A STUDY ON RECEIVABLE MANAGEMENT WITH SPECIAL REFERECEN TO CALTEX LUBRICANTS INDIA LIMITED CHENNAI

BY J. ELANGOVAN REG NO : 35103077

A PROJECT REPORT SUBMITTED TO THE SCHOOL OF MANAGEMENT In the FACULTY OF ENGINEERING & TECHNOLOGY

In Partial fulfillment of the requirements For the award of the degree Of MASTER OF BUSINESS ADMINISTRATION

SRM SCHOOL OF MANAGEMENT SRM INSTITUTE OF SCIENCE & TECHNOLOGY DEEMED UNIVERSITY KATTANKULATHUR 603 302 APRIL 2005

i BONAFIDE CERTIFICATE

Certified that this Project report titled RECEIVABLE MANAGEMENT is the bonafide work of Mr. J. ELANGOVAN, who carried out the research under my supervision. Certified further, that to the best of my knowledge the work reported herein does not form part of any other project report of dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

Internal Guide T.P. NAGESH, M.Com.,BL., FICWA,

Head of the Department Dr.JAYASHREE SURESH

ii ABSTRACT Receivable represent amounts owed to the firm as a result of sale of goods or services in the ordinary course of business. These are claims of the firm against its customers and form part of its current assets. Receivables are also known as accounts receivables, trade receivables customers receivables or book debts. The receivables are carried for the customers. The period of credit and extent of receivables depends upon the credit policy followed by the firm. The purpose of maintaing or investing in receivables is to meet competition, and to increase the sales and profits. The study is based on the research design which includes descriptive type of research. This study is based on Secondary data. The data is collected from various files, management. These data have been collected from various files, management information reports and balance sheet of the company and other related books. In this study secondary data used are Balance sheet for the year 1999 - 2004 was used to project the financial analysis for Caltex Lubricants India Ltd., Sales Figures and other relevant data were collected from the companies book is and records of various departments. In order to analyses the problem of receivable management, a tool of financial management, Ratio Analysis and chi-square were used to arrive the conclusion. The various Financial tools were used in order to process and to assive at a conclusion. iii The tools used is Ratio analysis for the purpose of assiving conclusion.

Ratio Analysis Ratios are relationships expressed in mathematical terms betweeen figures which are connected with each other in some manner. Obiously, no purpose will be served by comparing two sets of figures which are not at all connected with each other. Moreover, absolute figures are also unfit for comparison. This study is also having certain limitations too. The study is based only on secondary data collected from balance sheet and P/L account of company. The whole study is basd on observations in the past. Based upon the findings, the sudy recommendated company to go far factering services for all credit line customers as it will improve the cash flow of company and reduces risk. The company should offter discounts to customers in order to speed up the credit collection process. The study also recommends company to remind the customer periodically before due date by sending reminder letters / personal visit by marketing executives, the study also recommends marketing dept of company to increase cash sales by offering quantity discounts. The study will help the companys growth by providing better funds position.

iv ACKNOWLEDGEMENT

I thank Mr.R. VENKATARAMANI, Principal S.R.M. Engineering College for providing facility to undertake this project. I record my thanks and gratitude to our Head of the Department Dr.JAYASHREE SURESH for her valuable suggestions. At the outset I would like to acknowledge with due regards and respects to my guide T.P. NAGESH, M.Com, B.L, FICWA, for being the source of inspiration for the entire duration of the course. I wish to thank M/s. CALTEX LUBRICANTS INDIA PRIVATE LTD., Chennai for permitting me to do project work in their esteemed organization. It is my duty to thank Mr. S. VENKAT RAMANI, General Manager (Finance), Mr. VIJAYA RAGHAVAN, Associate Manager, Taxation and also

Mr.CH TRINADH KUMAR, Associate Manager (HR) of the company who gave me an opportunity to undertake this project and also for their valuable and timely guidance. I also thank other employees of the company who helped me with the information for doing the project. Also my sincere thanks to my Parents, family members, friends and fellow students who gave their moral support in completing this project.

J. ELANGOVAN

v TABLE OF CONTENTS CHAPTER NO. I PARTICULARS INTRODUCTION 1.1 1.2 II III IV V Introduction about the Study Importance of Study 1 2 3 4 5 6-26 PAGE NO.

STATEMENT OF PROBLEM OBJECTIVE OF STUDY REVIEW OF LITERATURE METHODOLOGY AND THE LIMITATIONS OF THE STUDY 5.1 5.2 Research Methodology Limitation

6-8 9 27-29 30-61 62 63 64 65

VI VII VIII IX X XI

COMPANY PROFILE ANALYSIS AND INTERPRETATION FINDINGS RECOMMENDATIONS CONCLUSION BIBLIOGRAPHY

vi LIST OF TABLES

TABLE NO. 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20

TITLE Total Sales from January to December 2000 2004 Cash & Credit sales from January to December 2000 2004 Total Outstanding from January to December 2000 2004 Chi-Square Test 1 Chi-Square Test 2 Chi-Square Test 3 Ageing Report from January to December 2000 Ageing Report from January to December 2001 Ageing Report from January to December 2002 Ageing Report from January to December 2003 Ageing Report from January to December 2004 Current Ratio Liquid Ratio Debtors Turnover Ratio Debtors Collection Period Inventory Turnover Ratio Inventory Turnover Period Working Capital Turnover Ratio Raw Material Turnover Ratio Sales & Administrative Ratio

PAGE NO. 30 32 35 37-38 39-40 41-42 43-44 45-46 47-48 49-50 51-52 53 54 55 56 57 58 59 60 61

vii

LIST OF CHARTS

TABLE NO. 7.1 7.2 7.3

TITLE Total Sales from January to December 2000 2004 Cash & Credit sales from January to December 2000 2004 Total Outstanding from January to December 2000 2004

PAGE NO. 31 33-34 36

viii LIST OF ABBREVIATION

OE MS Dealers C&F Agents INR USD CL S&M P&L, B/S MOA & AOA PDC DD L&T M&M UAC MBU

Original Equipment Manufacturing Carry Forward Indian Rupees US Dollars Credit Limit Sales & Marketing Profit and Loss, Balance Sheet Memorandum of Association, Articles of Association Posted Cheque Demand Draft Larsen Tourbo Mahendra & Mahendra Un Allocated Credit Marketing Business Unit

