1NH18MBA13

PROJECT REPORT
ON
(CASH FLOW STATEMENT)
BY
BARSHAT KUMAR DV
1NH18MBA13
Submitted to
DEPARTMENT OF MANAGEMENT STUDIES
NEW HORIZON COLLEGE OF ENGINEERING,
OUTER RING ROAD, MARATHALLI,
BENGALURU
In partial fulfilment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

Under the guidance of
SHESHU
Asst.professor
2018 - 2020
1
CERTIFICATE
This is to certify that BARSHAT KUMAR DV bearing USN

1NH18MBA13, is a bonafide student of Master of Business
Administration course of the Institute , autonomous program, affiliated to
Visvesvaraya Technological University, Belgaum. Project report on ¯A
STUDY ON CASH FLOW STATEMENT is prepared by him/her under
the guidance of (Name of the guide), in partial fulfillment of requirements
for the award of the degree of Master of Business Administration of
Visvesvaraya Technological University, Belgaum Karnataka.
Signature of Internal Guide Signature of HOD Principal
Name of the Examiners with affiliation Signature with date
1. External Examiner
2. Internal Examiner
2
3
DECLARATION
I, BARSHAT KUMAR DV, hereby declare that the project report on “CASH FLOW
STATEMENT_” with reference to “TIRUMALA MILK PRODUCTS ” prepared by me under
the guidance of SHESHU SIR , faculty of M.B.A Department, New Horizon College of
Engineering.
I also declare that this project report is towards the partial fulfilment of the university regulations
for the award of the degree of Master of Business Administration by Visvesvaraya
Technological University, Belgaum.
I have undergone an industry project for a period of Twelve weeks. I further declare that this
report is based on the original study undertaken by me and has not been submitted for the award
of a degree/diploma from any other University / Institution.
Signature of Student
Place:
Date:
4
ACKNOWLEDGEMENT
The successful completion of the project would not have been possible without the
guidance and support of many people. I express my sincere gratitude to KUMAR ,
for allowing to do my project at TIRUMALA MILK PRODUCTS .
I thank the staff of (Company Name), Bengaluru for their support and guidance
and helping me in completion of the report.
I am thankful to my internal guide SHESHU SIR , for his constant support and
inspiration throughout the project and invaluable suggestions, guidance and also
for providing valuable information.
Finally, I express my gratitude towards my parents and family for their continuous
support during the study.
BARSHAT KUMAR DV
1NH18MBA13
5
TABLE OF CONTENTS
SL. NUMBER CONTENTS PAGE NUMBERS
1 Executive Summary 0
2 Theoretical Background Of The Study 6-12
3 Industry Profile &Company Profile 13-32
4 Application Of Theoretical Framework 33-46

Analysis And Interpretation Of Financial
5 47-55
Statements And Reports
Learning Experience- Findings,
6 56-58
Suggestions And Conclusion
7 Bibliography 58-59
6
CHAPTER – 1 INTRODUCTION
A cash flow statement is an essential tool of short-term financial analysis.
However, it suffers from certain limitation such as:
1. The manipulations made by the firm over a period by defining purchases or other
payments, are not revealed by a cash flow statement. As such, it may not depict the true
liquidity position of an enterprise.
2. A cash flow statement is not a substitute for the income statement or funds flow
statement. Each of these statements has a function to perform the following.
 Two months of time is insufficient.
 The information used is primarily from historical reports available to the public and the
same doesn’t indicate the current situation of the firm.
 Detailed analysis could not be carried for the project work because of the limited time
span.
 Since cash inflow and outflow matters are sensitive in nature these same could not be
acquired easily…
 The present study is limited 2017.
Preparation of cash flow statement:

Generally, a cash flow statement is prepared with the help of financial statement
viz., income statement, where cash balance at the beginning is reconciled with cash
balance at the end, and like funds flow statement, it can also be prepared either in the
‘report form’ or in ‘account form’.
Types of cash flow

The flow or movement of cash may be of two types, namely, actual flow of cash
and national flow of cash.
7
Actual flow of cash
There may be actual or direct flow of cash ‘in’ and ‘out’ of the business.
Actual inflow of cash

Similarly, there is inflow of cash when debentures are issued for cash, loans raised
in cash, sale of fixed assets for cash, dividend, received in cash, etc.
Actual out flow of cash

This transaction results in the actual outflow of cash from the business. Similarly,
there is outflow of cash on repayment of loans, redemption of preference shares or
debentures, payment of taxes, dividend, etc. in cash.
National cash flow:

The indirect movement of cash ‘in’ and ‘out’ of the business is referred to as
‘national flow of cash’ which may take place under the following circumstances.
National inflow of cash:

National inflow of cash takes place whenever a transaction results in increasing
current assets.
Example: purchase of goods on credit. Entry:
purchases a/c Dr
To creditors a/c
This transaction results in increasing creditors to the extent of credit purchases
made. Though there is no actual inflow of cash, goods purchased on credit can be
converted into cash. Hence, there is national inflow of cash i.e., it may be considered as
loan taken from the creditors. Similarly, when the transactions result in decreasing current
asset, such as book-debts, bills receivables, stock etc., it is to be considered as national
inflow of cash.
National out flow of cash:

National outflow of cash takes place whenever a transaction results in decreasing
current liability or increasing current assets.
Example: sale of goods on credits
8
Entry : debtors a/c Dr
To credit sales
This transaction result increasing book-debits / bills receivable to the extent of credit sale
made. Though there is no actual outflow of cash, goods sold on credit would cost the
business in terms of materials, labor and overheads. Hence, there is national outflow of
cash i.e. it may be considered as loan advanced to customers. Similarly, when there is
decrease in current liabilities, it may be due to part settlement of these dues. Hence, such
decrease in current liabilities is treated as national out flow of cash.
Net profit method

Ascertained of cash from operations based on the net profit of the business is
called as net profit method:
1. Outstanding expenses:
Outstanding expenses are those expenses which are due to be paid. They are
charged, to profit and loss a/c but no cash is paid in this respect during the current year.
Hence, they are added back while calculating the cash from operations. However, if any
expenses of the previous year are given, they may be assumed to have been paid during
the year and are shown as the outflow of cash in the cash flow statement.
2. Prepaid expenses:
Are the expenses of the next or subsequent accounting year paid in the current
year or expenses paid in advance? These expenses are not charges to profit & loss a/c.
hence, they are shown as outflow of cash in the cash flow statement. However, if there are
prepaid expenses given, they are paid in the last or previous accounting year for the
current accounting year, and as such they are added back while ascertaining cash from
operations.
3. Outstanding or accrued income:

It is an income due to be received, it is credited to profit and loss account but no
cash is received. Hence, it is deducted from sources from these from these operations.
However, if there is any outstanding income relating to previous year
9
is given, it may e assumed to have been received during the year and shown as inflow of
cash in the cash flow statement.
4. Pre-received income:
It is the income received in advance. If there is any pre-received income in the
current year, it is shown as inflow of cash in cash flow statement. However, if there is any
pre-received income, it is deducted from sources from operations while ascertaining cash
from operations.
5. Proceeds from sale of fixed assets:

Amount received from sale fixed assets or investments results in the inflow of
cash. Hence, it is shown as inflow of cash in cash flow statement.
6. Issue of shares or debentures:

When the shares or debentures are issued for cash, there is inflow of cash.
As such, it is shown as inflow of cash in the cash flow statement.
7. Rising of loans
When the money is borrowed from financial institutions in terms loans or cash
credits, it amounts to inflow of cash. As such, it is shown as inflow of cash in the cash
flow statement.
Out flow of cash Purchase

of fixed assets
Increases in fixed assets or purchase of fixed assets during the accounting year
amounts to the outflow of cash in the cash flow statement. However, purchase of fixed
assets may have to ascertain by preparing concerned fixed asset accounts on the same lines
as prepared under funds flow analysis.
Repayment of loans
Repaid during the year amounts to the outflow of cash. As such, it is shown as
outflow of cash in the cash flow statement. Loans repaid during the year may
10
be ascertained by facilitating comparison of loans outstanding in the last year with those
loans in the current year.
Redemption of preference share of debentures:

Preference shares or debentures may be redeemed at par, at premium or at
discount. Depending upon the circumstances, repayment of preference share capital or
debentures is to be considered as outflow of cash on the same lines as discussed under
funds flow analysis and shown as outflow of cash in the statement.
Sources and uses of cash:

The following are the sources of cash
1. The profitable operations of the firm.
2. Decrease in assets.
3. Increase in liabilities and
4. Sale proceeds from an ordinary or preference share issue.
The uses of cash are:

1. The loss from operations.
2. Increase in assets
3. Decrease in liabilities
4. Redemption of redeemable preference shares and
5. Cash dividends.
The easiest and the direct method of preparing a statement of
Changes in cash position are to only record inflows and outflows of cash, and find out the
net changes during a given period. The rupees received minus the rupees paid during the
period are cash balance at the end of the period. If the net change in the cash position has
to be found out from the income statement and comparative balance sheets, adjustments
for the non-cash items are made. These adjustments are made in the same way as in
preparing funds flow statement. For example cash from operations can be found out by
adding depreciation to net profit.
11
In addition changes in current assets & current liabilities also affect flow of cash from
operations. This is discussed below:
Changes in current assets:
Increases in current assets reduce cash flow from operations while decreases in
current assets increase cash flow consider the following examples: Increase in debtors
implies that cash collections are greater than sales figure.
Increase or decrease in inventory is adjusted to the cost of goods sold. Increase in

inventory implies that cash outflows is greater than the cost of goods sold figure, while
decrease in inventory means that cash outflow is less than the cost of goods sold figure.
Increase in prepaid expenses implies that cash outflow is more than the amount of actual
expenses, while decrease in prepaid expenses means that cash outflow is less than the
amount of actual expenses.
Changes in current liabilities:
Increases in current liabilities increases in cash flow from operation while

decrease in current liabilities reduces it. Consider the following examples:
1. Increase in creditors implies that cash payments to creditors are less than the
purchase figure, while decrease in creditors indicates that cash payments to creditors are
greater than purchases figure.
2. increase in income in advance implies greater cash inflow than shown in the profit
and loss statement as income, while decrease in income in advance means less cash
inflow than shown as income.
12
13
Chapter 2
INDUSTRY
PROFILE
Milk delivering creatures have been tamed for a great many years. At first they were a
piece of the subsistence cultivating that wanderers occupied with. as the network moved
about the nation so did their creatures go with them. Securing and nourishing the creatures
were a bug some portion of the harmonious connection between the creatures and the
header.
In the later past, individuals in agrarian social orders possessed dairy creatures that they
drained for residential and neighborhood (town) utilization, a regular case of a bungalow
industry. The creatures may fill numerous needs (for instance, as a draft creatures for
pulling an ordinarily drained by and the crowd size was very little so every one of the
creatures could be drained in under 60 minutes around 10 for each drained. These
undertakings were performed by a dairymaid (dairy lady) of dairyman. The word dairy
harkens back to Middle English dairies, deyerie, from color (female hireling or dairymaid)
and further back to early English edge (kneader or bread).
With industrialist particle and urbanization the inventory of milk turned into a business
industry with specific types of cow being produced for dairy, as unmistakable for dairy,
as particular from meat or draft creatures. At first more individuals were utilized as
milkers yet it before long went to automation with machines intended to do the draining
Rancher draining a dairy animals by hand.
Truly, the draining and the handling apparatus spot near one another the in reality on
dairy ranch. Individuals drained the animals by hand of homesteads where just little
numbers are kept hand-draining may at present be rehearsed. Hand-draining is practiced
by getting a handle on the nipples ( frequently articulated tit circles ) in the hand and
communicating milk either by pressing the fingers logically, room the udder end to the tip,
or by crushing the nipple among thumb and pointer at that point moving the hand
descending from udder end of the nipple. The activity of the hand or finger is intended to
deter the milk conduit at the udder (upper) end and, by the development of the fingers,
close the channel dynamically to the top to
14
express the caught milk. Every half or quarter of the udder falsehoods discharged on
milk-channel limit at time.
The stripping activity is rehashed, utilizing two hands for speed. The two strategies bring
about the milk that was caught in the milk conduit being squirted knout Utah end into a
container htat falsehoods upheld between the knees (or lays on the ground) of the milkier,
who generally sits on a low stool.
Customarily the dairy animals, or bovines, would stand line the field of enclosure while
blast drained. Youthful stock, yearlings, would need to be prepared to stay still to be
drained. In numerous nations the bovines were fastened t o a post a drained. The issue
with this technique line that depends on calm, bract capable monsters, in light of the fact
that the rear finish of the dairy animals isn't controlled.
In 1937 it was discovered that ox-like somatotropin (BST or RBST) would expand the
yield of milk. Monsanto built up a manufactured rendition of this hormone. Lin February
1994 BST was favor by the nourishment a medication organization (FAD) for us line the
U.S. it has turned out to be normal, in the U.S. in any case, not somewhere else, to infuse
it into milchkine (dairy cows) so as to build their creation by up to 15%
Be that as it may, there are claims that this training can have negative ramifications for the
creatures themselves. An European association logical commission was solicited to give
an account of the occurrence from mastitis and different issue in dairy cows and on
different parts of the welfare of dairy cows the commissions proclamation, consequently
embraced by the European association, expressed that the utilization of best generously
expanded medical issues with cows, including foot issues, mastitis and infusions site
response, encroached on the welfare of the creatures and caused conceptive issue. The
report presumed that based on the wellbeing and welfare of the creatures, best no cylinder
utilized. Wellbeing h Canada denied the clearance of best in 1999, the suggestions of
outer councils were that in spite of not finding a critical wellbeing danger to people, the
medication exhibited a risk to creature wellbeing and hence couldn't be sold in Canada.
15
1.1 ORIGIN OF THE INDUSTRY
The expression "Market milk" alludes to liquid entire milk that is offered to people more
often than not for direct utilization. As a noteworthy endeavor, the market milk industry is
of similarly late source even is created dairy nations, for example, U.S.A. despite the fact
that old composed report milk as a significant nourishment, its preparing and dispersion
as a different business didn't create in those nations until the grouping of populace in the
urban areas arrived at an arrived at an elevated level in the nineteenth century.
MARKET MILK INDUSTRY IN INDIA AND ABROAD
Albeit a start in sorted out milk dealing with was made in India with the
foundation of military dairy ranches (most seasoned Allahabad, 1889), the notable
highlights of the market business had been:
1. Handling of milk in Co-employable Milk Unions built up everywhere

throughout the nation from a more minor perspective in the beginning times.
2. Long separation refrigerated rail-transport or milk from Anand to Bombay since

1945.
3. Pasteurization and packaging of milk on an enormous scale for composed

circulation was begun an Aarey (1950), Worly(1961), Calcutta (Haringhta, 1959),
Delhi(1959), Madras(1963)etc.,
4. Establishment of Milk plants under the five-year searches for gold Development
all over India. These were taken up with the double object of expanding the national
degree of milk utilization and guaranteeing better comes back to the essential milk
maker. Their primary point was to create increasingly, better and less expensive milk.
Development AND DEVELOPMENT OF THE INDUSTRY
Until the year 1940, there was almost no distributed data of the strategy for arrangement
and utilization of these items. The credit for the principal production regarding the matter
goes to Dr. W.B. Davies, the main chief of Dairy Research,
16
India Dairy Research Institute (presently National), Bangalore. Inside the range of three or
four decadessine his book showed up, extensive research has been directed at the National
Dairy Research Institute and other spot on indigenous Dairy Products.
In India, there was no advancement in the Diary Industry before autonomy. Legislature of
India understood the need of expanding Milk creation and by items there by benefiting
considerable openings for work to the urban and country Community.
A market is one of Principal method for expanding milk generation and milk profitability of
Dairy Industry. Notwithstanding the abovementioned, showcasing serves to the
improvement of benefit of the venture.
So as to manufacture a suitable and continuing National Dairy Industry and Co- usable
lines the NDDB propelled an undertaking initiated activity Flood assembled from the
closeout of items dependent on remote nourishment gifts as Skim Milk Powder and
Butter Oil. Activity flood, the ales advancement Program embraced in the worked, was
started intently on the impact points of green Revolution in the Country. Against the
scenery of gigantic excess of Milk Production in the exceptionally created Milk
producting Countries in the West and diminishing per capital. Milk accessibility at home
with its vow to give milk to the whole gang it was viewed as the World's biggest Dairy
Development Program. It prodded the Indian Dairy Industry to dispatch a "White
Revolution".
As indicated by the Agreement marked by World Food Program (WFP) and Government of
India, the WFP will mastermind to supply 1,26,000 metric huge amounts of margarine oil
which the company will deal with in the interest of the Government. The Projector goes for
the improvement of Milk Marketing in the Organized Sector particularly in the Four Major
Cities stretched out more than ten States i.e., Punjab, Haryana, Rajasthan, Utter Pradesh,
Bihar, West Bengal, Tamilnadu, Andhra Pradesh, Maharashtra and Gujarat.
17
NATIONAL DAIRY DEVELOPMENT BOARD (NDDB)
At the hour of initiation of cows feed industrial facility at Kanjari in October 1964. The
late ShriLalBahadurShastri, the Prime Minister of India paid an unscheduled visit to drain
creation Co-employable society and remained there medium-term. He was dazzled by the
Socio-financial changes brought by milk co-agents in Kaira District, and wanted to have a
national Dairy Development Board is the Chief Executive of the association who is
bolstered by Professional to complete Board's exercises
ANAND PATTERN DAIRY DEVELOPMENT
The formation of Anand Pattern of milk co-operatives was landed with the
organization of the Kaira District Co-operatives Milk Production. Milk Producers
themselves control procurement processing and marketing.
KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION

LIMITED (AMUL)
Amul symbolizes the fruitful battle if Kaira District Farmers to win a reasonable cost for
their items. It arrived at its peak in 1945. The Milk was then gathered by a Private Trader
Mr. PestonjiEdurji individual through temporary workers for Bombay Milk Scheme. Each
Milk maker can turn into an individual from co0operative Society. As a general gathering
of individuals, agents are chosen to shape an overseeing advisory group, which Manager
the day affaires to drain accumulation and its testing idea, sold dairy cattle feed. Every
general public likewise gives Artificial Insemination (AI) administrations and veterinary
emergency treatment.
DAIRY INDUSTRY IN ANDHRA PRDESH
18
The primary occupation in Andhra Pradesh is development. The towns mirror the
financial improvement, good and social estimations of human race Dairy remains as the
foundation of Agriculture and simultaneously it keeps up significant job for soundness of
rustic monetary conditions and keeps up country's wellbeing by providing sweet milk. It
gives wellbeing as well as pay to drain makers.
Independence
In Andhra Pradesh the pilot milk plan acquired progressive change Dairy Development
and the monetary advancement. The program of "Activity Flood" made milk insurgency
and laid new seeks after annihilation of destitution and joblessness. Presently, the Dairy
Industry is furnished with Modern Technical expertise and is on a situation to confront any
test of future milk requests under co- employable segment a few stages are taken to give
milk gathering focuses in each alcove and corner of the condition of increment the creation
limit of the milk yielding creatures the assistance of program of current specialized
techniques for accomplishing independence in milk generation.
Dairy Development
In 1960 a pilot milk supply scheme was started in our started in our state for the
Dairy Development. It initial milk collection capacity was 100 liters a day at the time of
starting. Now, its dairy milk collecting increased 10 lakh liters per day. It is acting as a
liaison between milk producers of villages and consumers of the milk providing
reasonable price to the producers to maintain stable market.
Company Brands Major Products
Nestle India Limited Milkmaid, Ceralac, Sweetened condensed milk,

Lactogen, Milo&Everuday malted foods, milk powder and
dairy whitener
Milk Food Limited Milk food Ghee, Ice cream and other milk
products
19
Smith kline Horlicks, Maltova& Viva Malted milk food, Ghee,
Beecham Limited butter, powder milk, milk fluid
and other milk based baby
foods
Indoan Industries Indana Condensed milk, skimmed

Limited milk powder, whole milk
whitener, chilled and processed
milk.
Gujarat Co- Amul Butter, cheese and other milk

Operative products
Mil
k Marketing
Federation Limited
H.J.Heinz Limited Farex, Infant milk food& malted Milk

food
Complan, Glactose,
Boonniemix&Vita Milk
Britannia Milk Man Flavored milk, cheese, milk

power& ghee
Cadbury Bournvita Malted food
Packaging Technology
Milk was at first offered entryway to-entryway by the neighborhood milk man. At the
point when the dairy co-agents at first began showcasing marked milk, it was sold in glass
containers fixed with foil. Throughout the years, a few improvements in bundling media
have occurred. In the mid 80's plastic pockets supplanted the containers. Plastic pockets
made transportation and capacity advantageous, other than lessening costs. Milk stuffed in
plastic pockets/bottles have a timeframe of realistic usability of only 1-2 days, that
excessively just whenever refrigerated. In
20
1996, Tetra packs were presented in India. Tetra packs are aseptic cover packs made of
aluminum, paper, board and plastic. Milk put away in tetra packs and treated under Ultra
High temperature (UHT) procedure can be put away for four months without
refrigeration. The greater part of the dairy co-agents in Andhra Pradesh, Tamil Nadu,
Punjab and Rajasthan sell milk in tetra packs. Anyway tetra pressed milk is costlier by
Rs.5-7 contrasted with plastic pockets,. In 1999-00 Nestle propelled its UHT milk market
is relied upon to develop at scope of more than 10-12% in coming years.
CHANGING PATTERN OF THE INDUSTRY
The interest for milk and milk items in the nation is on the ascent. The expansion in
buying force and pace of urbanization is prompting an adjustment in the way of life and
utilization propensities for the family units. The present patterns demonstrate that 44% of
the all out populace will prompt an expansion in utilization of dairy items.
The household advertise for spread and ghee is developing at a sound pace of over 10%
per annum yet the equivalent may not be valid if there should be an occurrence of a
universal market. The creation and fare of margarine has seen a noteworthy decrease in a
portion of the created nations. The circumstance is presently disturbing to the businesses
which are having universal market for this item These organizations unquestionably need
to consider other potential items that are increasing enduring development everywhere
throughout the world.
STRATEGIES TO BOOST INDIAN DAIRY PRODUCTS GLOBALLY

 Improve the quality of the products.
 Value addition into widely accepted products.
 Improving productivity and improving the cost of production.
 Building brands.
 Public relations and stick measures to avoid misinformation, viz.
 To maintain lead in milk production.
 Research and development.
 Utilization of desirable constituents from the waste rather than draining.
21
FUTURE ASPECTS
The invariable growth of milk production in India has made its position envious to
the other nations. The proper utilization of milk in the right products and direction will
definitely be helpful in realizing the growth potential of dairy industry. A more systematic
approach to process innovation, quality assurance and shelf life improvement for the
indigenous and western dairy products in needed. More energy efficient systems and
introduction of some of the continuous processes for the and strong in near future.
2.2 COMPANY PROFILE:
Tirumala Milk Products Private Limited is an expertly overseen organization

occupied with the assembling of a wide scope of Dairy Products which incorporate Milk
in Sachets, Sweets, Flavored Milk, Curd in Cups and Sachets, Milk Powder, Butter,
Ghee and Butter Oil both in mass just as in customer packs.. Set up in 1998, Tirumala
Milk Products (P) Ltd. is one of the quickest developing Private Sector Enterprises in
India with a group of devoted experts. The organization has one of the most present day
and adaptable plants in the Indian Dairy Industry with best in class innovation. Tirumala
Milk Products
(P) Ltd. items meet stringent quality control tests and take into account the superior
fragment of the market for Dairy Products. Tirumala Milk Products (P) Ltd. is by and by
executing an extension customized and proposes to dispatch new items sooner rather than
later. Directly our market nearness is in Andhra Pradesh, Karnataka and Tamil Nadu. The
organization handle 7 Lakh liters of milk every day in our pressing stations and dairy
plant, which is the single biggest plant in the territory of Andhra Pradesh. Our Registered
Office is situated at Narasarao Pet, GuturDist and Corporate Office is situated at
Ameerpet, Hyderabad. Tirumala Milk Products (P) Ltd. sells a rich, shifted offering of
nutritious, delectable and sound nourishment items under understood brand. Taste,
wellbeing, comfort, unwavering quality and imperativeness for buyers are key attributes.
The milk originates from dairy cattle group that get the best care
22
alongside solid and nutritious eating regimen as quality feed to guarantee that they
produce healthy, excellent milk.
The major contributors to the success of Tirumala Milk Products (P) Ltd. are:-
1. Milk Procurement Network

2. Superior sales and marketing prowess
3. Strategic technological & infrastructural advantage
4. Efficient human investments
The company has the advantage of :
Procurement of Quality Buffalo and Cow milk through a strong network of

chilling centers spread across states of Andhra Pradesh, Tamil Nadu and Karnataka.
Strong roots in local markets and first-hand knowledge of the local culture.
Business intelligence and technical expertise that is applied to serve our consumers.
VISION &MISSION :
Vision
“To produce and supply superior quality products with exceptional customer service
to eventually grow as market leader in diary industry.”
Mission
Tirumala Milk Products (P) LTD. will constantly strive to market quality products
at competitive prices, provide value to our business partners, all the while delivering
exceptional customer service with the highest regard for business ethics.
BOARD OF DIRECTORS:
1. Bolla Brahma Naidu
2. DandaBramhanandam
3. BattiniNageswaraRao
4. NallabotuVenkataRao
5. E.N.Rao
23
B.Brahma Naidu, Managing Director,
He is the Managing Director of Tirumala Milk Products Pvt. Ltd., headquartered

