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P. Anil Kumar Synopsis

This document provides a synopsis for a study on working capital management at Tirumala Milk Products Pvt Ltd. It includes an introduction to working capital and the company profile. The objectives are to analyze the liquidity position, changes in working capital, turnover, and profitability. Research methodology involves a descriptive study using secondary annual report data. Key findings show working capital turnover fluctuated while debtors turnover decreased, and current ratio was below standard levels. Suggestions include increasing current asset investments, relying more on equity than debt, and decreasing costs to improve profitability. In conclusion, the company's financial condition is sound but ratios need to meet standards and financial discipline should be maintained.

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179 views6 pages

P. Anil Kumar Synopsis

This document provides a synopsis for a study on working capital management at Tirumala Milk Products Pvt Ltd. It includes an introduction to working capital and the company profile. The objectives are to analyze the liquidity position, changes in working capital, turnover, and profitability. Research methodology involves a descriptive study using secondary annual report data. Key findings show working capital turnover fluctuated while debtors turnover decreased, and current ratio was below standard levels. Suggestions include increasing current asset investments, relying more on equity than debt, and decreasing costs to improve profitability. In conclusion, the company's financial condition is sound but ratios need to meet standards and financial discipline should be maintained.

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sree anugraphics
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We take content rights seriously. If you suspect this is your content, claim it here.
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“A STUDY ON WORKING CAPITAL MANAGEMENT IN

TIRUMALA MILK PRODUCT PVT, LTD., PALAMANER”

Project Synopsis submitted in partial fulfillment of the requirement for the


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

By
Name: P. ANIL KUMAR

Reg. No. 17AK1E0006

Under the guidance of

Dr. P. RAMESH BABU.,


Assistant Professor

Department of MBA

DEPARTMENT OF MANAGEMENT STUDIES


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

STUDENT SIGNATURE: GUDIE SIGNATURE:


DATE:

AITS - TIRUPATI Page 1


1.INTRODUCTION:
Definition
“Working capital means current assets ’’
-Mead, MALOTT & Field
According to J.S. Mill, Working capital is defined as “The sum of the current assets is the
working capital of a business ’’
‘’ Working capital is the amount of funds necessary to cover the costs of operating the
enterprise”
WORKING CAPITAL
If a firm wants to increase its profitability, it must also increase its risk. If it is to
decease risk, it must decrease its profitability. The tradeoff between these variables is that
regardless of how the firm increases its profitability through the manipulation of working
capital. The consequence is a corresponding increase in risk as measured by level of working
capital.

2. INDUSTRY PROFILE
Dairy industry in India

The dairy industry in India is going through major changes with the liberalization
polices of the government and the restructuring if the economy. These have brought greater
participation of the privet sector. This is also consistent with global trends which could
hopefully lead greater integration at Indian dairying with the world market for milk and milk
product. After stagnating to 80 million tons for 20 years between 1950 and 1970 Indian milk
production wagon to rise. Crossing 30 million tons 1980 and 59 million tons in 1992. India is
today the largest company in the world.
3. COMPANY PROFILE
Tirumala Milk Products (P) Ltd., established in 1998. It is one of the fastest growing
private sector enterprises in India with a team of dedicated professionals. The company has
one of the most modern and versatile plants in the Indian Dairy Industry with state of the art
technology.
Tirumala Milk Products (P) Ltd., is a professionally managed company engaged in the
manufacture of a wide range of dairy products which include milk in sachets, Tetra

AITS - TIRUPATI Page 2


FinoPacks, sweets, flavored milk, curd in cups and sachets, Milk Powder, Butter, Ghee,
Butter oil, Panner and Ice cream in bulk as well as in consumer packs.
VISION
A vision reflects management’s aspirations for the organization and its business,
providing panoramic view of “where we are going” and giving specific about its future
business plans. It spells out long term business purpose and molds organizational identity.
Vision of Tirumala Milk Products (P) Ltd
“To produce and supply superior quality products with exceptional customer service
to eventually grow as market leader in dairy industry”.
MISSION
A mission is an enduring statement of purpose that distinguishes one business from
other similar firms. A mission statement identifies the scope of firms operations in product
and market terms.
Mission of Tirumala Milk Products (P) Ltd
Vision of Tirumala Milk Products (P) Ltd. Will constantly strive to market quality
products at competitive prices provide value to the business partners, all the while delivering
exceptional customers services with the highest regard for business ethics.
4. REVIEW OF LITERATURE:

MEANING OF WORKING CAPITAL


If a firm wants to increase its profitability, it must also increase its risk. If it is to
decease risk, it must decrease its profitability. The tradeoff between these variables is that
regardless of how the firm increases its profitability through the manipulation of working
capital. The consequence is a corresponding increase in risk as measured by level of working
capital.
Working capital in simple terms is the amount of funds which business concerns have to
finance its day-to-day operation. It can also be regarded as that proportion of company’s total
capital which is employed in short-term operations.
5. Need For the Study

 This study help to analyse the various elements and components of working capital
 This study has been doing for gaining practical knowledge about working capital
management and activities in Thejes dairy products.

