Helios

Working Capital Management is concerned with the problems that arise in attempting to manage the current Assets, current liabilities and the inter-relationship that exists between them. The aim of working capital management is to manage the concerns current assets and current liabilities in such a way that an adequate working capital is maintained. An adequate level of working capital provides a business with operational flexibility. Emerson has very rightly observed that, “business with an adequate level of working capital has more option available to it, and can make its own choice as to when working capital will be used. On the other hand, if a firm is short of working capital, it may be forced to limit business operations, extension of credit to customers and the amount that it invests in inventory. This will adversely affect production as well as sales which in turn will affect probability of a concern.”

Meaning and definition There is no universally accepted definition of Working Capital, but the one most widely acceptable is the observation that ‘Working Capital’ represents the excess of current assets over current liabilities. Although the term ‘Working Capital’ has been depreciated by the Institute of Chartered Accountants for use in balance sheets and has preferred the term ‘current assets less liabilities’ nevertheless, for

management purposes the former is useful phrase to summarize the factor, which is effective lifeblood of much business.

Importance Study of working capital is of major importance to internal and external analysis because of its close relationship to current day-to-day business. Inadequacy or mismanagement of working capital is the leading cause of business failure. Choyal is of the view that, “The working capital of a firm is the lifeblood which flows through the veins and arteries of the structure, Indeed, it engages every part of the structure, gives courage and moral strength to brain (management) and muscles (Personnel), digests to the best degree the raw material used by its constant and regular flow and returns to the heart (Cash flow) for another journey and so when working capital is lacking or slows down, the financial bodies have value just as much as junk.” It is reflected by the fact that Financial Manager spends a great deal of time in managing current assets and current liabilities. Arranging short term financing, negotiating favorable credit terms, controlling, administering accounts receivables and monitoring the investment in inventories consume a great deal of their time. In the words of I.M.Pandey: “The net Working Capital indicates •

The liquidity position of the firm.

•

Suggests the extent to which working capital needs may be financed by permanent sources of funds.”

Company profile Profile: Helios has been providing, innovative, imaginative & ultimate power solution in response to customer needs ever since 1987. Right from inception the company was engaged in the field of manufacturing, maintaining and servicing of all range of power electronic products. The company was converted into a Pvt. Ltd. in the year 1999 and from 2003 the company became PUBLIC LIMITED. Our commitment to excellence has been demonstrated many times by our ability to configure to orders requiring truly uninterruptible power. The key areas in our organization are Research & Development, Administration, and Testing. Marketing and Customer relationship are directly managed by promoters to ensure complete reliability and total quality. The company has already achieved its primary requirement of designing products with latest technology essential for computer industry, communications, instrumentation and medical electronic applications. The company has monopolized in certain areas of Battery charging equipment to be used for the communication sphere and industrial applications.

Mission : Our mission is "to utilize the best talent and the best technologies in the power conditioning industry to provide our customer with optional, cost effective solution for their power requirements".

Our Management Team : Helios Solutions Limited - promoted and managed by highly qualified peoples who have excellent expertise in the field of Power electronics and also who have years of technical and marketing expertise in India and abroad. This dedicated team leads Sales and Marketing, R & D and Product Development, Services, Finance and Administration functions of Helios.

Besides this management team, there are professionals comprising of •

Sales Engineers

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Service Engineers

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Design Engineers

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Production Engineers

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Administrative & Account Staffs

Business Focus : With a clear focus on business requirements We, Helios Solutions Limited diversified into Solutions which includes Application development, Product maintenance, Product development. The area of expertise is on the UPS, Inverter and Stabilizer environment. Products: Embedded systems The Embedded Systems seminar will examine the design and implementation of embedded systems from a top down perspective. It will start with an examination of the commercial and technical requirements surrounding embedded systems will show how these top level requirements impact design partitioning decisions. Focusing on design considerations that are most relevant in an embedded scenario,the course then examines how these partitioning decisions can be made in a timely manner that satisfies both commercial and technical requirements.

The seminar moves on to an examination of major hardware components including microprocessors and FPGAs. The function of components is described and their interrelationships explained from the system level viewpoint. The software component of embedded systems is examined in considerable detail with a look at real-time operating systems, embedded applications, design language options and tools. Interaction between software components is examined, as are interrupts and exceptions.

Interaction between the hardware and software is crucial to the systems level viewpoint is described in this section of the course. The seminar concludes with a look at issues arising from use of the embedded systems in the field. Reliability, maintenance and upgrading are considered in particular. By always considering the system level implications of the use of techniques and components, the course provides the attendee with a broad view of the issues involved with embedded systems design combined with pertinent detail needed to make the correct system level design decisions. Uninterruptible Power Supply (UPS) a. Line Interactive UPS - 500VA to 2000VA b. Helios - HE Online UPS Series - 1.0 KVA to 20.0 KVA c. Helios - XL Series - Up to 150 KVA Line Interactive UPS - 500VA to 2000VA a . Efficiency & Technology Supported by the latest MOSFET Technology, True Power registers less loss of power, increases efficiency and has more backup time b. Transfer in a Wink. High Sensitive sensors pick up power interruption a shade faster Transfer time as low as 4 milli secs. c. Special Features •

Hassle Free Maintenance

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Entire UPS operation works on a single PCB card

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Faster Servicing

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Reduces down - time in busy office schedules

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Longer Life of batteries and hence the UPS

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AVC maintains consistent output voltage

d. Emergency Starter The cold start switch connects the batteries with the circuit. It allows the user to activate UPS without AC power. e. Computer Hotline True Power instantly communicates AC failure or low battery signal to the computer and receives shut down signal immediately after files have been closed. This optional feature uses serial port of the computer for communication with the software. Helios - HE Online UPS Series - Upto 20.0 KVA An ONLINE UPS basic design ensures increased reliability by supplying constant, tightly regulated - voltage to the load. Helios offers an online, double conversion UPS system. Helios online UPS system is designed to handle wide input range voltage. deviations without causing the battery system to take over the inverter load. This reduces the UPS systems reliance on its battery bank thereby increasing the life of the same. Introduction of IGBT - based PMW technology reduces harmonic distortions and increases crest factor tolerance and dynamic stability. IGBT based PMW inverter delivers full rated power at temperatures as high as 45 degree centigrade. Constant current & constant Voltage technology ensures uniform charging of the battery. Flexibility to use various types of batteries like LAT (Lead Acid Tubular), LAP (Lead Acid Plante), SMF (Sealed Maintenance Free), Ni-cd (Nickel Cadmium),Standard communication Interface (Optional). Helios - XL Series - Upto 150 KVA

Rectifier Which converts AC voltage of the mains into DC voltage supply for the inverter and battery. Its adequate sizing allows the recharge of long array of batteries while simultaneously supplying the inverter. In order to avoid in rush current on mains, the electronic regulation assures a smooth power walk - in . Battery Provides the energy for the back up in the event of a power failure or if the mains supply is out of tolerance " Sealed lead" battery technology is usually proposed, which uses gas recombination. This allows the integration of the battery in the UPS itself or in a matching cabinet and it limits the maintenance. Inverter Which provides AC voltage of high quality to the load by transforming the DC voltage from the rectifier or battery. IGBT power transistor and PMW technology is used with high frequency switching. This gives it exceptional dynamic performance both for step loads and for supplying non-linear loads due to switch mode computer power supplies. The built-in transformer ensures the galvanic isolation bet'n DC voltage and the load Static BY PASS Which enables the load to be supplied directly by the mains, without interruption, in the event of excessive overload or breakdown of the UPS. Manual BY PASS To provide continuity of supply to the load during maintenance of the UPS.

Voltage : Frequency: Converter : Protection: Battery Voltage: OUTPUT Voltage:

Technical specification 140V- 270V 340V - 480V 50 Hz 5% Full bridge SCR Controlled HRC Fuses, Soft Start for 18 sec. Power walk-in DCV Hightrip 48V to 384V DC (accordingly input tolerance varies) 230V AC Single Phase 415V AC Three Phase

Frequency:

1:1 % for liP - DC Voltage & OIP Load Variation 50 Hz :I: 0.01 %

Waveform:

Sinusoida

Switching Frequency:

12-20 KHz

Harmonic Distortion:

<3%

Load Power Factor:

0.7 Lag to unity

Inverter Efficiency:

92%

Duty : Power Device:

Crest Factor Transient :

Continuous IGBT (Insulated Gate Bipolar Transistor)IPM (Intelligent Power Module 125% for 15 minitues 150% for 1 minute c 3:1 Within 20 mSec (1 Cycle)

Recovery Audible :

<45dB

Noise Ambient Temp Cooling:

0-45 Deg.C

Voltage Stability:

Over Load: Protection:

SPECIAL FEATURES 1 Phase Input Range - 140V - 270V * 3 Phase Input Range 340V - 480V * Power Device IGBT, IPM RF filter in input & Output. Inverter controlled by micro controller Soft - Start for Inverter and charger.. High frequency PWM Technique in Inverter Converter: Six pulse fully controlled Bridge, Rectifier to improve Converter efficiency 4micro Controller based control circuits very High Efficiency, very low energy loss. Reliability built in, very Long MTBF. Multiple options of various configurations Output Virtual Short circuit protection

ENVIRONMENT Ambient Temperature Range

Storage:

0° to 40°C (max 40° for 8 hours)** -250C to 70°C

Relative Humidity:

90% non-condensing type at 20°C

Max. Operating: Altitude without derating Acoustic Noiseat 1 Metre from Panel - Front CABLE ENTRY

100 Meters from MSL

CABINET FINISH Front, Rear & Top Cover Front, Door & Side Cover

Powder - Coated

Operating:

57 to 73 dBA(depending on KVA rating) Bottom Structured WhiteEpoxy Polyester

Structured Black Epoxy Polyester Standard Optional Output Voltage Input Voltage METERING Battery Voltage Input Current Output Current Output Frequency Battery Current Mains On, Charger ON, Inverter On, INDICATIONS battery Low, Over Load, Sequence Failure, Charger Trip, Inverter Trip CONFIGURATION Stand Alone Type True online UPS System Partial Redundant UPS SystemDual Hot standby Redundant type UPS SystemDual Redundant parallel Load Sharing UPS System it. Multiple Redundant Load Sharing UPS SystemOPTIONAL FEATURES : Static Bypass System Isolation Transformer and Servo Stabilizer in bypass Additional Indications andAlarms.Colour Wheels Remote Panel

