Project Report

An Analysis Concerning the Handling of Working Capital at Mysore

District Cooperative Milk Producers' Societies Limited

A Project Report submitted to the University of Mysore

in partial fulfilment of the requirements for the award of the

Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

Nanda Khadri M J

(Reg. No. MBF22024)

Directorate of
Outreach and Online
Programmes
University of Mysore
September - 2023

1
 DECLARATION

I, Nanda Khadri M J, hereby declare that the Summer Training

Report, entitled “An Analysis Concerning the Handling of Working
Capital at Mysore District Cooperative Milk Producers' Societies
Limited”, submitted to the University of Mysore in partial
fulfilment of the requirements for the award of the Degree of
Master of Business Administration is a record of original training
undergone by me during the period May 2023- September 2023, to
the Directorate of Outreach and Online Programmes, University of
Mysore and it has not formed the basis for the award of any
Degree/Fellowship or other similar title to any candidate of any
University.

Place: Mysuru

Date: Signature of the Student

2
 ACKNOWLEDGEMENT

I wish to take this opportunity to express my sincere expression of

gratitude to each and every one who helped in the completion of this
project.

I am very glad to express my gratitude to, Directorate of Outreach and

Online Programmes, University of Mysore, for giving me an
opportunity to do this project as a partial requirement for awarding
the degree.

With immense pleasure, I ensure my deep sense of gratitude

especially to Mysore District Co-operative Milk Producers’ Union
Limited to make this project to a great success.

I thank all others who have been source of support, strength, inspiration
and encouragement for whatever I am today.

Place: Mysuru Nanda Khadri M J

Date MBF22024

3
 Page no’s.
SI. No Contents

CHAPTER-1 INTRODUCTION

9-10
1.1 Introduction

10-11
1.2 Industry Profile

12-13
1.3 Company Profile

13-15
1.4 Promoters, Vision, Mission and Quality Policy

15-17
1.5 Product profile Area of Operation

18-19
1.6 Competitor’s Information

20-22
1.7 Swot Analysis of MYMUL

22
1.8 Infrastructure Facilities

22-23
1.9 Future Growth and Prospects

23
1.10 Areas of Operation

24-25
1.11 FINANCIAL STATEMENT

CONCEPTUAL BACKGROUND AND

CHAPTER-2
LITERATURE REVIEW
27-37
2.1 Theoretical Background of the Study

38-43
2.2 Literature Review with Research Gap

CHAPTER-3 DETAILED STUDY OF THE DEPARTMENT

4
 45-47
3.1 Procurement and Input Department

47-50
3.2 Purchase and Stores Department

50-56
3.3 Production Department

56-59
3.4 Quality Control Department

59-62
3.5 Marketing department

63-65
3.6 Finance Department

66-70
3.7 Human Resource Department

71-72
3.8 Management Information System (MIS)
Department
CHAPTER -4
RESEARCH DESIGN

74
4.1 Statement of the Problem

74
4.2 Need for the Study

74
4.3 Objective of the Study

75
4.4 Scope of the Study

75-76
4.5 Research Methodology

76-77
4.6 Hypothesis

77
4.7 Limitations of the Study

77-78
4.8 Chapter Scheme

80-97
CHAPTER-5 DATA ANALYSIS AND INTREPRETATION

5
 FINDINGS, SUGGESTIONS AND
CHAPTER-6
CONCLUSION
99-100
6.1 Findings

101-102
6.2 Suggestions

103
6.3 Conclusion

104-105
BIBLIOGRAPHY

106-107
ANNEXURES

6
LIST OF TABLES

TABLE NO PARTICULARS PAGE

NO’S.

5.1 Table showing the details of current ratio 81

5.2 Table showing the details Inventory turnover ratio 82

5.3 Table showing Stock holding duration 83

5.4 Table showing Debtors turnover ratio 84

5.5 Table showing Debtors collection period 85

5.6 Table showing Creditors turnover ratio 86

5.7 Table showing Creditors collection period 87

5.8 Table showing working capital turnover ratio 88

5.9 Table Showing operating cycle 89

5.10 Table showing Cash cycle 90

7
LIST OF FIGURES/ CHARTS/ GRAPHS

GRAPH NO PARTICULARS PAGE

NO’S

5.1 Graph showing current ratio 81

5.2 Graph showing Inventory turnover ratio 82

5.3 Graph showing Inventory holding period 83

5.4 Graph showing Debtors turnover ratio 84

5.5 Graph showing Debtors collection period 85

5.6 Graph showing Creditors turnover ratio 86

5.7 Graph showing Creditors collection period 87

5.8 Graph showing working capital turnover ratio 88

5.9 Graph showing operating cycle 89

5.10 Graph showing Cash cycle 90

8
 Chapter -1

INTRODUCTION ABOUT ORGANIZATION AND

INDUSTRY

9
1.1 INTRODUCTION
Dairy industry in India
The in-depth examination of MYMUL's assessment of working-capital
evaluates its requirements for working capital sources of funding (both short-
term and long-term). Uses ratios to conclude the levels of working Capital. This
analysis provides information, about the condition of the corporation helping to
make informed choices regarding daily cash management, strategic planning,
and future investments and growth.
MYMUL operates in the highly competitive milk manufacturing industry,
which plays the Karnataka dairy sector. As a player, in the industry, it poses
competition, for its competitors. Also, has established a strong foot in the minds
of people along with actively contributing to the growth and development of the
sector, It is vibrant for stakeholders such, as investors, management, employees,
and customers to comprehend the company’s position and the quantity of
funding required for working Capital. This consideration helps ensure that the
corporation can efficiently meet its short-term obligations maintain profitability
and achieve stability.
The individuals belonging to the society have played a role in the triumph of the
Company propelling its growth and expansion throughout the years. They have
showcased their dedication towards achieving excellence. Position the
organization as a reputable brand, in the market. The central focus of our vision
is centred around delivering high-quality milk to end consumers while fostering
unity among workers all to enhance well-being, through improved services.

The financial performance analysis will encompass a detailed examination of

MYMUL dairy products and services profile, providing an over view of the
variety of milk product that are manufactured by the company. It also explores
distribution channels. Additionally, the analysis will evaluate the company’s

10
infrastructure facilities, including production capabilities, research and
development centres.

In direction to fully comprehend MYMUL's financial performance. Analysing

the market and determining the company's strengths, weaknesses, opportunities,
and dangers are crucial. This will also clarify competitive advantage and point
up areas for development.

The financial performance of MYMUL seeks to offer insightful information

about the firm's financial situation, competitiveness, and growth prospects. It
will be an essential tool for stakeholders, empowering them to decide wisely
and determine MYMUL's future course of action.

1.2 INDUSTRY PROFILE

In India, imported dairy products like butter, cheese, whey, and yogurt are now
subject to taxes, along with processed milk powder. India is engaged in
negotiations over the reduction of import taxes on dairy goods.

The context of the regional comprehensive economic partnership. Skimmed

milk powder imports into India without any import taxes was proposed by the
industry in 2020, but Indian dairy producers protested and opposed it because it
would hurt native milk production. India is a country steeped in history and
culture, where cows considered being sacred; therefore, importing more or less
dairy products there requires proof that the animals involved were not fed feed
containing extracts of ruminants.

Due to this, Most of American dairy products Imports are not allowed into
India. For a total of 2928.79 cores, India exported 108711.27 metric tonnes of
dairy goods in 2021–2022. Milk products are hard to find.

United Arab Emirates, Bhutan, Turkey, Egypt, and Netherlands were among its
top export markets. India's exports of are hampered by high levels of domestic
consumption and uncompetitive worldwide prices.

11
The dairy sector in Karnataka

In June 1974, an integrated effort to restructure and harmonise the dairy

commercial based on cooperative principles were initiated in Karnataka. Laid
the groundwork in 1975 for additional World Bank-funded dairy development
programmes. The dairy development organisation was established to carry out
the initiative, which initially involved eight southern Karnataka districts. Under
operation Flood-II, the dairy development operations were continued, and the
multi-level activities were expanded to include the entire state, with the
exception of the coastal Taluks of the Uttar Karnataka district. The middle level
institution known as Milk Union was founded and given responsibility for the
enlargement of the dairy sector. KMF's establishment in 1984 marked the
continuation of the dairy industry's second phase of growth.

Following the termination of operation Flood-II dairy development efforts,

Flood-II, which employed 700 professionals, took over as the successor to
KDDC in May 1984. Although the NDDB is a registered society, the IDC is a
Government of India Company. Along with assistance for Operation Flood's
implementation, NDDB supports projects with applied research and
development.

Four milk unions were established in Karnataka on June 4th, 1975 in Bangalore,
Mysore, Tumkur, and Hassan. Karnataka Dairy Development Corporation
(KDDC) was renamed as Karnataka Milk Federation (KMF), and the Mysore
Corporative Milk Producers Societies Union Ltd became the "Mysore -
Chamarajanagar District Coop Milk Producers Societies Union Ltd."

Dairy developments in Mysore:

On June 1st, 1987, the Mysore milk union acquired the Mysore dairy, which has
an installed capacity of 60 TLPS. It was increased to 100 TLPS. It was further
built up to 100TLPDS and extended to 300TLPDS during Operation Flood. In
April 2015, following 300 TLPDS, The Mysore - Chamarajanagar district milk
union was divided into the Mysore milk union and the Chamarajanagar milk

12
union. The new mega dairy at Alanahally Mysore has an installed capacity of 6
to 8 LLPD.

1.3 ORGANIZATION PROFILE

Background of organization

The first of the dairy cooperatives that make up KMF was founded in Kudige,
Kodagu District, in 1955. KMF was founded in 1974 as the Karnataka Dairy
Development Corporation (KDDC) to execute a dairy development project that
was controlled by the World Bank. KMF became the organization's new name
in 1984. With 1500 members, KMF, 14 milk unions around the state of
Karnataka purchase milk from Primary Dairy Cooperative Societies (DCS) and
distribute it to customers in a variety of urban and rural markets.

Location

Alana ally Layout, Alanahally village, Mysore, Karnataka 570028.

The Karnataka government has made action to boost farmers' income levels and
standards of living by getting them involved in dairy development activities.

Nature of business

Mysore Milk Union Limited – MYMUL is a manufacturing unit .As of now

they produce 14 products.

1. Toned Milk
2. Homogenized Milk
3. Homogenized Cow Milk -500ml
4. Shubam Milk
5. Nandini Special Milk
6. Curd
7. Lassi
8. Peda
9. Mysore Pak
10. Cashew Burfi

13
 11. Ghee Packet
12. Ghee Pet Jar
13. Khova
14. Paneer
15. Godhi Laddu and many products will be available in the upcoming days
depending on the requirements by customers and the availability of raw
materials.

1.4 VISION, MISSION AND QUALITY POLICY

 Organisational vision
The vision of MYMUL is to offer consumers high-quality milk at
affordable prices. "To establish worker unity in order to better serve milk
consumers, to contribute to the social and economic development of the
nation, and to gain trust in a top-tier market."

 Mission
MYMUL is dedicated to the socio-economic advancement of its
members' milk, which is produced by utilising cutting-edge technology
to turn a dairy into a successful enterprise by dictating workmanship to
offer the best services to members and consumers, thereby achieving
best position in the nation.

 Values

1. HONESTY
2. DISCIPLINE /TIMELINESS
3. QUALITY
4. TRUST
5. IMPARTIAL
6. SAVINGS
7. TRANSPERENCY

14
 Quality policy
This dedication results in continuous progress and is backed by concrete
targets. The Mysore-District Milk Union is committed to collecting and
offering consumers high-quality milk in addition its foods through.
 Adhering to statutory and regulatory obligations
 Adopting GHP, GMP, and HACCP,
 Constant contact with all stakeholders engaged in the food chain.
 Utilizing cutting-edge and scientific processing techniques
 Educating staff unions and dairy co-operative societies;
 Implementing and documenting ISO 22000: and holding a
FASSI certification.

15
The National dairy development board NDDB has taken the effort to implement
quality control, The national authority on dairy development on dairy
development. It is intended to safeguard customers’ interests when it comes to
purchasing safe and sanitary milk.

1.5 PRODUCT /SERVICE PROFILE

1. Nandini special milk

3.1% of it is fat, and 8.5% is SNF. It provides a bigger cup of coffee or tea
and is simple to digest .it comes in 1000ML, 500ML, and 250ML sizes. One
of the main products of MYMUL is milk, which is processed into various
categories based on how much fat it has.

2. Toned milk
Indians are most familiar with Nandini Toned Milk. The 1000ML sachets
made by MYMUL include 3.1%fat and 8.5 percent SNF.As a result, milk is
the finest option for all purposes.

3. Nandini homogenized toned milk

Cow milk is completely healthy and delicious. Low in calories, low in fat,
low in calories and homogenised standard protein content. If kept in the
refrigerator, it stays fresh for extra two days after opening. Simple to carry
and use. without preservatives or chemicals added.500ML packets of this
product are offered.

4. Shubham pasteurized standard milk

It contains 4.7 grams of sugar (lactose). Protein 3. 3gm.Total fat 4.6 gm,
Mineral 0.7 gm ,8.5 SNF. Available in form of 500ml. contains all the
welfares of nutritious milk for children's healthy growth.

