WORKING CAPITAL MANAGEMENT AT BINDALPAPER LIMITED. DWARKAPURI MUZAFFARNAGAR (U.P.

Submitt ! B"#$ ARUN KUMAR R%&& N% .'()*(+'''+

I, t- ./0ti/& 1u&1i&&m ,t A2/0! ! %1 D 30

%1

M/4t 0 %1 Bu4i, 44 A!mi,i4t0/ti%,

S5RI RAM COLLEGE OF MANAGEMENT

MUZAFFARNAGAR

C 0ti1i6/t B" C%&& 3

C 0ti1i6/t B" C%m./,"

ACKNOWLEDGEMENT
We take this opportunity to express our deep gratitude to the management of BINDAL PAPERS LIMI ED! DWAR"AP#RI! M#$A%%ARNA&AR '#(P() for pro*iding us the opportunity to get an exposure of heir

esteemed unit( We are sin+ere,y thankfu, to the -R Deptt( Whi+h +o.ordinate our training and WE espe+ia,,y express our thanks to Mr( /hander Mohan Negi '-RD)! Mr( Pra*een! Mr( Deepak! Mr( Nitin! Mr( "ama,! Mr( Ram Singh! Mr( Bi0endra &arg for their +ontinued he,p and guidan+e during our stay here( We 1ish to express our sin+ere gratitude to -2D 3 personne, of A++ount 2ffi+e 1here 1e had detai,ed intera+tion 3 inspiring guidan+e and moti*ation from them(

Last 4ut not the ,east 1e express our deep gratitude to our respe+ted M0. P0/! . Kum/0 Sir! for sending us to su+h a ,arge integrated pu,p 3 paper industry for summer training /,! 3i7i,3 u4 / 6-/,6 t% /68ui0 /, 9. 0i ,6 %1 m" &i1 tim . W /&4% 9.0 44 %u0 4i,6 0 i,! bt, 44 t% %u0 ./0 ,t4 /,! 1/mi&" m mb 04 1%0 .0%7i!i,3 their +ontinued mora, support during our training period(

AR#N "#MAR

DECLARATION
I -ere4y De+,are that the Summer raining Pro0e+t entit,ed WORKING CAPITAL su4mitted in partia, fu,fi,,ment of 5POST GRADUATE DIPLOMA IN MANAGEMENT5 is of my origina, 1ork and not su4mitted for the a1ard of any other Degree! Dip,oma! %e,,o1ship or other simi,ar I LE or PRI$E(

AR#N "#MAR R2LL N2.67897:666:

PREFACE

his is more than one fa+tor at 1ork! 1hi,e 1hi+h +an ensure the true +omp,etion of the pro0e+t( It is not an idea he,d on +ertain topi+ that matter! 4ut it is +omp,ete kno1,edge attaining pro+ess and therefore re;uires an in depth kno1,edge of the topi+ of the pro0e+t( he pro0e+t in+,udes an o*er*ie1 of 1orking +apita, management in BINDAL PAPER LIMI ED(! DWAR"AP#RI 'M(NA&AR)

he *aries and *aried aspe+ts of the pro4,ems has ,ogi+a,,y dis+ussed and systemati+a,,y presented in a simp,e ,anguage(

AR#N "#MAR R2LL N2.67897:666:

TABLE OF CONTENT#$

S(N2

/2N EN S PAR .A

PA&E N2

< 8

E=E/# I>E S#MMER? /2MPAN? PR2%ILE Part B

<.@ :

IN R2D#/ I2N AB2# 9

2PI/

A.B7 @6.@9

RESEAR/- 3 ME -2D2L2&?

ANAL?SIS 3 IN ERPRE A I2N

@B.A7

B(a B(4

BALAN/E S-EE ANAL?SIS 2% %INAN/IAL S A EMEN S @ S#MMER? 2% %INDIN&S 76.78

: 7C 79 7B.<68 A

/2N/L#SI2NS RE/2MMENDA I2N APPENDI= BIBLI2&RAP-? D#ES I2NNAIRE

PART :A;

E<ECUTI=E SUMMER>
Binda, Papers Ltd( Binda, Papers Ltd( is part of the high,y dynami+ and rapid,y gro1ing Binda, &roup 1hose annua, re*enues ex+eed Rs(<6 Bi,,ion'#S E 866 Mi,,ion)( he &roup has a di*ersified Business Portfo,io in Manufa+turing of Pa+kaging grades of paper and paper4oards! tissue papers! iron 3 stee,! 4esides trading of +ommodities the &roup en0oys a strong Leadership position in the "raftF Liner 4oard segment( he &roups fundamenta, 4usiness phi,osophy is di+tated 4y the e*er gro1ing needs of the +ustomer for Dua,ity produ+ts! 4a+ked 4y a ro4ust Ser*i+e /u,ture and +ompetiti*e /osts( In ea+h produ+t +ategory Binda,sG manufa+turing fa+i,ities en0oy the highest operating effi+ien+ies! thus resu,ting in more +ompetiti*e +ost stru+ture( he surp,uses generated 4y the &roup are rein*ested in the +ore paper 4usiness . there4y ensuring +ontinuing gro1th and rising market share( In this perspe+ti*e Binda,sG identified a signifi+ant In*estment opportunity in the high end Printing and Writing Paper se+tor 4y setting up a modern &reenfie,d p,ant in MuHaffarnagar !#P 1ith a manufa+turing +apa+ity of <!66!666 P?( his is expe+ted to generate in+rementa, re*enues'for the group) of o*er Rs(9666 mi,,ion or around #SEA6 Mi,,ion per year( More important,y! the &roup 1i,, parti+ipate in the fast gro1ing -igh Bright SS Map,itho Paper 'un+oated 1oodfree paper)and Branded /opier Paper'+ut.siHe) segments! making it a one.stop.shop paper group! ena4,ing +ustomers to sour+e the 1idest range of papers and 4oards( At Binda, PapersG! 1e ha*e introdu+ed a 1ork +u,ture that im4i4es the 4est >a,ues and Pra+ti+es( his fa+i,itates in pro*iding +ustomers *a,ue added ser*i+es and more than that a uni;ue experien+e( he o40e+ti*e is +,ear,y to he,p +ustomers maximise their produ+ti*ity! minimise their +osts and deri*e highest *a,ue addition in their end produ+ts( he te+hno,ogy insta,,ed is a4so,ute,y +ontemporary !in syn+ 1ith the marketsG emerging re;uirements of high *a,ue! internationa,,y +ompetiti*e papers( Ba+king this is an ex+e,,ent net1ork of distri4utors 1ho offer +ustomised ser*i+es and so,utions and a 1orkfor+e that is 4oth ta,ented and dedi+ated(