Chapter - I Introduction 1.1 INTRODUCTION ABOUT THE STUDY MANAGEMENT OF RECEIVABLES

Trade credit is considered as an essential marketing tool, acting as a bridge for the movement of goods through production and distribution stages of customers. A company grants trade credit to protect its sales from the competitors and to attract the potential customers to buy its products at favourable and competitive terms. When the company sells its products or services and does not receive cash for it immediately, the company is said to have granted trade credit to customer. Trade credit means receivable or book debts which the company is expected to collect in the near future. The book debts or receivables arising out of credit have three characteristics, first it involves an element of risk which should be carefully analyzed. Cash sales are totally risk free, but not the credit sales as the cash payments is yet to be received. Secondly it is based on economic value of the goods or services which passes immediately at the time of sale, while the seller expects an equivalent value to the received later on. Thirdly, it implies futurity. The payment for goods or services received by the buyer will be made by him in a future period. The seller has to collect the payment from his customers who are called trade debtors and the amount to be collected is known as receivables. Receivable constitute a substantial portion of current assets of several firms.

1.2 IMPORTANCE OF STUDY The receivable and credit management is vital tool of financial management. Receivable management provides a base and support to the liquidity and working capital requirements of a company.

Chapter - II Statement of the Problem 2.1 STATEMENT OF PROBLEM 1. 2. To study is required to solve the problem of credit policy and procedure. To study require to solve impact of receivable in financial liquidity.

Chapter - III Objectives of the Study 3.1 OBJECTIVES OF THE STUDY To study the credit policy and procedure and existing account receivable management system. This study was experimented by following objectives. o o To study the credit policy and procedure. To study impact of receivable in financial liquidity.

Chapter - IV

Review of Literature 4.1 REVIEW OF LITERATURE Literature review is the ability to carry out the previous work in a particular topic done by others. Generally it is not important to carry out a literatrue review; still it is carried out in order to find more details about a project work. It helps to place our work in the context of what have already been done, allowing comparisons to be made and providing a framework for further research. It has been defined as a critical summary and assessment of the range of existing materials dealing with knowledge and understanding in a given field. The importance review for a project work is wider, since there is no such previous work or any study in this topic, the researcher cannot be able to apply this method. Further the present study for preference for receivables management helps the company in determine the factors in preference of the organization and it leads to further study for the company in the same topic and for the researcher for his academic completion of his proejct work. Chapter - V

Methodology and the Limitations of the Study

5.1 RESEARCH METHODOLOGY

Research Methodology is a systematic way to solve any research problem. It may be understood as a science of studying how research is done scientifically. METHODOLOGY OF STUDY This study was aimed by systematic design. Collection analysis, reporting of data and finding relevant to receivable management of Caltex lubricants India Ltd., A descriptive study was done to obtain an accurate description. DATA SOURCE This study is based on secondary data. SECONDARY DATA These data have been collected from various files, management information reports and balance sheet of the company and other related books. In this study secondary data used are Balance sheet for the year 1999 - 2004 was used to project the financial analysis for Caltex Lubricants India Ltd., Sales Figures and other relevant data were collected from the companies book is and records of various departments. TOOL USED FOR THE DATA ANALYSIS In order to analyses the problem of receivable management, a tool of financial management, Ratio Analysis and Chi-square were used to arrive the conclusion.

CHI-SQUARE TEST TEST OF HYPOTHESIS A hypothesis is a definite statement about the population parameter. To test the viability of results a hypothesis is set up, since technique of randomization was used for selection of sample units. Null hypothesis A hypothesis, which is usually, a hypothesis of no significant is called null hypothesis and is denoted by Ho. Alternative hypothesis A hypothesis, which is usually, a hypothesis of significant difference is called alternative hypothesis and is denoted by H1. HYPOTHESIS TESTING The set up hypothesis were tested using i) Chi-square test for independence of attributes information is said to be attribute when it is quantitative. The chi-square test helps to find whether two or more attributes are associated or not. Chi-square test is used in this research work to find out employees satisfaction level over the welfare facilities provide are similar by the company by categories: workers, executives, officers.

ii)

Ho: attributes are independent. The value of chi-square was calculated using the formula Chi-square= significance. Where, O = observed frequency Corresponding row total * column total E= Expected Frequency = N (O-E)2/E for (c-1)(r-1) degrees of freedom at 5% level of

C = number of column r = number of rows If calculated value of chi-square is less than table value of chi-square at 5% level of Significance, Ho is accepted else rejected. 5.2 LIMITATIONS i. The Proejct study is mainly based on information gathered from secondary data, mainly Balance sheet & profit and loss account. ii. The whole study is based on observations in the past, which can only be related to laws that operated in the past, as there is no evidence that the laws will continue to operate in future also. It is under that companies discount structure does not affect the total sales of the company and the company is revising the discount policies peridically even though the exact discount details were not made available to the study as they are very confidential.

CONCEPTS RATIO ANALYSIS Ratio is defined as "Relationship expressed in quantitative terms, between figures which have cause and effects relationship or which are connected with each other in some manner or the other". Ratio analysis involves the process of computing, determining and presenting the relationship of items or groups of items of financial statements. The Ratios which are used in the analysis and interpretation are Current Ratio, Liquid ratio, Debtors turnover ratio, Debtors collection period, Inventory Turnover Ratio, Inventory Turnover period, working capital turnover ratio, Raw materials over head ratio, Sales and Distribution over head Ratio. 5.4 FACTORING Factoring indicates the relationship between a financial institution (Factory) and a business orgnization (Clients) who in turn sells the goods / services to its customers where by the factor purchased book debts of the client, either which recourse or without recourse and in relation thereto control the credit extended to the customers and administers the sales ledgers of the client. TYPES OF FACTORING 1. Without Recourse 2. With Recourse. Without Recourses Factoring In this type of factoring the risk on account of non-payment by the customer in assumed by the factory. The factor is not entitled to recover the amount from the selling company.

With Recourse Factoring In this type of factoring the risk on account of non-payment by the customer is assumed by the selling company and the factor is entitled to recover the funds advanced by him the selling company.

