“A STUDY ON FINANCIAL STATEMENT ANALYSIS IN

TIRUMALA MILK PRODUCTS PVT. LTD., PALAMANER”

Project Synopsis submitted in partial fulfillment of the requirement for the

Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
Of
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY,
ANANTHAPUR

By
Name: C.NAVEEN

Reg. No. 17AK1E0054

Under the guidance of

Mr.S.KISHORE MBA.,
Asst.Professor

Department of MBA

DEPARTMENT OF MANAGEMENT STUDIES

ANNAMACHARYA INSTITUTE OF TECHNOLOGY & SCIENCES
TIRUPATI-517520
MBA 2017-2019

STUDENT SIGNATURE: GUDIE SIGNATURE:

DATE:

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1.INTRODUCTION:

Financial Management
Meaning
Corporate finance is also referred to as financial management. It is concerned with
acquiring the fund & utilizing the funds by a business. Financial management is that
managerial activity which is concerned with planning & controlling of firm’s financial
resources. Through it was a branch of economics till 1890, as a separate activity or division it
is or recent origin.
Functions of Financial Management
As hinted in the preceding paragraphs, views of traditional and modern scholars regarding
finance functions differ markedly, the following points will give a discussion to the functions
of financial management.

2. INDUSTRY PROFILE

THE MARKET OF MILK INDUSTRY IN INDIA:

A beginning in organized milk heading was made in India with in India with the
establishment of the “military dairy forms” (oldest is Allahabad, 1989), the salient features of
the market of milk industry so far have been,

 Handing of milk in co-operative milk union (oldest “Allahabad” 1913) established all
over the country on a small scale in the early stages.

 Long distance of refrigerator rail transport of milk from Amul to Mumbai since 1955.

 Pasteurization and bulling on a large scale for organized distribution on a large scale
for organized distribution was started as
array(1950)world(1961),Calcutta(haringhattor7959),Delhi(1959), Chennai(1965)etc.,

3. COMPANY PROFILE

Tirumala Milk Products Pvt Ltd is a professionally managed company engaged in the
manufacture of wide range of dairy products.

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 stablished in 1998, Tirumala Milk Products (P) Ltd. Is one of the fastest growing
private sector enterprises in India E with a team of dedicated professionals? The company has
one of the most modern and versatile plants in the Indian daily industry with state of the art
technology.

Tirumala Milk Products Pvt Ltd. Products meet stringent quality of the market for
dairy products. Tirumala Milk Products Pvt Ltd. Is presently implementing an expansion
programmed and proposes to launch now products in the near feature.

Presently Tirumala market is present in Andhra Pradesh, Karnataka, and Tamilnadu.

The company handles 7 lack liters of milk per day in the packing stations and dairy plant.
This is the single largest plant in the state of Andhra Pradesh.

PRESENT BOARD OF DIRECTORS

S.NO: NAMES DESIGNATION

1 Sri D.Brahmanandam Managing Director

2 Sri B.NageswaraRao Director

3 DrN.VenkataRao Director

4 Sri B.Brahma Naidu Director

5 Sri A. Suresh General Manager

6 Sri Purushotham Finance Manager

Vision of Tirumala Milk Products (P) Ltd:

“To produce and supply superior quality products with exceptional customer service
to eventually grow as market leader in dairy industry”.

Mission:

A mission is an enduring statement of purpose that distinguishes one business from

other similar firms. A mission statement identifies the scope of firms operations in product an
market terms.

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Mission of Tirumala Milk Products (P) Ltd:

Vision of Tirumala Milk Products (P) Ltd. Will constantly strive to market quality
products at competitive prices provide value to the business partners, all the while delivering
exceptional customers services with the highest regard for business ethics.

4. Review of literature:

Definition
“Analyzing financial statements is a process of evaluating the relationship between
component of financial statements to obtain a better understanding of a firm’s position and
performance”. - Metcalf and Titard
Interpretation

It means to explain the meaning and significance of the financial data in simplified manner.
Objective of Financial Statement

The basic objective of financial statement is assist in decision making the other objectives
are;
 Resources and obligation: - To provide reliable financial information about economic
resources and obligations of business enterprise.
 Changes in net resources: - To provide reliable information about changes in net resources
{resources-obligation} of an enterprise that results from the profit-directed and other
earnings.
 Full disclosures: - To disclose, to the extent possible, other information related to the
financial statement that is relevant to statement users.

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5. Objectives of study:

 To know the financial and operating performance of the Company.

 To judge whether the financial position of the Tirumala Milk Products Pvt. Ltd is satisfactory or
not.
 To get a feel and experience in analyzing financial statements.
 To find out the strengths and weaknesses of Tirumala Milk Products Pvt. Ltd with the help of
financial information or statements.
 To apply or relate the theoretical knowledge of Ratio analysis, Comparative statement analysis,
Common size statement analysis and Trend analysis in analyzing the financial statements of
Tirumala Milk Products Pvt. Ltd, Palamaner.

6.Research methodology:

This particular study is a combination of both quantitative and qualitative aspects.

Sources of data
 Primary data: primary data which includes only the personal interaction with the
employees of the company.

 Secondary data: secondary data which has been collected from the Annual Reports of
the company for last Five years; i.e. from
 Annual Report for the year 2012-13 to 2016-2017

Techniques for Analysis

The techniques of data analysis are as follows.

 Comparative financial statement analysis

 Trend analysis
 Ratio analysis

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7. SCOPE OF THE STUDY

 The present study was carried at Tirumala Milk Products Pvt. Ltd, Palamaner.
 The study pertains to the analysis of the financial statements for the last five years (2014-2015
to 2018-2019).
 The study is confined to this particular company only.

8.Limitations of study:

 It is essentially historic in nature and projected funds flow statement cannot be

prepared with much accuracy.
 It cannot be reveal continues changes.
 It is not an original statement but simply a re - arrangement of data given in the
financial statements.
9. Findings, suggestions, conclusion:

 The current ratio of the company has been declining continuously however
the ratio is satisfactory indicating that favorable short term solvency of the
company.
 The company sales are increased continuously.
 The company equity share is constants during the last five years.

 Gross Profit has increased during the last year. This is due to increase in
selling price of the company as compared to sales and there is lower cost
of production.

 There is constant control over the companies operating cost or overheads

which shows the operational efficiency of the company.
b. suggestions:

 The current ratio should be increased gradually, the ratio should be

satisfactory which favors short term solvency of the company.

 Company has to take some more steps to increase sales of the company.

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 The profit of the company can be maximized profits by reducing operating
expenses.

 The company should try to increase equity shares for the future.
C. Conclusion:

The title of the project report is “A study on Analysis of Financial Statements”

with special reference to Tirumala Milk Products Pvt Ltd. Palamaner and was
started with a prime objective to understand how sound the branch is
financially. To draw the results, some of the financial analysis techniques like
comparative statement and trend and ratio analysis have been used.

10. Bibliography:

Title Author

Financial Management I.M. Pandey

(9th Edition)

Financial Management & Policy V.K. Bhalla

(5th Edition)

Financial Management Prasanna Chandra

Financial Management M.Y. Khan & P.K. Jain

Cost & Management Accounting S.P. Jain & K.L. Narang

Referred: www.tirumala milk products pvt ltd.com

www.google.co.in
www.yahoo.co.in
www.ask.com

Annual Report of Tirumala Milk Products Pvt. Ltd from 2014-15 to 2018-19.

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