C%m./," P0%1i&

AR Paper mi,,s ,td(! unit of the top Indian +orporate +ong,omerateI B("(Bir,a groups of +ompanies is one of +ompanies is the ,eading integrated pu,p and paper p,ants( Esta4,ished in the year <7CA at Saharanpur '#(P() the +ompany after expansion and moderniHation! present,y operates four fi4er

,ines at the fo,,o1ing insta,,ed +apa+itiesJ

 Rayon grade pu,p Writing and Printing Papers '1ood)

J J

C<C86 PA C:8B6 PA A9@66 PA

Writing and Printing Papers'Bagasse) J Writing and Printing Papers 'DIP) J

:B7@6 PA

VISION:

2ur *ision for the mi,,ennium remains manufa+turing of internationa, ;ua,ity produ+ts at optimum +ost in +onsisten+e 1ith the physi+a, and psy+ho,ogi+a, en*ironment 4est suita4,e for +ustomers and stakeho,ders(

Concrete vision elements :

Produ+t ;ua,ity

Safety and En*ironment Satisfa+tion of +ustomer and stakeho,ders /ost Effe+ti*eness Energy +onser*ation

With the emergen+e of the open market e+onomy 1hi+h ,ead to redu+ed tariff 4arriers and the promu,gation of free rade Agreement 1ith thri*ing neigh4oring e+onomies! the +ompetiti*eness of the Indian paper industry has +ome to sharp fo+us on the front of +osts and ;ua,ity( he industry has 4een in tur4u,ent state sin+e the e+onomy 1as opened and the paper import 1as a,,o1ed under 2pen &enera, Li+ense s+heme(

%a+ed 1ith *arious issues and +hanges ,ike! a*ai,a4i,ity of fi4rous ra1 materia,s! te+hno,ogi+a, o4so,es+en+e! +ost! ;ua,ity and en*ironment! the industry has taken steady steps to enhan+e its +ompetiti*eness 4y 1ay of addressing these issues( he demand for paper! paper4oards! and ne1s print has 4een rising in the re+ent past and the domesti+ market has 4een registering gro1th rate of around @K against the 1or,d a*erage of a4out 8(AK(

he present paper high,ights the status of the Indian paper industry 1ith respe+t to key market indi+ators( Data has 4een presented for produ+tion! import! export! demand and +onsumption of paper! paper 4oards and ne1sprint +o*ering te+hno,ogi+a, status of the Indian paper industry( Dis+ussions ha*e 4een made on the 4asis of issues re,ated to ra1 materia,s s+enario keeping in *ie1 the present and future demand(

Present status and profita4i,ityJ

he pu,p and paper industry presents an in+oherent pi+ture today! 1ith mi,,s of

*arious siHes strugg,ing to sur*i*e side 4y side! un,ike the Western +ounterparts 1here the ha*e a +apa+ity of <66666 tones per ma+hine per annum has 4e+ome a norm here in India 1e ha*e a mi,, +apa+ity of <6666 tones per annum( he tota, siHe of Indian paper industry in terms of *o,ume is approximate,y B(: mi,,ion tones and the gro1th rate of the industry is a4out BK to @K per annum( Exports from India a++ount for mere CK of the

industry *o,ume( Whi,e the per +apita +onsumption has in+reased it is Bkg( his is *ery ,o1 as +ompared to the rest of the 1or,d a*erage of 9@kg( he per +apita +onsumption of /hina! Iran! Egypt and hai,and are at 8@kg! <@ kg! <C kg and B(B kg respe+ti*e,y(

WORLD WISE DISTRIBUTION

DIS RIB# I2N 2% MILLS A4o*e <66666 B6666.<66666 86666.B6666 <6666.86666

N2(2% #NI S << <6 87 AB

/APA/I ? of B(:mi,,ionFannum 8C <8 <B <B

Be,o1 <6666 2 AL

C9A 9AC

CB <66

STRUCTURE OF INDIAN PAPER INDUSTR>

here are around :66 pu,p and paper mi,,s in India produ+ing near,y @(Ami,,ion tones of paper and ne1sprints out of 1hi+h B(A mi,,ion tones a++ount for paper and paper 4oards and the remaining in ne1s print( he mi,,s in the +ountry +an 4e +,assified into three +ategories( Mi,,s that ha*e integrated! ,arge,y forest 4ased operations produ+e o*er <66 PD are +,assified as ,arge mi,,s( hese mi,,s are CC in num4er and a++ount for C@K of the tota, produ+tion( Medium siHed mi,,s that ha*e +apa+ity 4et1een B6.<66 PD using agro 4ased ra1 materia,s

they are <@B in num4er( hese a++ount for 87K of the tota, produ+tion( he mi,,s up to B6 tones uses 1aste paper as fi4er 4ase these are B<6 in num4er and a++ount to a4out CBK of the tota, produ+tion( In past fe1 years many mi,,s 1hi+h 1here using rene1a4,e +rop residue as fi4er 4ase ha*e no1 shifted to re+y+,ed fi4er in the fa+e of the /REP norms! 1hi+h stipu,ated the /hemi+a, Re+o*ery for the mi,,s(

