STATISTICAL ANALYSIS ON DAIRY INDUSTY

ABSTRACT :-

Now a days the usage of dairy products has increasing day by day. As dairy products like Milk, Ghee,
curd, etc; are used by both children’s and adults. This project is based on production of ‘ VIJAYA
DAIRY INDUSTY ’ (Vijayawada). This project includes production process, growth of the industry,
number of employees in the industry, market share, revenue profitability, supply to various villages and
towns, transport facility, state wise ranking in industry, and over the years 2016 to 2021. For this
statistics analysis of the industry the data is collected from the www.vijayadairy.com,
www.dairyindustry.com, official website for this analysis the statistics tools like sampling survey,
attributes, curve fitting.
COMPANY PROFILE

DAIRY INDUSTRY IN KRISHNA DISTRICT: Krishna District is on river an track of Krishna abutting Bay of
Bengal. It has a total area of 8727 sq kms. The major activity is agriculture. It has 17.39 lakhs acres of land
under crop cultivation of which 66% is irrigated. The human population is 39.54 lakhs. It has 972 inhabited
villages. The literacy in the district is 41.71%. The district is known for its quality cattle. In milk cattle
population it ranks second in the state. Buffalo is predominant milk animal. Organized dairy in Krishna
commenced in 1965 with integrated milk project assisted by the UNICEF. A milk conservation plant is
1.25LLPD (lakhsliters per day) was commenced in April, 1969 at Vijayawada. The dairy industry in the district
had its beginning under state government as part of animal husbandry activity. Integration of dairy industry into
the department of animal husbandry took place periodically in the name of different projects: ϖ Integrated
MILK project (1960) ϖ Dairy development department (1971) ϖ Andhra Pradesh Dairy Development
Corporation (1974) ϖ A.P Dairy Development Co-operative Federation (1981) Realizing the milk production
potentialities of the inversion track, the Government of Andhra Pradesh and Government of India with
“UNICEF” assistance has established “Integrated Milk project –Hyderabad-Vijayawada”, linking the
production and consumption centers. Thus Krishna district has the distinction of starting organized dairy
activities by commissioning milk chilling at “PAMARRU” in February, 1965 the first of the type in Andhra
Pradesh. Organization of co-operative structure on ANAND PATTERN was initiated in 1981. Krishna district
milk producer’s co-operative union limited got registered in 1983. It took complete management of Dairy
activities of the Krishna District from February 1985. At present, the district has 534 organized dairy co-
operative societies with over 92600 member producers. There are 300 milk producers’ association centers too
functioning besides co-operative societies. The union collects milk from about 2,13,896 milk producers
covering 815 villages organized through 35 milk routes. District union has 6 milk chilling centers one each
operating at pamarru, Hanuman Junction, Veerankilock, Gudlavallaru,Chilikalu and Tiruvuru with a total
processing capacity of 1.70 lakhs liters per day . It has milk products factory with the facilities to manufacture
different milk products. The milk products factory at Vijayawada handles surplus milk from all coastal districts.
About 2.10 lakhs kgs/day with peak touching 3.18 lakhs kgs/day. The factory conserves fat in the shape of
white butter usually to the extent of 1000 M.Ts per year. Union markets about 2, 00,000 liters/day market milk
to 1 lakh families in the district. It manufactures products like Ghee, Butter Malailaddu,datesKhova, Butter
Burfi,Chocolate Burfi, and Doodhpeda, Ghee products, skim milk powder, UHT Milk (TetraBrik). These
products are manufactured in this dairy with the brand name of “VIJAYA” are popular for its quality
throughout the nation. UHT milk has market at Bombay, Goa, Pune, Calcutta and Hyderabad. New UHT
products such as sterilized cream, slim milk, Traders from counties like Singapore and Brunei paling orders
with the dairy for milk powder. Union manufactures and market about 35 tons/day of cattle feed besides
400MTS mineral mixture per annum. Dairy co-operatives in villages have gradually development trading
surplus and this aspect coupled with government schemes resulting in establishing their own buildings in 345
villages valued at Rs/- 2.2 crores. An Aspetic packing station was set up in the milk products factory to pack
50,000 liters of long the milk (UHT MILK) per day. Union has also 2 cattle feed mixing plants with a total
capacity of 50M.T /day. Plant to increase procurement to two lakh liters a day. Vijaya dairy is the only unit
exporting products to countries like Malaysia. Krishna milk union is a district milk producer co-operative came
into exiting in July 1983, registered “KRISHNA DISTRICT MILK PRODUCERS CO-OPERATIVE UNION
LIMITED”. It took over the management going dairy activities Krishna district of Andhra Pradesh during
February 1985. Krishna milk union currently 815 functional dairy cooperations in villages and introduced from
various chilling centers and district routes

RANKING OF THE DISTRICT IN ANDHRA PRADESH

1) Milk production..............2nd

2) Processing.....................3rd

3) Marketing......................2nd

Krishna district has milk procurement ranging from 45,000 kgs to 2,00,000kgs.Per
day from 1969 to 2014. The district being buffalos concentrated has wide
procurement fluctuations. It was considered imminent to reduce the seasonal
imbalance in milk production. New programmers were drawn up. Induction of “X”
bred cows has been taken up since 1990 to increase milk production potentially.
District has very close animal health coverage by the animal husbandry department.

