FM - Tamboli Casting - Bhavnagar

Embed Size (px)

Citation preview

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    1/90

    1

    A

    Project Repot

    On

    Working Capital Management and profitability analysis of Tamboli Casting

    Ltd. Within time frame of 2007 to 2010

    At

    BHAVNAGAR

    Under the Guidance of

    Mr. HARSHADBHAI PATEL

    Under the Guidance of

    Ms.ARPITA VAGHELA

    Institution

    Submitted to

    Gujarat Technological University - Ahmedabad

    Prepared By:

    DIPALI H. SHAH

    M.B.A. Sem. II,Seat No013916

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    2/90

    2

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    3/90

    3

    K. K. Parekh Institute of Management Student Amreli

    Dr. Jivraj Mehta Vidhya Vihar Campus Lathi road Amreli

    Ph: (02792) 223509 fax: (02792) 223509

    E-mail: [email protected]

    Web: kkpimsamreli.com

    DIRECTORS RECOMMENDATION

    TO,

    The Registrar

    Gujarat Technological University

    Ahmedabad

    Subject: MBA Summer Training Project Report

    Respected Sir,

    I am recommending the Summer Training Project entitled- Working capital

    Management and profitability analysis of Tamboli Casting Ltd. Within time frame of

    2007 to 2010 prepared by DIPALI H. SHAH at Tamboli Casting Ltd.

    BHAVANAGAR as the partial fulfillment of the University requirement for the

    award of MBA degree of Gujarat Technology UniversityAhmedabad.

    Date: - Thanking You,

    Place: - Amreli Yours Faithfully

    Director

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    4/90

    4

    S T U D E N T D E C L A R A T I O N

    I the undersigned student DIPALI H. SHAH of K. K. Parekh Institute of

    Management Studies Amreli M.B.A. II Semester, hereby declare that, the

    project onWorking Capital Management and profitability analysis of Tamboli Casting

    Ltd. Within time frame of 2007 to 2010 is my own work.

    In the partial fulfillment of Master Degree of Business Administration, I had

    undergone project work at ---- Tamboli Casting Ltd.under the guidance ofJASMIN

    MADAM K. K. Parekh Institute of Management Studies Amreli and submitted to

    Gujarat Technological University, Ahmedabad.

    This project work is my original work and has not been submitted to any where

    earlier.

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    5/90

    5

    PREFACE

    Whatever I have learn and I will learn in theories and books may or may not be

    directly useful to me but, to make that knowledge applicable and usable I need to go

    through practical aspect which I will gain through this project.

    Out of the two learning methods practical learning is very effective and efficient and

    leads to the better understanding of the subject. Whenever the matter is concern

    about management we must go to words prediction and result that can be possible

    only practical aspect.

    Being a student of management i.e. MBA and doing specialization in finance I find

    the need to understand the market trend closely. So, that I can judge what is the

    actual position of the market in this competition era. I have to touch the practical

    aspect and to understand what is the different between practical knowledge and

    what I have in theories, so that I divert my knowledge to wards reality and make thetheoretical knowledge applicable in practical life.

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    6/90

    6

    ACKNOWLEDGEMENT

    The work presented here is not a single effort as each and every person associated

    with this project has contributed in the successful accomplishment of this piece of

    work and is being thanked for their efforts.

    First of all I would like to thanks DR. Vishal patidar , my project guide Ms Arpita

    vaghela & Chairman of Tamboli casting ltd. Mr.Bipinbhai Tamboli and also my

    Family, Friends and colleagues and the respondents. And my college K.K.PAREKH

    INSTITUTE OF MANAGENET STUDIES AMRELI. for giving me such a great

    opportunity for learning and developing our self during the project and helping me

    extensively in our problems regarding the project and giving us their guidance on the

    subject. We sincerely appreciate their cooperation and support.

    Finally, we would like to thank all those people who have directly or indirectly

    helped us and guided us for our project.

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    7/90

    7

    EXECUTIVE SUMMARY

    While any research is to be done there is an executive summary. Executive

    summary is very important from this you create the right and a good impression.

    From the executive summary reader can get enough information to know what is

    the subject contains from that a person get the idea about what type of research

    study is done. Executive summary contains what is the problem behind the subject,

    what is the project about, and what is the conclusion part. Reader can get all the

    highlight of the report without seeing other content.