PART :B;

INTRODUCTION ABOUT T5E TOPIC

WORKING CAPITAL MANAGEMENT#$

Working +apita, management is an important aspe+t of finan+ia, management( In 4usiness! money is re;uired for fixed and 1orking +apita,( %ixed assets in+,ude 4ui,ding! p,ant and ma+hinery! furniture and fitting et+( %ixed assets are re;uired to 4e retained in the +onsumer for a ,ong period and yie,d returns o*er the ,ife of su+h assets( Working +apita,! on the other hand is re;uired fir the effi+ient and effe+ti*e use of fixed assets( he main o40e+ti*e of 1orking +apita, management is to determine the optimum amount of 1orking +apita, re;uired(

he *arious topi+s dis+ussed in management of 1orking +apita, areJ I. II. D 1i,iti%, %1 2%0?i,3 6/.it/& T". 4 %1 2%0?i,3 6/.it/&

III. I=. =. =I.

N ! 1%0 2%0?i,3 6/.it/& Fi,/,6i,3 %1 2%0?i,3 6/.it/& F/6t%04 ! t 0mi,i,3 2%0?i,3 6/.it/& A! 8u/6" %1 2%0?i,3 6/.it/&

=II. A!7/,t/3 %1 /! 8u/6" %1 2%0?i,3 6/.it/&

DEFINITION OF WORKING CAPITAL

here are 8 +on+ept of 1orking +apita,J @. G0%44 2%0?i,3 6/.it/& ). N t 2%0?i,3 6/.it/&

(I) G0%44 W%0?i,3 C/.it/& C%,6 .t#

A++ording to this +on+ept 1orking +apita, means gross 1orking +apita,! 1hi+h is the tota, of a,, the +urrent assets of the 4usiness(

G0%44 W%0?i,3 C/.it/& A T%t/& Cu00 ,t A44 t4

D 1i,iti%,4 1/7%0i,3 t-i4 6%,6 .t /0 # <( LWorking +apita, means tota, of +urrent assets(M

...Mead! Ma,,ott and %ie,d

8( LAny a+;uisitions of funds 1hi+h in+rease the +urrent assets in+rease 1orking +apita,! for they are one and the same(M

...Bonne*i,,e and De1ey

(II) N t W%0?i,3 C/.it/& 6%,6 .t#

A++ording to this +on+ept! 1orking +apita, means net 1orking +apita,! 1hi+h is the ex+ess of +urrent assets o*er +urrent ,ia4i,ities(

N t 2%0?i,3 6/.it/& A 6u00 ,t /44 t4 $ 6u00 ,t &i/bi&iti 4

D 1i,iti%,4 1/7%0i,3 t-i4 6%,6 .t /0 #

<( LIt has ordinari,y 4een defined as the ex+ess of +urrent assets o*er +urrent ,ia4i,ities(M

8(

L he most +ommon definition of net 1orking +apita, is the differen+es of firmGs +urrent assets and +urrent ,ia4i,ities(M

As dis+ussed net 1orking +apita, is the ex+ess of +urrent assets o*er +urrent ,ia4i,ities( If +urrent assets are e;ua, to +urrent ,ia4i,ities! net 1orking +apita, 1i,, 4e Hero and if +urrent ,ia4i,ities are more than +urrent assets! net 1orking +apita, 1i,, 4e negati*e(

/urrent assets mean those assets 1hi+h are +on*erted into +ash 1ithin a short period of time not ex+eeding one year! e(g( +ash! 4ank 4a,an+e! de4tors! 4i,,s! re+ei*a4,e! sto+k! a++rued in+ome et+( /urrent ,ia4i,ities means those ,ia4i,ities 1hi+h ha*e to 4e paid 1ithin a short period of time in no +ase ex+eeding one year! e(g( +reditors! 4i,,s paya4,e! outstanding expenses! short term ,oans et+(

NEED FOR WORKING CAPITAL

%or this purpose 1orking +apita, is needed 1hi+h sha,, 4e in*o,*ed from the pur+hase of ra1 materia,s to the rea,iHation of +ash( he time period! 1hi+h is re;uired to +on*ert ra1 materia,s to the rea,iHation of +ashN he time period! 1hi+h is re;uired to +on*ert ra1 materia,s into finished goods and then into +ash is kno1n as

operating +y+,e or +ash +y+,e(

he time need for 1orking +apita, +an a,so 4e exp,ained 1ith the he,p of

operating +y+,e( 2perating +y+,e of a manufa+turing +on+ern in*o,*es B phasesJ /on*ersion of +ash into ra1 materia, /on*ersion of ra1 materia, into 1ork in progress /on*ersion of 1ork in progress into finished goods

/on*ersion of finished goods into de4tors 4y +redit sa,es /on*ersion of finished goods into +ash 4y rea,iHing +ash from them

