Chapter 1

SAMVARDHANA MOTHERSON GROUP

The Samvardhana Motherson Group is a focused, dynamic and progressive group providing
customers with value added products, services and innovative solutions.

The Group has a diversified product range to serve multiple industries, with automotive industry
being the main industry served.

The Group business portfolio comprises electrical distribution systems (wiring harnesses), automotive
rearview mirrors, polymer processing, injection moulding tools, elastomeric processing, modules and
systems, machined metal products, cutting tools, IT services, design engineering, CAE services, sunroofs,
vehicle air conditioning systems, lighting systems, cabins for off-highway vehicles, cutting tools and thin
film coating metals.

The Group has invested in technologies that provide manufacturing support, including
compressors, paint coating equipment, auxiliary equipment for injection moulding machines,
sales, installation and servicing of industrial robots and automotive manufacturing engineering
services.

1
Group Mission

 Insure customer delight

 Involve employees as partners in progress
 Set new standards in good corporate citizenship
 Enhance shareholder value

Group Vision

To be a globally preferred solutions provider

Historical milestones of the group

1975

Motherson was founded

1977

First Cable factory started

1983 Technical agreement with Tokai

Electric Co. (Now Sumitomo Wiring
Systems - Japan) for Wiring Harness

2
1986
Joint Venture with Sumitomo
Wiring Systems Japan

1989
Injection Moulding

1992
Cutting Tool Manufacturing

1994

 Tool Room for small and Medium sized

Molds (upto 650 Tons)

1995

 Cockpit Assemblies
 Automotive Mirrors

1997

Blow Moulding

1998

Rubber Injection Moulding

3
1999

First Overseas office established

(Austria)

2ooo

 IT and Design Company

 Representative office at Singapore

2oo1

 Liquid Silicon Rubber Injection

Moulding
 Machined Metal Components

2oo2

 Wiring Harness manufacturing at Sharjah

 Design Center at Ireland

2oo3

 Offices in USA & UK established

 Tool Room at Sharjah
 Automotive Sunroofs

4
2oo4

 European Headquarters at
Germany
 Sheet Metal Die design

2oo5

 Injection Moulding and Metal Machining in

Germany.
 Joint Venture for:-
o Environment Management System
o Industrial Robots
o Automotive Manufacturing Engineering
 Plastic Moulding and Metal Machining at Germany
 PVC Tube Manufacturing

2oo6

 Wiring Harness Manufacturing in UK

 Bus Air-conditioned System
 Auxiliary Equipment for Injection Moulding
Machines
 Cabins for off road vehicles in India

2oo7

 Rubber parts Manufacturing in Australia

 Joint Ventures for:-
o HVAC Systems, Meterclusters, Body
Control Modules and Compressors
o Bimetal BandSaws
o Transport and stationary Refrigeration
system
o Thin Film coating metals

5
2oo8

 JV for Lighting systems, Pedal Box Assembly

and Air Intake Manifolds
 JV for Precision machined metal components

2oo9

 Visiocorp becomes a pat of Samvardhana

Motherson group and renamed Samvardhana
Motherson Reflectes (SMR)
 Gear Cutting tool manufacturing through a new
venture Motherson Advanced tooling solutions.
 Polymer Compounding

6
 Some major subgroups of the Company

AES (India) Engineering Limited

AES (India) Engineering Ltd. is a joint venture between Samvardhana

Motherson Group and Automotive Engineering Services Co. Ltd. (Japan) (AES) for providing
services that include Manufacturing Engineering, Consultation, Project Management and
Turnkey Supplies to the automotive industry.

AES is a global player in the automotive engineering field, providing services to major
automotive companies worldwide. AES (India) is positioned as an extension of AES global
operations in the Indian automotive market.

Services are provided in the areas of Plant Layout & Logistics, Prototyping, Process Planning,
Simulation, Conceptual & Detail Engineering, Turnkey equipments supply etc.

Product/Services

 Areas of shop coverage

 Dress/Dies, Body, Paint and assembly shop in vehicle assembly plant.
 Engine/Transmission machining and assembly line in power train manufacturing plant.
Services

 Simultaneous Engineering
 Logistics Planning
 Procurement of Machinery and Equipment
 Installation of equipment
 Launching support
 Quality build up activities
 Coaching of manufacturing staffs/operators
 Continuous Improvement “Kaizen” (Covering parts)
 Program management
 Digital engineering

7
Magneti Marelli Motherson Auto System Ltd.

Magneti Marelli Motherson Auto System Limited is a joint

Venture between Samvardhana Motherson Group and Magneti Marelli, Italy.

Product range includes:

Automotive Lighting

 Head Lamps
o Xenon
o Projection/Reflection Halogen
o Advanced front lighting system
o LED-technology
o Infrared – Emitters
 Rear Lamps
o CHMSL
o LED-technology
o Rear reflectors
o License plate combi
 Auxiliary Lamps, other products
o Fog lamps
o Turn signals
o Door reflectors
o Side markers

POWERTRAIN

 Air Intake Module including

o Air Intake Manifold
o Throttle body
o Fuel rail

8
 o Injectors
 LPG/CNG Intake Module including
o Air intake manifold
o Fuel rail
o LPG/CNG injectors
o Pressure regulator
PEDAL BOX MODULE

 Main features:
o Brake and Clutch Pedal with release device
o Quick Fit device for connecting Brake Pedal to Servo Brake Push Rod
o CMC assembled on Pedal Box
o Pedal Box with Electronic Throttle Control (ETC)
 ETC Pedal program
o Integrated sensor and pedal unit
o Individual adaptation of pedal forces
o Dual output signal for redundant operation
o Non-contacting sensor technology
o Optional kick down feature

9
Motherson Sumi System Limited (MSSL)

Motherson Sumi Systems Limited (MSSL) is the flagship company of the

Samvardhana Motherson Group and was established in 1986. It is a joint
venture between Samvardhana Motherson Group and Sumitomo Wiring
Systems (Japan). MSSL is a focused, dynamic and progressive company providing customers
with innovative and value-added products, services and solutions.

The Company is listed at the stock exchanges since 1993. The recent acquisition of mirror
business from Visiocorp (now renamed as Samvardhana Motherson Reflectec) has helped MSSL
evolve as one of the world’s leading automotive mirror manufacturer. The Company is India’s
largest manufacturer of automotive wiring harnesses and mirrors for passenger cars. It is also a
leading supplier of plastic components and modules to the automotive industry. 