    As my topic is Working capital and Profitability Analysis of

    Tamboli Casting Ltd, The Profitability is one of the main Objective of any of the

    business. And to measure profitability working capital plays a most important role.

    The Research is created for to check how the working capital management affects

    the profitability of the firm is it positive affects or negative for that various stastical

    tools have been used. The study seems important to the company that research is

    conducted. Finally the subject is more practical nature rather then brings out fact of

    the Research.

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    8/90

    8

    INDEX

    NO. NAME OF CONTENT PAGE NO.

    1 OVERVIEW OF INVESTMENT CASSTING INDUSTRY 11.1 Investment casting 1

    1.2 History 1

    1.3 Steps 2

    1.4Definition

    3

    2 COMPANY PROFILE 42.1 Organization Chart 6

    2.2 SWOT Analysis 7

    2.3 Recognition & Achievement 8

    3 GENERAL INFORMATION 10

    4 STUDY OF FOUR FUNCTIONAL AREAS 12

    4.1 PRODUCTION DEPARTMENT 13A. What is Investment Casting 14

    B. Process 16

    C. Manufacturing Facilities 16D. Machining Facilities 22

    E. Value added Process 23

    F. Quality Control 25

    J. Process: Research & Development 27

    4.2 MARKETING DEPARTMENT 28A. Objective 29

    B Activity 29

    4.3 HUMAN RESOURCE DEPARTMENT 31

    A. Information 32B. Manpower Planning 32

    C. Induction Training 33

    D. In house Training 34

    E. Performance Appraisal 35

    F. SHEQ Policy 36

    4.4 FINANCE DEPARTMENT 37

    A. Introduction 38

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    9/90

    9

    B. Financial Hierarchy of TCL 39

    C. Financial Planning 40

    5. RESEARCH METHODOLOGY 415.1 Introduction 41

    5.2 Literature Review 42

    A. Review of Literature 42

    B. Review of Research 44

    5.3 Define the problem 46

    5.4 Objective of the study 47

    5.5 Limitations of the study 48

    5.6 Research design 49

    5.7 Rational Of the Study 505.8 Variable/Tool 51

    5.9 Hypothesis Testing 53

    5.10 Data collection 54

    5.11 Analysis used in the study 57

    5.12 Data analysis 58

    5.13 Descriptive Analysis 58

    5.14 Quantitative Analysis 63

    5.15 Findings 74

    5.16 Suggestions 75

    5.17 Conclusion 76

    6. Appendix 77

    7. Bibliography 81

    1. OVERVIEW OF INVESTMENT CASTING INDUSTRY

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    10/90

    10

    1.1 Investment casting:

    In industry investment casting and the lost wax process are terms used synonymously. It is

    for very obvious and logical reasons that this process has been given these titles. It is

    named the lost wax process because the wax from which the patterns are made is lost or

    melted during the casting process The title investment casting comes from the process

    deemed as investing. When a pattern is invested it is encased in a flask or a shell made of

    slurry and refractory material.

    During investment casting both the pattern and the mold are destroyed. The pattern is melted

    out in order to pour the melted metal into the cast. The cast is later destroyed when it isbroken away to release the artifact the artifact. While this sounds wasteful it is also very

    beneficial to those who wish to make one of a kind artifacts or objects with special

    specifications.

    1.2 History

    The history of investment casting is very illusive. According to Johnson (1955), Authorities

    are not certain where or when it started, but both ancient Egypt and ancient China have

    provided museum pieces that could only have been fabricated by this method, thus giving

    authentic evidence that the process was used successfully several thousand years ago .

    Another author, Richard L. Little (1977), however would argue that the lost wax process

    began with the early settlers along the Mediterranean. Although both authors point toward

    the Mediterranean as being a point of origin for this process, neither one could provide a

    specific date for its birth.

    Investment casting may be called the lost wax process because of its unique way of creating

    artifacts, but it was also for a long time a lost process. For some unknown reason this

    process was unused and forgotten in the western civilization until its rediscovery during the

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    11/90

    11

    Italian Renaissance (Little,1977)It existed in china for centuries, and Cellini employed a

    form of it in Italy in the sixteenth century (Black, DeGarmo, and Kohser,1984,). From that

    point on investment casting was more commonly used for art and small special tasks.