The district co-operatives milk union provides the following inputs to farmers
for increased milk production.

 Veterinary first aid facilities

 Animal vaccines & medicines at subsidized prices

 A.I.Facilities.

 Breading bulls

 Fodder seeds at subsidized rates

 Premixed cattle feed

 Cattle insurance at 2/3 subsidy.

 Extension services.
PROCESSING:

Milk processing of milks it done by pasturing and chilling the milk at certain
temperatures. The fat % and chilling the milk at certain temperatures, the fat% and
SNF % is standardized accordingly for various types of milk is sent to by products
section to produce various products.

PRODUCTION:

In the production section the milk and milk products are produced the excess
milk is converted into skim milk powder (SMP), Butter to meet the demand to learn
seasons.

SALES:

Indents received from various boots and parlors. Depending on the indents the
consolidated reports are raised. These reports are sent to various sections.
Reconciliation statements are prepaid according to the indents and the details of
stock delivery are maintained for various parlors, boots and institution. Andhra
Pradesh has prominent place in the dairy of India. Dairy and milk supply has been
given importance in the five year plans of the state. Not only with a view has help
had the farmer to improve their income had it enabled.

CHILLING CENTERS:

The VIAJAYAWADA milk products factory has set up six chilling centers,
which are given under center, have been producing chilled milk for the composition
of the various segments of the consumers. Chilling centers use very successfully to
milk products factory. Following are centers in Krishna district under the control of
VIAJAYAWADA milk products factory:

 Pamarru

 Hanuman Junction

 Veeranki lock

 Gudlavalleru

 Chillakallu
  Tiruvuru

MILK DISTRIBUTION CENTERS:

Town sales (in Liters) No.of selling boots Daily

Viajayawada 1321 1,89,921

Godavari 90 4,383

Chillakallu 86 6,894

Tiruvuru 110 5,535

Pamarru 320 27,610

SALES CENTERS:

VIJAYAWADA: RTC Bus stand super bazaar, Railway station milk products factory,
vastralatha, Vijaya dairy parlour (near Alankar theatre) Benz circle,
Sathyanarayanapuram, machavaram, patamata etc.

CAPACITIES:

Milk 2,00,000 liters per day

Ghee 5 tons per day

Butter 7 tons per day

Milk powder 5 tons per day

Refrigeration capacity 1.5 tone capacity

Stream generation 15 tones per 1 prt

 Milk packing 1,25,000 packets per day

Chilling 1,50,000 liters per day

Processing 1,50,000 liters per day

TRANSPORT:

There are about 25 vehicles in transport organization, milk products factory,

Vijayawada.

Road tankers

 4 tones of 15,000 liters capacity

 4 tanks of 10,000 liters capacity

 3 distribution vehicles for sales

 6 inspection vehicles

In addition to these 25 vehicles are taken hire from private transporters for
distribution of milk. The milk feed to chilling centers and far off places like
Visakhapatnam Nellore and Chittor is being transported by the road tankers. It is also
transported to all metro Politian cities of Delhi Mumbai, Calcutta and Chennai
through the insulated tankers.

RESEARCH AND VEVELOPMENT:

The India council of agricultural research has started a research scheme during
the period 1970-71 to undertake research on milk products. Under this scheme soft
cheese, butter milk powder curd, DoodhPeda, ice-cream mix, butter etc. are,
manufactured.

NEED FOR EXPANSION:

With the introduction of the baby food, the milk handling capacity has been
 reduced to about 80-85 thousand liters of milk in view of the sugar content added
in manufacture of the baby good. Therefore it is proposed to expand the present plant
by adding additional buildings in the existing vacant area adjacent to the transport
section. This will enable the factory to handle 1.5 lakh liters per day

MANAGEMENT:

1) Management of the company shall consist of board of directors chairman

and managing director.
2) The chairman of the affiliated union enrolled as number.

3) Nominee of the government of Andhra Pradesh if the government of

Andhra Pradesh is a member.
4) Chairman of the board of directions shall over general meeting. In case of
this absence the meeting shall be conducted by a chairman form amongst
the members present.
5) The general body shall be called once a financial year with in grater ending
on 31st December. This shall be “Annual general meeting”

6) A special general body meeting may be called at any time by a majority

vote of board of directors and shall be called with one month at least 1/5
of the members of derivation or by the registrar of cooperative societies.

ORGANISATION CHART:

General Body

Board of Mgt
 Managing Directors

Marketing Manager Quality

Production Manager Stores

Plant Maintenance
MIS
Director (Finance) APS

THE GENEARAL POWER DUTIES AND RESPONSIBILITES OF THE

MANAGING DIRECTORS ARE AS FOLLOWS:

 He shall general control loan the administrations and business of the federation.