at Narasaraopet, Guntur District, and Andhra Pradesh, India.
Mr. Naidu hails from a farming family and started his career at a young age of 18
year with a transport business, In 1992, when the Government of Andhra Pradesh issued a
G.O regarding establishment of dairies in private sector, he opened a Milk Chilling unit in
partnership with Mr.B.NageswaraRao and Mr. Danda Brahman dam who was working in
co-operative dairy at Guntur and had very good knowledge of procurement and technical
knowledge in dairy field.
Later based on the market research and demand he planned to sell milk in packet
under the brand name of "THIRUMALA". Subsequently, a packing plant was established
in the year 1995 at Vellalcheruvu Village, SanthamagulurMandal, Prakasam District.
Mr. Naidu scrutinizes every aspect of our day-to-day operations and develops
strategies for continuous improvement of quality and efficiency.
D.Brahmanandam, Joint Managing Director,
He is the Joint Managing Director of Tirumala Milk Products Pvt. Ltd., and he is
based at Anna Nagar Chennai.
24
Hailing from an agricultural family, Mr.Brahmanadam started his career at the age
of 21 Years.After completion of his education at Narasaraopet, worked in Procurement
Team of ‘The Guntur District Milk Producers Co-operative’. He went on to show his
leadership and foresight by co-founding Tirumala Milk Products Pvt. Ltd. along with Mr.
Bolla Brahma Naidu and Mr. B.NageswaraRao.
Mr. Brahmanadam's attention to excellence is shown by his dedication in making
Tirumala Milk a household name in Chennai and surrounding areas. Under his able
leadership and operational excellence, Tirumala started the SMP & Products plant at
Gudur, Nellore District and commenced export of SMP & Butter
B. NageswaraRao, Director,
Mr. B. NageswaraRao Director hails from Narasaraopet area of Guntur Dist,

A.P and is the co-promoter of Tirumala Milk Products Pvt. Ltd.Mr. B. NageswaRao's
career spans several decades in logistics. The entire logistical strategy and operations is
handled by him at Tirumala Milk Products Pvt. Ltd. Since joining the company, Mr.
NageswaraRao has held various roles overseeing the logistical strategies for new business
opportunities and responsibility for the company’s logistical infrastructure.
Mr. NageswaraRao is now based out of Gudur in Nellore District and manages the
day-to-day operation of the company's largest unit and composite milk and products plant
there.
Dr. N.VenkataRao, Director,
25
A graduate in Veterinary Sciences from College of Veterinary Sciences, Tirupati,
and Post Graduate Diploma holder in Rural Management from IRMA, Anand, Dr.
VenkataRao has over 20 years of experience in this industry. He was associated with the
Guntur Dist, Milk producer’s co-operative union at Sangam in milk procurement and
milk processing departments.
Dr. VenkataRao is responsible for setting the strategic objectives of the company
and the policy framework in terms of planning and implementation of milk procurement
strategies. Dr. VenkataRao is now based out of Palamaneru, Chittoor Dist and oversees the
operations in Karnataka and Chittoor district of A.P. He is also responsible for monitoring
the performance of the Tirumala Curd, Milk and other dairy products in Bangalore and
nearby markets.
E.N.Rao, Executive Director,
A graduate in Veterinary Sciences from College of Veterinary Sciences, Tirupati,

and obtained Post Graduation in Management from I.I.M., Ahmadabad, Mr. E.N. Rao has
the appropriate range of proficiency, experience and skills to handle all areas of operation.
He started off as an Executive Trainee in the Godrej Group and has 19 years of rich
experience. His vast experience in the dairy industry makes him a skilled hand in
ensuring that all appropriate policies and practices of the company will achieve the
business objectives. Mr. Rao has worked as a President at Heritage Foods (I) Ltd,
Hyderabad for 6 years and Director at Cream line Dairy Products, Hyderabad for 5 years.
He later joined the TMPPL board in Nov 2007 as Executive Director based at corporate
office, Hyderabad.
26
CORPORATE MANAGEMENT TEAM
Tirumala Milk Products (P) Ltd. is a growth-oriented organization. While
competitive with larger-sized companies, we maintain the flexibility and customer
attention that only smaller enterprises can provide. The Corporate Management Team
keeps us focused for betterment in their areas. They are
Raghavan. R
Dairy Technologist with over 28 years’ experience in Dairy and food processing
industries both in India and abroad (Midlist and Africa).Experienced in setting up of
major dairy projects like Ice cream UHT Milk, Yoghurt Plants etc.Undergone intensive
training in Europe and US in the field of dairy farming and Technology. He is working as
Sr. General Manager at our Gudur Plant.
Suresh. A
M.Sc in Dairy Technology with experience in dairy industry and other food
processing industries. He is General Manager for our Bangalore and Palamaneru regions.
Mr. Raja Gopal.VV M.Com. (ICWAI)
Having 12 years of experience in core accounting. Asst. General Manager

– Finance & Accounts Based at Corporate Office, Hyderabad.
Mr.Prasad.VSRK
Having vast experience in production and operation. General Manager – Plant

Based at Gungal, near Ibrahimpatnam RR District.
SubbaiahChowdary . V (CA)
MrSubbaiah is having 17 years of experience in the food and dairy business.

At Tirumala, he is the Finance Head and handles Chennai region.
Srinivas. R (MSc Dairy Technology)
27
An MSc Dairy Technology, from Allahabad University (92-94 Batch),
Mr.Srinivas has 13 years of experience in Milk Procurement, Processing and Marketing.
At Tirumala, he is the General Manager, Procurement and handles Procurement in
Narasaraopet Region.
MallikarjunaRao. CH (M. Com)

With 10 years of experience, Mr. Mallikarjuna is Manager, Accounts at Regd
Office. He has vast experience in the field of Accounts and MIS.
Chakradhar. K (M.A, MBA)
An M.A in Public Administration from OU and MBA From IGNOU, Mr. Chakradhar has
19 years of experience in varied business functions like Recruitment, Statutory, Payrolls,
Industrial Relations and Admin Handling. At Tirumala, he is the manager, HR & Admin
and handles Hyderabad region.
COMMITMENTS
Tirumala Milk Products (P) LTD. is committed:
1. To serve our customers with better products and higher quality services than is
available from any other dairy company at present.
2. To continue the tradition as a trusted dairy by managing sustainable,

profitable, and environmental practices both within our company and our
community.
3. To achieve longevity by adapting to our customers’ changing needs and market

trends.
4. To invest in the abilities, opportunities, and teamwork of our employees thus

igniting passion, commitment, and success.
5. To produce products of international quality with acceptance from overseas

clientele.
AREAS OF OPERATION
28
Tirumala distributes milk to various parts of Tamil Nadu, Andhra Pradesh, and
Karnataka. Gudur is the main source for delivering milk and milk products to Chennai
and other major parts of Tamil Nadu. The procurement and processing section located at
Pasupattur village of Chittoor district in Andhra Pradesh is the source of milk, curd and
products which are supplied in Bangalore and Mysore Markets.
The packing station located at Vellacheruvu, 20 KM away from our Registered
Office and plant at Singavaram West Godavari District and Wadiyaram in Medak District
supply milk curd and other products to major markets of Andhra Pradesh which includes
Hyderabad, Vijayawada, Guntur, Rajahmundry, Kakinada, and Karim Nagar.
Skim Milk Powder, Butter and Butter oil produced at Gudur plant are supplied to
major Industrial and Institutional customers located across India and Overseas.
Our presence is across entire Tamil Nadu, Andhra Pradesh and Some parts of Karnataka.
CERTIFICATES AND AWARDS
In recognition of its efforts and achievements in the dairy foods industry, and in
acknowledgment of all the challenges surmounted, Tirumala Milk Products (P) Ltd. has
won many awards and certificates.
More enduring than any public recognition for our contributions is the satisfaction
we enjoy by creating a superior product and giving back to our communities.
Tirumala Milk Products (P) Ltd. is an ISO 9001:2000 and an ISO 22000: 2005
certified company. The dairy is following Quality Management System and Food Safety
Standards.
Apart from ISO certification, we have Certificate from SGS on SMP Analysis too.
Tirumala Milk Products (P) Ltd. has ISI Licence, AgmarkLicence and adheres to all other
statutory standards as per requirements.
29
FINANCIAL
Tirumala Milk Products (P) Ltd. has always reiterated that our added value
businesses would continue to demonstrate attractive growth. Our business strategy
continues to make encouraging progress and is a key driver of the operating profit.
The companie’s strategy will continue to focus on growing our brands and added
value businesses. The strength of our competitive position gives confidence that we will
deliver attractive earnings growth and provides the opportunity for a greater appreciation
in Tirumala Dairy's value.
Before November 2007, both Tirumala Dairy Pvt Ltd and Tirumala Milk Products
Pvt Ltd were separate entities. After that they became one single entity called Tirumala
Milk Products (P) Ltd.
The following are the Turnover Information for both the companies
Sales Total Rs. In Rupees
2013-14 627.29
2014-15 830.45
2015-16 1175.17
2016-17 1424.11
Tirumala Milk Products (P) Ltd. covers the entire spectrum of dairy products sold
in markets. The complete range of Tirumala Milk Products (P) Ltd. is highly nutritious,
healthy and bring you a world of goodness.
Tirumala Milk Products (P) Ltd. pasteurizes and packages all fresh dairy products
in technologically superior and hygienic conditions to ensure pure natural freshness.
Tirumala Milk Products (P) Ltd., Handles 6.5 Lakhs Liters of Milk per day in all
their packing Stations and main dairy plant which is the highest in the state of Andhra
Pradesh.
Tirumala Milk Products (P) Ltd. handles milk in the following locations:-
30
Pacing Locations Handling Capacity per day
Gudur 4.0 Lakh litres