MSSL facility in Noida

MSSL facility in Bangalore

Over the years MSSL has collaborated with global technology leaders and has further leveraged
its competency in existing areas to create products fulfilling the technical needs of its customers.
MSSL and its joint ventures have invested in state-of-the-art technologies and infrastructure to
ensure superior efficiencies & total customer satisfaction.

MSSL is strengthening its position as a globally preferred solution provider by offering end-to-
end solutions encompassing designing from basic data to prototyping, tooling, molding,
assembly and integrated modules. The ability to provide this end-to-end solution in each product
category and combine these solutions in the form of full system solutions has enabled the
Company to evolve as a preferred supplier. These solutions are supported by the flexibility to

10
supply from any of the alternative manufacturing bases and logistic models best suited to
customer requirements.

MSSL has developed a network of manufacturing bases, design centers, logistics centers,
marketing support and sourcing hubs across a diversified geographical base. MSSL has presence
in 21 countries which includes India (Noida , Gurgaon, Manesar, Faridabad , Pune, Bengaluru,
Chennai, Kandla, Lucknow & Puducherry), UAE., Sri Lanka, Singapore, China, South Korea,
Japan, Germany, UK., Czech Republic, Austria, Hungary, Italy, Spain, France, Ireland, U.S.A,
Mexico, South Africa, Australia & Mauritius to provide timely and quality delivery its customers
worldwide. MSSL has manufacturing bases across five continents - Asia, Europe, North
America, Africa and Australia to support its customers. MSSL’s diverse global customer base
comprises of almost all leading automobile manufacturers globally. 

Product Range

It has been MSSL’s Endeavour to constantly add new products in its product line with the
objective of emerging as a single-service interface for multiple customer needs. MSSL has 9 JV
partners with over 14 collaborations. The Company has collaborated with technology leaders in
their respective fields to bring relevant technologies for the products required by its customers.
MSSL’s diversity of product range coupled with the depth within each product portfolio, has
helped the company garner leadership in its area of operations.

11
Chapter 2 Introduction to company

Motherson Automotive Technologies & Engineering (MATE), a division of Motherson Sumi

Systems Ltd (MSSL), specializes in large size injection moulding, blow moulding, compression
moulding and vacuum forming, which are supported by post moulding operations. MATE
manufactures a wide range of plastic components for the automotive and the non-automotive
industry.

Manufacturing Capabilities

 Injection Moulding machines from 40 ton to 3200 ton capacity.

 Gas Injection Moulding facility.
 State-of-the-art Blow Moulding machines
 Compression Moulding facility
 Post moulding Operations
o Product Finishing with fabric Upholstery and Vinyl Lamination
o Robotic Trimming Operations
o Ultrasonic Welding
o Hot plate welding
o Painting
o Silk screen printing
o Auto screen printing
o Pad printing
 In house tool maintenance

12
Product Range

Blow Molded Components

 Heating, Ventilation and Air Conditioning Ducts
 Engine and Air Intake Ducts
 Wind Shield Washer Bottles
 Radiator Reservoir Tanks
 Plastic Fuel Tanks (2-Wheelers)
 Resonator/Pipe Air Intake
 Arm Rests
 Bellows
 Body styling kit-spoilers

Injection molded components

 Interior/Exterior Trims and parts

 Scuff plates
 Auto A.C components
 Mirror housings
 Under bonnet parts
 Structured plastic components
 Inside handles
 Body colored painted parts

Modules
 IP Module
 Door Trims
 Floor console Module
 Bumper Modules
 Air Cleaners

13
Products and services

Wire harness

MATE is the largest manufacturer of integrated wiring harness in India, the Samvardhana
Motherson group holds over 65% share of the Indian passenger car wiring harness market.

The group manufactures wiring harnesses for the entire cross-section of the automotive industry-
from passenger cars to commercial vehicles, two wheelers and three wheelers, multi utility
vehicles, farm, material handling equipment and off-the-road vehicles. The group also
manufactures specialized wiring harnesses for white goods, office automation, medical
diagnostic equipment, electrical and electronic equipment.

Designing and developing wiring harnesses from first principle concepts on latest design
software, the group provides total solutions in wiring harness manufacturing.

The group has complete backward integration for manufacturing critical wiring harness
components.

In-house capability for design and manufacturing of applicators, jigs, assembly boards and
circuit checking boards enable process design control and flexibility.

The Engineering Capabilities for Wiring Harness

 Process Design & Development

o In-house capability of process design and validation
o Designing & manufacturing of Jigs & Fixtures
o Applicator design & manufacturing
o Design & manufacturing of circuit checking & assembly boards
 Tooling design for wiring harness process equipment, testing and assembly equipment.

14
Electrical Distribution System - Products

 Cable & Harness

o Wiring harness
o Lead wire
o Battery cable
o Flat cable harness
o High tension cords (Engine cables)

 Wiring harness components

o Wired
o Terminals
o Connectors
o Caps and sleeves
o Clamps and binders
o Fuse boxes

 Modules with integrated wiring harnesses

Injection Moulding

Tool design & manufacturing capabilities of the group is a key to its ability to provide full system
solutions. The group has collaborations with Sumitomo Wiring Systems, Japan and Center Tooling,
Australia for tool design & manufacturing.

The tool rooms specialize in high precision, multi cavity, small, medium and large size tools capable of
running on injection moulding machines upto 3200 tones.

15
Tool manufacturing is done on state-of-the-art CNC machines. In-house proving & tryout facilities on
injection moulding machines are in tandem with tool manufacturing facilities.

The complete range of services from tool design to tool manufacturing and injection moulding under one
roof make the group a Total Tooling Solutions provider.

Precision Metal Machining

The Samvardhana Motherson Group Specializes in high precision machined metal components
and assemblies mainly for Automotive and IT Hardware industries, Microscopes and engineering
applications.

The group has manufacturing bases in India and Germany. The facilities include state-of-the-art
CNC machines coupled with highly customized special purpose machines for intricate
machining requirements. The machined metal components are supplied to customers across the
world, especially to Europe and USA.

Product range

 Fuel pump parts

 Plastic and metal combined parts
 Capstone working – turning, milling parts
 Cubic parts
 Sub assemblies with plastics and coatings
 Machined extruded aluminum shapes
 Docking plates
 Parts for microscopes
 Heat sinks for computer processors

16
Plastic Moulding

Plastic Injection Moulding

The group manufactures a wide range of injection molded plastic

components and assemblies for automotive, electrical, electronics,
medial diagnostics and other industries. The group specializes in
high precision, surface critical, assembly-oriented components and
assemblies.