PHYSICAL DIMENSIONS 1.0KVA, 2.0KA, 3.0KVA (1-1)

WIDTH

DEPTH

HEIGHT

280

540

520

4.0KVA, 5.0KVA, 6.0KVA 7.5KVA, 10.0KVA, (I-l$) 12.5KVA, 15.0KVA, 20.0 KVA, 25.0 KVA (3 - 1)

330

620

580

425

800

800

Above 25.0KVA on request

PericomSolution2000 PericomSolution2000 is a complete, end-to end, innovative solution that meets all document imaging need. This highly customized and scalable value added solution is backed by some of the world's leading document imaging software and hardware vendors today. This includes unprecedented high level of support and maintenance that is facilitated by our highly trained Professional Services Group. Through our product portfolio, expertise and experience, PericomSolution2000 brings together these otherwise separate technologies to create solutions that work in an enterprise-wide environment - for both intensive and casual users. In parallel, we specialize in serving the needs of customers in selected market sectors, and our product development plans are led by their particular needs. Customers will benefit from the in-depth experience and comprehensive application know-how to deliver a solution that is unparalleled by any standards today. DOCUMENT CAPTURE PeriCAPTURE by eCapture is one of the most affordable, easy-to-use, and innovative document capture solutions available in the market today. It allows you to implement both a production-level and Internet-distributed capture system. eCapture is also a modular system that offers concurrent user pricing. Unlike many scanning solutions, eCapture does not meter your usage. Therefore, it won't shut down at those heavy production times because you've exceeded a monthly allotment of scans. There's no monthly cap to the number of scans you can produce so you're free to grow without concern for increased cost. By using ecNet, you can scan

documents anywhere in the world and then send those images over the Internet back to a central site. This is a true, browser-based, Internetdistributed system, not just a data link. Check Capture offers an easy-to-use check scanning interface allowing you to image enable your checks. ecScan is packed with powerful features that make it the obvious choice in a production scanning tool. ecIndex ensures the productivity and efficiency of the indexing operator saving both time and money by providing an easy-to-use method to manually index and file documents. ecNet lets you easily deploy distributed document scanning and indexing at remote locations using the Internet or your corporate intranet. ecAutoFile Server is a simple, software-based solution that uses bar code technology to file images directly into your document management or workflow system. ecImport Server allows you to import images from applications such as: incoming faxes, images from microfiche conversions, images from multifunction copiers, and images scanned using third-party software. ecCommit Server gives you the option of scheduling when documents are committed into your document management or workflow system.

FORM PROCESSING A highly scalable form processing module that automates and capture data from many hard-to-read forms and eliminate the associated manual data-entry tasks. Available in a single station with one verification seat, up to a complete network with many scanners, recognition stations, and as many verification operators as are required. It can distribute work to many PC stations for scanning, recognition, verification and data export. It is also Internet enabled, so that remote processing is possible over private or public networks. PeriFORM powered by award winning Ceresoft is a comprehensive and easy to use out-of-the box forms processing system that includes the best data recognition technology in the world. PeriFORM seamlessly and

accurately recognizes data from handwritten and machine printed forms as well as OMR, barcodes, logos, and form identities. Manager This module, designed to be user-friendly, employs a visual schematic icon diagram to smoothly navigate users and their documents through the system. The complete Windows design includes job control and monitoring, Work flow status and statistics reporting all present on the screen. Real time warning of errors and problems save much time and labor, and users can also view and access document image files, templates, recognition results, and database tables within work flow. Design For a form to be processed, a template must be created that tells the system about the forms attributes, data location and data types. Design provides a template wizard to guide users through the design of these templates. Design also automatically performs form identification, form registration, auto deskew, rotate, and inversion, so that correct and clean data images are extracted for recognition. After the form template is finished, its instructions are stored in an HTML text-file. This file can be accessed by other components of the system. For example, PeriFORM Verify reads it when in the Page Mode editor. Click here for a larger view of the screenshot FreeStyle™ Recognition Engine FreeStyle employs CerebralNet, the most advanced recognition technology available. This recognition engine is the result of years of research by CereSoft engineers. It has peerless character recognition capabilities, the most notable being the ability to read and recognize completely freestyle handwriting. The document may contain individual letters and words, or even sentences and paragraphs. CerebralNet technology integrates, in real time, image, context, and linguistic validation rules to ensure the highest degree of accuracy possible. The FreeStyle recognition engine is seamlessly comprehensive. It recognizes both handwritten and machine-printed words simultaneously and automatically. It also recognizes OMR, barcodes, logos, and form identities. Besides the usual built-in validation rules such as lexical and geometrical context to enhance accuracy, PeriFORM uses a real-time higher-level context known as data objects to assist the recognition process. For example, PeriFORM cross-checks the street, city, state, and zip code of an address from the beginning of, rather than after the recognition process. In this way, the system dramatically cuts down on mistakes. An

otherwise unreadable address can be correctly read in most cases. Other data objects include dates, phone numbers, and e-mail addresses. FreeStyle also uses a large dictionary to limit candidates to recognized words. The Trueword module is built into our recognition engine from the start rather than as a post-processing tool, as other vendors often do. Recognition results are stored in an HTML text file. This file contains such information as the multiple choices of each character and word, their confidences, geometric locations, etc. This information can be easily accessed by PeriFORM's other components and modules. For example, Verify will use it to improve the efficiency of the editing process.

Verify PeriFORM will invoke a carefully designed editor to correct any remaining recognition errors. The editor has two editing modes. In the Field Mode, individual fields will be presented to users one at a time for manual correction. But if field alone cannot resolve the ambiguity of a word, Page Mode can be accessed by double-clicking the field image. In Page Mode, the editing field and the original image in the page are highlighted together for easy identification. Alternative choices for each character and field are displayed at all times along with the field you are editing. Export PeriFORM has the ability to export the extracted data in either ASCII text format or any ODBC compliant database format. The Export Manager allows you to export data to multiple databases in multiple formats. It also allows you to export data to spreadsheets, EDI (electronic data interchange) or web-form format. Other Features PeriFORM is completely scalable. It can distribute work to many PC stations for scanning, recognition, verification and data export. It is also Internet enabled, so that remote processing is possible over private or public networks. It also has an extremely flexible user interface that makes adding or modifying existing jobs easy. It supports all major SCSI and ISIS and

Twain compatible scanners. DLL, COM, DCOM and ActiveX based agents allow PeriFORM to be easily integrated so that it can be used not only as an out-of-the-box product but also as a data entry component of a business information processing system. System Requirements IBM Compatible Pentium PC. 64 Mb of RAM and 200 MB of hard disk space. MS Windows 95, 98, 2000, or NT operating system environment.

DOCUMENT MANAGEMENT PeriDOC (by DocuWare) is the cornerstone of the DocuWare document management product line. It gives you the power to electronically store and organize all kinds of documents — from accounting records to correspondence, from e-mail to technical drawings, and much more. PeriDOC is widely known for its complete functionality, simple administration and usability, seamless integration and absolute security. ACTIVE IMPORT Are you fighting your way through hundreds of e-mail messages every day? The piles of paper from the past - business letters, delivery slips, invoices, faxes etc. have largely been replaced by e-mail. But the same problem remains: how to get a handle on it all. ACTIVE IMPORT 3 takes your e-mail and automatically stores it in PeriDOC alongside all of your other documents. Whether it's from other Windows applications, scanned records or e-mail, everything is stored in one common document pool. Documents can be rapidly retrieved and displayed with a mouse click. In addition, ACTIVE IMPORT 3 integrates digital copy machines, network scanners and external scan programs, so that paper documents and files

of every type can be quickly and easily stored in PeriDOC. PeriDOC helps organize any size office, in any size company in a flash. RECOGNITION With RECOGNITION 2, you can file away your documents in PeriDOC even quicker, since the index words or keywords are automatically extracted from scanned documents. By using barcodes and OCR (Optical Character Recognition), information can be read from pre-defined zones and then transferred for indexing. This add-on module makes your PeriDOC application more efficient, you will hardly need any time to index your documents. And with a wide variety of configuration options, RECOGNITION is truly a multi-faceted tool that classifies your documents and indexes them automatically AUTOINDEX For many documents, data already exists in a computer system that can be used for indexing these documents in an electronic filing system. For example, an accounting system already has information about invoices, such as a vendor’s name, record number, record date, account number and invoice amount. To index documents, this information would normally have to be data entered again and again. However, AUTOINDEX automatically performs this labor intensive work for you. INTERNET-SERVER PeriDOC neatly organizes all of your company´s documents - whether letter, e-mail, business record or any other file - in one common document pool. The add-on module INTERNET-SERVER 3 gives all authorized users access to this pool of information via Internet/Intranet. With any simple web browser, documents are available to your employees as well as current and potential customers worldwide. CONTENT-FOLDER CONTENT-FOLDER ensures quick and direct access to the information you need on a daily basis. The idea is to put together “virtual folders“ containing dynamic or static links to documents filed in PeriDOC. Instead of document copies, these folders contain links to the original documents stored in your file cabinet. The folder can be placed on your desktop, kept as a pending item in MS Outlook, sent by e-mail or stored in an easyaccess location. CONTENT-FOLDER speeds up the information flow in your company. By accessing a folder, coworkers can immediately check the status of a project and cut processing time. Plus, new documents can be simply dragged into the folder — where they are automatically captured and stored in your PeriDOC filing cabinet.