FACTORY PROVIDES THE FOLLOWING SERVICES TO THE CLIENT Factory may undertake the credit analysis of the customers of the client. Factor will undertake the various book keeping and accounting activities in relation to the receivable management. This consists of maintenance of debtors ledger and generation of reports like (outstanding of the customer, age wise analysis of the outstandings etc. Factor undertakes the responsibility of following ups with the customers for the purpose of making the collection from the customers. Factors can purchase the debts of the client making the immediate payment of these debts to the client after maintaining about 20% to 30% margin. This reduces the working capital requirements of the client.

CREDIT POLICY & PROCEDURE OBJECTIVE To provide a customer focused and flexible credit administration system that is responsive and timely to the needs of the Business Units and to ensure that adequate internal control is in place. SCOPE The Policy and Procedures are applicable to complete lubes business of the company in India. This policy and procedure covers customers of all category, whether new or existing ones. CREDIT AMOUNT Maximum Credit amount to be extended at the Geographic Location level in INR 1,25,00,000/- or USD 250,000/- which ever is lower on any given day exchange rate. This will be revised from time to time by Finance GM, depending upon the movement in INR / USD rate. CREDIT PERIOD Maximum Credit period for any customer is 30 Days for all categories of customers. Any extensions to the above would require prior approval of General Managers of Marketing and Finance functions. Credit Period (Days) would begin from the date of rising of Invoice.

CREDIT AUTHORITY LEVELS Finance Signing Authority Level 1 Level 2 Credit Controller GM Finance Marketing Business Unit Signing Authority Business Managers GM-Marketing

For each level both the persons in Finance and Marketing signing authorities must agree. If not, the credit issue shall be elevated to the next level for their decisions. At level 2, the GM - Finance Services has eventual final authority on the disposition of credit issue. If there is a disagreement between the Heads of Finance and the Marketing, they may refer the matter (credit issue) to the Country Head of the Company for his decision which his final and binding on all parties. SCHEDULE OF AUTHORITY - CREDIT ISSUES FRESH CREDIT LINE Authority Level Level 1 Level 2 Amount Up to Rs.5 Lakhs Up to Rs.125 Lakhs Days 30 Days 60 Days

REVISION OF CREDIT LINE Level 1 2 times of present CL (Maximum Rs.10 Lakhs) Level 2 5 times of present CL (Maximum Rs.625 Lakhs) 60 Days 30 Days

CREDIT DOCUMENTATION

Financial statements and constitutional documents are necessary documents required for any new Credit Proposal and Credit Reviews. These documents are mandatory in all circumstances in all locations. In Indian business context documents are required at two levels 1.Pre Sanction and 2. Post Sanction, for all categories of credit customers. The documents required are as follows. RETAIL DISTRIBUTORS Pre Credit Sanction Documents: Request Letter from Distributors on their letterhead. Customer Evaluation Form with S & M report and recommendations. Financial Statements (P & L, B/S) for last 5 years. Constitutional Documents, e.g., MOA & AOA, Partnership Deed, Sales Tax Registration Certificate, Shop & Establishment Registration, Any Certificate from Local Authorities confirming the legal status of the customer.

Post Credit Sanction Documents Proof of storage space (Copy of Ownership Documents or Lease Deed). Original Bank Guarantee/Security Deposit Draft from Nationalized, Foreign Banks only. One bank reference check (Complete address & contact nos.) Copy of Distributor Agreement.

INDUSTRIAL CUSTOMERS Pre Credit Sanction Documents Letter of Intent from Industrial Customer on their letterhead expressing their willingness to purchase our products and estimated requirement for the financial year. Customer Evaluation Form with S & M report and recommendations. Financial Statements (P & L, B/S) for last 5 years. Constitutional Documents, e.g. MOA & AOA, Partnership Deed, Sales Tax Registration Certificate, Shop & Establishment Registration, Any Certificate from Local Authorities confirming the legal status of the customer. Post Sanction Document Copy of agreement, in case of Industrial Distributors, Depot Operators (C & F Agents), Industrial Agents, OEMs. Copy of first Purchase Order incase of Industrial Customers. Copy of our Offer letter/quotation in case of other Industrial Customers. PDC for First supply for, other than Public Ltd. Company/Govt. Entity.

IMPORTANT INSTRUCTIONS For distributors, no credit limits will be assigned where business commitment is below Rs.50000/- per month. These customers would have to be DD customers. Bank Guarantee or Letter of Credit will be accepted only from

Nationalized/Private/Foreign Banks excepts co-operative banks. In case of Industrial Customer, if it is other than Public Ltd., Company, Post dated cheque would be required for first 6 months. In case of seasonal customer, the credit limit would be fixed as per normal procedure. Supplies beyond this limit can be made with additional security cover e.g. Bank Guarantee, Security Deposit or bank letter of credit. Distributor agreement and Security deposit should be of same term and expire on the same date. POLICY AND PROCEDURE FOR OPENING A NEW ACCOUNT AND CEREDIT REVISION Opening of New Account a. Distributors Cash Customer Credit Line Customers b. Industrial Custoemers Cash Customers Credit Line Customers Revision of Credit Lines A. B. Distributors Industrial Customers

NEW ACCOUNT a. DISTRIBUTORS Cash Customers : Mandatory Documents are - Request Letter from customer and Customer Evaluation Form. All customer codes would be allotted by Head Office only and informed to respective depots. No supply limit for DD customers. There is a limit of Rs.15 Lakhs for Demand Draft to distributors. Beyond this limit supplies would be done after clearance of Demand Draft also. This is to reduce the risk of forged Demand Draft being presented for payments. Credit Customer In case of Distributors credit limit would be assigned only on the basis of Security offered to the company. Maximum credit period is 30 days.Any exceptions to be approved by GMs, MBU and Finance. The increase in credit limit would be incremental, flexible, and completely dependent on the performance of the customer. Initial limit would be not be more than 1.5 times of the Security offered to us. B) First supply would be equal amount of security only.

INDUSTRIAL CUSTOMERS Cash Customers Mandatory Documents are Letter of Intent from customer and Customer evaluation form.

All customer codes would be allotted by Head office only and informed to respective depots.

No supply limit for demand Draft Customers. There is a limit of Rs.15 lakhs for demand draft to distributors. Beyond this limit supplies would be done after clearance of Demand draft also. This is to reduce the risk of forged demand draft being presented for payments.