Injection moulding operations are augmented by complete post

moulding processes and special customized lines for plastic-plastic,
plastic-rubber and plastic-metal assemblies.

The moulding technologies include:

 Plastic injection moulding

 Gas assisted injection moulding
 2k moulding
 Insert moulding
 Inmold lamination

Blow moulding

Blow moulding products cover a wide range of components &

assemblies for the automotive industry, which include heating,
ventilation and air conditioning ducts, bottles & reservoirs,
spoilers and 2-wheeler fuel tanks.

The range also extends to components for office automation

and other industries. the facilities are supported by robotic
trimming and assembly operations.

17
Post moulding operations

 Ultrasonic welding
 Vibration welding
 Screen printing
 Curve printing
 Hot plate welding
 Body color matched painting
 Robotic welding

Rubber Moulding and Extrusion

The group manufactures extruded rubber components and has in-

house rubber mixing facilities. It has the largest non-tire related
rubber mixing plant in Australia currently having 1900 material
formulations which include 15 different polymers.

Injection molded rubber components

The rubber injection moulding facilities of the group support the

automotive and other industries with a wide range of rubber
components such as: grommets, boots, bellows, gaskets, seals,
water strike back valves, damper rings, nozzles, rubber to plastic
& rubber to metal products.

The facilities are supported with cryogenic de-flashing, in-house

tool maintenance and complete in-house testing facilities.

18
Liquid Silicon Rubber Components

Liquid silicon rubber injection moulding operations manufacture components for an extensive
range of applications which include:

 Automotive
Frame and plug sealing, anode caps, keypads, switch covers, central locking
system membranes.

 Kitchen Appliances
 Measuring & Control Technology
Steam iron seals, diffuser heads, dishwasher seals, vacuum cleaner flaps.

 Medical Equipment
Seals, injection plungers, wart caps, soother nipples, oxygen bellows, catheters and catheter
holders.

Injection & Compression Molded Products

 Silent bloc Industrial Mountings and couplings.

 Auto & Truck Suspension Components.
 Wheel Chocks.
 High Precision Molded Products.
 Molded Rubber Brake Components.
 Rolling Stock Bogie Rubber & Metal Components

Bonded Components
 Suspension bushes
 Engine and transmission variants
 Bump stops
 Large engine gaskets

19
Extruded rubber Profiles

 Weather strips
 Glass run
 Boot and hood seals
 Tank Flares

20
 SKH Metals LTD.

SKH Metals, formerly known as Mark Auto Industries, was established in 1986 as a joint
venture company setup by Maruti Suzuki India Limited, the largest car manufacturer in India, to
cater to its requirements of Fuel tanks and other sheet Metals parts. In 2005, the company was
taken over by the Krishna Maruti Group and renamed S.K.H Metals Ltd. Since then under the
leadership of its new Managing Directors Mr. Sunandan Kapur, the company has broadened its
horizons to become a reckoning force within the industry.

Krishna has two brands in the groups i.e. Krishna representing Auto Interiors and S.K.H Metals
representing metal parts. Krishna has a total 10 manufacturing facilities (product specific) in the
National Capital Region (Gurgaon). All the manufacturing facilities are TS-16949 certified and
they have won the coveted Deming Prize (Total Quality Management) at their seating Division
(the youngest and the first seating company in the world to receive this prestigious prize). There
consolidated Group Turnover for the current financial year is $191 Million and they are targeting
$ 261 Million for Financial year 2007-2008.

S.K.H Metals Ltd. Started as Mark Auto Industries as a joint venture between Maruti and three
promoters after that in 1987 Plant one Commissioned and 1995 plant second commissioned.
Maruti takeover of mark auto industries in 2001 and In February 2005 Mark Auto acpuired by
Krishna Group and In 2006 Company renamed as S.K.H Metals after that 2007-08 it growth was
increasing day by day it revenue in 2007-08 reach’s to Euro 60 Mio and in 2008-09 it is Euro 85
Mio it is expected that it will give revenue of Euro 185 Mio in 2011-2012. It is planning to
extend it product

• Fuel Tanks
• Axle Housings
• Catalytic Converters (Hot End) (JV with Magnetic Marelli)
• Exhaust Assembly (Cold End) (JV with Magnetic Marelli)
• Gear shifter assembly (JV with Sila)
• A Diverse range of Stampings and Welded assemblies.
• Rear Axle & Suspension Parts (Subject to Business award)
21
S.K.H METALS Ltd. PRODUCT PARTICULLAR

Fuel tank

Exhaust system

22
Stampings and Assemblies

Welded Assemblies

Axle Housings

23
Chapter 3 Source of capital

Capital

Before knowing about the different sources of capital, one must know what capital is. The word
capital used in connection with a company has several different meanings.

Types of Capital:

i. Authorized, registered or nominal capital.

This is the amount of capital with which the company intends to get itself registered. This is the
amount of share capital which the company is authorized to issue. Nominal capital is divided into
shares of a fixed amount. It must be set out in the memorandum of association. It can be
increased or decreased by following the prescribed procedure.

ii. Issued capital

It is that part of nominal capital which is actually issued by the company for public subscription.
A company need not issue the entire authorized capital at once. It goes on raising the capital as
and when the need for additional funds is felt. The difference between the nominal and the issued
capital is known as ‘unissued capital’. Where the whole of authorized capital is offered to the
public, the authorized and issued capital will be the same.

iii. Subscribed capital

It is the amount of the nominal value of shares which have actually been taken up by the public. It is that
part of the nominal capital which has actually been taken up by shareholders who have agreed to give
consideration in kind or in cash for shares issued to them. Where shares issued for subscription are wholly
subscribed for, issued capital would mean the same thing as ‘subscribed capital’

24
iv. Called up capital
The amount due on the share subscribed may be collected form the shareholders in installments at
different intervals. Called up capital is that amount of the nominal value of shares subscribed for which
the company has asked its shareholders to pay by means of calls or otherwise.

v. Paid-up capital
Paid up capital is that part of the capital which is actually paid up by the members Is known as the paid
up capital. In other words, paid up capital represents the total payments made by the shareholders to
the company in response to the calls made by the company.

25
Need of capital

There is more than one way to skin a cat. We'd better remember this old adage when business
needs more inventory, personnel, and facilities. As business grows, so does need for more and
more capital. There are more than one way and more than one place to raise the money you need.