O. 0/ti,3 C"6&

hus the operating +y+,e starts from +ash! finishes at +ash and then again restarts from +ash( Net for 1orking +apita,s depends upon period of operating +y+,e( &reater the period more 1i,, 4e the need for 1orking +apita,( Period of operating +y+,e in a manufa+turing +on+ern is greater than period of operating +y+,e in a trading +on+ern 4e+ause in training units +ash is dire+t,y +on*erted into finished goods(

Be+ause of the time in*o,*ed in an operating +y+,e there is a need of 1orking +apita, in the form of +urrent assets( %irms ha*e to keep ade;uate sto+k of ra1 materia,s to a*oid risk of non.a*ai,a4i,ity of ra1 materia,s( Simi,ar,y! +on+erns must ha*e ade;uate sto+k of finished goods to meet the demand in market on +ontinuous 4asis and to a*oid 4eing out of sto+k((

In addition to a,, these! +on+erns ha*e to ne+essari,y keep +ash to pay the manufa+turing expenses et+( and to meet the +ontingen+ies(

CASH

Debtors and bills receivables

Raw Materials

Finished goods

Work- in Progress

T5E INDIAN PAPER INDUSTR>

IND#S R? ?PE

SALES 2PERA I2N ' 2NS PER DA?)

2% N2( 2% MILLS

PR2D#/ I2N S-AREK

Large

integrated <6<.A66 'A*g( C66) B6.<66 'A*g( @6)

CC

C@

1ood 4ased Medium agro 4ased

<@B

87

Sma,, 1aste paper

B.B6 'A*g( <B)

B<6

CB

ota,

:6A

<66

ANNUAL POTENTIAL OF AGRO BASED FIBRES IN INDIA

A30% 0 4i!u Wheat stra1 Ri+e stra1 Bagasse Oute! Mesta ota,

A7/i&/bi&it" (Mi&&i%, t%, 4) 88 <B <8 8 B<

N/m %1 6%m./," Ba,,arpur Industries Ltd('BIL ) I / Bhadra+ha,am ami, Nadu Paper Ltd(' NPL) -industan Paper /ompany Binda, Paper Ltd( O" Paper Ltd( Rama Ne1sprint Ltd('RNPL)

C/./6it"(mi&&i%, t%, 4) 6(9B 6(8C 6(86 6(86 6(<7 6(<B 6(<C

TOP + PLA>ERS IN T5E INDUSTR>

* MABOR CATEGORIES OF PRODUCT

N/m %1 t- P0%!u6t Industria, Paper Writing Paper Spe+ia,ty

C S-/0 9B C: <(A

Ne1sprint

REC>CLED WASTE PAPER

he use of 1aste paper has made a signifi+ant progress in ,ast fe1 years( Whi,e in <7:6! the produ+tion of paper 4ased on 1aste 1as mere,y BK! amounting to C:666 tons and it 1as in+reased to @(B ,akhs tones in the year <779.7B! +ontri4uting to 8@K of the tota, produ+tion( his share of 1aste paper 1as further in+reased to 8

mi,,ion tones in the year 866B.6@! +ontri4uting to a4out C9K of the tota, produ+tion( Being produ+ed from near,y B<6 num4ers of sma,,! medium and ,arge produ+ing units 1ith an insta,,ed +apa+ity of BA(C ,akh tones(

he out,ook for the use of re+y+,ed paper is 4right in the industry despite the fa+t that the re+o*ery rate is ,o1 and the fi4er ;ua,ity is poor( his ne+essitates the in+orporation of the imported 1aste paper of ,ong fi4er origin to a+hie*e satisfa+tory ;ua,ity( he re+y+,ed 1aste paper 4ased mi,,s therefore ha*e 4een +ontinuous,y urging the go*ernment for +ertain +on+essions and in+enti*es ,ike A4o,ition of +ustom duty on 1aste paper(

 A4o,ition of sa,es tax on sa,es of 1aste paper( $ero +ustom duty for e;uipment and ma+hines for the re+y+,ed 1aste paper(

/2#N R?

PER

/API A RE/2>ER? RA E K 9B(B :C(C 96(@

/2NS#MP I2N'"&) #SA &ERMAN? #(" CB9 8<B 8<B

%RAN/E OAPAN SWEDEN /-INA INDIA

<BC 89C 8B: C6 @

B<(C B@(C @C C< 86

Waste paper re+o*ery and trading are sti,, is unorganiHed in India and ,o1 re+o*ery is attri4uted toJ. #norganiHed +o,,e+tion of the 1aste paper! 1hi+h is +onfined on,y to the ma0or to1ns and that to a ,imited extent( Segregation is not +arried out at the se,e+tion! resu,ting in +ontamination( A4sen+e of fa+i,ities for se,e+tion! sorting and 4ai,ing

PAPER INDUSTR> AT A GLANCE

&,o4a,iHation has 4e+ome the most important message for the de*e,opment of the industria, se+tor in India 1hi+h means the industries ha*e to 4e+ome 4oth +ompetiti*e and +ost effe+ti*e( During 866< BIL a+;uired t1o ,arge unitsJ Sinar Mas '+oated papers.A6666 tones per annum) and Ser*a,, 'spe+ia,ty +oated 4oard unit. :B666 tones per annum) taking the group +,ose to 6(9B mi,,ion tones per annum(

