05 Project Mohangggfdg

FUNDS FLOW STATEMENT
INTRODUCTION
The Funds flow statement is the changes in financial position are prepared to determine only the sources and uses of working capital between dates of two balance sheets. Working capital is defined as the difference between current assets and current liabilities. Working capital determines the liquidity position of the firm. As a historical analysis, the statement of changes in working capital reveals to management the way in which working capital was distained and used with the insight management can prepare the estimate of the working capital flows. A statement reporting the changes in working capital is useful in addition to the financial statements. A projected statement of changes in working capital is immensely useful in the firms long range planning management, for example, wants to anticipate the working capital flows in order to plan the repayment schedules, its long- term debt for a fast growth and expansion, a firm needs larger on long- term assets are also required to determine whether or not adequate working capital will be generated to meet the firms expansion, if not the firm can make arrangements in advance to procure funds from outside to meet its needs. The study will provide a use full model to the financial analysts and corporate planners to enable them to determine the effects of the various funds on the assets holding patterns. With the help of such a model, one can quantify the impacts of the change in employed capital on the fixed assets and working capital of a firm. In the study we want to test the statistical relation between the change in the components of working capital and the fixed assets of a company. Such a study may also be useful in investment and financing decisions. Funds flow statement is defined as the statement of changes in financial position, Prepare to determine only the sources and the uses of working capital between the dates of two balance sheets.
SOURCES OF FUNDS
Issue of additional share capital or debentures for cash
VCR INSTITUTE OF MANAGEMENT STUDIES,
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Borrowings made by the firm for a long term. Non operating incomes such as income from investment or profit from the sale of assets /investment
APPLICATION OF FUNDS
If there is business loss to the firm then this tantamount to decrease or use of funds The redemption of preference share capital or decrease during a year also utilize the funds Repayment of a long term loan during the year.
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INDUSTRY PROFILE
FRUIT PROCESSING INDUSTRY IN INDIA
India is the worlds largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. The total food production in India is likely to double in the next ten years and there is an opportunity for large investments in food and food processing technology skills and equipment, especially in the areas of canning dairy and food processing, specialist processing packing, frozen food refrigeration and thermo processing. Fruits and vegetables, fisheries, milk, and milk products, meet and poultry, packaged/convenience foods, alcoholic beverages and soft drinks and grains are important sub sectors of the food processing industry. Health food and health food supplements are another rapidly rising segment of this industry which is gaining vast popularity amongst the health conscious. India is one of the worlds major food producers but accounts for less than 1.5 percent of international food trade. This indicates vast Scope for both investors and exporters. Food exports in 1998 stood at US dollars 5.8 billion whereas the world total was US dollars 438 billions. The Indian food industries sales turnover is Rs 140,000 crore (1 crore=10 million) annually as at the start of year 2000. the industry has the highest number of plants approved by the US food and Drug Administrative (FDA) outside the USA. Indias food processing sector covers fruit and vegetables; meat and poulitry; milk and milk products alcoholic beverages, fisheries, plantation, grain processing and other consumer product groups like confectionery, chocolates and cocoa products, Soya-based products, mineral water, high protein foods etc. we cover an exhaustive database of an array of suppliers, manufacturers, explores and importers widely dealing in sectors like the food industry, Dairy industry, Indian beverage industry etc. we also cover sectors like dairy plants, canning, bottling plants, packaging industries, process machinery etc.
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The most promising sub-sectors includes includes-soft-drink bottling, Confectionery manufacture, Fishing, Aquaculture, Grain-based products, meat and poultry processing, Alcoholic beverages, milk processing, Tomato paste, Fast-food, Ready-to-eat break fast cereals, Food additives, flavors etc
FOOD PROCESSING MARKET IN INDIA IN 2007