Vellala Chervil 2.0 Lakh litres
Bhimadolu 1.0 Lakh litres
Palamaner 2.0 Lakh litres
Gungal 4.0 Lakh litres
(b) Procurement of Milk
Tirumala Milk Products (P) Ltd. established 25 Chilling centers in Andhra

Pradesh and 8 chilling centers in Tamil nadu to procure both Cow & Buffalo milk. Best
quality milk is procured and chill led at chilling centers, to retain freshness of milk. The
strength of the Tirumala Milk Products (P) Ltd. is to procure more than
6.0 lakh liters of milk directly from agents/farmers using state-of-the-art machinery and
professionally trained staff.
(c) Production
 Tirumala Milk Products (P) Ltd. has its main dairy plant at Kadivedu with
handling capacity of 4.0 lakhs lts of milk per day from various chilling centers and
local units. Main plant processes 3.0 Lakhs Lts of milk per day in automatic sachet
filling machines for supply and distribution to Chennai, Tirupati, Nellore, etc… in
insulated puffs. There is continuous growth in sale of milk from 50000 ltrs to 350000
ltr with in a span of one-decade. Tirumala Milk Products (P) Ltd. has its own supply
chain management, which is the key to timely distribution.
At our Palamaner unit processes and supplies 1.00 lakh liters of milk and 20000
liters of curd to Bangalore city. The
companie’sVellalacheruvu&Bhimadolu packing stations processes and supplies 2.0
lakh liters of milk to Hyderabad, Warangal, and Vijayawada. Elure, Guntur and
Rajahmundry. Our Wadiyaram plant has capacity of 50000 Liters milk to cater to the
markets of Medak, Nizambad, Adilabad and Karim Nagar Districts of A.P.
31
(d) Products
The Main Plant has modern equipments to manufacture milk products like
Butters, Ghee and Milk Powder. Butter is made from pure cow & buffalo fat under
hygienically processed through continues butter making machine with a capacity of 8
tones per day. Ghee is made from pure cow & buffalo butter under supervision of 30
years experienced dairy technologists to retain granulation, color and aroma of ghee
with a capacity of 8 tones per day.
 Milk powder is made from fresh cow & buffalo milk and the plant is capable of
producing all type of milk powders with a capacity of 15 tons per day. By- Products
like Sterilized Flavored Milk, Lassie, Khova, Milk Cake, Mysore palace, Pannier.
(e) Food Safety
Ensuring the safety of dairy foods is a responsibility of the dairy industry, dairy
farmers and dairy processors. Milk and other dairy products are among the safest and
most highly regulated foods in the world. The company established a rigorous and far-
reaching food safety program that ensures that the milk and dairy products you and your
family enjoy remain pure and wholesome. The company well maintained laboratories in
all plants. Technically qualified staff tests the milk and milk products. Quality assurance
programmers’ are implemented at every stage to ensure quality of milk and milk products.
32
Milk
Product: Tirumala FCM

Quantity: 500ml
Product: Toned Milk

Quantity: 500ml
Product: Tirumala Gold
Quantity: 1000ml
Milk products
Product: Tirumala Gold

Quantity: 500ml
Product: Flavoured Milk
Product: Toned Milk

Quantity: 200ml
Product: Ghee tins
33
Product: Sweets Product: Milk Powder
Product: Curd
Product: Basundi
Product: Butter Milk
Product: Butter
ICE CREAMS
Product: Ghee Pack
Product: Butter Scotch Cup
Product: Paneer
34
Product: Candy
Product: Mango Ball
Product: Chacobar
Product: Matka
Product: Chocolate Cup
Product: Nutty
Product: Cone
Product: Ripple Tubs
Product: DulexeCassatta
Product: Stick Kulfi
Product: Malai da Kulfi
35
Career
Tirumala Milk Products (P) Ltd. is one of the leading dairy in India. It is primarily known
for its quality products and outstanding variety. We are equipped with exceptional technology
and skilled manpower. Our success factor in the region is total customer satisfaction and
modernization.
Attractive workplace
At Tirumala Milk Products (P) Ltd. our employees are an important resource and we
want to be among the top-attractive workplaces. Our key tool is a close dialogue between our
owners, our management and our employees to ensure that both the company’s and our
employees’ requirements are covered in the best possible way.
High ambitions
It is no secret that we have high ambitions. Our objective is to be the leader at all dairy
product stages from product development, through production and sales. For that we need top-
motivated and engaged employees.
Excellent career opportunities
At Tirumala Milk Products (P) Ltd. we have created an environment with almost
unlimited career opportunities.
Responsible and committed employees
When recruiting employees we look for both personal as well as professional

qualifications. Our future colleagues must be able to identify themselves with our normal run of
the company and our development, and they must be committed to take responsibility for making
a difference. Equally important is their ability to communicate and cooperate crisscross
departments and frontiers. Therefore, Tirumala Milk Products
(P) Ltd.’ employees are characterized by their pursue of lifelong learning and development.
31
Tirumala Milk Products (P) Ltd. is one of the preferred companies to work with because we
believe in:
1. The power of Open Door Communication
2. Providing fair treatment
3. Giving Equal Opportunity to everyone
4. Providing diversity through nature of work and people
5. Opposing any form of harassment
6. Encouraging a performance driven enterprise
You are welcome to send us your resume by email in soft form. Remember to include
information about your education, marks obtained, nature of work experience, previous/current
employers, current & expected emoluments etc.
By providing a challenging work environment, we attract and retain the best talents. Great care is
taken to recruit the best people available.
Laboratory
Laboratory: Gudur
MILK PLANTSPlant: Gudur
Plant: Gudur
32
CHAPTER 3
THEORITICAL BACKGROUNDS
3.1 MEANING OF CASH FLOW

Cash flow from operating activities are earned from the principle revenue- producing
activity of an enterprise, through these activity let me know the net profit & loss of the business is
also be determined.
Ex:-
 Cash receipts from the sale of goods & render of services.
 Cash receipts from royalties, fees, commissions and other revenue.
 Cash payments to supplies for goods &services
 Cash receipts & cash payments of insurance enter price for premiums and claim annuities
and annuities and other policy banalities.
 Cash payments to and on benefit of employees.
 Cash payment or refund of income taxes unless then can be specifically in defied with
financing &investing activities.
33
Diagrammatic presentation of cash flow from operating activities:-
CASHFLOW
CASH IN CASH
OUTFLOW
CASH RECEIP RECEIPTS REE RECEIPTS

SALES TS FROM FUND FROM
FROM ROYALTYS TAX FUTURE
DEBTO FEE CONTRACTS
COMMISIO
CASH PAYMENT PAYMEN PAYMENTS PAYMENTS

PURCHAS S OF TS OF OF OF
E SALARYS TAX CONTRATS CREDITORS
34
3.2 NEED & IMPORTANCE OF CASH FLOW
Investing activities of an enterprise include the purchase of fixed assets with an intension
to generate the future incomes.
Cash payments of acquired fixed assets [including intangible } these payments include
those related to capitalize research and development costs and self constructed fixed assets:
 Cash receipts from disposal of fixed assets.
 Cash payment to acquired shares, warrants or debt instructor of other enterprises and
interests in joint venture.
 Cash receipts from the repayment of advances and loans made to third parties.
 Cash payments for future contrast, forward contrast, option constructs and swap
contracts.
 Cash receipts from future contracts, forward contracts, option contracts and swap
contracts.
CASH FLOWS
Cash flows Cash outflow
Disposal of Disposal of Receipts of Receipts

fixed assets Shares repayment of from future
&warentys advance & contracts
loans
Purchase of Advances
Purchase of Payment to
shares and and loans to
fixed assets future
warrentys customer
warrnetys
35
3.3 METHODS OF CASH FLOW
Under financial activities those activities are include which are related to the size and
composition of capital [equity] and barrowing or loans. Eg: Cash flow arising activities. Cash
proceeds from issuing shares or other similar instruments.
 Cash proceeds from issuing debentures, loans notes, bonds and other shares or loans form
borrowings
 Cash repayments of amounts borrowed
CASH FLOWS
Cash inflows Cash outflows
Issue of shares Issue of Raising of long

