1. A SUMMER INTERNSHIP REPORT ON
FINANCIAL STATEMENT ANALYSIS
OF
FOOD CORPORATION OF INDIA
SUBMITTED BY-
ASHIRBAD MAJHI
College of IT & Management Education
Roll No - 1506107020
INTERNAL GUIDE EXTERNAL GUIDE
Dr. Shakti Ranjan Mohapatra Mr. A. Mukherjee
Principal, CIME. ASST General Manager(ACCOUNTS)
2. CERTIFICATE FROM THE ORGANISATION
This is to certify that ASHIRBAD MAJHI, student of College of IT &
Management Education,MancheswarIndustrialEstate, Bhubaneswar
has completed his internship report on the topic of ---FINANCIAL
STATEMENTANALYSIS & has submitted his report in partialfulfilment
of Master in Business Administration(MBA).He has worked under my
guidance & direction.
Mr. A. Mukherjee
Date: ASST General Manager(ACCOUNTS)
3. CERTIFICATE FROM THE FACULTY GUIDE
This is to certify that SOMYA RANJAN PRADHAN , student of College of IT &
Management Education, Mancheswar Industrial Estate, Bhubaneswar has
completed his internship report on the topic of “CONSUMER AWARENESS &
ACCEPTANCE OF GODREJ PRODUCTS” & has submitted his report in partial
fulfilment of Master in Business Administration(MBA). He has worked under my
guidance & direction.
Prof.M.C.Tripathy
Faculty , Marketing(CIME)
(INTERNAL GUIDE)
4. DECLARATION
I hereby declare that I have worked on the project- “ FINANCIAL STATEMENT
ANALYSIS” from 06.06.2016 to 05.07.2016 in partial fulfilment of the
requirements for the award of the degree of Master in Business Administration
in College of IT & Management Education, Bhubaneswar.
All the information that has been collected, analyzed & documented is
authentic possession to me. I would like to categorically mention that the work
here has neither been purchased nor acquired by any other unfair means. The
data & information existing in the report are accurate & up to date to the
current data, to the best of my knowledge. However, for the purpose of the
project, information already compiled in many sources has been utilised. All the
information in the project report is true representation of what I have
experienced during the project.
All care has been taken to keep this report flawless and I sincerely regret if any
unintended discrepancies are found in the report.
ASHIRBAD MAJHI
5. ACKNOWLEDGEMENT
This projectis an authenticated work on Summer Training Projectat Food Corporation of
India, RO, BBSR. I would like to thank all the people, who extended their immense help to
complete my project. I would like to express my gratitude to Mr. A. Mukherjee, ASST
General Manager(ACCOUNTS), FCI, who spenthis valuabletime to discuss aboutthe project
& his continuous co-operation helped to get on with the projecton a full swing without
much hassles.
I would also like to thank Dr. Shakti Ranjan Mohaptra (Faculty Guide) for his valuable advice
and guidance during my projectcompletion. I also thank to all staff members of the
accounts department for helping me to complete the summer internship program.
Finally, an honourablemention goes to my family & friends for their understandings and
supports on me in completing this project. Without help of the particular that mentioned
above, I would face many difficulties while doing this project.
6. TABLE OF CONTENTS
CHAPTER 1: Introduction of the project
Objective of the study
Scope & relevance of the study
CHAPTER 2: ORGANISATION PROFILE
FCI overview
FCI mission, vision, procurement
Organisational structure
PDS
SWOT Analysis
CHAPTER 3: Theoretical Aspects of study
Finance
Meaning & concepts of FSA
Objectives & Types of FA
Parties interested in FSA
Procedure of FSA
Methods of FS
CHAPTER 4: Analytical aspects of the study
Annual Reports
Balance Sheet
Profit & loss A/c
Cash Flow statement
Funds flow statement
CHAPTER 5: Findings & suggestion
Conclusion & BIbliography
7. OBJECTIVE OF THE STUDY
To have an organisational overviewaboutFCI.
To know the present operationaleffectiveness of FCI.
To analyse the financialstatement ratios.
To simplify the large amount of financialdatafor methodical
analysis.
To gain expertise in analysing in analysingthe financialdata &
informationpractically.