Causes of Additional Capital requirement

There are many factors that can create a need for additional capital. Some of the more common
are as follows:

 Sales growth requires inventories to be built to support the higher sales level.
 Sales growth creates a larger volume of accounts receivable.
 Growth requires the business to carry larger cash balances in order to meet its current
obligations to employees, trade creditors, and others.
 Expansion opportunities such as a decision to open a new branch, add a new product, or
increase capacity.
 Cost savings opportunities such as equipment purchases that will lower production costs
or reduce operating expenses.
 Opportunities to realize substantial savings by taking advantage of quantity discounts on
purchases for inventory, or building inventories prior to a supplier's price increase
 Seasonal factors, where inventories must be built before the selling season begins and
receivables may not be collected until 30 to 60 days after the selling season ends.
 Current repayment of obligations or debts may require more cash than is immediately
available.
 Local or national economic conditions which cause sales and profit to decline
temporarily.
 Economic difficulties of customers that can cause them to pay more slowly than
expected.
 Failure to retain sufficient earnings in the business.
 Inattention to asset management may have allowed inventories or accounts receivable to
get out of hand.

26
Factors affecting Type of financing

 Availability of funds.

 Assets of the venture.

 Prevailing interest rates.

 All financing requires some level of equity.

o Amount of equity will vary by nature and size of venture

27
There are many ways in which one can arrange capital for the business. But this entire source
comes under two categories. These two categories are as followed: -

i. Internal Source of funding

ii. External Source of funding

1. Internal Source
Internal sources are those generated from or within the business itself. The most important
internal source is profit, or more accurately, cash flow. The amount available, of course, is a
function of how much is generated and retained in the business.

Following are some of the Internal Sources of capital

i. Profits/Retained earnings

Retained earnings refer to the portion of net income which is retained by the corporation rather
than distributed to its owners as dividends. Similarly, if the corporation takes a loss, then that
loss is retained and called variously retained losses, accumulated losses or accumulated deficit.
Retained earnings and losses are cumulative from year to year with losses offsetting earnings.

Retained earnings are reported in the shareholders' equity section of the balance sheet.
Companies with net accumulated losses may refer to negative shareholders' equity as a
shareholders' deficit. A complete report of the retained earnings or retained losses is presented in
the Statement of Retained Earnings or Statement of retained losses.

ii. Sale of assets and little-used assets

Many businesses have non-productive assets that can be liquidated (sold or collected) to provide
capital for short-term needs. Fixed assets can be sold to free cash immediately. For example, a
company automobile might be sold and provide cash of Rs. 5,000 or Rs. 8,000. Owners and
employees can be compensated on an actual mileage basis for use of their personal cars on
company business. Or if an automobile is needed on a full-time basis, a lease can be arranged so
that a vehicle will be available. Other assets such as loans made by the business to officers or
employees, investments in non-related businesses, or prepaid expenses should be analyzed

28
closely. If they are nonproductive, they can often be liquidated so that cash is available to meet
the immediate needs of the business.

iii. Working capital reduction

A non-recurring source of internally generated capital may be found by wringing out cash tied up
in the balance sheet. This might include selling some machinery or equipment that is not
necessary or is too expensive, or the unlocking of cash tied up in working capital. Here is Savvy
Company’s working capital:

            Cash                             Rs. 1,000,000

            Accounts Receivable        Rs. 5,000,000

            Inventory                       Rs. 3,000,000

                        Total Current Assets                    Rs. 9,000,000

            Accounts Payable            Rs. 2,000,000

            Other Current Liabilities   Rs. 2,000,000

                        Total Current Liabilities               Rs. 4,000,000

                        Working Capital                           Rs. 5,000.000

29
As can be seen, Savvy has Rs. 5,000,000 tied up in working capital (current assets minus current
liabilities). However, if the business institutes practices that allow it to maintain less inventory
and collect more rapidly on receivables, for example, cash can be generated (tax free).

For example, let’s say that by devising and instituting some new policies, Savvy is able to
support the current level of annual revenue with just Rs. 4,500,000 in receivables (because they
collect more quickly) and Rs. 2,000,000 in inventory (because they become able to turn
inventory more quickly), working capital can be reduced to Rs. 3,500,000 … Rs. 1,500,000 in
cash is generated.

iv. Extended or discounted payment terms – suppliers.

A planned program of trade credit extensions can often help the business secure extra capital that
it needs without recourse to lenders or equity investors. This is particularly true whenever the
capital need is relatively small or short in duration.

A planned approach should involve the following:

 Take full advantage of available payment terms. If no cash discount is offered and
payment is due on the 30th day, do not make any payments before the 30th day.
 Whenever possible, negotiate extended payment terms with suppliers. For example, if a
supplier's normal payment terms are net 30 days from the receipt of goods, these could be
extended to net 30 days from the end of the month. This effectively "buys" an average of 15
extra days.
 If the business feels that it needs a substantial increase in time, say 60 to 90 days, it
should advise suppliers of this need. They will often be willing to accept it, provided that the
business is faithful in its adherence to payment at the later date.
 Consider the effect of cash discounts and delinquency penalties for late payment.
Frequently, the added cost of trade credit may be far more expensive than the cost of
alternate financing such as a short-term bank loan.

30
 Consider the possibility signing a note for each shipment promising payment at a specific
later date. Such a note, which may or may not be interest-bearing, would give the supplier
evidence of your intent to pay and increase the supplier’s confidence in your business.

v. Reducing Stocking

The business can finance new activities or pay-off debts by selling its assets such as property,
fixtures & fittings, machinery, vehicles etc.

It is often used as a short term source of finance (e.g. selling a vehicle to pay debts) but could
provide more longer term finance if the assets being sold are very valuable (e.g. land or
buildings)

If a business wants to use its assets, it may consider sale and lease-back where it may sell its
assets and then rent or hire it from the business that now owns the assets. It may mean paying
more money in the long run but it can provide cash in the short term to avoid a crisis.

vi. Trade credits

Unlike you and me, a business does not normally pay for things before it takes possession of
them. Instead, it will usually place an order for supplies / inputs and will pay after receiving the
items. It is good practice to pay quickly (often within one month) as this will help the business
develop a good relationship with its suppliers.

This source of finance appears on the balance sheet as trade credit. This method of deferring
(delaying) payment to a future date is a form of very short term borrowing and helps with the
problems of the cash cycle identified in the work on liquidity.