Simi,ar,y! O" /orp! 1hi+h had t1o units! one at 2rissa state '76666tones pre annum) and another +entury at gu0rat '@6666 tones per annum) 4oth for produ+tion of ;ua,ity Map ,itho and +opier papers! has merged 4oth the units and is no1 kno1n as O" Papers Ltd( /ompanies ,ike BIL ! O" Industries! I / Bhadra+ha,am! Star paper mi,,s Ltd( ha*e fo+used their attention in expansion of the paper industry( heir aim is to merge the potentia,,y profita4,e units and expand the existing units( hese +ompanies are a,so ,ooking for

strategi+ a,,ian+e o*erseas in *ie1 of +ontro,,ing the ;ua,ity ra1 materia, at an afforda4,e +ost on ,ong term agreements! or foe the introdu+tion of the modern high yie,ding forestry te+hni;ues( A num4er of sma,, and medium se+tors are 4een +,osed in their ina4i,ity to +ompete in the market( Duiet a num4er of units 4ased on agro residues are fa+ing +,osure 4e+ause of popu,ation and some of them are +on*erting their mi,,s into re+y+,ed fi4er and manufa+turing the +heaper grade of paper and they are supp,ying it to the ni+he market( During the

next fe1 years the industry 1i,, 4e seeing some uphea*a, in restru+turing! a+;uisitions and mergers( he paper industry is high,y +apita, in+enti*e 1ith a ,o1 turno*er ratio( he de4t e;uity ratio desired is <(BJ<( Sin+e no grassroots +apa+ity is p,aned! optimiHation in effi+ien+y is the route taken 4y the industry( he future for the effi+ient mi,,s ,ooks to 4e good(

C%m./," P%&i6"#$
We at /entury Pu,p and Paper are +ommitted to strengthen our position as market ,eader in manufa+turing of 1riting and printing paper and rayon grade pu,p 4y de*e,oping a +ompany 1ide +u,ture thatpromotes J

/ustomer de,ight

Dua,ity! En*ironment! Safety and Information Se+urity initiati*es En*ironment friend,y! Safe and Energy effi+ient operation Prote+ting Information of a,, Stakeho,ders

W 2i&& 6%,ti,u%u4&" .u04u 1%0 #$

Near,y 88B6 peop,e are 1orking as a team to a+hie*e the o40e+ti*e of the organiHation( here is an ex+e,,ent harmony 4et1een the emp,oyees union and the management(

he +ompany has esta4,ished a strong 4rand image in the domesti+ and o*erseas market 1ith ex+e,,ent ;ua,ity of its produ+ts and ser*i+es and +aters to di*ersify se+tors ,ike note 4ooks 3 ex+e,,ent diaries! +ontinuous stationary! +opier! en*e,ops! offsets printing ! se+urity papers! industria, papers and *is+ose fi,ament yarn 3 +e,,ophane paper(

he +ompany has 4een a1arded go,den status 4y D%& ! go*t( of India as go,den star trading house at the +orporate ,e*e,( he unit is IS2 766<J 866A! IS2 <966<J 8669! 2-SAS <A66<J 866: and ISMS 'IS2 8:66<J 866B) +ertified unit( he Bagasse Based Papers are e+o ,a4e,ed(

RAW MATERIALS#.
/ompaniesG main ra1 materia,s areJ <(Eu+a,yptus 8(Pop,ar

C(Bam4oo 9(Bagasse B(Waste Papers

COMPANIES MARKETING POLIC>#$

/ompanies marketing po,i+y is targeted to meet +ustomersG need and satisfa+tion( Present,y the +ompany is a,so exporting its Paper to *arious +ountries( he head offi+e of the /ompany is at "o,kata(

Major Countries Exported :

Ma0or +ountries to 1hi+h Star has exported during the year <777.866B are #AE! Singapore! Sri Lanka! Egypt! Bang,adesh! Nepa, 3 Myanmar(

Countries Exporting Currently :

SPM is +urrent,y exporting to #AE! Singapore! Sri Lanka! Egypt! Bang,adesh 3 Nepa,! Myanmar! Ma,aysia! South Afri+a! Ma,ta! anHania and Austria(

Seeking Export Enquiries :

SPM is +urrent,y seeking export en;uiries from a,, o*er( he +ompany 1ho,ehearted

1e,+omes inno*ati*e ideas and produ+ti*e s+hemes(

SPM PRODUCTS
SPM range of produ+ts in+,udes finest *arieties of J. <(Writing 3 Printing Paper

8(Industria, Papers C(Spe+ia,ity Papers 9(Se+urity Papers %rom di*ersified range of ra1 materia,s(

Star par+hment! N/R 4ase ! o*er,ay tissue! 1ax mat+h tissue! Star index! MI/R +he;ue paper! 4uff pu,p 4oard! Rai,1ay 4ond! aHure ,aid'i*ory)! M% +o*er '#> fi4er)! SS map ,itho! super 1hite map ,itho! super shine printing! 4ase paper for +oating! sti+ker 4ase paper! +opier paper :B &SM! 'e+o.mark) are some of the *arieties that ha*e 1ide range of app,i+ations(

SPM a,so manufa+tures high ;ua,ity disso,*ing Rayon &rade Pu,p! ra1 materia, for *is+ose fi,ament yarnFstap,e fi4er and 4,ea+hed -ard1ood Paper &rade Pu,p( SPM has fo,,o1ing Produ+tion #nitsJ.