5. Nandini curd
Pure pasteurised milk is castoff to make the thick and tasty curd. It’s giving
the glory of homemade curd available in pouches of 200g, 500g, and 1kg.

6. Sweet lassi

16
 Milk that has been flavor-infused and sterilised is a nourishing beverage that
is nutrient-rich and healthy. It comes in a range of tastes. Lassi can be stored
for up to eight days in a refrigerator and for one day without one.

7. Nandini yoghurt
The Nandini Fruit Flavoured Yoghurt is made from pasteurised milk and
contains natural fruit pulp and mashed. Yogurt's two wonderful real fruits
will tantalise and delight your taste senses with each serving. There are 100g
cups of mango and strawberry available.

8. Nandini butter unsalted

Nandini Pasteurised Unsalted Butter is made from pasteurised cream. Butter
is delicious and has a velvety texture and rich flavour. enough flavour for
multiple ways to enjoy it.200g and 500g packs are offered.

9. Mysore Pak
The most delectable confection from Karnataka is created from milk, sugar,
dal powder, and ghee. For 20 days, it can be kept at room temperature. It
comes in 25grm, 100grm, and 250grm sizes.

10. Peda
This is composed of milk and sugar at a ratio of 80:6.It has an eight-day
shelf life. 50grms are available in packs of 10 pieces each.

Table showing dealer price and MRP

Sl.no Product name Dealer price MRP(Rs)

1. Toned milk 1000ML 35.15 37.00

2. Homogenized milk 500ML 18.05 19.00

3. Homogenized cow milk 500ML 19.95 21.00

17
 4. Shubham milk 500ML 20.90 22.00

5. Nandini special milk 1000ML 40.00 43.00

6. Curd 200gms 9.66 10.50

7. Lassi 200gms 9.45 10.50

8. Peda 250gms 125 140

9. Mysore Pak 250grms 142.08 160

10. Ghee 1000ML 554.55 610

11. Khova 1kg 312.50 350

12. Paneer 1kg 318.97 370

13. Godi laddu 250grms 98.2150 110

OWNERSHIP PATTERN
MYMUL is a co-operative institution, “FARMER” are real owner as well
as the shareholders of the co-operative union. Farmers are entitled to receive
the divided in form of rise in the price of milk through co-operative unions.
Pattern of co-operative sector in milk industry
 Primary union
 District union
 State federation.

ACHIEVEMENT /AWARDS
1. ISO CERTIFICATED 19001-2008
2. 1ST price from state energy conservation board.
3. Mysore milk union awarded National Energy award by union minister
for power Mr. SUSHIL KUMAR SHINDE ON NATIONAL
CONSERAVATION DAY IN new Delhi on DEC16.2011

18
1.6 COMPETITOR’S INFORMATION

India has a thriving sector for diaries. At initially, the Nandini brand had a
monopoly on the market. Thus, there was no competition. However, loose
milk sales existed before the industry even got off the ground. In my opinion,
Karnataka’s competitor have been expanding for decades.
The major competitors are:
 Jersey
 Dodla
 Arogya
 Fresh Milk
 Loose vendors
 Gomatha
 Trimala

Dodla
 Plant located at Nellore.
 Cheaper raw material are readily available.
 Sales in the union purview 18TLPD (30TLPD in the city).
 The commission is between 80 and 95 rupees.
 Quality impression, lengthy life and thickness.
 Flexible distribution allows for merchants or any seller.
 Refund will be granted. Payment can be made in cash or by collecting
empty containers on the way back.
 Affiliates of the channel are essential to increasing sales.
 The package is appealing, with sachets featuring multicoloured pricing.
 The general public trusts that milk is suitable for forming curds.

Arogya
 Plant located at Bangalore
 Sale in union jurisdiction 10tlpd.
 MRP rates rs.20per litre.
 Commission range from 60paisa per litre.
19
  Availability-mostly retail outlets like bakeries, condiments and
departmental stores.
 Packing is attractive with multi-colour pricing on sachets.
 Concentrating on value added products and not much on milk.

INDUSTRY GROWTH AND CURRENT STATUS

The Indian dairy business is moving quickly and favourably into the new
century. India has emerged as the top milk producer in the world with an
annual milk production of 76 million tonnes after experiencing an exceptional
surge in milk production of more than two and a half times in the two decades
to roughly 58.8 million tonnes in 1992. The fifth-largest industry in the nation
is the food processing sector. With barely 7% growth annually, 85% of the
business in the milk and milk product industry is in the unrecognised sector.

The creation of a cooperative organisation as a fast and consistent buyer of

milk supplied gave the rural economy a new direction. Currently, an estimated
12–15% of all milk produced is handled by about 275 dairy plants and 85 milk
product companies in the cooperative, public, and private sectors. Over 90%
of the milk is transported to dairies in the majority of the world's nations.

In India right now, the trends are also evolving quickly. It is anticipated that
organised milk processing would significantly rise in industrialised nations. As
a result, there will be more potential for value addition. During the same time
period, the production of dairy products in the nation's food sector climbed by
5-7%. The era of imported milk shortages is now a thing of the past. The
chance to access the market for value-added dairy products including butter,
cheese, lactose, khova, and paneer might be seized by the organised sector.It
goes without saying that the organised dairy industry has done a great job of
transitioning from a dependent on export business to a self-sufficient industry
and starting to export a variety of products. And now it is prepared for a new
wave of growth by starting a large-scale milk production in the organised
sector.

20
1.7 SWOT- ANALYSIS OF THE COMPANY

1. Strengths
 2.14 lakh milk producer in Mysore district.
 1090 societies will collect the milk from the 95000 families
under MYMUL.
 Wide area coverage is possible only through the different
vehicles available for the hoard for products to spread the
customer.
 Employees are given a warm and welcoming work atmosphere to
help them stay calm and comfortable while achieving maximum
productivity.
 Customers are given reasonable prices because of serving people,
Not the profit motive is the major goal.
 It has a completely automatic system in place to guarantee total
quality upkeep.
 The ISO 22000-2005 certified
 The reputation it has built by offering exceptional facilities and by
running insurance and health –related programmes.
 Time management in MYMUL is noteworthy since milk and milk
products are delicate by nature and time is very important.

2. Weaknesses
 Political meddling is particularly prevalent in MYMUL during the
election of the organization’s directors and the appointment of the
president.
 As a perishable item, it cannot be kept for a prolonged period.
 Time –consuming: Paper foam is required for solely of the activities.
 Software Samrudhi is not entirely updated, which forces staff to
continue using the outdated version relatively than the new one.

21
  The organization is faced with a sizable problem of waste
management.

3. Opportunity
 They have plenty of opportunities in uncharted territory by
growing their market in northern India and by building brand
equity.
 Getting the customer’s attention with creative packaging and
presentation.
 Utilising grants funds. Developing its brand by capturing the
new-born food and nutrition industry.
 The rising demand for products related to milk and milk.
 By launching the milk powder plant to custom the extra milk that
was purchased,
 By making additional franchise available on the marketplace.
 Increasing the amount of collaborators and agent in the
neighbourhood market to attract more clients.
 By expanding the manufacturing of flavoured ice cream and
milk.

4. Threats
 Increasing number of private milk merchants and dairies; lack of
entry restrictions for competitors.
 Private players’ unscrupulous business practise;
 Low prices offered by private retailers and private dairies.
 The current local rivals in the arcade include Arogya, Jersey,
Kaveri, and Jenkal.
 The worth and demand fluctuations caused by market
 uncertainly.

22
1.8 INFRASTRUCTURE FACILITIES

 There are accessible automatic crate washers, ghee and curd filling devices.
 There are equipment for automatically filling ghee and curd.
 Purification water is given for the Rhetort process as well as for drinking
after water RO processing.
 Treatment facilities for effluent with a 30000-liter capacity.
 Cleaning of pipes and plant using an automatic CIP system.
 Well-equipped quality control laboratory for bacteriological and chemical
testing of milk and milk products.
 Officers and staff of the dairy plant can eat at the canteen.
 Agmark grading Laboratory, which has the authority to evaluate and certify
ghee from other dairies and grade ghee generated by the unit.
 The aforementioned space is sufficient for the dairy’s future growth in
handling liquid milk up to 100000 litres per day as well as for the production
of merchandises ice cream, yoghurt, paneer, skim milk powder, and other
items.

1.9 FUTURE DEVELOPMENT AND PROSPECTUS

1. Milk purchase

Activities that improve that procurement of milk include the creation of

new societies, the provision of BMCs (Bulk Milk Coolers), instruction
on various production enhancement techniques, cleaning milk
production, and appropriate animal husbandry.

2. Marketing

Adding more parlours, agency, franchise, and walk –in posters.

Additionally, it adopts CSR initiatives including distributing milk and
sweets to students at public (SHEERA BHGYA). Currently, KMF will
introduce between 10 and 20 new products in October 2022.

23
 3. Dairy plant

 Increase in processing capacity: The Mysore dairy began operations in

1965 with a 10TLPD capacity, and in 1980, the capacity further raised
to 60 TLPD. At Allanahalli, Mysore, it has now been expanded up to
6LLPD expandable to 8LLPD.In Hyderabad, there is a plan to launch a
factory.
 Planning to increase market share in northern India.
 Maintain the beneficial fat in ghee, and only MYMUL provides milk
and ghee to Chennai, Kerala, Kottayam, and Bombay.
 Increasing milk sales as the supply tender for flight and rail is going to
be announced.

1.10 AREAS OF OPERATION

The procurement and processing unit is currently spread over a 20-

acer plot in the Alanahally, Mysore. Covering 7 taluk, Mysore, Hunsur,
H.D.Kote, K.R.Nagr, Nanjangud, T.Narsipura, Periyapatana. STEP
(Support to women Training & education program) is being imitated in
MYMUL. Were 978 DCS are active and in name of women, there are
around 295 active DCS. Now NRML (national rural livelihood mission)
is being adopted with 67 societies under it.

24
1.11 FINANCIAL STATMENT

The highlights given below:

Table: 1 Displaying financial statement analysis

Particular 2021 2020 2019 2018 2017

Total 8460423743 8704213085 5989237881 5789690707 5440472191

revenue

PBT 17834714 157243715 78305502 50180213 97156861

Gross 1943107815 1913408785 1317520708 1259347969 743261611

block

Working 702929261 560792313 1141721709 1056172012 379615648

capital

Table 2: showing changes of Growth rate in percentage

Growth rate in % (base year 2017)

Year 2017-18 2017-19 2017-20 2107-21

Total 6.41% 10.08% 59.90% 55.55%

revenue

PBT 48.35% 19.40% 61.84% 83.03%

Gross block 69.43% 77.26% 157.43% 161.42%

Working 178.22% 200% 47.72% 85.16%

capital

The above table shows the base year 2017 and growth rate connection& other
current year.

25
 Comparing the base year of 2017 to the current year, the total revenue
is rising each year. It illustrate that the business is stable.
 The total PBT of the business has been expanding but it has declined in
the year 2019 and later it increased once again.
 The gross block (fixed asset) is increasing as the table above
demonstrates.
 The working - capital has been increasing for the earlier 2years and
been declining for past one years accompanying to the preceding year
i.e. 2019 .its recovering as of now.

26
 Chapter 2
CONCEPTUAL BACKGROUND AND
LITERATURE REVIEW

27
2.1 CONCEPTUAL BACKGROUND

INTRODUCTION TO WORKING CAPITAL

Working capital is often regarded as the lifeblood of a business, representing

the essential capital needed for its daily operations. It encompasses the surplus
of current assets beyond current liabilities and provisions. This excess is
alternatively denoted to as "Net Working Capital" or "Net Current Assets". In
accounting, ‘Working capital signifies the contrast between incoming and
outgoing resources, effectively translating into net cash inflow. It's
characterized by means of surplus of current-assets overhead current-liabilities
and obligations.

Working capital falls into one of the following categories:

1. Permanent working capital:

This pertains to essential working capital, representing the bare
minimum speculation in current-assets that businesses must always
uphold to sustain their basic operations. It's also recognized as static
working-capital.
2. Temporary working capital:
This highlights the additional working-capital that is obligatory in
accumulation to the permanent working capital. It is furthermore
identified as fluctuating working capital or variable working capital. As
fabrication and sales fluctuate, so does the extent of temporary working
capital.
3. Gross working capital :
The total speculation in all current assets is identified as gross
working-capital. Gross working-capital is the total investments made
across all current assets.
4. Net working capital:
Net working capital represents the surplus of total current-assets beyond
total current liabilities. The notion of net working-capital empowers a
firm to discern the extent of resources available for operational
necessities. Net working capital is a dynamic concept, portraying the

28
 firm's liquidity position and indicating the extent to which Working
Capital requirements can be covered by enduring resources. In essence,
it mirrors the financial stability of a company.