India is one of worlds major food producers but accounts for less the 1.5 per cent of international food trade. This indicates vast scope for both investors and exporters. Food exporters in 1998 stood at US $5.8 billion whereas the world total was US $ 438 billion. The Indian food industrys sales turnover is Rs 140.000 crore ( 1 core=10 million) annually as at the start of year 2000. The industry requires about Rs 29.000 crore in investment over the next five years to 2005 to create necessary infrastructure, expand production facilities and state-of-the-art-technology to match the international quality and standards. The office of the Agricultural Affairs of the USDA/Foreign Agricultural Services in New Delhi says that one of Indias proudest accomplishments has been achieving a tenuous self-sufficiency in food production and that the country produces a wide variety of agricultural products at prices that ate at of below world values in most cases. The Indian palate is accustomed to traditional foods, mostly wheat and rice based, rather than potato and corn-based western palate. In marketing perspective, this is considered an important factor for foreign marketers. The USDA reports says initials consumer-ready food products may have to be tailored to include Indian spices and traditional ingredients. In addition to traditional tastes, there are other social factors which affect consumption in India. Hindus account for approximately 80 per cent of Indias population, and while only 25 or 30 per cent are strict vegetarians, beef slaughter is prohibited in all but two states (Kerala and Bengal) and consumption of other meats is limited. Incidentally, India is the only country where the US-base Mac Donalds sells its burgers without any beef content and offers purely vegetarian burgers.
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Indias middle class segment will hold the key to success or failure of the processed food market in India. Of the countrys total population of one billion, the middle class segments account for about 350-370 million. Though a majority of families in the segment have non-working housewives or can afford hired domestic help and thus prepare foods of their taste in their own kitchens, the profile of the middle class is changing steadily and hired domestic help is becoming costlier. This is conducive to an expansion in demand for read-to-eat Indian-style foods. Indias food processing sector covers fruit and vegetables, meat and poultry, milk and milk products, alcoholic beverages, fisheries, plantation, grain processing and other consumer product groups like confectionery, chocolates and cocoa products, Soya-based product, mineral water, high protein foods etc. According to latest official statistics, India exported processed fruits and vegetables worth Rs 5240 million in 1997-98. The horticulture production is around 102 million tones. Foreign investment since 1991, when economic liberalization started, stood at Rs 8.800 crore .Products that have growing demand, especially in the Middle East countries include pickles, chutneys, fruit pulps, canned fruits, and vegetables, concentrated pulps and juices, dehydrated vegetables and frozen fruits and vegetables. Another potential processed food product is meat and poultry products. India ranks first in world cattle population, 50 per cent of buffalo population and one-sixth of total goat population of the world. Buffalo meat is surplus in India. There is vast scope to set up modern slaughter facilities and cold store chains in meat and poultry processing sector. Indias current level of meat and meat-based exports is around Rs 8,000 million. In last six years foreign investment in this segment stood at Rs 5,000 million which is more than 50 per cent of the total investment made in this sector.
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Compared with meat, poultry industry has registered significant growth. Indian ranks fifth in the world with annual egg production of 1.61 million tones. Both poultry and egg processing units have come in a very big way in the country. India is exporting egg powder, frozen egg yolkl and albumin powder to Europe, Japan and other countries. Poultry exports are mostly and Oman. Indian poultry meat products have good markets in japan, Malaysia, Indonesia and Singapore. While meat products registerd a growth of 10 per cent, eggs and broilers registered 16-20 per cent growth.
There are about 15 pure line and grand parent franchise projects in India. There are 115 layer and 280 broiler hatcheries producing 1.3 million layer parents and 280 million broiler parents. They turn supply 95 million hybrid layer and 275 million broilers, day old chick. Presently there are only five egg powder plants in India which is considered insufficient in view of growing export demand for different kind of powder-whole egg, yolk and albumen. The scope of foreign investment and state-of- the-art technology in this field is therefore tremendous.
Milk and milk products is rated as one of the most promising sectors which deserves foreign investment in big way. When the world milk production registered a negative growth of 2 per cent, India performed much better with 4 per cent growth. The total milk production is around 72 million tones and the demand for milk is estimated at around 80 million tones.
By 2005, the value of the Indian dairy produce is expected to be Rs 1,000,000 million. In last six years foreign investment in this sector stood at Rs 3600 million which is about one-fourth of total investment made in this sector. Manufacture of casein and lactose, largely being imported presently, has good scope. Exports of milk products have been decimalized.
Grains could emerge as major export earner for India in coming years. Indias food grains production is now at around 225-230 million tones. These include
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rice, jawar, bajra, maize, wheat, gram and pulses. Indian basmati rice enjoys command in the international market. Besides growing Middle eat market for basmati rive, many other countries are showing interest for this food grains. In 1998-99 export of basmati and non-basmati rice stood at Rs 6200 million . There is a total rice milling capacity of 186 million tones in the country. Among plantation, tea emerged as major foreign exchange earner. India is the largest producer and exporter of black tea. However, the most worrying factor for Indian tea industry is that form early next year with the implementation of tea imports into the country, India tea may face a stiff competition within the country a swell, specially threat of Sri Lanka presence in the Indian market is looming large. The current years tea export prospect is not that good in terms of forex earnings because international prices have fallen significantly this year. An India export between 150-170 million kilograms of tea per annum. Of course, the scope of foreign investment in this sector stood at Rs 7000 million which about 70 percent of the total investment made so far. The IMFL (Indian Made Foreign Liquor) primarily comprises wine, vodka, gin, whisky, rum, and brandy. Draught beer is a comparatively recent introduction in the Indian market. The market beer market is estimated at Rs 7000 million a year. One of the major advantages for any investor eyeing the Indian liquor market is that India offers enough raw materials like molasses, barley, maize, potatoes, grapes, yeast and hops for the industry. Yet another catchy investment sector is fisheries. There is growing canned and processed fishes from India. The marine fish include prawn, shrimps,tuna, cuttlefish, squids, octopus, red snappers, ribbon fish mackerel, lobsters, cat fish etc. in last six years there was substantial investment is fisheries to the tune of 30,0000 million of which foreign investments were of the order of Rs 7000 million. The potential in the Exclusive Economic Zone of 3.9 million tones, catch is to tune of 2.87 million tones. Harvesting from inland sources is around 2.7 million tones.
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The biggest bottleneck in expanding the food processing sector, in terms of both investment and exports, is lack of adequate infrastructure.
Without a strong and dependable cold vital sector like food processing industry, which is, base mostly on perishable products cannot survive and grow. Even at current level of production, farm produce valued at Rs 70,000 million is being wasted every year only because there is no adequate storage, transportation, cold chain facilities and other infrastructure supports. Cold chain facilities are miserably inadequate to meet the increasing production of various perishable like milk, fruits, vegetables, poultry, fisheries etc.
Prevention of Food Adulteration laws is not only stringent one but time consuming also. It is considered as an archaic and no industry friendly food law. It substantial varies from Codex standard. Harmonization of multiple food laws is an urgent necessity.
Indian Food processing in the year of 2008

The Indian food processing market is one of the largest in terms of production, consumption, and export and import prospects. Since India is one of the major food producers worldwide, with new reforms, it presents exciting opportunities for commercial openings for a wide range of investors across the globe. RNCOS report, Indian Food Processing (2008), provides research and objective analysis on the Food processing Industry in India. This report helps clients to analyze the opportunities critical to the success of the food processing industry in India.
India Food Processing Industry