Credit Line Customer Credit limits would be fixed on a case-to-case basis depending upon the financial analysis, business commitments, profitabiality, S & M evaluation and recommendations, payments terms, market reports etc. All pre-sanction documents are compulsory. Post sanction documents will be required once the credit limit is sanctioned. Maximum credit period is 30 days. Exceptions to be approved by Heads of both Finance & Marketing. The increase in credit limit may be requested after every six months by marketing department with proper jusitification Post dated cheques would be mandatory for first first 6 months for all the Private Ltd., companies. Credit period would remain unchanged. Only credit amount increase would be taken up.

ANNUAL REVIEW/REVISION OF CREDIT LINES The annual review of credit terms is a compulsory exercise for every customer in all strategies, who has business dealings with company for at least one year. This would help us to understand our business, risk and returns, with our customer and their financial capacities. After the review the limits may increase/decrease/remain same depending upon their payments record has business volumes during the year. Rules for Credit Revision Level The credit revision is not automatic, it has to be requested by the party and proposed & recommanded by the S & M with proper justifications. The credit up-gradations will be done only if all the payments are in time in the last credit levels and no cheque has bounced except technical reasons. Any cheque bouncing (except technical reasons) at any stage would change the partys payment terms to DD mode for next 6 months, plus supply would be resumed after the overdue and cheque bouncing charges are recovered. Any exception would require approval of GMs-MBU & Fiscal both. If the account is overdue, any emergency supply would be against demand draft only. At every year-end, the customer master should be updated with least information and party would be required to furnish the least financial statements. More than one bouncing (except technical reasons) during the last 6 months at any stage would reduce the credit limit.

Annual Review/Revision for Distributions Following documents are required for the Annual Review of the distributor: Latest financial statements. Constitutional papers/letter stating no changes. Sales & marketing reports on customers based on past business and future prospects. Market Information. Payment History.

Annual Review/Revision for Industrial Customer Following documents are required for the Annual Review of the Industrial Customer. Latest financial statements Constitutional Papers/Letter stating no changes. Sales & Marketing recommendations form. Market Information Payment History Additional cover bank Guarantee may be asked depending on the credit limits.

PROCESS FLOW OF NEW ACCOUNT OR CREDIT REVISION All the credit related issues should flow down to top, i.e., from sales executive to the level of GMs. Credit Coordinator is the key single point position through which all the documents should routed. For some of these issues, related formats have been attached to this document. For all account, credit revision, credit exceptions and related matters the person at the field level should forward his/her recommendations to his regional head (business category). Regional manager with his comments and justifications should forward the same to his Marketing Manager. If Marketing Manager approves the request, he should the same with all the necessary documents to Credit Coordinator Credit Coordinator is responsible for all checking of all necessary documentation and supporting. He may ask marketing manager to provide the incomplete information or additional information that may be required. If he finds that all the required information is given, he would put up the request to Credit Controller Credit Controller would be responsible for analysis of data and information related to the credit issues and verification of the compliance of the Credit Policy and Procedure (CPP).

If the issue is within the authority limits, and Credit Controller approves the same, he will seek concurrence of GMs and communiate the same back to Marketing Manager and Credit Coordinator. If the rejects the same, then also he would put up the same to GMs for their decision. If the issue is beyond the authority limits of Credit Controller, he would put up the same to GMs with his recommendations to GMs. GMs would assess the cases referred to them and would communicate their decision to Credit Controller. FUNCTIONS OF CREDIT AND RECEIVABLE MANAGEMENT DEPARTMENT Framing of Credit Policy and Procedure Analyse the existing credit policy and suggest and implement changes for existing policies to augment companies cash flow. Allotment of Customer codes for New customers for cash and credit sales separately. Maintenance of customer master with updating on a regularly basis so that online information is available. This will enable control the credit amount, period, overdue details etc., of the customers and take up appropriate action for speedy realization of credit amounts. Credit Board meeting The company has constituted a Credit Board comprising of Heads of Finance, Marketing as well as officials of the two departments. The Members of the Board meets once in a month and review the last month performance of the following. Sales volume (Cash and Credit Sales) Realisation Outstandinds

Steps to be initiated for minimizing overdue position. Cash incentives/Discounts for improving sales. Assess and recommanded Bad debts for writing off. Revisiosn of Credit Limits Status of Cheque Bouncing

Manangement Information System (MIS) Review of PBD and recommend to Credit Board. Related to overdue and outstanding status. Related to Unallocated Credit. Monthly collection targets and actuals

Chapter - VI Company Profile 6.1 COMPANY PROFILE Caltex has been manufacturing and marketing quality lubricants on a global scale. In today's highly complex and competitive market, high performance Caltex Lubricants and value - added services come to you from the combined resources and technology of the Chevron Texaco Global Lubricants organization U.S.A. Caltex Lubricants entered India in agreement with IBP for manufacturing and marketing a wide range of automotive and industrial lubricants and specialty products. Obtained ISO 9001 : 2000 certificate from TUV certificate from Germany. CALTEX GROUP OF COMPANIES HOLDING COMPANY: CALTEXT OIL CORPORATION, U.S.A

SUBSIDIARIES. Caltex Oronite Pte Ltd., Caltex Coil Private Ltd., Caltex Gas India Ltd., Caltex Petroleum Corporation Caltex Lubricants India Ltd., CALTEX QUALITY POLICY To strive total customer satisfaction and be recognized for our people, partnership and performance in meeting customer needs and expectations.

CALTEX R&D Development of New Product and up gradation of existing one Innovation and modification of manufacturing process Development of suitable products for customers. PRODUCTS OF CALTEX LUBRICANTS INDIA LTD., Lubricants for Automotive engine oils Delo 340 Delo 350 Turbo 300 Airfilter Oil Running in Oil Lubricants for 2 stroke engine oil Revtex super 2t Turbo TT Super Lubricants for 4 stroke engine oil Turbo 4t plus Compressor oil Automotive gear oils Hydraulic oils Soluble Oils Stationary Engine Oils CALTEX LUBRICANTS CLIENTS IN THE INDUSTRIAL AND AUTOMOTIVE SECTOR 1. 2. 3. 4. Ashok Leyland (Ennor & Hosur) Audco, Chennai Ford Motors, Chennai Hero Honda

5. 6. 7. 8. 9. 10.

L & T, Pune M & M, Nasik Rane group of companies TVS group of companies Visteon India Ltd., Chennai Hindustan Motors, Hosur.