The need or goals of working capital

The indispensability of adequate working capital for sustaining day-to-

day business operations cannot be overstated. Virtually every business
enterprise necessitates some level of working capital, albeit their specific
requirements may differ. Recognizing the firm's objective of enhancing
shareholder value, a crucial element involves generating substantial returns
from operations. Achieving noteworthy profitability hinges on effective sales
endeavors. Therefore, the firm must allocate sufficient funds to current assets to
facilitate prompt cash realization. This process inherently encompasses an
operational cycle, entailing the transformation of sales into cash.

The varying requirements of working capital are outlined below.:

1. To pay wages and pay rents.

2. To buy raw material i.e. milk.

3. To gives credit work environment to the client.

4. To pay electric bills and other miscellaneous expenses.

5. To maintain the raw material, work in progress, stores and extra things and
completed stock.

FACTORS DETERMINING WORKING CAPITAL

Working capital varies from company to company. The factors that determine
the prerequisite for working capital is given below.

1. Nature of business: Working Capital needs are contingent upon the

nature of business in public utility business like railways, electric supply,
transport; etc. working-capital requirement is more ,whereas ,it is less in
manufacturing business.

29
 2. Size of business: For labor-intensive industries, higher working capital is
essential due to the elevated wage expenses. Conversely, capital-
intensive industries necessitate comparatively lower working capital.
3. Volume of sales: The degree of sales and the extent of working capital
revelation a direct correlation. When sales volume rises, there is a
concurrent augmentation in the allocation of working capital.
4. Raw Material Supply Fluctuations: While there is a timely and sufficient
provision of raw materials, spares, and other essential items, a business
can function with a smaller quantum of working capital. On the contrary,
if the supply is sporadic, seasonal, or regulated by government entities,
it necessitates maintaining larger stocks, consequently amplifying the
prerequisite for working capital.
5. Cost or raw materials: A business entity necessitates greater working
capital when the raw material demanded is substantial in quantity and
carries a higher cost.
6. Credit Policy: When suppliers extend longer credit terms for raw
materials, the working capital need diminishes. Conversely, if the
company extends credit to customers while procuring raw materials for
immediate cash, the working capital obligation escalates.
7. Cash Obligations Impact: A higher cash demand to cover payments such
as rent, salaries, etc., corresponds to an elevated working capital
requirement, and conversely.
8. Seasonal Fluctuations: Elevated requirements coincide with busy seasons
and inflation, whereas lower requirements are observed during low-
demand periods.

Approaches to Financing Working Capital:

Within the realm of financing sources, the company has pinpointed distinct
avenues for funding its current assets. These avenues can be broadly categorized
into long-term and short-term sources. Long-term sources encompass options
such as shares, debentures, preference shares, retained earnings, and debt from
financial institutions. On the other hand, short-term sources include short-term
bank advances and commercial papers.

30
  Hedging Approach or Matching Approach:
Once the firm adopts a hedging approach to fund its capital, it seeks to align
the anticipated lifespan of assets with the anticipated growth timeline of
funding sources for those assets. This approach focuses on harmonizing the
interval of asset existence with the interval of financial sources' availability
to fund those assets.
 Conservative Approach:
When a significant portion of assets is sourced from long-term financing, the
firm is adopting a conservative financial strategy. In this scenario, the firm
relies heavily on long-term funds, reducing risk exposure. It utilizes long-
term sources to fund both permanent current assets and a portion of
temporary current assets during periods when temporary assets are not
necessary. This strategy enhances liquidity by investing excess funds in
merchantable securities.
 Aggressive Approach:
In an aggressive financial approach, the firm heavily depends on short-term
capitals to finance its assets. Even a segment of permanent current assets is
funded through short-term sources in this approach, contrary to the matching
approach that mandates permanent current assets to be supported by long-
term funds.

Short-Term vs. Long-Term Financing:

Under its financial strategy, the firm has the option to utilize either short-
term or long-term funds to finance assets. Upon selecting short-term or
long-term financing, the firm should then determine the degree to which
assets funded by short-term sources align with the risk-return trade-off
technique.
 Flexibility
 Cost

• Risk Return exchange off;

There is a contention between the utilization of transient and long haul reserves
in the money related arrangement. Transient monetary in is less unreasonable
than long haul financing in any case, in the meantime, fleeting financing

31
includes more serious danger than the long haul financing. In this manner, to
pick between fleeting and long haul financing the firm needs to realize balance
in the middle of danger and return.

LONG TERM SOURCES OF WORKING CAPITAL FINANCE:

An organization requires working capital for the instalment of everyday costs.

A firm for transient reason holds present resources and they are changed over
into money ahead of schedule as could reasonably be expected. Then again, the
settled resources are those, Assets acquired not for resale but to enhance the
firm's earning capacity are considered as non-resale assets. Working capital is
primarily funded by long-term bank loans, usually extending over a period of 7
years or more. These loans serve the purpose of acquiring long-term assets or
making investments. In instances of short-term fund inadequacy, they can also
address short-term working capital needs. Other long-term sources encompass
retained earnings, equity capital, preference capital, and debenture capital.

Source of Working Capital Finance:

1. Trade Credit:
Trade credit refers to credit extended by suppliers of goods and services.
It's a spontaneous financing source, arising from routine business
transactions without specific negotiations, as long as the firm maintains
good creditworthiness. It constitutes a significant financing avenue,
typically ranging from 25% to 50% of short-term financing.
2. Instalment Credit:
This method enables immediate possession of goods with payments
spread across predetermined instalments. While interest is usually
charged on the outstanding amount, this approach furnishes funds for a
specific period. Many businesses employ instalment credit as a means
of short-term working capital financing.

3. Public Deposits:

32
 Firms, both hefty and small, have increasingly sought unsecured
deposits from the public, primarily to address their working Capital
needs. Typically, firms offer high-interest rates, often in the range of
14% to 15%, as an incentive to attract deposits.
4. Advances:
Certain businesses secure advances from customers and intermediaries
based on orders, constituting a short-term and cost-effective source of
finance. Manufacturing industries opt for this approach to curtail their
working Capital investment.

WORKING CAPITAL MANAGEMENT:

Working-capital management is a fundamental business strategy aimed at
optimizing operational efficiency by effectively managing current-assets and
liabilities. Its focus is on monitoring and utilizing these components to their
fullest potential. The practice of administration it establishes a framework for
achieving this objective.
The ideal exchange off between the benefit and net current resources exploited
and the capacity to pay current risk as they fall due.
We came across that working Capital policy normally covers two facts;
 The target levels for every class of current resources and
 The strategies for financing current resources.

Balancing the necessity for adequate and inadequate levels is crucial in guiding
the flow and distribution of working Capital components. Additionally,
planning and utilizing a mix of payment, short-term, and long-term funding
sources are integral for financing current asset investments. It's noteworthy that
the cost of long-term funds displays less fluctuation compared to short-term
funds, which exhibit higher volatility. While determining the working-capital
policy, one should consider both returns and the broader concepts linked to
working capital management. The role of the financial manager involves
monitoring fund inflows and outflows in line with organizational needs. This
encompasses the composition altitudes of current-assets and liabilities,
impacting the company's profitability and risk. These decisions lead to distinct

33
net working-capital positions or strategies, labelled as aggressive, balanced, or
conservative, based on their implications for the company's risk.

DETERMININATION OF WORKING CAPITAL

The organization's working-capital position holds a direct influence on its

liquidity status. Quantitative approaches, such as percentage methods, are
employed to calculate the working Capital position, accompanied by an
assessment of their benefits and drawbacks.

1. Net working capital :

Net working capital is the difference between a company's current assets
and its current liabilities, as presented on the balance sheet. This
quantitative approach signifies the firm's liquidity stance and the extent
of its working capital necessity. This necessity can be funded through
enduring resource streams.
2. Current resources:
current resources intended to be incorporated into money and those
benefits which can be changed into money and provide the future
benefits to individual or corporate, organization within the time frame
of 12months i.e. 1year. For example: Bills receivable, sundry borrower,
inventories, work in progress etc.
3. Current liabilities:
Current liabilities encompass obligations that must be resolved with
cash within the ongoing fiscal year. Examples: charges payable, payroll
due, taxes, accrued expenses, interest payable, rent fees and other short
term debts.
4. Fixed resources:
It demonstrates the effectiveness within the firm by using its interest in
settled resources, for example, land building, plant and apparatus, etc.

5. Sales:
Every single organization need to make benefits with a end goal of
generating revenue. If the company experiences negative Cash flow

34
 stemming from a reduction in incoming revenue., it will draw down its
working capital.
6. Venture:
The magnitude of ventures plays important role in fetching working
capital .The greater the magnitude of business the more extensive the
demand for working capital.

Employees Business Total business %

1-9(Micro) 1022695 82.3%

10-49(small) 177950 14.3%

50-249(medium) 29750 2.4%

250+(Large) 6455 0.5%

7. Creditors:
Sundry loan bosses are to who organization owe cash. It incorporates
broker’s companions, suppliers, relatives, monetary establishments and
so on.
8. Debtors:
Debtors are the persons who need to make instalment for the
organization. It incorporates clients, purchases; and so on generally,
the time given for purchasers for credit instalment is 60 to 90days.
9. Cash:
Cash is basis for each affiliation. It also influences maximum liquidity
and maximum profitability in the day today business. In each method
cash is accept a vivacious part rather in starting another plant, purchase
of milk (raw material), feed and fodder ,advertisement & publicity
also other product which are not manufactured in the MYMUL but
also the demand for product is available.

35
 10. Working capital:
Working capital depicts the variance between resource inflow and
outflow, highlighting the surplus of current-assets compared to current
liabilities.

RATIOS RELATED TO WORKING CAPITAL

Another logical apparatus that can be utilized for examination of working
capital is the book keeping proportions, especially working capital proportions.
A slice of the imperative working capital proportions are:

 Current ratio: (CR)

The current ratio illustrates the connection between current-assets and current-
liabilities, reflecting the firm's solvency and liquidity. This ratio is determined
by dividing the total current-assets by the total current liabilities. The
conventional benchmark for the current-ratio is 2:1.
CR= Current Assets –Current liabilities

 Debtors collection period:

It demonstrates the quantities of times the borrowers are turn over amid a year.
For the most part, the higher the estimation of account holder’s turnover the
more productive is the management of debtors. /deals or more fluid is the
borrowers comparably low indebted individuals turnover infers wasteful in
administration. It signifies the correlation between net transactions and regular
borrowers. There exists no universally established guideline or standard that
could serve as a norm during the interpretation of this ratio.
DTR (Debtors revenue) = net sales –average debtors
Average debtors = Opening stock +Closing stock
Sales

 Debtors Collection Period:

The efficiency in the collection of debts is indicated by this ratio. It
reflects alterations in the company's credit policy or its capacity to recover debts
36
from its creditors. No universally defined rule or standard exists that can be
universally applied for interpreting this ratio.
Debtors collection period = debtors × 365 Days
Sales
 Acid test ratio:
Smart extent, generally called Acid test ratio or Liquid extent, is a more
intensive test of liquidity than the present extent .the term liquidity suggests
the limit of a firm to pay its transient responsibility as and when they get the
chance not out of the ordinary .Quick extent may be portrayed as the
relationship between quick/liquid assets and present or liquid liabilities. The
lively extent can be figured by parcelling the aggregate of the smart asserts by
total current-liabilities. The standard or standard fundamental thumb of quick
extent is 1:1.

 Working Capital turnover Ratio:

The working Capital turnover shows whether working-capital can be
used excellently to deliver deals or not. This ratio is preferred over the stock-
turnover ratio since it shows the effective utilization of the entire working
capital through stock turnover proportion shows just the turnover of inventories
which is a subset of working- capital. By separating the net deals capital, the
percentage may be calculated. there is no overarching principle or benchmark
that might be applied to the translation of this ratio.

W.C. Turnover Ratio = Net Sales/Net WC

CASH CYCLE AND OPERATING CYCLE:

Cash Cycle
An important metric for measuring how effective cash balances are used in cash
cycle period or cash balance is measured by the count of days for sales. More
liquidity is indicated by a higher turnover ratio and less liquidity by a lower

37
turnover rate. The challenge is to balance the propensity for a big turnover with
the propensity for a too small turnover ensures that cash id used as efficiently
as feasible without placing stockholders’ capital at unnecessary risk. The
effective use of cash resources is shown by the cash balance in term of fewer
days’ sales, and such businesses might not need a appropriate rise in cash
resources in tandem with an escalation in sales volume. Thus, it has an impact
on a company’s profitability.

Operating Cycle

Within the dairy industry, the operating cycle denotes the complete
progression encompassing the transformation of purchased raw milk into cash.
This journey is characterized by the following stages:

Transportation of
raw milk

Purchase of raw Dairy

milk from processing
farmers

Cash Packaging

Disposal Distribution

Retail/
consumption

38
2 .2 LITERATURE REVIEW

Samithamby Senthilnathan 2020: The relevant features of working capital

(WC) management explained in the study .The paper’s goal is to illustrate
associated factors and cash management models in the WC management,
particularly from the perspective of accounting learning. the study found that
the efficiency of WC depends on how firm manages its WC requirement which
in return boost profitability i.e. higher liquidity is associated with poorer
profitability, whereas higher profitability is associated with higher liquidity .