This section analyses the performance of the Indian food processing industry. Currently, processed food accounts for merely 2% of total food production in India, which is very low as compared to the western countries. Taking market forces such as rising income level an changing consumer behavior due to rapid economic growth into consideration, it is excepted to reach a growth rate of 10% in
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2010 & 25% in 2020. in food processing sector, dairy products (includes milk, Ethnic sweets etc) and packed food provides immense opportunities for investment.
Key Findings
Currently the Indian food processing industry is basically export oriented. Although domestic consumption of processed is low but it is fast picking up with rising income levels & changing consumer behavior due to economic growth. Indian processed food industry provides competitive advantages over other countries due to cheap workforce, government initiatives (tax holidays) & availability of raw materials. Existence of untapped large consumer base with rising income levels. Indian food processing level as compared to countries like USA, France & Malaysia continues to remain very low. However, with emerging positive market forces, it is all set to boom.
Food processing Industries in India as per July 2009

The Indian Food industry is estimated to be worth over US$ 200 million and according to the confederation of Indian industry (CII) is expected to grow to USS 310 billion by 2015. India is one of the worlds major food processing producers but accounts for less than 1.5 per cent of international food trade. This indicates vast scope for both investors and exporters. India is the worlds second largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. In this respect, the country is endowed with a large production base for a variety of raw materials covering food crops, commercial crops and fibers due to its varied agro-climate conditions. Also , India has the highest number of plants approved by the US Food and Drug Administrative FDA) outside the USA. Import sub sectors in food processing industries are:- Fruit & Vegetable Processing. Fish-processing, Milk processing, Meat & poultry processing, packaged/Convenience Foods, Alcoholic beverages processing etc.
& Soft drinks and gain
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Policy Initiatives
The Government has formulated and implemented several schemes to provide financial assistance for setting up and modernizing of food processing units, creation of infrastructure, support for research and development and human resource development in addition to other promotional measures to encourages the growth of the processed food sector. The center has permitted under the income Tax Act a deduction of 100 percent of profit for five years and 25 per cent of profit in the next years in case of new agro processing industries set up to package and preserve and vegetables. Excise Duty of 16 per cent on dairy machinery has been fully waived off and excise duty on meat, poultry and fish products has been reduced from 16 percent to 7 percent. Most of the processed food items have been exempted from the purview of licensing under the industries (Development and regulation) Act, 1951, expect items reserved for small-scale and alcoholic beverages. Food processing industries were included in the list of priority sector for bank lending in 1999. Automatic approval for foreign equity up to 100 per cent is available for most of the processed food items except alcohol, beer and those reserved for small scale sector subject to certain conditions. Complete exemption from duty to ready-to-eat packaged food. Reduction of excise duty on refrigerated motor vehicles form 16 percent to 8 percent, together with an exemption from customs duty. The government has also enacted the food Safely and standards Bill 2005 that seeks to create a regulatory body for the food-processing sector and set standards for manufacture and import of quality food. This law also brings together 13 food legislations under a common umbrella. As can be seen, the present scenario of processing India consists of few large national processor, many regional level Processors, and tiny sector level processors.
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In fact 90% of the processing industries are in small scale and cottage/home scale. There are 32 units in the organized sector with an installed capacity of 1,08,000 MTS per annum, representing 10% of the total installed capacity. The kind of situation should have normally led to development of linkages between them. However the linkages have not developed because the setting processing infrastructure is not complementing to each other and in most of the cases they are similar in nature albeit with lower capacities and lower capacities and lower end technology. Thus there is excess capacity and many sick units and very low capacity utilization while the total quantity out of the present production processed remains low and less than 10%.
COMPANY PROFILE
INTRODUCTION
Varma, a professionally managed multinational public limited
company,Incorporated in 1971 is a leading internationally reputed manufacturers and exporters of fruit pulp and concentrates in canned and aseptic packing frozen pulp and vegetables, fruit powders etc. The company enjoys a lions share of the fruit pulp and concentrate world market.
HISTORY OF FOOD AND INNS Ltd.

The division combines people with vast experience in agric-trading with the VARMA INTERNATIONAL (P) Ltd Groups credibility to justify its premier standing in the trading arena. The division was set up in 1967 and since then has handled a wide range of products - such as Sesame Seeds, Processed Fruits, Food grains, Aqua etc. VARMA INTERNATIONAL (P) Ltd began its fruit processing operations in early 70s.However fruit processing operations have been given a special thrust since the last season with an emphasis on developing strategic partnerships across the value chain especially fruit procurement and processing. VARMA INTERNATIONAL (P) Ltd has established it's presence as a reliable and competitive exporter to Coca Cola, USA, Western Europe, Far East, Middle East etc.
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BACKGROUND OF VARMA INTERNATIONAL (P) Ltd

