00*20 10.00*20 10.00-20
27
Brand
16PR 14PR FK 14PR FK 14FK-100 18PR 16PR JET PET 53
8) PET-61/JET-R-P 9) ACE 10) TRACKKINGDX/2111 11) RIB
10.00-20 10.00-20
16PR 18RP JET 10.00-20
9.00*20
14PR JET
28
Light Truck – Bias S.No.
12) 13) TRAK 14) PET19JETMILE 15) JETRIB(Export) 16)
Size
7.50-16 8.25*16
Brand
18PR JTRK 39 16PR JET 8.25-16
7.00*16 7.00*16
12PR 14PR JRB
Passenger-Radial S.No.
17) 18) 19) 20) 21) 22) LTO) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37)
Size
145 145/80 145/70 145/70 145/70 145/80 155/65 155/70 155 155/80 165/65 165/80 165/65 165/80 165/80 175/65 175/70 175/70 175/70 175/80 185/70
29
Brand
R12 XPC R12 RALLY R12 ULTIMA R12 ULTIMA R13 ULTIMA R12 ULTIMA RDL XP XP XP (A R13 TORNADO R13 TORNADO R13 ULTIMA R13 ULTIMA (TUBELESS) R13 TORNADO R15 RALLY RADIAL R13 RALLY R14 TORNADO TL R13 UTL XPS TL TORNADO DOTT/TL R13 TORNADO R13 ULTIMA XP R13ULTIMAXPS(T.Les s) R14 RALLY LT R13ULT ROYALE(T.L)]
38) 39)
185/70 185/70
R14 LOGAN R14 VECTRA TL
?
Company Tyre Production Graph: (lac Nos.)
CAGR OVER 20 YEARS-12%
7.9 67.85
9.24 19.23 37.43
1985-86 1990-91 1995-96 2000-01 2004-05 2005-06
57.74
30
? Company Vision and Mission: Vision:? To be amongst the most admired companies in India committed to excellance.
Mission:? To be largest & most profitable tyre company in India. ? To retain No.1 position in Truck & Bus segment and to be amongst top two in all other 4 wheeler tyre segments. ? To make Truck/Bus radial operations profitable & retain leadership in the Passenger radial market. ? To be the largest Indian tyre exporter. Continue to be a significant player in the world in truck & bias market. ? To be a customer obsessed company. ? To enhance value to shareholders & service to all stake holders. ? To develop a highly motivates team with a sense of ananda. ? To excels as a values driven organisation. ? To be the most preferred tyre brand in India.
31
FINANCIAL STATEMENT
? Working Capital Management
? Concept and General Introduction. ? Operating Cycle. ? Statement for Calculation of W.C.M of JK Tyre & Industries Ltd. ? Analysis of W.C.M. of JK Tyre & Industries Ltd.
32
CONCEPT AND GENERAL INTRODUCTION:
The Working Capital is a most important part of financial adinistrtion,It has an important role inprogram of any organization in the present environment of business is surging & heading towards globalisation and achieving such objective. In achieving this goal every organization has appointed some specialization for their Working Capital Management. In Working Capital Management, the current Assets of the company that are changed into the ordinary course of business from one to another i.e, from Cash to Inventory, Inventory to Recievables and Receivables to Cash is a Working capital Management. ? Kinds of W.C.M:
Working Capital
On the basis of concepts
On the basis of time
Gross W/C
Net W/C
Fixed W/c
Variable W/C
Seasonal W/C
Speci
Regular W/C
Reserve W/C
33
Gross Working Capital:
Gross Working Capital refers to the firms investment in Current Assets. Current Assets are the Assets which can be converted into cash within an accounting Year & include cash, short term securities, debtors, bills receivable ( account Receivable or book debt) and stock(inventory).
Net Working Capital:
Net Working Capital refers to the difference between Current Assets & Current Liabilities. Current Liabilities are those claims of outsiders which are expected to mature for payments within an accounting year & include creditors (account payable), bills payable and outstanding expenses.
Fixed Working Capital:
Fixed Working Capital is the minimum level of Current Assets. It is also Known as permanent working capital.
Variable Working Capital:
Variable Working Capital is a extra working capital needed to support the changing production and sales activities of the firm.
