Professional Documents
Culture Documents
As Timul Sudha Dairy Muzaffarpur Does not want to raved its secrecy so
gatheration of data from them was very difficult.
Chapter -2
Introduction of the Organisation
(i)
(ii)
(iii)
(iv)
Brief History
Company Profile
Record Achievement
Operating Division
Dairy technology has been defined as the branch of dairy science, which deals with
the processing of milk and the manufacture of milk products on an industrial scale.
In developed dairying countries such as USA where as the rural area were identifies
for milk production, the urban centres where selected for the location of milk
processing plants and products manufacturing factories. These plants and factories
their rapidly expanded and modernised with improved machinery and equipments
to secure the various advantages of large scale production. India has highest
livestock population in the world with 50% of buffalos and 20% of worlds cattle
population. Most of these are milk cows and milk buffalos, Indias dairy industries
is considered as one of the most successfully developed industry from the post
independence period. Dairy industry is dominated by the cooperative sector , about
60% of the installed processing capacity is in the cooperative sector.
Dairy cooperative account for the major share of processed liquid milk marketed in
India. Milk is processed and marketed by 170 milk producers cooperative union,
which federate into 15 state cooperative milk marketing federations. Prominent
state in producing dairy product are; Uttar Pradesh, Punjab, Haryana, Rajasthan,
Gujarat, Maharashtra, Andhra Pradesh, Tamil Nadu, and Karnataka. In India,
dairying has been practised as a rural cottage industry since the remote past. The
high cost of Milk production, problem of sanitation etc., restricted the practice; and
gradually the family cow in the city was eliminated and city cattle were all sent
back to the Rural areas.
The Indian dairy industry has made rapid progress since independence. A large
number of modern milk plants and products factories have since been established.
These organized dairy have been successfully engaged in the routine commercial
production of pasteurized bottled milk and various western and Indian dairy
product. With modern knowledge of protection during transportation, it became
possible to locate dairies where land was less expensive and crops could be grown
more economically. In India, the market milk technology may be considered to
have commenced in 1950, with the functioning of The Central Dairy of Aarey milk
colony, and milk product technology in 1956 with the establishment of AMUL
Dairy, Anand. More than 2,445 million people economically active in agriculture in
the world, probably 2/3or even more than of them are wholly or partly depended
INSTITUTE OF ADVANCED MANAGEMENT AND RESEARCH GHAZIABAD [Page 8]
on livestock farming. India is endowed with rich flora & fauna & continues to be
vital avenue for employment and income generation, especially in rural areas.
India, which is 66% of economically active population, engaged in agriculture
drives 31% of Gross Domestic Product (GDP) from agriculture. The share of
livestock product is estimated at 21% of total agriculture sector.
As per the livestock Census 2003 (Annex 03), the milk population animal of
the milk shed is around 11 lakhs consisting of some 0.98 lakh local cows,
about 4.75 lakh cross bred cows and some 5.45 lakh buffaloes.
Agriculture is the mainstay for the majority of the population in the milk shed
area, with dairying being a subsidiary occupation for mall and marginal
farmers. The milk shed has a total number 8171 inhabited villages, thus it has
covered only about 19% of the villages in the milk shed area. The total DCS
organised by union are 1710 and of these 1023 are functional, which forms
60% of the organised societies.
The total milk production in the milk shed is estimated (based on ISS survey
2008-09l) at 25.07L kg PD with marketable surplus of about 16.38L kg PD.
During 2008-09, unions milk procurement was 45.9T kg PD which is
approximately 2.85 of marketable surplus. The milk trade in the milk shed is
dominated by small dairies in the unorganised sector, selling unprocessed loose
milk.