 He shall power for and on behalf of the federation to enclose sign negotiates
checks other negotiates on behalf of the federation. He shall also sign all
deposits, receipts and operate as accounts of the federation with any bank.
 He shall allow credit to buyer within limits fixed by the board from time to time.

 He shall make necessary arrangements for transport and storage of dairy and
allied produce.

 He shall arrange to support training to the staff members of the federation

union and societies.
 He shall appoint consultant or exports and fix their remuneration.

BOARD OF DIRECTORS:

The board consists of the following:

 Chairman of the affiliated union enrolled as members

 Registrars of the cooperative societies

 One nominee of the financing agency.

 Managing director of the federation.

 3 nominees of the state Government representing interest dairy development.

 Any member nominated to the board may at any time resign from his office by
sending a letter to Government and such registration shall come into effect from the
date on which it is accepted by the Government.

The Government shall nominate the chairman of that board time to time. The
secretary of the Government dealing with dairy development shall be the vice-
chairman of the board. All the members of board expect managing director and
chairman of the federation shall be honorary.

MANAGING DIRECTOR:

The managing director shall be appointed by the Government from time to

time upon such terms and conditions as the Government thinks fir and the
Government extends such items as it may due necessary and expedite.

STAFF POSITION OF THE COMPANY:

Department No of Persons

Managing Director 1

Dairy Directors 2

Dairy Managers 8

Asst Dairy Engineers 8

 Quality control officers 1

Asst Dairy Managers 22

Fodder Development officers 2

Junior Engineers 8

Technical staff 111

Transport 31

Finance 39

Administration 117

Field staff 88

Others (Non Technical ) 375

Total 803

KDMPMACUL OBJECTIVES:

Evolving long term policies to encourage and develop milk production and
productivity in the district. Achieving co-ordination among various programmers in
the district to optimize resource utilization. Providing remunerative and assured
market for the milk produced by the farmers round the year.

Improving efficiency in milk collection, transport processing and marketing

with the emphasis on reducing the cost of operations at very stage from emphasis on
reducing the cost of operations at very stage from rural farmer to urban consumer.
Increasing in availability of milk and development the market of milk products.

Development the manpower of the organization to reach excellence in their

working life and create a pro-active organizational culture for achieving competitive
edge. Consolidation and expansion of co-operative structure with special attention
to small farmers
and weaker section of milk producing community. Traders from countries l
KDMPMACUL STRTEGY:

Milk procurement activities will be intensified for securing increased share in

existing marketable surplus. Concentration of milk production enhancement
programmers with special emphasis on animal breeding, fodder development and
animal health.

Marketing in the district will be intensified for better remuneration,

privatization beyond departmental level. Major strength of union being aseptic
technology emphasis on value added aseptic milk products. To survive and grow in
the emerging competitive environment there would be more delegation of work across
the organization calling for accountability through well defined parameters.

Productivity improvement by corporate restructuring with change in

managerial system to make people more system dependent rather then individual
dependent. Intensive Straining for all levels of staff, which can really help to improve
the functioning of organization. Introduction of “reward and punishment” system.

Introduction of quality system under ISO: 9001-2000, L.S.O: 4001-2004 and

HACCP certification.

MILK PROCURMENT IN MPF-VIJAYAWADA:

Milk produced twice a day from 600 villages in the among these 600
centers about 195 registered societies under ANAND PATTERN. A good milk
procurement infrastructure has been developed for the last several years in the
district. It is envisaged to open certain centers to boost up milk production with ore
and more active participation of milk producers under operation flood II program and
substantial improvement in milk production is envisaged in near future.
MILK SUPPLY:

Milk products factory Vijayawada supplies milk in Vijayawada and to near towns in

½ liter and 1 liter sachets. Bulk supplies to hospitals, hostels and other institutions
besides regular market milk supplies. Milk products factory, Vijayawada dispatches
milk supplies Milk products factory, Vijayawada dispatches milk to madras,
 Hyderabad and Calcutta.

ORGANIZATIONAL STRUCTURE:

Organization structure is the basic frame of which the manager’s decision

making behavior takes important place. It basically deals with relationships. It is the
pattern in which various components are interrelated or interconnected. This
prescribes the relationships among various positions since the positions are held by
various people with the organization. Organizational structure is the totally of both
formal and informal relationships. The organization structure involves the following
steps:

1) Identification of activates

2) Group activities

3) Delegating of authority.

In the KDMPMACUL organizational structure, chairman is the head of board

of directors. General Manager has various lands created under him like plant
manage, production manager, accounts officer, personal officer, sales manager,
medical officer, quality control officer etc.,

DETAILS AT A GLANCE:

THE KDM PRIDUCERS CO-OPERATIVE UNION LIMITED

1. number of villages covered 815

2. number of cooperative societies 549

3. number of milk routers 35

4.number of chilling centers 6

 5.number of feed mixing plants 2

6.milk products factory area 27.3 acres

7.value of factory buildings Rs.120 lakhs

9. value of other buildings and investment Rs.270 lakhs

10. date of commissioning of milk product factory 11.04.1969

11. Total staff 250

12. date of formation of union 6.7.1983

13. date of transfer of management of union 8.2.1985

PACKING:

Milk is collected from collection point and is pasteurized and converted into
milk powder. As per the demand of the requirement the powder is mixed with water
and converted back to milk , churned and the quality controllers check quality, and
then approve the milk for packing quality controllers check the quality , and then
approve the milk for packing.

