Professional Documents
Culture Documents
SUBMITTED BY
Yesha tandon Roll no:-90372233838
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DECLARATION
I hereby certify that the work which is being presented in the project entitled A SURVEY ON WORK LIFE BALANCE AT NATIONAL FERTILIZERS
LIMITED, NANGAL UNIT in partial fulfillment of requirements for the
award
of
degree
of
M.B.A.
submitted
in
the
DEPARTMENT
OF
under Punjab Technical University, Jalandhar is an authentic record of my own work carried out during a period from 1ST JUNE 2010 to 15TH JULY
2010 under the supervision of Dr.Sukhdev singh. The matter presented in
this project has not been submitted by me in any other University / Institute for the award of M.B.A. degree. Signature of the student
This is to certify that the above statement made by the candidate is correct to the best of my knowledge.
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Department of Management GNDEC, LUDHIANA
PREFACE
For management careers, it is important to develop managerial skills. In order to achieve positive and concrete results, along with theoretical concepts, the exposure of real life situation existing in a corporate world is very much needed. To fulfill this need, this type of practical trainings required. I underwent summer training in VERKA MILK PLANT, located in Gurdaspur. It was my fortune to get training in a very healthy company. I got great opportunity to view the overall working of the organization. In the forthcoming pages, I have attempted to present a report covering different aspects of my training.
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ACKNOWLEDGEMENT
In a dynamic and complex industrial and marketing environment, theoretical Concepts and classroom, teaching is not enough to impart professional knowledge and skills to the future managers. In this regard, I feel quit indented to management department of GNDEC, LUDHIANA for providing me with tremendous skills and getting me exposed to the philosophies and psychologies behind the complex corporate world and marketing environment. Every venture is made success by active cooperation and the guidance of the people with it, which has forth coming in full during this project. Words cannot be justice to sort of cooperation at this study. So, I feel that this report would be incomplete without the thanking the people who helped me in completion of training and project report. First of all, I wish to express my sincere thanks to Mr.kuldeep Singh general manager for allowing me to undergo my training.
I am heartily to R.N Mahant manager of accounts for their sincere and devoted guidance during the training. I would also like to thank all employee of account department to complete this report.
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CHAPTER NO. 1. 1.1 1.2 1.3 1.4 1.5 1.6 2. 3. 4. 5. 5.1 5.2 5.3 6. 5. 6. 7. 8. 9. 10. Company profile Milk fed networks Introduction of milk plant Gurdaspur Financial working of plant Products of company Objectives of plant SWOT Analysis of plant Review of literature Objectives of study Research methodology Introduction to working capital Operating cycle of verka milk plant Sources of working capital Financial position of plant Ratio analysis Comparative analysis of balance sheet of plant Findings Recommendations Limitations of study conclusion Bibliography NAME PAGE NO. 6 7 8 12 14 17 18 20 21 22 24 25 28 29 30 36 45 46 47 48 49
COMPANY PROFILE
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The Punjab state cooperation milk producers federation Ltd. Popularly known as MILK FED PUNJAB came into existence in 1973. It was backed by twin objective of providing remuneration milk to the market. Although the federation was registered a lot earlier, it took the center stage of Punjab diary scenario in 1983 when all the milk plants of Punjab dairy development corporation Ltd. Were handed over to co operative sector and the entire state was covered under operation flood to give the farmer better value and customers better products.. The organizational set up of MILK FED is based on three systems:1. Milk producer co-operative societies at village level (primary cooperative societies). 2. Milk co-operative union of districts levels (unions). 3. Co-operative milk marketing federation as an apex body at state level (MILK FED).
MILK FED with its network of over 5000 village milk producer co-operative societies and three lacs milk producers from a strong network providing assured market to milk producers . MILK FED and its units have a workforce of about 5000 employees and also provide regular employment to as out 600 transporters.
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Bathind a Amrits er
Bassi pathan a
Chandiga rh
Ferozepu r Faridko t
Ropar
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MILK PLANT GURDASPUR HISTORY:Milk plant Gurdaspur, whose foundation stone was laid down by Sr.santokh Singh randhawa (Dairy Development minister of Punjab , 1983) commissioned by Punjab dairy development corporation in Aug.22nd, 1983. It is spread construction of the plant was begun in 1986-87 and it started working in 1986-87. It was registered under co-operative societies Act with Registration License No. 31/R-MMPO/93. There are three chilling stations working under this plant.
LOCATION:This plant is situated on the pathankot road, Gurdaspur. It is two kilometer away from railway station, Gurdaspur.