Situated at Chittoor in Andhra Pradesh, the mango belt in India, VARMA INTERNATIONAL (P) Ltd (VIL) is a 100% Export Oriented Unit (EOU) processing Tropical Fruit Purees, Concentrates and Fresh Fruits VARMA INTERNATIONAL (P) Ltd was started keeping in mind the local farming community wealth. The farming community is an integral part and forms the backbone of the organization. In its effort to be a forerunner in the chosen areas of business in terms of best practices in quality and technology, VIL plans to benefit armors, the industry and the nation in a phased manner. VARMA INTERNATIONAL (P) Ltd believes in empowering farmers by providing technical assistance from research institutes in the food industry to support the farmers in achieving better quality and higher yields by developing the gardening and harvesting techniques. Further to educating farmers with latest horticultural techniques, VARMA INTERNATIONAL (P) Ltd is encouraging farmers to mobilize the fruits directly to the factory, thereby minimizing the fruit handling damages and high value realizations. The first phase has been completed, by setting up of state-ofthe-art fruit processing plant to produce natural tropical fruit puree and concentrates.
PROMOTERS BACKGROUND
Mr. Utsav Dhupelia
, a Chartered Accountant from U.K., looking after the
routine affairs of the company, is the brain and brawl for taking the companys turnover from Rs.5 crores (USD1.1 MIO) to Rs.70 Crores (USD 16 MIO) giving the status of government recognized EXPORT HOUSE. With the back up of technical and managerial support staff, the state of art technology implementation, innovative R & D and Lab facilities, the doyen guidance of Mr.Utsav coupled with the contribution of other directors, the company is poised for a steady and continuous growth graph moving upwards in all Para meters.
ACHEIVEMENTS
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Company for the first time in India commissioned Skid Mounted Modular Microprocessor Controlled Aseptic Plant, which was developed in Europe in year 2000. The plant is Highly Energy, and cost effective The success of the first plant encouraged us to commission the two more Aseptic plants in the following years. The capacities of both the plants are overlooked during the season. The company made record production of 17000 M.T of Mango products in 3 Months (1000 FCLs) which is the highest ever achieved in the around 32%.
RAW MATERIAL SOURCING

VARMA INTERNATIONAL (P) Ltd sources its raw materials from the best growing areas of the products in India. These areas such as Chittoor, Cudappah, Nashik, Valsad, Ratnagiri, Vijayawada etc are known around the world for their good raw material quality produce. VARMA INTERNATIONAL (P) Ltd has also strategically located its
production areas, in and around the growing areas so that the best pick of the season can be used for manufacturing our products. For more information, please refer the map below. The interactive map allows you to identify the growing areas by the moving the cursor over the product name.
Market Presence European Union United States of America Canada Australia Middle East including Iran & North Africa Japan & South Korea
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Export Market
The company manufactures and exports mango pulp, guava pulp, papaya products, canned vegetable and also exports frozen pulp vegetables. The company has than 50% share of mango product imports into UK, Holland, Germany, France and japan. These are very desirable markets because the imports are some of the largest Companies in the world in Fruit and Dairly business. For eg. Our key group (Largest fruit juice Company in Europe), Freisland group (largest and the fastest growing dairy and Bakery Product Company in Europe) Boirron (Largest Ice-Cream manufacturing Company in France) Rubicon (Largest Tropical Juice Company in UK), Sumitomo, Mitsui and O will in japan.
Domestic Market
In the previous year the company is made contract 3000 MT of mango pulp supply coke. In the current year also the same contract will continue with additional volume. The company also manufactures Egg Powder Tomato Powder, Caramel Powder, orange Powder and other fruit powders. The major customers are MNCs like Nestle, Britiania, CPC, Glaxo, Heinz and reputed Indian Companies like Parle, Dabur etc. Primary Focus Company philosophy incorporates and uncompromising commitment to quality, while emphasizing continuous innovation and strong service orientation. Process monitoring and control is per Good manufacturing Practices (GMP) and meets not only client specification but also food safety requirements, while packaging standards.
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Commitment to environment
The Company is committed to being eco-friendly and the fist one to start processed fruit export division Contract cultivation using chemical free fertilizer and pesticide is encourage, while bio-degradable materials are used wherever possible and plant waste is recycled.
BANKING FACILITIES
The consortium is made up of Andhra Bank (lead bank), State Bank of India, Bank of Maharashtre and Export Import Bank of India. Apart form availing working capital consisting of Per-shipment and Post-shipment limit the company also availed Term Loan form SBI, Bank of Maharashtre and EXIM for capital expenditure. Major portion of credit facilities is in Foreign Currency.
FUTURE PLANS
Development of the Indian market for foods and inns. Thrust of exports. Expansion in 4th Aspectic manufacturing capacity. Use of IT as a tool to further Business goals. Setting up of a Central R&D lab. Backward integration form improved quality of raw materials using contracti farming/organic cultivation.
CUTTING EDGE TECHNOLOGY

VARMA INTERNATIONAL (P) Ltd plant is equipped with state-of-the-art fruit puree processing aseptic filling line of SIG- Mizzen, Italy to produce natural fruit pulps & concentrates. The plant has one of the India's single largest fruit processing lines -10 TPH ripen fruit processing with Aseptic Packaging.
INITIATIVES SPAN THE FOLLOWING DISCIPLINES

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PLC operated equipments for better control over monitoring and operations with supervisory units. Two stage washing of fruits to ensure HACCP quality requirement. Two-stage sterilization to retain the natural flavor and aroma. High speed advanced Mono block aseptic filling machine supplied by SIG Mizzen. Integrated Enterprise Resources Planning system is in place to automate business processes and provide data for analysis and reporting, allowing a closer control on quality and operations.
EFFICIENT PLANT LAYOUT

Minimal drop in power and steam transfer. Straight-line process flow design to maintain the hygiene and control in respective areas. Special food grade self-leveling epoxy flooring to maintain optimum hygienic conditions. Curved corners and food grade epoxy painted walls to avoid dust accumulation and to facilitate easy washing. Advanced high raise insulated roofing with double layer GI Sheeting with air extractors to maintain temperature inside the plant.
VALUABLE INDUSTRIAL EXPERTISE

VARMA INTERNATIONAL (P) Ltd is backed with strong support and service from its team of highly qualified technical personnel and domain experts with perceptive knowledge and skill. Powered by priceless hands-on experience these professionals are upgrading themselves continuously to identify and introduce improved and innovative product offerings that would delight customers worldwide and comply with the leading global quality standards.
PUREE & CONCENTRATE FACILITY
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The fruit processing aseptic line is from SIG-Mazzini of Italy. The line has a capacity to process 10 metric tones per hour ripened fruits. The processing line is fully integrated and controlled by PLC.
PACK HOUSE
VARMA INTERNATIONAL (P) Ltd has a set up a Fresh fruit and Vegetable processing facility from Grief, Spain. Fresh fruits including mangoes, bananas are processed along with tropical vegetables like Okra, Egg plant, Lemon, Bitter gourd etc. The facility also holds ripening chambers, pre cooling chambers and cold storage to handle fresh fruits and vegetables.
VAPOUR HEAT TREATMENT