Some other sources of internal capital are:-

 Trade credit
 Cost reduction
 Shortening bills receivable period

31
2. External Source of Capital

This is finance that comes from outside the business. It involves the business owing money to
outside individuals or institutions

Internal sources of finance are available to the firm, but these may be more limited in scope and
for large projects, the firm may be forced to turn to banks or other institutions (external sources)
to help them rise sufficient funding. The main external sources are:-

i. Financing by debt

Beyond the initial stages, startups can resort to financing by way of debt. The term debt usually
signifies a short- or long-term line of credit. The lenders can be banks, venture capitalists, or
bodies which specialize in providing credit. The borrower receives the right to use the money for
a pre-determined period of time in consideration for the payment of interest. The terms of the
loan are set in the loan agreement. To guarantee the repayment of the debt and the interest, the
loan is backed by the cash flow itself (an unsecured loan) or collateral (a secured loan).

An unsecured loan is given when the creditor ascertains that the company's cash flow will suffice
to pay the interest and the principal. Common indicators for measuring the borrower's ability to
repay the debt are his or her EBIT and leverage (debt/equity ratio). A secured loan is typically
guaranteed by a marketable asset. Financing by debt (without an equity component) is usually
inaccessible to early-stage startups, which are based on high-risk growth and which lack many
tangible assets, unless their startups have a good chance of securing long-term contracts with
customers. At later phases of the company's life cycle, it becomes easier to resort to financial
instruments containing a significant debt component. The types of financing by debt that startups
commonly use are as follows:-

 Mezzanine loans- As mentioned above, startups face difficulties in securing traditional

financing from banks. A popular solution is the "mezzanine loan." This type of investment lies
between debt and equity (hence the name). The incentive for entrepreneurs to use this instrument

32
could be their desire to avoid dilution, on the one hand and an inability to obtain ordinary bank
loans, on the other hand. From the investors' point of view, this loan offers a higher degree of
security than an ordinary investment in equity since their right is senior to that of the
shareholders.

The main source for mezzanine loans are commercial banks, insurance companies, and
specialized entities which are associated with banks, although mezzanine loans are also offered
by several funds which specialize in this type of loan. Mezzanine loans are generally given only
to companies that have already started or are about to start making sales, since the repayment of
the loan depends on the company's ability to generate cash flows. The criteria used by lenders to
screen investments are similar to those used by venture capital funds.

Generally, the securities issued in this type of investment are either high-yield convertible
debentures or are accompanied by an equity kicker in the form of warrants. The rate of interest
could be more than 10% above similar loans and range between 15% and 30% with the actual
interest rate depending to a large extent on the equity component of the loan and naturally on the
perceived risk of the loan. If the company is expected to have a negative cash flow in the first
stages after the loan is granted, the payment of interest might be deferred for several years after
the debenture is issued, with the interest accumulating during the first period. If the company
defaults on its payments, the terms of the debenture could provide for changes in the loan terms.
Such changes may include: accelerate the debenture's maturity; increase the interest rate; add
warrants for additional shares (or a discount in the conversion price in the case of convertible
debentures); add rights to control the board of directors, or add rights to force an issuance or sale
of the company.

 Bridge loan- A bridge loan is typically a loan (for less than one year), designed to provide
the company with sufficient funds to finance its current activities, pending an investment round
that is expected to take place at a forthcoming time. Bridge loans are common at times close to
IPOs from various financial institutions and are also common as a mechanism for funding
between financial rounds, without the need to set valuation.

33
 Other uses of debt- In the various stages of a startup's life cycle, the company may use
other sources of debt financing. For instance, many companies enable the long-term leasing of
most of the equipment required by the company. The company may also obtain short-term loans
for working capital needs, or obtain a line of credit from banks to be used as required.

ii. Equity

Equity capital is the longest term financing available to a business. In fact, it’s considered
permanent (no repayment term). Yes, equity capital comes with no payment obligation and
monies only flow to the equity holders when all other obligations have been met. This means that
equity capital is the most risky. If the business does not succeed and must be liquidated, the
equity holders only get what is left over (if any).

Equity capital is the most expensive form of capital. This makes sense when you consider the
risk. For example, a loan (debt financing) today might charge an annual rate of seven or eight
percent. Try to sell an equity stake in your business and investors might demand well north of
30%. Now, if the terms of the equity sale require a return, it’s not really a pure equity position.
When we say, “demand well north of 30%,” we mean the investor must believe he will earn it
(their “hurdle rate”) … or he won’t invest.

Equity capital is illiquid (hard to sell). Unlike trade credit or a bank loan, which can be replaced
easily with another supplier or lender, equity is not easy to sell or exchange. This is another
reason for the higher rate of return – compensation for the risk inherent in the illiquidity.

Many businesses don’t earn a return for their investor(s). This is common in small businesses
where the equity holder (owner) is also the full time manager. The owner will pay himself or
herself a salary (wage for his or her contribution of time and talent) and there will be little or no
profit left over. If equity distributions are made, it’s allocated on a pro-rata basis (i.e. according
to ownership percent), unless there is more than one class of stock (rare in a small business).

Equity is the foundation of a business’ capital structure. The way a business is financed is
referred to as its capital structure. Another way to understand “capital structure” is to identify the
source of the money. The most important piece is the equity. If the equity contribution is

34
sufficient, other types of capital providers might be willing to contribute capital (money) to your
business. For example, if you need Rs. 5,000,000 in equipment, a lender will typically not lend
you Rs. 5,000,000. After all, tangible assets decline in value over time and, given that lenders
charge fairly low rates of interest, they can’t afford a lot of risk (lost principle). Lenders need a
cushion. They want you to contribute, say, 20 percent of the purchase price with equity. Then
they will lend the other 80 percent. If you default on the loan, they will get the entire piece of
equipment and your equity will be lost. Just as the equity serves as a cushion for the lender on
the equipment loan, the overall level of equity in the business serves as a cushion for all non-
equity contributors of capital.

Does all this sound unfair? Before you, the equity holder, get too uncomfortable, consider that
the trade creditor earns no interest. The debt capital provider just gets a few percentage points in
interest and some fees. You, the equity holder, can earn as high a return as you are able to
muster. There is no limit to your upside.

Equity is also unique in that the holders of equity dictate how the business is managed. They, in
effect, are the people who determine the other capital sources. Therefore, equity is the most risky
capital, but the holders of it have the most influence in how the business is managed.

