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.
cost and control. 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. where gone statement. 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´. 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. 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. Funds flow statement is called by various names such as sources and application of funds. As funds can be obtained from different sources so procurement of funds is considered as an important problem of business concerns. Funds procured from different sources have different characteristics in terms of risk. It is a statement showing sources and uses of funds for a period of time. funds received and . Financial management constitutes risk. "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". 2. 4. cost and control. 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. 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. The term flow of funds means transfer of economic and values from one asset of equity to another. 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¶. it is said to be an application or outflow of funds. where came in and where gone out statement.According to Phillippatus. 3. 5. where got. sources and uses of funds. statement of changes in financial position. movement of working capital statement movement of funds statement. summary of financial operations. PROCUREMENT OF FUNDS 1.
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). Changes in cash are more important and relevant for financial management than the working capital. the profit and loss account is prepared to compute net profit. Generally. It can not reveal continuous changes. This fact . Net profit can also be computed by comparing the balance sheet at beginning and the end of the period. 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. 4. It provides only some additional information as regards changes in working capital. It is essential historic in nature and projected funds flow statement cannot be prepared 5.disbursed statement. funds statement etc. 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. 2. LIMITATIONS OF FUNDS FLOW STATEMENT The funds flow statement has a number of uses. It should be remembered that a funds flow statement is not a substitute of an income statement or a balance sheet. funds generated and expended statement. arrangement of data given in the financial statements. how ever it has certain limitations also which are listed below: 1. 3. It is not an original statement but simply.
It is a flow statement. The generally accepted convention is to show one year events in the profit and loss account. The earning capacity and potential of a firm are reflected by its profit and loss account. Thus. as measured by its resources and obligations. Since the profit and loss account reflects the results of operations for a period 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. BALANCE SHEET Balance sheet is the most significant financial statement. The profit and loss account is a ³score board´ of the firms performance during a period of time. liabilities and owners equity for a business firm as on a specific date. 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. Net profit (or net loss) for a period is equal to the change in owner¶s equity during that period. However. It provides a snapshot of the financial position of the firm at the firms accounting period. the difference in beginning and ending owner¶s equity is the net profit (or net loss). creditors. as a starting point. the balance sheet reveals the firms financial position on specific date.emphasizes the role of the profit and loss account as a link between consecutive statements of financial position. 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 . In the language of accounting balance sheet communicates information about assets. liabilities and owners equity at a point of time. Thus. 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. It indicates the financial condition or the state of affairs of a business at a particular moment of time. The balance sheet is a stock or status statement as it shows assets.
c. f. g. h. 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 . 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.Profit & loss account Capital reserve Capital redemption reserve Provision for depreciation against fixed assets Appropriate of profits a. e. d.
Broadly speaking the preparation of a funds flow statement consists of two parts: 1. USES. Raw materials Work in process Stores and spares Finished goods Provision for taxation if it does not amount to appropriation of profits. An increase in current assets increases working capital. An increase in current liabilities decreases working capital and. 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. A decrease in current assets decreases working capital. c. 2. b. A decrease in current in current increases working capital.Provision against current assets Inventories or stocks such as a. 4. 2. d. 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. Working capital = Current assets ± Current liabilities 1. Statements of sources and application of funds. Statement or Schedule of changes in working capital funds. 3.
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 .y y y y y y It throws light on many perplexing questions of general interest. It helps in the formation of realistic dividend policy. It helps in the proper allocation of resources. It helps knowing the overall credit worthiness of a firm. It helps in a appraising the use of working capital.
Total_______ Applications: a) Payment of share capital b) Repayment of institutional loans. Sale of Investment and other fixed assets E. Institutional Loans D. . c) Redemption of debentures d) Purchase of Investment and other fixed assets. Issue of share capital B. Issue of Debenture C. Trading profit or funds from operations.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.