DOCUMENT-SERVER PeriDOC stores all types of documents in a central location by placing the document’s index criteria in a database and saving the actual documents through the file system to a hard disk or optical disks. The add-on module DOCUMENT-SERVER increases document security by acting as an interface between the PeriDOC client and the file system of the network server, taking over the storage and retrieval of documents. With DOCUMENT-SERVER, the user no longer needs direct access to the file system. This means that the security for stored documents is maximized, administration needs reduced, and remote access by PeriDOC client via the Internet is simplified and even faster than ever before. CONNECT to R/3 This SAP-certified additional module to PeriDOC 4 manages the seamless connection between the PeriDOC product family to SAP R/3 using the R/3 standard interface, ArchiveLink. All document types and storage strategies (filing scenarios) recognized by R/3 are supported without exeption. Special functions make it possible to add index criteria and create self-contained file cabinets on CD/DVD. PeriDoc CONNECT to R/3 makes it particularly easy to work together with scanning service bureaus. This module is certified for both ArchiveLink 3.1/4.0 as well as ArchiveLink 4.5 (HTTP content server) CONNECT to NOTES With PeriDOC, documents of any kind – whether they are files from Office applications, scanned documents and e-mails can be filed in a common document pool. The new module CONNECT to NOTES now adds documents from Lotus Notes/Domino to that list. Whether filed manually or fully automatically with indexing, these files can be managed in a preconfigured file cabinet. Within PeriDOC, the user has a variety of editing functions to choose from. For example, scanned documents can be sorted and stapled. This module allows the user to seamlessly transfer these documents from PeriDOC to Lotus Notes COLD/READ Mainframes, midrange systems and PCs are used to generate large volumes of invoices, records, journal reports, etc. This information is printed as a spool file on powerful printers. Using these same spool files, COLD/READ makes it possible to electronically file these documents automatically. These documents are then neatly organized using the proper index information, so that they can be found alongside invoices and other thematically linked documents like letters, files and e-mail. Now through your PC network and even the Internet, you can find the spool documents you need, and display and print them in their original format.

LINK LINK 2 gives you the power to integrate documents filed with PeriDOC directly into other existing applications, such as an accounting or retrieval program, without any additional programming. With a click of a button, LINK 2 displays all the documents that apply to the current context of your application. For example, all the invoices filed about a certain customer or the delivery forms associated with a particular booking. LINK 2 helps you store documents as well. To make indexing a breeze, LINK 2 takes keywords out of an application menu and transfers them right into the PeriDOC storage menu. CDSERVICE CDSERVICE is designed exclusively for the service bureau that wants to put their customers’ documents onto CD/DVD-ROM. CDSERVICE provides a seamless front-end to PeriDOC allowing you to master CDs easily. CDMAKER This innovative module increases your storage media choices by allowing you to store PeriDOC file cabinets on compact disk (CD) and digital versatile disc (DVD) media. The recording process is performed fully automatically. No additional recording software is needed. Documents stored on CD-ROM or DVD can be accessed as an integral part of a PeriDOC document management solution, or alternatively, as a selfcontained medium in a stand-alone application. ISIS PRO Technology with ISIS PRO ISIS PRO provides another powerful scanning option with PeriDOC. Built on industry standard technology from Pixel Translations® the full feature set of an ISIS capable scanner can be utilized with ISIS PRO. TOOLKIT TOOLKIT gives you the power to integrate document management functions in custom applications. It provides the programming interface that provides access to PeriDOC functions straight out of other applications such as Microsoft Office. READER You can look at PeriDOC single and multi-page TIFFs with the READER without having PeriDOC software. When displaying PeriDoc TIFF files, READER automatically displays all overlays containing annotations made to the document with PeriDOC document management software. It is also possible to display any added text notes made to the document. You may also integrate READER into the results list of INTERNET SERVER 3, so

that you can display your documents right there with the same quality and speed as you are accustomed to with PeriDOC Viewer.

Business Process Management A highly scalable, open, reliable architect necessary for enterprise-wide workflow automation which could involve thousands of users. PeriFLOW, powered by Ultimus, is aimed at automating everyday tasks designed to meet the most demanding requirements for customer assistance and service provision. This is a robust enterprise application by PeriFLOW is based on the Microsoft's COM+/DNA architecture and Active Directory. It can be deployed in a multi-platform network with its client technologies using ActiveX with Dynamic HTML for Internet Explorer browsers, Java with Dynamic HTML for Netscape browsers and pure HTML Thin Client for cross-platform browsers. PeriFLOW offers more than 200 essential out-of the-box features for workflow automation, making it the easiest way to deploy scalable workflow applications without programming. Some of the unique features include the following: collaborative workflow design, automatic workflow documentation, cross-platform support, powerful server-side scripts and DLLs for workflow extensions, open form interfaces, XML support and the ability to create custom clients using COM/DCOM. Great partners with PeriDOC or by itself. Very user-friendly. Running on Microsoft technologies, it delivers the lowest cost of ownership of any BPM product available today Feature Highlights · Collaborative, Programming-Free Process Modeling and · Development Environment · Graphical Organization Chart · Choice of Client Interfaces for Task Execution and · Distributed Management · Powerful Integration facilities using Flobots, XML, Web · Services, and .NET · Real-Time Monitoring and Reporting The PeriFLOW BPM Suite allows organizations to model, automate, manage and optimize their business processes using a collection of tightly integrated modules:

BPM Server is a scaleable, enterprise BPM engine that proactively orchestrates and monitors the execution of business processes. Process Designer enables business processes owners and analysts to design, model, document and optimize business processes without any IT involvement. BPM Studio provides a collaborative design environment for teams of IT designers to convert business processes into deployable solutions integrated with databases, electronic forms, business rules, other processes and other systems. Flobots are “workflow robots” that enable third-party desktop and enterprise applications to perform specific tasks in a business process without human intervention. Client/Thin Client provides a flexible and configurable UI to enable end users with different skill levels to participate in business processes and manage their workload, and the workloads of their subordinates. The clients provide access to forms to capture and display business information and decisions with fidelity. Form choices include Thin Forms, ASP .NET forms, Adobe PDF Forms, and Microsoft InfoPath forms. Organization Chart provides a graphical representation of the company’s human resources so that the business process is aware of all of the people, their job functions, reporting relationships and group memberships. This knowledge is used for intelligent routing of tasks during the course of a business process. Administrator provides the tools for the administration of business processes and handling exceptions and special situations. Reports capture a variety of metrics from live processes using customized reports that enable process owners to manage resources and optimize business processes. Enterprise Integration Kit (EIK) provides developer tools and documentation to create advanced integration with back office and enterprise applications using modern technologies such as Web Services and .NET objects.

Dealership/clients Pericom Imaging PERICOM group provides enterprise document imaging and workflow solutions to help organizations enhance cost control, productivity, and information sharing across distributed locations. Founded in 1983, Pericom is a leading solution provider with headquarters in Singapore and branches in Malaysia, Thailand, Indonesia, Philippines and Honk kong. PericomSolution2000 - an integrated solution include document imaging, enterprise form processing, workflow as well as enterprise portal and application integration capabilities. The modularity, and scalability of PericomSolution2000 gives organizations the flexibility to address both departmental goals, as well as more complex, enterprise-wide strategies.

We, Helios Solutions Limited have been authorized to distribute and deal with PericomSolution2000 in India. PericomSolution2000 consists of the following modules • • • •

PeriCAPTURE PeriFORM PeriDOC PeriFLOW

Godrej & Boyce We would like to introduce ourselves as a dealer of Prima Division of Godrej & Boyce Manufacturing Company Ltd. Dealing with an array of International Conferencing and Office Automation Solutions catering to various segments of global market. Tying up with world leaders in the area of complete Conferencing and Office Automation Solutions makes Godrej a one-stop shop for Conferencing and Office Automation Equipments.

High tech products from world leaders in business presentations and conferencing equipment include: • • • • • • • • • • • •

LCD Projectors from Panasonic DLP Projectors from HP & BenQ Video Conferencing Equipment from Tandberg and Polycom Audio Conferencing Equipment from Polycom Panaboards (Electronic White Board) from Panasonic Plasmas from Panasonic Integrated Solutions from Creston Analog and Digital Photocopiers Digital Multifunction Products AO Wide format Copiers and Printers Fax Machines Multi Function Printers

To complete the range, also available Godrej's own Prima Vision Overhead Projectors Some of our client Lists • • • • • • • • • • • • • • •

Cipla – Bangalore D Apparels – Nepal ITC Kakatiya Sheraton – Hyderabad L.G. Electronics National Institute of Ocean Technology (IIT - Chennai) Neyveli Lignite Corporation Sundaram Fastners Teledata Informatics Limited University of Madras Indo Matsushita Carbon Co. Ltd Welcome Group Hotels Swift mail communications (All over India) N-Logue Communications (All over India) All Prison Departments and Courts in Tamil Nadu 25% Engineering colleges in Tamil Nadu

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The study is needed to analyze the working capital management of the company.

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The study is being carried out, as it is necessary to identify the over utilization or under utilization of assets to the turnover of the company.

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It is also necessary to identify the idle assets and non-utilization of funds.

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It is necessary to identify the ‘liquidity dimension of Working Capital’ and the ‘Profitability’.

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To study the working capital management of Helios Solutions Limited by analyzing the profitability, solvency and liquidity position of the company.

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To critically analyze the working capital requirement of Helios Solutions Limited.

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To evaluate the operating efficiency of Helios Solutions Limited.

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To measure utilization of various assets with the turnover of the company.

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To project the future sales, profit and working capital requirements of Helios Solutions Limited.

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The study finds out the operational efficiency of the organization and suggests the proper utilization and allocation of cash resources, to improve the efficiency of the organization.

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The working capital of the organization will be further revealed through the adoption of various techniques available for analysis.

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These techniques reveal the measures that can adopt to improve the existing trend

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The study will be carried out mainly based on the information gathered from the Secondary Data mainly Balance Sheet and Profit and Loss Account.

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The study will be limited to observations of the past. The observation made will be related to laws operated in the past.

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Sufficient data will not be made available to study the current operations being carried out in the company.

