This action might not be possible to undo. Are you sure you want to continue?
OF FOODS AND INNS LTD, CHITTOOR´ Project Report
Submitted in partial fulfillment of the requirement For the award of the Degree Of
MASTER OF BUSINESS ADMINISTRATION
(JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY)
Reg. No.: 07751E0054 Under the guidance of
Mrs.T. HIMABINDU, M.F.M.,
Assistant Professor, Dept of M.B.A.
SREENIVASA INSTITUTE OF TEHNOLOGY AND MANAGEMENT STUDIES (Affiliated To Jawaharlal Nehru Technological University, Hyderabad) #74, Thimma Samudram, Bangalore ±Tirupati Bye-Pass Road Chittoor ± 517 128 2007-2009
Sreenivasa Institute of Technology and Management Studies
(Affiliated to Jawaharlal Nehru Technological University, Hyd) Murukambattu, CHITTOOR ± 517 127
This is to certify that the project report entitled ³A STUDY ON FUNDS FLOW ANALYSIS OF FOODS & INNS LTD, CHITTOOR.ana´ submitted by Mr.N. MANJUNTH(07751E0054) in partial fulfillment of the requirement for the award of the degree of ³Master of Business Administration´ under JNTU, Hyderabad, is a record of independent work under taken by him/her during the academic year 2008-2009. This project report has not been submitted earlier either in part or whole for the award of any other degree/diploma of any university.
PROJECT GUIDE Mrs. T. HIMABINDU, M.F.M. Department of MBA
DIRECTOR Dr .S.E.V.SUBRAMANYAM, M.B.A, PhD., Department of MBA
I, N. Manjunath declare that the study conducted on ³A STUDY OF FUNDS FLOW ANALYSIS OF FOODS & INNS LTD, CHITTOOR´ is submitted by me to the department of business management, Sreenivasa Institute of Technology And Management Studies (JNTU), is of my own and is not submitted to any university or published at any time before.
N.MANJUNATH Reg. No.: 07751E0054
I am very much grateful to FOODS & INNS LTD for allowing me to carry out my project work. I am thankful to D.S.N.MURTHY (Financial Manager) for giving me the permission to do my project work in Foods & inns Ltd. I would like to thank our principal Dr. T. SAIRAMA M.E., PhD, for his valuable guidance and enthusiasm shown to me. I owe a special thanks to our Head of the Department, SUBRAHMANYAM, M.B.A., PhD I would like to express my deep gratitude to my guide BINDU, M.F.M, for her guidance and motivation. Prof.S.E.V.
Mrs. T. HIMA
(N.MANJUNATH) Reg. No.: 07751E0054
STATEMENT OF THE PROBLEM
Funds flow statement summarizes for a particular period the resources made available to finance the activities of an enterprise and the uses to which such resources have been put. Funds flow statement is based on accrual concept of profit. The Company prepares a statement of funds flow to cater Purchase of fixed assets and investments, redemption of debentures and preference shares and repayment of loans, payment of dividend, payment of tax, and increase in working capital. It is the responsibility of the organization to maintain a standard level of funds flow neither excess or deficit.
Management of funds is an important aspect of financial management. Management of funds acts as the primary concern whether it may be in a business undertaking or in an educational institution. Financial management, which is simply meant dealing with management of money matters.
it is said to be an application or outflow of funds. Flow of funds is said to have taken place when any transaction makes changes in the amount of funds available before happening of the transaction. If the effect of transaction results in the increase of funds it is called source of funds and if it results in the decrease of funds it is known as an applications of funds the term flow of funds refers to the movement of funds in the working capital it is said to be a source or inflow of funds and if it results in the decrease of working capital. cost and control. MEANING AND DEFINITION OF FUNDS FLOW STATEMENT Funds flow statement is a method by which we study changes in the financial position in the business enterprise between beginning and ending financial statement dates. summary of financial operations. From the cost point of view equity capital is most expensive source of funds as dividend expectations of shareholders are normally higher than prevalent interest rates. As funds can be obtained from different sources so procurement of funds is considered as an important problem of business concerns. statement of changes in financial position. PROCUREMENT OF FUNDS 1.According to Phillippatus. Funds procured from different sources have different characteristics in terms of risk. where gone statement. sources and uses of funds. 4. Funds issued by the issue of equity shares are the best from risk point of view for the company as there is no question of repayment of equity capital except when the company is under liquidation. It is a statement showing sources and uses of funds for a period of time. Funds flow statement is called by various names such as sources and application of funds. The term flow of funds means transfer of economic and values from one asset of equity to another. where came in and where gone out statement. "Financial management is concerned with the managerial decisions that result in the acquisition and financing of short term and long term credits for the firm". cost and control. 5. movement of working capital statement movement of funds statement. Financial management constitutes risk. funds received and . where got. 2. ³A statement of sources and applications of funds is a technical device designed to analyze the changes in the financial condition of a business enterprise between two dates´. The cost of funds should be at minimum for a proper balancing of risk and control MEANING AND CONCEPT OF µFLOW OF FUNDS¶ The term µflow means movement and includes both µinflow¶ and µoutflow¶. 3.