Dr.M.SivaKoti Reddy, Mr.G.Gopinath 2019: Managing Working capital at

Tirumal Diary Pvt.Limited .They uses the ratios like current ratio, quick ratio,
debt equity ratio, It proposed that the business should keep more assets on hand,
maintain its bank account balances, and promptly convert its working capital
into revenue to increase the effectiveness of its management of W.C.

Irfan Aryawan, Astiwi Indriani 2020: Profitability and working-capital

management: Evidence from Indonesian manufacturing enterprises. The
purpose of the study is to examine. How working Capital management affects
profitability (return on assets), which is dependent variable. And independent
variables are CCC (cash conversion cycle ),Inventory conversion
period(ICP),ACP & APP along with leverage .By using OLS it showed up ACP
has a negative and significant influence on ROA, whereas the APP and CCC
have a optimistic and trivial impact on ROA.

Najib H.S.Farhan ,Fozi Ali Belhaj,Waleed M.Al-ahdal & Faozi A.

Almaqtari.2020Assessing Working-Capital-Management in India: Realigning
Research FocusThis study addresses the pressing need to evaluate the impact of
working Capital components on the financial-performance of Indian
pharmaceutical companies. Besides, it endeavors to scrutinize how enterprises
of varying sizes, namely small, medium, and large, utilize their working Capital
resources. The study encompasses a dataset from 82 pharmaceutical firms,
spanning the period between 2008 and 2017. Findings reveal that the collection
period, days payable period, and inventory holding period definitely impact the
financial performance of Indian medicinal enterprises. Conversely, the cash-

39
conversion cycle and net operating margin display a adverse influence on the
return on assets.

Kabir Yazid Ibrahim, Muhammad Usainin,Sunday Elijah. 2021: This

research paper speaks about some of the lessons that need to be ignored as the
global economy emerges from the credit crisis, which is a situation where credit
is either scarce or expensive to obtain. This is caused due to Inadequate handling
of working capital.. The study’s findings showed that the weaker the firm
performance, the longer the debtors’ collection period and cash conversion-
cycle. Additionally, it is determined that when profitability is increased, the
longer the credit payment time, the better the firm performance.

Mian Sajid Nazir and Talat Afza(2009)Firm profitability is influenced by

adopting an assertive Working Capital management policy. This study
investigates the established association between a firm's viability and its
Working capital management strategies. The impression of proactive working
capital investment and financing approaches is evaluated using metrics such as
Return-on-Assets and Tobin's Q. The analysis is based on a comprehensive
panel dataset spanning the years 1998 to 2005. The findings suggest that
adopting a prudent stance toward working capital financing and investment
strategies can lead to value creation.

Riyaz Ahmed. SDM Institute 2012: The research highlights the significance
of optimal working capital management, which plays a crucial role in key
financial decisions and contributes to positive value generation for businesses.
Short-term investments encompassing cash, inventories, and debtors,
collectively known as working capital, are essential funds for conducting daily
business operations. The findings underscore that enhancing working capital
administration can effectively improve the net profit margin of Indian
companies. Moreover, the study indicates that short-term variables do not exert
an influence on the Return on Net-Worth in the examined companies.

Luca sensini &Marie Vazquez 2021: The major goal of this editorial was
toassess how WC management affect the viability of Argentine agro –industrial
enterprises. We consider the 326 sample to test hypothesis. It consist of
independent variable (DSI, DPO, and DSO & CCC). Independent-variable as
40
EBITDA and advantage has a control variable. The independent Variable
showed up negative-relationship with profitability; also suggest investing in
inventory and seeking longer grace period from vendors leads to additional
expenses that outweigh any gains.

Dr.V.Bhuvaneswari 2020: The study discusses the categorization of capital

needs into working capital and fixed capital for a company. Working capital
pertains to short-term assets like cash, bank accounts, stocks, and receivables,
while fixed capital is necessary for acquiring assets like plant and machinery,
land and buildings, and furniture and fixtures. The study's goal was to analyze
working Capital management and liquidity position using ratio scrutiny and
changes in working Capital statements. The study concludes that over the years,
there has been an enhancement in both the stability and performance.

Takno S M & Atseye F A 2015: The impact on working capital management

on selected Nigerian companies’ and ability to make profit .Uses the panel data,
pooled OLS regression and fixed effects for the duration of 9 yrs. The findings
of the research indicate a pronounced negative correlation between working
capital and profitability. On the other hand, there was a encouraging and
significant connection observed between return on assets and liquidity.

Omo Aregbeyen 2013: The influence of working Capital and profitability of

Nigerian manufacturing company. It deals with 48 sample of large
manufacturing firm for the dated of 1993 -2005 .It uses correlation and
regression for modelling .The recommendation were the Nigerian firm should
shorten the ACP,APP,ITID and reduce CCC which enhances the profitability.

A.K. Sharma(IIT Roorkee), Satish Kumar (IIM Nagpur ) 2011: Effect of

Working Capital-Management on Firm Profitability: Insights from India. The
study focused on a sample of 263 non-financial-companies listed in the BSE500
index, covering the period 2000 to 2008. The outcomes revealed a affirmative
correlation between working Capital and profit for Indian firms. On the
contrary, indicators like APP and ITID exhibited a undesirable correlation with
profitability. Conversely, ACCP and Account Receivable in Days demonstrated
a optimistic connotation with profitability.

41
Gołaś Z. (2020): This study looked at how working capital management
(WCM) and return on assets (ROA) relate to one another in milk processing
businesses. We employed the Cash Conversion Cycle (CCC), Days Sales of
Inventory (DSI), Days Sales Outstanding (DSO), Days Payable Outstanding
(DPO), and Days Sales Outstanding (DSO) as WCM measures. The Emerging
Markets Information Service (EMIS) database's microdata for Polish dairy
enterprises from 2008 to 2017 served as the study's foundation. Panel regression
models were used to show that, in dairy companies, extending the DSO and
DPO had a positive influence on ROA while extending the DSI and CCC had a
negative impact. Such ties were typically seen among SMEs, which make up
the majority of companies in Poland.

T Hemme, O Garcia, A Saha – 2003 An introduction that gives a broad

overview of milk production in India opens the current document. The extensive
analysis of dairy farming in Haryana State that follows focuses in particular on
the small-scale producers that own two to four milking animals, who make up
the majority. The goal is to evaluate their chances of increasing their dairy
farming income, as well as to determine which management or policy
interventions are most likely to benefit them and whether they are vulnerable to
global competition. The methods utilised has also been evaluated as a further
goal. The International Farm Comparison Network (IFCN), which is founded
on the idea of "typical farms," created a method of economic analysis that is
applied in the Review. To reflect different farm sizes, four were chosen.

Pedro Juan Garcia-Teruel, Pedro Martinez – Solano ( ISSN :1743-9132)

Examining the Stimulus of Working-Capital Management on SME
Profitability: The study encompassed 8,872 small to medium-sized enterprises
in Spain during the years 1996 to 2002. The findings indicated that executives
can enhance value by reducing inventories and days outstanding for accounts.
Additionally, a decrease in the CCC was associated with heightened company
profitability.

Amarjith Gill, Harvinder S. Mand. John 2015: The Relationship Amongst

Working Capital and Promoter Ownership in Indian Manufacturing Companies:
As per directed by the study. promoter ownership and control increase working-

42
capital management effectiveness. The cash conversion cycle of Indian
manufacturing enterprises is reduced as promote ownership and control
increase.

Bhatia and Srivastava 2016 : Examining Firm Performance in Emerging

Economies and its Association with Working- capital Management: This study
encompasses 2,327 firm-year observations drawn from a panel comprising 179
companies listed on the BSE 500 Index. The analysis spans an extended
timeframe, covering the years 2000 to 2014. Employing ordinary least square
(OLS) and fixed-random effects models, the research aims to uncover a
potential inverse association amongst working capital management practices
and firm performance.

D.Mathuva 2015 : Exploring the Connection Between Working Capital

Management and Corporate Profitability: A study was conducted using a
sample of 30 companies listed on the Nairobhi Stock Exchange (NSSE). The
findings revealed a significant negative correlation between the Account
Collection Period and profitability (p<0.01), suggesting that more profitable
firms require less time to collect cash from creditors. Additionally, a positive
correlation was identified between the Inventory Conversion Period and
profitability (p<0.01).

Kamlesh ,Sivasankaran and Rmachandran 2022: This articles tries to

expirementally investigate The influence of efficiency in working capital
management on the foundational aspects of publicly listed Indian companies..
We find that effective WC increases overall profitability, Operational
effectiveness, asset utilization efficiency, and the capacity to generate cash from
operations, whereas ineffective WC management forces business in the Indian
context to rely more heavily on long term debt financing .

M. Pirttila,V. M. Virolainen, L. Lind, karri .2020 : The study say that to get
the business competitive advantage , They need to effectively secure financing
for their supply chains. They uses the model such as CCC and ROA as
measurement .The outcomes were the longer account payable is prevalent
,inventory levels should be high and CCC,s must be short ,the most proficient
firms are folks who pay their suppliers promptly.

43
Amit Khandelwal (2021): Are there any connections between working-capital
Management and businesses operating in India?It consider the top 500 firms on
the BSE,ranked by revenue .The findings were CCC increased by 6 days for
business in India. Inventory turnover days extended in 9 out of the 12 monitored
sectors. To counteract the repercussions of the pandemic on working capital,
69% of businesses raised their payable accounts. Notably, the most substantial
enhancements in the cash conversion cycle were observed within the cement
and building materials, chemicals, and automotive industries.

Zelijana Aljinovic & Muminovic 2018: The researcher investigates the

impression of working-capital management on the success of milk producers,
utilizing samples from companies in the dairy industry of Croatia and
Slovenia. The hypotheses are examined through both univariate and
multivariate analyses. The Cash Conversion Cycle (CCC), employed as a
comprehensive indicator of working capital management, is studied.
Furthermore, a statistically substantial correlation with profitability is
established. However, it is noted that while there is a relationship, none of the
individual essentials of working-capital management significantly influence
profitability, as gauged by return on assets.

44
 CHAPTER 3:

DETAILED
STUDY OF THE
DEPARTMENT

45
DETAILED STUDY OF THE DEPARTMENT

 Procurement and input department

 Purchase and Stores department
 Production department
 Marketing department
 Finance department
 Quality control department
 Management information system department
 Human resource department

3.1 Procurement and Input Department

Deputy Manager

Assistant Manager

Extension Officer G-I

Extension Officer G-II

Extension Officer-III

Sr. Typist Steno

Helpers

46
Introduction:

Raw Material is the basic requirement of every organisation. The

sequence of bringing milk to MYMUL starts from the collection of milk from
the individual milk producer.

MYMUL procures raw milk directly from the farmers through the Dairy
Co-operative societies (DCS). MYMUL has got 71 milk procurement routes
and each route covers around 15 to 20 societies. DCS collects milk from
producer which is stored in cans and transported to MYMUL through trucks. If
the main dairy is far away from DCS, the milk is transferred to nearest chilling
centre in order to chill the milk so as to avoid the growth of micro organisms
which is then transported to main dairy.

MYMUL has got three chilling centres located in Hunsur, Kollegala and
Chamrajanagar. After collecting milk from various DCS, it will be processed in
MYMUL and supplied to the customers. Secondary items like packaging
materials, engineering materials are procured through calling tenders. The
payment is made to supplier of milk on weekly basis and the payment for the
transport contractors is made once in a fortnight. In case of shortage of milk, the
Union purchases milk from other dairy at inter dairy price.

The payment is made to farmers on basis of percentage of Fat and SNF

content at a min of 3.5% and 8.5%. The daily average milk procurement here is
3,12,000.

Function:

 DCS supervision: Extension officers will be visiting once in a month to

DCS to supervise the accounts and to guide the members for
development of the DCS.
 Providing input activities to milk producers through DCS at right time.
 Proper transportation of milk from DCS to dairy.

Proper utilisation of funds under government scheme

47
The technical input programme of the Union mainly covers the following
activities:

 Animal Health Care

 Artificial Insemination
 Feeds and Fodder Development and Extensive Services

3.2 Purchase and Stores Department

Deputy Manager (purchase)

Assistant Manager (purchase)

Purchase/Stores

Superintendent Purchase

Administration Assistant G-I

Administration Assistant G-II

Helpers

48
Introduction:

The purchase and stores department plays a vital role in the

organisations like MYMUL, where the core function is production. The
purchase department performs the function ranging from collection of indents
from each department to purchasing through general inquiry or tender. This
section basically deals with the purchase of LPDE films, ghee films, corrugated
boxes, cartons, sugar, nitric acid, machinery and parts, vehicle spare parts,
stationery items, oil and lubricants etc., except milk.

Once the purchased items arrive at the union premises, it is taken care
by stores section. Store then sends the material to the respective sections as per
the requirements. If the received materials are not used immediately it is kept
into different places as per its category for the future use. The damaged or
obsolete items are sold to the public through auction or other means.

Purchase Procedure

The purchase process starts when the Managing Director of MYMUL

approves the indent requests from different section and departments.

Document required: Indent along with the note approved by Managing

Director.