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 Crrent assets must be managed efficiently in order to maintain the liquidity of the
firm to know about the financial mixed strategies.
6. Scope of the Study

 This project is as a reference guide or as a source of information. It gives the idea


about the financial analysis of a firm.
 The study aims to study the liquidity position of the firm. Working capital has been
used to analyses the financial position of a firm.
 It deals with analysis an interpretation of data collected through the sources primary
and secondary data.
7. Objectives of study:

 To know liquidity position of the Tirumala milk products private limited


 To know the changes in working capital during the study period
 To know the working capital turnover position of the company
To know the profitability position of the Tirumala milk products private limited
 To suggest overall efficiency of the Tirumala milk products private limited
8. Research methodology:

RESEARCH DESIGN
Working capital management is a very significant aspect in the management of finance of
any organization. By checking the level of working capital can easily identify the liquidity
and profitability position of the firm.
 The level of is determined by the level of current assets and current liabilities.
 The composition of current assets and current liabilities.
 Financing of current assets are of utmost importance and significant in the financial
management of the business because it not only shows the efficiency of business but
also it credit squeeze. This fact has been justified by many industries which have
failed frequently due to faulty management of working capital. Especially with
regard to effect of varies suggestion and regulations laid by tendon, chore Marathi
committee is very necessary.

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9.Limitations of study:

 The information used is primarily from historical reports available to the public and
the same doesn’t indicate the current situation of the firm.
 Since financial matters are sensitive in nature these same could not be acquired easily.
 The information available in the balance sheet has been taken from the published
Annual reports.
10 a. Findings, suggestions, conclusion:

During the study period, working capital turnover Ratio is showing fluctuations. In
the year of 2015-2016 and 2017-2018, working capital turnover Ratio recorded
negative figure but in remaining years it was in increasing trend.
Debtors’ turnover Ratio of the organization is in decreasing trend from 50.12 in the
year 2013-2014 to 28.3 in the year 2017-2018. It shows that there is decrease in credit
sales. But in the year 2015-2016 a high Ratio was recorded .generally sales will be
influenced by credit sales the management has encouraged only cash .which is not fair
or wanted in long run.
Current Ratio of the organization is in decreasing trend. This is below the standard
norm of 2:1 throughout the study period except in the year 2013-2014.
b. suggestions:

 It is suggested to the management to increase its investments in current assets


especially in inventories, cash &bank balance.
 Depending more on debt may result in high risk, so depends upon the organization
requirements going with equity capital is more preferable.
 Increase investments in components of working capital otherwise it adversely affect
the production process.
 It is suggested to the management try to decrease the costs i.e., operating &
production that with increases the profitability.

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C. Conclusion:

The overall financial condition of the company is sound. But the firm should
move strategically in achieving the financial synergy through maintaining all the Ratios as
per the standard norms and other financial discipline measure.
From the above report of the working capital management of TMPL we have
analyzed that the inventory of the company is managed well. The account payable cycle of
the company is liberal and generates revenue.
The debt equity ratio of TMPL in the initial stage was high but later it started
declining where in the company is able to bring it to favorable condition. As a whole working
capital management at TMPL is just neutral the company must take suitable measures to
overcome the inadequacy in operating cycle process.
10. Bibliography:

Text Books
Sl. No Title of the book Author Publishers and year
1 Financial Management Prasanna Chandra TATA-McGraw Hill,
New Delhi.
2 Advanced Accountancy S.P.JAIN, Kalyan Publisher,
K.L.NARANG Ludhiana
3 Financial Management I.M. PANDAY Vikas Publishing house
Pvt Ltd, New Delhi.

Journals

 The ICFAI Journal of Applied Finance


 Finance India (Indian Institute of Finance)

Website
www.tirumalamilkproductpvtltd.com
www.moneycontrol.com

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