disbursed statement. Net profit can also be computed by comparing the balance sheet at beginning and the end of the period. LIMITATIONS OF FUNDS FLOW STATEMENT The funds flow statement has a number of uses. It provides only some additional information as regards changes in working capital. funds statement etc. 3. It should be remembered that a funds flow statement is not a substitute of an income statement or a balance sheet. RELATIONSHIP BETWEEN BALANCE SHEET AN AND PROFIT & LOSS ACCOUNT The balance sheet and the profit & loss account are not two separate and independent statement but they are related to each other. how ever it has certain limitations also which are listed below: 1. This fact . funds generated and expended statement. arrangement of data given in the financial statements. Changes in cash are more important and relevant for financial management than the working capital. We can easily realize the impact of profit & loss account if we remember that revenue is an inflow of assets (or outflow of liabilities) and expenses are an out flow of assets (or inflows of liabilities). Generally. It can not reveal continuous changes. 4. The profit & loss account is a link between the balance sheet at the beginning of the period and the balance sheet at the end of the period. It is essential historic in nature and projected funds flow statement cannot be prepared 5. 2. the profit and loss account is prepared to compute net profit. It is not an original statement but simply.
as a starting point. creditors.emphasizes the role of the profit and loss account as a link between consecutive statements of financial position. In the language of accounting balance sheet communicates information about assets. Since the profit and loss account reflects the results of operations for a period of time. Net profit (or net loss) for a period is equal to the change in owner¶s equity during that period. The generally accepted convention is to show one year events in the profit and loss account. It is a flow statement. Thus. liabilities and owners equity for a business firm as on a specific date. the difference in beginning and ending owner¶s equity is the net profit (or net loss). It provides a snapshot of the financial position of the firm at the firms accounting period. More especially balance sheet contains information about resources and obligations of a business entity and about its owner¶s interests in the business at a particular point of time. PROFIT AND LOSS ACCOUNT Balance sheet is considered as a very significant statement by bankers and other lenders because it indicates the firm¶s financial solvency and liquidity. It indicates the financial condition or the state of affairs of a business at a particular moment of time. The profit and loss account is a ³score board´ of the firms performance during a period of time. Thus. The earning capacity and potential of a firm are reflected by its profit and loss account. as measured by its resources and obligations. However. particularly bankers and financial analysis in India have recently started paying more attention to the firm¶s earning capacity as a measure of its financial strength. the balance sheet reveals the firms financial position on specific date. BALANCE SHEET Balance sheet is the most significant financial statement. liabilities and owners equity at a point of time. LIST OF NON CURRENT OR PERMANENT CAPITAL ACCOUNTS Non-current or permanent liabilities Equity share capital Preference share capital Redeemable preference share capital Debenture Long term loans Share premium account Share forfeited account Non-current or permanent assets Goodwill Land Building Plant & Machinery Furniture & fittings Trade Marks Patent rights . The balance sheet is a stock or status statement as it shows assets.
h.Profit & loss account Capital reserve Capital redemption reserve Provision for depreciation against fixed assets Appropriate of profits a. e. c. f. d. General reserve Dividend equalization fund Insurance fund Compensation fund Sinking fund Investment fluctuation fund Provision for taxation Proposed dividend Long-term investment Debit balance of Profit & loss account Discount on issue of shares Discount on issue of debentures Preliminary Expenses Other differed expenses LIST OF CURRENT OR WORKING CAPITAL ACCOUNTS Current liabilities Bills payable Sundry creditors or accounts payable Accrued or outstand expenses Dividends payable Bank overdraft Short term loans. b. g. advances and deposits Current assets Cash in hand Cash at bank Bills receivable Sundry debtors or accounts receivable Short-term loans and advances Temporary or marketable investments .
d. 2. An increase in current assets increases working capital. Proposed dividend(may be current/non-current liability) Prepaid expenses Accrued incomes PROCEDURE FOR PREPARING A FUNDS FLOW SATEMENT Funds flow statement is a method by which we study changes in the financial position of a business enterprise beginning and ending financial statements dates. 2. c. Raw materials Work in process Stores and spares Finished goods Provision for taxation if it does not amount to appropriation of profits. A decrease in current in current increases working capital. Statements of sources and application of funds. 3. An increase in current liabilities decreases working capital and. 4. USES.Provision against current assets Inventories or stocks such as a. hence the funds flow statement is prepared by comparing two balance sheets and with the help of such other information derived from the accounts as may be needed. SIGNIFICANCE AND IMPORTANCE OF FUNDS FLOW STATEMENT y It helps in the analysis of financial operations. . Broadly speaking the preparation of a funds flow statement consists of two parts: 1. A decrease in current assets decreases working capital. b. Working capital = Current assets ± Current liabilities 1. Statement or Schedule of changes in working capital funds.
