Analysis of cash management at Kingfisher Minerals water supply - Free Essay Example

INTERNSHIP REPORT ON à ¢Ã¢â€š ¬Ã…“ANALYSIS OF CASH MANAGEMENT AT KINGFISHER MINARIALS WATER SUPPLY (TT MINARIALS)à ¢Ã¢â€š ¬Ã‚  BY GIRIDHAR M (USN 1OX13MBA24) Submitted to VISVESVARAYA TECHONOLOGICAL, UNIVERSITY, BELGAUM In partial fulfilment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Under the guidance of INTERNAL GUIDEEXTERNAL GUIDE HOD.JAMES THOMASMR.R NAJARAJ MBA DEPT TT MENARIALS THE OXFORD COLLEGE OF ENGINEERNING MBA PROGRAMME BANGALORE-560068 2014-2015 THE OXFORD COLLEGE OF ENGINEERNING Hosur Road, Bommanahalli, Bengaluru-560068 080-30219601/02,fax: 080-25730551,30219629 Website: www.theoxford.edu Email:[email  protected]/* */ (Approved by AICTE, new Delhi, accredited by NAAC, NBA, New Delhi Affiliated to VTU, Belgaum) CERTIFICATE This is certify that GIRIDHAR M bearing USN:10X13MBA24, is a bonafide student of master of Business Administration course of the institute (2013-2015), affiliated to Visvesvaraya Technological University, Belgaum. Internship report on à ¢Ã¢â€š ¬Ã…“A SYUDY ON CASH MANAGEMENTà ¢Ã¢â€š ¬Ã¢â€ž ¢Ãƒ ¢Ã¢â€š ¬Ã¢â€ž ¢ is prepared by him/her under the guidance of MR.JAMES THOMAS in partial fulfilment of the requirements for the award of the degree of Master of Business Administration of Visvesvaraya Technological University, Belgaum, Karnataka. Signature of Internal Guide Signature of HOD Signature of Principal ACKNOWLEDGEMENT I sincerely thank my project guide Mr.James Thomas for his valuable advice, support and guidance throughout this project. I wish to thank TT Minarials, for having permitted me to having undergo the Internship Training in their esteemed organization. I thank Mr.R Nagaraj of TT Minerals yalahanka for giving me the opportunity and guidance for the successful completion of this project. I also take this opportunity to thank Dr. R. Nagaraj, Principal of The Oxford College of Engineering and Dr.James Thomas, HOD (MBA dept.), for their support and co-operation and also I thank other faculty member. I also thank all my friends and family members who are directly and indirectly involved in bringing out project. Place: BangaloreGIRIDHAR M Date:(1OX13MBA24) Declaration I GIRIDHAR M hereby declare that internship report entitled à ¢Ã¢â€š ¬Ã…“A study on analysis of cash managementà ¢Ã¢â€š ¬Ã‚  with reference to à ¢Ã¢â€š ¬Ã…“TT MINARALSà ¢Ã¢â€š ¬Ã‚  prepared by me under the guidance of Mr James Thomas, HOD of MBA department, the oxford college of engineering and external assistance b y Mr R NAGARAJ I also declare that this internship work is towards the partial fulfilment of the university regulation for the award of degree of masters of business administration by visvesvaraya Technological university, Belgaum. I have undergone a summer project for a period of 10weeks. I further declare that this project is based on the original study undertaken by me and has not been submitted for the award of any degree or diploma from any other university or institution. Place: BangaloreGIRIDHAR M Date:(1OX13MBA24) TABLE OF CONTENTS CHAPTER CONTENTS PAGE NUMBER EXECUTIVE SUMMARY 1. CHAPTER à ¢Ã¢â€š ¬Ã¢â‚¬Å" 1 1.1 INTRODUCTION ABOUT THE INTERNSHIP 1-2 1.2 TOPIC CHOOSE FOR STUDY 1.3NEED FOR THE STUDY 3 1.4 OBJECTIVES OF THE STUDY 3 1.5 SCOPE OF THE STUDY 3 1.6 METHODOLOGY ADOPTED 4 1.7 LITERATURE REVIEW 5-6 1.8 LIMITATIONS OF THE STUDY 6 2. CHAPTER à ¢Ã¢â€š ¬Ã¢â‚¬Å" 2 2.1 INDUSTRY PROFILE 7-16 2.2 COMPANY PROFILE 17-19 2.3 AREA OF OPERATION 14-15 2.4 CUSTOMER PROFILE 15 2.6 EFFORTS AND OFFESETS, SUBISDIES, JOINT VENTURE 15 2.7 OWNERSHIP PATTERN 16 2.8 COMPETITORS INFORMATION 16 2.9 INFRASTRUCTURAL FACILITIES 17 2.10 ACHIVEMENT AWERDS 17 2.11 WORKFLOW MODEL 17-18 2.12VISION , MISSION CORE VALUES QUALITY POLICY AND OBJECTIVE 20 2.13 PRODUCTS / SERVICE PROFILE 21 2.14 FINANCIAL STATEMENT 24-35 3 CHAPTER 3 3.1 THEORETICAL BACKGROUND OF THE STUDY 35-45 4 CHAPTER 4 4.1 STATISTICAL TOOLS 45 4.2 DATA ANALYSIS AND INTERPRETATION 45-71 5 CHAPTER 5 5.1 SUMMARY AND FINDINGS 72 5.2 SUGGESTIONS/ RECOMMENDATIONS 73 5.3 CONCLUSIONS 74 5.4 LEARNING EXPERIENCE 75 ANNEXURE BIBILOGRAPHY WEEKLY REPORT LIST OF TABLES AND CHARTS SL.NO PART A PAGE NO 1 