Finally, growing companies consume cash. It’s just the way it works. Sales and profit growth
follow expenditures such as:  the hiring of additional employees; the purchase of more inventory,
materials and equipment; the leasing of a larger facility, etc. And, as we discussed above,
creditors (debt and trade credit) don’t want to finance 100 percent. So, growing businesses need
a continuous supply of equity capital – internal generated cash or equity obtained from investors.

35
iii. Personal savings

This mainly applies to sole traders and partnerships. Owners may use some of their own money
as capital to invest in the business. For instance, a person may be made redundant by a company
that needs to reduce in size. They would receive redundancy payment that they might use to start
their own business.

This is considered an external source as it is assumed that the money lent to the business will be
paid back to the private individual in the future, possibly with an extra amount to compensate the
individual for the help they gave. It can be a short or long term source of finance, depending
upon the amount invested and the decision of the person using their savings.

iv. Commercial banks

IT tends to consider two types of finance that banks offer to businesses, overdrafts and loans.

If a business spends more money than it has in its bank account, we say that it has become
overdrawn. Businesses will often have an arrangement with the bank whereby the bank will pay
the extra money provided the business will pay them back in a fairly short period of time, with
interest. This is a short term source of finance and is useful for small amounts. It is often used for
buying supplies / inputs.

A bank loan is a long term source of finance and will often be for much larger sums of money. A
loan is useful for a business that is starting up or looking to grow. Loans are often used to buy
fixed assets (see balance sheets) such as machinery and vehicles. A business will pay the bank
back each month in installments and will also pay an interest charge.

Interest- Banks is providing a service by lending money in the form of overdrafts and loans and
banks will charge for this service (they want to make a profit too). When a business takes a loan,
it will agree to pay it back over a period of years but it will also pay an extra charge. This charge,
called interest, is a percentage of the value of the loan.

36
The interest rate is set by the Bank of England and it varies. Higher the interest rate, greater the
percentage of the loan that the business must repay. In other words, if the Bank of England raises
interest rates, a business with a loan will find it has to pay the bank more each month as it pays
off its debt. Likewise, a fall in interest rates will mean that the business will have lower costs
(and therefore more profit). The interest rate is an example of an external constraint - something
outside the business' control that can seriously affect the business' performance.

v. Debenture

This is a form of long term loan that can be taken out by a public limited company for a large sum and it
will be paid back over several years. It is usually borrowed from specialist financial institutions.

vi. Leasing and hiring purchase

Leasing involves business renting equipment that it may use for several years or months but
never own. It will have a contract with a company who may come in to repair and service the
product. The deal may also involve the product being replaced with a new model every so often.
Businesses often lease equipment such as photocopiers.

Hire purchase involves paying for equipment in installments. The business will not own the item
until all the payments have been made. It usually works out more expensive to buy an item on
hire purchase than paying all at once but it does mean that the business doesn't have to spend a
large amount of money at once.

37
The process of Internal and External sources can also be classified as:

Sources of finance

1. Share holder’s fund

 Equity share capital
 Equity share
 Preference share
 Reserves and surplus
 Retained earning
 Capital Reserve
 Capital Redemption reserve
2. Loan fund
 Secured Loans
 Mortgage
 Dept consolidation
 Unsecured Loans
 Credit card
 Bank overdraft
 Personal loan

38
Chapter 4 RESEARCH METHODOLOGY

OBJECTIVE OF STUDY
The following are the main objective which has been undertaken in the present study:
1. To determine the amount of capital requirement and to calculate various ratios relating to
source of capital.
2. To make an item wise study of the components of the source of capital.
3. To suggest the steps to be taken to increase the efficiency in management of source of
capital.
4. To make the comparative analysis of financial ratio of the MATE and SKH.
Primary Objective: -
The prime objective of this study is to find out different sources of capital inflows of the
company, and to find out the best source through which upcoming needs of capital could be
fulfilled.
Secondary Objective: -
 To know which source is more efficient for capital generation.
 To make use of comparative study to suggest the company which is more feasible source
where company can have more funds for future uses.
TYPES OF RESEARCH:
Descriptive Research:

Descriptive study is a fact- finding investigation with adequate interpretation. It is the

simplest type of research. It is more specific than an explanatory study, as it has focus on
particular aspect of the problem studied. It is designed to get descriptive information and provide
information for formulating more sophisticated studies. Data are collected by using one or more
appropriate method, observation, interviewing.

DATA COLLECTION

There are two types of data collection methods available.

1. Primary data collection
2. Secondary data collection

39
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.

Project is based on
1. Annual report of Motherson Automotive Technology and Engineering 2008, 2009 and 2010.
2. Annual report of SKH Metals 2008, 2009 and 2010.

40
LIMITATIONS OF STUDY
Following limitations were encountered while preparing this project:

1) Limited data:-
This project has completed with annual reports; it just constitutes one part of data collection i.e.
secondary. There were limitations for primary data collection because of confidentiality.

2) Limited period:-
This project is based on three year annual reports. Conclusions and recommendations are based
on such limited data. The trend of last three year may or may not reflect the real and true picture
of the sources of funds collected by the company

3) Limited area:-
Also it was difficult to collect the data regarding the competitors and their financial information.
Industry figures were also difficult to get.

41
Chapter 5 Data Analysis and Findings

1. Current Ratio:
The current ratio measures the ability of the firm to meet its current liabilities from the current
assets. Higher the current ratio, greater the short-term solvency (i.e. larger is the amount of
rupees available per rupee of liability).
Current ratio= Current Assets / Current Liabilities
MATE
Rs. In Million 2010 2009 2008
Current Assets 78517 77783 73028
Current Liabilities 28948 27434 21996
Current Ratio 2.71 2.83 3.32
SKH Metals
Rs. In Lack 2010 2009 2008
Current Assets 1643556512 1741527593 981970741
Current Liabilities 1282839825 1056075395 671551795
Current Ratio 1.28 1.64 1.46

3.5
3.32
3 2.71 2.83
2.5 1.64
1.28
2
1.28
1.5
1
0.5
0
2010
2009
2008

MATE SKH Metals

42
Interpretation:-

By observing above given chart it can be said that company is doing a good business as its
current ratio is more then 2. A good ratio is 2:1, but in case of MATE the ratio is more than two
in all given years.  The company's should try to reduce its current ratio to 2:1 as it hampers the
profitability of the organization. It indicates that company has good short-term financial strength.
Where as SKH METALS also doing well and maintaining Current Ratio over 1.