these observations indicate that. 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. . Data from 1995 indicated that India exported 37. Additionally. Collectively. Mango is in strong demand within the worldwide retail sector.2 thousand metric tons of mango juice. Data from 2001 indicated that India exported 3.2 thousand metric tons of mango juice.4% of mango production during this time frame. but also imported 2.56 million metric tons in 2003. mango is a preferred fresh fruit within the Indian domestic market. or only about 0. Moreover. Despite this large mango production. 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. these factors indicate a strong opportunity to position Indian mango and mango products to meet a growing international demand. exports of fresh mangos from India averaged approximately 42.4 thousand metric tons.7 thousand metric tons of mango pulp. The total market value of Indian mango and mango pulp represents 25% of the value of agricultural and processed food products exported by India. This accounts for 41% of the estimated worldwide mango production of 25. Collectively. the consumption growth for mangos in the United States and Europe has average 10±15% per year during the last 5 years. India is a minor exporter of mango and mango products at this time. as well as globally. including leading varieties like Alphonso.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. During the five±year period from 1998±2002.
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.despite being by far the world¶s largest mango producer. processors. One barrier to efficient development of the Indian mango industry is an exceedingly complex supply chain. and a more efficient supply chain. Associated with this inefficient aggregation process is the application of numerous commissions as fresh agricultural products trade hands. 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. 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. testing facilities. and Indian government organizations. These observations with mango are consistent with aggregate data available on Indian fruit and vegetable exports. these steps will help stabilize prices. as well as employment of certification systems. PFID²F&V is working to strengthen the small and medium mango grower base by providing capacity building at all levels. Furthermore. INDIA MANGO & MANGO PULP INDUSTRY DEVELOPMENT Through partnerships with mango growers. Within the value chain. will lead to better yields. and logistics management. PFID²F&V partnerships will also help identify and facilitate resources necessary for enhancing the mango supplychain such as cold storage facilities. pesticide use in accordance with regulations. export organizations. 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. Ultimately. improved packing and grading facilities. and development the farmer base at commercial and social levels. increase farmer incomes. . India exports less than 1% of its mango crop as fresh mangos or processed mango products. This report concludes that it is imperative to streamline the mango supply chain in order to reduce wastage and raw material costs. (Sources: India Ministry of Food Processing Industries and Rambo bank Report). among others.
as there is no testing facility in Krishnagiri Farmers are not getting fair price. only 1% of the total mango production in India is exported. just over one year from project start-up.000 tones Farmers have to go to Bangalore. together with our two India-based coordinators. Thiagarajan. notable results are beginning to show in the form on increasing contributions from partnership members.000 tones by 2010 Mango is raised in 36. now. o PFID partnerships can assist mango growers and processors in developing an "India" brand image for fresh mango and processed mango products that meet . Dr. GOALS OF INDIA MANGO MARKET DEVELOPMENT Currently. 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. 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.MANGO PULP INDUSTRY HOPES o o o o o Mango pulp production to reach 75. 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. 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. 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 hectares in Krishna Giri district Mango pulp processed annually is 50. MSU/PFID-F&V. PFID²F&V will facilitate the development and implementation of quality and safety standards which will meet the demands of the export market.
consumption.consumer preferences. The division was set up in 1967 and since then has handled a wide range of products . India's food processing sector covers a wide range of products fruit and vegetables.such as Sesame Seeds. with a number of fiscal relief¶s and incentives. . PFID India liaisons can easily adapt this approach to the further development of other fruit and vegetable products in India. and packaging which enhance shelf life of food products. milk and milk products. fisheries. mineral water. to encourage commercialization and value addition to agricultural produce. for minimizing pre/post harvest wastage. generating employment and export growth. sorting. plantation.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. grain processing and other consumer product groups like confectionery. alcoholic beverages. COMPANY PROFILE HISTORY OF FOOD AND INNS Ltd. Middle East etc. FOOD PROCESSING Food processing involves any type of value addition to agricultural or horticultural produce and also includes processes such as grading. Far East. The Food Processing Industry sector in India is one of the largest in terms of production. BACKGROUND OF FOOD AND INNS Ltd . Western Europe. o After demonstrated success in developing a strengthening the market development of mangoes. high protein foods etc. The predominant mango varieties grown in India make this product unique in country and abroad. Soya-based products. chocolates and cocoa products. FOODS AND INNS Ltd began its fruit processing operations in early 70s. meat and poultry. Processed Fruits etc. The food processing industry provides vital linkages and synergies between industry and agriculture. FOODS AND INNS Ltd has established it's presence as a reliable and competitive exporter to Coca Cola. 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. The government has accorded it a high priority. export and growth prospects. USA.