    Dentists have also used the process since the turn of the century. It did not, however, come

    into common industrial use until World War II when high quality jet turbine blades and

    supercharger buckets for aircraft engines were in great demand (Wright,1999,). Since then

    investment casting has become an important part of industry due to its ability to create

    unique parts with complex shapes and extremely fine surface details.

    1.3 Steps

    Investment casting involves the following steps:

    1. Produce a master pattern.

    2. From the master pattern, produce a master die.

    3. Produce the wax patterns.

    4. Assemble the wax patterns to a common wax sprue.

    5. Coat the cluster with a thin layer of investment material.

    6. Produce the final investment around the coated cluster.

    7. Vibrate the flask to remove the entrapped air and settle the investment material aroundthe cluster.

    8. Allow the investment to harden.

    9. Melt or dissolve the wax pattern to permit it to run out of the mold.

    10. Preheat the mold preparatory to pouring.

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    12/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    13/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    14/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    15/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    16/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    17/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    18/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    19/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    20/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    21/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    22/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    23/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    24/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    25/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    26/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    27/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    28/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    29/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    30/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    31/90

    31

    D.MACHINING FACILITIES

    1.CNC & Conventional Machining:

    In-house CNC Machines (Turning Centers & VMCs) from DECKEL MAHO- Germany and

    Mazak- Japan, Zoller Tool Presetter, Haimer shrink fit technology for tool holders,

    Conventional machine like Lathes, Broaching Machine, Drilling Machine and dedicated

    vendors for conventional machining like drilling, tapping, milling, grinding, honing, lapping

    etc.

    Machining

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    32/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    33/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    34/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    35/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    36/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    37/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    38/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    39/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    40/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    41/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    42/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    43/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    44/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    45/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    46/90

    46

    4.4 FINANCEDEPARTMENT

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    47/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    48/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    49/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    50/90

    50

    5. RESEARCH METHODOLOGY

    5.1 INTRODUCTION:

    RESEARCH:

    Research can be defined in simple word as systematized effort to gain new knowledge. And

    broadly it can be defined as A careful investigation or inquiry especially through search for

    new facts in any branch of knowledge.

    RESERCH METHODOLOGY:

    Basically research methodology is the method one employs to drive data or information

    from the available source.

    Research Methodology is a way to systematically solve the problem. It can be understood as

    a science of studying how research is done systematically. It is necessary to know not only

    the research methods but also its methodology.Resercher also need to know the criteria by

    which they can decide that certain techniques and procedures will be applicable to certain

    problems and others will not.

    5.2 LITERATURE REVIEW:

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    51/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    52/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    53/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    54/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    55/90

    55

    5.3 DEFINE THE PROBLEM

    Working Capital Management and profitability analysis of TamboliCasting Ltd. Within timeframe of 2007 to 2010

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    56/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    57/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    58/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    59/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    60/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    61/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    62/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    63/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    64/90

    64

    Interview:

    Interviewing is a technique that is primarily used to gain an understanding of the underlying

    reasons and motivations for peoples attitudes, preferences or behaviour. Interviews can beundertaken on a personal one-to-one basis or in a group. They can be conducted at work, athome, in the street or in a shopping centre, or some other agreed location.

    observation

    Observation involves recording the behavioral patterns of people, objects and events in asystematic manner. Observational methods may be:

    structured or unstructured

    disguised

    natural

    personal

    mechanical

    In the TCL the both method were used for data collection interview had been organized forauditor and manager.

    2. Secondary Data:

    Secondary sources are interceptions of primary data. Published data and the data

    collected in the past or other parties are called secondary data.

    Encyclopedias, textbooks, handbooks, magazine and newspaper articles, and most

    newscasts (nearly all reference materials) are considered secondary information sources.

    There are mainly Two type of sources:

    a. External source

    b. Internal source

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    65/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    66/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    67/90

    67

    I have performed two types of analysis, descriptive and quantitative. The results of these two

    types of analysis are discussed in this section.

    5.13 DESCRIPTIVE ANALYSIS

    Descriptive analysis shows the average, and standard deviation of the different variables of

    interest in the study. It also presents the minimum and maximum values of the variables

    which help in getting a picture about the maximum and minimum values a variable canachieve.