1) Enquiry will be made with the registered manufactures,

dealers/distributors/suppliers etc.
2) Preparing comparative statement of the offers received
3) Samples quality checking wherever samples obtained
4) Rate analysis
5) Placing before the purchase committee for decision, and then obtaining
approval of the Managing Director or direct approval from the
Managing Director depending upon the sequences
6) Placing purchase order/work orders
7) Quality checking after receipt of material
8) Acceptance
9) Payment as per terms and condition

49
The purchase order consists of the following elements:

 Supplier’s code number

 Date of order
 Mysore Dairy’s inquiry number
 Supplier quotation number
 Material code number
 Description of materials
 Units of materials to be purchase
 Unit rate of material
 Total amount of material
 Discount (if any agreed)
 Central/ Excise duty
 Sales tax
 Insurance charges
 Delivery period
 Payment terms
 Signature of the approver

Handling purchase order:

 After the purchase order is received, store departments procure the type and

quantity of materials as mentioned in the purchase order.

 After the materials for purchase is received from vendor, store department

prepares MRR (Material Received Report) and sends it to the concerned

user departments for the approval. The authority at user division checks the

specification of supply and approves it. Approval certificate is given either

by user division or quality control division.

 Two copies of MRR are retained in the store, two copies are sent to purchase

department and one copy is forwarded to finance department for release of

payment. The MRR is registered in record register. The materials are given

50
 to the user division by recording the material issued in the issue register

against prescribed indent form.

 The rejected lot will be returned to the respective vendors.

 If the materials are unused for 5 years, it is separated from the stock through

co-operative audit and placed in different location for resale. The difference

amount or loss is reduced from the book of account.

3.3 Production Department

Manager (Dairy)

Deputy Manager
Office Staff

Assistant Manager

Technical Officer A A G-I A A G-II

D S G-I Clerk
Typist

D S G-II

Dairy Operation Dairy Technician Dairy Worker

51
Introduction:

The main objective of this department is to follow up production

schedule as per plan and to maintain a good relationship with other departments
in order to upgrade the technical efficiency of production.

Production department is well equipped and has various types of highly

sophisticated machines imported from Sweden and Denmark. Once the milk is
received from P & I department, it is first weighed with the help of weighing
bowl. Later, it is poured in dump tank. Sample testing is made where fat and
SNF content of milk is accessed. The milk is then sent to production section
through stainless steel pipes.

Later, the raw milk is passed through plate chillers of variable capacity
where it is cooled up to 4-5 degrees Celsius. This cooled milk is further stored
in a silo of 30,000 litres capacity.

Production process:

The raw material passes through different process before converting into the
finished good. Here, raw milk is the input material which is processed to deliver
consumable milk and milk products as finished goods

52
Flow chart for milk processing at MYMUL:

Raw milk recovered through tankers

Weighed
Weighedatatthe
theweigh
weighbridge
bridgeand
andall
allthe
thesend
sender
details
detailsare
arerecorded.
recorded

quality testing of milk by

Receivedmilk
Received milkatatthe
theReception
Receptiondesk
desk the shift

Filtration
Filtration

Rawchilled
Raw chilledmilk
milkisisre-chilled
re-chilledtotoless
lessthan
than 5

Quality testing of SMF

Skim milk powder (SMP) for by the shift in-charge of
standardizing
Stand SNF quality control

Quality testing of water

Raw
Rawchille
chilled milk is re-chilled &cream by the shift in-
to less than 5 charge of quality control

Raw chilled milk is stored in raw milk

Silos at less than 5

53
 Pasteurization
Pasteurization

1.1. Balance
BalanceTank
Tank
Auto dislodging and
standardization
2.2. Regeneration-I
Regeneration-I

3. Regeneration-III
3. Heating to more than 72
Phosphate test is done.
4. Heating to more than 72 If found
4. Regeneration-III
for less than 15 secs positive reprocess the
milk

5. Regeneration-I
5. Regeneration-III

6. Inspect cleanliness of cans

6. Regeneration-I
LDPE film for
7. chilling all specification

Pasteurized standardized toned milk,

homogenized toned milk/ full cream
milk is stored in pasteurized milk B
silos at less than 5

Milk is issued to packaging through HMST

Test for Acidity, Fat,
SNF. If deviations
Test
foundforre-process
Acidity the
Packed and stored in cold store at < 8
milk

Dispatch to the market

54
 Flow chart for curds manufacturing at MYMUL

Quality testing of
milk by shift in-
Pasteurized toned milk to charge of Q.C
curds pasteurizer division

Heat milk to 90 for 5 Monitor the heating

min & cool to 32-35 temperature of milk
to 90 and cooling to
32-35

Addition of starter culture @

Test quality of
1.2 % to the milk for curd
starter culture for
making & mixing
purity and activity

Testing of LDPE film

for all specifications
Packaging in 200 g and 500 g
sachets
LDPE film for
packing milk

Incubation at room at
30-35

Test for acidity, fat and

Transfer into cold store after the SNF. If deviations
acidity of curds is more than 0.55 found, reprocess the
% milk to manufacture
the product

Dispatch to the market

55
Clean in Place System (CIP System) at MYMUL

Every equipments and milk lines are cleaned once every day for milk
processing. Hence to process one litre of milk, one litre of water is used. To
clean these equipments and milk lines, sodium hydroxide and nitric acid of
concentration 1% each are used. The procedure followed to clean these
equipments and milk lines are as follows:

1st step- Rinse with water

During this step, raw water is passed through equipment and milk lines
and milk residues are drained out.

2nd step- Lye (Sodium Hydroxide) step

During this step, lye is passed through equipments and milk lines so
that fat content stacked in equipments and milk lines will be drained out after
few seconds and the remaining lye solution will be collected in lye tank. Again,
raw water is passed through equipments and milk lines so that acid remains in
the equipments and milk will be drained out.

3rd step- Acid (Nitric Acid) step

During this step, acid is passed through equipments and milk lines so
that inside milk scaly will be removed and the acid will be drained out after few
seconds. The remaining acid solution will be collected in acid tank. Again, raw
water is passed through equipments and milk lines so that the acid remain in the
equipments and milk lines will be drained out.

4th step- Hot water circulation

Hot water at about 80 degrees Celsius is passed through equipments and

milk lines so that lines will be free from all the section.

56
5th step- Fresh water circulation Fresh water at room temperature is passed
through equipments and milk lines so that the lines will be perfectly cleaned
and they attain the room temperature.

3.4 Quality Control Department

Manager (Dairy)

Deputy Manager Q.C

Assistant Manager Q.C

Technical Officer

Chemist Grade I

Chemist Grade II

Lab Technician

Helper

57
Introduction:

MYMUL is committed to meet the ever-changing needs of the

customers without compromising the quality of its products. A separate quality
control department deals with the quality checking mechanism at the input,
processing and output level. The milk that comes to MYMUL by milk tankers
goes through several tests before acceptance. Apart from that, quality of milk
and milk products is tested in different levels of production and the quality is
maintained.

Quality Objectives at MYMUL:

The basic objectives of the quality control department at MYMUL are:

 Improve quality of raw milks received from chilling centres and bulk
milk coolers of the union
 Ensure that all the batches of milk, curds, butter and ghee to be sent to
the market confirms to the standard stipulated under Bureau of Indian
Standards, prevention of Food Adulteration Act and AGMARK
 Achieve better plant efficiency by carrying out all the maintenance
schedule in time
 Achieve cost competitiveness by reducing the water consumption and
energy consumption in the plant to maximum extent
 Maintain high standard for housekeeping in plant
 To establish high quality brand in the market for its products

Function:

Quality is the essential attribute attached to any product. All products and
services that want to be a leader in the market should provide the superior
quality. MYMUL also follows the same strategy. Q. C department at MYMUL
ensures the quality of the milk and products to the prescribed standards. It is
also responsible for formulating the quality control policies and development
of standards for the milk and milk products from time-to-time. The standards
are mandatory and include the latest quality parameters
The quality control department randomly assesses the quality of milk and the
products produced by the union. It ensures that they comply with the standards
and also provides instructions for improvement. Routine inspection of the
dairy plant and chilling units are part of the responsibility of quality control

58
department to assess the machinery condition, cleanliness and hygiene and
processing parameters being followed. The Q. C department tests the
packaging materials purchased by the union. The quality testing equipments
are checked regularly. The new packaging materials and newly introduced
products go through rigorous quality control checks by Q. C department.
Usually Q. C department tests the purchased materials that are directly
concerned with food. Only after the approval of Q. C the materials purchased
are accepted and stored for record.
Tests carried out for milk and milk products:

Analysis of milk:

1. Argunoreptic test:
This test is conducted to smell, sweet and flavour of milk.
2. Adulteration test:
This test is conducted to see if the procured milk is adulterated
with salt, sugar and soda by the producers.
3. Clot On Boiling test:
This test is conducted to determine heat stability of the milk.
4. Fat and SNF test:
During this test, amount of SNF/FAT is tested. Basically, milk
consists of 85 % water and 15 % solid particles. Price of the milk
received from farmers is determined by its SNF/FAT content. Higher
the SNF/FAT in the milk, greater will be its price.
Analysis of curd:

There are various tests conducted for the curds in Quality Control
department. They are Acidity test, Yeast and Mould test, coli form test, Body
and Texture, flavour test, Fat and SNF test are also conducted to know the Fat
and SNF percentage.

Analysis of Butter:

The various Quality Control tests conducted for butter are Butter Fat
test, curd content test, moisture test, Acidity test, yeast and mould test, coli form
counts. Moisture test is conducted to determine the moisture content of butter
according to predetermine levels of moisture content in the butter.

Analysis of Ghee:
59
 The various Quality Control tests conducted for Ghee are moisture test,
Acidity test, RMV (Richards Mussel Value), PV (Paulsen Value) test and Fat
test. Here, the fat content, acidity percentage and moisture percentage of the
ghee is compared with the predetermined levels of the fat contents, acidity and
moisture test.

3.5 Marketing department

Manager (Marketing)

Deputy Manager Marketing

Assistant Manager

Marketing Officers

Marketing Superintendent

Marketing Assistant

Helpers

60
Introduction:

Marketing is a societal process by which individuals and groups obtain

what they need and want through creating, offering and freely exchanging
products and services of value with others. Marketing is a customer-centred
philosophy rather than product-centric philosophy. The job is not to find the
right customer for our products, but the right products for our customers.

Marketing is the vital function of any organisation irrespective of its

type of operation. In general, task of marketing department or marketer is to
device marketing programs to create, communicate and deliver value for
consumers.

Functions:

 Develop integrated business plan

 Allocate sufficient budget for advertising and sales promotion
 Develop effective advertising and PR campaigns
 Develop efficient and effective distribution channel
 Formulate strategies to out-beat competitor
 Improve sales and market share for Nandini products
 Create awareness for the Nandini products
 Retain Nandini products as the market leader
 Identify the market demand for milk and milk products
 Perform regular market surveys to know the feedback of customers
regarding quality of the product & its service.

Marketing at MYMUL:
MYMUL is marketing milk and milk products in the brand name of
“Nandini”. The impressive growth in the sale of milk by MYMUL over the
years is due to its persistent efforts to maintain timely supply, maintaining
quality and attending to the complaints of consumers and agents with prompt
follow-up action.
“FRESH & PURE” is the motto of MYMUL.

61
Mysore Dairy markets the following types of milk and milk products:
 Toned Milk : 3.1 % Fat and 8.5 % SNF
 Double Toned Milk : 1.5 % Fat and 9 % SNF
 Homogenised Toned Milk : 3.5 % Fat and 8.5 % SNF
 Full Cream Milk : 6 % Fat and 9 % SNF
 Curd
 Sweet Lassie
 Ghee
 Butter milk
 Peda
 Mysore Pak
Distribution system:
Milk and milk products are distributed in two times, at morning and
evening. The distribution routes are allocated on the basis of route-wise, agent-
wise and quantity. Agents are appointed based on the regulation of the milk
union and Co-operative Act, after depositing some amount as a security deposit.
Minimum distance of one kilometre is maintained between one agent to the
other. The agent takes milk and milk products twice a day. After deducting the
commission, the remaining payable amount is remitted in two ways: cash or
credit system.

Marketing strategies of MYMUL:

 All the heavy vehicles are changed to medium insulated vehicle to ensure
timely supply
 Brand building is taken up through acrylic sign boards, glow sign boards,
truck painting, wall paintings etc.,
 To strengthen the Home delivery by encouraging the delivery boys by
providing them with water proof caps and bags.
 Provision has been made to encourage the agents to sell more milk during
flush (Oct - Dec) by giving 20 ps. Incentive

62
 School children/ Mahila Mandal (women) will be taken for dairy visit to
develop confidence about quality of milk
 Door-to-door campaigning is taken to educate consumers about quality of
NANDINI milk compared with the other existing private brands of milk
 Agents orientation programme is conducted every year with a view to
encourage them by solving their problems
 Milk is made available throughout the day by opening “ANY TIME MILK
COUNTERS”
 By restructuring marketing department more focus is given to key thrust
areas in market development activities like consumer education,
identification of new market for the existing products and planning of
effective sales and promotion programme.