MILK AND MILK PRODCUTS:

Today KDMPMACU offers the widest spectrum of milk products in India,

under the brand name VIJAYA. These include Ghee, Butter processed cheddar
cheese and cheese spread, UHT milk ( std milk toned milk low fat, Flavored Milk
(Merri Milk), Slim Milk in Tetra packs, Sterilized cream , skim Milk powder , dairy
Whitener, Cooking Butter and ice cream. Several among these carry the AGMARK,
An attestation of quality by government of India and the ISI mark of Bureau of India
standards.

The brand VIJAYA connotes quality ad quality, which makes it a trusted

Name in millions of households across the country. In addition, KDMPMACU also
manufactures products such as sterilized Flavored milk Pannier (indigenous
unripended cheese)
 DoodhPeda (desiccated milk sweet) and Buttermilk which is marketed through a
network of Vijaya Dairy parlours and a chain of retailers spread across Andhra
Pradesh.

The Dairy is equipped with the ISO 9001:2000 certification and recently ISO
14001:2004 certification.

DIFFERENT PRODUCTS OF VIJAYA DAIRY:

GHEE:

 Complete Milk Fat (99.7%)

 Granular and White in color

 Agmark Special Grade product (Government .of India Certification)

 Used as a cooking medium.

 Shelf – life of 6 months at ambient temperature

 Hygienically manufactured and packed.

 Pleasant flavor.

 Rice source of energy.

GHEE PACKET

 Complete Milk Fat (99.7%)

 Granular and White in Colour.

 Agmark Special Grade product (Government of India Certification.)

 Used as a cooking medium

 Shelf – life of 6 months at ambient temperature

  Hygienically manufactured and packed

 Pleasant flavour

 Rice source of energy.

COOKING BUTTER:

 Has 76% Milk Fat, White in color.

 Can be made into Ghee as per your choice.

 Needs refrigeration.

 Pleasant taste.

 Used also as a cooking medium.

U.H.T MILK:

 Treated at Ultra High Temperature and aseptically packed.

 Sterile, Bacteria free and can be consumed directly.

 Needs no refrigeration.

 Contains 4.5% fat and 8.5% SNF.

 Stays fresh for 120 days.

 Gives excellent and firm curds.

 Hygienically packed.

 Natural taste with high nutritive value.

 Packaging material absolutely impermeable and non-returnable

 Available as a grocery item.

 Homogenized.
SLIM MILK

 Milk free from fat

 Sterilized with U.H.T process and packed aseptically.

 Needs no refrigeration.

 Has 8.7% Milk SNF.

 Shelf life of 4 months at ambient temperature

 Low calorie diet milk.

 Bacteria free and can be consumed directly

 Gives firm fat free curds.

SKIM MILK POWDER:

 Manufactured by drying skim milk spray drying technology after Preconcentration.

 Rich in Protein and Carbohydrates.

 Constitute 3% Moisture, 35% protein, 52% Milk sugar and 1% Fat.

 Shield –life of 12 months at ambient temperature.

 Product is hydroscopic and should be stored in air-tight containers.

 Solubility of 99.5%

 BIS marked.
MERRI MILK

 Sweetened flavored milk with 1.5% Fat and 9.0% SNF.

 Available in Strawberry, Rasberry, Vanilla, Pineapple and Badam flavors.

 Sterile, Bacteria free

 Needs no refrigeration.

 Safe-life of 3 months.

 Excellent health drink.

 U.H.T Processed and aseptically packed Homogenized.

STERLIZED CRAM

 Has 30% Milk Fat with added stabilized and emulsifiers.

 U.H.T processed and aseptically packed.

 Need no refrigeration.

 Shelf-life of 3 months.

 Can be used coffee whitening whipping to be used desserts etc.

 Nutritive and Fresh

 Sterile, Bacteria free and no chemical changes.

 Homogenized.
DOODH PEDA

 Made from fresh milk

 Desiccated sweetened milk product

 Contains 20% Milk Fat.

 Smooth, granular texture.

 Shelf life of one week at ambient temperature.

CURD:

 Made from standardized and pasteurized milk using bacterial culture.

 Shelf life of 1 week under refrigeration.

 Packed in food grade polypropylene cups.

 Pleasant flavor.

PANNER

 Coagulated milk product made from pasteurized milk.

 Rich in protein.

 Shelf – life of 1 week.

 Needs no refrigeration.

 Used as an additive in various vegetarian and non-vegetarian dishes.

