Working Capital Management Live

A STUDY ON WORKING CAPITAL MANAGEMENT With special Reference to HBL POWER SYSTEMS LIMITED HYDERABAD. PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (Center for Distance Education, Acharya Nagarjuna University) BY BATTULA RAMA KOTI REDDY M. B. A (3 YEARS PATTERN) [2007-2008] Reg. No: A07BU113003 Under the Guidance of Sri. K. Mahidhar General Manager, Finance & Accounts HBL POWR SYSTEMS LIMITED HYDERABAD ACKNOWLEDGEMENT

It is May pleasant duty to express my profound gratitude and esteemed regards to my write an essay my best teacher project guide Sri K. Mahidhar, General Manager, Finance & Accounts, HBL Power Systems Limited. Although I personally bear full responsibility for all the notes in the project report entitled WORKING CAPITAL MANAGEMENT at HBL POWER SYSTEMS LIMITED; a work of this has been done by a team of supportive people – all of whom deserve to the thanked. It is also essential to Mr. N. P. Subramanyam(Finance Manager, HBL) And my project guide to Sri. K.

MAHIDHAR who has assigned me a meaningful topic & give me valuable guidance. (B. RAMA KOTI REDDY) DECLARATION I, B. Rama Koti Reddy, student of M. B. A (3 years pattern), Center for Distance Education, Acharya Nagarjuna University, here by declaring that the project work entitled on “WORKING CAPITAL MANAGEMENT” for HBL power systems Ltd is on original work done by me in partial fulfillment of the requirement of Master of Business Administration. This is not been submitted else where for the award of any degree in part or in full. B. Rama Koti Reddy

CONTENTS I. COMPANY PROFILE 1 II. OBJECTIVE OF THE STUDY III. RESEARCH METHODOLOGY IV. INTRODUCTION TO THE WORKING CAPITAL MANAGEMENT Definitions Concepts of working capital Operating cycle Importance Determinants 2 Techniques 3 V. DATA ANALYSIS & INTERPRETATION Comparative statement of current assets& current liabilities Schedule of changes in Working Capital Working capital related ratios & graphs Debtors management Inventory management Creditors management 4 VI. CONCLUSIONS VII. SUGGESTIONS 1 IX. BIBLIOGRAPHY A. ) Industry Overview

DC Power systems are used across the world for a variety of application where the traditional power supply system cannot be sustained/ supported. The domains that are encompassed in the DC power systems vary from Telecommunications, Aviation, Rail coaches and signaling to Oil Refineries, Power generating stations, Oil drilling and pipelines. These applications have grown significantly in the last two decade due to the embraceable of newer technology and also because the conventional power sources are available only in a limited domain, beyond which the reliance on DC / alternative Power systems is unavoidable.

With the march of technology and it’s blending with the industrial applications there is a need for an efficient and reliable power supply sources at all times and place. DC Power systems provide a back up / alternative source of power for running and maintaining applications wherein loss of power supply is critical. There is a need for the power supply in remote and far-flung areas and at such places the dependence is on DC power sources is complete DC power systems are also required in mobile (non-stationary) applications like Rail coaches, Aviation etc.

In these applications the usage of conventional sources of power / electricity is not possible and DC power supplied thru batteries is to be relied upon. Defense applications too, require power for communications, aviation and naval application like propulsion of torpedoes. The application for DC power also finds place in Defense Research establishments like NSTL (Naval Science and Technological Laboratory), DRDO (Defense Research and Development Organization, DRDL (Defense Research and Development Laboratory amongst others.

The Company is manufacturing specialized batteries and electronics products. The end users of its products are in various sectors i. e. Communications, Railways, Defense, Oil and Natural Gas, Petroleum, Steel, General industry, etc. Most of these segments are core sector of country’s economy. Given the background of inadequacies and shortcomings associated with the power supply situation, every end user requires reliable, consistent and clean power source for running the establishments. Thus back up power requirements are rapidly growing to cater the increasing requirements of the above segments.

Further advent of latest technologies deployed by many sectors like Telecommunications, Info com, Information technology, rail and road transport and manufacturing units having sophisticated computer numerically operated equipment requires continuous and reliable power supply which necessarily has to be met through to back up power only. In remote areas where the mains power supply is not at all available i. e. railways, defense, communications, oil exploration etc. have to depend on back up power supply only. Thus this sector of business all over the world works out to several billion US dollars.

Among these countries like China, India, and South East Asian countries where the requirements of rapidly growing population is also very high. The segments in which we are in business the annual requirement is more than Rs. 3,000 crores having compound growth potential of 10-12% annually. Being in a very vital sector of business and past track record from last 23 years the future for this sector is quite encouraging. Market demand for the products is increasing very rapidly. Liberalized policies of Government of India from 1991 onwards opened up foreign direct investments in several sectors i. . Telecom, Infocom, IT, Transport, etc. This has achieved very satisfactory level of foreign direct investments. Financial sector reforms also will contribute for further growth of economy in several sectors in the years to come. This will increase the demand for technology driven sectors where the usage of back up power is very essential which will be a catalyst for the growth of the company’s business both in terms of volume and value, which will contribute to consistent growth of business of all the products including electronics products. NiCad batteries

Source: Extracts from Investigation on Storage Technologies for Intermittent Renewable Energies: Evaluation and recommended R&D strategy-Nickel batteries dated 2003-06-23 by Investire Network [Project funded by European Community under the 5th frame work programme (1998-2002)] Nickel cadmium (NiCd) batteries have been in industrial production almost as long as lead acid batteries. The NiCd battery of type vented pocket plate (PP), was invented by Jungner in 1899 and is still used with the same design today. NiCd batteries for industrial applications are today a niche product.

The main applications for industrial NiCd batteries are railroad service, switchgear operation, telecommunications, emergency lightning and in uninterrupted power supply. Industrial NiCd-batteries of more modern weight and volume efficient designs than the pocket plate are also used in modern trains, aircraft’s, electrical vehicles (EV) and hybrid electrical vehicles (HEV). Industrial NiCd cells are designed as vented prismatic cells with positive and negative plates containing the positive and negative active materials. There are four different types of vented industrial NiCd batteries commercially available.

Pocket plate batteries Fibre plate batteries Sinter plate batteries Sinter/plastic bonded plate batteries Pocket plate batteries are the oldest and least expensive type with a very reliable and long-life cell design that can stand severe mechanical and electrical abuse. The sinter plate battery was invented 1932 by Shlecht and Ackermann. They have superior high discharge and low temperature performance but are the most expensive battery due to high manufacturing cost and high nickel content. The gap between the superior but high cost and size limited (