Variable Amount (in Rs.) Permanent
Time 34
? Working Capital Cycle:
For Debit
Cash Cash
For Credit
Sales
Raw Material
Semi Finish Goods
Debto rs
Raw material
Semi Finish Goods
Finish Goods
Sale
Finish Goods
? Operating Cycle Of W.C.M: “Operating Cycle of a manufacturing firm”
Purchases Collection Payment Credit-Sale
Inventory Conversion Period
Recievable Conversion Period
? Inventory Conversion Period:
35
ICP = RMCP + WICP + FGCP *360 Raw Material Conversion Period = Raw Material Inventory Raw Material Consumption Work In Progress Conversion Period = Work In Progress Inventory * 360 Cost Of Production Finish Goods Conversion Period = Finished Goods Inventory * 360 Cost Of Good Sold
? Recievable Conversion Period (Debtor Conversion Period):
Recievable Conversion Period = Debtors * 360 Cr. Sales
? Gross Operating Cycle:
Gross Operating Cycle = Inventory Conversion Period + Debtors Conversion Period
?
Net Operating Cycle:
Net Operating Cycle = Gross Operating Cycle – Creditors Defferal Period
?
Credit Deferral Period:
Credit Deferral Period = Creditors * 360 Cr. Purchase
36
?
Factors Determining Requirement:
Of
Working
Capital
a)General Business condition. b)Working Capital Cycle. c) Size of Business / Scale of Operation. d)Production Policy. e)Credit Policy. f) Manufacturing Process. g)Seasonal Variations. h)Business Cycle. i) Price Level Changes. j) Earning Capacity and Dividend Policy. k)Rate of Stock TurnOver. l) Rate of Growth of Business. m) Banking Connection.
37
STATEMENT FOR CALCULATION OF W.C.M 0F JK TYRE & IND LTD:
CURRENT ASSETS, LOANS AND ADVANCE:
30.9.06
Rs. In Crores (10
Million)
30.9.03
30.9.05
30.9.04
? CURRENT ASSETS:
Raw Material 143.04 56.25 Stores & Spares 17.02 13.80 Finish Goods 189.38 127.33 Stock in Progress 19.15 13.93 Debtors(unsecured, considered good): Debts over six month 10.45 15.97 Other Debts 467.44 396.62 Interest Accured on investments 0.18 Cash and Bank Balances: Cash on Hand 0.11 0.06 Remittances in transit and 26.68 6.95 Cheques on Hand Balances with Scheduled Banks: On Current Accounts 6.24 7.38 On Deposit Accounts 6.29 10.93 (pledged with bank Rs.6.17crs; 30.09.2009 Rs. 5.78crs) On Saving Bank Account (Rs. 4498; As at 30.09.2009: Rs. 4345-for Employees security Deposit) ------------------38
129.95 15.88 77.78 20.42 14.11 397.68
92.97 15.86 54.93 14.41 12.49 437.03 0.02 15.53
0.38 0.10 20.44
9.68 5.89
11.28 11.40
-----------
---------
649.22 ---------?
885.98 ----------
692.31 -----------
665.92 ---------
LOANS AND ADVANCES:
Secured Loan Unsecured: Loans 1.52 6.60 97.37 10.08 1.52 9.10 11.16 94.41 0.66 9.94
14.98 83.61 2.79 15.53
Advances recoverable in cash or in kind or for value to be received 89.66 Subsidary Companies Deposit with Govt. Authorities and others 10.96
14.18 --------137.14 --------776.30 ---------
Fringe Benefit Tax Advance Payments Mat Credit Entitlement Income Tax Advance Payments
3.47 0.47 7.15 --------127.54 ---------
0.34 5.07 --------120.52 ---------
5.01 --------110.38 --------812.83 ---------
786.36
1013.52 ------------------
CURRENT LIABILITIES AND PROVISIONS:
?
CURRENT LIABILITIES:
39
Acceptances 7.12 36.36 49.56 Sundry Creditors 549.45 411.98 347.56 Investors Education and Protection Fund (refer note B20 of schedule 14) 2.26 2.11 Investors Education and Protection Fund (refer note B23 of schedule 13) 1.35 Other Liabilities 204.27 195.67 159.84 Interest Accrued but not dues on Loans 6.17 12.08 6.14 ---------------------------769.27 627.74 564.45 ---------------------------?