RA>ON GRADE PULPDPAPER GRADE PULP#$

his fi4er ,ine manufa+tures 1ood pu,p 1ith Eu+a,yptus 3 pop,ar furnish for disso,*ing grade as 1e,, as Paper grade app,i+ation( Star is the one of the ,eading supp,iers to Rayon Industry for >is+ose fi,ament ?arn manufa+ture( he pu,p a,so finds app,i+ation as fi,,er in Me,amine %orma,dehydeF#rea! %orma,dehyde for

making me,mo 1areFe,e+tri+a, s1it+hes(

WRITING E PRINTING PAPER (WOOD BASED)#$

he integrated p,ant in+orporate Eu+a,yptus 3 Bam4oo furnish to produ+e papers ranging from 96 to 8<6 &SM( he p,ant is e;uipped 1ith t1o paper ma+hines 1ith a tota, +apa+ity of <<6 DP 3 manufa+tures some of the finest ;ua,ities of spe+ia,ty papers(

BAGASSE $ BASED PAPERS#$

he p,ant in+orporates modern! state of the art ma+hinery 3 te+hno,ogy 3 is 4ased on a +omp,ete,y en*ironment.friend,y +on+ept( he sa,ient features are a uni;ue B,ea+hing se;uen+e 1ith /h,orine.Di.2xideP 2xygen enri+hed extra+tion stage a,ong 1ith EnHyme Pre.B,ea+hing! 4iote+hno,ogy app,i+ation that the +ompany has pioneered to imp,ementP and a +omprehensi*e +omputer.aided +ontro, system( he -igh.Speed

Paper ma+hine is e;uipped 1ith firm press for on.,ine +oating app,i+ation( *arieties of Writing 3 Printing Papers of BC.<C6 &SM in+,uding /opier(

he produ+t range in+,udes fine

REC>CLED FIBER F BASED PAPERS#$

A se+ondary %i4er 4ased p,ant manufa+turing 1riting printing paper( DIP p,ant is e;uipped 1ith 8.stage f,oatation and 8.stage 4,ea+hing( Latest te+hno,ogy in+orporated in this p,ant fa+i,itates produ+tion of finest paper ;ua,ity in this +ategory( he produ+t range in+,udes 1riting and printing papers of B8.<C6 &SM(

TISSUE PLANT#$

Prime &rade issue P,ant of <66 PD 1ith -i.speed Ma+hine '8666 mpm) supp,ied 4y Metso is e;uipped 1ith ,atest te+hno,ogy to produ+e finest ;ua,ity in this +ategory( oi,et! /.%o,d! and kit+hen o1e, et+( in the range <C.96 &SM( he Produ+t range 1i,, in+,ude %a+ia,! Napkin!

COMMITMENT TO GUALIT> E SER=ICE#$

At star! Dua,ity is an a,, per*asi*e +ommitment( We stri*e to +ontinua,,y impro*e the ;ua,ity of our produ+ts and ser*i+es! 1hi+h ha*e 4een! affirmed in the form of IS2 766<J866A +ertifi+ations to the +ompany for its Dua,ity Management system( he +ompany has 4een responsi*e to the +hanging market re;uirement and has de*e,oped ne1 Dua,ity Produ+ts to +are to the *arying end uses(

CARE FOR EN=IRONMENT#$

Preser*ing and Prote+ting the En*ironment is a top priority at Star( We a,1ays sensiti*e to our 4io.di*ersity of the soi,! 1ater and Air around us( SPM po1er p,ant maintains an effi+ient system for redu+ing air emissions( E,e+trostati+ Pre+ipitators ha*e 4een insta,,ed to remo*e parti+u,ates form re+o*ery 4oi,ers! +oa, fired 4oi,ers and ,ime ki,n f,ue gases(

In stri+t adheren+e to the standards 3 guide,ines! the eff,uents are treated in a modern E P! 1hi+h is re+ogniHed as a mode, p,ant for its effi+ien+y 3 performan+e( /ompanyGs adoption of a systemati+ approa+h to the en*ironment matters in+,uding 1aste minimiHation! 1ater re+y+,ing 3 re.use programs of 4y produ+ts has fa+i,itated the +ompany in getting the IS2.<966<J8669 +ertifi+ation for its En*ironment Management System(

/ompanyGs friendship 1ith En*ironment has a,so ref,e+ted in itGs Bagasse 4ased paper 4eing ,i+ensed for E+o ,a4e,ing! a distin+t honor to 4e attained(

POWER BLOCK#$

Po1er house has : +oa, fired Boi,ers 3 three ur4ines( he tur4ines are of @(A MW B-EL & Set 'Extra+tion Ba+k pressure)! 8< MW D" & Set 'Dou4,e Extra+tion /ondensing type) 3 <@ MW B-EL ur4ine( B Boi,ers are f,uidiHed Bed Boi,ers out of 1hi+h C %(B(/( Boi,ers are of 8C Fhr! 9: ata! 986 6+ ea+h 3 8 %(B(/( Boi,ers are of B6 Fhr! @C ata! 9A6 6/ ea+h! < Boi,er is Spreader Stoker +oa, fired Boi,er of 8B Fhr! 9:ata! 986 6/ 3 < Boi,er is Pith Boi,er of @6 Fhr! @@ ata! 9AB6/(

CARING OF T5E COMMUNIT>#$

Star +ares for the +ommunity at ,arge 3 stri*es to 4e a good +orporate 3 so+ia, +itiHen( We a+ti*e,y +ontri4ute to the +ommunity de*e,opment of the areas in our surroundings 3 regu,ar,y +ondu+t medi+a, +amps! undertake +onstru+tion 1ork of s+hoo,s! drinking 1ater fa+i,ities! se,f.emp,oyment s+hemes et+(

MARC5ING A5EAD#$

he +ompany has em4arked on a prestigious expansion program to insta,, a modern fi4er ,ine 'E/%) and mu,ti,ayered 4oard p,ant a,ong 1ith a ne1 ur4ine 3 /hemi+a, Re+o*ery Boi,er(

AWARDS E 5IG5LIG5TS Nationa, Energy /onser*ation A1ard in Pu,p 3 paper Se+tor for the year 8669! 866@! 3 866A 4y &o*t( of India at Ne1 De,hi(