Both the companies are doing well but MATE has a better Short-Term financial strength.

By observing graph and previous years’ performance it can also be stated that MATE has a
decline in Current Ratio where as SKH Metals has ups and downs in the same. This is the area
where company has to look more seriously.

43
2. Debt-to-Equity Ratio:
The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion
of shareholders' equity and debt used to finance a company's assets. Closely related
to leveraging, the ratio is also known as Risk, Gearing or Leverage. The two components are
often taken from the firm's balance sheet or statement of financial position (so-called book
value), but the ratio may also be calculated using market values for both, if the company's debt
and equity are publicly traded, or using a combination of book value for debt and market value
for equity financially.

Debt Equity ratio = Total Debt / Total Equity

MATE

Rs. In Million 2010 2009 2008

Total Equity 172963 124180 95077
Total Debt 83286 73686 49034
Debt-Equity Ratio 0.48 0.59 0.51
SKH Metals

Rs. In lack 2010 2009 1008

Total Equity 628168836 420938158 347129576
Total Debt 2056401280 2214920078 983394042
Debt-Equity Ratio 3.27 5.26 2.83

Debt-Equity Ratio
6
5
4
3
2
1
0
Mate SKH Metals

44
Interpretation:-

With the given Profit and Loss account of the company, if we calculate the Operating Profit
Margin (OPM) of MATE we get the OPM as 19.9%, 20% and 16% in 2008, 2009 and 2010
respectively.

Formula for Deriving OMP is:

Operating Profit / Net Income

And if we take the alternate route to find the Operating Profit Margin, the formula is;

Earning Before Interest and Tax / Net Sales

Looking at the graph, we can say that the company can employee more debt, in case if it wants to
expend its business, as its debt equity ratio is more then 1 and operating profit margin is above
16 % in the three years.

45
3. Debt-to-Asset Ratio: The Debt / Asset ratio shows the proportion of a company’s assets
which are financed through debt. If the ratio is less than one, most of the company's assets are
financed through equity. If the ratio is greater than one, most of the company's assets are
financed through debt. Companies with high debt/asset ratios are said to be "highly leveraged,"
and could be in danger if creditors start to demand repayment of debt.
Debt-Asset Ratio = Total Debt / Total Assets

MATE

Rs. In Million 2010 2009 2008

Total Debt 83286 73686 20554
Total Assets 269486 209124 157430
Debt-Asset Ratio 0.31 0.35 0.31
SKH Metals

Rs. In Lack 2010 2009 2008

Total Debt 2056401280 2214920078 983394042
Total Assets 4137548639 3836535478 2110116856
Debt-Asset Ratio 0.49 0.57 0.46

0.49
0.46
0.5
0.45 0.35
0.4
0.31 0.35
0.35
0.3 0.31
0.25
0.2
0.15
0.1
0.05
0
2010
2009
2008

MATE SKH Metals

46
 4. Division of Share capital According to its allocation.
In Million

Share capital FY 08 FY 09 FY 10
Equity Capital 775 785 845
Preference Capital 153 258 381

900

800

700

600

500
FY 08
FY 09
400
FY 10
300

200

100

0
Equity Preference

47
Interpretation:-

Equity share has a larger stake in the total issue of shares.

Company has consistently issued equity and preference shares in the public according to its
norms.

From the above chart it could be understood that equity capital is preferred by the Company.

48
 5. Share of R&S in the total source.

In Million FY 08 FY 09 FY 10
Reserve and Surplus 95077 123137 171737

Total FUNDS 145097 197866 256249

180000

160000

140000

120000
FY 08
100000 FY 09
FY 10
80000

60000

40000

20000

0
Reserve and Surplus

Interpretation:-

As we can see from the past, the company uses its reserves and surplus for the main source of
funding. The role of reserves and surplus is constantly increasing which means company is more relying
on the profits it make for its source of financing.

It is also helpful in caring out its day-to-day expenses.

49
 6. Secured Loans of the Company.

In million

Secured Loans FY 08 FY 09 FY 10
Debentures 12580 35612 35612
Loans from Bank 7500 9565 12586
Loan from Mother Co. 8400 38055 13856

40000

35000

30000

25000
FY 10
20000 FY 09
FY 08
15000

10000

5000

0
Debenture Bank Loan Loan from Mother Co.

Interpretation:-

As we can see in the graph, Debentures have gone up from 2008 to 2009 by 23032 and remain
constant in the financial year 2010.

Loan from bank has constantly increasing because of increasing in business.

The company also acquires loan form the Mother company at chipper rate because of increase in
demand of plastic products from Honda Siel.

50
 7. Unsecured Loans

In Millions

Unsecured Loans Bonds Short-Term Loan

FY 08 15350 5204
FY 09 3650 5934
FY 10 10250 10982

18000

16000

14000

12000

10000
Bonds
8000 Short-Term Loan

6000

4000

2000

0
FY 08 FY 09 FY 10

Interpretation:-

As we can understand from the graph, company has preferred fixed deposit more then Short-term loans in
the financial year 2008.

In financial year 2009, company short term loan over wheeled fixed deposits, and the same was continued
in the financial year 2010.

51
 8. Total share of Shareholder’s fund in Capital

In million

Shareholder’s Fund FY 08 FY 09 FY 10
Share Capital 986 1043 1226
Reserve and Surplus 97077 123137 171737
TOTAL 98063 124180 172963

FY 10
Share Capital Reserve and Surplus
1%

99%

Interpretation:-

As shown in the table above, reserves and surplus have always been the best source of financing
the business.

As the chart shows, Share capital is only 1% of the total shareholders fund whereas reserve and
surplus have the 99% stake in shareholders fund.

52
 9. Total share of secured and unsecured Loan in Loan funds.

In Million

Loan Funds FY 08 FY 09 FY 10
Secured Loans 28480 64102 62054
Unsecured Loans 20554 9584 21232
TOTAL 49034 74686 83286

FY 10
Secured Loan Unsecured Loan
25%

75%

Interpretation:-

As shown in the above table, we can say that the company prefers Secured loans instead of unsecured
loans.

As we can see from the chart, 25 percent of the total loans taken by the company were unsecured and the
rest 75% were secured.