It acts as a future guide. STATEMENT OF SCHEDULE OF CHANGES IN WORKING CAPITAL PARTICULARS PREVIOUS CURRENT EFFECT ON WORKING YEAR YEAR CAPITAL INCREASE DECREASE CURRENT ASSETS Cash in hand Cash at Bank Bills receivable Sundry Debtors Temporary investments Stocks/Inventories Prepaid expenses Accrued Incomes Total Current Assets CURRENT LIABILITIES Bills payable Sundry creditors Outstanding expenses Bank overdraft . It helps knowing the overall credit worthiness of a firm. It helps in the formation of realistic dividend policy.y y y y y y It throws light on many perplexing questions of general interest. It helps in a appraising the use of working capital. It helps in the proper allocation of resources.
c) Redemption of debentures d) Purchase of Investment and other fixed assets. Total_______ Applications: a) Payment of share capital b) Repayment of institutional loans.Short-term advance Dividend payable Proposed dividends* Provision for taxation* Total current liabilities Working Capital (CA-CL) Net increase or decrease in working capital * May or may not be a current liability PROFORMA OF A FUDS FLOW STATEMENT Statement of Sources and Application of Funds Sources: Rs A. Trading profit or funds from operations. Issue of Debenture C. Issue of share capital B. Institutional Loans D. . Sale of Investment and other fixed assets E.
as well as globally. Data from 2001 indicated that India exported 3.7 thousand metric tons of mango pulp. but also imported 2. The total market value of Indian mango and mango pulp represents 25% of the value of agricultural and processed food products exported by India. Mango is in strong demand within the worldwide retail sector. Collectively.2 thousand metric tons of mango juice. including leading varieties like Alphonso. India has the potential to create a long±term global market position and to capitalize on the fast growth of mango as a preferred ingredient for the natural package food industry. Collectively. India is a minor exporter of mango and mango products at this time. This accounts for 41% of the estimated worldwide mango production of 25. .4 thousand metric tons. Moreover.e) Non-trading payments Total_______ INDUSTRIAL PROFILE BACKGROUND OF MANGO INDUSTRY The lack of mango market development globally opens a large untapped opportunity for India to make an organized entry in the fresh mango and mango pulp market. the consumption growth for mangos in the United States and Europe has average 10±15% per year during the last 5 years. or only about 0. Data on exports of Indian mango pulp and juice products are more limited. India is well positioned to capitalize on this opportunity with a very large national production of mangos.4% of mango production during this time frame.2 thousand metric tons of mango juice. Additionally.56 million metric tons in 2003. these observations indicate that. these factors indicate a strong opportunity to position Indian mango and mango products to meet a growing international demand. Despite this large mango production. During the five±year period from 1998±2002. exports of fresh mangos from India averaged approximately 42. Data from 1995 indicated that India exported 37. mango is a preferred fresh fruit within the Indian domestic market.
A recent report from the Indian Ministry of Food Processing Industries further details the overly complex supply chain and its contribution to costs and post±harvest losses. Associated with this inefficient aggregation process is the application of numerous commissions as fresh agricultural products trade hands.despite being by far the world¶s largest mango producer. This report concludes that it is imperative to streamline the mango supply chain in order to reduce wastage and raw material costs. Furthermore. export organizations. India exports less than 1% of its mango crop as fresh mangos or processed mango products. These observations with mango are consistent with aggregate data available on Indian fruit and vegetable exports. Numerous stakeholders in India have expressed concern that this overly complex value chain is a hindrance to effective marketing of Indian mangos and mango products. testing facilities. and logistics management. One barrier to efficient development of the Indian mango industry is an exceedingly complex supply chain. PFID²F&V partnerships will also help identify and facilitate resources necessary for enhancing the mango supplychain such as cold storage facilities. PFID²F&V is working to strengthen the small and medium mango grower base by providing capacity building at all levels. increase farmer incomes. and a more efficient supply chain. and Indian government organizations. . and development the farmer base at commercial and social levels. improved packing and grading facilities. (Sources: India Ministry of Food Processing Industries and Rambo bank Report). Education and training in Good Agricultural Practices and other sanitary standards. a number of buyers and other aggregators operate at local Minds and APMC to assemble larger lots from the many small producers in any given region. Within the value chain. A further approach will target reduction of waste in the fresh mango chain by developing high±value mango products and enhancing processing capacity for the domestic market. among others. as well as employment of certification systems. Ultimately. will lead to better yields. pesticide use in accordance with regulations. INDIA MANGO & MANGO PULP INDUSTRY DEVELOPMENT Through partnerships with mango growers. these steps will help stabilize prices. processors.
together with our two India-based coordinators. now. MSU/PFID-F&V. One reason contributing to this poor export performance is that overseas buyers have stricter standards than are currently accepted within the Indian domestic market.000 tones Farmers have to go to Bangalore. just over one year from project start-up. o PFID²F&V will partner with relevant Indian organizations in establishing a global image for the Indian mango starting with the establishment of quality standards and Good Agricultural Practices (GAPs) standards for India. o PFID partnerships in India can facilitate the development of a distribution network in European and other countries where the value realizations for mango and mango pulp are the highest.000 tones by 2010 Mango is raised in 36. GOALS OF INDIA MANGO MARKET DEVELOPMENT Currently. PFID²F&V will facilitate the development and implementation of quality and safety standards which will meet the demands of the export market. recently met with the Agricultural Product Export Development Authority (APEDA) as well as the Federation of Indian Chambers of Commerce (FICCI) and the National Institute of Marketing Boards (NIAM) to follow up on each of their commitments to promote the Indian Mango Industry. as there is no testing facility in Krishnagiri Farmers are not getting fair price. notable results are beginning to show in the form on increasing contributions from partnership members. Dr.MANGO PULP INDUSTRY HOPES o o o o o Mango pulp production to reach 75. Thiagarajan. even if there is a rise in prices in global market MANGO MARKET DEVELOPMENT PFID-F&V India has continued to forge and strengthen public and private partnerships to the point that. only 1% of the total mango production in India is exported.000 hectares in Krishna Giri district Mango pulp processed annually is 50. o PFID partnerships can assist mango growers and processors in developing an "India" brand image for fresh mango and processed mango products that meet .
