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SUMMER INTERNSHIP PROJECT

On

‘‘Working Capital Management’’

AT

VASUDHAR DAIRY.

Prepared by:

BHUPENDRA RATHOD

Enrollment no: 107310592029

Under the guidance of

INTERNAL GUIDE- PROFF .NILAM DAMANIA



HISTORY OF VASUDHARA

DAIRY “VALSAD DISTRICT CO-OPERATIVE MILK PRODUCER UNION LIMITED”

has been registered in 1973 and initiated dairy development activities onANAND pattern since 1975.

dairy plant of 30000 liters per day capacity was commissioned at ALIPOREvillage taking commercial loans from financial institution and assistance from

the state government

VASUDHARA has added one more feather in its cap by commissioning theproduction of “AMUL” ice cream at its BOISAR plant in November, 1997.

In may 2002, another ice cream plant is commissioned at Nagpur and isaggressively expended to meet the market demand.

vision 2010 of the organization, expansion of WAGHAI chilling centre is done.This plant with the capacity to chill 20000 liter of milk procured mainly from theabsolute backward areas of dang district.



BANKERS VALSAD DISTRICT CO-OPRATIVE BANK LTD.

BARODA –GUJRAT GRAMIN BANK

STAT BANK OF INDIA

BANK OF BARODA ICICI BANK

HDFC BANK

AXIS BANK

CORPORATION BANK



Quality Management Quality management and improve life standard is the main aim

of “VASUDHARA” dairy

Vasudhara won the RAJIV GANDHI NATIONAL QUALITYAWARD for the year 2007.

It has won this laurel in “food &drug” category among the largescale organizations of India

Setting up a trust devote to facility the farmers oriented activitiesand giving scientific inputs to the rural farmers for upgrading theirfarming and milk business activities and utilizing the availableresources in the best possible manner.



Department activity MANPOWER

In VASUDHARA dairy present manpower strength isapproximately 318 manpower consists of a service ofactivities.

ACTIVITIES OF PERSONNEL & ADMINISTRATIONDEPARTMENT

CO OPRATIVE DEPARTMENT

MILK PROCURMENT DEPARTMENT MARKETING DEPARTMENT

FINANCE DEPARTMENT



THERICAL ASPECT

MEANING OF WORKING CAPITAL

Working capital is the amount of capital that abusiness available to meet the day to day cashrequirement of its operation

Working capital is a difference between resource incase or readily convertible into cash andorganizational commitments for which cash will soon

be required. If refers to the amount current assets thatexceeds current liabilities.



Type of working capital

1. Concept base

Gross working capital

Net working capital

Negative working capital2. Time based working capital

Permanent working capital

temporary working capital



Working capital cycle

cash

Raw materials

Work in progress

Finished good



Factors affecting working capital Nature of business

Size of business

Business cycle , manufacturing cycle

Operating efficiency,



MEANING OF WORKING CAPITALMANAGEMENT

Working capital management is concerned with theproblem that arise in attempting to manage the currentassets, current liabilities and the interrelationship that

exists between them Two steps involved in the working capital management

(1)Forecasting the amount of working capitalmanagement

(2)Determining the source of working capital



Research methodology1. Meaning of research methodology

The basic concept of research methodology refers the way

in which companies conduct their research and how theycollect the data they need.

Whenever a company or organization needs to investigate aparticular area of their business dealings, they need to adaptthe most suitable research methodology for the job

A company may need to decide what format of research theywant to use before the investigation begins.

2. Objective of study

To analysefirm’s

working capital using variousratio’s

.Such as day’s sales in receivable ratio, accountreceivable turnover ratio, current ratio, inventory/stockturnover ratio, net working capital ratio etc. of VDCMPU

To analyse company’s working capital over the tenure of

five years. ’



3. Methodology of study

data collected two method

a) Primary method Interacting with the manager

During in-plant training,

visits to all departments were undertaken.

the discussion of observation helped a lot in understandingthe manufacturing system.

b) Secondary data

Company financial statement

Five year annual report collected information through various Journals, Books,

Internet, and Magazines, also various literatures werereviewed for conceptualizing them for the project report.



Limitation of the study

Sincere effort was made together all required

data for waiting the project report the followinglimitation.

Due the confidential nature of date most of thedate was not made available for review.

FURTHER SCOPE OF THE STUDY

Financial structures can will be chosen as

research problem Comparative study can will be understand for

better analysis

Both primary and secondary date can be use in

research study.



Beneficiary of the study: Students

Company

Researchers Industry



Data analysis and interpretation

statement of changes in working capital

Ratio analysis

Trend analysis to anticipate future ratios



Statement Change in Working Capital

Particular 2006 2007 Increase Decrease Current asset

Inventory 77,509,733 157,632,379 80,122,646 Loans & advance 240,751,726 179,724,724 61,027,002

Cash bank balance 52,307,397 35,038,446 17,268,951

Total current assets 370,568,856 372,395,549 80,122,646 78,295,953

Current liability

Liability 202,123,339 263,839,450 61,716,111 Provision 2,459,980 3,000,000 540,020

Total liability 204,583,319 266,839,450 - 62,256,131

Net working capital 165,985,537 105,556,099

Net Increase/ Decrease 60,429,438



Particular 2010 2011 Increase Decrease Current asset

Inventory 468,008,350 272,347,057 195,661,293

Loans & advance 374,755,914 360,396,632 14,359,282

Cash bank balance 157,619,659 157,619,659 -

Total current assets 1,000,383,923 790,363,348 - 210,020,575

Current liability

Liability 507,832,085 489,199,710 18,632,375

Provision

-

Total liability 507,832,085 489,199,710 18,632,375 -

Net working capital 492,551,838 301,163,638

191 388 200



Ratio analysis

year 2007 2008 2009 2010 2011 current ratio 0.18 2.23 1.58 1.96 1.61

Day/s Sales inReceivable

7 14 10 5 7 account receivable

ratio 54.19 26.76 37.06 71.19 48.92

inventory turnoverratio

2.86 2.12 2.79 1.14 0.89 net working capital

ratio 35.79 12.88

28.83 14.69

27.67



Trend Analysis

year 2007 2008 2009 2010 2011 2012 2013 2014

ratio 0.18 2.23 1.58 1.96 1.61 2.29 1.98 2.22



year 2007 2008 2009 2010 2011 2012 2013 2014

ratio 54.19 26.76 37.06 71.19 48.92 57.79 70.52 73.15



finding

Changes in working capital is volatile

Current ratio increased to 1.61 is 2011 comparedto 0.18 in 2006. This shows company’s currentratio is strength

Account receivable turnover ratio is efficient. Stock turnover ratio is consistency decreasing

Suggestion

Company is should try to maintain adequate working

capital, which is required to run the businesssmoothly.

Increase the product line of the company.

To increase the awareness of product they should doadvertisement for it.

bhupen ppt

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