SERVICES OFFERED TO THE CONSUMERS:

1) Offering wide range and milk products suiting to changing needs.

a) Varieties of pasteurized milk offered for supply:

 Vijaya gold (fat 7% SNF 9% full cream milk)

 Vijaya Special (fat 6% SNF 9% full cream milk)

 Vijaya Premium (fat 4.5% SNF 8.5% standard milk fortified with Vitamin ‘A’.

b) Range of UHT processed milk products with shelf – life of 4 months:

 UHT processed standardized milk in 200ml and 1000ml Tetra Brick pack.

 Sterilized cream In 200ml Tetra Brick Pack.

 Flavored milk (LASSI) in 200ml Tetra Brick Pack.

c) Range of fresh milk products:

 Curd (100ml, 200ml and 500ml cups)

 Lassie 200ml Poly packs.

 Buttermilk 200ml Poly packs

 Panner 100gm, 200mg, 500mg, and 1Kg packages.

 Doodhpeda 25gm, 250gm, 500gm and 1Kg Packages.

 Milk cake 250gm, 500gm and 1Kg packs.

 KharjuraKova 250gm, 500gm and 1Kg packs

 Kharbhuja 200ml pack.

 Kulfi Badam 200ml pack

 Badammix power 200grs packet

  Gift pack 450gms and 900gms packet

 Milkey Mango magic 200ml and 1000ml packages.

d) Range of other products:

Vijaya Ghee consumer tin packs of ½ Kg, 1Kg, 2Kg, 5Kg, 15Kg, and in poly
pack of 200ml and 500ml.

 Skimmed milk powder in ½ Kg, 1Kg and 25Kg packs.

 Cooking butter in 500gms and 20 Packs.

2) Special discount to intuitional buyers on purchase of milk in bulk quantities in loose

condition in cans. Supply of milk to consumers on purchase of monthly milk cards.
Round the clock availability of milk products through 250 cold chain point in the
district.Conduction consumer education camps to create awareness. About quality of
milk and milk products. Free supply of chilled drinking water to parties buying more
than 200 liters of milk on special order.

SWOT ANALYSIS OF KDMPMACU STRENGTHS:

 Milk production potential in Krishna district is substantial

 Ability to handle perishable product milk

 Adequate infrastructural facilities available

 Availability of well experienced professionals.

 Excellent brand value for “VIJAYA”

 Ability to meet any consumer demand for milk and milk products.

 Ability to offer best quality long life products.

 Established bondages with farmers.

 Access to development funds and grants.

 Access to other co-operatives.

  Vijaya Dairy is the only unit exporting milk products to countries like Malaysia.

WEAKNESS:

 High fixed cost occupying 15% of business turn over.

 Milk and milk products are high priced loosing competitive edge.

 Process/product manufacturing facilities and outdated. Lack of modern facilities.

 Work culture and compatible with growing demand for customer service.

 Employee skills at various levels require up gradation.

 Business systems and modern management culture is yet to be adopted.

 Managers lack business experience.

 System moves very slowly; due to lack of proper delegation all things seem
to wait for the chief executive.

OPPORTUNITIES:

 Responsive milk producer base

 Good public image

 Emerging trends of increased spending on foods

 Rapid utilization.

 Growing food service sector.

 Responsive state government

  Pattern of increased spending on foods

 Increased purchasing capacity of middle class.

 Export opportunities for long life aseptic milk.

 Voluntary retirement scheme to prune man power strength.

THREATS:

 Intense competition in liquid milk market

 Entry of organized private sectors in dairy business.

 Increasing competition for the marketable surplus milk in rural areas.

 Employees Resistance to change.

NEED OF THE STUDY

The main need of the study is to study the sources and applications of funds

in the company and methods to evaluate the financial performances of the

company. The study helps in revealing the financial difficulties faced by the
company in case of shortage of funds and also to know about the need of funds for
the growth of the company. A study of funds flow analysis is a major importance
to internal and external analysis because it reflects the position of thecompany in
term of finance

SCOPE OF THE STUDY

The scope of study is confined only five year i.e. from 2016-2021. Funds flow
statement is useful for long term analysis .The ‘Funds Flow Statement’ shows the
an extensive study is done on the investment made by KDMPMACUL.
 KDMPMACUL sources from which they raised the funds.

OBJECTIVE OF THE STUDY

 The major objectives of study is to assess the inflow and out flow of the
funds in theK.D.M.P.C.U Limited
 To study andanalyze the change that taken place in the working capital
position of the company.
 To analyze the funds flow operation

 To identify sources and application of the fund .

 To suggest suitable measures to improves the performance of the company.

SOURCES OF DATA

The study has been conducted in theK.D.M.P.M.A.C.U.Ltd to examine Funds

flow analysis in order to change in working capital and shows difference
between Sources and Applications. The study has been undertaken in the
Accounting & Finance departments of theK.D.M.P.M.A.C.U.Ltd.
 Primary Data : Present study is mainly based on primary and secondary
sources data collection. The primary data was directly collected by
observations, Interviews and questionnaire etc.
 Secondary Data:

The secondary data from KDMPCU Ltd for the year 2016-2021 used in this
study. These have been taken from secondary sources like company reports,
balance sheets. Editing, classification, and tabulation of the financial data which
are collected from the above mentioned sources, have been as per requirement of
the study.