The division was set up in 1967 and since then has handled a wide range of products . meat and poultry. to encourage commercialization and value addition to agricultural produce. Processed Fruits etc. and packaging which enhance shelf life of food products. BACKGROUND OF FOOD AND INNS Ltd . The food processing industry provides vital linkages and synergies between industry and agriculture. FOODS AND INNS Ltd began its fruit processing operations in early 70s. Western Europe. grain processing and other consumer product groups like confectionery. fisheries. plantation. India's food processing sector covers a wide range of products fruit and vegetables. sorting. o After demonstrated success in developing a strengthening the market development of mangoes. USA. PFID India liaisons can easily adapt this approach to the further development of other fruit and vegetable products in India. Middle East etc. The Food Processing Industry sector in India is one of the largest in terms of production. consumption. export and growth prospects. Soya-based products. FOODS AND INNS Ltd has established it's presence as a reliable and competitive exporter to Coca Cola.such as Sesame Seeds. Far East. The predominant mango varieties grown in India make this product unique in country and abroad. FOOD PROCESSING Food processing involves any type of value addition to agricultural or horticultural produce and also includes processes such as grading. chocolates and cocoa products. alcoholic beverages. . high protein foods etc. mineral water. for minimizing pre/post harvest wastage. COMPANY PROFILE HISTORY OF FOOD AND INNS Ltd.consumer preferences. The government has accorded it a high priority. generating employment and export growth. with a number of fiscal relief¶s and incentives. milk and milk products. The division combines people with vast experience in agric-trading with the FOODS AND INNS Ltd Group¶s credibility to justify its premier standing in the trading arena.However fruit processing operations have been given a special thrust since the last season with an emphasis on developing strategic partnerships across the value chain especially fruit procurement and processing.
. Concentrates and Fresh Fruits FOOD AND INNS Ltd was started keeping in mind the local farming community wealth. FOODS AND INNS Ltd believes in empowering farmers by providing technical assistance from research institutes in the food industry to support the farmers in achieving better quality and higher yields by developing the gardening and harvesting techniques. FOOD AND INNS Ltd (FIL) is a 100% Export Oriented Unit (EOU) processing Tropical Fruit Purees. PRINCIPAL MANUFACTURING DIVISIONS AND PRODUCT RANGE DIVISION PRODUCT RANGE Aseptic Canning Purees and concentrates of Mango. In its effort to be a forerunner in the chosen areas of business in terms of best practices in quality and technology. Guava & Papaya Institutional packs of mango products. the mango belt in India. Guava & Papaya Paste. thereby minimizing the fruit handling damages and high value realizations. frozen IQF vegetables & frozen Indian snacks like Samosa and Ptras. FOODS AND INNS LTD is encouraging farmers to mobilize the fruits directly to the factory. the industry and the nation in a phased manner. Consumer packs of Indian vegetables & catering packs for mango Chutneys. Further to educating farmers with latest horticultural techniques.Situated at Chittoor in Andhra Pradesh. Frozen Frozen fruit purees & IQF chunks. FIL plans to benefit armors. The farming community is an integral part and forms the backbone of the organization.
innovative R & D and Lab facilities. IIM Professor Director Mr. With the back up of technical and managerial support staff. M. the doyen guidance of Mr.D.M.160 Crores (USD 16 MIO) giving the status of government recognized EXPORT HOUSE. Tomato and beat root. B. Orange.Maniar Mr.5 crores (USD1.C.No Name of the Director 1 2 3 4 5 6 Mr.1 MIO) to Rs.K.. looking after the routine affairs of the company. is the brain and brawl for taking the company¶s turnover from Rs. Trivedi Mr.Spray Drying Fruit powder like Mango.Utsav Dhupelia Mr. the state of art technology implementation..Raymond Simkins Mr. Banana.Utsav coupled with the contribution of other directors. BOARD OF DIRECTORS S. Dalal Director Solicitor Foreign Director Solicitor Ex. PRODUCTS . Utsav Dhupelia . D. Engineer Mr. the company is poised for a steady and continuous growth graph moving upwards in all Para meters. a Chartered Accountant from U.B. D.
PRODUCTS OF FRUITS ALPHONSO TOTAPURI GUAVA PAPAYA PRODUCTS OF VEGETABLES FRUIT SEASONS Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Mango Papaya Guava .
spread over an area of 15 acres.Market Presence o o o o o o European Union United States of America Canada Australia Middle East including Iran & North Africa Japan & South Korea SAHER OF COUNTRIES MARKET FACILITY FOODS AND INNS Ltd processing facility is located in Chittoor. The facility currently has a tropical fruit Puree / Concentrate processing plant and the pack house for preparing the Fresh Fruits & Vegetables.Mizzen. INITIATIVES SPAN THE FOLLOWING DISCIPLINES . The plant has one of the India's single largest fruit processing lines -10 TPH ripen fruit processing with Aseptic Packaging. This place has been earmarked to host Integrated Food Complex of International standards. Italy to produce natural fruit pulps & concentrates. CUTTING EDGE TECHNOLOGY FOODS AND INNS Ltd plant is equipped with state-of-the-art fruit puree processing aseptic filling line of SIG.