Infrastructure:The milk union has a rated capacity of 1 LL Pd and 10 MTD powder plant
which is being presently operated at 84% capacity utilization. The union has 7
chilling centre at Sitamarhi (20000 LPD), Sheohar (4000 LPD), West
Champaran (4000 LPD) & East Champaran (20000 LPD), Siwan (4000 LPD),
Gopalganj (4000 LPD) and Sahibganj (4000 LPD) with a combined capacity
of 60 TLPD. In addition, 14 bulk milk cooler have been installed in the milk
shed at village level with combined capacity of 28.5 litres.
Physical Performance:The detail of physical progress along with year-wise milk procurement of the
union for last five year are given below:
Table 2.1:-
Parameters
2010-11
2011-12
2012-13
2013-14
2014-15
DCS Organised
DCS functional
Farmer member
Women member
Pourer member
Milk procurement
Societies (000 Kg PD)
Other unions (000 Kg
934
745
42275
7797
28280
1109
834
46910
8467
30010
1324
851
52395
9173
29195
1500
845
67055
11615
35545
1710
1023
7644
13148
42891
77.77
87.43
53.67
45.9
84.7
2062.76
4273.86
1085.62
7169.95
580.65
6580.31
226.57
6362.25
354.13
PD)
Cattle feed sold (MT)
Bypass Feed Sale (MT)
The union sells liquid milk in three variants viz. Standard milk and Toned milk
and Full Cream milk in Muzaffarpur, Sitamarhi, Bettiah, Siwan, Motihari, and
Gopalganj. The major competitors in the organized sector is Raj dairy who
have a share of 1000 LPD. Details of average milk and milk product is as
under :
Parameters
Liquid Milk (TLPD) in
pouch by union
Ghee (MT)
Table Butter (MT)
Lassi (MT)
2010-11
2011-12
2012-13
2013-14
2014-15
53.20
55.97
62.19
73.82
83.23
145
47.6
88
197.6
41.38
727.99
104.3
25.2
752.664
86.7
20.4
977.30
196.8
18.5
1360.8
Financial Performance :The annual turnover of the union during 2009-10 was Rs 10528.55 lakh and it
posted a net profit of Rs 438.62 lakh.
The year wise financial performance in last five year is given below:
Table 2.3:- Financial Performance
(RS in Lakh)
Parameter
Sales (Milk,
2010-11
2011-12
2012-13
2013-14
2014-15
Milk Product
4197.04
5188.81
53334.58
6766.07
10528.55
and feed
Net
5.74
-45.12
-45.12
181.44
438.62**
profit/loss
Share capital
144.14
150.54
154.51
157.87
157.87
The union has availed financial assistance of Rs 60.26 Lakh and Rs 90.16
Lakh as loan under OF-II and OF-III respectively from NDDB and Rs. 167.60
Lakh was released as grant under OF-II/III.
The union has refunded loan taken from NDDB.
Board of Union:The union has an elected board consisting 10 elected farmers representatives
including one lady director, two nominees of the state government and four
official nominees (one each from RCS, NDDB, Milk-Federation and
Managing Director of the union). The list and profile of the elected board
members is furnished in.
Concerns:1. The competitors in the unorganised sector in the area have stepped in and
started doing milk procurement. The loyalty of the milk producers during
the flush and lean season in milk procurement is the issue of concern.
2. The existing plant and machinery of dairy plant is old and needs
repair/refurbishment in various areas. Some equipment not functioning to
the rated capacity and require replacement/repair for the efficient operation
of improved hygiene or safety. Although steps have been initiated.
3. The plant area designed for only 25000 LPD handling.
By
Milk Frame
Village Milk Co-op Soc. (Collection centre)
Chilling centre
Raw milk Reception Dock (RMRD)
Milk processing Plant
Powder Section
Storage
Dispatch
Figuration
Distribution channel
INSTITUTE OF ADVANCED MANAGEMENT AND RESEARCH GHAZIABAD [Page 14]
Consumer
STATEMENT OF PROBLEM
Financial information provided in financial statement is useful in business
decisions. However, it must be noted that financial statement are means not to an
end in themselves. Thus the use of financial statements in decision making is not
always easy owing to the following problems:
1. In view of the summarized nature of the information contained in financial
statements, they need to be analyzed and interpreted by mean of financial ratios
to enable management and stakeholders understand them and make wellinformed business decisions,
2. Many user dos financial statements are nit knowledge about working capital
and how the working capital can be applied to financial statement to aid
decision-making.