2.1 TOOL USED FOR ANALYSIS

  Schedule of changes in working capital

 Funds from operation

 Funds flow statement

LIMITATIONS OF THE STUDY

 Though the project work has been completed successfully, a few limitations are
observed however, proper care has been taken to overcome to impact of
limitations on the study.

 Time is also a limiting factor.

 The main limitation of the study is that it is fully depends upon the secondary data.

 The figures taken from the financial statement like profit and loss account and
balance sheet were historical in nature.

DATA ANALYSIS AND INTERPRETATIONSTATEMENT SHOWS THE

CHANGES IN WORKING CAPITAL IN THE YEAR 2016-2017

Table no. 3.1.1

INCREASE DECREASE
PARTICULARS 2016( Rs.) 2017 (Rs.) (Rs.) (Rs.)

CURRENT ASSETS

Inventories 724040571 937641820 213601249 -

Trade Receivables 2487541 3037946 550405 -

Cash &Cash Eqievalents 4441121834 490203150 46090316 -

 Short term loans & Advances 173386 8557230 8383844 -

Other current Assets 6479551 9426798 2947247 -

TOTAL ( A) 1177293883 1448866944

CURRENT LIABILITIES

Short term borrowings - 200000000 - 200000000

Trade payables 661886369 666937941 - 5051572

Other current Liabilities 34050169 28962750 5087419 -

Short Term Provisions 8320585 13308937 - 4988352

TOTAL (B) 704257123 909209628

NET WORKING CAPITAL
TOTAL ( A-B) 473036760 539657316

Increase in working capital 66620556 66620556

TOTAL 539657316 539657316 276660480 276660480

Interpretation :

It is evident from above table 3.1.1 that there in working capital in the year 2016-
2017.By Rs.66620556. This is mainly due to increase aIt is evident from above
table 3.1.1 that there in working capital in the year 2016-2017.By Rs.66620556. This
is mainly due to increase are Inventories &Receivables.
 3.1 FUNDS FROM OPERATION FOR THE YEAR 2016-2017

Table 3.1.1

Particulars Amount Particulars Amount

(Rs.) (Rs.)

Balance C/d 602641326

Balance B/d 511994900

Depreciation 2757795 Funds from 90646426

operation

Total 602641326 Total 602641326

INTERPRETATION :

It is evident from the above table 3.1.2 that the funds from operation for the year
2016-17 is Rs.90646426.

STATEMENT OF SOURCES AND APPILICATIONS ENDING

AT 31STMARCH 2017
Table 3.1.3

SOURCES AMONT APPLICATIONS AMOUNT

Purchase of fixed 18554730

assets

Funds from 90649426 Purchase of long term 2017854

operation loans

Purchase of long term 3456286

borrowings

Increase in working 66620556

capital
90649426 90649426

INTERPRETATION:

It is from the above table 3.1.3 the major sources of funds are long term borrowings
.The major Applications of funds are Fixed Assets and long term borrowings .

DATA ANALYSIS AND INTERPRETATION

 STATEMENT SHOWS THE CHANGES IN

(Rs.) (Rs.)

WORKING CAPITAL IN THE YEAR 2017-2018

Table3.2.1

PARTICULARS 2017 (Rs.) 2018 ( Rs.) INCREASE DECREASE

CURRENT ASSETS
Inventories 937641820 1235770340 298128520 ---

Trade Receivables 3037946 8570181 5532235 ---

Cash &Cash Equivalents 490203150 426768857 63494293

Short Term Loans &
Advances 8557230 9638091 1080861 ----
Other Current Assets 10339476 26099452 15759976 ----
TOTAL ( A) 1449779622 1706846921

CUURENT LIABILITIES
Short Term Borrowings 200000000 400000000 --- 200000000
Trade Payables 666937941 6554559886 11478055 ---
Other Current Liabilities 31611366 32961173 ---- 1349807
Short Term Provisions 11572999 3817079 7755920 ---

TOTAL (B) 910122306 1092238138

Net working capital (A-B) 539657316 614548783

Increase in working capital 74891467 74891467

TOTAL 614548783 614548783 339735567 339735567

INTERPRETATION :

It is evident from above table 3.2.1 that there is increase in working capital in the
year 2017- 2018.By Rs. 74891467. This is mainly due to increase are Inventories
&Cash & cash equivalents.
FUNDS FROM OPERATION FOR THE YEAR OF 2017-1018

Table 3.2.2

Particulars Amount Particulars Amount

Balance B/d 602641327

Balance C/d 737576716 Funds From 134935389

Operation
737576716 737576716

Interpretation:

It is evident from the above table No.3.2.2 that the funds from operation for the year 2017-
18 is Rs.134935389

STATEMENT OF SOURCES AND APPLICATIONS OF FUNDS FOR THE YEAR

ENDING AT 31ST MARCH 2018

Table 3.2.3

Sources Amount (Rs.) Applications Amount (Rs.)