8.76 459.84 1.89 165.43 8.75 ---------675.13 ----------
PROVISIONS:
Provision for Retirement Benefits 13.00 1.30 4.51 7.70 15.74 0.76 1.20 7.49 1.05 --------26.24 --------12.19 0.76 7.49 0.98 --------21.42 --------701.37 -----------------
9.22 3.29 7.49 0.96 --------20.96 --------649.16 ---------
Provision Tax Taxation Provision for Fringe Benefit Tax Proposed Dividend
Provision for Corporate Benefit Tax 1.08 -------27.59 --------796.86 585.41 ---------
40
? Graph Of “ 4 ” Previous Years ( Current Assets , Loans and
Advances ):
Rs. in Crores {10 Million }
1200 1000 800 600 400 200 0
1013.52 786.36 776.3 812.83
Series1
30.09.03 30.09.04 30.09.05 30.09.06
? Graph Of
“ 4 ” Previous Years ( Current Liabilities and
Provisions ):
Rs. in Crores {10 Million }
800 600 400 200 0
585.41
649.16
701.37
796.86
Series1
30.09.03 30.09.04 30.09.05 30.09.06
41
?
Analysis of W.C.M 0f JK Tyre & Industries Ltd :
“ 4 ” Next Years ( Current Assets , Loans and
? Graph Of
Advances ):
Rs. in Crores {10 Million }
1500 1000
1036
1262.56 1111.52 1187.04
Series1 500 0
30.09.07 30.09.08 30.09.09 30.09.10
? Graph Of “ 4 ” Next Years ( Current Liabilities and Provisions
):
Rs. in Crores {10 Million }
1200 1000 800 600 400 200 0
854.74
923.39
992.04 1060.69
Series1
30.09.07 30.09.08 30.09.09 30.09.10
42
? Research Procedure Industries Ltd:
of
JK
Tyre
and
The company is committed to maintain “Technology Leaderships”, hence, all Research and Development activities are directed towards this core objective. Keeping pace with developments viz., Upgradation of road infrastruture, implementation of express highways and launch of new vehicles , company has been delivering high value added products and services for its entire range through R&D efforts – both in house and in close co-ordination with its technical collabrator,( Continental AG., Germany, fourth largest tyre manufacturer in the world). The R&D efforts are augmented by yhe State-of-the- Art-Facility “ Hari Shankar Singhaia Elastomer and Tyre Research Institute (HASETRI)” which is a specialized institute of its own kind in India dedicated to research in Tyre Materials and Tyre Mechanics. Through continuous R&D efforts at this DSIR recognized institute , large number of products , for both Bias and Radial ,have been successfully introduced in the market. The Hari Shankar Singhania Elastomer & Tyre Research Institute (HASETRI) is the very first of its kind in India. Established in October 1991, HASETRI has already been recognised under SIRO (Scientific and Industrial Research Organisation) by the Department of Scientific & Industrial Research (SDIR), Govt. of India. Additional R&D activities include reduction in tyre weight , new compound and components for improved tyre performance , new tyre asthetics and better product uniformity , introduction of energy efficient processes & improvement in pollution control etc. These initiatives and efforts have been well acclaimed by the customers both in the domestic and international markets.
43
Conclusion
The present study is based on importance of training and development and models of training. And it was found that for organization training and development is necessary. We found that a good training programme not only helps in increasing the efficiency of the worker but also increase the productivity of an organization. So at last we may conclude that Models must be developed for training and development by the organization from time to time.