METHODOLOGY:
The methodologyused in basicallyexplorative type, where the study
has been taken under availablefinancialdataand discussions with the
financialdepartment officials.
SOURCE OF INFORMATION
Data are collected from individuals,officials, guides views from Head of
section, books on the subject, publishedreport relevant to the subject.
Annualreports, files, brochures provided by the accountssection &
company website.
In this project the benchmark practices hasbeen assessed. The
project studies the FINANCIAL STATEMENTANALYSIS OF FCI. The
project gives a detail description of the operational& financial
efficiency of FCI. It covers the analysisof the current assets &
current liabilitiesused in the organisation.The project entitled-
“FINANCIAL STATEMENTANALYSIS in FOOD CORPORATION OF
INDIA (FCI)” is an attempt to understand & analyse the Financial
statements at FCI. This project includes all the financialaspects of
financialstatement.
8. PERIOD OF THE STUDY
The period of the study which I have selected for my project is from
2012-13, 2013-14, 2014-15. I have analysed the Financialstatement
policies of FOOD CORPORATION OF INDIA for the last 3 years.
RELEVANCE OF THE STUDY
Financialstatement analysisof FCI has alwaysbeen relevant to Govt.
Of India.The staff of the corporationalways work under the rules &
regulationsset up by the organisationwhich is confined but as the
students we are free to analyse the data as per our knowledge. So the
result shown in the analysisof the reports may be helpfulor relevant
to the organisationwhich can be analysed by the finance experts of
FCI. It is relevant to me also as a student as it added more expertise &
practical dimensionto my studies which will definiteky be helpful for
my future prospects.
SCOPE OF THE STUDY
As there is no best to all techniqueabout the FINANCIAL STATEMENT
analysis, so this study has been as per the information held in th
financialstatement of FCI & the decision prevailingtherein thus this
analysisis more to the FCI than if it is applicable to any other
organisation.
CHAPTER 2
9. FOOD CORPORATION OF INDIA PROFILE
FCI Overview
Operation
PDS
SWOT Analysis
HISTORY OF FCI & ESTABLISHMENT
The Food Corporation of India (FCI) was established on 14th
January,1965 under the Food Corporations Act, 1964. FCI is a Public
Sector Undertaking under the Department of Food & Public Distribution,
Ministry of Consumer Affairs, Food & Public Distribution, and Government
of India (GOI). The Corporation is the main agency, responsible for
execution of food policies of the GoI. The functions of FCI primarily relate
to the Purchase, Storage, Movement, Distribution and Sale of food grains
on behalf of the Government of India.
10. OBJECTIVES
1. Food Corporations of India is established under the Food Corporations
Act, 1964 for the purpose of trading in food grains and other foodstuffs
and for matters connected therewith and incidental thereto.
2. Under Section 13 of the said Act the primary duty of the Corporation is
to undertake the Purchase, Storage, Movement, Transport, Distribution &
Sale of Foodgrains & Other Foodstuffs and
3. Subject as aforesaid, the Corporation may also with the previous
approval of the Central Government, -
i) Promote by such means, as it thinks fit, the production of foodgrains
and other foodstuffs.
ii) Set up, or assist in the setting up of, rice mills, flour mills and other
undertakings for the processing of food grains and other foodstuff and
iii) Discharge such other functions as may be prescribed or as are
supplemental, incidental or consequential to any of the it functions
conferred on.
MISSION
• Ensuring food security of nation by maintaining satisfactory level
of operational and
buffer stocks of foodgrains.
• Distribution of food grains throughout the country for Public
Distribution System.
• Effective Price Support Operations for safeguarding the interest
of farmers.
VISION
To play a significant role in India`s success in transforming the crisis
management oriented food security to a stable security system to ensure
availability, accessibility and affordability of food grains to all people at all
time so that no one, nowhere and at no time go hungry.
VALUES
11. Sincerity
Teamwork
Speed
Integrity and fairness in all matter
Transparency and without any fear or favour.
Respect for dignity and potential of individuals.
Loyalty and pride in the corporation
ACCOUNTS
It has been provide under section 34 of the Act that the Food Corporation
of India shall maintain proper accounts & prepare annual statements of
Accounts, Profit & Loss account & Balance Sheet in such form as may be
prescribed.