3. Despite the immense benefits of ratio analysis, there are a lot of weaknesses or
limitations associated with its use.
In view of the above stated problem, this research is embarked upon to identify
the proper use of financial ratios, and the roles ratio analysis plays in business
decisions.
Financial analysis
Introduction
Financial management is the part of the managerial activity, which is concerned
with planning, and controlling of the firms financial resources. It is an applied
branch of general management it has to plan to organise and control the finance
of the enterprise. Chief duties of financial management are planning and control
of corporate finance. Financial management is called upon to take three major
decisions viz. Investment decision, Financial decision, and Individual decision.
Financial management involves the implementation of these three decisions it is
an integral part of overall management rather than merely a staff activity
concerned with fund raising operations without sound management of financial
resources, business cannot achieve its objective and may occur heavy losses.
Thus financial management in charge of efficient planning and control of the
cycle of flow of funds inflow and outflow of funds.
Fig 5.1:- Structure of Finance Management
Board of Directors
Chief Executive Officer
Vice president
Marketing
Treasure
Vice president
Production and
Operation
Controller
Duties
Duties
Taxes
Financial statement
Cost accounting
Data processing
budget head description in a form. Sudha dairy wants to track and implement
budgetary controls while making expenditure.
Sudha dairy has limited exercise towards allotment and structuring of cost code,
sub code and purpose code according operation classification. As sales are more
or less regulated, a more system orientation is adhered to in drafting cost
budget. The code allocation practice is on to allot the codes based on direct cost
and to the sub division or activity the codes are both all allotted to process and
product. In case of stores stock transfer is booked to stock ledger code and
subsequent issues and consumption are booked to cc/sc/pc. In case of finance
and accounts, situation is different in cash where the tally accounts and budget
code are some and in circumstance where they are different. In case where they
are different the budget accounting system codes are input against each account
conversation to BAS Codes occur where they same.
Budget is tracked against the cost centres and sub centres are defined with the
responsibility centre but currently the responsibility centres are not in use the
stores consumption tracked till the cost centre and sub centre level at the time of
consumption itself for other expenses the cost centre and sub centre are entered
to categories the expenses after exporting them into on oracle based system
from the tally system for the purpose of tracking. A quarterly budget review
report is prepared depicting the quarterly budget amount actual expense and
variance figures along with the cumulative figures.
Statutory Budget
it is required to be prepared by Sudha Dairy under the co-operative act this
budget is prepared annually and approved in the annual general matting as
according to the law and including in the annual report this budget in is
prepared by the internal audit department. The budget is internal to Sudha dairy
and not presented in the board AGM.
The budget is prepared by seeking the budget amount from all the department
by giving the respective budget heads pertaining to the specific department for
aiding the department to prepare the budget. The relevant previous wears
expenditure is also given to them from the trial balance if required the detail
INSTITUTE OF ADVANCED MANAGEMENT AND RESEARCH GHAZIABAD [Page 18]
Capital Structure
Capital is the one of the most important factors of production without capital
organisation cannot production or other type of activity. Capital includes share
capital reserve and surplus and long term liabilities. The authorised share
capital of the dairy is 2,00,000 shares of Rs. 100 each and the capital is Rs.
200,00,000.
Share Capital
Amount (In Rs.)