CAPACITY OF PLANT:The plant has capacity for handling of milk 100000 liters per day. The plant can handle milk procurement up 1.5 Lac Liters as per installed capacity .The milk plant can dry 1 lac Ltr liters of milk to milk powder and manufacture ghee @ 7 MT per day . The plant has capacity to receive 100 M.T. of cream in addition to milk but the average procurement remained 49000 kg throughout the year. Management is advised to make best efforts to achieve the full capacity target.
Year wise capacity utilization is as under:2004-05 53.30% 2005-06 46.82% 2006-07 45.62% 2007-08 51.95% 2008-09 58.56%
The total milk production in the milk shed is about 1439495 kg per day out of which about 863877 kg per day retained by the rural population as local consumption leaving about 575918 kg per day as marketable surplus for procurement by various parties involved in milk business in the milkfed .
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Product wise breakup of milk handled is as under:2004-05 City supply Milk transferred to other unions Ghee SFM Dahi Paneer Lassi 44% 29% 19% 5% 1% 1% 1% 2005-06 41% 28% 21% 7% 1% 1% 1% 2006-07 72% 1% 17% 6% 1% 1% 2% 2007-08 57% 2% 24% 12% 1% 1% 3% 2008-09 62% 1% 19% 11% 1% 2% 4%
CONTROLLING AUTHORITIES
The milk plant gurdaspur set up by Punjab government but in 1966 the controlled was passed on to Punjab Dairy Development co-operation and subsequently its management was passed to Milk Fed April 9, 1983. The Gurdaspur district cooperative Milk producer union Ltd was registered on April 28th union has started his business on July 1, 1988 with the complete control of plant to the union. Moreover all the assets and liabilities of Punjab Government and Punjab Dairy Development co-operation at the Milk Plant Gurdaspur were transferred to union April 1, 1994. The union has an elected board and managing director is on deputation from Milk Fed.
GOVERNMENT SUPPORT:Union finally functioned with share capital of Rs 10 lacs received from government which was later on enhanced to Rs 103 lacs. Under the operation flood, milk union, Gurdaspur has received plant and machinery, tanker and other assets on loan cum grant basis. A loan was given by National Dairy Development Board amounting to Rs 109.49 lacs (70% loan and 39% grant) in the year loan to meet its current obligation. The union gets timely fund availability of working capital loan.
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MILK PROCUREMENT AT MILK PLANT:The procurement system of this milk plant is well organized. Milk procurement is made through Milk producers co-operative societies which are spread over whole of the Gurdaspur. Under these societies, there are milk producer members. These members are chosen by village level societies from each village. These members choose a secretary who collect milk producers and sell to the plant and earn some percentage of commission. Milk is collected twice a day. Up to June 30.2002 milk plant Gurdaspur has 738 functional societies out which 493 are working. While collection of milk, the fat contents of milk are properly tested in order the check the quality of milk because the price is paid according to fat contents. CERBER & MILKOTESTS are the tests applied to test protein and fat contents in milk.
CHILLING STATIONS:There are six chilling center in addition to main situated at Tugalwal,Kalanour,Gho,Narot Jamil Singh, Batala and Jaurian kalan .But the milk was procured only through three centers namely ,Tugalwa, kalanour and Batala. The remaining three centers remained closed throughout the period under audit and have functioning for long time without machinery. The motive for opening these stations is to save the milk. The life of the milk is only five hours after it is collected. Some villages are more away from Gurdaspur plant and transportation times much higher than time. So these stations are opened to chill the collected milk so that the life of milk is increased against five hours.
MILKO TESTER
During the previous year milk plant purchased 25 milko testers for 630460.12 from M/S Rajasthan electronics LTD. 23 milko testers have been installed at different societies 2 milko testers at kalanour and batala MCC.
MILKING MACHINES:During the period under audit 18 milking machines have been purchased out of which 7 (MOBILE) for Rs 294000 & (FIXED) for Rs 368000 from M/S IDMC LTD and M/S vansun technologies , Noida 3 ( FIXED ) for RS 147000. Rate contract for supply of milking machine are made at head office level
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vide letter no PSF/CTIP-Milking Mac/28458-69 dated 24/10/2008 and 50% subsidy is given on fixed & mobile Milking machine by Punjab Government procurement and balance 50 % would be recovered from the societies at time of installations as described by Dy Manager procurement .So cost of one milking machine fixed is Rs 23000 and Mobile Rs 21000 purchased from M/S IDMC and cost of one milking machine fixed is Rs 24500 purchased from M/S VANSUN technologies, Noida 50% amount of subsidy received from Punjab government through Milked Punjab vide credit note No.89 dated 13/02/2009 for Rs 690000 and balance 50% have been deducted from milk bill by lik union.