Chapter - VII Analysis & Interpretation ANALYSIS & INTERPRETATION TABLE (7.1) Total Sales (Rs.in Lakhs) from January to December 2000 to 2004

Year Jan. - Dec. 2000 Jan. - Dec. 2001 Jan. - Dec. 2002 Jan. - Dec. 2003 Jan. - Dec. 2004

Total Sales (Rs. in Lakhs) 3288.95 4361.74 6954.99 9536.42 8420.45

Chart 7.1 Total Sales from Jan to Dec 2000 to 2004

10000

8000 Rs.in Lakhs

6000

4000

2000

0 Jan - Dec 2000 Jan - Dec 2001 Jan - Dec 2002 Years Jan - Dec 2003 Jan - Dec 2004

Interpretation The sales have increased from year 2000 to 2003 with both credit and cash sales. But again in year 2004, the sale shave decreased. This may be due to lesser exposure of credit by cartex to avoid debtors turning into bad debts.

TABLE - 7.2 Cash sales and credit sales (Rs. in lakhs) from January to December 2000 to 2004 Cash Sales (Rs. in Lakhs) Credit Sales (Rs. in lakhs) Total Sales (Rs. in Lakhs)

Year

Jan. Dec. 2000 Jan. Dec. 2001 Jan. Dec. 2002 Jan. Dec. 2003 Jan. Dec. 2004

1315.58 2617.77 3125.18 3243.88 4958.58

1973.37 1743.97 3829.81 6292.54 3461.51

3288.95 4361.74 6954.99 9536.42 8240.09

Chart 7.2 Cash Sales and Credit Sales (Rs. in Lakhs) from January - December 2000-2004
12000

10000

8000

Rs. in Lakhs

6000

4000

2000

0 Jan - Dec 2000 Jan - Dec 2001 Jan - Dec 2002 Jan - Dec 2003 Jan - Dec 2004

Years
Cash Sales(Rs. in Lakhs) Total Sales (Rs. in Lakhs) Credit Sales (Rs. in Lakhs)

Interpretation Year 2000 The credit sales are more than the cash sales for all the months in the year 2000. Thios may be due to lesser exposure of credit by caltex to avoid debtors turning into bad debts.

Year 2001 The cash sales are more than the credit sales for all the months in the year 2001. This may be due to less credit risk taken by caltex. Year 2002 The Credi Sales for the year 2002 are more than the credit Sales for 2001. This may be due to Stiff competition in the market. Year 2003 The Credit sales are more than cash sales in all the months. Due to sluggish market conditions and tight funds flow from banks/ financial institutions for the industry in general. Year 2004 The Credit Sales are lesser than cash sales in all the months. This may be due to lesser exposure of credit by caltex to avoid debtors turning into bad debts.

TABLE 7.3 TOTAL OUTSTANTDING (RS. IN LAKHS) FROM JANUARY 2000 DECEMBER 2004 Years Jan Dec 2000 Jan Dec 2001 Jan Dec 2002 Jan Dec 2003 Jan Dec 2004 Total Outstanding (Rs. in Lakhs) 2732.66 4204.55 7631.24 11413.11 8815.45

Chart 7.3 Total Outstanding from January - December 2000 - 2004

10000

8000

Rs. in Lakhs

6000

4000

2000

Interpretation
0 Jan- Dec have Jan Dec shown Jan in - Dec Jan - Dec From Jan year - Dec The total outstanding been Zig-Zag pattern. 2000 to year 2000 2001 2002 2003 2004

2001, it has been increased. From 2001 to 2002, the total O/S amount has been increased and Years again from 2002 to 2003, it has been increased more. From year 203 to 2004, it ws decreased due to better collection and strict monitoring of outstanding.

TOOLS USED FOR ANALYSIS CHI-SQUARE TEST:1 Ho: There is no significant difference between years & total sales. H1: There is significant difference between no of years & total sales. TABLE 7.4 YEARS JAN-DEC 2000 JAN-DEC 2001 JAN-DEC 2002 JAN-DEC 2003 JAN-DEC 2004 TOTAL SALES (RS IN LAKS) 3288.95 4361.74 6954.99 9536.42 8420.45

O 3288.95 4361.74 6954.99 9536.42 8420.45

E 6512.51 6512.51 6512.51 6512.51 6512.51

(O-E) -3223.56 -2150.77 442.48 3023.91 1907.94 TOTAL

(O-E)2 10391339 4625811 195788.5 9144031.6 3640235.0

(O-E)2/E 1595.59 710.29 30.06 1404.07 558.96 4298.97

Calculated 2 = (O E )2 / E = 4298.97 Degree Of Freedom = (5-1) = 4 Table Value @5% level of significance the tabulated value of 2 = 9.488 Decision Since tabulated value of 2 is less than the calculated value 2 we reject Ho.I.e. There is significant difference between no of years & Total Sales. CHI-SQUARE TEST:2 Ho: There is no significant difference between years & cash sales H1: There is significant difference between no of years & cash sales. TABLE 7.5 YEARS JAN-DEC 2000 JAN-DEC 2001 JAN-DEC 2002 JAN-DEC 2003 JAN-DEC 2004 TOTAL SALES(RS IN LAKS) 1315.50 2617.77 3125.18 3243.88 4958.58

O 1315.50 2617.77 3125.18

E 3052.19 3052.19 3052.19

(O-E) -1736.61 -434.42 72.99

(O-E)2 3015814 1887207 5327.54

(O-E)2/E 988.08 61.83 1.745

3243.88 4958.58

3052.19 3052.19

191.69 1906.39 TOTAL

36745.05 3634322.8

12.03 1190.72 2254.40

Calculated 2 = (O E )2 / E = 2254.40 Degree Of Freedom = (5-1) = 4 Table Value @5% level of significance the tabulated value of 2 = 9.488 Decision Since tabulated value of 2 is less than the calculated value 2 we reject Ho.I.e. There is significant difference between no of years & cash Sales. CHI-SQUARE TEST:3 Ho: There is no significant difference between years & credit sales H1: There is significant difference between no of years & credit sales. TABLE 7.6 YEARS JAN-DEC 2000 JAN-DEC 2001 JAN-DEC 2002 JAN-DEC 2003 JAN-DEC 2004 O 1973.37 1743.97 E 3460.24 3460.24 (O-E) -1486.87 -1716.27 TOTAL SALES(RS IN LAKS) 1973.37 1743.97 3829.81 6292.54 3461.51 (O-E)2 2210782.3 2945582.7 (O-E)2/E 638.91 851.26