In the modern business environment, finance plays a role in every organization. Financial Management is an integral part of the overall management and is mainly concerned with fund raising operations. At present most of the industrial undertakings are faced with the problem of effective utilization of resources. Working Capital is the major importance to internal and external analysis because of its close relationship with the day-to-day operations of a business. Working Capital is the portion of asset of a business, which are used in or related to current operations, and represented at any one time by the operating cycle of such items as against receivables and cash. The present study is an effort to analyze the working capital management of Helios Solutions Limited over a period of time and to provide adequate support for the smooth functioning of the normal business operations of the company. Hence, the analysis of working capital helps the management to have knowledge of current asset required to business concern to have continuous production. It also helps the finance manager to know about the type of product, market share, attitude of the management, cost of funds, inflation the demand and the stages of business cycle.

Statement of the Problem The present study seeks to collect in depth information of the working capital management of Helios Solutions Limited with special

emphasis on an examination of the management performance in regard to financial management. One among the reason the company could perform well is the efficient management of the company’s working capital, which automatically includes inventory, account receivables and cash i.e., the proper management of working capital has brought access to this company. The present study undertakes to deal with the net concept of working capital i.e., excess of current assets over current liabilities.

Research Methodology The project study mainly focuses on the critical assessment of Working Capital Management of Helios Solutions Limited and deals with the liquidity dimension of working capital and the profitability.

Research Design Research is an organized activity focused on specific objective with the support of data collection involving tools for analysis deriving logically sound inferences. Research Design is purely and simply the framework or plan for a study that guides the collection and analysis of data. The function of researcher is to ensure that requires the data collected or accurate and economically.

Primary Data As a part of strengthening the study, personal contacts are made with the officials and staff members of finance department in the form of discussions and collection of reports.

Secondary Data The Secondary Data are collected from Annual Reports, mainly Balance Sheet, Income and Expenditure and other brouchers of the company.

Method of Collection The data for the analysis are collected and gathered from the printed reports of Helios Solutions Limited like annual reports, official files, records and other available related material.

Period of Study The period of study will be carried out from last five financial years i.e., from 2003 – 2008. Tools and techniques for collection of data •

Ratio analysis and interpretation

•

Statement of changes in working capital

•

Common size balance sheet analysis

•

Comparative balance sheet statement

Statistical Tools Implemented are •

Z-Score analysis

•

Regression analysis

Ratio Analysis Current Ratio: Current Assets, Loans & Advances Current Ratio

= Current Liabilities & Provisions

This ratio measures the solvency of the company in the short-term. Current assets are those assets, which can be converted into cash within a year. Current liabilities and provisions are those liabilities that are payable within a year. A current ratio of 2:1 indicates a highly solvent position. Quick Ratio or Liquid Ratio:

Current Assets, Loans & Advances - Inventories Quick Ratio = Current Liabilities & Provisions – Bank Overdraft Quick ratio is used as a measure of the company’s ability to meet its current obligations. Since bank overdraft is secured by the inventories,

the other current assets must be sufficient to meet other current liabilities. A quick ratio of 1:1 indicates highly solvent position. This ratio is also called the acid test ratio. This ratio serves as a supplement to the current ratio in analyzing liquidity.

Comparative Balance Sheet Statements: The comparative balance sheet analysis is the study of the trend of the same items, group of items and computed items in two or more balance sheets of the same business enterprise on different dates. The changes in periodic balance sheet items reflect the conduct of a business. The changes can be observed by comparison of the balance sheet at the beginning and at the end of a period and these changes can help in forming an opinion about the progress of an enterprise. Balance sheets as on two or more different dates are used for comparing the assets, liabilities and the net worth of the company. Comparative balance sheet analysis is useful for studying the trends of an undertaking.

Advantages •

Comparative statements

help

the analyst

to evaluate the

performance of the company.

•

Comparative statements can also be used to compare the performance of the firm with the average performance of the industry between different years.

•

It helps in identification of the weaknesses of the firm and remedial measures can be taken accordingly.

Common Size Balance Sheet Analysis: A statement in which balance sheet items are expressed as the ratio of each asset to total assets and the ratio of each liability is expressed as a ratio of total liabilities is called common size balance sheet. The figures are shown as percentages of total assets, total assets and total liabilities. The total assets are taken as 100 and different assets are expressed as a percentage of the total. Similarly, various liabilities are taken as a part of total liabilities. The figures shown in financial statements viz., Balance Sheet are converted to percentages so as to establish each element to the total figure of the statement and these statements are called Common Size Statements. These statements are useful in analysis of the performance of the company by analyzing each individual element to the total figure of the statement. These statements will also assist in analyzing the performance over years and also with the figures of the competitive firm in the industry for making analysis of relative efficiency. Operating Cycle Analysis: A new concept, which is gaining more and more importance in recent years, is the ‘Operating Cycle Concept’ of Working Capital. The operating cycle refers to the average time elapses between the acquisition of raw materials and the final cash realization. Operating Cycle consists of four stages:

•

The raw materials and stores inventory stage.

•

The work-in-progress inventory stage.

•

The finished goods inventory stage.

•

The receivable stage.

Regression Analysis : A fundamental and versatile research technique that seeks to explain an outcome (dependent) variable in terms of multiple predictor (independent) variables. This analysis reveals the nature and strength of the relationship between each predictor variable and the outcome, independent of the influence from all other predictors. The term typically refers to Ordinary Least Squares (OLS) regression, which models a linear relationship among variables. Z -Score Analysis: The dozens of financial ratios seem to provide different answers to the same simple question of “How will a company do”. So, everyone is on the lookout for financial models that summaries one general aspect of overall company performance. An example is the Z score, which reveals the efficiency of working capital management. The original Z score was created by Edward I Altman at New York University in the mid 1960’s and it has stood as the test of time. Out of a selection of 22 financial ratios. Altmann found 5 that could be combined to

discriminate between the bankrupt and non-bankrupt companies in this study. The interesting thing about the Z score is that is good analytical tool no matter what shape the company is in. Even if the company is very healthy, if the Z score to fall sharply, warning bells should ring. •

The study is needed to identify the current position of the company through Z-Score Analysis.

Ratio Analysis and Interpretation Current Ratio: Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

Current Assets 172673.84 157667.36 211078.23 203573.14 361170.40

Current Liabilities 64712.16 71938.55 119000.23 115980.27 208989.37

(Rs. In Lakhs) CA/CL 2.67 2.20 1.77 1.75 1.73

Graphical representation of change of direction of current ratio

3 2.5 2 1.5

CA/CL

1 0.5 0

2003-04 2004-05 2005-06 2006-07 2007-08

Interpretation The ideal ratio between current assets and current liabilities is 2:1. This is insisted because even if current assets are reduced to half i.e., 1, the creditors will be able to get their dues in full. Here, the ratio is showing a decreasing trend, which may be due to rise in production.

Quick Ratio: Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

Quick Assets 86710.09 81962.52 90770.42 83259.81 119554.60

(Rs. In Lakhs) Quick Liabilities QA/QL 64712.16 1.40 71938.55 1.14 119000.23 0.76 115980.27 0.72 208989.37 0.57

Graphical representation of change of direction of quick ratio

1.4 1.2 1 0.8 QA/QL

0.6 0.4 0.2 0

2003-04 2004-05 2005-06 2006-07 2007-08

Interpretation The ideal quick ratio is 1. Here, the analysis shown as decrease trend due to increasing inventory level which has resulted in increase in current liabilities. When there is no corresponding increase in liquidity of current asset, where as the current liabilities as gone up. The quick ratio is tend to decrease since the company is in an oligopolystic market, the company is in an position to liquidate its current asset and gain an recovery of money within shortest possible time. The downward trend in the quick ratio therefore has no significant and is not representational. TURNOVER RATIOS: Debtor’s Turnover Ratio (Rs. In Lakhs) Year

Sales

2003-2004 2004-2005 2005-2006 2006-2007

698269.21 617481.66 807612.81 869351.35

Average Re- Sales/Avg. ceivables ceivables 22954.92 30.42 30501.04 20.24 48906.84 16.51 56759.48 15.32

re-

2007-2008

1418835.8 5

70822.26

20.03

Graphical representation of change of direction of Debtors Turnover ratio

35 30 25 20

Sales/Avg. receivables

15 10 5 0

2003-04 2004-05 2005-06 2006-07 2007-08

Debtor’s Collection Period (Rs. In Days) Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

Days in a Debtor’s Year/DTR Year Turnover Ratio 365 30.42 12.00 365 20.24 18.03 365 16.51 22.11 365 15.32 23.83 365 20.03 18.22

Graphical representation of change of Debtors Collection Period. 25 20 15 Year/DTR

10 5 0

2003-04 2004-05 2005-06 2006-07 2007-08

Interpretation The debtor’s turnover ratio shows a decreasing trend and the debtors collection period is increasing. This implies that the collection of payments from debtors has been delayed. In other words, the company has allowed extended credit period to its customers.

Creditors Turnover Ratio

(Rs. In Lakhs) Year

Purchases

2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

628630.94 558658.42 724122.91 768150.85 1275166.1

Average Creditors 53579.19 55809.94 77785.64 96024.94 128634.42

Purchases/Avg. Creditors 11.73 10.01 9.31 7.99 9.91

4

Graphical representation of change of direction of Creditors Turnover ratio

12 10 8 6

Purchases/Avg. Creditors

4 2 0

2003-04 2004-05 2005-06 2006-07 2007-08

Creditors Collection Period (Rs. In Days) Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

Days in a Creditors Year/CTR Year Turnover Ratio 365 11.73 31.12 365 10.01 36.46 365 9.31 39.21 365 7.99 45.68 365 9.91 36.83

Graphical representation of change of Creditors Collection Period. 50 45 40 35 30 25 20 15 10 5 0

Year/CTR

2003-04 2004-05 2005-06 2006-07 2007-08

Interpretation The Creditors turnover ratio shows a decreasing trend and the creditors collection period is increasing. It is only an temporary phenomenon.