thereby minimizing the fruit handling damages and high value realizations. the mango belt in India. . the industry and the nation in a phased manner. Further to educating farmers with latest horticultural techniques. Frozen Frozen fruit purees & IQF chunks.Situated at Chittoor in Andhra Pradesh. FIL plans to benefit armors. FOOD AND INNS Ltd (FIL) is a 100% Export Oriented Unit (EOU) processing Tropical Fruit Purees. Consumer packs of Indian vegetables & catering packs for mango Chutneys. PRINCIPAL MANUFACTURING DIVISIONS AND PRODUCT RANGE DIVISION PRODUCT RANGE Aseptic Canning Purees and concentrates of Mango. frozen IQF vegetables & frozen Indian snacks like Samosa and Ptras. In its effort to be a forerunner in the chosen areas of business in terms of best practices in quality and technology. The farming community is an integral part and forms the backbone of the organization. FOODS AND INNS LTD is encouraging farmers to mobilize the fruits directly to the factory. Guava & Papaya Paste. Guava & Papaya Institutional packs of mango products. 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.
Utsav coupled with the contribution of other directors. M. is the brain and brawl for taking the company¶s turnover from Rs. B. Tomato and beat root. BOARD OF DIRECTORS S.160 Crores (USD 16 MIO) giving the status of government recognized EXPORT HOUSE.No Name of the Director 1 2 3 4 5 6 Mr. the doyen guidance of Mr. a Chartered Accountant from U.1 MIO) to Rs. Orange. looking after the routine affairs of the company. D.C.. D. IIM Professor Director Mr.Utsav Dhupelia Mr. the state of art technology implementation.M. Dalal Director Solicitor Foreign Director Solicitor Ex.D.. PRODUCTS . Utsav Dhupelia .5 crores (USD1. Engineer Mr.B. Banana. innovative R & D and Lab facilities.Spray Drying Fruit powder like Mango. With the back up of technical and managerial support staff.Maniar Mr. Trivedi Mr.K. the company is poised for a steady and continuous growth graph moving upwards in all Para meters.Raymond Simkins Mr.
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 .
This place has been earmarked to host Integrated Food Complex of International standards. 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.Mizzen. 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. The facility currently has a tropical fruit Puree / Concentrate processing plant and the pack house for preparing the Fresh Fruits & Vegetables. 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.
o Integrated Enterprise Resources Planning system is in place to automate business processes and provide data for analysis and reporting. o Two-stage sterilization to retain the natural flavor and aroma. o Utility lines are routed outside the plant to keep the interiors free from dust accumulation.o PLC operated equipments for better control over monitoring and operations with supervisory units. o Curved corners and food grade epoxy painted walls to avoid dust accumulation and to facilitate easy washing. PURE & CONCENTRATE FACILITY . o Special food grade self-leveling epoxy flooring to maintain optimum hygienic conditions. o Straight-line process flow design to maintain the hygiene and control in respective areas. o Two stage washing of fruits to ensure HACCP quality requirement. o Advanced high raise insulated roofing with double layer GI Sheeting with air extractors to maintain temperature inside the plant. EFFICIENT PLANT LAYOUT o Minimal drop in power and steam transfer. allowing a closer control on quality and operations. 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 High speed advanced Mono block aseptic filling machine supplied by SIG Mizzen. 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.