Promotional measures adopted by MYMUL:

 It is organising consumer awareness programme as a part of market

development program to create awareness on “Nandini” milk. It includes
door-to-door campaigns, organisational meetings and Mysore Dairy Plant
visit
 Distribution of Tarpaulin bags to door delivery boys
 Wall painting was done
 Advertisement campaigns in the electronic media
 Public contact programme of one day is being launched in all the taluks of
Mysore district
 Periodic survey of households to collect the feedback and to attend the
weaknesses observed
 Training the marketing staffs at all levels regarding various aspect of
promotion

63
3.6 Finance Department

Manager (finance)

Deputy Manager Finance

Assistant Manager Finance

Account Officer

Superintendent

Account Assistant G-I

Account Assistant G-II

Helpers

64
Introduction:

Finance department is one of the most important functional departments

of any organization. It aims at gathering the funds from various sources to meet
the financial requirements of the organization. Capital budgeting, capital
structure and working capital management are three important areas of decision
making by finance department.

In capital budgeting, finance department develops efficient capital

investment plans for the favourable operation and growth of the company. It
accounts for huge amount of managerial time and energy.

In capital structure decisions, the means to finance the investment

projects is finalised. The optimum debt-equity ratio is decided in order to
minimize the cost of financing the projects. But it should not conflict with the
organizational objectives. With the increase in equity, the long-term liability of
the firm is increased whereas the increase in debt will increase the risk for the
firm.

The difference of current assets and current liabilities is the working

capital for the firm. Working capital management deals with the short-term
financial management of the firm. It is very important for running the day-to-
day financial activities in the organization, without any interruptions. The credit
policy to customers and the inventory policy at organization are important
things to be taken care of. The appropriate sources of short-term financing are
to be decided.

Objectives:

 To protect the financial interests of the company

 To help in achieving the business results
 To monitor and control the collection and payment of funds
 Liaison with banks and financial institutions
 To monitor the cost control and cost reduction techniques
 To monitor the budget and budgetary controls

65
 To maintain a liquidity position
 To access the working capital requirements
 To maintain adequate funds to carry on the business effectively

Functions of finance department at MYMUL:

 Prepares and maintains Journal book, Ledger accounts, profit & loss
accounts and Balance Sheet for each year
 To analyze the financial position of the organization regularly by
maintaining the records of financial statements in efficient manner and
analyzing it
 Computes the working capital requirements and decides the sources to
finance it in a less risky and cheap way
 Calculates the future requirement of funds and find out methods for making
it available
 Maintains good relationship with the other departments by making them
available the financial information as and when needed.

66
3.7 Human Resource Department

Deputy Manager (Administration)

Assistant Manager

Administration officer

Administration Superintendent

Administration Assistant G- I

Administration Assistant II

Helpers

67
Introduction

“Organizations are not mere bricks, mortar, machineries or inventories.

They are the people. It is the people who staff and manage organizations”

The success or failure of any organization is basically dependent on the

quality of human resource it has. Human resource gives the competitive edge to
an organization from the other. So, every successful company gives importance
to its human resource and maintains a separate department to deal with it.

Currently, MYMUL has 381 employees at total. To deal with the human
resources at MYMUL, there is a separate department called as Administration
Department or HR Department. It deals with all the dimensions of the
employees at MYMUL.

Recruitment and Selection:

A committee called “Expert Panel Committee”, the apex body of the

union which comprises of: MD of MYMUL, President of MYMUL, one
representative from the KMF, one from the Board of Directors of NDDB, one
member from the Registrar of the Co-operative Societies, is authorized for
hiring new employee to any post or cadres at MYMUL.

Procedure for Selection:

 If a post is to be fulfilled by competitive examination, then after giving

adequate publicity in the newspaper, the appointment procedure will be
carried out in the order of merit from the list of candidates prepared by the
selection committee or expert panel
 For direct selection, after giving adequate publicity in leading newspaper to
the recruitment, the appointing authority may determine in the order of merit

Incase if the post is being filled by internal promotion from its own staff, it is
done by selection of a person on the basis of merit and suitability in all
respects to discharge the duties of the post with due regard to seniority from
among the

68
 persons eligible to promotion will be screened by the committee prescribed
by MYMUL.

Age limit: For direct recruitment the age limit for general candidates is that one
must have attained the age of 18 years and not attained the age of 35 years.

Service benefits:

The employees of MYMUL are entitled to various service and welfare

benefits. Some of the benefits provided to employees are:

 Dearness Allowance (D.A): It is provided as par with the state government

employees. The D.A amounts to 22.25 % of Basic Salary.
 House Rent Allowance (H.R.A): Each employee is entitled for HRA. It
amounts to 13 % of Basic Salary.
 Conveyance Allowance: The employees owing four wheelers get a
conveyance allowance equivalent to the cost of 15 Litres of petrol whereas
the employees with two wheelers get amount equivalent to 20 Litres of cost
of petrol and others 5 Litres of petrol
 Shift Allowance: A shift allowance of Rs. 2/day is provided to the workers
working in the second shift i.e. from 2 P.M to 10 P.M. and shift allowance
of Rs. 3/day is provided to workers working in third shift i.e. from 10 P.M
to 6 A.M.
 Heat Allowance: An employee working in the boiler section get an
additional rupee per day plus 250 ml of milk for self consumption on duty.
 Cold storage Allowance: The employee working in the cold store get an
additional rupee per day plus 250 ml of milk for self consumption on duty
 Attendance Benefits: The employees who remain regular get the additional
amount of Rs. 30 per month and he or she is allowed to be late by an hour
once a month.
 Bonus: The bonus is awarded to employees in accordance to The Bonus Act
1965, amended by Indian government from time to time.
 Milk at Subsidized rate: Each employee gets a subsidized milk facility. For
every litre milk purchase, ¼ litre milk at free all the time. During flush
season (Oct – Nov) when the procurement of milk is very high, each
employee gets ½ litre of milk at free

69
 Free supply of Ghee: Each employee gets 500 g free supply of ghee twice a
year.
 Provident Fund: The provident fund facility is provided to employees as per
the Employees Provident Fund and Family Pension Fund Act.
 Subsidized Canteen: Mysore Dairy has got one canteen to provide
convenient and cheap food facilities to its employees. Here, the employees
get breakfast and meals at very cheap prices.
 Medical Facility: It covers the employee and his dependents, children less
than 18 yrs. For Inpatient up-to Rs. 50,000 per annum is provided.

Leaves:

 Earned Leave: An employee can take earned leave of 30 days per year,
which if not taken can be accumulated for a maximum of 240 days.
 Half Pay Leave: The employees are also entitled to 20 days of half pay leave
per year.
 Casual Leave: An employee can take 15 days casual leave in a year, but it
should not exceed 7 days in a stretch. Casual half day leave can also be
taken.
 Maternity Leave: Female employees are availed 2-3 months maternity
leave. But it is granted only twice in one’s entire service period.
 Extraordinary Leave: It is only provided to the permanent employees and
can be granted only when no other leaves are left to the employee’s credit.
This leave is granted not more than 60 days at once and can be provided
maximum of 5 times in entire service period.

Promotion and Transfer:

Promotion is solely on the basis of sensitivity and experience. Transfers are

always accompanied by promotions

70
Induction:

After an employee is employed in MYMUL, he or she is made familiar to the

union and also know the objectives, values, functions and the operations. This
helps the employee to interact with senior staff members from various
departments.

Training and Development:

Training and Development refers to the imparting of specific skills,

abilities and knowledge to an employee. Training refers to the process of
imparting specific skill. Development refers to those learning opportunities
designed to help employee’s growth. The need for training and development is
determined by the employee’s performance deficiency, computed as follows:

Training and development need= Standard performance – Actual performance

Benefits of Training and Development programs in MYMUL:

 Improves the morale of the work force.

 Helps people identify with organisational goals.
 Improve the job knowledge and skills at all levels of the organization.
 Aids in improving organizational communication.
 Helps employees adjust to change.
 Improves the coordination between employees.

71
3.8 Management Information System (MIS) Department

Manager (MIS)

Assistant Manager

System Officer

Assistant

Peon/Helpers

72
Introduction:

Management Information System (MIS) is the integrated part for

providing information to supporting operation, management and decision
making in an organization. It mainly deals with processing information and
conversion of inputs into outputs.

Function:

MIS is a systematic effort to furnish timely information to the top

management. The main function of this department is to collect information
from the production department everyday in the form of daily reports. The
information collected is in the form of the following:

 Actual production (output).

 Break down of machinery ( if any ).
 Absenteeism of workmen ( if any ).
 Raw material storage ( if any ).
 Other details.

The information thus is received, classified, processed and analysed. After the
information is thoroughly analysed, the department combines it in the form of
weekly report and monthly reports. These reports are submitted to MD who in
turn issues instructions to the concern department for further actions. The
department will take care of avoiding the wastage and other production losses.
It highlights the importance of optimum utilization.

73
 Chapter 4
RESEARCH DESIGN

74
4.1 STATMENT OF THE PROBLEM
Within a manufacturing company, the task of overseeing working capital is
notably intricate and fraught with risks. The preservation of robust liquidity is
paramount for overall success. A prominent predicament encountered by many
enterprises revolves around the upkeep of working capital. Consequently, the
careful equilibrium of components such as inventory management, cash
management, and accounts receivable management assumes paramount
importance in retaining the health of working capital.

Studying working capital management is crucial because without effective

working capital management, including monitoring, planning, and reviews at
regular intervals to identify and address any bottlenecks, a company cannot
generate a profit or grow its turnover.

4.2 NEED FOR THE STUDY

A firm's solid financial base and operational success hinge on expert

management of working capital. The ability to skilfully navigate working
capital management, ensuring a harmonious equilibrium between expansion,
profitability, and liquidity, serves as a clear indicator of adept business
administration.

4.3 OBJECTIVE OF THE STUDY

1. To evaluate the MYMUL dairy's performance and operational

effectiveness.
2. To investigate how the cash conversion cycle affects working capital.
3. To assess the debtors' collection timeframe affects working capital.
4. To assess the impact of debt-collecting period on working capital.
5. To investigate the length of the inventory-holding period affects
working capital.

75
4.4 SCOPE OF THE STUDY:

 The focus of this endeavour is limited to the maneuvers of MYMUL Dairy

(Mega Dairy), specifically examining how the collection period for debtors,
the assembly period from creditors, and the duration of inventory holding
collectively influence the organization's working capital. This analysis is
confined to the historical data spanning the last five years.

4.5 RESEARCH METHODOLOGY:

Research involves systematically investigating real-world problems with the

aim of offering factual solutions. It's a deliberate and scientific exploration of a
specific issue, driven by predefined goals. This process is organized,
methodical, and grounded in data, utilizing historical information to assess cost
management and reduction strategies within a company. Various calculations
are applied to analyse pertinent organizational data, aligning it with the research
objectives.

Using the appropriate statistical methods, the composed data has been analysed.
Regression analysis was applied to the claim analysis. The data was evaluated
using the SPSS model while considering the elements specified in each
hypothesis. To assess the validity of the research of hypotheses, a "student T-
test" is utilised.

Regression analysis was used to examine whether there is a correspondence

between the variables. This involved regressing Variable-Y on Variable-X to
see if there was a significant positive link between an increase in Variable-X
and an equal increase in Variable-Y. One exists if the relationship is the exact
opposite of that. The Regression Coefficient (r2) was used to calculate the
strength of the association between X and Y. The ratio of the dependent variable
Y's variance to the overall variation of the independent variable X is represented
by this statistic.

76
 • If the tabular t test is higher than the calculated t test (Ttab>Tcalc), the
decision rule is to castoff the alternative hypothesis (H1) and accept the
null hypothesis (H0).

• Accepting the substitute hypothesis (H1) while rejecting the null hypothesis
(H0) if the tabular t test is less than the calculated t test (Ttab).

The information has been collected from the below sources in the preparation
of the project.
 Secondary sources:
 The data is collected from the number of books, Magazines and documents
of MYMUL.
 Collection of required data from the annual records, Monthly records,
internal published book or profile of MYMUL.
 The company's annual reports;
 Additional publications and periodicals relevant to the dairy industries

4.6 HYPOTHESIS:

1. H0 = There is no association between inventory holding period and

working capital of the organization.

H1 = There is an association between inventory holding period and

working capital of the organization

2. H0 = There is no interrelation between debtors collection period and

working capital of the organization.
H1 = There is an interrelation between debtors collection period and
working capital of the organization.
3. H0 = There is no association between cash cycle and working capital of
the organization.
H1 = There is an association between cash cycle and working capital of
the organization.

77
 4. H0 = There is no interrelation between creditors collection period and
working capital of the organization.
H1 = There is an interrelation between creditors collection period and
working capital of the organization.

4.7 Constraints of the study

1. Study is based on data that the company provided.

2. The study has a five-year time frame.
3. Since finncial statements are fundamentally historical, information
cannot be trusted.
4. The limitation of the techniques of ratios analysis and trends analysis
also holds.
5. As it is a co-operative society, more information is not available.