To enable Fresh Mango exports to countries like Japan and Korea, VARMA INTERNATIONAL (P) Ltd has commissioned the VHT facility. This ensures irradiation of the fruit flies in the fresh fruit. VARMA INTERNATIONAL (P) Ltd is the first private organization to set up this facility in the country.
WATER MANAGEMENT
Water is an essential & precious natural resource. It is a natures gift. Without water there is no life on the earth. It is as important to the fruit processing industry as to the living being. But, water is becoming scarce year by year due to increase n its consumption in industries & agriculture sectors & indiscriminate use /wastage by Human beings, therefore, it needs a integrated& scientific approach for its management to use it so that undesirable wastage is avoided which helps us to save water for right utilization.
STAGE OF USE OF WATER TO THE BEST EFFECT IN OUR FACTORY

Our main source of water is bore wells. The water is potable. Water from all bore wells is collected in a sump. From there it is pumped to overhead tank to supply to
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various locations of use. To manage appropriately & conserve the water, we are taking following steps at various locations of its use FRUIT WASHING The water is re-circulated after filtration up to it becomes dirty. This water is chl0rinated to control the contamination by continuous dosing of chlorine in the washing tub. STEAM GENERATION Water for boiler feeding is treated in water softener to reduce the hardness. The steam condensate of evaporator is recycled to boiler to save water & energy as condensate will have high temperature.
THE BEST EFFECT IN OUR FACTORY

Steam condensate from other heating equipments & Vapors condensate from pulp concentration is collected in a tank to use in crate & floor cleaning. Floor & equipments are cleaned by compressed water jet to conserve the water. Treated effluent is used for civil construction & gardening. Flow meters are installed at location of major use to have control over water utilization. UV sterilizer is installed on main line of water, which feed to processing to sanitize the water. The water to be used for blending in product is treated in r o plant. Drinking water is passed through zero-b filter.
WASTE MANAGEMENT
Our factory is equipped with aerobic effluent treatment plant of 250 kl capacity. Effluent from all locations of water use is collected through inter connected drains in ET plant. It is aerated here & transferred to settlement tank for sedimentation of solid particles. The treated effluent is sent to oxidation pond. From pond, water is used for gardening & civil construction. The sludge is transferred to
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drying bed. The dried sludge is used as manure in our garden. The main feature of our company is that no effluent treated or untreated is released in public drains & therefore, does not pose any danger to surrounding environment & public.
SOLID WASTE MANAGEMENT

Seeds of fruits Stem ends & skin/peel of fruits & vegetables Pumice-consists of fibbers & embedded pulp. Spoiled fruits & vegetables The seeds & peels of good fruits are passed second time through a pulped to remove the remaining pulpy portion. The pulp extracted so & pumice are mixed & given an enzymatic treatment & centrifuge to remove the extraneous materials so that pulp can be used for making concentrate. This helps in improving the recovery out of fruits.
CERTIFICATIONS OF INTERNATIONAL QUALITY STANDARDS

FIL's quality and business objectives are designed to challenge the organization through continual improvement and a zeal for results. At FIL quality determines not only the end product but processes and operations at all levels. The company's laboratory is equipped with the latest testing facilities to perform all necessary tests. Frequent & stringent quality checks are carried out for Physical, Chemical, Organoleptic & Microbial parameters and immediate corrective measures are carried out on detection of variance in parameters, assuring a high quality end product. As a mandatory procedure, all finished products are analyzed with extreme care before clearance by FIL's quality assurance staff.
OUR CERTIFICATIONS INCLUDE

Haccp (food safety certification) by tuv, germany iso 9001:2000 (quality management system) by tuv, germany kosher by star-k, usa
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sure global fair (sgf) halal certification
MANGO PULP INDUSTRY HOPES

Mango pulp production to reach 75,000 tones by 2010 Mango is raised in 36,000 hectares in Krishna Giri district Mango pulp processed annually is 50,000 tones Farmers have to go to Bangalore, as there is no testing facility in Krishnagiri Farmers are not getting fair price, even if there is a rise in prices in global market
CUSTOMER FOCUS
Loyalty and a strong relationship in business are built out of years of experience in a particular industry. VARMA INTERNATIONAL (P) Ltd expertise in the business and its contacts with Agents\Brokers, Blender-bottlers, End User, Offshore logistical service providers has made the supply chain process extremely competitive. Given our renewed emphasis on this product line we are strengthening relationships in key markets across the buyer spectrum, understanding unique requirements and delivering value to select global customers.
PRODUCT PROFILE
Aseptic o Mango Purees and Concentrates Alphonso Mango Puree Totapuri Mango Concentrate Totapuri Mango Puree Kesar Mango Puree Raspuri Mango Puree Chittoor
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White Guava Puree and Concentrates White Guava Puree White Guava Concentrate
Pink Guava Puree Red papaya Puree and Concentrate Papaya Puree(Red, Natural) Papaya Concentrate(Red , Natural) Canning Fruits Purees And Slices Alphonso Mango Puree Alphonso Mango Slices in Brine Sweetened Alphonso Mango Puree Totapuri mango Puree Kesar Mango puree Sweetened Kesar mango Puree Raspuri Mango Puree
Vegetables in Brine Pickles And Chutneys Curried Patra Frozen Fruits Natural Alphonso Mango Pulp/Puree Natural Alphonso Mang Slices Natural Totapuri Mango Pulp/Puree Sweetened Totapuri mango Pulp/Puree Natural White Guava Pulp/Puree Sweetened Guava Pulp/Puree
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Purees and Chincks Natural Alphonso Mango Chunks Natural Alphonso Totapuri Chunks Vegetables Parwar Tinda Turia (Ridge Guard) Methi Aubergine (Brinjal) Valpapdi Drumstrick Tindora (Ivy Guard) Tuvar Liva Dudhi (Bottle Guard0 Okra (Bhindi) Papadi Liva (Liva Beans) Karela (Bitter Guard) Guar
Snacks & Chutneys Punjab Samosa Peas & Panner Samosa Mixed Vegetable Samosa Tomato Chutney Coriander Chutney
SCOPE OF THE STUDY