PURE & CONCENTRATE FACILITY . Powered by priceless hands-on experience these professionals are upgrading themselves continuously to identify and introduce improved and innovative product offerings that would delight customers worldwide and comply with the leading global quality standards. o Two-stage sterilization to retain the natural flavor and aroma. EFFICIENT PLANT LAYOUT o Minimal drop in power and steam transfer. o Utility lines are routed outside the plant to keep the interiors free from dust accumulation. o Straight-line process flow design to maintain the hygiene and control in respective areas.o PLC operated equipments for better control over monitoring and operations with supervisory units. o High speed advanced Mono block aseptic filling machine supplied by SIG Mizzen. o Special food grade self-leveling epoxy flooring to maintain optimum hygienic conditions. o Integrated Enterprise Resources Planning system is in place to automate business processes and provide data for analysis and reporting. o Two stage washing of fruits to ensure HACCP quality requirement. VALUABLE INDUSTRIAL EXPERTISE FOOD AND INNS Ltd is backed with strong support and service from its team of highly qualified technical personnel and domain experts with perceptive knowledge and skill. o Curved corners and food grade epoxy painted walls to avoid dust accumulation and to facilitate easy washing. allowing a closer control on quality and operations. o Advanced high raise insulated roofing with double layer GI Sheeting with air extractors to maintain temperature inside the plant.
But. Bitter gourd etc. Water from all bore wells is collected in a sump. it needs a integrated& scientific approach for its management to use it so that undesirable wastage is avoided which helps us to save water for right utilization . Fresh fruits including mangoes. we are taking following steps at various locations of its use: . The line has a capacity to process 10 metric tones per hour ripened fruits. From there it is pumped to over head tank to supply to various locations of use. Without water there is no life on the earth. Spain. STAGE OF USE OF WATER TO THE BEST EFFECT IN OUR FACTORY Our main source of water is bore wells. water is becoming scarce year by year due to increase n its consumption in industries & agriculture sectors & indiscriminate use /wastage by human beings. Lemon. Egg plant. The water is potable. therefore. PACK HOUSE FOODS AND INNS (P) Ltd has a set up a Fresh fruit and Vegetable processing facility from Grief. bananas are processed along with tropical vegetables like Okra. To manage appropriately & conserve the water. The processing line is fully integrated and controlled by PLC. pre cooling chambers and cold storage to handle fresh fruits and vegetables. It is as important to the fruit processing industry as to the living being. FOOD AND INNS Ltd has commissioned the VHT facility. FOOD AND INNS Ltd is the first private organization to set up this facility in the country.The fruit processing aseptic line is from SIG-Mazzini of Italy. The facility also holds ripening chambers. VAPOUR HEAT TREATMENT To enable Fresh Mango exports to countries like Japan and Korea. This ensures irradiation of the fruit flies in the fresh fruit. WATER MANAGEMENT Water is an essential & precious natural resource. It is a nature¶s gift.
End User.o FRUIT WASHING The water is re-circulated after filtration up to it becomes dirty. understanding unique requirements and delivering value to select global customers. Expansion in 4th Aseptic manufacturing capacity. o STEAM GENERATION Water for boiler feeding is treated in water softener to reduce the hardness. Off-shore logistical service providers has made the supply chain process extremely competitive. Thrust of exports. OUR CERTIFICATIONS INCLUDE o HACCP (FOOD SAFETY CERTIFICATION) BY TUV. Blender-bottlers. USA o SURE GLOBAL FAIR (SGF) o HALAL CERTIFICATION CUSTOMER FOCUS Loyalty and a strong relationship in business are built out of years of experience in a particular industry. FUTURE PLANS y y y y Development of the Indian market for foods and inns. Given our renewed emphasis on this product line we are strengthening relationships in key markets across the buyer spectrum. The steam condensate of evaporator is recycled to boiler to save water & energy as condensate will have high temperature. GERMANY o ISO 9001:2000 (QUALITY MANAGEMENT SYSTEM) BY TUV. This water is chl0rinated to control the contamination by continuous dosing of chlorine in the washing tub. FOODS AND INNS Ltd expertise in the business and its contacts with Agents\Brokers. . Use of IT as a tool to further Business goals. GERMANY o KOSHER BY STAR-K.
2. SECONDRY DATA: Secondary Data are already present one and it is second hand information. In this study.y Setting up of a Central R&D lab. 3. journals & websites etc. Company records related to financial management. 4.. METHODOLGY The data is of two type: y Primary data y Secondary data PRIMARY DATA: Personal interview and discussion was conducted for the collection of data. From financial department of the company retaining to the last 4 years. . Financial statement of the company. newspaper. We collect through books magazines. Backward integration for improved quality of raw materials using contract farming/ organic cultivation. the secondary data was collected from the company like 1. Annual reports of the company during 2004-2008.