Egg plant. bananas are processed along with tropical vegetables like Okra. The processing line is fully integrated and controlled by PLC. But. pre cooling chambers and cold storage to handle fresh fruits and vegetables. The line has a capacity to process 10 metric tones per hour ripened fruits. FOOD AND INNS Ltd is the first private organization to set up this facility in the country. VAPOUR HEAT TREATMENT To enable Fresh Mango exports to countries like Japan and Korea. Fresh fruits including mangoes. The water is potable. Lemon. STAGE OF USE OF WATER TO THE BEST EFFECT IN OUR FACTORY Our main source of water is bore wells. Spain. 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 . It is a nature¶s gift. It is as important to the fruit processing industry as to the living being. we are taking following steps at various locations of its use: . Water from all bore wells is collected in a sump. The facility also holds ripening chambers. To manage appropriately & conserve the water. water is becoming scarce year by year due to increase n its consumption in industries & agriculture sectors & indiscriminate use /wastage by human beings. Bitter gourd etc. This ensures irradiation of the fruit flies in the fresh fruit. PACK HOUSE FOODS AND INNS (P) Ltd has a set up a Fresh fruit and Vegetable processing facility from Grief. From there it is pumped to over head tank to supply to various locations of use. therefore. WATER MANAGEMENT Water is an essential & precious natural resource.The fruit processing aseptic line is from SIG-Mazzini of Italy. FOOD AND INNS Ltd has commissioned the VHT facility. Without water there is no life on the earth.
Off-shore logistical service providers has made the supply chain process extremely competitive. 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. understanding unique requirements and delivering value to select global customers. The steam condensate of evaporator is recycled to boiler to save water & energy as condensate will have high temperature. Blender-bottlers. OUR CERTIFICATIONS INCLUDE o HACCP (FOOD SAFETY CERTIFICATION) BY TUV. 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.o FRUIT WASHING The water is re-circulated after filtration up to it becomes dirty. o STEAM GENERATION Water for boiler feeding is treated in water softener to reduce the hardness. FOODS AND INNS Ltd expertise in the business and its contacts with Agents\Brokers. Expansion in 4th Aseptic manufacturing capacity. End User. . Given our renewed emphasis on this product line we are strengthening relationships in key markets across the buyer spectrum. Use of IT as a tool to further Business goals. GERMANY o KOSHER BY STAR-K. FUTURE PLANS y y y y Development of the Indian market for foods and inns. Thrust of exports.
In this study. 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. newspaper. Financial statement of the company. SECONDRY DATA: Secondary Data are already present one and it is second hand information. 3. the secondary data was collected from the company like 1. Company records related to financial management. Backward integration for improved quality of raw materials using contract farming/ organic cultivation. 4.y Setting up of a Central R&D lab. journals & websites etc. From financial department of the company retaining to the last 4 years.. We collect through books magazines. 2. Annual reports of the company during 2004-2008. .
To understand flow of funds in current or non-current accounts. . To analyze the changes of financial position of Foods and Inns Limited enterprises between two dates.5. 5. 3. From various financial management next books. 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. To find out the sources from which additional funds were derived and the use to which their sources were put. To know various needs for which funds were obtained during a particular period based in which these funds where employed. OBJECTIVES 1. 4.
It is an essential tool for the financial analysts and is of primary importance to the financial management. 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. The basic purpose of the funds flow statement is to reveal the changes in the . It is a technical device designed to analyze the changes in the financial condition of the business enterprises between two dates.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. 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. Now a days it is being widely used by the financial analyst credit granting institutions and financial managers.
4. It cannot reveal continuous changes.working capital on the two balance sheet dates. It helps in the formation of realistic dividend policy. It helps in appraising the use of working capital and finally it acts as future guide. It helps in the analysis of financial operations. It should remember that a funds flow statement is not a substitute of an income statement or a balance sheet. LIMITATIONS 1. It provides only some additional information as regards changes in working capital 3. It helps in the proper allocation of resources. The study based on the available annual reports and internal information only . 2.
06.500 10.668 12.97.485 74.293 188.8.131.52.76.31.L): Current Liabilities Provisions 184.108.40.206.507 7.53.622 12.AC.865 2.851 1.11.558 8.24.707 36.58.08.058 .773 3.93.561 4.43.714 25.00.98.81.89.74.L) 17.06.73.12.80.500 87.60.293 220.127.116.11.64.L Net Working Capital(W.48.37.288 7.858 18.104.22.168.12.200 26.507 25.85.565 Total C.C) (C.62.51.658 34.A Current Liabilities(C.STATEMENT OF CHANGES IN WORKING CAPITAL Particulars 2004 2005 Effect on Working Capital Increase Decrease Current Assets(C.293 22.214.171.1244 9.22.48.debtors Cash & bank b/s Loans & Advances Investment Total C.26.793 12.354 5.95.714 Increase in W.A): Inventories S.915 56.C TOTAL 7.39.02.53.858 126.96.36.199.89.665 188.8.131.52.31.02.000 9.207 25.19.990 2.