    Calculation for components:

    1. Net Operating Profitability:

    Operating Income + DepreciationNet Operating Profitability = ----------------------------------------

    Total assetFinancial asset

    YEAR CALCULATION ANSWER

    2006-07 19587061 + 6942347----------------------------------------

    15343557435287642

    0.22

    2007-08 46317841 + 9388405----------------------------------------

    23084679060833873

    0.33

    2008-09 12707023 + 11941154----------------------------------------

    27355893956780241

    0.11

    2009-10 26574881 + 19274596----------------------------------------

    32134204749533483

    0.17

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    68/90

    68

    2.Average Collection Period:

    Account receivableAverage Collection Period = ---------------------------------------- * 365

    Sales

    YEAR CALCULATION ANSWER

    2006-07 51605248---------------------------------------- * 365

    11350551

    166 Days

    2007-08 58161057---------------------------------------- * 365

    216712689

    98 Days

    2008-09 48940192---------------------------------------- * 365

    310579010

    58 Days

    2009-10 51692831---------------------------------------- * 365

    176349123

    107 Days

    3. Account Payable in Days:

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    69/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    70/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    71/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    72/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    73/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    74/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    75/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    76/90

    76

    For Average Payment Period (APP)

    t = 0.43 4 - 2

    1-(0.43)2

    = 0.67

    tC = 2.92

    There is no relationship between Average payment period and Net Operating profitability

    analysis so null hypothesis is accepted

    For Inventory Turnover In Days (ITID)

    t = 0.28 4 - 2

    1-(0.28)2

    = 0.41

    tC = 2.92

    There is no relationship between Inventory Turnover in days period and Net Operating

    profitability analysis

    so null hypothesis is accepted.

    For Cash Conversion Cycle (CCC)

    t = -0.59 4 - 2

    1-(-0.59)2

    = -1.03

    tC = 2.92

    There is no relationship between Cash Conversion Cycle and Net Operating profitability

    analysis so null hypothesis is accepted.

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    77/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    78/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    79/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    80/90

    80

    Regression Results are:

    Average Collection Period (ACP):

    x = 4284

    = 107.25

    y = 0.834

    = 0.2075

    ssxy = 4.41 ssyx = 5962.75

    b = 4.415962.75

    = 0.0007

    A = 0.2075+107.25(0.0007)

    = 0.1324

    = 0.1324 + 0.0007X

    Average Payment Period (APP):

    x = 2394

    = 59.75

    y = 0.834

    = 0.2075

    ssxy = 3.91 ssyx = 3138.75

    b = 3.913138.75

    = 0.0012

    A = 0.2075+59.75(0.0012)

    = 0.135

    = 0.1358 + 0.0012X

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    81/90

    81

    Inventory Turnover In Days (ITID):

    x = 1165

    4= 291.25

    y = 0.834

    = 0.2075

    ssxy = 8.75 ssyx = 37727.75

    b = 8.7537727.75

    = 0.0002

    A = 0.2075+291.25(0.0002)

    = 0.149

    = 0.149 + 0.0002X

    Cash Conversion Cycle (CCC):

    x = 1355

    4= 338.75

    y = 0.834

    = 0.2075

    ssxy = -18.70 ssyx = 39162.75

    b = -18.7039162.75

    = 0.00047

    A = 0.2075+338.75(0.00047)

    = 0.05

    = 0.05+ 0.00047X

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    82/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    83/90

    83

    5.15 FINDINGS:

    The results show that there is a positive relationship between average collection

    period and net operating profitability. As similar relationship shows average payment

    period and inventory turnover in day. And there is negative relationship between cash

    conversion cycle and net operating profitability. It means that the cash conversion

    cycle increases it will lead to decreasing profitability of the firm, and managers can

    create a positive value for the shareholders by reducing the cash conversion cycle to a

    possible minimum level.

    The results show that any of the elements of working capital independently does not

    affect the profitability of the firm.

    In a casting industry working capital cycle was found almost fix for that reason

    visible effect would be largely missing at one independent variable.