Working Capital Turnover Ratio (Rs. In Lakhs) Year

Sales

2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

698269.21 617481.66 807612.81 869351.35 1418835.8 5

Net Working Capital 107961.68 85728.81 92078.00 87592.87 152181.03

Sales/NWC 6.47 7.20 8.77 9.92 9.32

Graphical representation of change of direction of Working Capital ratio 10 9 8 7 6 5 4 3 2 1 0

Sales/NWC

2003-04 2004-05 2005-06 2006-07 2007-08

Interpretation This analysis helps to measure effective utilization of Working Capital. Here, as the sales grown the ratio has also gone up, but in the current year 2007-2008, the ratio shows a decreasing trend, which means that the turnover has increased with a lesser working capital as sign of efficient management of working capital. Fixed Asset Turnover Ratio (Rs. In Lakhs) Year

Sales

Fixed Assets

2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

698269.21 617481.66 807612.81 869351.35 1418835.8 5

117060.36 114201.89 119827.06 257073.25 331879.70

Sales/Fixed Assets 5.97 5.41 6.74 3.38 4.28

Graphical representation of change of direction of Fixed Asset Turnover ratio

7 6 5 4 Sales/FA

3 2 1 0

2003-04

2004-05 2005-06 2006-07

2007-08

Interpretation In the year 2006-2007, due to water scarcity the company was shut down for more than 45 days, which resulted in a poor turnover. That resulted in declining in ratio. In the year 2007-08. Inventory Turnover Ratio (Rs. In Lakhs) Year

Sales

2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

698269.21 617481.66 807612.81 869351.35 1418835.8 5

Average ventory 32717.91 31275.14 41295.17 53122.37 75967.86

In- Sales/AI 21.34 19.74 19.56 16.37 18.68

Graphical representation of change of direction of Inventory Turnover ratio

25 20 15 Sales/AI

10 5 0

2003-04

2004-05

2005-06

2006-07

2007-08

Interpretation This ratio indicates that the stock is moving with a constant range, which is reasonable.

Inventory Turnover Period

(Rs. In Days) Year 2003-2004 2004-2005 2005-2006

Days in a Inventory Year/ITR Year Turnover Ratio 365 21.34 17.10 365 19.74 18.49 365 19.56 18.66

2006-2007 2007-2008

365 365

16.37 18.68

22.30 19.54

Graphical representation of change of Inventory Turnover Period.

25 20 15 Year/ITR

10 5 0

2003-04 2004-05 2005-06 2006-07 2007-08

Interpretation The inventory turnover period is increasing every year. This is only an temporary phenomenon. Owned Capital Turnover Ratio (Rs. In Lakhs) Year

Sales

2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

698269.21 617481.66 807612.81 869351.35 1418835.8 5

Shareholder’s Fund 124845.62 105122.07 129528.04 161133.04 200433.69

Sales/Sh. Holder’s Fund 5.59 5.87 6.24 5.40 7.08

Graphical representation of change of direction of Owned Capital Turnover ratio 8 7 6 5 4

Sales/Sh. Holders fund

3 2 1 0

2003- 2004- 2005- 2006- 200704 05 06 07 08

Interpretation This ratio has shown some improvement over the period of time. This means that the company has made use of the owner’s fund efficiently. However, the company is searching for the better growth of company by improving the turnover of the company. Thus, its aim now being to maximize the profit and to maximize the wealth of the shareholders. Comparative Balance Sheet (2003-2004 & 2004-2005) Particulars

2003-2004

2004-2005

Absolute Change

Change %

Sources of Funds 1.Share Holders Funds a. Capital b. Reserves & Surplus 2.Loan Funds a. Secured Loans b. Unsecured Loans 3.Deferred Tax Liability (Net)

14900.33 109945.32 124845.62

14900.33 90221.74 105122.07

0.00 -19723.58 -19723.55

0.00 -17.94 -15.80

3267.56 111978.15 115245.71

3242.94 122550.16 125793.10

-24.62 10572.01 10547.39

-0.75 9.44 9.15

24913.43

24913.43

0.00

Total

240091.33

255828.60

15737.27

6.55

205603.09 88542.73 117060.36 11732.05 128792.41

210721.86 96519.97 114201.89 50765.85 164967.74

5118.77 7977.24 -2858.47 39033.80 36175.33

2.49 9.01 -2.44 332.71 28.09

1903.04 0.00

3161.73 0.46

1258.69 0.46

66.14 0.00

85818.49 24179.85 8737.72 1922.63 52015.15 172673.84

75743.23 36822.23 16584.45 2055.45 26544.51 157749.87

-10075.26 12642.38 7846.73 132.82 -25470.64 -14923.97

-11.74 52.28 89.80 6.91 -48.97 -8.64

56895.41 7816.75 64712.16

65253.84 6729.30 71983.14

8358.43 -1087.45 7270.98

14.69 -13.91 11.24

107961.68

85766.73

-22194.95

-20.56

1434.20

1931.94

497.74

34.71

240091.33

255828.60

15737.27

6.55

Application of Funds 1.Fixed Assets a. Gross Block b. Less: Dep & Amortization c. Net Block d. Capital WIP 2.Investments Interest Accrued on Inv. 3.Cur. Assets, Loans & Adv. a. Inventories b. Sundry Debtors c. Cash & Bank Balances d. Other Current Assets e. Loans & Advances 4.Less: Current Liabilities a. Current Liabilities b. Provisions 5.Net Current Assets 6.Miscellaneous Expenditure (to the extent not written off) Total

Interpretation Current Financial Position and Liquidity Position The current assets have decreased by Rs.14923 lakhs (8.64%) and sundry debtors have increased by Rs.12642 lakhs (52%). On the other hand, there has been a decrease in inventories amounting to Rs.10075 lakhs. The current liabilities have increased by Rs.7270.98 lakhs (11.24%).

This further confirms that the company has no improvement in the shortterm financial position.

Long Term Financial Position There is an increase in fixed assets of about Rs.5118 lakhs (2.49%). There is also an increase in long-term loans of about Rs.10572 lakhs (9.44%). This depicts that fixed assets are not only financed from long term sources but part of working capital has also been financed from long term sources. This fact depicts that the policy of the company is to purchase fixed assets from the long-term sources of finance thereby not affecting the working capital. There is an increase in loaned funds than the share capital, so this increases the interest liability for the company. Profitability of the Concern There is a decrease in the reserves and surplus of the company of about Rs.19723 lakhs (17.94%). This is due to appropriation of deferred tax liability. Comparative Balance Sheet (2004-2005 & 2005-2006) Particulars

2004-2005

2005-2006

Absolute Change

Change %

Sources of Funds 1.Share Holders Funds a. Capital b. Reserves & Surplus 2.Loan Funds a. Secured Loans b. Unsecured Loans

14900.33 90221.74 105122.07

14900.39 114627.65 129528.04

0.06 24405.91 24405.97

0.00 27.05 23.22

3242.94 122550.16 125793.10

17500.00 180067.05 197567.05

14257.06 57516.89 71773.95

439.63 46.93 57.06

3.Deferred Tax Liability (Net) Total

24913.43

27324.00

2410.57

9.68

255828.60

354419.09

98590.49

38.54

210721.86 96519.97 114201.89 50765.85 164967.74

226518.60 106691.54 119827.06 139922.28 259749.34

15796.74 10171.57 5625.17 89156.43 94781.60

7.50 10.54 4.93 175.62 57.45

3161.73 0.46

2397.17 0.00

-764.56 0.00

-24.18 0.00

75743.23 36822.23 16584.45 2055.45 26544.51 157749.87

120307.81 60991.45 901.28 10.41 28867.28 211078.23

44564.58 24169.22 -15683.17 -2045.04 2322.77 53328.36

58.84 65.64 -94.57 -99.49 8.75 33.81

65253.84 6729.30 71983.14

101381.83 17618.40 119000.23

36127.99 10889.10 47017.09

55.37 161.82 65.32

85766.73

92078.00

6311.27

7.36

1931.94

194.58

-1737.36

-89.93

255828.60

354419.09

98590.49

38.54

Application of Funds 1.Fixed Assets a. Gross Block b. Less: Dep & Amortization c. Net Block d. Capital WIP 2.Investments Interest Accrued on Inv. 3.Cur. Assets, Loans & Adv. a. Inventories b. Sundry Debtors c. Cash & Bank Balances d. Other Current Assets e. Loans & Advances 4.Less: Current Liabilities a. Current Liabilities b. Provisions 5.Net Current Assets 6.Miscellaneous Expenditure (to the extent not written off) Total

Interpretation Current Financial Position and Liquidity Position The current assets have increased by Rs.53328 lakhs (33.81%) and sundry debtors have increased by Rs.24169 lakhs (65%). On the other hand, there has been a increase in inventories amounting to Rs.44564 lakhs. The current liabilities have increased by Rs.47017 lakhs (65%). This

further confirms that the company has no improvement in the liquidity position.

Long Term Financial Position There is an increase in fixed assets of about Rs.15796 lakhs (7.5%). There is also an increase in long-term loans of about Rs.71773 lakhs (57%). This depicts that fixed assets are not only financed from long term sources but part of working capital has also been financed from long term sources. This fact depicts that the policy of the company is to purchase fixed assets from the long-term sources of finance thereby not affecting the working capital. There is an increase in loaned funds than the share capital, so this increases the interest liability for the company. Profitability of the Concer There is an increase in the reserves and surplus of the company of about Rs.24405 lakhs (27%). This fact depicts that there is an increase in the profitability of the concern. Comparative Balance Sheet (2005-2006 & 2006-2007) Particulars

2005-2006

2006-2007

Absolute Change

Change %

Sources of Funds 1.Share Holders Funds a. Capital b. Reserves & Surplus 2.Loan Funds a. Secured Loans b. Unsecured Loans

14900.39 114627.65 129528.04

14900.46 146232.58 161133.04

0.07 31604.93 31605.00

0.00 27.57 24.40

17500.00 180067.05 197567.05

94728.99 141801.83 236530.80

77228.99 -38265.22 38963.77

441.31 -21.25 19.72

3.Deferred Tax Liability (Net) Total

27324.00

34635.60

7311.60

26.76

354419.09

432299.50

77880.37

21.97

226518.60 106691.54 119827.06 139922.28 259749.34

375992.81 118919.56 257073.25 82319.11 339392.40

149474.21 12228.02 137246.19 -57603.17 79643.02

65.99 11.46 114.54 -41.17 30.66

2397.17 0.00

1196.80 0.00

-1200.37 0.00

-50.07 0.00

120307.81 60991.45 901.28 10.41 28867.28 211078.23

120313.33 52527.51 1242.89 16.51 29472.90 203573.10

5.52 -8463.94 341.61 6.10 605.62 -7505.09

0.00 -13.88 37.90 58.60 2.10 -3.56

101381.83 17618.40 119000.23

105388.88 10591.39 115980.30

4007.05 -7027.01 -3019.96

3.95 -39.88 -2.54

92078.00

87592.87

-4485.13

-4.87

194.58

141.27

-53.31

-27.40

354419.09

432299.50

77880.37

21.97

Application of Funds 1.Fixed Assets a. Gross Block b. Less: Dep & Amortization c. Net Block d. Capital WIP 2.Investments Interest Accrued on Inv. 3.Cur. Assets, Loans & Adv. a. Inventories b. Sundry Debtors c. Cash & Bank Balances d. Other Current Assets e. Loans & Advances 4.Less: Current Liabilities a. Current Liabilities b. Provisions 5.Net Current Assets 6.Miscellaneous Expenditure (to the extent not written off) Total

Interpretation Current Financial Position and Liquidity Position The current assets have decreased by Rs.7505 lakhs (3.56%) and sundry debtors have decreased by Rs.8463 lakhs (13%). On the other hand, there has been a increase in inventories amounting to Rs.5.52 lakhs.

