INTRODUCTION TO THE STUDY
WORKING CAPITAL MANAGEMENT
OBJECTIVES OF THE STUDY
ANALYSIS OF THE STUDY
The advent of modern sugar industry began in 1930 with grant of tariff protection to the Indian sugar industry. The number of sugar mills increased from 30 in the year 1930-31 to 135 in the year 1935 and the production during the same period increased from 1.20 lakh tones to 9.34 lakh tones under dynamic leadership of the private sector. The era of planning for industrial development began in 1950-51 and government laid down targets of sugar production and consumption licensed and installed capacity, sugarcane production during each of the five-year plan periods. Total sugar industries in India are 506 out of which 67 are public sector companies, 157 are private sector companies and 282 are co-operative societies. Total sugar industries in Karnataka are 40 out of which two are public sector companies,18 are private sector companies,19 are co-operative societies and one is joint venture. COMPANY PROFILE:
The Krishna Co-Operative Sugar Factory Limited, Athani, is a co-operative society registered under Karnataka co-operative societies Act in 1969. The Plant is located at Sankonattii Village of Athani in Belgaum district. The registration number of the company is DSK/REG/01/80-81 dated 10-03-1981. The industrial license number of the factory is L.I.667 (1988) dated 02/11/1988. The founder of this organization was Late Sri. A.B.Jakanur Ex Min.of Karnataka. At present it has an attractive campus with magnificent buildings over it. There are totally 18,103 shareholders of TKCSFL and it has paid up share capital of Rs.18.39 Crores. During the year 2007-08, it has earned a net profit of Rs.18.34 lakh. During the same year it has produced 7.00 lakh Quintals of sugar and it has crushed 5.60 lakh Tonnes of cane. There are 610 workers in TKCSFL. It is paying salary of Rs. 1500,000 per month to its workers. Total Turnover of sugar is Rs.60.03 crores.
NEED FOR THE STUDY:
Whether a manufacturing unit or non-manufacturing one, working capital is is the life-line of every concern. Without adequate Working Capital there progress in the industry. Inadequate Working Capital means shortage of raw materials, labour, etc., resulting in partial utilization of available machine capacity. Moreover, research and development in the industry will be at low ebb and essential innovations fail to appear. Inadequate Working Capital frustrates the objectives of the enterprise through lack of funds and contributes towards the failure of a business. On the other hand, more Working Capital may lead to less control over worker’s performance, inefficient store-keeping, excessive stocks of raw material and finished goods, delay in the flow of work-in-progress and lack of coordination in the enterprise. So the amount of Working Capital in every concern should be neither more nor less than what is required. OBJECTIVES OF STUDY:
To study the sources and application of fund of TKCSFL
To examine how the working capital requirements is estimated •
A study on the interpretation of working capital on the basis of calculations and estimations •
To study the system of inventory management, receivables management and cash management. •
To identify weakness and short comings if any as a result of the survey and to offer suggestions METHODOLOGY:
DATA COLLECTION METHOD:
PRIMARY DATA: The information is collected from the personal interaction With the Accounts officer & workers of the union 2.
SECONDARY DATA: This is collected through
A) .Annual Reports of the TKCSFL
B) Related Information from Internet.
Bibliography: Prasanna Chandra : Financial Management theory and practice, Tata, McGraw – Hill Publishing Co. Ltd.,
New Delhi, 1998
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