3829.81 6292.54 3461.51

3460.24 3460.24 3460.24

369.57 2832.3 1.27 TOTAL

136581.98 8021923.29 1.6129

39.47 2318.31 0.00046 3847.95

Calculated 2 = (O E )2 / E = 3847.95 Degree Of Freedom = (5-1) = 4 Table Value @5% level of significance the tabulated value of 2 = 9.488 Decision Since tabulated value of 2 is less than the calculated value 2 we reject Ho.I.e. There is significant difference between no of years & Credit Sales. TABLE 7.7 AGEING REPORT OF OUTSTANDINGS IN DAYS FROM JANUARY TO DECEMBER 2000. 0-30 Months days (1) Jan-2000 Feb-2000 Mar-2000 April-2000 May-2000 June-2000 July-2000 122 113 102 95 87 142 153 31-60 days (2) 16 21 24 37 102 42 35 61-90 days (3) 143 47 33 22 44 53 62 Above 180 days (5) 157 164 127 133 141 157 116 Total (6) = (1+2+3+ 4+5) 465 462 406 429 391 481 417 UAC Net (7) 105 82 151 162 93 139 147 (6-7) 360 380 255 267 298 348 270

91-180 days (4) 27 117 120 142 47 93 51

August-2000 September-2000 October-2000 November-2000 December-2000

82 65 139 74 54

72 84 56 66 23

70 68 74 83 92

62 77 42 39 33

121 132 103 92 87

407 426 414 354 289

114 176 101 96 171

293 250 313 258 118

UAC We receive payment from customers and this amount is same is credited to the customers account under various head as mentioned by them. In some cases the amount are received without monitoring to which account is to be adjusted in the same month or in the following months these amounts accumulated under Unallocated Credit.

Interpretation From the above table it will seen that the outstanding figure of 0-30 days as come down from Rs. 122 Lakhs in Jan. to Rs. 54 Lakhs in December 2000. Similarly for 31 60 days the corresponding figure is Rs. 21 to 23 Lakhs. In respect other period also there are similar reduction in outstanding figure. As on December 2000 the overall outstanding amount is Rs. 118 lakhs as compared to Rs. 348 lakhs in June, 2000. Showing a decline of 66% (Rs.230 lakhs) due to effective efforts taken for realization and better credit management of the outstanding. However efforts should be taken a monthly basis to reduce the Unallocated credit by matching the payment and bills with the corresponding bills of the customers so that a better and correct picture of the outstanding is available.

TABLE 7.8 AGEING REPORT OF OUTSTANDINGS IN DAYS FROM JANUARY TO DECEMBER 2001. 0-30 Months days (1) Jan-2001 Feb-2001 Mar-2001 April-2001 May-2001 June-2001 July-2001 August-2001 September-2001 October-2001 November-2001 December-2001 131 124 98 107 81 73 61 58 113 127 77 69 31-60 days (2) 21 37 43 54 62 89 97 119 127 106 92 74 61-90 Above Total (6) = UAC days 180 days (1+2+3+ days (4) (7) (3) (5) 4+5) 91-180 128 119 108 132 57 69 873 54 26 19 13 7 37 49 52 68 73 98 113 126 89 52 41 23 163 143 131 123 104 95 89 72 68 64 32 14 480 472 432 484 377 424 443 429 423 368 255 187 112 82 93 76 52 69 74 33 29 14 28 41 Net (6-7) 368 390 339 408 325 355 369 396 394 354 227 146

Interpretation From the above table it will seen that the outstanding figure of 0-30 days as come down from Rs. 131 Lakhs in Jan. to Rs. 69 Lakhs in December 2001. Similarly or 31 60 days the corresponding figure is Rs. 37 to 74 Lakhs. In respect other period also there are similar reduction in outstanding figure. As on December 2001 the overall outstanding amount is Rs. 146 lakhs as compared to Rs. 355 lakhs in June, 2001. Showing a decline of 58.8% (Rs.209 lakhs) due to effective efforts taken for realization and better credit management of the outstanding. However efforts should be taken a monthly basis to reduce the Unallocated credit by matching the payment and bills with the corresponding bills of the customers so that a better and correct picture of the outstanding is available.

TABLE 7.9 AGEING REPORT OF OUTSTANDINGS IN DAYS FROM JANUARY TO DECEMBER 2002. 0-30 Months days (1) Jan-2002 Feb-2002 Mar-2002 April-2002 May-2002 June-2002 July-2002 August-2002 September-2002 120 83 91 68 57 74 116 124 102 31-60 days (2) 132 92 78 81 63 53 42 35 28 61-90 days (3) 105 67 51 73 95 122 117 39 26 Above 180 days (5) 141 126 110 94 87 79 62 58 44 Total (6) = (1+2+3+ 4+5) 535 440 426 428 425 437 410 322 251 Net (6-7) 423 355 328 352 371 369 361 286 226

91-180 days (4) 37 82 97 112 123 109 73 66 51

UAC (7) 112 95 87 76 54 68 49 36 25

October-2002 November-2002 December-2002 Interpretation

27 14 8

19 31 28

40 28 34

34 21 47

29 13 57

149 107 174

40 32 97

109 75 77

From the above table it will seen that the outstanding figure of 0-30 days as come down from Rs. 120 Lakhs in Jan. to Rs. 8 Lakhs in December 2002. Similarly or 31 60 days the corresponding figure is Rs. 92 to 28 Lakhs. In respect other period also there are similar reduction in outstanding figure. As on December 2002 the overall outstanding amount is Rs. 77 lakhs as compared to Rs. 369 lakhs in June, 2002. Showing a decline of 79.1% (Rs.292 lakhs) due to effective efforts taken for realization and better credit management of the outstanding. However efforts should be taken a monthly basis to reduce the Unallocated credit by matching the payment and bills with the corresponding bills of the customers so that a better and correct picture of the outstanding is available.