From various financial management next books. OBJECTIVES 1.5. To analyze the changes in assets and liabilities from the end of one period of the time to the end of another period of time 2. 5. 4. To know various needs for which funds were obtained during a particular period based in which these funds where employed. To understand flow of funds in current or non-current accounts. To find out the sources from which additional funds were derived and the use to which their sources were put. . To analyze the changes of financial position of Foods and Inns Limited enterprises between two dates. 3.
The basic purpose of the funds flow statement is to reveal the changes in the .SCOPE OF THE STUDY The present study focuses as sources of funds and application of funds for a period of time. The term funds used here means working capital that is the excess of current assets over current liabilities. The study is confirmed to find out the changes in the financial position of the Foods and Inns Limited between the beginning and ending financial date. This funds flow statement is a statement which indicates various means by which the funds have been obtained during a certain period and the ways to which these funds have been used during the period. It is an essential tool for the financial analysts and is of primary importance to the financial management. It is a technical device designed to analyze the changes in the financial condition of the business enterprises between two dates. Now a days it is being widely used by the financial analyst credit granting institutions and financial managers.
It cannot reveal continuous changes. It helps in the analysis of financial operations. It helps in the formation of realistic dividend policy.working capital on the two balance sheet dates. LIMITATIONS 1. 4. 2. It helps in the proper allocation of resources. It should remember that a funds flow statement is not a substitute of an income statement or a balance sheet. The study based on the available annual reports and internal information only . It helps in appraising the use of working capital and finally it acts as future guide. It provides only some additional information as regards changes in working capital 3.
288 7.354 5.714 25.990 2.06.561 4.293 62.500 10.76.22.865 2.AC.37.11.622 18.104.22.168.A Current Liabilities(C.L): Current Liabilities Provisions 7.06.48.53.C) (C.debtors Cash & bank b/s Loans & Advances Investment Total C.13.714 9.L) 17.62.707 22.214.171.124.43.97.773 3.714 Increase in W.915 56.12.24.STATEMENT OF CHANGES IN WORKING CAPITAL Particulars 2004 2005 Effect on Working Capital Increase Decrease Current Assets(C.48.207 126.96.36.199.C TOTAL 188.8.131.52.184.108.40.206.98.12.02.00.058 .A): Inventories S.08.558 8.66.000 220.127.116.11.507 18.104.22.1688 7.507 25.658 34.58.L Net Working Capital(W.22.214.171.1245 74.565 Total C.200 126.96.36.1998 9.27.293 188.8.131.523 12.58.02.30.67.93.668 12.851 184.108.40.206.293 25.665 2.500 87.
220.127.116.11 Particulars 2005 2006 Effect on Working .54.25.41. The firm utilizing this fund for the purchasing of fixed assets.586 ---- Amount 5.56. the main sources of funds are secured and unsecured loans.593 Interpretation: Comparing the year 2004 and 2005 the statement of changes in working capital shows the increasing balance. The financial position of FOODS AND INNS LTD in this particular year is good STATEMENT OF CHANGES IN WORKING CAPITAL TABLE 4. As a result the funds flow statements.39.19. In the particular year the current assets are increased then the current liabilities.54.2 Sources Reserves & Surplus Deferred Tax Liability Secured &Unsecured Loans Miscellaneous Deferred Tax Assets Capital W-I-P Decrease in Working Capital Amount Applications 2.963 10.12.675 Purchase of Fixed Asset 27.07.507 13. differed tax asset and liabilities.1 FUNDS FLOW STATEMENT FOR THE YEAR 2005 TABLE NO: 4.81.TABLE NO: 4.593 13.41.968 75.060 53.086 7.02.341 Increase in Working Capital 4.
18.104.22.168.22.214.171.1248 126.96.36.1994 28.918 188.8.131.52.184.108.40.206.601 .Capital Increase Current Assets(C.11.L Net Working Capital(W.06.70.L): Current Liabilities Provisions Total C.558 1.772 220.127.116.11.02.82.017 49.38.27.A): Inventories S.716 84.A-C.18.104.22.168.714 28.94.050 25.658 22.214.171.1244 2.166 Total C.820 36.21.debtors Cash & bank b/s Loans & Advances 12.601 126.96.36.1995 42.943 1.43.C 9.865 2.07.608 10.70.76.248 2.53.938 4.915 1.055 59.53.685 4.L) Increase in W.280 Decrease Investment 2.A Current Liabilities(C.851 13.773 8.30.140 188.8.131.52.184.108.40.206 6220.127.116.11.C) (C.310 87.65.248 18.104.22.168.48.293 12.354 12.63.
57.43.06.70.355 Increase in Working Capital 2.19.989 3.748 2.100 Capital W-I-P 11.01.534 3.19.70.00.856 1.4 Sources Reserves & Surplus Deferred Tax Liability Secured &Unsecured Loans Miscellaneous Decrease in Working Capital Amount 1.989 Interpretation: .88.82.385 1.FUNDS FLOW STATEMENT FOR THE YEAR 2006 TABLE NO : 4.000 ---- Applications Amount Purchase of Fixed Asset 22.214.171.124.11.
