The document presents a study on working capital management of Mahanand Dairy. It includes objectives to analyze the company's financial condition and working capital components. The study uses ratio analysis, fund flow analysis and working capital budgeting on data collected from annual reports from 2013-2014 to 2015-2016. The analysis found that Mahanand Dairy maintains sufficient working capital and its net working capital ratio is satisfactory, though return on investment is not optimal. Suggestions include following the present working capital approach and improving sales awareness.

1. A PROJECT ON
WORKING CAPITAL
MANAGEMENT
OF
Under The Guidance Of:
Prof. DR. SANEEM FATIMA
(Mentor)
Presented By:
Mahboob Alam
150301-03-33
Department of Management Studies
Maulana Azad National Urdu University
Gachibowli, Hyderabad

2. CONTENT
 INTRODUCTION
 OBJECTIVES OF THE STUDY
 RESEARCH & METHODOLOGY
 COMPANY PROFILE
 CONCLUSION.

3. INTRODUCTION
Working capital is an excess of current assets over current
liabilities. In other words, The amount of current assets which is more than
current liabilities is known as working capital. If current liabilities are nil then,
working capital will equal to current assets. Working capital shows strength of
business in short period of time.
Working capital is the cash needed to pay for day-to-day
operation of the business.
Working is the difference between the current assets of a business
and its currents liabilities.
Current Assets - Current Liabilities = Working Capital
How is It Calculated?

4. OBJECTIVES OF THE STUDY
Working capital is the most widely used and powerful technique of
financial analysis .The main objective of the present study is to know the
financial condition of the company.
 To know the overall operational efficiently and performance of the
MAHANAD DAIRY.
 To study the working capital components such as receivables accounts,
Cash management, Inventory management.
 To understand how the company finances its working capital.
 To interpret the financial position of company of is appropriate (or) not.

5. RESEARCH & METHODOLOGY
Research methodology is a way to systematically solve the research problem.
It May be understood as a science of studying now research is done
systematically.
SOURCES DATA
The study of Working Capital management is based on primary as well
as secondary data.
Data relating to has been collected through.
 PRIMARY DATA:
The primary data is that data which is collected fresh or first hand, and for first
time which is original in nature.
In this study the Primary data has been collected from Personal Interaction
with Finance manager i.e., Mr. Haren M. Sankhe and other staff members.
 SECONDARY DATA:
The secondary data are those which have already collected and stored.
Secondary data easily get those secondary data from records, annual reports of
the company etc. It will save the time, money and efforts to collect the data.

6. DATA ANALYSIS
The analysis of working capital can be conducted through a number of
devices, such as:
1. Ratio analysis.
2. Fund flow analysis.
3. Working capital Budgeting.
 Ratio analysis :-
A ratio is a simple arithmetical expression one number to another.
The technique of ratio analysis can be employed for measuring short-term
liquidity or working capital position of a firm. The following ratios can be
calculated for these purposes:
1.Current ratio,
2.Quick ratio
3.Absolute liquid ratio
4. Inventory turnover.
5. Receivables turnover.
6. Payable turnover ratio.

7. Cnt…..
 Fund flow analysis:-
Fund flow analysis is a technical device designated to the
study the source from which additional funds were derived and the use to
which these sources were put. The fund flow analysis consists of:
a. Preparing schedule of changes of working capital
b. Statement of sources and application of funds.
 Working capital Budgeting:-
The successful implementation of working capital budget
involves the preparing of separate budget for each element of working
capital, such as, cash, inventories and receivables etc.

8. FINDING
 The company has been maintaining sufficient amount of working capital in all
the years.
 Return on investment is not satisfactory. This indicates that the company’s funds
are not being utilized in a better way.
 Fixed assets turnover ratio of MAHANAD DAIRY increased. The company
has to maintain this.
SUGGESTIONS
 Suggested the company should follow the present working capital.
 Better Awareness to increase the sales is suggested.
 The company should make arrangement of receivables and cash.
 The raw material should be acquired from the right source at right quality and at
right cost.

9. COMPANY PROFILE
Maharashtra Rajya Sahakari Dudh Mahasangh Maryadit (MRSDMM)
established in 9th June 1967. MAHANANDA Dairy is a baby of MRSDMM.
MAHANAND Dairy is started on 18th August 1983, at Goregaon (E) Mumbai
400065.
In the decades 1970-1980, There was an earnest need to construst one more
Dairy (5th Dairy in the Mumbai) to fulfill the present and future demand for the
Milk as their was substantial increase in procurement of Milk in rural
Maharashtra (specially in western zone).
Hence with the joint effort of the state Government and NDDB The 5th Dairy in
Mumbai was established with financial aid from National Dairy Development
Board (NDDB). The 5th Dairy in the Mumbai is Constructed at Goregaon, In
western region of Mumbai.
The total area covered by the MAHANAND dairy is around 27 acre of land
close to western express highway. With the Aim of speedy procurement of Milk
as well as speedy distribution of Milk.

11. PRESENT BUSINESS AND STRENGTH OF
MANPOWER
The present capacity of MAHANAND dairy is 8 lac liter per day, having 8 lac liter
stock in the siols and 8 lac liter capacity to store in cold storage. MAHANAND
dairy in MAHARASHTRA same as that of ANAND dairy in Gujarat.
MAHANAND dairy is handing 8 lac liter of Cow Milk as well as Milk Products
such as Shirkhand , Paneer , Ghee, Flavour Milk, Lassi, Chass , Tond Milk, Skim
Milk Powder. MAHANAND dairy is having its Packing Unit at Vashi, Pune,
Kudal, Nagpur, Pimoal kuta and at Latur. All the above mentioned Unit handles
around 3 lac liter Milk per day.
Strength of MAHANAND is around 1680 employee (including officers, staff and
workers). All working is done automatically with the help pf well established
computerized system. Including the pasteurization of Milk. Dudh Mahasangh /
MAHANAND Dairy is having Taluka Sangh as District Sangh as their member
"Dudh Sangh" and presently having 8 sangh as there member there are 25 District
Sangh and 50 Taluka Sangh and also having 13 Interstate member Sangh. The total

12. CONCLUSION
 The study on working capital management conducted in Mahanand Dairy to
analyze the financial position of the company. The company’s financial position
is analyzed by using the tool of annual reports from 2013-14 to 20015-16.
 The MAHANAD DAIRY Net Working Capital Ratio is satisfactory.
 Working capital analysis it criteria is distinctive work while and commendable
technique in postulating the financial behavior of business enterprise.
 Thus, working capital management which integrated, internal, intermediate, and
organization based financial and analytical measurement the study always a
strategic measurement with reference in performance, growth expansion and
modernization of the business.

13. Have a great Day ahead 