TARGET AND ACHIEVMENTS:The detail of target and achievements of milk procurement for the period 2004-05 to 2008-09 are given below: Year 2004-05 2005-06 2006-07 2007-08 2008-09 Target 60000 50000 41000 46000 55000 Achievement 41435 42713 34597 38880 49000
As per above table of target and achievement shows big difference to achievement the target.
MANAGEMENT AND MEETINGS:The board of directors comprises of 16 members out of which 10 members are elected. Two seats remained vacant and Four are government
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nominees namely Milkfed, NDDB, and dairy development deptt. During the period under report 4 meetings of BOD were held.
FINANCIAL WORKING 1. AUTHORIZED SHARE CAPITAL RS.5 Crore The authorized share capital of the union has been enhanced to RS 5 crore vide annual general body meeting held on 28.12.1991 and 31.1.1997. The enhanced amendment has been registered by assistant register of cooperative societies Gurdaspur vide letter No 786-87 R.K.I/ARG dt 13.2.1998 in respect of Bye-laws No. 6 2. PAID RS 13276100.00 Sr No 1 2 Name of Holder MPCSs Punjab Government Total UP SHARE CAPITAL
During the period under audit there is an increase of Rs. 28000 in the share capital of societies. This increased share capital belongs to 28 commercial dairy farms. No share certificate issued to societies, dairy farms and Punjab government amount due for repayment to the government was not paid. The due amount should be repaid to the Government. During the period under audit no share certificates were issued to the member societies. The detail of membership is as under:GNDEC Page 13
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Sr.N Name of As on Addition Decrease As on o member 31.3.08 during the during the 31.3.09 yr yr 1. 2. 3. 4. MPCSs Nominal Pb.Govt Farms Total 355 65 1 _ 421 _ _ _ 28 28 77 _ _ _ 77 278 65 1 28 372
AND
Reserve
SURPLUS
Fund
The fund is created by charging depreciation on fixed assets. On some of the item, it has not been provided/charged in accordance with the provisions of income Tax as detailed below:Sr.N Head of Account o 1 2 Office and factory building Plant & Machinery, Electronic, Office equipment , Air cooling Vehicles Rate depreciation provided 5% 10% of Rate as per Income Tax Act 10% 15%
10%
15%
Reserve Rs 14790.00
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The fund is created out of the amount of MPCSs and nominal membership fee contractors etc. During the period under been received from 28 dairy commercial fees. admission fee from from transporters, audit Rs 2800 has farms as admission
Capital Rs 3942159.00
reserve
fund
The fund has been created by grant received from government of India Rs 5913238 has been received from GOI, out of this amount 1971079 is treated as Mis. Income under grant written off and balance amount stands under this fund
3.cheese 10.Lassi
4.Ice cream
5. Curd
6. Butter
7.
MILK:-
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It is pouch packed milk. It may be used as such or for milk based preparation. It shall be kept under refrigerated conditions. It packed in half ltr. Pouch. Its length of shelf life is 48 hours under refrigerated conditions. It is sold in arid around pathankot ,jammu,batala areas. Special distribution control is needed, under refrigerated condition if transported to very long distance.
GHEE
Ghee may be defined as clarified butter fat prepared chiefly from cow or Buffalo milk. The product can be used on roti/pranthas or can or can be used as cooking other material for food. It is preserved at ambient temperature for one year. It is packed on 500 gms, 2 kgs, 5 kgs and 15 kgs. Bulk pack in tin. It is sold anywhere in Punjab and abroad also. No special distribution control is needed.
CHEESE
Ice Cream may be defined as a frozen dairy product Cheese refers to the small sized soft paneer. The product can be consumed as such or can be
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fried and consumed. It can also be used as an ingredient for making Indian sweets and paneer based dishes. It is preserved under refrigerated condition for 20 days from the date of packing. The product is packed in poly film bags. ICE CREAM Ice cream may be defined as a frozen dairy product made suitable blending and processing of cream and other milk products, together with sugar and flavor , with or without colour and with the incorporation of air during the frizzing process. There are manilt three types of verka kulfi i.e. malai kulfi, choco bar and mango bar. Malai kulfi made with milk, malai and crushed nuts. Choco bar contained chocolate and mango bar kulfi contain mango flavor.