088 1.A Current Liabilities(C.126.96.36.1991 13.debtors Cash & bank b/s Loans & Advances Investment Total C.188.8.131.52.12.C 12.485 31.74.252 184.108.40.206.38.08.04.97.82.716 8.95.5 Particulars 2006 2007 Effect on Working Capital Increase Decrease Current Assets(C.A): Inventories S.Comparing the year 2005 and 2006 the statement of changes in working capital shows the increasing balance.77.310 10.AC. The firm utilizing this fund for the purchasing of fixed assets and capital WIP and the financial position of FOODS AND INNS LTD in this particular year is good.685 3.C) (C.793 220.127.116.11.18.104.22.1686 16. In the particular year the current assets are increased then the current liabilities.22.214.171.124.055 2.758 12. STATEMENT OF THE CHANGES IN WORKING CAPITAL TABLE NO: 4.000 2.526 2.805 8.011 FUNDS FLOW STATEMENT FOR THE YEAR 2007 .85.89.608 2.180 1.011 126.96.36.199.39.04.733 2.75.911 18.L) Increase in W.12.L): Current Liabilities Provisions Total C.188.8.131.523 6.00.222 2. differed tax liabilities.166 44.918 13.938 14.06.024 3.671 1.82.248 31.963 2. the main soureces of funds are secured and unsecured loans.772 16.06.733 31.60.485 184.108.40.206.16.07.28.47.86. As a result the funds flow statements.220.127.116.11.14.97.685 18.104.22.168.90.L Net Working Capital(W.
616 Capital W-I-P 22.214.171.1245 .08.778 ------- Applications Amount Purchase of Fixed Asset 126.96.36.199.52.180 14.06.A): Inventories S.213 2.28.130 96.17.000 3.71.84. differed tax liabilities.37.81.783 Increase in Working Capital 2.29.87.00.13.02.77.838 57.TABLE NO: 188.8.131.52 Sources Reserves & Surplus Deferred Tax Liability Secured &Unsecured Loans Miscellaneous Decrease in Working Capital Amount 184.108.40.206.884 Interpretation: Comparing the year 2006 and 2007 the statement of changes in working capital shows the increasing balance.04.884 8.87.726 4.661 2.98.250 8.89. In the particular year the current assets are increased then the current liabilities. The firm utilizing this fund for the purchasing of fixed assets and capital WIP and the financial position of FOODS AND INNS LTD in this particular year is good Particulars 2007 2008 Effect on Working Capital Increase Decrease Current Assets(C.156 3.911 7.47. the main sources of funds are secured and unsecured loans. As a result the funds flow statements.220.127.116.11.51.939 18.104.22.1685 8.06.debtors Cash & bank b/s Loans & Advances Investment 16.84.311 50.268 5.132 77.024 19.71.685 2.44.
48.Total C.86.571 6.510 2.98.AC.18.196 1.64.00.80.538 decrease in W.41.061 9.86.229 Decrease in Working Capital 1.222 22.214.171.124.126.96.36.199.46.16.433 Deferred Tax Liability 34.86.L): Current Liabilities Provisions 44.214 Total C.C 1.82.196 31.74.8 Sources Amount Reserves & Surplus 2.55.7 FUNDS FLOW STATEMENT FOR THE YEAR 2008 TABLE NO: 4.48.734 Applications Purchase of Fixed Asset Amount 3.91.085 Secured &Unsecured Loans 8.00.A Current Liabilities(C.28.733 188.8.131.52.793 19.14.752 10.14.734 .L) 31.526 49.20.732 STATEMENT OF CHANGES IN WORKING CAPITAL TABLE NO: 4.196 184.108.40.206.220.127.116.11.733 11.86.L Net Working Capital(W.48.01.01.513 Increase in Working Capital -------- 31.704 18.104.22.1682 11.01.733 29.482 13.32.C) (C.00.
Apart to this the surplus funds also increased. . The working capital is increased year by year except last year. In the particular year the current assets are decreased then the current liabilities.Then in 2006&2008 the company used low funds for purchasing of fixed assets. The company receives the secured and unsecured loans indicate fluctuating position. 5. The financial position of FOODS AND INNS LTD in this particular year is good FINDINGS 1.Then it fall down. The company was highly purchased the fixed assets in the year 2005&2007. the main sources of funds are secured and unsecured loans. 2. 4. It is founded that the company is holding share capital stably.Interpretation: Comparing the year 2007 and 2008 the statement of changes in working capital shows the decreasing balance. The firm utilizing this fund for the purchasing of fixed assets. 3. As a result the funds flow statements. differed tax liabilities. The differ tax liability is increased in 2005-2006.
6. The working -in. The investment is increased year by year up to 2007. y Regularly use funds in purchase of fixed asset it make profitability. The working capital is increased in 2005 to 2007 with a low variation in the year the working capital will be decreased. In 2008 it is decreased. It is to require raising short terms funds to solve the financial problems. 7. y Tax liabilities should also be maintained in a standard manner. . y In 2008. the statement shows decreasing working capital in the company.progress rapidly increased by large variation with the amount. SUGGESTIONS y The company may increase their share capital it helps to get more strength in financial position. 8.