Long Term Financial Position There is an increase in fixed assets of about Rs.79643 lakhs (30%). There is also an increase in long-term loans of about Rs.77228 lakhs (441%). This depicts that fixed assets are not only financed from long term sources but part of working capital has also been financed from long term sources. This fact depicts that the policy of the company is to purchase fixed assets from the long-term sources of finance thereby not affecting the working capital. There is an increase in loaned funds than the share capital, so this increases the interest liability for the company.

Profitability of the Concern There is a increase in the reserves and surplus of the company of about Rs.31604 lakhs (27%). This fact depicts that there is a increase in the profitability of the concern.

Comparative Balance Sheet (2006-2007 & 2007-2008) Particulars

2006-2007

2007-2008

Absolute Change

Change %

Sources of Funds 1.Share Holders Funds a. Capital b. Reserves & Surplus 2.Loan Funds a. Secured Loans b. Unsecured Loans 3.Deferred Tax Liability (Net)

14900.46 146232.58 161133.04

14900.46 185533.23 200433.69

0.00 39300.65 39300.65

0.00 26.87 26.87

94728.99 141801.83 236530.80

94344.07 145476.99 239821.06

-384.92 3675.16 3290.24

-0.41 2.59 2.18

34635.60

55082.27

20446.67

59.03

Total Application of Funds 1.Fixed Assets a. Gross Block b. Less: Dep & Amortization c. Net Block d. Capital WIP 2.Intangible Assets 3.Investments . 4.Cur. Assets, Loans & Adv. a. Inventories b. Sundry Debtors c. Cash & Bank Balances d. Other Current Assets e. Loans & Advances 5.Less: Current Liabilities a. Current Liabilities b. Provisions 6.Net Current Assets 7.Miscellaneous Expenditure (to the extent not written off) Total

432299.54

495337.02

63037.56

14.58

375992.81 118919.56 257073.25 82319.11 339392.36 3976.16

470804.58 138924.88 331879.70 4518.00 336397.70 5473.53

94811.77 20035.32 74806.45 -77801.11 -2994.66 1497.37

25.22 16.82 27.54 -94.51 -0.88 37.66

1196.80

1196.80

0.00

0.00

120313.33 52527.51 1242.89 16.51 29472.90 203573.10

241615.73 89117.01 970.11 3.65 29463.90 361170.40

121302.40 36589.50 -272.78 -12.86 -9.00 157597.26

100.82 69.66 -21.95 -77.89 -0.03 77.42

105388.88 10591.39 115980.30

185750.36 23239.01 208989.37

80361.48 12647.62 93009.10

76.25 1.19 80.19

87592.87

152181.03

64588.16

73.74

141.27

87.96

-53.31

-37.74

432299.50

495337.02

63037.56

14.58

Interpretation Current Financial Position and Liquidity Position The current assets have increased by Rs.157597 lakhs (77.42%) and sundry debtors have decreased by Rs.36589 lakhs (69.66%). On the other hand, there has been a increase in inventories amounting to Rs.121302 lakhs. The current liabilities have decreased by Rs.80361 lakhs (76.25%). This further confirms that the company has improvement in the liquidity position.

Long Term Financial Position There is a decrease in fixed assets of about Rs.2994 lakhs (.88%). There is also an increase in long-term loans of about Rs.3290 lakhs (2.18%). This depicts that fixed assets are not only financed from long term sources but part of working capital has also been financed from long term sources. Also it is clear that there is no addition of fixed assets. This fact depicts that the policy of the company is to purchase fixed assets from the long-term sources of finance thereby not affecting the working capital. There is an increase in loaned funds than the share capital, so this increases the interest liability for the company. Profitability of the Concern There is a increase in the reserves and surplus of the company of about Rs.39300 lakhs (26.87). This fact depicts that there is a increase in the profitability of the concern. Common size Balance Sheet Analysis Values in % Particulars

2003-

2004-05

2005-06

04

2006-

2007-08

07

Liabilities a) Current Liabilities Current liab. Provisions Total

18.7 2.6 21.2

19.9 2.1 22.0

21.4 3.7 25.1

19.2 1.9 21.2

26.4 3.3 29.7

b) Shareholders Funds Capital Reserves & Surplus

4.9 36.1

4.5 27.5

3.1 24.2

2.7 26.7

2.1 26.3

Total

41.0

32.0

27.4

29.4

28.4

1.1 36.7 37.8

1.0 37.4 38.4

3.7 38.0 41.7

17.3 25.9 43.1

13.4 20.7 34.1

d) Deferred Tax Liability

0.0

7.6

5.8

6.3

7.8

Total Liabilities

100

100

100

100

100

42.3 0.0 0.6

50.3 0.0 1.0

54.9 0.0 0.5

62.6 0.0 0.2

47.7 0.8 0.1

28.2 7.9 2.9 0.6 17.1

23.1 11.2 5.1 0.6 8.1

25.4 12.9 0.2 0.0 6.1

21.9 9.6 0.2 0.0 5.4

34.3 12.7 0.1 0.0 4.2

56.7

48.1

44.6

37.1

99.9

e) Misc. Expenditure

0.5

0.6

0.0

0.0

0.1

Total Assets

100

100

100

100

100

c) Loan Funds Secured Loans Unsecured Loans Total

Assets a) Net Fixed Assets b) Intangible Assets c) Investments d) Current Assets Inventories Sundry Debtors Cash & Bank Balances Other Current Assets Loans & Advances Total

Interpretation In common size balance sheet analysis in HELIOS, it is found that the total assets and liabilities are taken as 100% total and other components of assets and liabilities are also expressed in terms compared to total asset and total liability. The total capital % shows a decreasing trend for the last two years. There is also a decline in reserves & surplus in the last few years due to introduction of AS-22. The percentage of loan funds is increasing

which states the availing of fresh loan from the year 05 to 06 for the purpose of expansion of the business. The total net worth has decreased by 10%, which is because of fluctuation in the reserves & surplus. The company adopted regrouping of certain loans and advances under crude oil loan transaction in line with industry’s practice of representing the same. This has vitiated the trend in current liabilities from the old years. Fixed assets have increased in figures during all the years of study. It is due to a part of current liability arrives net profit have contributed to the increase in fixed assets. The current asset part has considerably decreased since 2003 and it is due to decrease in loans and advances. There is no decrease in inventory; it is because the company is doing mass production, so as to reduce the production cost.

STATEMENT OF CHANGES IN WORKING CAPITAL Changes in Working Capital – (2003-2004) Particulars Current Assets & Adv. Cash and Bank Balance Inventories Sundry Debtors Other Current Assets Loans and Advances Total Current Assets (A) Current liabilities, Prov. Current liabilities

2003

2004

Increase

3472.49 96357.04 21729.98 1631.95 53521.68 176713.14

8737.72 85818.49 24179.85 1922.63 52015.15 172673.84

5265.23

63214.58

56895.41

6319.17

Decrease

10538.55 2449.87 290.68 1506.53

Provisions Total Current Liability (B)

25948.01 89162.59

7816.75 64712.16

Net Working Capital (AB)

87550.55

107961.68

Net Increase in Working Capital (B/F)

20411.13

Total

107961.68

18131.26

20411.13 107961.68

32456.21

32456.21

Interpretation In the year 2004, the inventory level is reduced because of low production. The sundry debtors increased considerably indicating more credit being given to the customers. The cash and bank balance increased because of non-utilization of funds. The total current assets decreased because of decrease in inventory level. The current liabilities decreased because of repayment of loans.

Changes in Working Capital – (2004-2005)

Particulars Current Assets & Adv. Cash and Bank Balance Inventories Sundry Debtors Other Current Assets Loans and Advances Total Current Assets (A) Current liabilities, Prov. Current liabilities

2004

2005

8737.72 85818.49 24179.85 1922.63 52015.15 172673.84

16584.45 75704.85 36822.23 19.89 28535.94 157667.36

56895.41

65211.73

Increase

Decrease

7846.73 10113.64 12642.38 1902.74 23479.21

8316.32

Provisions Total Current Liability (B)

7816.75 64712.16

6726.82 71938.55

Net Working Capital (AB)

107961.68

85728.81

Net Increase in Working Capital (B/F) Total

107961.68

1089.93

22232.87

22232.87

107961.68

43811.91

43811.91

Interpretation In the year 2005, the inventory level is reduced because of not holding up the inventory. The sundry debtors increased considerably indicating more credit being given to the customers.