CURD
Dahi or curd is the product obtained from boiled milk by souring, natural or otherwise, by a harmless lactic acid or other bacterial culture, it should have the same percentage of fat and solids-not-fat as the milk for which it is prepared.
BUTTER
Butter may be defined as a fat concentrate which is obtaining by churning cream, gathering the fat into a compact mass and then working it. The product obtained from cow and buffalo milk or a combination there of or from cream or curd obtained from cow or buffalo milk or a combination thereof with or without the addition of common alt and colouring matter. It can be kept under refrigeration for three months this comes in packs of 10 gms. 100 gms and 500 gms.
MILK POWDER
Dried milk or milk powder is product obtained by the removal of water from milk by heat or other suitable means to produce a solid containing 5% or less moisture. Whole milk, defatted or skim, milk may be used for drying. It comes in packing of 200 gms , 500 gms.etc. It can be stored for 1 year before use.
SFM
It is known as sweetened flavored milk or bottle milk. The product used the form of drinking milk. It is preserved at ambient temperature. It packed in 200 ml. Bottle, 200 ml. Tetra packs. The length of shelf life product can be held for three months under ambient temperature. It sold in and around Punjab. in is of is
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RASEELA
Raseela is a very popular product of Verka which was launched in 1995. It comes in two flavors - i) Mango Raseela and ii) Pine apple Raseela. Mango Raseela is prepared from mango pulp and Pineapple Raseela from pineapple pulp. These are coming in 200 ml. tetra pack
LASSI
Lassi, also called chhas refers to desi butter milk which is by product obtained when churning curd led whole milk with curd indigenous devices for the production of desi butter. Verka Lassi is very popular, especially in
Punjab.
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1.
To carry out the activities to economy development of agriculturists by organizing effectively production, processing marketing of milk products as per direction of federation To provide better facilities to milk producer so as easily availability of milk can become possible and for their development.
2.
3. To purchase commodities from the member and deal with non-members for marketing, dairy and allied products subject to such conditions as may be decided by the board from time to time. 4. To establish research and quality control laboratories 5. Constant up gradation of producers and process for better product quality adopting food safety management system to ensure total safety to customer health . The company had a following LOGO for consumer satisfaction:-
IN DAIRY INDUSTRY
SWOT ANALYSIS
STRENGTH;GNDEC Page 19
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1. Minimum interference from top management in day to day working. 2. Qualified experienced and devoted workforce. 3. Brand name- VERKA. 4. Direct contacts with milk producers. 5. Own cattle feed plant and folder seed grading station for supplying certified fodder seeds. 6. Technical and financial guidance and support from Milk fed head office Chandigarh as well as national development dairy board. 7. Good corporate organization. governance and socially responsible
WEEKNESS:1. Highly competitive market. 2. Financial position of plant is very week from many years. 3. Sufficient working capital is not available. 4. Less facilities for Transportation of milk. 5. Problems in research and development.
OPPORTUNITIES:-
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1. Milk chilling centre fathegarh churian falling in district Gurdaspur, if handed over to Gurdaspur union milk. Procurement can be increased. 2. Veterinary health care and breeding facilities is to be increased for improving for genetic milk yielding characters of animals. 3. Feasibility of home delivery system for city supply milk to be applied. 4. General land of milk plant can be used for research and cultivation.
THREATS:1. Increasing salary bills as compared to turnover. 2. Higher cost of raw materials as compared to pricing policy 3. Border tensions and river floods. 4. Non adoption of dairy farming as a side business by farmers.
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Review of literature
Working capital
assets are used in increasing production of an organization and the current assets are used in using the fixed assets for day to day working. The management of this working capital is known as working capital management. The term working capital refers to the amount of capital which is readily available to an organizati
OBJECTIVES OF STUDY
To study the operating cycle of the company To study the working capital management of verka milk Plant To study the sources of working capital in verka milk plant To study the optimum level of current assets and current Liabilities of the company.
To study the financial position of plant through various Working capital related ratios.
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Meaning of methodology:
Research is a common parlance to research for knowledge. One can define research as a scientific and systematic search for pertinent information on specific topic. In fact, research is an art of scientific investigation. According to Clifford woody , Research comprising defining an redefining problem , formulating hypothesis or solutions selecting, collecting, organizing and evaluating data, making data and reaching conclusions and at least carefully testing the conclusions and at least carefully testing the conclusions to determine whether they fit the formulating hypothesis.