Nationa, A1ard for Ex+e,,en+e in Energy Management for the year 866: 3 866A 4y /II( Nationa, Safety a1ard for outstanding performan+e in industria, Safety for the performan+e year 866@ 4y &o*t( of India! as runner up on <:th Sep 866A at Ne1 De,hi( IPMA En*ironment A1ard I Ist priHe for En*iornment /onser*ation in 866@ for the year 866B.6@(

Energy /onser*ation A1ard for the year 8668 3 8669 4y QIndian Paper Makers Asso+iationG( Ex+e,,ent A1ard to QS"?LAR"G Dua,ity /ir+,e in Nationa, /onser*ation on Dua,ity /ir+,e 'N/D/G6A) he,d at >adodara in No*G6A(

Based on the En*ironment Management 3 /,eaner e+hno,ogy Adopted! /PP 1as se,e+ted as a LMode, #nitM in the fie,d of QWaste MinimiHation AuditG 4y /P/BFNP/( A1arded LE+o La4e,ingM for +opier Paper from Bagasse 3 some of the *arieties of 1riting 3 Printing Paper from Bagasse(

PROCESS DESCRIPTION#$

he +ompany has four streets of produ+tion *iH( WPP! Bagasse 3 Re+y+,ed fi4er 3 R(&(P( Streets( A 1ide *ariety of 1riting and printing paper is manufa+tured in WPP Bagasse 3 Re+y+,ed fi4er streets and Rayon grade is manufa+tured in R(&(P( Street( he main steps in manufa+turing paper F Rayon &rade pu,p are as fo,,o1sJ

 /hipping of the ,ogs of Bam4oo! Eu+a,yptus F Pop,ar in WPP street and eu+a,yptus in R&P street to a4out <M siHe +hips and strong in +hips si,o( Bagasse un,oading! handing depithing! pi,e 4ui,ding! re+,aiming and 1ashing in Bagasse Street(

 /ooking I Su,phate Pro+essP In WPP 3 R&P Streets! >erti+a, 4at+h digesters 'for +hips +ooking) 3 in Bagasse street! /ontinuous u4e type Digester 'for Bagasse fi4er +ooking) are in operation( he +ooking pro+ess is +arried out at preset temperature and pressure in presen+e of +ooking +hemi+a,s for spe+ified +ooking period(

 Remo*a, of knots Fun+ooked Fpartia,,y +ooked portion of the materia, o4tained from Digesters on knotters( Washing of pu,p in Bro1n sto+k Washers to remo*e Spent /hemi+a,s 3 2rgani+ Matter( S+reening 3 /,eaning of the pu,p to remo*e impurities(

 B,ea+hing of the Pu,p 4ased on the ,atest te+hno,ogy to attain fina, Pu,p 4rightness as per re;uirement( SiHing 3 Loading of pu,p sto+k in the sto+k preparation se+tion to a+hie*e desired ;ua,ities in fina, produ+t(

 Paper sheet formation in Paper Ma+hines 'WPP 3 Bagasse Streets) e;uipped for on.,ine ;ua,ity produ+ts(

WORKING CAPITAL #F
M /,i,3 %1 W%0?i,3 C/.it/&
/apita, re;uired for a 4usiness +an 4e +,assified under 8 main +ategories *ia! <) %ixed /apita, 8) Working /apita,

FINDINGS OF T5E STUD>

2n an a*erage! this +ompanyGs return on +apita, emp,oyed ratio is Maintained at a satisfa+tory ,e*e,(

 An in+rease in the +urrent ratio indi+ates that the +ompany is strengthening its ,i;uidity position( As the +ompany +urrent ratio is in+reasing rapid,y and it is mu+h greater than the +on*entiona, norm '8J<) 4ut it is pro,ifi+ for the /ompany to maintain an optimum ,e*e, of ,i;uidity to earn a maximum

Return on in*estment(

During the study period! the ,i;uid ratio is found f,u+tuating e*ery year( /ompanyGs ;ui+k ratio is ,ess than idea, ratio '<J<) in pre*ious year 1hi+h indi+ate that +ompany had ,i;uidity pro4,em But in /urrent year +ompany has no ,i;uidity pro4,em 4e+ause it is more than an idea, ratio(

he fixed assets ratio indi+ates that the 1orking +apita, of this +ompany is funded 4y ,ong.term funds 1hi+h indi+ate effi+ient funds management(

he +ompany 1orking +apita, turno*er ratio is de+reasing 1hi+h indi+ates that the +ompany is not using its 1orking +apita, effi+ient,y(

he firm a*erage +o,,e+tion period is s,ight,y in+reasing as +ompare to pre*ious year( It sho1s that the firm has Li4era, /redit po,i+y( hese +hanges in po,i+y are due to +ompetitorGs +redit po,i+y

he +ompany de4tor turno*er ratio is de+reasing year to year( his sho1s that +ompany is not uti,iHing its de4tors effi+ient,y( No1 their +redit po,i+y 4e+omes ,i4era, as +ompare to pre*ious year(

In 8667 the +ompany has higher in*entory turno*er ratio as +ompare to pre*ious year( his sho1s that the +ompanyGs in*entory management te+hni;ue is effi+ient as +ompare to ,ast year(

SUGGESTIONS OF T5E STUD>

2n the 4asis of the ana,yses and o4ser*ations! a fe1 suggestions as 4e,o1J he +ompany is a profit seeking oneP it has to +ommit a,, of its resour+es to a+hie*e its goa, as it is trying to enhan+e the *a,ue of its o1n and there4y to its shareho,ders( o a+hie*e this! profita4i,ity!