Sale of long term 5571149 Purchase of Fixed

borrowings assets 65489956

Funds from operation 134935389 Purchase of long term

 loans & advances 125115

Increase in working 74891467

capital

140506538 140506538
INTERPRETATION:

It is from the above table no 3.2.3The major sources of funds are long term
borrowings .The major Applications of funds are Fixed Assets in this funds flow
statement.

3.2 DATA ANALYSIS AND INTERPRETATION STATEMENT

SHOWS THE CHANGES IN WORKING CAPITAL IN THE YEAR
2018-2019

2019 INCREASE DECREASE

PARTICULARS 2018 (Rs.) (Rs.) (Rs.) (Rs.)
CURRENT ASSETS

Inventories 1235770340 1190125260 45645080

Trade Receivables 8570181 -4981954 13552135

Cash &Cash Equivelents 426708857 556032222 129323365

Short Term Loans &Advances 9638091 4336783 5301308

Other Current Assets 26099452 28881257 2781805

TOTAL ( A) 1706786921 1774393567

CURRENT LIABILIIES
Short term Borrowings 400000000 3400400000 99600000

Trade Payables 655459886 756735013 101275127

Other Current Liabilities 32961173 17514293 15446880

Short Term Provisions 3817079 21631490 17814411

TOTAL ( B) 1092238138 1096280796

Changes in net working capital
(A-B) 614548783 678112771 63563988

Increase in working capital 63563988

TOTAL 678112771 678112771 247152050 247152050

 Table 3.3.1

INTERPRETATION :

It is evident from above table no 3.3.1that there is increase in working capital in

the year 2017-2018. By Rs.63563988. This is mainly due to increase are
Inventories &Cash & cash equivelents.

FUNDS FROM OPERATION FOR THE YEAR OF 2018-2019

Table 3.3.2

Particulars Amount (Rs.) Particulars Amount (Rs.)

Balance B/d 737576716

Balance C/d 905174755 Funds From 167598039

Operation
905174755 905174755

INTERPRETATION :

It is evident from the above table no 3.3.2 that the funds from operation for the year
2018-19 is Rs. 167598039.
STATEMENT OF SOURCES AND APPLICATIONS OF FUNDS FOR THE
YEAR ENDING AT 31ST MARCH 2019

Table 3.3.3

Sources Amount (Rs.) Applications Amount (Rs.)

Sale of long term 18428119 Purchase of fixed 120670207

borrowings assets
Funds from 167598039
operation Purchase of fixed 1791964
assets
Increase in
working capital 63563988
186026158 186026158

INTERPRETATION:

It is from the above table no 3.3.3.The major sources of funds are long term
borrowings .The major Applications of funds are Fixed Assets.
STATEMENT SHOWS THE CHANGES IN WORKING
CAPITALIN THE YEAR 2019-2020

Table 3.4.1

Particulars 2019 (Rs.) 2020 (Rs.) Increase Decrease

CURRENT ASSETS

Inventories 1190125260 1958623091 768497831 -

Trade Receivables -4981954 5376933 10358887 -

Cash &Cash Equivalents 556032222 230605715 325426507

Short Term Loans 4336783 171493548 167156765

Other Current Assets 28881257 48776841 19895584

TOTAL ( A) 1774393568 2414876128

CURRENTLIABILITIES

Short Term Borrowings 300400000 1199997680 --- 899597680

Trade Payables 756735013 694965640 6769373

Other Current Liabilities 17514293 17662722 --- 148429

Short Term Provisions 21631490 2383397 19248093 ----

 TOTAL (B) 1096280796 1915009439 ---

Net working capital (A-B) 678112772 499866689 178246083

Changes in decrease working 178246083

capital

TOTA 678112772 678112772 1046926533 1046926533

L

INTERPRETATION:

It is evident from above table that there is Decrease in working capital in the year
2019-2020 by Rs.178246083.This is mainly due to increase are Inventories & Cash &
cash equivalents.

FUNDS FROM OPERATION FOR THE YEAR OF 2019-2020

Table 3.4.2
 Particulars Amount (Rs.) Particulars Amount (Rs.)

Balance B/d 905174755

Balance C/d 995366795 Funds From 90192040

Operation
995366795 995366795

INTERPRETATION :

It is evident from the above table no 3.4.2 that the funds from operation for the year
2019- 20is Rs. 90192040.

STATEMENT OF SOURCES AND APPLICATIONS OF FUNDS FOR THE

YEAR ENDING AT 31ST MARCH 2019

Table 3.4.3

Sources Amount (Rs.) Applications Amount (Rs.)

Sale of long term 24315494 Purchase of fixed 289538416

borrowings assets
Funds from
operation 90192040 Purchase of long 3215200
 term loans &
advances

Decrease in
working capital 178246083
292753616 292753616

INTERPRETATION:

It is from the table no 3.4.3 .The major sources of funds are funds from operation
.The major Applications of funds are Fixed Assets.
STATEMENT SHOWS THE CHANGES IN WORKING CAPITALIN THE
YEAR 2020-2021

Table 3.5.1

INCREASE DECREASE
(Rs.) (Rs.)
PARTICULARS
2020 (Rs.) 2021 (Rs.)