4.8 Chapter Scheme:

Chapter 1: Introduction

This interval includes information about the company's promoters, vision,

mission, and quality-policy, as-well-as its products and services' profile regions
of operation, infrastructural facilities, competition data, SWOT analysis, future
growth and prospects, and financial statements.

Chapter 2: Conceptual background and literature review

The hypothetical experience of the study has been given in depth knowledge
along with 20-literature review to sustenance the study research.

Chapter 3 : Detailed analysis of the department

This helps us to know how each department is responsible for each process from
raw materials to finished products.

Chapter 4: Research design

This section consist of the problem, the requisite for the study, the study's
purpose, and its scope. Methodology, restrictions, and chapter structure.

78
Chapter 5: Analysis and Interpretation

This chapter offers the analysis of secondary data that was acquired in
accordance with the objectives and equations in order to upsurge the analysis
accuracy and thoroughness.

Chapter 6: Findings, Suggestion and conclusion

Findings, recommendation and conclusion are provided in this chapter.

79
 Chapter - 5

DATA ANALYSIS AND INTERPRETATION

80
 Objective

To scrutinize the company's liquidity condition by examining its

turnover and liquidity ratios.

CURRENT RATIO:
Current ratio = Current asset ÷ Current liabilities

Table no 5.1: Table showing the details of current ratio.

(Rs in corers)
Year 2022 2021 2020 2019 2018

128.1 130.3 81.51 195.9 202.0

Current asset
48.80 60.00 35.58 157.9 163.35
Current liabilities
2.62 2.171 2.29 1.24 1.23
Current ratio

Graph :1

Current Asset
3

2.5

1.5

0.5

0
21-22 20-21 19-20 18-19 17-18

Interpretation: A quantifiable ratio can be anywhere between 1.5 - 3, and you

figure out in the diagram from 2020 to 2022 it has better ratio i.e. 2.29, 2.171,
2.62.
Inventory turnover ratio
81
Inventory turnover ratio, which shows how frequently the-stock is changed
over and sold over the year.
Stock turnover ratio = cost of goods sold
Average stock
Table No5.2: Table showing the details of Inventory ratio. ( Rs in lakh )

Year 2022 2021 2020 2019 2018

Cost of goods 80105.84 68525.21 70687.90 46984.48 48407.18

sold

Average stock 3223.00 2748.61 3653.81 3643.58 2251.21

Inventory - 24.85 24.93 19.34 12.89 21.50

turnover ratio

Graph 2

Inventory turnover Ratio

30
25
20
15
10
5
0
21-22 20-21 19-20 18-19 17-18

Interpretation: In 2018, the inventory- turnover ratio was 21.50.The sales have
decreased in the approaching years, which has caused the ratio to decrease.The
ratio was raised to its maximum in 2021 and 2022, which is 24.93 and 24.85,
respectively.

STOCK HOLDING DURATION (Inventory holding period)

82
Stock holding period = Days in a year
Stock turnover proportion
Table No 5.3: Table showing the details of Stock holding ratio. (Rs. in lakh )

Year 2022 2021 2020 2019 2018

365 365 365 365 365

Days in a year

Stock 24.85 24.93 19.34 12.89 21.50

turnover ratio

14.688 14.640 18.872 28.316 16.976

Stock holding
period

Graph 3

30
Stock holding period
25
20
15
10
5
0
21-22 20-21 19-20 18-19 17-18

Interpretation: In 2018, the stock holding period increased to 16.976 days,

presuming that inventory moves swiftly and promptly recoups its cost + profit.
Additionally, it has been getting worse in 2019 the delay between inventory
movement and profit. Returning to the growing phase of 14, once more.

DEBTORS TURNOVER-RATIO (DTR)

83
The debtor turnover ratio reflects the effectiveness of the company's debt
collection efforts. This ratio establishes the frequency with which receivables
from debtors have changed throughout the course of the defined period..

Debtors turnover-ratio = Net sales ÷ Average debtor

Table No 5.4 showing debtors-turnover ratio (Rs in lakhs)

2022-21 2021-20 2020-19 2019-18 2018-17

YEARS
95544.31 84604.23 87042.13 59892.37 57896.90
SALES
1178.715 1328.225 1279.185 1771.27 1266.535
AVG
DEBTORS
81.05 63.69 68.04 33.81 45.71
DTR

Graph 4

Debtors turnover ratio

90
80
70
60
50
40
30
20
10
0
21-22 20-21 19-20 18-19 17-18

Interpretation: It is apparent that the debtors' turnover ratio fell between 2017
and 2018, or in the debtors' collection period, by a difference of 11.9 times.
After that, throughout the previous four years, it has been sharply rising, i.e. is
81.05 times in 2022.In the dairy industry, a 10 to 12 times debtor turnover ratio
is ideal. A shorter time interval between sales and cash collection can be shown
in higher debtor collection periods.
DEBTORS COLLECTION PERIOD

84
The borrower holding period measures the type of borrowers by defining how
fast or clearly money is withdrawn from them. A shorter accumulation time
suggests prompt instalments from account holders.
Debtors collection period = Days in a year ÷ Debtor turnover ratio

Table No 5.5 showing debtors collection period (Rs in lakhs)

YEAR 22-21 21-20 20-19 19-18 18-17

365 365 365 365 365

DAY IN
A YEAR
81.05 63.69 68.04 33.81 45.71
DTR
4.50 5.75 5.36 10.79 7.98
DCP

Graph 5

Debtors collection period

12

10

0
21-22 20-21 19-20 18-19 17-18

Interpretation: In 2017, it lasted about 8 days, which is a lot less time than the
average period, which might range from 10 to 15 days or even less. It reaches
10.78 days in the year 2018, which is better, but in subsequent days it has fallen
short of the norms.

85
CREDITORS TURNOVER RATIO (CTR)
The proportion of accounts payable to total revenue is a transient liquidity
metric used to assess how quickly a company pay its suppliers. The total
purchases made using suppliers divided by the average amount of accounts
payable during the same period yield the creditor liability turnover proportion.

Creditors turnover ratio = cost of goods sold ÷ Average creditors

Table No 5.6 : creditors turnover ratio (Rs in lakhs)
YEAR 22-21 21-20 20-19 19-18 18-17

COST OF 80105.84 68525.21 70687.90 46984.48 48407.18

GOODS SOLD

5948.32 11347.87 9679.165 4779.615 8128.015

AVERAGE
CREDITORS

13.467 6.0386 7.3031 9.8301 5.9556

CTR

Graph 6

Creditor turnover ratio

15

10

0
21-22 20-21 19-20 18-19 17-18

Interpretation: It is obvious that the turnover ratio of creditors is

increasing. The association between the turnover ratio of creditors and
the interval it takes for them to be collected can be determined in the
interim. The ratio increases to 6.03 in 2020 and to 13.467 in 2021.

86
CREDITORD COLLECTION PERIOD (CCP)
A collection time is the standard figure of days required to recover receivables
from clients. It is determined by how long it takes since the interval of invoice
is sent until the client pays it.
Given that the creditor company has its funds at risk for a shorter amount of
time and requires less working capital to operate the firm, a shorter gathering
period is thought to be ideal. Some organization, however, consciously permit
a longer collection period in order to increase their sales to client with lower
credit quality.

Table No 5.7: Creditors collection period (Rs in lakhs)

YEAR 22-21 21-20 20-19 19-18 18-17

365 365 365 365 365

DAY IN
A YEAR
13.467 6.0386 7.3031 9.8301 5.9556
CTR
27.103 60.444 49.978 37.130 61.286
CCP

Graph 7

Creditor collection period

70
60
50
40
30
20
10
0
2021 2020 2019 2018 2017

Interpretation: It is apparent that ratio of creditors holding periods increased

in 2017. It was higher than other things, then it decreased to 27.103 from 2017.

87
WORKING CAPITAL TURNOVER RATIO (WCTR)
This ratio demonstrates the turnover of working capital over following year.
This ratio measures the efficiency with which the business uses its working
capital.
Working capital turnover ratio= Net sales ÷ Net working capital

Table No 5.8 showing working capital turnover ratio. (Rs in lakhs)

YEAR 22-21 21-20 20-19 19-18 18-17

95544.31 84604.23 87042.13 59892.37 57896.90

SALES
7029.29 5607.92 11417.21 10561.72 3796.15
WC
13.59 15.08 7.62 5.67 15.25
WCTR

Graph: 8

Working capital turnover ratio

18

16

14

12

10

0
21-22 20-21 19-20 18-19 17-18

Interpretation: Over time, the working capital varies. 2018 saw 15.25 times, as much.
In later 2 years it was turned down where in 2021 is has been further increased to 15.08
and it started to decline in 2022.

88
OPERATING CYCLE

The Operational period is the length of period it takes an entity to get goods., sell them,
and make money from those sales.

Operating cycle = Inventory collection period + Debtors collection period

Table No 5.9: Showing operating cycle (Rs in lakhs)

Year Inventory Debtors Operating cycle
collection collection
period period

14.688 4.50 19.188

22-21

14.640 5.75 20.39

20-21

18.872 5.36 24.232

19-20

28.316 10.79 39.106

18-19

16.976 7.98 24.956

17-18

Graph: 9

operating cycle
50
40
30
20
10
0
21-22 20-21 19-20 18-19 17-18

Interpretation: The operating cycle was shorter in 2017, which increased the
collection period. The operational cycle started to fall later in the year of 2108 and
has been increasing for the last three years.

89
CASH CYCLE

Cash cycle = Inventory collection period +Debtors collection period –

creditors collection period

Table No 5.10: showing cash cycle

Year Inventory Debtors Creditors Cash cycle
collection collection collection
period period period

14.688 4,50 27.103 (7.915)

22-21

14.640 5.75 60.444 (40.054)

20-21

18.872 5.36 49.978 (25.746)

19-20

28.316 10.79 37.130 +1.976

18-19

16.976 7.98 61.286 (36.33)

17-18
22-21 14.688 4.50 27.103 (7.915)

Graph: 10

cash cycle
10
0
-10 2021 2020 2019 2018 2017
-20 cash cycle
-30
-40
-50

Interpretation: we can clearly absorb that we have a negative cash cycle for
the 3 long years and in the year 2018 we have a positive cash flow i.e., 1.976.
A company is said -to be in a negative cash cycle when it pays its creditors more

90
quickly than it receives payment from customer. This may result in a decrease
in cash flow, endangering the viability and sustainability of the Company.

Hypothesis Analysis
1. Working capital VS Inventory holding period
Summary Output:
Independent variable Inventory holding period

Dependent variable Working Capital

Regression Statistics

Multiple R 0.8725364

R Square 0.7613198

Adjusted R Square 0.6817598

Standard Error 2.5271649

Observations 5

ANOVA

df SS MS F Significance
F

Regression 1 61.1137923 61.1137922 9.569121 0.0536

9

Residual 3 19.1596877 6.38656257

1

Total 4 80.27348

91
 Observation Predicted Y Residuals Standard
Residuals

1 14.707634 -1.11763415 -0.510664238

2 14.770616 0.30938352 0.141362089

3 10.369726 -2.74972572 -1.256391989

4 5.2917748 0.37822516 0.172816895

5 12.070249 3.17975119 1.452877244

RESIDUAL OUTPUT

Probability Output

Percentile Y

10 5.67

30 7.62

50 13.59

70 15.08

90 15.25

Coefficients Standard t Stat P-value Lower 95% Upper 95%

Error

Intercept -4.85 5.38 -0.90 0.43 -22.00 12.29

X Variable 1 0.78 0.25 3.09 0.05 -0.02 1.59

92
Interpretation: We can reject the null-hypothesis and accept the a novel
hypothesis and come to the conclusion that "There is relationship between the
Working capital dependent variable and Inventory holding period" based on the
hypothesis and taking into account the Anova test, which provides the value of
0.0536, which is greater than 0.05.

2. Working capital VS debtors’ collection period.

Summary Output:
Independent variable Inventory holding period

Dependent variable Working Capital

Regression Statistics

Multiple R 0.371917

R Square 0.138323

Adjusted R Square -0.149

Standard Error 4.801731

Observations 5

ANOVA

df SS MS F Significance
F

Regression 1 11.10363 11.10363 0.481581 0.537616

Residual 3 69.16985 23.05662

Total 4 80.27348

93
 Coefficients Standard T Stat P-value Lower Upper

Error 95% 95%

Intercept 6.235021 7.80452 0.7989 0.482 -18.602 31.072

X variable 0.089069 0.12835 0.694 0.537 -0.3194 0.4975

1

RESIDUAL OUTPUT

Observation Predicted Residuals Standard

Y Residuals

1 13.45407 0.13593 0.0327

2 11.90783 3.17217 0.7628

3 12.29528 -4.67528 -1.124

4 9.246447 -3.57645 -0.86

5 10.30637 4.94363 1.1888

Probability Output
Percentile Y

10 5.67

30 7.62

50 13.59

70 15.08

90 15.25

94
Interpretation: We can reject the null hypothesis, accept the alternative
hypothesis, and can conclude that "There is relationship between the
Working capital dependent variable and Debtors collection period"
considering the hypothesis and outcomes the Anova test, leading to a value of
0.537616, (higher than 0.05).