Table 5.1:- share capital
Year
Share capital
2012-13
Sagar
25,000,0000
2013-2014
Sudha dairy
30,00,0000
Sagar
250000000
Sudha dairy
30000000
INTERPRETATION
Share capital is the amount contributed by shareholders towards the companys
capital and is entered in the companys share capital account. It is the capital of
the company represented by the shares. In the table we can see that there is no
change in capital year 2009-2010 and 2010-11. So from the above graph we can
analyses that in the no change in the share capital of the company, this is
because that Sudha dairy is the co-operative milk producer so their share holder
are only milk producer farmer thats why no significant change in the share
capital. And the Sudha dairy are contributes 2 cr. From the share holder. Sudha
dairy has not a much stake holder as compare to the Sagar dairy. Sagar dairy
have some more share holder from the sudha dairy. So we see that Sagar dairy
have some more financial leverage as compare to the sudha diary. That is not
good for the any firm because the responsibilities are increase for him.
Year
Reserve and Surplus
Sagar
2012-13
Sudha dairy
28,35,00,000
7,68,4,826.95
Sagar
2013-2014
Sudha dairy
39,92,00,000
27,18,19,603.23
INTERPRETATION
From the above table we can know the actual trend of the reserve and surplus of
the company firm.
For Sagar Dairy:- Compare with base year indicates that the reserve company
gradually increasing which shows the strong financial position of the company.
Companys reserve and surplus has increase by 362.57cr. after one year
company is managing well with this source thus rely less on other financial
sources like share capital and loans. We easily decided that the Sagar dairy
management very well in the finance factor, so that they have very good
financial position.
For Sudha Dairy:- In the above Balance sheet we clearly see that Sagar
reserve and surplus are increase highly but they should maintain consistent in
all year. So we many comparison between the two dairy we clearly decide that
Sagar dairy is financially good than Sudha diary.
Year
Loan and Advances
2013-2014
Sagar
Sudha dairy
Sagar
Sudha dairy
30,03,93,847
16,37,53,048.57
53,14,48,223
8,66,52,088.05
Interpretation
Here loans and advances saw the firm current assets. The firm should give some
advance payment for their responsibilities. And some loans give to their
branches for improvement. So the loan & advances come under current assets.
For Sagar Dairy :- in the above table we clearly mention that management
should give loans and advances in every year & that was increase in every year.
But in the current year there is a huge increment in the loans and advances.
For Sudha Dairy :- in the above table we clearly mention that management
should give loans and advances in every year and that was increase in every
year.
Sagar
2012-13
Sudha dairy
29,44,992.51
13,0911.53
Sagar
2013-2014
Sudha dairy
2,34,65,619.63
,15,05,388.11
Sagar
2012-13
Sudha dairy
84,43067.83
9,63,853.99
Sagar
2013-2014
Sudha dairy
57,13,63,017
1,44,36,462.84
INTERPRETATION
Debtors refers the current assets in the firms. When the debtors is very high
then say that the firm business on the credit base. If the debtors are very high
then affected to the firm.
Chapter -3
A Theoretical aspect of Working Capital
Management
(i) Concept of Working Capital
(ii) Importance of Working Capital
(iii) Working Capital Policy
liabilities.
working capital policy refers to the firms policy regarding.
(i) Target levels for each category of current assets and
(ii) How current assets will be financed.
Objective of Working Capital Management :The firms policies for managing its working capital should be designed to
achieve four goals.
(i)
(ii)
(iii)
marginal return on investment in these assets is not less than the cost
of capital employed.
The basic objective of working capital management is to manage the
(iv)
firms current assets and current liabilities in such a way that the
satisfactory level of working capital is maintained. i.e. it should
neither inadequate nor excessive.
(i)Concepts of working capital :Introduction:The total investment in a business organization as characterised by total
assets is called capital. The term capital refers to the total property of
assets owned and control by the business in order to earn profits. The total
assets comprise fixed assets and current assets. Fixed assets are tangible
assets, which we can touch. These assets are not for the sale purpose and
earring cash by conversion. Apart from this these assets are held by the
organisation for long term purposes or till the date of winding up the
INSTITUTE OF ADVANCED MANAGEMENT AND RESEARCH GHAZIABAD [Page 27]
organisation such assets which comes under the fixed assets can be cited as
land & building, plant & machinery, furniture and fixtures, etc.