10. Total share of Share holders fund and Loan fund.

53
In Million FY 2010
Share Capital 1226
Reserves and Surplus 171737
Secured Loans 62054
Unsecured Loans 21232

180000
160000
140000
120000
100000
reserves and
80000 Surplau; 171737
60000
40000
20000 Share Capital; 1226 Secured Loans;
0 62054

Share Capital Unsecured Loans;

21232
reserves and
Surplau
Secured Loans
Unsecured Loans

54
 FY 2010
Share Capital reserves and Surplau Secured Loans Unsecured Loans
0%
8%

24%

67%

Observation: -

Here in this table, I have tried to show the share of each individual source and its total share in
the capital. The first graph shows the total funding of each source in Rs. And the second chart
shows the total share of each source in percentage.

However it can be observed from the table that reserves and surplus is the biggest funding source
with the company, from the given all four Sources it is the most trusted and easy way of
financing.

The total share of Share capital and unsecured loans is 1% and 8% respectively, whereas secured
loans has 24% share in the funds available for the company.

Reserves and surplus has the most stakes in all of the four sources with 67%.

55
CHAPTER 6 CONCLUSION

After studying the components of sources of capital management system of MOTHERSON

AUTOMOTIVE TECHNOLOGY AND ENGINEERING, It is found that the company has a
sound and effective policy and its performance is very well even in this bad recession situation,
company has managed the funds from different sources. Company is competing well at the
domestic level by fulfilling the desired demand from the company. It is among the low cost
producers of automotive parts in the India only because of its proper management of finance,
specially the short term finance known as the managing capital.

The company is a matured one and it has contributed well in the countries growth and
development and will also continue to perform and contribute to the whole nation. In conclusion,
I can say that the companies management is an effective one and knows well the management of
finance, its sources of capital management system is very good because of which only the
company has got the status of HONDA company.

56
Chapter 7 SUGGESTIONS

The year 2009-10 company has lower percentage in Source of Capital as compared to earlier
years. The company must increase its Equity capital and Loan funds. The greater the margin, the
better will be the liquidity of the firm.

 The Company should maintain the low level of creditors because the company can pay
them easily whenever required.
 The company should maintain a proper inventory management system, so the
unnecessary blockage of money can be avoided.
 There should have adequate cash and bank balance with the company to meet short-term
or daily basis requirements of money. The company has low cash and bank balance in the
year 2009 -10 as compared to last years.
 As we have already seen the Debt-Equity ratio of the company is much more than what it
required. If the company can lower its Debt-Equity ratio near to 2:1, the company would
be able to use more financial leverage to increase the return of the Equity Shareholders.


57
 CHAPTER 8

BIBLIOGRAPHY

Websites:-
 www.motherson.com
 www.wikipedia.com
 www.google.com (Search Engine)

58
 MOTHERSON AUTOMOTIVE TECHNOLOGY AND ENGINEERING

PROFIT AND LOSS ACCOUNT year ending 2008, 2009 and 20010

Rs. In Million FY 10 FY 09 FY 08
Income
Gross Sale 210219 199210 124764
Less: Excise duty 18209 16071 10799
Net Sales & 192010 183130 113965
Operating Revenue
Other Income 4929 3700 2439
196940 186830 116404
Expenditure
(Increase)/Decrease in -1370 -4425 -10338
Stock
Raw material 159370 110783 66033
consumed and Goods
purchased
Payments to and 6212 5196 4628
provision for
employees
Other operating 143788 31426 27591
expenses
Interest and finance 2806 2424 2252
charge
Depreciation and 5878 6380 5211
Impairment
166684 151784 95377
Profit before 30256 35046 21027
extraordinary item
and tax
Extraordinary item - - -30
Profit before tax 30256 35046 21027
Provision for current 6064 9841 3241
tax
Provision for deferred 876 -551 1159
tax
FBT 114 113 101
Provision for deferred - - -
tax for earlier years
written back
Net Profit 28609.39 25643 16556

59
BALANCESHEET year ending 2008, 2009 and 20010

Rs. In Million FY 10 FY 09 FY 08
Sources of fund
Shareholders fund
Share Capital 1226 1043 986
Reserves and Surplus 171737 123137 95077

Loan Funds
Secured Loan 62054 64102 28480
Unsecured Loan 21232 9584 20554

Deferred Tax 13237 11258 12333

Liability(Net)
Total 270881 209124 157430
Application of funds
Fixed Funds
Gross Block 126085 112526 104183
Less: depreciation and 46368 42459 36355
Impairments
Net Block 78093 70067 67828
Capital work in 11198 14764 8329
progress
89292 84831 87157
Investments 141080 86753 39713
Current asset, loan
and advances
Inventories 50979 43153 40951
Sundry debtors 15650 15045 12484
Cash and bank 1470 6655 9173
balance
Other current asset, 10418 12930 10420
loan and advances
78517 77783 73028
Less: Current 28948 27434 21996
liabilities and
provision
Provision 9060 12841 9532
38008 40275 31528
Net current asset 40509 37508 41500
Misc expenditure - 32 60
Total 270881 209124 157430

60
BALANCESHEET SKH Metals as on 31st March (Rs. In Lakhs)

2008 2009 2010

Particulars
Sources of funds
Shareholders fund
Share capital 54300000 54300000 54300000
Reserve and surplus 292829576 366638158 573868836
Sub Total 347129576 420938158 628168836
Loan Funds
Secured Loans 969967830 2012898970 2006401280
Unsecured Loans 13426212 202021108 50000000
Deferred Tax Liability 90658186 128050379 143117599
Sub Total 1074052228 2342970457 2199518879
Total 1421181804 2763908615 2827687715
Application of Funds
Fixed Assets
Gross Block 1373378562 2462591634 2661313801
Less: accumulated Depreciation 527895377 627301861 767294226
Net Block 845483185 1835289773 1894019575
Capital Work-in-Progress 232671238 190185752 539782651
Pending allocation to fixed assets 22273037 ------------- -------------
Sub Total 1100427460 2025475525 2433802227
Investments 25014360 69532360 60189900
Current assets, loans & advances
a) Inventories 364984656 687512274 596254298
b) sundry debtors 455568802 675529256 522789700
c) cash and bank balance 1570639 40340520 46774315
d) Interest accrued 11105 2315164 959195
e)Loan & Advances 159835538 335830379 476779005
Sub Total 981970741 1741527593 1643556512
Less:
a)Current Liabilities 671551795 1056075395 1282839825
b) Provision 17383257 16551468 27021099
Sub Total 688935052 1072626863 1309860924
Net Current Assets 293035689 668900730 333695588
Miscellaneous expenditure 2704295 -------------- --------------
Total 1421181804 2763908615 2827687715

61