The main purpose of the study was to analyze the effectiveness of flow of funds in VARMA INTERNATIONAL (P) Ltd
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The prevalent educational system providing the placement training at an industry being a part of the curriculum has helped in comparison of theoretical knowledge with practical system. It has led to note the convergences and divergence between theory and practice. The study enables us to have access to various facts of the organization. It helps in understanding the needs, importance and advantage of funds in the organization. The study also helps to exposure our minds to the integrated funds flow management, the various procedures, methods and technique adopted by the organization. The study provides knowledge about how the theoretical aspects are put in the organization. Hence, the study enables us to get a practical experience of what we study theoretically in the books and class room, lecture.
NEED OF THE STUDY
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To know the financial stability and efficiency of financial policies of the management. To know where the profits are gone. To know how much funds are gathered through normal business process. To know what are the sources through which liabilities will be repaid. To know how management is going to utilize the funds on the basis of funds flow statement. To know the sources from which the company has obtained its funds. To know the factors which results in change in working capital.
IMPORTANCE OF THE STUDY

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The project work is carried out by me in VARMA INTERNATIONAL ,The aim of project is to analyze the funds flow analysis of the company For a better understanding of the enterprise it is essential to identify movement of funds during the year and their consequent effect on its financial position. This information is made available in the statement of change in financial position. The funds flow statement provides an analysis of changes in the firms working capital position. Funds flow statement is also known as statement of sources and application of funds or management of funds statement
OBJECTIVES OF THE STUDY

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The primary objective of the study is to evaluate the financial position of VARMA INTERNATIONAL . To asses the present profitability and operating efficiency of VARMA INTERNATIONAL as a whole as well as for it different departments. To find out relative importance of different components of the financial position of the firm through funds flow analysis. To identify the reasons for change in the profitability financial position of the firm. To asses how effectively the company is using its resources. To offer suggestions for improvement in relevant aspects. To make overall view on the theoretical approach of funds flow analysis.
LIMITATIONS OF THE STUDY

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The study is based on the past five annual reports of the REGENCY CERAMICS LTD. The study mainly has been carried out based on the secondary data i.e., financial statements. The time given to complete this project is very limited. The funds flow are generally calculated from the post financial statement and as show they are not the indications of future. The Analysis is made from the information given by an organization.
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REVIEW OF LITERATURE
FUNDS FLOW STATEMENT INTRODUCTION
The basic financial statement i.e., the balance sheet and profit and loss account (or) income statement of business, reveal the net effect of the various transaction on the operational and financial position of the assets and liabilities of an undertaking at particular point of time. It reveals the financial status of the company. The assets side of a balance sheet shows of the deployment of resources of an undertaking while the liabilities side indicates its obligation i.e., the manner in which these resources were obtained. The profit and loss account reflects the results of the business operations for a period of time. It contains a summary of expenses incurred and the revenues realized in a accounting per od. Both these statement provide the essential basic information on the financial activities of a business. The balance sheet give a static view of the resources (liabilities) of a business and uses (assets) to which these resources have been but at a certain point of time. It does not disclose the cause for changes in the assets and liabilities between two different points of time. The profit and loss account, in a general way, indicates the resources provided by operations. But there are many transactions that take place in an undertaking and which do not operate through profit and loss account. Thus another statement has to prepare to show the change in the assets and liabilities from the end of one period of time to the end of another period of time. The statement is called a statement of changes in financial position or a funds flow statements. The funds flow statement in a statement which shows the movement of funds and a report of the financial operations of the business undertakings. It indicates various cans by which funds were obtained during a particular period and the way to which these funds were employed. In simple words. It is a statement of sources and applications funds.
MEANING AND CONCEPT OF FUNDS:

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The term Funds has variety of meanings. There are people who take it synonyms to cash and to them there is no difference between a Funds Flow statement and cash flow statement. While others include marketable securities besides cash in the definition of the term funds. The term funds has been defined in a number of ways. a) In a narrow sense, it means cash only and a funds flow statement prepared on this basic is called a cash flow statement such a statement enumerates net effects of various business transactions in cash and takes into account receipts and disbursements of cash. b) In a broader sense the term funds refers to money values in whatever form it may exist. Here funds means all financial resources used in business whether in the form of men, material , money, machinery and other. c) In a popular sense the term funds means working capital i.e., the excess of current assets over current liabilities, the working capital concept of funds has emerged due to the fact that total resources of business are invested partly in fixed assets in the form of fixed capital and partly kept inform of liquid or hear liquid form as working capital. The statement can be classified into four: 1. Income statement 2. Funds Flow Statement 3. Statement of changes in financial position 4. Cash Flow statement. 1. Income Statement: As already indicated in an earlier chapter then an income statement measure the inflow of assets resulting from rending of gods or services customers over a period of time. 2. Funds Flow Statement:
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The statement measures the inflows and the out flows of working Capitals that results from any type of business activity. 3. Statement of changes in financial position: This statement has wider meaning than Funds Flow statement. It measures changes both in Working Capital and non-Working Capital. 4. Cash Flow statement: The statement measures in flows and the out flows of cash on account of any type of business activity. MEANING AND CONCEPT OF FLOW OF FUNDS: The term flow means movement and includes both inflow and outflow the term flow of funds means transfer of economic values from one assets of equity to another flow of funds is said to have taken place when any transaction makes changes in the amount of funds available before happening of the transaction. If the effect of transaction results in the increase of funds. It is called a source of funds and if it results in the decrease of funds, it is known as an application of funds. Further, in case the transaction does not change funds. It is said to have not resulted in the flow of funds. According to the working capital concept of funds, the term flow of funds refers to the movement of funds in the working capital. If any transaction results in the increase in working capital it is said to be a source or inflow of funds and it results in decrease of working capital, it is said to be an application or outflow funds. In simple language funds move when a transaction affects. 1. 2. 3. 4. A current assets and a fixed assets, or A fixed and a current liability. A current assets and a fixed liability. A fixed liability and current liability.
And funds do not move when the transaction affects fixed assets and fixed liability or current assets and current liabilities. Kenneth medley and Ronald Gibers define the
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term funds as one used in the sense of spending power, it refers to the value embedded in assets. According to Bonneville and Dewey funds constitute the prime importance in sharing and operating any business enterprise. In the ordinary parlance. Funds mean cash only, but it has got several different concepts as mentioned below. Funds may mean: a. Cash only b. Net working capital i.e., current assets less current liabilities. c. Total resources or total funds. d. Internal resources only. e. Net worth i.e., owners equity capital plus reserves.
WORKING CAPITAL:
There are 2 concepts in Working Capital Gross Working Capital Net Working Capital
Gross Working Capital refers to the firms investment in current assts while the term net Working Capital means excess of current assets over current liabilities i.e., Gross Working Capital = Total Current Assets Net Working Capital = Current Assets Current Liabilities.
CURRENT AND NON-CURRENT ACCOUNTS:

To understand flow of funds it is essential to classify various accounts and balance sheet items current and non-current categories. Current accounts can either be current assets or current liabilities. Non current accounts can either be non-current assets or non-current liabilities.
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Current Assets: Current assets are those assets which in the ordinary course of business can be or will be converted into cash with in a short period of normally one accounting year. Definition according of Glady: For accounting purpose , the term Current Assets is used to designate cash and other assets or resources commonly identified as those which are reasonable expected to be realized in cash or sold or consumed during the normal operating cycle of the business. The Current Assets are: Cash including fixed deposit with banks. Accounts receivable. 1) Trade Debtors 2) Bills Receivable. Inventory. 1) Raw material 2) Work in Progress. 3) Finished Goods. 4) Stores and spare parts. Advances recoverable i.e., the advances given to supplier of goods and services or deposit with government or other public authorities. Prepaid expenses. Current liabilities are those liabilities which are intended to be paid in the ordinary course of business within a short period of normally one accounting year out of the current assets or the income of the business. Current liabilities are
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Accounts payable i.e. Bills payable Creditors
Outstanding expenses i.e., expenses for which services have been received by the business but for which the payment has not been made. Bank Overdraft Short term loans i.e., Loans from Banks. Advanced payments received by the business for the service to be rendered or goods to be supplied in future. Current maturities of long-term i.e., long-term debts due within a year of the balance sheet date.
Non- Current Assets:

All assets other than current assets come within the category of non-current assets. Such assets including Goodwill Land &Building Machinery Furniture Long-term investments Payments rights Non Current Liabilities: All liabilities other than current liabilities come within the category of Noncurrent assets. General reserves. Dividend equalization Debentures sinking fund Capital redemption reserve.
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FUND FLOW ANALYSIS

The purpose of measuring trading performance, operational efficiency, profitability and financial position of a concern revealed by trading Profit and loss Account and balance Sheet. These financial statements are prepared to find out the Gross profit or Gross Loss, Net profit or Net Loss and financial soundness of a firm as a whole for a particular period of time. From the management point view, the usefulness of informations provided by these income statements functions effectively and efficiently. In the true sense they do not disclose the nature of all transactions. Management, creditors and investors etc. want to determine or evaluating the sources and application of funds employed by the firm for the future course of action. Based on these backgrounds, it is essential to analyze the movement of assets, liabilities, funds from operations and capital between the components of two years financial statements. The analysis of financial statements helps to the managements by providing additional information in a meaningful manner.
MEANING OF FUND
The term Fund refers to cash, to cash Equivalents or to working capital and all financial resources which are used in business. In a broader meaning the word Fund refers to working capital. The working capital indicates the difference between current assets and current liabilities. The term working capital may be: 1. Gross Working Capital and 2. Net Working Capital Gross Working Capital represents total all current Assets. Net Working Capital refers to excess of current Assets over Current Liabilities. In a narrow sense the world Fund denotes cash or to cash equivalents.
MEANING OF FLOW OF FUNDS

The term Flow of Funds refers to changes or movement of funds or changes in the working capital in the normal course of business transactions takes place. The change in working capital may be in the form of inflow of working capital or outflow of working capital.The following chart shows the movement of funds:
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MOVEMENT OF FUNDS
Inflow Funds
Firm Business Transaction
Outflow Funds
The following chart explains the flow of funds when transaction involves between current and non-current.
FLOW OF FUNDS CHART