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    84/90

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    85/90

    85

    5.17 CONCLUSION

    Tamboli casting Ltd. has large amounts of cash invested in working capital. It can therefore

    be expected that the way in which working capital is managed will have a significant impact

    on profitability of firm. I have found a significant positive relationship between net operating

    profitability and the average collection period, inventory turnover in days, average payment

    period and negative in cash conversion cycle for a sample of Tamboli casting Ltd. These

    results suggest that company can create value for their shareholders by reducing the number

    of days accounts receivable and inventories to a reasonable minimum level. The positive

    relationship between accounts payable and profitability is consistent with the view that theyhave good management at APP. It can be improve also.

    Regarding our hypotheses, I conclude that the all null hypothesis (H0) that all are accepted.

    No elements of working capital significantly affect (independently) the profitability of TCL.

    Regarding the regression that has been applied the regression co-efficient are too low to

    affect the dependent variable. The result can be more realistic if multiple regressions have

    been used but because of technical limitations it cant apply.

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    86/90

    86

    6. APPENDIX

    Balance sheet

    Particulars As at

    31.03.10

    As at

    31.03.09

    As at

    31.03.08

    As at

    31.03.07

    SOURCES OF FUND

    Share holder fund

    Share capital 29000000 29000000 29000000 29000000

    Reserves & surplus 112574504 95592622 46052136 12972260

    Total 141574504 128592622 75052136 41972260

    Secured Loans 97072366 69166056 73930196 31842364

    Unsecured Loans 53600000 53600000 53600000 52900000

    Deferred Tax Liability 6561082 5645312 4520000 3315000

    TOTAL 298807952 257003990 207102332 130029624

    APPLICATION OF

    FUND

    F ixed Assets

    Gross Block 185329442 159087743 107288131 61365156

    Less- Depreciation (47588163) (28313566) (16372413) (6987480)

    Net Block 137741279 130774177 90915718 54377676

    Capital Work in Progress 39652169 - - -

    Cur rent assets, Loan &

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    87/90

    87

    Advance

    Inventories 45051374 33053897 58885801 33434175

    Sundry Debtors 51692831 49840192 58161057 51605248

    Cash & Bank Balance 4482109 23723574 1948072 1853467

    Loan & Advance 42722285 37067099 20936142 12165008

    Total 143948599 142784762 139931072 99057898

    Less-Current Liability &

    Provision

    Liabilities 16720788 10392799 23744458 23405950

    Provisions 5813307 6162150

    Net current asset 121414504 126229813 116186614 75651948

    Miscellaneous Expenditure

    (to the extent not written

    off)

    TOTAL 298807952 257003990 207102332 130029624

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    88/90

    88

    Profit & loss:

    Particular 2009-10 2008-09 2007-08 2006-07

    INCOME

    Sales & Operating Income 176349123 3105790

    0

    21671268

    9

    1592.00

    Other Income 1103817 703045 188735 11335051

    Total 177452940 3112825 2169014 11381408

    EXPENSES

    Change in inventory -4891572 2508352 -2229773 -21241635

    Materials and manufacturing exp. 94766223 1586143 14979077 95979181

    Administrative and other exp. 41278812 4293603 33702114 12547084

    Interest 6993503 6570700 3846189 1415373

    Depreciation 19724596 1194114 9388405 6942347

    Total 157871562 2451452 17442972 95642350

    Profit before tax for the year 19581378 6613633 42471672 18171688

    Less- Current tax 2295000 7575000 4865000 170000

    Less-Deferred Tax 915770 1125312 1205000 3315000

    LessFringe benefit tax 0.00 165000 100000 18000

    Profit after taxation 16370608 5727101 36301672 14668688

    Add - Prior Period adjustments 4129 1615 171059 0

    Amount available for appropriation 16374737 5727266 36472731 14668688

    Appropriation:

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    89/90

    89

    Dividend 2900000 3190000 2900000 1450000

    Corporate dividend tax 492855 542140 492855 246428

    General reserve 12981882 5354046 33079876 12972260

    Balance Carried To Balance sheet 0 0 0 0

    Earning per share (basic/Diluted) 5.65 19.75 12.58 5.58

    Nominal value of share 10 10 10 10

    NOP: Net Operating Profitability

    ACP: Average Collection Period

    ITID: Inventory Turnover in Days

    APP: Average Payment Period

    CCC: Cash Conversion Cycle

  • 7/27/2019 FM - Tamboli Casting - Bhavnagar

    90/90