loan, bonds etc debenture term loans
Redumption of Repayment of Payment of Payment of

preference loans interest dividend and
shares bonds
36
3.4 OTHERS
PROFORMA OF CASH FLOW STATEMENT:
As – 3 (received) has not provided any specific formats for preparing a cash flow
statement. However an idea of the suggested format can be inferred from the illustrations
appearing in the appending to the accounting standard, the cash flows during the period
classified by operation and financing activities. A widely used formula of cash flow statement is
giver below.
Particulars Rs. Rs.
Cash flow from operating activities
Net profit before tax -----
Add: Adjustments for Non-operating items
Depreciation ----
Loss on Sales of fixed Assets ----
Goodwill Written off ----
Preliminary Expenses Written off ----
Underwriting expenses written off ----
Transfer to reserves ----
Loss on revaluation of fixed assets ----
Foreign exchange loss ----
Less adjustments for non-cash and non-operating
Income
Profit on sale of fixed assets ----
Profit on sale of investments ----
Profit on revaluation of fixed assets ----
Foreign exchanges gain ---- ----
Operating profit before working capital charges ----
Add decrease in current assets ----
Increase in current liabilities ---- ----
Less increase in current assets ----
37
Decrease in current liabilities ---- ----
Cash generated from operating ----
less tax paid ----
Cash flow before extra-ordinary items ----
Extraordinary items ----
Net cash from operational actives ----
----
2) Cash flows from investing activities
Purchases of fixed assets (----)
Purchases of investments (----)
Sale of fixed assets ----
Sale of investments ----
Interest received ----
Dividends received ----
Net cash from (used in) investing activities ----
(3) Cash flows from financing activities
Cash receipts from
Issue share (Equity or and preference) ----
Debenture and bonds ----
Long-term Loans or Borrowings ----
Repayment of preference Shares (----)
Repayment of debentures (----)
Repayment of Loan (----)
Interest and finance (----)
Dividend paid (----)
Net cash from (used in) financing activities ----
Net Interest (Decrease) in cash and Cash Equivalents Add: Cash ----
and Cash Equivalents at the beginning of Period
Cash and cash equivalents at the end of period ----
38
Note:- As per the amendment of Clause 32 of the listing Agreement of SEBI, 1995, all the listed
companies have to prepare their Cash Flow statement as per the above formats with their annual
financial statements in the reports. SEBI recommends the indirect method to prepare the cash
flow statement.
Cash equivalents are short-term, highly liquid investments that are readily convertible
into known amounts of cash and which are subject of an insignificant risk changes in value.
Cash flows are inflows are inflows of cash and cash equivalents. Operating activities are
the principal revenue-producing activities of the enterprise and other activities that are not
investing of financing activities.
Investing activities are the acquisition and disposal of long-term assets and other
investments not included in cash equivalents.
Financing activities are activities that result in changes in the size and composition of the
owner’s capital (including preference share capital in the case of a company) and borrowing of
the enterprise.
Note: A.S-3, A.S-17 and A.S-18 have been made mandatory in respect of following enterprises:
Enterprises whose equity or debt securities are listed on a recognized stock exchange of India,
and enterprises that are in the process of issuing equity or debt securities that will be listed on a
recognized stock exchange in India as evidenced by the board of director’s resolution in this
regard.
All other commercial, industrial and business reporting enterprises, whose turnover for the
accounting period exceeds 50/-crores.
39
Difference between cash flow and funds flow:
Following are the important points of difference between a cash flow analysis and funds
flow analysis:
1. A cash flow statement is concerned only with the changes in cash position while a funds flow
analysis is concerned with change in working capital position between two balance sheet dates.
Cash; is only one of the constituents of working capital besides several other constituents such as
inventories, accounts receivables, prepaid expenses.
2. A cash flow statement is merely a record of cash receipts and disbursements. Of course, it is
valuable in its own way but it fails to bring to light many important changes involving the
disposition of resources. While studying the short term solvency of a business one is interested
not only in cash balance but also in the assets which are easily convertible into cash.
3. Cash flow analysis is more useful to the management as a tool of financial analysis in short
period as compared to funds flow analysis. It has rightly been said that shorter the period covered
by the analysis, greater is the importance of cash flow analysis. For example, if it is to be found
out whether the business can meet its obligations maturing after 10 years from now, a good
estimate can be made about firm’s capacity to meet its long-term obligations if changes in
working capital position on account of operations ate observed.
However, if the firm’s capacity to meet a liability maturing after one month is to be seen,
the realistic approach would be to consider the projected change in the cash position rather than
an expected change in the working capital position.
4. Cash is part of working capital and, therefore an improvement in cash position results in
improvement in the funds position but the reverse is not true. In other words.“Inflow of cash”.
Thus, a sound funds position does not necessarily mean a sound cash position but a sound cash
position generally means a sound cash position but a sound cash position generally means a
sound funds position.
5. Another distinction between a cash flow analysis and a funds flow analysis can be made
of the basis of the technique of their preparation. An increase in a currently liability or decrease in
current asset results in decrease in working capital and vice versa. While
40
an increase in current liability of decrease in a current asset will result in increase in cash vice
versa.
Some people, ass stated earlier, use term funds in a very narrow sense of cash only. In
such event the two terms funds and cash will have synonymous meaning. Cash in the lubricant,
which keeps the wheels of any business enterprise running smoothly. It plays a vital role in the
day to day business enterprise running smoothly. It plays a vital role in the day to day activities
of which a business enterprise requires cash to make purchases, pay creditors, meet its operating
expenses, to acquire assets, and pay taxes, interest, dividends etc. In case an enterprise fails to
maintain adequate cash balance, it may have to close shop following the financial crunch. Hence,
the management should strategically plan the inflow and outflow of funds of the firm.
The concept cash flow is a vital importance to capital investment appraisal, since the real
cause of any investment project is the actual net
Cash flow affords a more stable basis of comparison in some situations than reported net
income. It is neither the same as net income nor a substitute for it. The expression, ‘cash flow’,
simply means net income before deduction etc., - nothing more, and nothing less. It is a term
which persists in financial analysis and is related to fund flow analysis; but only as part of the
whole.
In principle, the profit figure is intended to measure change in value, about imperfectly.
The operating cash flow figure measures funds which are generated by the firm’s operations and
which are available for the expenditure.
Perhaps the most important factor in which the financial analysis today are interested is
the free cash flow, which is as defined as an enterprise operating in profit after tax minus not
fixed capital additions minus depreciation plus incremental working capital. A cash flow
statements, therefore, is a statement designed to indicate changes in financial position of an
enterprise on cash basis. It summarizes the causes of changes in cash position of a business
enterprise between two balance sheet dates. It shows the movement of cash into and out of a
business by listing the sources of cash receipts and uses or disbursements of cash,
 Period and the difference being the “net cash flow”.
41
RESEARCH METHODOLOGY
3.5 NEED FOR THE STUDY
 The cash flow is the most powerful tool of the financial analysis.
 These people use cash flow statement of determine those cash inflows and cash outflow
of the firm in which they are interested with the help of cash flow statement.
42
3.6 OBJECTIVES OF THE STUDY
 To study the cash position of business

 To study the cash from operation activities
 To study the cash from investing activities
 To study the cash from financing activities
 To study the solvency of the business in the short term.
43
3.7 SCOPE OF THE STUDY
The company has to prepare a cash flow statement to let them known how the cash flow is
take place.
 Users of an enterprise’s financial statements are interested in how the enterprise generate
and uses cash and cash equivalents.
 They need cash to conduct their operations, to pay their obligations and to provide returns
to their investors.
 The study is confined to the company only as per their balance sheets and other data
sources given by the company.
 An enterprise should prepare a cash flow statement and should present it for each period
for financial statements are presented.
44
3.8 METHOD OF THE STUDY :
The study depends upon primary and secondary data from various sources. The data
collected related to the study was divided into two parts.
i. PRIMARY DATA.
ii.SECONDARY DATA.
PRIMARY DATA:
Firsthand information was collected from experts of finance department, on the basis of
which actual position of the company is identified.
SECONDARY DATA:
The secondary data is collected from the text books, annual reports, company websites
etc.
Sources of cash inflow:
Cash from operations: cash from operations is a major source of cash flow into the
business. The computation cash from operations is almost similar to computation of funds from
operations. There are two methods for calculating cash from operations: namely, cash sales
method and net profit method.
Under this method, cash from operations is ascertained as under:

 Cash from operations=cash sales-cash purchases and cash operating expenses.
 Generally, the income statement shows both cash and non-cash items.
 In order to ascertain cash sales, cash purchases, and cash operating expenses based on
income statement, the items of current assets and current liabilities given in the balance
sheet should also be taken into account along with items of income and expenditure
shown in the income statement. This method is also known as ‘income& expenditure’
method.
 Let us know how to ascertain cash sales, cash purchases and operating expenses and cash
from operations under this method.
45
3.9 LIMITATIONS OF THE STUDY
 The information used is primary from historical reports available to the public and the
same doesn’t indicate the current situation of the firm.
 The ratios are calculated from the past financial statement and these may the exact
indicators of future.
 Detailed analysis could not be carried for the project work because of the limited the span
of time.
46
CHAPTER 4
DATA ANALYSIS & INTERPRETATION
1. CASH FLOW STATEMENT AS ON 31ST MARCH 2015
(Indirect method) (Rs. In lakhs)
S.No. Description 2014-15

A Cash flow operating activities
Net profit/loss before tax & extraordinary items 857.00
Adjustment for:
Depreciation 261.90
Other income -18.70
Interest 235.80
Taxation 3.02
Operating profit before working capital changes 1333.43
Adjustment for:
Trade and other receivables 67.77
Inventories -311.64
Change in other current assets 22.65
Trade payables 268.80
Cash generated from operations 1381.01
Interest paid -235.80
Miscellaneous expenses written off ----
Net cash from operating activities 1145.20
B Cash flow from investing activities
Purchase of fixed assets -11.50
Sale of fixed assets 0.60
(purchase)/sale of investments 140.40
Other income 18.69
Net cash from investing activities 148.20
C Cash flow from financing activities
Repayment of long term borrowings -10.00
Repayment of working capital loans -1015.80

Increase / (decrease) in other borrowings -21.40
Net cash used in financing activities -1047.17
D Net increase in cash and cash equivalents 246.23
Opening balance of cash and cash equivalents 16.56
Closing balance of cash and cash equivalents 262.80
47
Interpretation:
From the above table cash flow from operating activities is Rs.1145.20 lakhs, cash flow
from investing activities is Rs.1047.17 lakhs, and net closing in cash and cash equivalents is
Rs.262.80 lakhs.

(Indirect method)(Rs. In lakhs)
Adjustment for:
Depreciation 267.94
Other income -3.36
Interest 701.30
Taxation -2.47
Adjustment for:
Trade and other receivables -81.74
Inventories -242.91
Change in other current assets -0.16
Sale of fixed assets ----
(purchase)/sale of investments -0.01
Other income 3.36
Net cash from investing activities -393.97
Repayment of working capital loans 8.48
Increase / (decrease) in other borrowings 3.57
Issue of preference shares 200.00

Net cash used in financing activities 6.14
D Net increase in cash and cash equivalents -116.31
48
Interpretation:
From the above table cash flow from operating activities is Rs.271.50 lakhs, cash flow
from investing activities is Rs.393.97 lakhs, and net closing in cash and cash equivalents is
Rs.146.48 lakhs

Net profit/loss before tax & extraordinary items -1672.25
Adjustment for:
Depreciation 280.22
Other income -13.26
Interest 359.40
Taxation -2.53
Operating profit before working capital changes -1048.45
Adjustment for:
Inventories 1102.22
Change in other current assets 0.40
Sale of fixed assets 0.10
(purchase)/sale of investments ---
Other income 13.26
Net cash from investing activities -15.52
Repayment of working capital loans ---
Net cash used in financing activities -587.63

49
Interpretation:
From the above table cash flow from operating activities is Rs.520.94 lakh, cash flow
from investing activities is Rs.15.52 lakh, cash flow from financing activities is Rs.587.63 lakh,
and net closing in cash and cash equivalents is Rs.64.27 lakh.


Adjustment for:
Depreciation 277.86
Other income -393.91
Interest 304.32
Taxation -5.93
Adjustment for:
Inventories -1150.64
Change in other current assets -0.10
Trade payables -271.35
Cash generated from operations -171.42
Miscellaneous expenses written off -21.00
Net cash from operating activities -496.86
Sale of fixed assets ---
(purchase)/sale of investments ---
Other income 93.91
Net cash from investing activities 82.85
Repayment of working capital loans 2000.00
Net cash used in financing activities 413.31

50
Interpretation:
From the above table cash flow from operating activities is Rs.496.86 lakh, cash flow
from investing activities is Rs.82.85 lakh, cash flow from financing activities is Rs.413.31 lakh,
and net closing in cash and cash equivalents is Rs.63.57 lakh.
4.1 NET CASH FLOW FROM OPERATING
ACTIVITIES TABLE – 4.1
Net cash flow from 2014- 2015-16 2016-17 2017-18

operating activities 2015
Values 1145.21 271.52 520.94 -496.86
GRAPH-4.1
1400
1200
1000
800
600 Values
400
200
0
-200 2013-14 2014-15 2015-16 2016-17
-400
-600
INTERPRETATION:
From the above graph the net cash low from operating activities are in
decreasing trend.
51
4.2 NET CASH FLOW FROM FINANCING
Net cash flow from 2014-15 2015-16 2016-17 2017-18

Financing activities
Values -1047.20 6.14 -587.63 413.31
GRAPH – 4.2
Values
600
400
200
0
-200 2013-14 2014-15 2015-16 2016-17
Values
-400
-600
-800
-1000
-1200
INTERPRETATION:
From the above graph the net cash flow from financing activities are in
increasing trend.
52
4.3 NET INCREASE IN CASH AND CASH
EQUIVALENTS TABLE – 4.3
Net increase in cash and 2013-14 2014-15 2015-16 2016-17

cash equivalents
Values 262.80 146.48 64.27 63.57
GRAPH – 4.3
Values
300
250
200
150
Values
100
50
0
2013-14 2014-15 2015-16 2016-17
INTERPRETATION:
From the above graph the net increase / decrease cash flow from activities are in decreasing trend.
53
4.4 NET CASH FLOW FROM INVESTING
Net Cash Flow from 2013-14 2014-15 2015-16 2016-17

Investing Activities
Values 148.20 -393.97 -15.52 82.85
GRAPH-4.4
200
100
0
2013-14 2014-15 2015-16 2016-17
-100 Values
-200 Investing Activities
-300
-400
-500
INTERPRETATION:
From the above graph the net cash flow from investing activities are in
decreasing trend.
54
4.5 CASH FLOW
STATEMENT TABLE – 4.5
years Investment TOTAL
years OA FA IA TOTAL
2013-14 1145.20 -1047.20 148.20 246.2
2014-15 271.52 6.14 -393.97 -116.31
2015-16 520.94 -587.63 -15.52 -82.21
2016-17 -496.86 413.31 82.85 -0.7
GRAPH-4.5
TOTAL
TOTAL
IA 2016-17
2015-16
Investment
2014-15
FA
2013-14
OA
-1500 -1000 -500 0 500 1000 1500
55
CHAPTER-5
5.1 FINDINGS
 In 2013-14 the net increase in cash was Rs.246.23 lakhs, the opening cash balance was
Rs.1656 lakhs and closing cash balance was Rs.262.79 lakhs. In this year the main source
of cash Rs.1145.21 lakhs was from operating activities.
 In 2014-15 the net decrease in cash was Rs.116.31 lakhs, the opening cash balance was
Rs.262.79 lakhs, and closing cash balance was Rs.146.48 lakhs. In this year the
application of cash was for operating activities.
 In 2015-16 the net decrease in cash was approximate Rs.1 lakhs, the opening cash
balance was Rs.146.48 lakhs and the closing cash balance was Rs.64.27 lakhs. In this
year the application of cash was for operating acuities.
 In 2016-17 the net decrease in cash was approximate Rs. 1 lakhs, the opening cash
balance was Rs.63.27 and the closing balance was Rxs.64.27 lakhs. In this year the
application of cash was for financing activities.
56
5.2 SUGGESTIONS
 The Tirumala Milk Products Pvt Ltd. should invest on the quick earning assets and
investment.
 Instead of allocating all profits as repayment of secured loans & payment of dividends
some portion should be retained to improve cash position for financing activities.
57
5.3 CONCLUSION
It can be concluded that the company overall operating activities are satisfactory when
compared to investing and financing activities. The overall financial position of company is not
satisfactory and needs to be improved further in the future.
58
BIBLOGRAPHY
S.No Name of the Name of the Publication,
Author Book Edition & Year
1 Vikas publishing
“Financial
I.M.pandey house PVT LTD
management”
New Delhi-
110014, 2003.
2 ”-Tata
Prasanna Chandra “Financial MCGrawhill-
management ltd” hill publications
company New
Delhi, 2002
3 R.K.Sharma and “Management Kalyani publishers
ShashiK.Gupta accounting” NewDelhi-2003.
WEB SITES
www.mSoneycontrol.com
www.Tirumala foods india.com
59
ANNEXURES
TIRUMALAMILK PRODUCTS PVT LTD.,
TRADING AND PROFIT&LOSS A/C FOR THE YEAR ENDED 31st-03-2014
Particulars Amount Particulars Amount
To Opening stock 1061067 By Sale of milk 3436700