CURRENT ASSETS

Inventories 1958623091 2146085984 187462893 -

Trade Receivables 5376933 30530720 25153787

Cash &Cash Equivalents 230605715 785738430 555132715

Short Term Loans 171493548 77434276 94059272

Other Current Assets 48776841 168224547 11947706

TOTAL (A) 2414876128 3208013957

CURRENT LIABILITIES

Short Term Borrowings 1199997680 2009930675 - 809932995

Trade Payables 694965640 490607420 204358220

Other Current Liabilities 17662722 27983473 - 10320751

Short term Liabilities 2383397 92655723 90272326

TOTAL (B) 1915009439 2621177291

Net working capital (A-B) 499866677 586836665

Increase in working capital 86969976 86969976

TOTAL 586836665 586836665 1004585344 1004585344

INTERPRETATION:

It is evident from above table no3.5.1that there is Increase in working capital in

the year 2020-2021 by Rs.86969976.This is mainly due to increase in
Inventories & Short term loans.
 FUNDS FROM OPERATION FOR THE YEAR OF 2020-2021

Table 3.5.2

Particulars Amount Particulars Amount

( Rs.) ( Rs.)

Balance B/d 995366795

Balance C/d 1171448375 Funds From 176081580

Operation

1171448375 1171448375

INTERPRETATION :

It is evident from the above table no 3.5.2that the funds from operation for the year
2020- 2021 is Rs. 176081580.
STATEMENT OF SOURCES AND APPLICATIONS OF FUNDS FOR THE
YEAR ENDING AT 31ST MARCH 2021

Table 3.5.3

Sources Amount (Rs.) Applications Amount (Rs.)

Sale of long term 15706627 Purchase of fixed 103452482

borrowings assets
Funds from
operation 176081580 Purchase of long 1365736
term loan &
advances

Increase in 86969989
191788207 working capital 191788207

INTERPRETATION:

It is from he above table no 3.5.3The major sources of funds are funds from
operation .The major Applications of funds are Fixed Assets.
GRAPHICAL REPRESENTATION OF SCHEDULE OF CHANGES IN
WORKING CAPITAL DURING THE YEAR 2016-2017 TO 2020-2021

YEAR INCREASE (Rs.) DECREASE (Rs.)

2016-2017 66620556

2017-2018 74891467

2018-2019 63563988

2019-2020 (178246083)

2020-2021 86969976

SCHEDULE OF CHANGES IN WORKING CAPITAL

15000000

10000000

50000000
Schedule of changes
in working capital
0 INCREASE
9-20

-5000000 2016-20172017-20182018-2019201202020-2021
Schedule of changes
in working capital
-1E+08 DECREASE

-1.5E+08

-2E+08
GRAPHICAL REPRESENTATION OF SCHEDULE OF CHANGES IN FUNDS
FROM OPERATION AND LOSS FROM OPERATION DURING THE YEAR 2016-
2017 TO 2020-2021

Year Funds from operation/Loss from operation (Rs.)

2016-2017 90649426

2017-2018 134935389

2018-2019 167598039

2019-2020 90192040

2020-2021 176081580

Funds from operation / loss from operation

20000000

15000000

10000000

50000000

0
019-
Year 2016-20172017-20182018-20192 2 0202020-2021
-5000000

-1E+08

-1.5E+08
4.1 Findings

 It has been observed the share capital of company is not increasing from 2016
to 2021.
 The company is having good reserves and surplus position. These are
increasing year to year from 2019 to 2021. It has been observed that some
reserves and surplus are decrease from 2016-17.
 The company is taking loans from other sources like banks, financial institutes
etc. it observed from 2016to 2017 the loan amount has decreased.
 There is no change in the non-current investments of the company during the
study period.
 The total increase in current assets of the company has overcome the total
increase in current liabilities in 2016 to 2021. Current assets are increasing year
to year.
 There is increase in working capital in all five years except 2019-2020.

 It is observed from the study that is loss from operation during 2019-2020. In
other years are funds from operation.
 4.2 Suggestions

 The profits of the company are increasing year by year. It is good for the
company and it is better to keep adequate the working capital concept to protect
the present profits.

 Maintain excess reserves and surplus for operation activities. Purchase of plant
& machinery for fixed asset growth.

 The company is raising funds from secured and unsecured loans, sale of fixed
assets and funds from operations and it is spending to purchase fixed asset,
redemption of loans and other payments.
 The analysis of reports covering 2016-21 shows that the K.D.M.P.M.A.C.U.
Ltd. is in a comfortable position with regard to working capital that create more
goodwill to the firm in the market.
 When compared to the previous years the working capital position of the
K.D.M.P.M.A.C.U. Ltd. has been raised. The production capacity has been
increase.
 4.3 Conclusion

From the above study it can be concluded that the performance of

the company is satisfactory . Fund from Operation is positive during
the study period except in the year
2019-20. During the year 2019-20, there was decrease in Working
capital. Hence the company must concentrate on managing its Current
Assets & Stock properly.