Multiple R 0.658166

R Square 0.433182
3. Working capital, VS
Adjusted R Square 0.244243
cash cycle
Summary Output Standard Error 3.894458

Observations 5

df SS MS F Significance
F

Regression 1 34.77306 34.77306 2.292709 0.22721

Residual 3 45.50042 15.16681

Total 4 80.27348
Independent variable Cash cycle

Dependent variable Working capital

Regression- Statistics

95
ANOVA

Percentile Y

10 5.67

30 7.62

50 13.59

70 15.08

90 15.25

Probability

Percentile Y

10 5.67

30 7.62

50 13.59

70 15.08

90 15.25

Coefficients Standard T Stat P-value Lower Upper

Error 95% 95%

Intercept 7.931 2.9 2.7349 0.072 -1.298 17.16

X variable -0.162 0.107 -1.514 0.227 -0.504 0.179

1

RESIDUAL OUTPUT

96
 Observation Predicted Residuals Standard
Y Residuals

1 9.2168 4.373 1.2967

2 14.437 0.643 0.1905

3 12.113 -4.493 -1.3322

4 7.6101 -1.94 -0.5752

5 13.833 1.417 0.4203

Interpretation: We can reject the null hypothesis, accept the alternative

hypothesis, and draw the conclusion that "There is relationship between the
Working capital dependent variable and Cash cycle" Considering the
hypothesis and outcomes of the Anova evaluation, leading to a value of 0.22721
(higher than 0.05),

4. Working capital VS Creditors collection period

Summary Output:

Independent variable Creditors collection period

Dependent variable Working capital

Regression Statistics

Multiple R 0.194509

R Square 0.037834

Adjusted R -0.28289
Square

97
 Standard Error 5.074

Observations 5

ANOVA

df SS MS F Significance
F

Regression 1 3.037038 3.037038 0.117964 0.753914

Residual 3 77.23644 25.74548

Total 4 80.27348

RESIDUAL OUTPUT

Observation Predicted Residuals Standard

Y Residuals

1 10.085 3.505 0.7976

2 12.122 2.958 0.6732

3 11.775 -4.16 -0.946

4 11.083 -5.41 -1.232

5 12.145 3.105 0.7067

Probability Output

Coefficients Standard T Stat P-value Lower Upper

Error 95% 95%

Intercept 13.778 7.169 1.9219 0.1504 -9.036 36.592

X -0.274 0.798 -0.343 0.7539 -2.814 2.2662

variable
1

98
Interpretation: We can reject the null hypothesis, accept the alternative
hypothesis, and come to the conclusion that "There is relationship between
the Working capital dependent variable and Creditors collection period"
Considering the hypothesis and findings of the Anova test, which gives the
value of 0.753914, which Is greater than 0.05.

99
 CHAPTER 6

FINDINGS, CONCLUSION AND SUGGESTION

100
The insights and judgemental reached after scrutinising a company’s financial
accounts and associated data are referred as financial analysis results. Financial
analysis involves assessing a variety of aspects of company’s financial
performance, position, and operations in order to enhance understanding its
financial health, strength, weaknesses, and potential threats. The findings of
financial analysis provide information that may aid in the decision- making
process for creditors, manager, investors, and other stakeholders.

The results of financial analysis gives a complete picture of health and

performance of a company’s finances. These results give interested parties the
information they need-to make judgements that are in line with their objectives
and risk tolerance.

6.1 Findings:

The end- results of the ratio analysis comprise:

Current ratio: A quantifiable ratio can be anywhere between 1.5 - 3, and you
figure out in the diagram from 2020 to 2022 it has better ratio.

Inventory turnover ratio: In 2018, the inventory turnover ratio was 21.50. The
ratio was raised to its maximum in 2021 and 2022, 24.93 in 2021 and 24.85 in
2022, respectively.

Creditor’s collection period: It is evident that the ratio of creditors holding

periods increased in 2017. It is higher relative to other things and has decreased
to 27.103 from 2017 levels.

Debtors turnover ratio: debtor’s turnover ratio decreased from 2017 to 2018
with difference of 11.9 times i.e. decreased in the debtors collection period.
Later, it has dramatically increased during the last four years, reaching 81.05
times in 2022.

Debtor’s collection period: In 2017, it lasted about 8 days, which is a lot less
time than the average period, which might range from 10 to 15 days or even

101
less.It reaches 10.78 days in the year 2018, which is better, but in subsequent
days it has fallen short of the norms.

Working capital: It was 15.25 times more in 2018 than it was in 2017 .later 2 years it
has been declined where in 2021 is has been further increased to 15.08 and it started
to decline in 2022.

Operating cycle: The operating cycle was shorter in 2017, which increased the
collection period. The operational cycle started to fall later in the year of 2108 and has
been increasing for the last three years.

Cash cycle: We can easily understand that after three lengthy years of a negative
cash cycle, we now have a positive cash flow cycle, or 1.976, for the year 2018.

The findings under the hypotheses includes:

Hypothesis 1:

“There is a positive relationship between the working capital and inventory

holding period” .i.e. 0.0536 which is greater than 0.05 (reject null hypothesis)

Hypothesis 2:

“There is relation and dependence between the companies’ working capital and
debtor’s collection period”. i.e. 0.537616, which is greater than 0.05 (reject null
hypothesis)

Hypothesis 3:

“There is relation and dependence between the companies’ working capital and
creditor’s collection period”. i.e. 0.22721, which is greater than 0.05 (reject null
hypothesis)

Hypothesis 4:

“There is relation and dependence between the companies’ working capital and
cash cycle”. 0.753914, which is greater than 0.05 (reject null hypothesis

102
6.2 Suggestions

 Maintaining a balanced working capital is important since having an

insufficient or excessive amount will jeopardise the company's capacity
to remain solvent.
 To effectively handle the stock. The business can adhere to economic
order quantities to prevent pointless money blocking in surplus
inventory.
 Planning and controlling the organization's cash flow effectively has
simplified cash management. so as to keep the best possible cash balance
 Reduce inventory and increase inventory turnover by comparing it to
industry competitors, and uncover the opportunities to reduce their day’s
inventory outstanding that result in increasing savings and working
capital.
 Pay vendors on time and manage debtors effectively: Our payable
process should focus heavily on payment discipline. To make sure you
are not offering customers an excessively long window to pay for items,
which would lower your working capital, you may need to re-evaluate
your contracts and credit terms with debtors.
 There should be more number of Nandini milk parlours in Mysore city
and outside.
 Organisation should try to improve the packaging of the product to
prevent leakage.
 Organisation should try to adopt more and more new technology and
methods of production to survive in this competitive market.
 The company should provide some attractive schemes for the regular
consumers as well as retail sellers.
 MYMUL must adopt professionalism in its all-working departments.
 Facilities and benefits for Agents, Retailers should improve still better.
So that the turnover of the Retailers will be reduced and market shares
will be increased.

103
 It must guide the consumers regarding its product by giving various
Demonstration programmes.
 Online computer systems (website) have to be created by the
organisation.

104
6.3 Conclusions:

The goal of the study on working capital management at MYMUL was to

analyse the company's working capital management status using the accessible
public financial statements (annual reports) for the years 2017 through 2021.

Based on the analysis methodologies used, MYMUL's financial situation is

satisfactory when compared to industry norms and standards. According to the
study, the basic ratio and the company's operational cycle, as well as the period
during which debts are collected and when creditors are collected, were
primarily calculated. A methodical approach to managing working capital was
used, with all ratios being evaluated and a precise protocol being followed.

The turnover ratios for inventories, debtors, and creditors have all increased
during the past year. While the operating cycle has a direct impact, the
inventory-holding duration, debtors' and creditors' collection period have been
decreasing.

While considered from various financial perspectives, MYMUL's working

capital management appears to be in good shape, but the company still needs to
take proper care of it. The corporation is advised to exercise caution when
making additional investments in present assets because doing so would prevent
it from receiving future funds. If not, the funds could be advantageously used
for another useful purpose. Overall, the business is advancing with responsible
financial management procedures., the necessary focus, and adequate working
capital management, according to the conclusion.

105
BIBLIOGRAPHY:

Reference: Books, Magazines and document of MYMUL

Books

 Working capital management: Strategies and techniques by

Bhattacharya, Hrishikes.
 Working capital management: By Dr. Tanima dutta (LPU).
 Taxmann’s working capital: By Dr. R.P. Rustagi 2021 reprint .

Articles

(Barać and Muminović 2018)Alvarez, Thiago, Luca Sensini, and Maria

Vazquez. 2020. “Working Capital Management and Profitability:
Evidence from an Emergent Economy.” International Journal of Advances
in Management and Economics (February): 2278–3369.
www.managementjournal.info.
Aregbeyen, Omo. 2013. “The Effects of Working Capital Management on the
Profitability of Nigerian Manufacturing Firms.” Journal of Business
Economics and Management 14(3): 520–34.

Barać, Željana Aljinović, and Saša Muminović. 2018. “Working Capital

Management – Efficient Tool for Success of Milk Producers: True or
False?” New Medit 17(2): 61–72.
Benton, David. 2002. 16 Nursing Standard Financial Management Financial
Management.
Bhatia, Shikha, and Aman Srivastava. 2016. “Working Capital Management
and Firm Performance in Emerging Economies: Evidence from India.”
Management and Labour Studies 41(2): 71–87.

García-Teruel, Pedro Juan, and Pedro Martínez-Solano. 2007. “Effects of

Working Capital Management on SME Profitability.” International
Journal of Managerial Finance 3(2): 164–77.
Gill, Amarjit, Nahum Biger, Rajen Tibrewala, and Pradeep Prabhakar. 2016.
“The Impact of Merger on Working Capital Management Efficiency of
American Production Firms.” Corporate Ownership and Control 13(3):
100–110.
Pirttilä, M., V. M. Virolainen, L. Lind, and T. Kärri. 2020. “Working Capital
Management in the Russian Automotive Industry Supply Chain.”
International Journal of Production Economics 221.
Ramamoorthy, R., M. Sangeetha, and A. Kamal. 2019. “Working Capital
Management.” International Journal of Recent Technology and

106
 Engineering 8(2 Special Issue 8): 162–66.
Sharma, A. K., and Satish Kumar. 2011. “Effect of Working Capital
Management on Firm Profitability: Empirical Evidence from India.”
Global Business Review 12(1): 159–73.
Songling, Yang, Muhammad Ishtiaq, and Muhammad Anwar. 2018.
“Enterprise Risk Management Practices and Firm Performance, the
Mediating Role of Competitive Advantage and the Moderating Role of
Financial Literacy.” Journal of Risk and Financial Management 11(3): 35.

 WEBLIOGRAPHY

Mysoe Milk Union Ltd: About Us: https://www.MYMUL.coop

Milestone / Mysore Milk Union Ltd: https://ww.MYMUL.coop/milestones

107
ANNEXTURE :

MYSORE DISTRICT CO-OPERATIVE MILK PRODUCER SOCITIES UNION

LTD,

BANNUR, ALANAHALLI, MYSORE – 570028

BALANCE SHEET AS ON 31.03.2021 OF MYSORE DISTRICT

CAPITAL SCHED Amount Rs. PROPERTIES SCHE Amount Rs.

AND ULE AND DULE
31/03/21 31/03/21
LIABILITI ASSETS.
ES.

Share 1 112477800 Cash on hand 7 144728

capital.

Share 2 571382.15 Cash at bank 8 676647220

suspense.

Dep, and 3 1061255328.29 Investment. 9 244718093.40

other funds

Loans. 4 532189900 Fixed assets 10 1943107815.55

Grants and 5 1152388904.84 Current assets 11 164466189.57

subsidies.

Current 6 600089728.93 Loans, 12 20668723.83

liabilities advances &
deposits.

Profit and 16 53312739,6 Sundry 13 111325025.97

loss account debtors.

Audit 14 772159.77
objection.

Stock on hand 15 350435827.87

Total 3512285783.9 Total 3512285783.9

7 7

108
MYSORE DISTRICT CO-OPERATIVE MILK PRODUCER SOCITIES UNION
LTD.

BANNUR, ALANAHALLI, MYSORE – 570028

BALANCE SHEET AS ON 31.03.2020 OF MYSORE DISTRICT

CAPITAL SCHED Amount Rs. PROPERTIES SCHED Amount Rs.

AND ULE AND ASSETS ULE
31/03/20 31/03/20
LIABILITI
ES

Share 1 112477800 Cash on hand 7 144728

capital

Share 2 571382.15 Cash at bank 8 676647220

suspense

Dep, and 3 1061255328.29 Investment 9 244718093.40

other funds

Loans 4 532189900 Fixed assets 10 1943107815.55

Grants and 5 1152388904.84 Current assets 11 164466189.57

subsidies

Current 6 600089728.93 Loans, 12 20668723.83

liabilities advances &
deposits

Profit and 16 53312739.76 Sundry debtors 13 111325025.97

loss account

Audit 14 772159.77
objection

Stock on hand 15 350435827.87

Total 3512285783.97 Total 3512285783.97

109