TABLE 7.10 AGEING REPORT OF OUTSTANDINGS IN DAYS FROM JANUARY TO DECEMBER 2003 0-30 Months days (1) Jan-03 Feb-03 Mar-03 April03 May-03 June-03 July-03 August-03 September-03 October-03 November-03 December-03 180 216 207 63 45 140 132 124 121 109 90 85 31-60 days (2) 7 2 34 126 90 46 40 39 37 33 28 26 61-90 days (3) 157 57 6 27 36 26 23 21 20 18 14 6 Above 180 days (5) 166 158 156 164 171 136 129 125 120 110 102 97 Total (6) = (1+2+3+ 4+5) 544 575 551 481 404 408 380 361 346 312 270 248 Net (6-7) 434 430 394 376 309 268 269 253 164 209 172 129

91-180 days (4) 34 142 148 101 62 60 56 52 48 42 36 34

UAC (7) 110 145 157 105 95 140 111 108 182 103 98 119

Interpretation From the above table it will seen that the outstanding figure of 0-30 days as come down from Rs. 140 lakhs in June 03 to Rs.85 lakhs in December 03. Similarly for 31-60 days the corresponding figure is Rs.46 to 26 lakhs. In respect other period also there are similar reduction in outstanding figure. As on December 2003 the overall outstanding amount is Rs. 129 lakhs as compared to Rs. 268 lakhs in June 2003 showing a decline of 51% (Rs.139 lakhs) due to effective efforts taken for realization and better credit management of the outstanding. However efforts should be taken on a monthly basis to reduce the Unallocated credit by matching the payment and bills with the corresponding bills of the customers so that a better and correct picture of the outstanding is available.

TABLE 7.11 AGEING REPORT OF OUTSTANDINGS IN DAYS FROM JAN TO DECEMBER 2004. Above 91-180 days (4) 29 30 36 36 33 23 33 20 180 days (5) 87 86 88 91 90 92 89 28

0-30 Months days (1) Jan-04 Feb-04 Mar-04 April-04 May-04 June-04 July-04 August-04 157 184 119 114 144 84 95 91

31-60 days (2) 69 56 65 60 64 32 41 25

61-90 days (3) 18 54 21 38 12 27 17 11

Total (6) = (1+2+3+ 4+5) 360 410 329 339 343 288 275 175

UAC (7) 102 93 91 89 86 70 84 87

Net (6-7) 258 317 238 250 257 188 191 88

September-04 October-04 November-04 December-04 Interpretation

71 110 73 70

24 37 28 16

8 12 4 9

39 9 11 2

91 100 102 95

233 268 218 192

59 59 61 82

174 209 159 110

From the above table it will seen that the outstanding figure of 0-30 days as come down from Rs. 184 lakhs in February 2004 to Rs.85 lakhs in December 2004. Similarly for 3160 days the corresponding figure is Rs.56 to 16 lakhs. In respect other period also there are similar reduction in outstanding figure. As on December 2004 the overall outstanding amount is Rs. 110 lakhs as compared to Rs. 188 lakhs in June 2004. Showing a decline of 41.4% (Rs.78 lakhs) due to effective efforts taken for realization and better credit management of the outstanding. However efforts should be taken on a monthly basis to reduce the Unallocated credit by matching the payment and bills with the corresponding bills of the customers so that a better and correct picture of the outstanding is available. TABLE 7.12 CURRENT RATIO The ratio of current assets to current liabilities is called Current Ratio. Current Ratio indicates the ability of a concern to meet its current obligations and when they are due for payment. Current Assets (Rs.) 360421753 401761381 581600905 514499540 Current Liabilities (Rs.) 124325012 152304230 177003149 200752501 Current Ratio = Current Assets/Current Liabilities 2.899 2.637 3.285 2.562

Year 1999 2000 2000 2001 2001 2002 2002 2003

2003 2004

449167285

152394885

2.947

Interpretation The current ratio for the year 2000 2001 is 2.637 it has been decreased from 2.899 in the year 1999 2000. The Current ratio for the year 2003 - 04 is 2.947 it has been increased from 2.562 for the year 2002-03. This is due to the decrease in current liabilities and also decrease in the Current Assets. TABLE 7.13 LIQUID RATIO This ratio refers to assets, which are quickly convertible into cash. Current assets other than stock and prepaid expenses are considered. The ideal liquid ratio is 1. Current Ratio = Year Current Assets Stock (Rs.) 170627013 253101726 384832851 331268713 236670124 Current Liabilities (Rs.) 124325012 152304230 1770 03149 200752501 152394885 (Current Assets Stock) / Current Liabilities 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 1.372 1.661 2.245 1.652 1.553

Interpretation The liquid ratio for the year 2000 2001 is 1.661 it has increased from 1.372 in the year

1999 2000. The Liquid for the year 2003 - 04 is 1.553 it has been reduced from 1.652 compared to last year due to the decrease in the inventory compared to last year and over all decrease in other items of the current assets and also current liabilities. This liquid ratio is accepted. TABLE 7.14 DEBTORS TURNOVER RATIO Debtors turnover ratio measures the number of times the receivables are rotated in a year in terms of sales. Sales (Rs.) 375210237 400317364 425034854 735961261 691503778 Average Debtors (Rs.) 73140397 84813000 96944301 128618904 113347937 Debtors Turnover Ratio = Sales / Average Debtors 5.13 4.72 4.38 5.72 6.10

Year 1999 2000 2000 2001 2001 2002 2002 2003 2003 - 2004

Interpretation The Debtors turnover ratio for the year 2000 2001 is 4.72 as compare to 5.13 for the year 1999 2000. The Debtors turnover ratio for the year 2003-04 is 6.10 where as for the year 2002-2003 is 5.72 it has been increased due to the decrease in sales and also decrease in debtors.

TABLE 7.15 DEBTORS COLLECTION PERIOD The Debtors Collection period is long then payments are delayed and if the collection period is low then better liquidity of debtors. Debtors Turnover Ratio 5.13 4.72 4.38 5.72 6.10 Debtors Collection Period = No. of Days/Debtors Turnover Ratio 70 Days 76 Days 82 Days 63 Days 59 Days

Year 1999 2000 2000 2001 2001 2002 2002 2003 2003 - 2004

No. Of Days 360 360 360 360 360

Interpretation The Debtors collection period 76 Days for the year 2000 2001 as compared to 70 Days in the year 1999 2000. The Debtors collection period for the year 2003 - 04 is 59 days where as for the year 2002 - 03 is 63 days because of effective credit management.