I.The over all performance of FOODS &INNS PVT LTD is very good.CONCLUSION It can be concluded that in FOODS & INNS PRIVATE LTD The working capital in increased year by year except last year. secured& unsecured loans. . And its main sources of funds are deferred tax liability. The main applications of funds are purchase of fixed assets & capital W.P.
22.214.171.1248 7.326 2.718 126.96.36.199.161 188.8.131.525 4.16.Income statement of Foods and Inns Limited for the years 31-3-2004 and 31-3-2008 (Rupees) Particulars Net sales (-)Cost of goods sold Gross profit (-)Operating expenses 31-3-2004 31-3-2005 31-3-2006 31-3-2007 31-3-2008 61.160 3.471 (184.108.40.206.616 48.00.792 4.51.020 54.528 1.313 220.127.116.11.32.35.258 18.104.22.168.40.75.44.045 55.84.08.636 22.214.171.1241 126.96.36.199.188.8.131.52.13.142 31.511 184.108.40.206.48.838 4.65.385 2.52.384 1.81.870 220.127.116.11.92.84.537) 7.204 18.104.22.1682 22.214.171.1247 2.39.754 95.798 11.406 126.96.36.1992 1.043 188.8.131.52.50.54.868 9.955) 3.969 184.108.40.2069) 2.581 1.843 (220.127.116.11.168 30.01.651 44.297 18.104.22.1684 22.214.171.124.22.811 126.96.36.199.00.06.20.04.56.74.451 188.8.131.52.588 16.62.894 3.03.73.66.097 184.108.40.206.19.01.640 4.17.033 68.76.461 220.127.116.11.18.36.574 .35.31.02.351 53.90.076 18.104.22.168.82.571) 2.49.863 22.214.171.1245 1.92.709 1.63.02.595 3.308 126.96.36.1993 39.871 188.8.131.52 184.108.40.206 3.160 220.127.116.11 (+)Operating income Operating profit (-)Non-operating expenses (+)Non-operating income Profit / loss before tax (-)Provision for tax Profit / loss after tax (1.76.562 (1.
481 27.827 33.93.361 19.09.36.Balance Sheet of Foods and Inns ltd.64.08.793 12.17.689 18.104.22.168.685 95.865 2.Deffered tax assets 5.74.044 27.29.726 4.275 22.214.171.124.180 14.00.156 Sundry debtors 126.96.36.1997 46.968 188.8.131.528 7. provisions: 24.000 184.108.40.206.685 77.938 220.127.116.11.62.42.668 12.Fixed assets Capital work in progress TOTAL FA 3.90.Miscellanious expenditure TOTAL ASSETS(1+2+3+4+5) LIABILITIES: 6.261 8.33.Current liabilities.18.104.22.168.915 22.214.171.124.716 8.77.08.81.Invesments 4.44.950 126.96.36.199.024 19.08.31.571 41.658 16.841 188.8.131.52.977 94.for the year 31-3-2004 and 31-3-2008 (Rupees) Particulars 31-3-2004 31-3-2005 31-3-2006 31-3-2007 31-3-2008 ASSETS: 1.311 TOTAL CA 2.38.490 10.78.31.75.499 .184.108.40.206.95.515 220.127.116.111 7.804 18.104.22.168.450 22.214.171.124.74.Currentassets loans&advances Inventories 7.330 47.293 1.07.055 2.67.185 34.665 75.95.042 20.747 126.96.36.199.661 Cash&bank balances 74.685 69.773 8.81.05.067 188.8.131.520 26.354 184.108.40.206.220.127.116.119 Loans & advances 18.104.22.168.22.214.171.124.02.175 61.30.772 16.060 126.96.36.199.44.97.06.405 2.
188.8.131.52.104 184.108.40.206.74.72.629 220.127.116.11.18.104.22.168.704 62.793 22.214.171.124.48.798 126.96.36.1991 13.Loan funds: Secured loans Unsecured loans TOTAL 8.515 1.200 188.8.131.52.500 10.M.20.55.918 13.Deffered tax liabilities TOTAL LIABILITIES(6+7+8+9) 7.499 BIBLIOGRAPHY The following books and websites have been referred by me during my project work.000 9.293 12.19.160 184.108.40.206.185 1.235 220.127.116.11.58.558 18.104.22.168.22.214.171.124.34.153 1.36.701 126.96.36.199 19.92.22.05.431 188.8.131.52.896 3.571 1.64.910 3.398 34.86. Financial Management I.330 1.94.200 16.200 184.108.40.206.571 220.127.116.11.58.13.200 24.500 87.54.368 29.60.06.50.75.64.924 48.24.616 77. 18.104.22.168.83.145 40.381 4.28.65.06.22.214.171.124.55.304 27.231 25.510 126.96.36.199.16.27.998 1.257 30.Share holders funds: Share capital Reserves & surplus TOTAL 188.8.131.52.184.108.40.206.310 10.028 44.200 14.429 15.772 23.Current liabilities Provisions TOTAL CL 7.214 18.93.76.07.056 33.15.PANDY .12.963 62.960 19.82.608 220.127.116.118 69.688 18.104.22.168 3.
2.COM . Financial Management KHAN AND JAIN 3.FOODSANDINNS.COM WWW.KHAN WEB SITES WWW.GOOGLE. Management Accounting M.Y.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.