INTERNAL AUDIT
During the year, Internal audit was conducted by the internal audit team in
114 District/Region/Zone/Headquarters/offices and Audit & physical
verification has been undertaken in 308 Depots. Rs 50.37 crores were
recovered at the instance of audit during the year 2013-14. Total 2508
internal paras and 409 PB paras were raised.
BUDGET
Under section 26 of the Act, the Food Corporation, before the
commencement of such year, shall prepare statement of program of its
activities and financial estimates in respect therefore for submission to the
Central Govt.
DELEGATION OF POWERS
It has been provided in section 37 of the Act FCI may delegate to the
officers of the corporation such of its powers & function under the Act, as
it may deem necessary.
PROCUREMENT
12. The Govt. Policy of procurement of food grains has the broad objectives
of ensuring Minimum Support Price to the farmers and also ensuring
availability of food grains to the weaker sections of the society at
affordable rates.
MOVEMENT
Movement of food grains are primarily undertaken by Rail and Road
about 90 % of the food grains are moved by Rail. Road movements are
restricted to hill states like J&K, Himachal Pradesh, Uttarakhand etc.
PUBLIC DISTRIBUTION SYSTEM
(PDS) is an Indian food security system. Established by the Govt. Of India
under Ministry of consumer affairs, Food, and Public Distribution and
managed jointly with the state govts of India. It distributes subsidized food
and non-food items to the India’s poor. Major commodities distributed
include staple food grains such as wheat & rice through a network of
public distribution shops(also known as ration shops) established in
several states across the country. Food Corporation of India, a Govt
based corporation, procures and maintains the PDS. It is considered to
be the most important food security network. The average level of
consumption of PDS grains in India is only 1 kg per person per month.
The PDS has been criticised for its urban bias and its failure to serve the
poorer sections of the population effectively.
The central & state govt shared the responsibility of regulating the PDS.
While the central govt is responsible for procurement, storage,
transportation & bulk allocation of food grains, state governments hold the
responsibility for distributing the same to the consumers through the
established network of fair price shops(FPSs). State govts under PDS
scheme each family below the poverty line is eligible for 35 kg of rice or
wheat every month, while a household above the poverty line is entitled to
15 kg of food grain on a monthly basis. A BPL card holder should be
given 35 kg of food grain & the APL card holder should be given 15 kg of
food grain as per the norms of PDS. The PDS of India is not without its
defects. With a coverage of around 40 crores (BPL) families. Deceitful
dealers replace good suppliers received from FOOD CORPORATION OF
INDIA with inferior sock and sell FCI stock in the black market.
13. There is no set criterion as to which family is BPL and which is APL. The
non ambiguity gives massive scope for corruption & fallouts in PDS
systems because those who are actually meant to be benefitted are not
able to taste the fruits of PDS.
TO IMPROVE THE SYSTEM OF THE PDS.....
Vigilance squad should be strengthened to detect corruption, which is an
added expenditure for taxpayers.
FCI & other prominent agencies should provide quality food grains for
distribution, which is again an added expenditure & not full proof
SWOT ANALYSIS
14. Strength-
The corporation has the strength of high level of infrastructure like storage
capacity, technically qualified man power, proper financial management,
well planned procurement and preservation policy. The management is
committed towards sound corporate governance in all aspects of
operations.
Weakness-
Depleting manpower due to large scale retirements followed by
insufficient induction through direct recruitment is the weakness of the
corporation which may adversely affect its operation.
Opportunities-
The Govt. Of India has introduced the National Food Security Act,
2013(NFSA). This will enhance the operation of the corporation due to the
higher coverage of the population. With the present experience of the
corporation, it is expected that the corporation can efficiently meet the
enhanced level of operation under NFSA.
Threats-
Productions of food grains are largely dependent upon the factors like
monsoon, Minimum Support Price etc. There are wide variation in
production which puts a challenge to handle the level of procurement,
storage, movement and distribution of food grains. Similarly, at the time of
low production, the corporation had to import food grains to meet PDS
requirement. With depleting manpower these manpower these wide
variation in operation puts a threat to manage the situation and All the
function of FCI are controlled including job holders held by Govt. Of India
and now it will control State govt.