RATIOS ` Table 1.1 cash turnover ratio 43-44 Table 1.2 Basic defence internal ratio 44-45 Table 1.3 daily cash payment ratio 45-47 Table 1.4absolute liquid ratio 47-48 Table 1.5 cash to debt service ratio 49-50 Table 1.6 Ratio analysis for quick ratio 51-52 Table 1.7 Ratio analysis for inventory turnover ratio 53-54 Table 1.8 Ratio analysis for debtor turnover ratio 55-56 Table 1.9 Ratio analysis for debt collection period ratio 56-58 Table 1.10 Ratio analysis for working capital turnover ratio 59-61 Table 1.11Ratio analysis for current assets turnover ratio 62-63 Table 1.12 Ratio analysis for fixed assets turnover ratio 63-64 Table 1.13 Ratio analysis for cash to sales ratio 64-64 2 TREND ANALYSIS Table 1.14 Trend analysis for inventory 65 Table 1.15 Trend analysis for sunder debtors 66 Table 1.16 Trend analysis for cash and bank balance 67 Table 1.17 Trend analysis for loans and advances 68 Table 1.18 Trend analysis for current liabilities 69 Table 1.19 Trend analysis for provisions 70 ` GRAPHS 1 RATIOS Graph 2.1 cash turnover ratio 43-44 Graph 2.2 Basic defence internal ratio 44-45 Graph 2.3 daily cash payment ratio 45-47 Graph 2.4absolute liquid ratio 47-48 Graph 2.5 cash to debt service ratio 49-50 Graphs 2.6 Ratio analysis for working capital turnover ratio 51-52 Graphs 2.7 Ratio analysis for current assets turnover ratio 53-54 Graphs 2.8 Ratio analysis for fixed assets turnover ratio 55-56 Graphs 2.9 Ratio analysis for cash to sales ratio 56-58 2 TREND ANALYSIS Graphs 2.10 Trend analysis for inventory 65 Graphs 2. 11 Trend analysis for sunder debtors 66 Graphs 2.12 Trend analysis for cash and bank balance 67 Graphs 2.13 Trend analysis for loans and advances 68 Graphs 2.14 Trend analysis for current liabilities 69 Graphs 2.15 Trend analysis for provisions 70 EXECITIVE SUMMERY The project titled is à ¢Ã¢â€š ¬Ã…“cash managementà ¢Ã¢â€š ¬Ã¢â€ž ¢Ãƒ ¢Ã¢â€š ¬Ã¢â€ž ¢ in the company. The research has been undertaken at à ¢Ã¢â€š ¬Ã…“kingfisher minerals water supply (TT minerals)à ¢Ã¢â€š ¬Ã‚  at Bangalore. The project is related to the study of how company is managing its cash flow (cash inflows as well as cash outflow) and the study of liquidity and profitability position of the company. The project is about cash management in the company. The main objective is to study the last 4 years financial position of the company Focus on cash receivable To maintain cash flows between company and supplier Reduce the period of cash receivable This research is undertaken to provide suggestion to the above mentioned statements and major explanation for management relating to ensure the effective utilization of the cash of business. The research is descriptive in nature and studies the performance of the company as well as management of cash in the company. Data is collected through secondary sources and directly interaction with the administrative department. Mainly performance is analysed with the help of trend analysis and financial ratios, which includes liquidity ratios, current ratio, cash ratio etcà ¢Ã¢â€š ¬Ã‚ ¦ Here focus in on cash management through cash inflow and cash outflows and cash management of cash inflow and cash outflow. Cash inflow should be accelerated and cash outflows should be controlled. With this we can maintain cash in the company and maintain liquidity in the company. So company donà ¢Ã¢â€š ¬Ã¢â€ž ¢t need to browed money from other financial institute. With the use of the methods mentioned in this, we can manage the cash in the company by contorting cash outflow and accelerating the cash inflows. Through all methods company can get the faster payment from the dealer. Company can also make faster payment to suppliers to company can invest that cash into some other investment proposal. The various parts of the have been categorized under various heads including: executive summary, research methodology. Literature review, finding and analysis followed by recommendation made on the bases of the finding of the study. These sections are followed by a case study analysing the present situation of à ¢Ã¢â€š ¬Ã…“kingfisher minerals water supply (TT minerals)à ¢Ã¢â€š ¬Ã‚  CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 CHAPTER 5