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5/13/2018 Bhupen Ppt - slidepdf.com
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SUMMER INTERNSHIP PROJECT
On
‘‘Working Capital Management’’
AT
VASUDHAR DAIRY.
Prepared by:
BHUPENDRA RATHOD
Enrollment no: 107310592029
Under the guidance of
INTERNAL GUIDE- PROFF .NILAM DAMANIA
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HISTORY OF VASUDHARA
DAIRY “VALSAD DISTRICT CO-OPERATIVE MILK PRODUCER UNION LIMITED”
has been registered in 1973 and initiated dairy development activities onANAND pattern since 1975.
dairy plant of 30000 liters per day capacity was commissioned at ALIPOREvillage taking commercial loans from financial institution and assistance from
the state government
VASUDHARA has added one more feather in its cap by commissioning theproduction of “AMUL” ice cream at its BOISAR plant in November, 1997.
In may 2002, another ice cream plant is commissioned at Nagpur and isaggressively expended to meet the market demand.
vision 2010 of the organization, expansion of WAGHAI chilling centre is done.This plant with the capacity to chill 20000 liter of milk procured mainly from theabsolute backward areas of dang district.
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BANKERS VALSAD DISTRICT CO-OPRATIVE BANK LTD.
BARODA –GUJRAT GRAMIN BANK
STAT BANK OF INDIA
BANK OF BARODA ICICI BANK
HDFC BANK
AXIS BANK
CORPORATION BANK
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Quality Management Quality management and improve life standard is the main aim
of “VASUDHARA” dairy
Vasudhara won the RAJIV GANDHI NATIONAL QUALITYAWARD for the year 2007.
It has won this laurel in “food &drug” category among the largescale organizations of India
Setting up a trust devote to facility the farmers oriented activitiesand giving scientific inputs to the rural farmers for upgrading theirfarming and milk business activities and utilizing the availableresources in the best possible manner.
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Department activity MANPOWER
In VASUDHARA dairy present manpower strength isapproximately 318 manpower consists of a service ofactivities.
ACTIVITIES OF PERSONNEL & ADMINISTRATIONDEPARTMENT
CO OPRATIVE DEPARTMENT
MILK PROCURMENT DEPARTMENT MARKETING DEPARTMENT
FINANCE DEPARTMENT
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THERICAL ASPECT
MEANING OF WORKING CAPITAL
Working capital is the amount of capital that abusiness available to meet the day to day cashrequirement of its operation
Working capital is a difference between resource incase or readily convertible into cash andorganizational commitments for which cash will soon
be required. If refers to the amount current assets thatexceeds current liabilities.
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Type of working capital
1. Concept base
Gross working capital
Net working capital
Negative working capital2. Time based working capital
Permanent working capital
temporary working capital
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Working capital cycle
cash
Raw materials
Work in progress
Finished good
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Factors affecting working capital Nature of business
Size of business
Business cycle , manufacturing cycle
Operating efficiency,
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MEANING OF WORKING CAPITALMANAGEMENT
Working capital management is concerned with theproblem that arise in attempting to manage the currentassets, current liabilities and the interrelationship that
exists between them Two steps involved in the working capital management
(1)Forecasting the amount of working capitalmanagement
(2)Determining the source of working capital
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Research methodology1. Meaning of research methodology
The basic concept of research methodology refers the way
in which companies conduct their research and how theycollect the data they need.
Whenever a company or organization needs to investigate aparticular area of their business dealings, they need to adaptthe most suitable research methodology for the job
A company may need to decide what format of research theywant to use before the investigation begins.
2. Objective of study
To analysefirm’s
working capital using variousratio’s
.Such as day’s sales in receivable ratio, accountreceivable turnover ratio, current ratio, inventory/stockturnover ratio, net working capital ratio etc. of VDCMPU
To analyse company’s working capital over the tenure of
five years. ’
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3. Methodology of study
data collected two method
a) Primary method Interacting with the manager
During in-plant training,
visits to all departments were undertaken.
the discussion of observation helped a lot in understandingthe manufacturing system.
b) Secondary data
Company financial statement
Five year annual report collected information through various Journals, Books,
Internet, and Magazines, also various literatures werereviewed for conceptualizing them for the project report.
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Limitation of the study
Sincere effort was made together all required
data for waiting the project report the followinglimitation.
Due the confidential nature of date most of thedate was not made available for review.
FURTHER SCOPE OF THE STUDY
Financial structures can will be chosen as
research problem Comparative study can will be understand for
better analysis
Both primary and secondary date can be use in
research study.
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Beneficiary of the study: Students
Company
Researchers Industry
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Data analysis and interpretation
statement of changes in working capital
Ratio analysis
Trend analysis to anticipate future ratios
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Statement Change in Working Capital
Particular 2006 2007 Increase Decrease Current asset
Inventory 77,509,733 157,632,379 80,122,646 Loans & advance 240,751,726 179,724,724 61,027,002
Cash bank balance 52,307,397 35,038,446 17,268,951
Total current assets 370,568,856 372,395,549 80,122,646 78,295,953
Current liability
Liability 202,123,339 263,839,450 61,716,111 Provision 2,459,980 3,000,000 540,020
Total liability 204,583,319 266,839,450 - 62,256,131
Net working capital 165,985,537 105,556,099
Net Increase/ Decrease 60,429,438
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Particular 2010 2011 Increase Decrease Current asset
Inventory 468,008,350 272,347,057 195,661,293
Loans & advance 374,755,914 360,396,632 14,359,282
Cash bank balance 157,619,659 157,619,659 -
Total current assets 1,000,383,923 790,363,348 - 210,020,575
Current liability
Liability 507,832,085 489,199,710 18,632,375
Provision
-
Total liability 507,832,085 489,199,710 18,632,375 -
Net working capital 492,551,838 301,163,638
191 388 200
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Ratio analysis
year 2007 2008 2009 2010 2011 current ratio 0.18 2.23 1.58 1.96 1.61
Day/s Sales inReceivable
7 14 10 5 7 account receivable
ratio 54.19 26.76 37.06 71.19 48.92
inventory turnoverratio
2.86 2.12 2.79 1.14 0.89 net working capital
ratio 35.79 12.88
28.83 14.69
27.67
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Trend Analysis
year 2007 2008 2009 2010 2011 2012 2013 2014
ratio 0.18 2.23 1.58 1.96 1.61 2.29 1.98 2.22
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year 2007 2008 2009 2010 2011 2012 2013 2014
ratio 54.19 26.76 37.06 71.19 48.92 57.79 70.52 73.15
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finding
Changes in working capital is volatile
Current ratio increased to 1.61 is 2011 comparedto 0.18 in 2006. This shows company’s currentratio is strength
Account receivable turnover ratio is efficient. Stock turnover ratio is consistency decreasing
Suggestion
Company is should try to maintain adequate working
capital, which is required to run the businesssmoothly.
Increase the product line of the company.
To increase the awareness of product they should doadvertisement for it.