To Purchase of milk 1382998 By Sale of milk products 3143280
products 857491 By Closing stock 2849860
To Transport charges 472920
To Packing material 769820
To Processing and 628297
conversion 4257247
To Shares consumed
To Gross profit By Gross profit
9429840 9429840
By Other incomes
To Salaries & wages 226950 4257247
To Depreciation 192321 1989573
258929
TO Interest on loan
236281
To Insurance charges
183699
To Travelling and
148329
conveyance
448496
To Advertisement
238294
To Milk payments
4313521
To Selling and distribution
To Net profit
6246820 6246820
60
TIRUMALA MILK PRODUCTS PVT LTD.,
BALANCE SHEET AS AT 31st MARCH 2014
Particulars 31.03.2013 31.03.2014

sources of Funds:
1.shareholder funds:
equity share capital 3138642 5892421
share advance 1794637 4113048
Add: profit & loss A/c
4313521 000000
9245800 10005469
2. Loan funds:
000000 282720
secured loans 184552 194242
unsecured loans 94930352 10482431
TOTAL:
application of funds:
3. fixed assets
16431124 4559280
gross block
Add: additions during the year 11783959 2545171
Less: accumulated dep. 19397869 102490
Net Block 8817214 7001961
4.current assets:
Cash and bank balance 5801648 5512130
Sundry debtors 4512121 4801648
Short term loans & advances to employees 1091318 1091340
Less: current liabilities:
Loans & borrowings
Employees stat liabilities 4575212 4357212
Other current liabilities 4322122 4522122
Net current assets 1894615 1894615
5.miscellaneous 613138 631169
expenditure:
profit & loss A/c
000000 2849301
TOTAL 94930352 10482431
61
TRADING AND PROFIT&LOSS A/C FOR THE YEAR ENDED 31st-03-2015
To Opening stock 2849860 By Sale of milk of milk 8298290

To Purchase of milk products 2729210 By Sale of milk products 5478250
To Transport charges 1229211 By Closing stock 2713280
To Processing and conversion 1098256
To Shares consumed
957893
To Gross profit 6896890
16489820 16489820
To Salaries & wages 1595820 By Gross profit 6896890
To Depreciation 629621 By Other incomes 1680008
TO Interest on loan 789987
To Other expenses 598920
To Insurance charges 942875
To Travelling and conveyance 791357
To Advertisement 5298285
To Milk payments 1598285
To Selling and distribution 875992
To Net profit 2246039
8576898 8576898
62
Particulars 31.03.2014 31.03.2015
sources of Funds:
equity share capital share 3620300 3138642
advance 2879461 1794637
Add: profit & loss A/c 2246039 4313521
8745800 9245800
2. Loan funds:
TOTAL 8837584 9430352
3. fixed assets
gross block 6460087 16431124
Add: additions during the year Less: 2472088 11783959
accumulated dep. 2011342 19397869
Net Block 6920833 8817214
4. current assets:
Less:current liabilities:
Loans & borrowings Employees 5421984 4575212
state liabilities 3654655 4322122
Other non stat liabilities 2929042 1894615
Net carrentassetes 1916751 613138

5.miscellaneous expenditure:
profit & loss A/c 00000 00000
TOTAL 8837584 9430352
63
TRADING AND PROFIT&LOSS A/C FOR THE YEAR ENDED 31-12-2016

To Processing and conversion
175184
To Shares consumed 325876
9582300 9582300
7256790 7256790
64
Particulars 31.03.2015 31.03.2016
sources of Funds:
1. shareholder funds:
3529120 3620300
equity share capital
4772900 2879461
share advance
8745800 8745800
2. Loan funds: 00000 00000
TOTAL:
application of funds: 18565780 6460087
3. fixed assets
gross block 7394564 2472088
Less: accumulated dep.
4837316 6920833
Net Block
4.current assets:
9001221 8542212
Cash and bank balance
7246521 4432211
Sundry debtors
1926193 948009
Short term loans & advances to employees

5243554 5421984
Loans & borrowings Employees
4724215 3654655
stat liabilities Other current
4197963 2929042
liabilities
4008203 1916751
Net current assets
5.miscellaneous
expenditure:
00000 00000
profit & loss A/c
8845519 8837584
TOTAL
65
TRADING AND PROFIT&LOSS A/C FOR THE YEAR ENDED 31-12-2017

8239440 8239440
6874500 6874500
TIRUMALA MILKPRODUCTS PVT LTD.,
66
Particulars 31.03.2016 31.03.2017
sources of Funds:
2.Loan funds: 9020302 8745800
TOTAL: 19921649 8845519
3.fixed assets
gross block 18565780
22140183 4837316
Net Block
4.current assets: 6430275
Cash and bank balance 9001221

Less: current liabilities: 3896353
Loans & borrowings

Other non-stat liability 2383017 4724215

1665792 4197963
Net current assets
5.miscellaneous 13491374 4008203
expenditure:
profit & loss A/c
0000 0000
19921649
TOTAL
8845519
67
TRADING AND PROFIT&LOSS A/C FOR THE YEAR ENDING 31-03-2018
4928280
8698724 8698724
To Selling and Distribution 442820
To other Expenses 490704
7458450 7458450
68
Particulars 31.03.2017 31.03.2018
sources of Funds:
1. shareholder funds:
2. Loan funds: 11931612 9020302
TOTAL: 21275690 19921649
3. fixed assets
gross block 46245621 25516561
Net Block 20098873 6430275
4. current assets:
Loans & borrowings 124980 3100242
Other non-stat liability 58429 1665792
Net current assets 1176817 13491374
5.miscellaneous
expenditure:
profit & loss A/c 000000 000000
TOTAL 21275690 19921649
69
S
70

1NH18MBA13

Uploaded by

Copyright:

Available Formats

1NH18MBA13

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

1NH18MBA13

Uploaded by

Copyright:

Available Formats

PROJECT REPORT

MASTER OF BUSINESS ADMINISTRATION

This is to certify that BARSHAT KUMAR DV bearing USN

Signature of Internal Guide Signature of HOD Principal

Name of the Examiners with affiliation Signature with date

SL. NUMBER CONTENTS PAGE NUMBERS

2 Theoretical Background Of The Study 6-12

3 Industry Profile &Company Profile 13-32

4 Application Of Theoretical Framework 33-46

Preparation of cash flow statement:

Types of cash flow

Actual inflow of cash

Actual out flow of cash

National cash flow:

National inflow of cash:

National out flow of cash:

Net profit method

3. Outstanding or accrued income:

5. Proceeds from sale of fixed assets:

6. Issue of shares or debentures:

Out flow of cash Purchase

Redemption of preference share of debentures:

Sources and uses of cash:

The uses of cash are:

Changes in current assets:

Increase or decrease in inventory is adjusted to the cost of goods sold. Increase in

Changes in current liabilities:

Increases in current liabilities increases in cash flow from operation while

Rancher draining a dairy animals by hand.

MARKET MILK INDUSTRY IN INDIA AND ABROAD

1. Handling of milk in Co-employable Milk Unions built up everywhere

2. Long separation refrigerated rail-transport or milk from Anand to Bombay since

3. Pasteurization and packaging of milk on an enormous scale for composed

Development AND DEVELOPMENT OF THE INDUSTRY

ANAND PATTERN DAIRY DEVELOPMENT

KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION

DAIRY INDUSTRY IN ANDHRA PRDESH

Company Brands Major Products

Nestle India Limited Milkmaid, Ceralac, Sweetened condensed milk,

Indoan Industries Indana Condensed milk, skimmed

Gujarat Co- Amul Butter, cheese and other milk

H.J.Heinz Limited Farex, Infant milk food& malted Milk

Britannia Milk Man Flavored milk, cheese, milk

Cadbury Bournvita Malted food

CHANGING PATTERN OF THE INDUSTRY

STRATEGIES TO BOOST INDIAN DAIRY PRODUCTS GLOBALLY

2.2 COMPANY PROFILE:

Tirumala Milk Products Private Limited is an expertly overseen organization

1. Milk Procurement Network

The company has the advantage of :

Procurement of Quality Buffalo and Cow milk through a strong network of

He is the Managing Director of Tirumala Milk Products Pvt. Ltd., headquartered

D.Brahmanandam, Joint Managing Director,

Mr. B. NageswaraRao Director hails from Narasaraopet area of Guntur Dist,

E.N.Rao, Executive Director,

A graduate in Veterinary Sciences from College of Veterinary Sciences, Tirupati,

Mr. Raja Gopal.VV M.Com. (ICWAI)

Having 12 years of experience in core accounting. Asst. General Manager

Having vast experience in production and operation. General Manager – Plant

MrSubbaiah is having 17 years of experience in the food and dairy business.