While on the other hand, the current assets are reasonably expected to be
realised in cash or sold or consumed in cause of normal operating year or
business cycle.
The current assets are required with the intension of running organisation.
Smoothly by selling or converting in to cash, current assets can cited as
cash, inventory, debtors, short term securities bill receivables etc.
The management of fixed as well as current assets, however, differs in
three ways: While managing fixed assets time considered very important factor.
As a result of this, compounding and discounting techniques play a
key role in capita budgeting and a minor in the management of
current assets.
commitments.
Sense of security and confidence.
Solvency and continuous production.
Sound good will and it is possible only when payment is made
quickly.
Distribution of dividend :For the distribution of dividend there is need of cash to be
distributed to the shareholder. This cash can be utilised from
working capital.
Exploitation Of Good Opportunity :Organisation can not avail or take advantage of good
opportunity without having working, capital. So it is
Restrictive policy :-
Under this policy the investment in the current assets is made law. It
means that the firm keeps a small level of balance of cash and
Production policy
Nature of the business
Length of the manufacturing process
Credit policy
Rapidity of turnover
Seasonal fluctuation
Fluctuation of supply
Operating efficiency
Price level changes ]
Working capital or operating cycle
The above points can be described in such a way that :(i) Production policy :The decision of the management regarding automation etc, will have its
effect on working capital requirement. If the organisation is labour
intensive then for the organisation requirement of working capital will
be more. Hence the production policies, which is generally pursued by
management have significant effects on the business.
(ii) Nature of Business :Working capital requirement also depends upon the nature of business.
If we consider the working capital requirement of Railway, Electricity.
INSTITUTE OF ADVANCED MANAGEMENT AND RESEARCH GHAZIABAD [Page 33]
(iii) Length of Manufacturing process :Longer the manufacturing process, the higher will be the requirement
of working capital and vice versa.
(iv) Credit Policy :If a firm is supplied raw material by the supplier on the basis of liberal
credit policy then firm will in position to maintain low working capital.
It means that working capital requirement for a firm becomes low hence
working capital requirement depends on credit policy.
(v) Rapidity of Turnover :There is high degree of co-r-relation between the quantum of working
capital and the speed with which the sales are affected. A company as
compared to a company that has a lower turnover.
(vi) Seasonal Fluctuation :A number of industries manufacture and sale goods only during certain
seasons. For example, the sugar industry produces practically sugar
between December & April and hence the working capital requirement
of this industry will be higher during this period as compared to any
other period.
(vii) Fluctuation of supply :Certain company have t5o obtain and maintain large reserve of raw
material due to their irregular sales and intermittent supply. This is
particular true in case of company requiring special kind of raw material
available only from one or two source. In such a case large quantity of
INSTITUTE OF ADVANCED MANAGEMENT AND RESEARCH GHAZIABAD [Page 34]
(viii) Operating efficiency :The operating efficiency of a firm relates to the optimum utilization of
resources at minimum cost. The firm will be efficiently contributing in
keeping the worki8ng capital investment at a lower level if it is efficient
in controlling operating cost and utilising current assets. The use of
working capital is improved and place of cash conversion cycle is
accelerated with operating efficiency.
(ix) Price level changes :When the prices are rising, in general, high investment in working
capital required because the same level of current assets would need
increased investment due to rise in price. But if the firm is able to rise
the price of its product upward, it may not be compelled to increase the
level of working capital in the period of rising prices. But all concern
may not full the impact of prices level changes upon working capital
level to the same extent magnitude.