TABLE 7.16 INVENTORY TURNOVER RATIO The inventory turnover ratio indicates the number of times the inventory is turned over during the particular accounting period. A high inventory ratio indicates the efficient inventory. Sales (Rs.) 375210237 400317364 425034854 735961261 691503778 Average Inventory (Rs.) 126760215 123174573 196768054 183236827 197863994 Inventory Turnover Ratio = Sales / Average Inventory 2.96 3.25 2.16 4.01 3.49

Year 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004

Interpretation The inventory turnover ratio for the year 2000 2001 is 3.25 as compared to 2.96 for the year 1999 2000. The inventory ratio for the year 2003 - 04 is 3.49 where as for the year 2002-03 is 4.01 has been decreased compared to last year. It shows that the inventory is not utilized efficiently.

TABLE 7.17 INVENTORY TURNOVER PERIOD Average Inventory Ratio 2.96 3.25 2.16 4.01 3.49 Inventory Turnover Period = Sales / Average Inventory 121 Days 110 Days 167 Days 90 Days 103 Days

Year 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004

No. of Days 360 360 360 360 360

Interpretation The inventory turnover period for the year 2000 2001 is 110 days as compared to 121 days in the year 1999 2000. The Inventory Period for the year 2003-04 is 103 days where as for the year 2002-03 is 90 days it has been increased due to the non-efficient utilization of inventory.

TABLE 7. 18 WORKING CAPITAL TURNOVER RATIO Working Capital turnover ratio measures the effective utilization of working capital. A higher ratio is the indication of lower investment of working capital and more profit. Sales (Rs.) 375210237 400317364 425034854 735961261 691503778 Average Inventory (Rs.) 236096741 249457151 404597756 313747039 296772400 Inventory Turnover Ratio = Sales / Average Inventory 1.58 1.60 1.05 2.35 2.33

Year 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004

Interpretation The Working capital turnover ratio for the year 2000 2001 is 1.60 as compared to 1.58 for the year 1999-2000. This is due to increase in sales and also due to increase in working capital. The Working Capital Turnover ratio for the year 2003-04 is 2.33 where as for the year 2002-03 is 2.35 it has been decreased due to the decreased sales and also decrease in working capital.

TABLE 7.19 RAW MATERIALS OVER HEAD RATIO Raw materials Overhead (Rs.) 233343246 273056474 302539809 479851404 506064822 Raw materials overhead Sales (Rs.) Ratio = Raw materials / Sales *100 375210237 400317364 425034854 735961261 691503778 62.19 % 68.21 % 71.18 % 65.20 % 73.18 %

Year 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004

Interpretation The Raw material over head ratio for the year 2000 2001 is 68.21% to sales where as for the year 1999 2000. It is 62.19% to sales. The Raw material Over Head Ratio for the year 2003-04 is 73.18% to sales where as for the year 2002-03 it is 65.20% to sales. It has been increased due to the increase in the raw materials expenses such as stores and spares consumed.

TABLE 7.20 SALES & DISTRIBUTION OVERHEAD RATIO Sales & Year 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 Distribution Overhead (Rs.) 19698537 19015074 18361505 22996956 56561055 375210237 400317364 425034857 735961261 691503778 Sales (Rs.) Sales & Distribution Overhead Ratio = S & D / Sales * 100 5.25 % 4.75 % 4.32 % 3.12 % 8.17 %

Interpretation The Sales and Distribution overhead ratio for the year 2000 2001 is 4.32% to sales where as for the year 1999 2000 is 5.25% to sales. The S & D overhead ratio for the year 2003-04 is 8.17% to sales where as for the year 2002-03 is 3.12% to sales. It has been increased due to increase in expenses such as advertisement, sales promotion, incentives, traveling and conveyance etc.

Chapter - VIII

Findings

8.1 FINDINGS 1. Maximum Credit amount is INR 1,25,00,000/- or USD 250,000/- which ever is lower. 2. Maximum Credit period for any customer is 30 days for all categories of customers. Any extension to the above would require prior approval. Credit Period (Days) would begin from the date of our Invoice. 3. No credit limits will be sanctioned where is business commitment is below Rs.50000/per month. These customers would have to be Cash & Carry customers 4. Sales volume has increased during the years. Due to increase in production capacity and better marketing efforts. 5. Debtors collection period has come down from 70 to 59 days due to efficient credit management. 6. As the ageing report shows a gradual reduction in respect of amount outstanding for credit periods of both in 91-180 and above 180 days. Still efforts are required to reduce the quantum of outstanding amount in these periods to improve the liquidity position of the company. 7. Inventory turnover ratio has decreased from 121 days to 103 days because of better control of inventory. 8. Working capital has been increased in 2003-2004 as compared to the year 1999-2000 9. The Overhead expenses like labour, raw materials, Selling & Distribution expenses have been increased in the year 2003-2004 as compared to 1999-2000.

Chapter - IX Recommendations 9.1 RECOMMENDATIONS

The company should go for Factoring services for all the credit line customers. This will improve the cash flow of the company and reduces the risk. The company should remind the customer periodically before the due date by sending reminder letters / personal visit by marketing executives. As the Unallocated Credit Amount shows a considerable figure and this does not give a true position of the customer outstanding, efforts should be made to collect information regarding payments against which bills and adjusted then their. This will help to minimize figure of Unallocated Credit and this in turn will help to reflect the true picture of outstanding liability. The marketing department is to be advised for increasing the cash sales by offering quantity discounts.

Conclusion 10.1 CONCLUSION The recommendations given above if implemented will improve the receivables management and cash flow position of the company, thereby contributing for future growth of the company with better funds position. While there has been an increase in sales volume as compared to previous year and also debtor's collection period has come down from 70 to 59 days, there by improving the liquidity position of the company. Further increase in sales volume and by increasing the network of distributors, the company could achieve increased in the coming years and in turn increase in market share of the company in lubricant industry.

Chapter XI Bibliography 11.1 BIBLIOGRAPHY 1. I.M.Pandey "FINANCIAL MANAGEMENT", 8th Edition, Vikas Publishing House Pvt. Ltd. 2. Satish Inamdar "FINANCIAL MANAGEMENT", November 2003, Symbiosis Center for Distance Learning. 3. Kothari CR., "RESEARCH METHODOLOGY METHODS AND

TECHNIQUES", 2nd Edition, New Delhi, Wishwa Prakasham Publications. 4. Reddy T.S.Y. Hari Prasad Reddy, "MANAGEMENT ACCOUNTING", 2000 Edition, Margham Publications, Chennai.