086 7.54.963 10.19.22.507 13.41.39. differed tax asset and liabilities. The financial position of FOODS AND INNS LTD in this particular year is good STATEMENT OF CHANGES IN WORKING CAPITAL TABLE 184.108.40.206.060 53.54. In the particular year the current assets are increased then the current liabilities.593 13. the main sources of funds are secured and unsecured loans. As a result the funds flow statements.593 Interpretation: Comparing the year 2004 and 2005 the statement of changes in working capital shows the increasing balance.675 Purchase of Fixed Asset 27.2 Sources Reserves & Surplus Deferred Tax Liability Secured &Unsecured Loans Miscellaneous Deferred Tax Assets Capital W-I-P Decrease in Working Capital Amount Applications 2.TABLE NO: 4.90.07.3 Particulars 2005 2006 Effect on Working . The firm utilizing this fund for the purchasing of fixed assets.81.968 75.02.56.586 ---- Amount 5.12.341 Increase in Working Capital 4.1 FUNDS FLOW STATEMENT FOR THE YEAR 2005 TABLE NO: 4.
565 42.140 12.293 12.166 Total C.220.127.116.111 .18.104.22.168.63.773 8.02.31.017 49.943 22.214.171.124.418 7.43.658 16.558 1.12.248 616.918 2.95.685 4.36.534 28.A-C.90.66.534 126.96.36.1995 1.97.248 2.82.772 15.60.L) Increase in W.30.050 25.Capital Increase Current Assets(C.07.29.938 4.43.L Net Working Capital(W.248 28.A): Inventories S.820 36.76.C) (C.82.31.716 188.8.131.52.601 61.C 184.108.40.206.33.851 13.06.11.53.A Current Liabilities(C.608 10.16.97.280 Decrease Investment 2.94.49.debtors Cash & bank b/s Loans & Advances 220.127.116.11.354 12.L): Current Liabilities Provisions Total C.310 18.104.22.168.865 22.214.171.124.714 28.82.89.055 59.66.70.
989 Interpretation: .4 Sources Reserves & Surplus Deferred Tax Liability Secured &Unsecured Loans Miscellaneous Decrease in Working Capital Amount 1.57.06.70.989 3.19.385 1.01.856 1.00.748 126.96.36.1995 Increase in Working Capital 188.8.131.524 184.108.40.206.11.FUNDS FLOW STATEMENT FOR THE YEAR 2006 TABLE NO : 4.000 ---- Applications Amount Purchase of Fixed Asset 94.100 Capital W-I-P 11.19.
220.127.116.11.40.74.L) Increase in W. As a result the funds flow statements. In the particular year the current assets are increased then the current liabilities.97.571 18.104.22.1682 22.214.171.124.30.75.011 FUNDS FLOW STATEMENT FOR THE YEAR 2007 .debtors Cash & bank b/s Loans & Advances Investment Total C.49.685 42.726 16.89.526 126.96.36.199.12.86.72.06.938 14.L Net Working Capital(W.84.12.97.000 2.166 44.310 10.12.024 3.13.Comparing the year 2005 and 2006 the statement of changes in working capital shows the increasing balance.055 2.608 2.86.671 1.733 2.00.90.98.86.485 31.685 3.84.5 Particulars 2006 2007 Effect on Working Capital Increase Decrease Current Assets(C.716 8.86. the main soureces of funds are secured and unsecured loans. 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.485 6.07.733 6.L): Current Liabilities Provisions Total C.14.06.95.82.248 31. STATEMENT OF THE CHANGES IN WORKING CAPITAL TABLE NO: 4.805 8.77.97.088 1.222 2.47.32.C) (C.A): Inventories S.55.95.20.C 12.08.918 13.82. differed tax liabilities.85.A Current Liabilities(C.252 9.97.733 31.911 188.8.131.528 184.108.40.206.04.78.60.963 220.127.116.113 28.AC.011 1.43.180 1.28.04.
