A PROJECT REPORT ON SUMMER TRAINING AT USHA MARTIN LTD. TATISILWAI, RANCHI, JHARKHAND
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The basic idea behind selection of this topic is mainly due to its nature and importance in overall financial management of any organization.
One of the most important areas in the day to day management of the firm is the ascertainment of working capital. Working capital Ascertainment is the functional area of finance that covers all the current accounts of the firm. It is concerned with management of the level of individual current assets as well as the management of total working capital.
Primary function of financial management is not only procurement of fund but also their effective use with the objective maximizing the owner’s wealth. The allocation of funds, therefore, is an important function of financial management.
Usha Martin Limited, together with its subsidiaries, engages in the manufacture and sale of steel products in India and internationally. The company offers steel wire rods, rolled products, billets, pig iron, and allied products; wire and wire ropes products, such as steel wires, strands, wire ropes, cords, and bright bars; and related accessories, including wire drawing and allied machines, as well as jelly filled telecommunication cables. It provides coil and bar products for wire rods and straight length applications; ropes for aerial, crane, elevator, engineering, fishing, mining, titan oil field, shipping, structural, and flexi and fancy fence applications; and wire and strands for power, construction, automobile, general engineering, and binding/stationary applications. The company also offers structural products for suspension bridges, cable stayed bridges, tower guy strands, suspended roof structure, boom pendants, and architectural applications, as well as track ropes for bulk material handling systems, and fine and conveyor cords. In addition, it provides general engineering slings, sugar slings, pendant lines, grommet slings, cable laid slings, structural slings, decorative slings, mooring lines, multi legged slings, stainless slings, flemish eye slings, and hand spliced slings, as well as slings with mechanical splicing with ferrule and steel sleeves. The company was founded in 1961 and is based in Kolkata, India. Usha Martin Limited is a part of the Usha Martin Group.
With local success come global aspirations. Currently, the company has overseas manufacturing operations in Thailand, UK and Dubai. Besides a vast network of distribution centres and marketing offices spread across the globe to support an ever growing worldwide customer base. The company exports over 60% of the wire rope output and about 20% of the total wire rods produced.
Usha Martin’s future plans are focused on its operation in Jharkhand – a state rich in mineral resources. Future priorities include product mix enrichment, cost reduction and infrastructural improvements. Already flourishing in its recent foray into mining operations, the company is planning to invest in its iron ore and coal mines, sinter plant, pellet plant, power plants, while also enhancing its steel making and value added products capacity with an investment of Rs 2,100 crore.
But what set Usha Martin apart is its unwavering commitment to social responsibility. For over three decades the company has invested ample man-hours and capital on community development projects for integrated prosperity in rural Jharkhand, through a CSR arm, Krishi Gram Vikas Kendra (KGVK).
INVENTORY MANAGEMENT: -
Inventory consists of raw material, semi-manufactured products and completely manufactured products. It has been defined by the Accounting Principles Board as “The aggregate of those items of tangible personal property which (a) are held for sale in the ordinary course of business, (b) are in the process of production for such sales, or © are to be currently consumed in the production of goods or services to be available for sale”.
Every firm invests a huge amount to maintain a certain level of inventory, or say stocks. Thus a large portion of working capital is involved in stock. On an average, inventories are approximately 60% of the total current assets in public limited companies in India.