(x) Working Capital operating cycle :In a manufactory concern, the working capital cycle starts with the
purchase of raw material and ends with the realisation of cash from the
sale of finished products. The involves purchase of raw material and
store, its convention of finished goods through work- in- progress with
progressive increment of labour & service casts conversion of finished
stock into sales debtors & receivable and ultimately realisation of cash
and this cycle continue gain from cash to purchase of raw material and
so on.
Statement
showing
working
capital
requirements
(A) Current Assets
Amount (Rs)
--------------
--------------
--------------
(c) Overheads
--------------
--------------
--------------
(b) labour
--------------
(c) Overheads
--------------
--------------
(b) labour
--------------
(c) overheads
--------------
--------------
--------------
-------------
-------------
(C) Project balance sheet Method :Under this method, estimates, of different assets (excluding cash) and
liabilities are made taking into consideration the transaction in the ensuring
period.
Raw material consumption per day is given by the total raw material
consumption divided by the number of days in the year. The raw material
conversion period is obtained when raw material inventory is divided by
raw material consumptions per day, similar calculations can be made for
other inventories, debtors and net operating cycle is also referred to as cash
conversion cycle. Depreciation and profit should be excluded in the
consumption of cash conversion cycle since the firms has to ultimately
recover total costs and make profits. Therefore, the calculation of operating
cycle should include depreciation and even the profits.
Also, in using the above mentioned formula, average figures for the period
may be used.
Impact of inflation on Working Capital :The factor of inflation usually contributes to a two pronged attack on
working capital. The first is the increase in the selling price that will be
passed on to the consumer. Looking at the first point will notice that, in a
containing spiral of inflation, to buy the same quantity of goods will require
more cash. In fact an additional portion of gross profit has to be allocated to
the repurchase of stock.
Example 1
Day 1
Buy 100 bags at Rs 1 each ( Rs 100)
Day 30
Sells 100 bags at Rs 2
each
(Rs200)
Now
of
repurchases
new
Rs
100(initial Investment +
Rs 20 gross profit)
INSTITUTE OF ADVANCED MANAGEMENT AND RESEARCH GHAZIABAD [Page 39]
One might, at this point, say that the owner will cover himself by increasing
his own prices but in many cases this increase in price may :
1. Make him uncompetitive
2. Decrease the demand for the product
3. Bring a substitute product into contention
Day30
Day60
Sell 100 bags (Rs 200) buys Sell 70 bags at Rs
(Rs 100)
100 bags (Rs 120) profit after 2.40 each (Rs 168)
repurchase = Rs 80
buys 70 bags at Rs
1.30 each
A probable consequence is that purchase cost more and consumers buy less
so that profits already diminishing the need to finance inflated purchases
are vulnerable to an absolute drop in turnover. This, in turn, has
consequence for the need to say above break even point and contribute
towards the fixed costs (fixed cost stay constant irrespective of level of
sales). Not understanding the impact of inflation on working capital has
been the cause of many business failures.
*************
Chapter - 4
Data
Analysis
and
Interpretation
(1)
Current Assets
Current
Net Working
2012-13
247104262.26
Liabilities
288343507.01
Capital
4123944.75
2013-14
252592237.58
358000402.80
105408165.22
Ratio Analysis
Ratio analysis is powerful tool of financial analysis. Alexander Hall first
presented it in 1991 in Federal Reserve Bulletin. Ratio analysis is a process
of comparison of one figure against other, which makes a ratio and the
appraisal of the ration of the ratios to make proper analysis about the
strengths and weakness of the firms operation. The term ratio refers to the
numerical or quantitative relationship between two accounting figures.
Ratio analysis of financial statements stands for the process of determining
and presenting the relationship of items and groups of items in the
statements.
Note :- I have used the ratio analysis in the project in order t substantiate
the managing of working capital. For this, I used some of the ratios to get
the required output.
(i)
Liquidity Ratio
Liquidity ratio to the ability of a firm to meet its current obligations as and
when these become due. The short-term obligations are met by realizing
amounts from current, floating or circulating assets.