TABLE NO: 4.69.84.06.77.30.685 2.37.04.000 3.130 96. differed tax liabilities.98.250 8.75.616 Capital W-I-P 74.6 Sources Reserves & Surplus Deferred Tax Liability Secured &Unsecured Loans Miscellaneous Decrease in Working Capital Amount 2.06.debtors Cash & bank b/s Loans & Advances Investment 16. As a result the funds flow statements.180 18.104.22.168 77.87.783 Increase in Working Capital 2.29.311 50.69.778 ------- Applications Amount Purchase of Fixed Asset 5.02.51.884 Interpretation: Comparing the year 2006 and 2007 the statement of changes in working capital shows the increasing balance.939 14.685 .17.024 22.214.171.124.71.41. the main sources of funds are secured and unsecured loans.156 3. In the particular year the current assets are increased then the current liabilities.08.726 126.96.36.199. 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.188.8.131.52.268 184.108.40.2065 8.33.A): Inventories S.661 2.884 8.13.213 2.47.838 57.00.75.93.44.911 7.52.
48.704 220.127.116.11.01.196 18.104.22.168.752 10.93.86.86.510 2.571 6.32.229 Decrease in Working Capital 1.80.L) 31.732 22.214.171.124.C 1.48.734 .513 Increase in Working Capital -------- 31.00.733 29.74.061 126.96.36.199.16.01.7 FUNDS FLOW STATEMENT FOR THE YEAR 2008 TABLE NO: 4.80.00.86.14.222 19.793 19.C) (C.00.22.433 Deferred Tax Liability 34.733 11.12.538 decrease in W.L): Current Liabilities Provisions 44.64.Total C.188.8.131.52.90.A Current Liabilities(C.196 184.108.40.206.20.196 31.L Net Working Capital(W.482 13.733 31.14.214 Total C.98.86.27.085 Secured &Unsecured Loans 8.01.8 Sources Amount Reserves & Surplus 2.AC.48.82.732 STATEMENT OF CHANGES IN WORKING CAPITAL TABLE NO: 4.526 49.734 Applications Purchase of Fixed Asset Amount 3.
Then in 2006&2008 the company used low funds for purchasing of fixed assets.Interpretation: Comparing the year 2007 and 2008 the statement of changes in working capital shows the decreasing balance. In the particular year the current assets are decreased then the current liabilities. The working capital is increased year by year except last year. 5. 2. The financial position of FOODS AND INNS LTD in this particular year is good FINDINGS 1. . The firm utilizing this fund for the purchasing of fixed assets.Then it fall down. the main sources of funds are secured and unsecured loans. As a result the funds flow statements. Apart to this the surplus funds also increased. It is founded that the company is holding share capital stably. The company receives the secured and unsecured loans indicate fluctuating position. 4. 3. differed tax liabilities. The company was highly purchased the fixed assets in the year 2005&2007. The differ tax liability is increased in 2005-2006.
The working -in. y Tax liabilities should also be maintained in a standard manner. The working capital is increased in 2005 to 2007 with a low variation in the year the working capital will be decreased. The investment is increased year by year up to 2007. SUGGESTIONS y The company may increase their share capital it helps to get more strength in financial position.progress rapidly increased by large variation with the amount. the statement shows decreasing working capital in the company. 8.6. y In 2008. y Regularly use funds in purchase of fixed asset it make profitability. In 2008 it is decreased. It is to require raising short terms funds to solve the financial problems. . 7.
P. The main applications of funds are purchase of fixed assets & capital W. And its main sources of funds are deferred tax liability. . secured& unsecured loans.CONCLUSION It can be concluded that in FOODS & INNS PRIVATE LTD The working capital in increased year by year except last year.I.The over all performance of FOODS &INNS PVT LTD is very good.