44
Suggestion
45
Appendix
PROFIT & LOSS ACCOUNT
2006-05 Sales and Other Income 2077.34 Less: Excise Duty ---------2077.34 Increase(+)/Decrease(-) in Finished Goods 37.37 ---------2114.71 ---------Materials & Manufacturing 1221.61 Employees 125.86 Freight and Transportation 66.84 Excise Duty 345.19 Other Expenses 158.33 ---------1917.83 ---------46
Rs. in Crores ( 10 Million ) 2009-10 2009-08 2007-06
INCOME
2952.69 343.48 ---------2609.21 92.16 ----------2718.98 -----------
2383.82 304.74 ----------
2257.87 ----------
2079.08 2257.87 22.32 72.40
---------- ---------2117.84 2185.47
---------- ----------
EXPENDITURE
2150.32 155.70 88.70 155.38 ----------2550.10 -----------
1611.30 1347.77 142.66 83.24 149.10 138.84 73.96 317.63 151.26
----------- --------1986.30 2029.46 -------------------
Interest & Depriciation ) 196.88 Interest 98.70 ---------
OPERATING PROFIT( Before
168.88 76.15 ----------
131.54 64.45 --------67.09
156.01 78.19 ---------
PROFIT BEFORE DEPRICIATION
92.73 97.50 26.57 --------21.80 0.47
77.82 90.22 26.57 88.00 26.66 --------16.48 -
98.18 Depriciation 85.85 Transfer From Capital Reserve 26.72 --------PROFIT BEFORE TAX 39.05 Provision for Current Tax 0.90 Mat Credit Entitlement
--------3.44
(0.47) 1.44 3.31 ----------
(14.52) 1.20 ----------
---------
-
Deferred Tax Provision for Fringe Benefit Tax
---------
PROFIT BEFORE DEFERRED TAX
-
-
16.48 ---------16.76 36.70 4.29 --------12.19 -
38.15 Deferred Tax 16.06 --------PROFIT AFTER TAX 22.09 Additional Excise Duty- Earlier Years Less: Transfer from General Reserve Tax Provision for Earlier Years 1.25 Debenture Redemption Reserve no
47
---------17.05 -
-
36.70 0.28
-
Longer Required 0.45 Surplus from Previous Years 33.21 --------57.00 ---------
3.35 41.53 --------61.93 ---------
1.01 40.32 ---------57.81 ---------
0.45 43.01 --------55.65 --------
APPROPRIATIONS
Debenture Redemption Reserve General Reserve 2.50 Proposed Dividend 7.49 Corporate Dividend Tax 0.96 Surplus Carried to Balance Sheet 43.01 --------57.00 --------5.27 20.00 7.70 1.08 27.88 ---------61.93 ---------5.99 1.75 7.49 1.05 41.53 --------57.81 ---------5.36 1.50 7.49 0.98 40.32 --------55.65 ---------
3.04
48
BALANCE SHEET
Million ) 30.09.2008 30.09.07
Rs. in Crores (10 30.09.2010 30.09.2009
SOURCES OF FUNDS
Shareholders funds Capital 37.46 Reserve and Surplus 856.53
------------
30.79 560.93
---------------
37.46 745.14
----------------------------
37.46
818.76
591.72 856.22
------------
782.60
-----------------------------
893.99
---------------
Loans
Secured Loans 656.51 738.19 Unsecured Loans 94.16 99.87 ---------750.67 838.06 Deferred Tax 1618.36 1739.23 ---------2369.03 2577.29 ---------724.77 219.10 -----------943.87 1535.59 ---------2479.46 ---------671.28 159.22 -----------830.50 1613.10 ---------2443.60 ---------------------------------------
Fixed Assets: Gross Block 1884.26 1855.63 Less: Depreciation 677.15 590.80 ---------Net Block 1207.11 1264.83
APPLICATION OF FUNDS
2084.22 860.03 ----------1224.19 1938.72 764.74 ----------1173.98 -----------
49
Capital Work in Progress 16.43 7.02 ---------1271.85 1246.70
22.51 -----------
61.63 -------------------223.54 250.04 3.05 812.83 701.37 ----------111.46 -----------------------------
1235.61
Investments 61.46 252.26 252.02 Deferred Tax 1.61 Current Assets , Loans and Advances 1013.52 776.30 786.36 Less: Current Liabilities and Provisions 796.86 649.16 585.41 -------------------Net Current Assets 216.66 127.14 200.95 -------------------Miscellaneous Expenditure ( To the extent not written off or adjusted ) 9.16 15.42 14.41 ------------------1535.59 1618.36 1739.23 -------------------
12.94 ---------1613.10 ----------------------------
Bibliography
(1) Shashi.K.Gupta ( Financial Management ) (2) I.M.Pandey. (Financial Management) (3) M.Y.Khan & P.K.Jain. (Financial Management) (4) www.JK Tyre.com
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