Research design:
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Research design constitutes the blue print for the collection, measurement and analysis of data. The design includes an outline of what the researchers will do from writing the hypothesis and its operational implications of the final analysis of data.
Primary data
Which is collected fresh or first hand, and for first time which is original in nature. Primary data can collect through personal interview.
Secondary data
The secondary data are those which have been already collected and stored. Secondary data can be easily gathered from records, journals, annual reports of the company etc.
Tools for analysis Current ratio Working capital turnover ratio Stock turnover
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B) operating cycle
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1) Gross working capital is the capital invested in total current assets of the enterprise which are converted into cash within a year. 2) Net working capital refers to the difference between liabilities which are expected to mature for payments within year. Net working capital may be positive or negative.
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SALES
CASH
FINISHED GOODS
RAW MATERIAL
WORK IN PROCESS
The operating cycle starts with the purchase of raw material and other realization sources and end with the realization of cash from the sale of finished goods.
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Year
2004- 2005- 2006- 2007- 20082005 2006 2007 2008 2009 2 day 2 days 1 day 1 day
Finished 30 days 30 days 30 days 25 days 20 days goods Receiva 14 days 14 days 10 days 7 days 7 days ble collectio ns period + Gross 49 days 49 operatin days g cycle 44 days 35 days 30 days
Credit 20 days 20 days 14 days 10 days 10 days paymen t period _ Net 29 days 29 days 30 days 25 days 20 days operatin g cycle
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SOURCES
AMOUNT
SHARE CAPITAL
13276100
80428468.37
30784483
154775
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YEARS
CURRENT ASSETS
2004-2005 53669569.99 169417635.4 115748065.49 8 2005-2006 62585279.00 192439890.1 1 129854611.11 2006-2007 65058870.00 225018666.8 1 159959795.88 2007-2008 91313295.11 279026531.8 1 187713236.27 2008-2009 110414541.2 315948287.9 5 3 205533746.68
Hence it can be depicted from the above table that the financial position of plant is declining. The current liabilities are high than the current assets, which show the negative position of verka milk plant
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RATIO ANALYSIS
Ratio is the numerical relationship between two variables which are connected with each other in some way. The term accounting ratios is used to describe significant relationship which exists between figures shown on a balance sheet, in a profit and loss account, in a budgetary control system or in any other part of the accounting organization.
CURRENT RATIO
The ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables) The Current Ratio formula is:
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(2008-2009) = 110414541.25/315948287.93 = .35:1
Working capital =
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WORKING CAPITAL RATIO OF VERKA MILK PLANT The working capital turnover ratio is also referred to as net sales to working capital. It indicates a companys effectiveness in using its working capital. The working capital turnover ratio is calculated as follows: net annual sales divided by the average amount of working capital during the same 12 month period.
Working capital turnover ratio = Net sale/working capital Working capital = current assets current liabilities
WORKING CAPITAL RATIO OF VERKA MILK PLANT (2004-2005) = (2005-2006) = (2006-2007) = (2007-2008) = (2008-2009) = 280763440.63 / -115748065.49 236924449.14 / -129854611.11 252152167.44 /-159959795.88 296100409.91 / 187713236.27 368124938.64 / 205533746.48 = -2.43 = -1.82 = -1.58 = -1.57 = -1.79
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years (2004-2005)
(2005-2006) (2006-2007) (2007-2008) (2008-2009)
Ratio is depicted in negative because working capital is in negative figure. Current liabilities are more than current assets of milk plant .This show the poor financial position of milk plant Gurdaspur.
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Net sale /
STOCK TURNOVER RATIO OF VERKA MILK PLANT (2004-2005) = 280763440.63 / 47147988 (2005-2006) (2006-2007) (2007-2008) (2008-2009) = 236924449.14 / 50858434 = 252152167.44 / 42009345 = 296100409.91 / 5690267 = 5.95 = 4.66 = 6.00 = 5.24
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Inventory or stock turnover ratio signifies the liquidity of the inventory. High turnover suggests efficient inventory control, sound sales policies, trading in quality goods, and reputation in the market, better competitive capacity and so on. This table shows the low turnover ratio in last two years which indicate the low turnover of verka milk plant
Fixed 87574 assets 993.60 Investm 15500100 ent Current assets Stock in transit 53669569. 99
4802680.5 9 87603.06
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96248080.