220.127.116.11.033 68.925 1.92.651 44.03.84.04.616 48.57.595 3.32.75.00.581 1.811 18.104.22.1683 (22.214.171.124.74.70.562 (1.168 30.35.528 1.406 52.868 126.96.36.199.43.114 (+)Operating income Operating profit (-)Non-operating expenses (+)Non-operating income Profit / loss before tax (-)Provision for tax Profit / loss after tax (1.78.160 3.36.588 188.8.131.52.96.922 1.22.56.08.27.020 184.108.40.206.10.80.64.741 5.79.798 220.127.116.114 18.104.22.1689 1.06.88.48.83.160 22.214.171.1241 53.754 95.451 5.955) 3.461 126.96.36.199.188.8.131.52.825 184.108.40.206.220.127.116.11.18.104.22.168.90.21.838 4.80.00.47.16.18.204 52.42.02.258 97.49.709) 22.214.171.124.01.16.39.10.62.537) 7.19.278 7.640 126.96.36.1995 2.297 29.24.471 (4.384 1.894 3.483 39.71.792 188.8.131.529 184.108.40.2061) 2.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 61.96.574 .74.82.308 48.511 1.92.863 5.101 5.36.01.81.045 55.043 4.636 45.97.718 220.127.116.11.84.326 2.076 4.161 18.104.22.168.427 2.02.47.24.22.214.171.124.34.35.313 1.870 2.871 2.176 3.142 126.96.36.1992 5.55.84.097 46.
64.257 46.85.024 19.490 10.75.827 33.74.Current liabilities.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: 188.8.131.52.67.361 19.30.80.02.184.108.40.206 220.127.116.11.18.104.22.168.772 22.214.171.124.067 126.96.36.199.747 2.74.977 188.8.131.521 7.95.481 27.56.09.19.Fixed assets Capital work in progress TOTAL FA 3.661 Cash&bank balances 74.288 7.658 16.Deffered tax assets 5.71.685 77.330 47.938 184.108.40.2065 69.293 1.50.793 220.127.116.119 Loans & advances 12.499 .405 2.51. provisions: 24.00.93.59.311 TOTAL CA 2.915 1.060 6.841 32.726 4.42.180 14.156 Sundry debtors 4.804 3.08.08.685 95.81.055 2.689 18.104.22.1680 26.044 27.50.95.Balance Sheet of Foods and Inns ltd.450 2.16.773 8.93.354 12.39.08.Invesments 22.214.171.1240 126.96.36.199.29.07.38.968 47.31.77.Currentassets loans&advances Inventories 188.8.131.52.184.108.40.2065 220.127.116.11.665 75.06.571 41.63.716 18.104.22.1685 40.38.261 22.214.171.124.69.70.185 126.96.36.199.668 12.24.59.05.865 2.98.66.000 62.12.28.042 20.Miscellanious expenditure TOTAL ASSETS(1+2+3+4+5) LIABILITIES: 6.53.62.
56.910 3.58.028 44.500 188.8.131.52.54.64.924 48.28.200 24.50.368 184.108.40.206.46.84.153 220.127.116.111 4.056 18.104.22.168.963 62.05.918 13.40.06.Share holders funds: Share capital Reserves & surplus TOTAL 9.293 12.65.558 22.214.171.124.90.89.701 95.429 15.214 18.49.22.Deffered tax liabilities TOTAL LIABILITIES(6+7+8+9) 7.431 2.571 6.PANDY .126.96.36.199.27.76.704 62.60.398 188.8.131.52.65.104 184.108.40.206.220.127.116.112 23.499 BIBLIOGRAPHY The following books and websites have been referred by me during my project work.92.960 19.75.15.Current liabilities Provisions TOTAL CL 18.104.22.168.66.81.257 22.214.171.124.15.12.629 126.96.36.199.188.8.131.52.184.108.40.2065 1. 220.127.116.114 18.104.22.1686 77.06.60.608 22.214.171.124.12.67.235 37. Financial Management I.93.896 3.64.793 19.200 18.222 19.200 21.851 13.510 8.200 16.24.07.94.41.83.M.126.96.36.1998 1.500 10.141 3.61.145 40.688 3.231 188.8.131.52.571 1.13.310 10.74.98.000 184.108.40.206.330 1.798 220.127.116.11 14.Loan funds: Secured loans Unsecured loans TOTAL 8.160 1.185 1.64.348 69.
Financial Management KHAN AND JAIN 3.COM .2.Y.GOOGLE. Management Accounting M.KHAN WEB SITES WWW.COM WWW.FOODSANDINNS.