Changes in Working Capital – (2005-2006)

Particulars Current Assets & Adv. Cash and Bank Balance Inventories Sundry Debtors Other Current Assets Loans and Advances Total Current Assets (A) Current liabilities, Prov. Current liabilities Provisions

2005

2006

16584.45 75704.85 36822.23 19.89 28535.94 157667.36

901.28 120307.81 60991.45 10.41 28867.28 211078.23

65211.73 6726.82

101381.83 17618.40

Increase

Decrease 15683.17

44602.96 24169.22 9.48 331.34

36170.10 10891.58

Total Current Liability (B)

71938.55

119000.23

Net Working Capital (AB)

85728.81

92078.00

Net Increase in Working Capital (B/F)

6349.19

Total

92078.00

6349.19 92078.00

69103.52

69103.52

Interpretation In the year 2006, cash and bank balance reduced indicating lesser liquidity position of the company. However, it shows the best management of surplus funds. The inventory level is raised because of increase in production. The sundry debtors are increasing because of rise in sales level. Loans given were increased slightly. The total current liabilities are increased because of rise in the level of borrowings made by the business. Changes in Working Capital – (2006-2007)

Particulars

2006

2007

Current Assets & Adv. Cash and Bank Balance Inventories Sundry Debtors Other Current Assets Loans and Advances Total Current Assets (A)

901.28 120307.81 60991.45 10.41 28867.28 211078.23

1242.89 120313.33 52527.51 16.51 29472.90 203573.14

Current liabilities, Prov. Current liabilities Provisions Total Current Liability (B)

101381.83 17618.40 119000.23

105388.88 10591.39 115980.27

Increase

Decrease

341.61 5.52 8463.94 6.10 605.62

4007.05 7027.01

Net Working Capital (AB)

92078.00

Net Increase in Working Capital (B/F) Total

92078.00

87592.87 4485.13

4485.13

92078.00

12470.99

12470.99

Interpretation In the year 2007, the inventory is increased slightly. The cash and bank balance raised indicating stability in the liquid position of the company. The level of debtors decreased indicating immediate cash flow into the business. The level of loans given also increased indicating effective utilization of cash. The current liabilities decreased because of repayment efforts.

Changes in Working Capital – (2007-2008)

Particulars Current Assets & Adv. Cash and Bank Balance Inventories Sundry Debtors Other Current Assets Loans and Advances Total Current Assets (A) Current liabilities, Prov. Current liabilities Provisions Total Current Liability (B)

2007

2008

1242.89 120313.33 52527.51 16.51 29472.90 203573.14

970.11 241615.73 89117.01 3.65 29463.90 361170.40

105388.88 10591.39 115980.27

185750.36 23239.01 208979.37

Increase

Decrease 272.78

121302.40 36589.50 12.86 9.00

80361.48 12647.62

Net Working (A-B)

Capital

87592.87

Net Increase in Working Capital (B/F)

64588.16

Total

152181.03

152181.03 64588.16 152181.03

157891.90

157891.90

Interpretation In the year 2008, the inventory and sundry debtors shows a big hike. It is due to the increase in turnover of the company. The cash and bank balance, Loans and advances have been reduced. It may be due to the repayment of current liabilities. The current liabilities have been decreased, which means that there is an mass payment and settlement of creditors.

Operating Cycle

Year

2003-04 2004-05 2005-06 2006-07 2007-08

R.M (a) 18 20 20 25 11

Interpretation

WIP (b) 28 14 25 33 14

FinDrs Crs Duration of Opished (d) (e) erating Cycle Goods (a+b+c+d-e) = f (c) 11 11 27 41 13 17 32 32 14 20 32 47 16 21 36 59 11 18 37 17

Operating Cycle in Times (365/f) 8.90 11.41 7.77 6.19 21.47

Operating Cycle refers to the average time elapses between the purchase of raw material and final cash collection. Cash is used to buy the raw materials and other stores. The collection process of the company has improved, but the company is not paying its trading creditors first, instead it has started closing the outside loans. However, the company can improve the turnover because of that reason, the creditors has allowed a maximum credit of 37 days for each supply.

The number of cycles if maximized, then it means that the company is able to collect the payments in time and they are using the funds efficiently for the production purposes. If the company maintains the present year situation, then there will be a comfortable growth for the company’s business. Operating Cycle shows an increasing trend because of increase in debtors and delayed payments to creditors. The decrease in the operating cycle of times reveals the possibility of delay or decrease in yielding the profit.

Z-Score Analysis for the year 2003-2004 to 2007-2008 The formula for calculating Z-Score analysis is Z = 0.012X1 + 0.014X2 + 0.033X3 + 0.006X4 + 0.010X5 Where, Z = Financial Health Score X1 = Working Capital / Total Assets * 100 X2 = Retained Earnings / Total Assets * 100 X3 = EBIT / Total Assets * 100 X4 = Net Worth / Total Liability * 100 X5 = Sales / Total Assets * 100 Year 2003-04 2004-05 2005-06 2006-07 2007-08

X1 37.02 31.17 27.63 18.97 21.61

X2 2.8 1.23 7.32 6.84 26.34

X3 9.56 7.89 17.84 13.40 15.51

X4 40.49 31.48 27.32 29.36 28.46

X5 244.57 228.09 258.92 205.18 201.46

Year 2003-04 2004-05 2005-06 2006-07 2007-08

Z-Value 0.44424 + 0.0392 + 0.31548 + 0.24294 +2.4457 0.37404 + 0.01722 + 0.26037 + 0.18888 + 2.2809 0.33156 + 0.10248 + 0.58872 + 0.16392 + 2.5892 0.22764 + 0.09576 + 0.4522 + 0.17616 + 2.0518 0.25932 + 0.36876 + 0.51183 + 0.17076 + 2.0146

Z-Score 3.48756 3.12141 3.77588 3.00356 3.32527

Interpretation

Z-Score more than 3.0 is financially sound and less than 1.8 shows certain in bankruptcy. Z-Score between 1.8 and 3.0 indicating that the company is prone to financial sickness. Z-Score for HELIOS in all the years is more than 3.0. It indicates that the company’s financial position is sound in all the years. This is because of increase in turnover, which reacts to the growth in the financial grounds of the company. The past records of the company have revealed some sickness in finance. From the year 2003-2004 to the year 2007-08, the score is more than 3.0. Indicating sound financial policy.

Regression Analysis Profit on Sales

Year

x2

Sales (x)

Profit (y)

xy

2003-2004

Rs.lakh 7132

Rs.lakh 122

870104

50865424

2004-2005

6273

63

395199

39350529

2005-2006

8629

302

2605958

74459641

2006-2007

9475

400

3790000

89775625

2007-2008

16295

596

9711820

265527025

Total

47804

1483

17373081

519978244

x = independent variable (sales) y = dependent variable (profit) a, b = constants Regression Equation y on x is yc = a + bx To find out the values of a, b Σy = na + bΣx Σxy = aΣx + bΣx2 By substituting this Equation

1483

= 5a

+ 47804 b ------------------(Multiplied by 47804)

17373081 = 47804 a + 519978244 b ------------(Multiplied by 5)

70893322=

239020 a + 2285222416 b

86865405 =

239020 a + 2599891220 b

------------------------------------------------------15972073 = 314668804 b -----------------------------------------------------b = 0.05076 By substituting b value in Equation (1) 1483 = 5a + 47804 b a = - 188.69 The Future Sales Estimation for the year 2009 is 23000 lakh and for the year 2010, it is 25700 lakh. By substituting the values of a and b in the regression line y on x is

FOR 2009 y = - 188.69 + 0.05076 (23000) y = Rs. 978.79 lac.

FOR 2010 y = -188.69 + 0.05076 (25700) y = Rs. 1115.84 lac.

Interpretation Here the variable `y’ is taken as Profit and `x’ is taken as Sales. The estimated sales for 2009 is based on the actuals for nine months up to December 2008 and realistic estimates for the balance three months of the year 2008-09.

The estimated sales for 2009-10 is based on the

budget estimates by the organization with a growth rate of about 12% factored over the Revised Estimates for 2008-09. The projection of Rs. 978.79 lac. and Rs. 1115.84 lac. for the next two years indicates increase in profit due to estimation that the price of Raw Material and Finished goods may vary at a higher rate that result in such a huge increase in profit. Thus the regression analysis estimates a higher quantum of profitability for the organization in the coming two years 2008-09 and 2009-10.

Debtors to Sales

Year

Sales (x)

Debtors (y)

xy

x2

2003-2004

7132

241

1718812

50865424

2004-2005

6273

368

2308464

39350529

2005-2006

8629

616

5315464

74459641

2006-2007

9475

525

4974375

89775625

2007-2008

16295

891

14518845

265527025

Total

47804

2641

28835960

519978244

x = independent variable (sales) y = dependent variable (debtors) a, b = constants

Regression Equation y on x is yc = a + bx To find out the values of a, b Σy = na + bΣx Σx = aΣx + bΣx2 By substituting this Equation

2641

=

5a

+ 47804 b

------------------(* 47804 )

28835960 = 47804 a + 519978244 b ------------(*5)

126250364 =

239020 a + 2285222416 b

144179800 = 239020 a + 2599891220 b ------------------------------------------------------179294436 =

314668804 b

------------------------------------------------------b = 0.05698 By substituting b value in Equation (1) 2641 = 5a + 47804 b a = - 16.56 The Future Sales Estimation for the year 2009 is 23000 lakh and for 2010, it is 25700 lakh . By substituting the values of a and b in the regression line y on x is FOR 2009 y = - 16.56 + 0.05698 (23000) y = Rs. 1293.95 lac. FOR 2010 y = - 16.56 + 0.05698 (25700) y = Rs. 1447.79 lac.

Interpretation Here the variable `x’ is taken as Sales and variable `y’ as Debtors. The estimated sales for 2009 is based on the actual for nine months up to December 2008 and realistic estimates for the balance three months of the year 2008-09.

The estimated sales for 2009-10 is based on the

budget estimates by the organization with a growth rate of about 12% factored over the Revised Estimates for 2008-09.

The projection of Rs.1293.95 lac. and Rs. 1447.79 lac. indicates increase in debtors due to increase in sales. Most of the sales made by the company is taken as credit sales. So increase in sales will result in increase in the amount of debtors.