Following are the rations which can help to assess the ability of a firm to
meet its current liabilities.
(a) Current Ratio
(b) Acid test ration/ Quick ratio/ Liquidity ratio
Absolute liquid ratio
Current Assets
Current Liabilities
Year
Current Assets
Current Liabilities
Current ratio
2012-13
247104262.26
288343507.01
0.86
2013-14
252592237.58
358000402.80
0.70
(b) ACID TEST RATIO/ QUICK RATIO/ LIQUIDITY RATIO :This ratio establishes a relationship between quick/liquid assets and current
liabilities. It measures the firms capacity to pay off current obligations
immediately. An asset is liquid if it can be converted in to cash immediately
without a loss of value; inventories are considered to be less liquid. Because
inventories normally require some time for realizing into cash. This ratio is
also known as acid-test ratio. The standard quick ratio is 1:1. Is considered
satisfactory.
(c) Absolute Liquid ratio :Absolute liquid ratio may be defined as the relationship between absolute
liquid assets and current liabilities. Absolute liquid assets include cash in
hand and cash at bank.
Cash & Bank Balance
Absolute Liquid Ratio :Current Liabilities
Year
2012-13
2013-14
(ii)
Cash &Bank
Balance
1309114.53
11505388.11
Current
Liabilities
288343507.01
35800402.80
Absolute Liquid
Ratio
0.005
0.32
(a) Inventory Turnover Ratio :Inventory turnover ratio is the ratio, which indicates the number of times the
stock is turned over i.e., sold during the year. This measures the efficiency
of the sales and stock levels of a company. A high ratio means high sales,
fast stock turnover and a low stock level. A low stock turnover ratio means
the business is slowing down or with a high stock level.
Net Sales
Inventory turnover Ratio :Closing Inventories
Closing
Inventory Turnover
Inventory
Ratio
1745700883.61
193916351.72
9.00
2298123010.73
150850625.07
1523
Year
Net sales
2013-13
2013-14
Average Debtors
Year
Net sales
Average Debtors
Debtors
Turnover Ratio
2012-13
2013-14
1745700883.61
2298123010.73
963853.99
14439462.84
1811
159
This ratio indicates the number of times the working capital is turned over
in the course of the year. This ratio measures the efficiency with which the
working capital used by the firm. A higher ratio indicates efficient
utilization of working capital and a low ratio indicates otherwise. But a very
high working capital turnover is not a good situation for any firm.
Net Sales
Net working Capital
Year
Net Sales
Net Working
Capital
WCTR
2012-13
1745700883.61
41239244.75
42.31
2013-14
2298123010.73
105408165.22
21.80
Chapter - 5
Findings
Conclusion & Suggestion
Findings
suggestion
INSTITUTE OF ADVANCED MANAGEMENT AND RESEARCH GHAZIABAD [Page 48]
Working capital of the company has increased every year. Profit also
increasing every year this is good sign for the company. It has to
maintain it further, to run the business long term.
The current and quick ratio are almost down to the standard
requirement. So the working capital management of Sudha dairy is nor
satisfactory and it has to increased further.
The company has not sufficient working capital and has not better
liquidity position. By efficient utilising the short-term capital, them it
should decrease the turnover.
The should take precautionary measures for investing and collecting
funds from receivables and to reduce the bad debts.
The company is utilising working capital effectively this is not good for
the company. It has to increase it further.
CONCLUSION
The study on working capital management conducted in Sudha dairy to
analyze the financial position of the company. The companys financial
REFERENCE
Books
Management Accounting by Dr. S.P. Gupta
I.M Pandey Financial Management. Vikas Publishing house Pvt.
Ltd. 8th edition.
Nrayanaswamy, Financial Management Theory & Practice 3 th
edition.
Prasanna Chandea Financial management theory & practice 7 th
edition.
Website
www.Sagar .com
www.cmmf.com
www.dudhSagar dairy.com
www.amul.com
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