A PROJECT ONWORKING CAPITAL

MANAGEMENTOF

Under The Guidance Of: Prof. DR. SANEEM FATIMA

(Mentor)Presented By: Mahboob Alam 150301-03-33

Department of Management StudiesMaulana Azad National Urdu University

Gachibowli, Hyderabad

CONTENT INTRODUCTION

OBJECTIVES OF THE STUDY

RESEARCH & METHODOLOGY

COMPANY PROFILE

CONCLUSION.

INTRODUCTIONWorking capital is an excess of current assets over current liabilities. In other words, The amount of current assets which is more than current liabilities is known as working capital. If current liabilities are nil then, working capital will equal to current assets. Working capital shows strength of business in short period of time.

Working capital is the cash needed to pay for day-to-day operation of the business.

Working is the difference between the current assets of a business and its currents liabilities.

Current Assets - Current Liabilities = Working Capital

How is It Calculated?

OBJECTIVES OF THE STUDY

Working capital is the most widely used and powerful technique of financial

analysis .The main objective of the present study is to know the financial

condition of the company.

To know the overall operational efficiently and performance of the MAHANAD DAIRY.

To study the working capital components such as receivables accounts, Cash management, Inventory management.

To understand how the company finances its working capital.

To interpret the financial position of company of is appropriate (or) not.

RESEARCH & METHODOLOGYResearch methodology is a way to systematically solve the research problem. It May be understood as a science of studying now research is done systematically.

SOURCES DATA The study of Working Capital management is based on primary as well as secondary data.Data relating to has been collected through.

PRIMARY DATA:  The primary data is that data which is collected fresh or first hand, and for first

time which is original in nature. In this study the Primary data has been collected from Personal Interaction with Finance manager i.e., Mr. Haren M. Sankhe and other staff members.

SECONDARY DATA:  The secondary data are those which have already collected and stored.

Secondary data easily get those secondary data from records, annual reports of the company etc. It will save the time, money and efforts to collect the data.

DATA ANALYSISThe analysis of working capital can be conducted through a number of devices, such as:

1. Ratio analysis.2. Fund flow analysis.3. Working capital Budgeting.

Ratio analysis :- A ratio is a simple arithmetical expression one number to another. The technique of ratio analysis can be employed for measuring short-term liquidity or working capital position of a firm. The following ratios can be calculated for these purposes:

1.Current ratio,

2.Quick ratio

3.Absolute liquid ratio

4.  Inventory turnover.

5.  Receivables turnover.

6.  Payable turnover ratio.

Cnt….. Fund flow analysis:-

Fund flow analysis is a technical device designated to the study the source from which additional funds were derived and the use to which these sources were put. The fund flow analysis consists of:

 a.     Preparing schedule of changes of working capitalb.     Statement of sources and application of funds.

Working capital Budgeting:-

The successful implementation of working capital budget involves the preparing of separate budget for each element of working capital, such as, cash, inventories and receivables etc.

FINDING The company has been maintaining sufficient amount of working capital in all the years.

Return on investment is not satisfactory. This indicates that the company’s funds are not being utilized in a better way.

Fixed assets turnover ratio of MAHANAD DAIRY increased. The company has to maintain this.

SUGGESTIONS

Suggested the company should follow the present working capital.

Better Awareness to increase the sales is suggested.

The company should make arrangement of receivables and cash.

The raw material should be acquired from the right source at right quality and at right cost.

COMPANY PROFILEMaharashtra Rajya Sahakari Dudh Mahasangh Maryadit (MRSDMM) established in 9th June 1967. MAHANANDA Dairy is a baby of MRSDMM. MAHANAND Dairy is started on 18th August 1983, at Goregaon (E) Mumbai 400065.

 In the decades 1970-1980, There was an earnest need to construst one more Dairy (5th Dairy in the Mumbai) to fulfill the present and future demand for the Milk as their was substantial increase in procurement of Milk in rural Maharashtra (specially in western zone).

 Hence with the joint effort of the state Government and NDDB The 5th Dairy in Mumbai was established with financial aid from National Dairy Development Board (NDDB). The 5th Dairy in the Mumbai is Constructed at Goregaon, In western region of Mumbai.The total area covered by the MAHANAND dairy is around 27 acre of land close to western express highway. With the Aim of speedy procurement of Milk as well as speedy distribution of Milk.

PRESENT BUSINESS AND STRENGTH OF MANPOWER

The present capacity of MAHANAND dairy is 8 lac liter per day, having 8 lac liter stock in the siols and 8 lac liter capacity to store in cold storage. MAHANAND dairy in MAHARASHTRA same as that of ANAND dairy in Gujarat.

MAHANAND dairy is handing 8 lac liter of Cow Milk as well as Milk Products such as Shirkhand , Paneer , Ghee, Flavour Milk, Lassi, Chass , Tond Milk, Skim Milk Powder. MAHANAND dairy is having its Packing Unit at Vashi, Pune, Kudal, Nagpur, Pimoal kuta and at Latur. All the above mentioned Unit handles around 3 lac liter Milk per day.

Strength of MAHANAND is around 1680 employee (including officers, staff and workers). All working is done automatically with the help pf well established computerized system. Including the pasteurization of Milk. Dudh Mahasangh / MAHANAND Dairy is having Taluka Sangh as District Sangh as their member "Dudh Sangh" and presently having 8 sangh as there member there are 25 District Sangh and 50 Taluka Sangh and also having 13 Interstate member Sangh. The total turnover of MAHANAND dairy in the last financial year 400 corers.

CONCLUSION

The study on working capital management conducted in Mahanand Dairy to analyze the financial position of the company. The company’s financial position is analyzed by using the tool of annual reports from 2013-14 to 20015-16.

The MAHANAD DAIRY Net Working Capital Ratio is satisfactory.

Working capital analysis it criteria is distinctive work while and commendable technique in postulating the financial behavior of business enterprise.

Thus, working capital management which integrated, internal, intermediate, and organization based financial and analytical measurement the study always a strategic measurement with reference in performance, growth expansion and modernization of the business.

Have a great Day ahead