Thus the regression analysis estimates a higher quantum of sundry debtors for the organization for the coming two years 2008-09 and 200910

Sales vs. Working Capital

Year

Sales

Xy

x2

1079

7695428

50865424

Working Capital

2003-

(x) 7132

2004 2004-

6273

857

5375961

39350529

2005 2005-

8629

920

7938680

74459641

2006 2006-

9475

875

8290625

89775625

2007 2007-

16295

1522

2008 Total

(y)

2480099 265527025 0

47804

5253 5410168 4

x = independent variable (sales) y = dependent variable (debtors) a, b = constants Regression Equation y on x is yc = a + bx To find out the values of a, b Σy = na + bΣx Σx = aΣx + bΣx2

519978244

By substituting this Equation 5253

=

5a

+ 47804 b

------------------(* 47804 )

54101684 = 47804 a + 519978244 b ------------(*5)

251114412 =

239020 a + 2285222416 b

270508420 = 239020 a + 2599891220 b ------------------------------------------------------19394008

=

314668804 b

------------------------------------------------------b = 0.06163 By substituting b value in Equation (1) 5253 = 5a + 47804 b a = 461.34 The Future Sales Estimation for the year 2009 is 23000 lakh and for 2010, it is 25700 lakh . By substituting the values of a and b in the regression line y on x is FOR 2009 y = 461.34 + 0.06163 (23000) y = Rs. 1878.90 lac. FOR 2010 y = 461.34 + 0.06163 (25700)

y = Rs. 2045.31 lac. Interpretation

Here the variable `x’ is taken as Sales and variable `y’ as Working Capital. The estimated sales for 2009 is based on the actual for nine months up to December 2008 and realistic estimates for the balance three months of the year 2008-09. The estimated sales for 2009-10 is based on the budget estimates by the organization with a growth rate of about 12% factored over the Revised Estimates for 2008-09. In this analysis, working capital required for the next 2 years is projected. Here the working capital is projected based on estimated future sales that in turn is derived by experience. The projected Working Capital of Rs. 1878.90 lac. and Rs. 2045.31 lac. for the next two years is required because of expected increase in sales. The projection of Rs.1878.90 lac. and Rs. 2045.31 lac. indicates increase in working capital due to increase in production and in sales. Most of the production and other operational requirements like utilities and repairs and maintenance are made by the company out of working capital. So increase in sales will result in increase in the amount of working capital demands also. Thus the regression analysis estimates a higher quantum of working capital (net) for the organization for the coming two years 2008-09 and 2009-10.

Trend Analysis

PARTICULARS Sales PBIT Interest Depreciation PBT PAT Current Assets Current Liabilities Working Capital Net Fixed Assets Capital Employed Net Worth Debt Equity EPS Dividend (%) Dividend Amt

Interpretation

2003-04 100 100 100 100 100 100 100 100 100 100 100 100 100 100 25 100

2004-05 87.95 77.80 97.44 77.45 60.29 52.04 87.40 99.32 79.41 97.46 88.85 83.61 131.18 52.13 20 80.43

2005-06 120.99 213.21 81.13 99.99 330.98 247.40 117.01 164.30 85.29 102.36 94.17 104.80 164.52 247.38 35 140.76

2006-07 132.85 221.97 35.60 115.12 388.16 326.76 112.85 160.13 81.13 220.37 149.12 130.45 158.06 327.16 50 200.97

2007-08 228.47 390.94 119.17 205.21 633.27 487.60 200.22 288.54 140.96 288.19 217.55 162.34 129.03 488.19 120 482.35

(i)

The sales have continuously increased in all the years except 2008. The percentage in 2008 is 228 as compared to the base of 100 in 2007. The increase in sales is quite satisfactory.

(ii)

The earning has increased substantially in the year 2007 and 2008. This is due to increase in value at production and higher demand for the product.

(iii)

Dividend has been increasing continuously from the year 2007 to 2008 except 2008. There is a decrease in the year 2008 that was due to decrease in earnings. Dividend payment at HELIOS show a good track record and shown an increasing trend for the forth coming year.

(iv)

The profitability of the company has increased manifold as evidenced by the absolute numbers of PBT and PAT. The PBT is at 633% and PAT at 487% over the base year figure of 2007.

(v)

There is a sharp increase in the working capital limits. The net working capital was Rs.15.21 lakh for 2005 as against 10.79 lakh for 2007 which is140% of the base year figure.

(vi)

The long-term borrowings of the company stand at Rs.30 lakh. Out of this the company has availed about Rs.18 lakh as of December 2008.

(vii)

The working capital limit has been pegged at Rs.1500 lakh which is mainly funded by the SBI and consortium of other banks.

(viii) The debt equity was at its best in 2007 started slowly moving unfavourably due to huge borrowings resorted. As of 2008, it stood at 1.20 which is anyway a better figure considering the massive expansion programme.

(ix)

The EPS has shown remarkable recovery and improvement and it was Rs.40.08 for 2008 as against Rs.8.21 for 2007, which is about 488% over the base year figure.

(x)

The company has been aggressively pursuing the dividend policy decisions and it declared a whopping 120% dividend for 2007-08 entailing an outgo of Rs.178.71 lakh which was equivalent to a payout of about 30%.

 Profitability indicates the efficiency and effectiveness with which the operations are being carried on. It has been found out that

the profitability and investments being made by the firm are sound and showing an increasing trend.

 The profits achieved by the company shows an increasing trend because of increase in sales and reduction in interest charges for funds borrowed by the company.

 The average collection period of the company is showing an increasing rend. This is because of rise in credit giving policy made by the company that is limited for up to 30 days.

 The average payment period is also started showing an increasing trend indicating delayed payment being made to the creditors. This indicates more time taken by the company to repay the suppliers. However, the payment period is extended up to 40 days

 The inventory turnover of the company is satisfactory. There is no holding up of inventory thereby saving interest on investment amount. This is because of implemented by the company.

effective production techniques

 The current financial position of the company compared to the last three years is decreased slightly, which should be taken note.

 The fixed asset of the company contributes more than 50% of the total asset position of the company. The company indicating good asset position of the company. The company has also got sufficient reserves and Surplus to meet the future financial contingencies of the company.

 The Debt- Equity position of the company is satisfactory but it increased slightly from the last year’s ratio. This is because of decrease in Current Liability of the Company.

 Though the liquidity position of the company is moderate, it showed an decreasing trend for the last two years. This is because of decrease in Other Current Assets of the firm.

 It is found that there is an increase in Reserves and Surplus Funds. The Total Resources of the company for the last five years is showing an increase in trend, which will contribute to a major extend for the company’s production purposes in future.

 There is a sudden decrease in the Cash Balance of the company in the year 2005-2006. The cash balance has increased in the year

2006-2007.this may be due to prudent investment/portfolio management being forwarded in the company.

 The Working capital position of the company is satisfactory. The working capital is decreased in the year 2003-2004 because of consistency in maintaining the required level of inventories.  The Working capital requirement of the company to carry out the production purpose is satisfactory and is not suffering from any inadequacy.  It is projected from Z-Score analysis that the company is financially sound in the year 2005-2006. In the year 2006-07, it started showing slightly decreasing trend. But in the current year it started increasing.  It is projected from Operation Cycle the rotation of Debtors and Creditors are within the acceptable time period. The Duration of Operation Cycle and operating Cycle in Times is moderate.  The Fund Flow Analysis reveals that the Total Sources position of the company is satisfactory and enough to meet the future requirements of the company to carry out its activities.  The Common Size Balance sheet shows a decreasing trend in Current Assets and Current Liabilities of the firm indicating changes in policies of repayment made by the company.  It is projected from Trend Analysis that the sales trend of the company for the last 5 years is satisfactory. This analysis is

showing a decreasing tend in all aspects such as Earnings before Interest and tax, Profit After tax, total assets, Net worth and Dividend.

 It is projected from Regression Analysis that there will be a decrease in profits for the forthcoming year. This may be due to changes in Government Policies and wide fluctuations in raw material Prices etc. Due to sample constraint, this analogy may not however be sustainable.  It has been found out that overall solvency position of the company is satisfactory and it shows an increasing trend. This indicates the enhancement of credit worthiness of the company.

 The company may try to reduce the Inventory Turnover Period by using the Inventory Management techniques such as EOQ and ABC analysis.  The payment policy adopted by the company to the suppliers can be reviewed. This may result in saving of considerable amount of interest further from 6.3% on long-term loans.  The credit policy given can also be reviewed so that considerable amount of funds may not and up locking in debtors. This will result in increase of cash balances of the company.  Effective Costing Techniques may be implemented to control the operating expenses incurred by the company.  Effective measure have to be carried out to resume the export of products for the current year, which will add further sophistication and low cost techniques of production.  The company may maintain the same Debt-Equity ratio in the future. So that I can increase EPS.  For their new products. It is better to choose different debt mix that is cheaper. An alternative proposal of External Commercial borrowings will be cheaper for the company based on terms and conditions of the foreign fluctuations etc.

 There has been slightly decreasing trend in the financial soundness of the company in the near future. Effective steps should be taken to find the root cause and control it.  The solvency position of the company can be further improved by arresting the borrowings made by the company. If the steps were not taken, this may affect the long-term credit interest of the company.

 To conclude that, Helios Solutions Limited has mobilized the funds in the same manner the funds are invested productivity in the capital asset as well as working capital. There is a sudden increased in market price during the year 2005-2006 which is because of better control from top-level management.  The company has a high operational efficiency, the profits for the company has increased over the past years which proves that the company has taken measure to generate profits by improving its capacity utilization which would maximize the generation of resources for expansion, growth and diversification.  There is a sudden increase in market price during the year 20052006

which

is

because

of

better

control

from

top-level

management.  To end with, I conclude that if the company takes the above actions as suggested, the company would remain no one leader in the Industry in future, with its excellent past records.

 T.S. Reddy and Y. Hari Prasad Reddy, Financial and Management Accounting, Margham Publications, 2005.  ICFAI. Financial Management, ICFAI, 1998.  Center for monitoring Indian Economy, Journal, December 2004.  C.R Kothari, Research methodology, Warsaw Publications, 2005.  Dr. S.N. Maheswari, Principles of Management Accounting, 11th edition, Sultan Chand & Sons, New Delhi, 1996.

Websites: 1. www.heliossolutions.biz 2. www.indiainfoline.com