,i;uidity and so,*en+y position are +ru+ia, e,ements to 4e monitored +arefu,,y! there4y the trade off +an 4e rea+hed(

C%m./," 4-%u&! /&4% t/? 1i,it 4t .4 t%J

<(Impro*e operationa, effi+ien+y 4y 1ay of in+rease in produ+tion and redu+tion in +onsumptions ,ike steam! po1er! ra1 materia,! +hemi+a,s! pa+king materia,! stores 3 spa+es et+( 8(Aggressi*e,y imp,ement restru+turing of interna, +ost frame1ork( C(Drasti+a,,y redu+e operationa, +apita, expenditure(

9(Defer non.essentia, +apa+ity expenditure and +apa+ity expansion( B(Put on ho,d any p,ans for a+;uisitions un,ess +onsidered strategi+a,,y +riti+a,( @(Redu+e unprodu+ti*e expenditureF o*erheads ,ike te,ephone! tra*e,,ing expenditures( :(Redu+e the repairs and maintenan+e expenditure! 4ui,ding repairs and ma+hinery repairs et+(

A(Defer non essentia, +apita, expenditure( 7( he entire in*entory ,ike ra1 materia,! stores 3 spares! pa+king materia,! +hemi+a,s! fe,tP 1ire et+( to 4e redu+ed kept at minimum ,e*e,( <6(Sa,es department must see that finished goods sto+k is kept at minimum ,e*e, 1ith 4est rea,iHation(

CONCLUSION
Working +apita, is *ery essentia, for su++ess of a 4usiness and! therefore! needs effi+ient management and +ontro,( Ea+h of the +omponents of the 1orking +apita, needs proper management to optimiHe profit(

he study re*ea,s that the ,i;uidity position of this +ompany is +omparati*e,y goodinyear 866A.67 as +ompare to pre*ious years( he ratios re*ea, that the +ompanyGs a4i,ity in managing the +urrent assets is found inade;uate 1hi+h re;uire generation of more sa,es( 2n the 1ho,e! it +an 4e +on+,uded that the +ompanyGs o*era,, 1orking +apita, management is not at desired ,e*e, and 1e ha*e made the rea,isti+ re+ommendation for the impro*ement in

operationa, and manageria, effi+ien+y of the +ompany as to maintain and in+rease further 4y effe+ti*e uti,iHation and +ontro, of a,, the assets(

LIMITATIONS OF T5E STUD>

<( his study is ,imited to t1o years( 8( he study is restri+ted to the app,i+ation of ratio ana,ysis

C( his study is ,imited to on,y one +ompany 9( he data of this study has 4een primari,y taken from pu4,ished annua, reports on,y(

RECOMMENDATION

/(S(

/entra, Sa,es ax(

 S(P(M(

Star paper mi,,s ,imited

/S2

+orporate so+ia, responsi4i,ity(

&SM

&ram s;uare meter(

 L(S(

Lo+a, Sa,es ax(

Metri+ tones

 PM I>

Paper ma+hine num4er four

WPP

Writing and Printing Paper(

BIBLIOGRAP5>#
T 9t B%%?4# Bha,,a >("(! L%inan+ia, Management!M <777! Su,tan /hand 3 Sons Pu4,i+ations ! Ne1 De,hi(

 "othari /(R( LResear+h Methodo,ogy Method 3 e+hni;uesM Wish1a Prakashan ! Daryagan0 ! Ne1 De,hi.<<6 668 &upta S( P( L%inan+ia, Management!M 866C! Sahitya Bha1an Pu4,i+ations! Ne1 De,hi( B%u0,/&4 E M/3/Hi, 4#

 Business oday /ompanyGs annua, report /ompanyGs pu4,ished 0ourna,s W b Sit 4#

 www.Starpapermills.com 111(goog,e(+om www.yahoo.com

www.indianexpress.com

 111(1ikipedia(org

QUESTIONNAIRE

<( Are you satisfy 1ith the %M Po,i+ies of the S(P(MN

A( ?es '@6K) B( No 'C6K)

/( Not to say '<6K)

1st Qtr 2nd Qtr 3rd Qtr

8( Are you satisfied 1ith the emp,oyeeGs 1e,fare s+hemes pro*ided 4y the S(P(MN A( ?es B( No ':6K) '8BK)

/( Not to say 'BK)

1st Qtr 2nd Qtr 3rd Qtr

C( What are you say a4out Li4rary %a+i,ities in S(P(MN Is it 4enefi+ia,. A( ?es 'B6K) A( No 'B6K)

1s t Qtr 2nd Qtr

9( -o1 1ou,d you rate 4ooks of ,i4raryN A( >ery usefu, 'C6K) B( #sefu, '96K) /( 2rdinary 'C6K)

1s t Qtr 2nd Qtr 3rd Qtr

B ( What do you say a4out Medi+a, fa+i,ities pro*ided 4y S(P(MN Is it up to mark.

A( ?es '7BK) B( No 'BK)

1s t Qtr 2nd Qtr

@( Are you satisfied 1ith the sports and others +o. +urri+u,ar a+ti*ities in S(P(MN

A( ?es 'A6K) B( No '86K)

1st Qtr 2nd Qtr

:(P,ease %i,, the Matrix &i*en 4e,o1.

S. N%. <( 8( C(

G0 /t t-i,3 /b%ut t- 1/6i&iti 4 b i,3 .0%7i! ! - 0 Li4rary Edu+ation Medi+a,

A0 / %1 im.0%7 m ,t

9( B(

/,u4 &enera,

A( Any Suggestion. .....................................................................................................................