Accumu 106285058
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stabiliza tion fund 81 lated losses Appropr iation loss Loss of 7602745.1 the 9 year 270632467 .70 .92
5430000
BALANCE SHEET OF 2005-06 Previous year 12703100 63370545. 15 23697278. 07 169417635 .48 liabilitie s Share capital Current year 12703100 Previous year Assets year Current
87574 Fixed 88363844.7 993.60 assets 1 15500100 Investme 15500100 nt Current assets 62585279
53669569. 99
Current 192439890 liabilitie .11 s and provisio ns Share stabiliza tion fund 1443909 106285058 .92 Accumul ated losses 113887804. 11
1443909
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Stock in 254088.56 transit 7602745.1 9 270632467 .70 299062441 .88 270632467 .70 Loss of 18725413.3 the year 7 299062441. 88
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Total assets 270632467. 70 299062441.19 49 28429973.
Liabilities & capital Share capital Reserves & surplus Secured loans Current liabilities & provisions Share stabilization Total
1443909
1443909
BALANCE SHEET OF 2006-07 Previous year 12703100 66179628. 21 26041826 192439890 .11
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Asset s year
Current
Reserve 69200547. s & 57 surplus Secured loans Current liabilitie 28868167 225018666 .81
62585279
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s and provisio ns 1443909 Share stabiliza tion fund 1443909 113887804 .11 Accumu 132613217. lated 48 losses
254088.56
299062441 .88
337562276 .38
299062441 .88
65058870.93
2473591.93
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assets Investmen t Accumulat ed loss 15500100 113887804. 11 15500100 132613217.48 35737841.57 337562276.38 _ 18725413.37 17012428.2 38499835.19
Liabilities & capital Share capital Reserves & surplus Secured loans Current liabilities & provisions Share stabilization Total
1443909
1443909
liabilitie s Share
Asset s year
Current
Fixed 90357190.5
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capital 69200547. 57 28868167 225018666 .81 Reserve 70295897. s & 23 surplus Secured loans 30784483 40 15500100 assets 7
65058870. 93
Current 279026531 liabilitie .38 s and provisio ns Share stabiliza tion fund Stock in transit 154775 132613217 .48
1443909
Accumu 168351059. lated 05 losses stock in 886931 transit Appropr 1833541 iate loss
327886
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Liabilities & capital Share capital Reserves & surplus Secured loans Current liabilities & provisions Share stabilization
1443909
154775
_1289134
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Total 337234390.38 392964786.61
Fixed 99320509.3 assets 4 Investm 15500100 ent Current assets consign ment stock 110414541. 25
91313295. 11 1718023.8 0
Current 315948287 liabilitie .93 s and provisio ns Share stabiliza tion fund Stock in transit 154775
154775
886931
stock in transit
Accumu 193734246. lated 13 losses Appropr 3720812 iate loss Loss of 17901905.5 the 8
23549646. 08
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year 393509786 .61 440592114 .30 393509786 .61 440592114. 30
2008 12703100
2009 13276100
Working capital
Reserves & surplus Secured loans Current liabilities & provisions Share stabilization Total 70295897.23 30784483 80428468.37 30784483 10132571.14 _
154775
886931
732156 48359483.69
392964786.61 441324270.3
FINDINGS
Working capital management is important aspect of financial management. The study of working capital management of verka milk plant has revealed that the current ratio is declining
Working capital of the company was decreasing and showing negative working capital per year. It shows bad liquidity position. Negative working capital indicates that company faces the problems of payments of short terms liabilities. Working capital declined because of decrease in the current assets as compared to current liabilities. Stock turnover is fluctuating constantly because of variations.
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RECOMMENDATIONS
Company should raise funds through short term sources for short term requirement of funds, which comparatively economical as compare to long term funds.
Company should take control on debtors collection period which is major part of current assets.
Company has to take control on cash balance because cash is non earning assets and increasing cost of funds. Company should avoid bad debts and prepaid expenses. .
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LIMITATIONS OF STUDY
Limited data:This project has completed with annual reports; it just constitutes one part of data collection i.e. secondary. There were limitations for primary data collection because of confidentiality. Limited period:This project is based on five year annual reports. Conclusions and recommendations are based on such limited data. The trend of last five year may or may not reflect the real working capital position of the company Limited area:-
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CONCLUSION
It is concluded that the current assets are less than the current liabilities .The financial position is very poor and hence it is a sick unit. All the ratio show negative performance of the company .company should try to improve the financial position with help of different resources of finance.
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http://www.google.com visited in the month of July,2010. http://www.wikipedia .com , visited in the month of August,201 http://www.businesslink.gov.uk/bdotg/action; visited in the month of august 20
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www.milkfed.nic.in www.milkfed.org
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