Transaction involves between Current Assets And Non-Current Assets Current Assets And Non-Current Liabilities Current Liabilities And Non-Current Assets Current Liabilities And COMPONENTS OF FLOW OF FUNDS Non-Current Liabilities In order to analyses the sources and application of funds, it is essential to know the meaning and components of flow of funds given below: 1. Current Assets 2. Non-current Assets (Fixed or Permanent Assets) 3. Current Liabilities 4. Non-Current Liabilities (Capital & Long Term Liabilities ) 5. Provision for Tax 6. Proposed Dividend. Flow of Funds (Inflow or Outflow of Funds)
CURRENT ACCOUNTS Current Liabilities

1) 2) Bills Payable Sundry Creditors
Current Assets
1) 2) Cash in hand Cash at Bank
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3) 4) 5) 6) 7) 8) (May Outstanding Expenses Dividends Payable Bank Overdraft Short Term Loans Provisions against Current Assets Provision Dividend be Current or Non-Current 3) 4) 5) 6) 7) 8) 9) Bills Receivable Sundry Debtors Short Term Investments Marketable Securities Stock of Raw Materials. Work Prepaid Expenses Accrued Incomes
in Progress & Finished Goods
Liabilities)
NON-CURRENT ACCOUNTS
Non-Current or Permanent Liabilities 1) Equity Share Capital 2) 3) 4) 5) 6) 7) 8) 9) Preference Share Capital Debentures Long Term Loans Share Premium Share Forfeited Profit and Loss Account Capital Reserve Capital Redemption Reserve Non-Current or Permanent Assets 1) Good will 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) Land Building Plant and Machinery Furniture and Fittings Trade Marks Patent Rights Long Term Investments Discount on Issue of Shares and Preliminary Expenses Other Deferred Expenses
Debentures
IMPORTANCE OF FUNDS FLOW STATEMENT

Fund Flow Statement is prepared for financial analysis in order to meet the needs of people serving the following purposes. 1. It highlights the different sources and application or uses of funds between the two accounting period. 2. It brings into light about financial strength and weakness of a concern. 3. It acts as a effective tool to measure the cases of changes in working capital. 4. It helps to the management to take corrective actions while deviations between tow balance sheet figures.
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5. It is an instrument used by the investors for effective decisions at the time of their investment proposals. 6. It also presents detailed informations about profitability, operational efficiency and financial affairs of concern. 7. It serves as a guide to the management to formulate its dividend policy, Retention policy and investment policy etc. 8. It helps to evaluate the financial consequences of business transactions involves in operational financial and investment. 9. It gives the detailed explanation about movement of funds form different sources or uses of funds during a particular accounting period.
LIMITATIONS OF FUNDS FLOW STATEMENT

Fund Flow Statement has suffered with the following limitations: 1. It is prepared on the basis of information related to historical in nature. It ignores to project future operations. 2. This statement does not focus on transactions involves in non-fund items. 3. It is also ignores when transactions involves between current accounts or noncurrent accounts. 4. It does not provide any additional informations to the management because financial statements are simply rearranged and presented.
PREPARATION OF FUNDS FLOW STATEMENT

Fund flow analysis involves the following important three statements such as : i. Fund from operations ii. Statement of changes in working capital iii. Fund flow statement b. Fund flow Operations: Fund from operation is to be determined on the basis of profit and loss account. The operating profit and loss Account. The operating profit revealed by profit and loss Account is represent the excess of sales revenue over cost of goods sold. CALCULATION OF FUND FROM OPERATIONS:
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Fund from operations is calculated with help of following adjustments are to be made. The adjustments may be shown in the specimen proforma of profit and loss account is given below:
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PROFORMA OF PROFIT AND LOSS ACCOUNT

Alternative specimen format: the following is the specimen of adjusted P/L A/C. Particulars Particulars Amount Particulars Amount Amount Rs. Amount R s.Rs. By Opening balance of P & L
***
R s. To Depreciation on Fixed Net profit or retained Earnings assets A/c (closing balance of p & L A/c as given Tothe loss on Sale By Profit on sale of Fixed in Balance sheet)of Fixed Add: Non-Fund and Non-operating items which have already Assets Assets been debited to p & L A/c: To Loss on Sale investments By Excess provision *** written 1) Deprecation and Depletion 2) Amortization Fictions and Intangible To Good will Writtenof off backAssets etc. (a) Good will, patents written off To shares written By Dividend received on (b) Discount on Discount on Issue of shares written off (c) Preliminary Expenses written off off investment (d) Premium on red emption of debenture To Transfer to reserveof Retained Earnings:By Revaluation of fixed assets 3) Appropriation *** Profit transfer to General Reserve To preliminary expenses By Fund From Operations Profit transfer to Sinking Fund *** written off (Balancing Figure) Profit transfer to Contingency Provision for for Taxation To Provision Tax (not taken as current liability) Provision for Proposed Dividend To proposed Dividend (not taken as current liability) Loss on sale of Fixed Assets To Closing balance of P&L Loss on sale of Plant and machinery A/c on sales of land Building Loss *** Loss of sale of Furniture and Fixtures Total (A) Less: Non-Fund and Nom-operating items which have Already been credited to P & L A/c: (1) Profit on sale of Fixed Assets Profit on sale of land & Building Profit on sale of Plant & machinery Profit on sale of Furniture & Fixtures (2) Appreciation or Revaluation of fixed assets (3) Dividend received on investment (4) Profit on redemption of Shares and Debentures (5) Excess provisions written back (6) Any other non trading items already Credited to P & L A/c (7) Net Profit or Retained Earnings (Opening balance of p & L A/c) Total (B) Fund From Operations (Total A-B)
***
*** ***
*** ***
*** *** *** *** *** *** *** *** ***
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STATEMENT OF CHANGES IN WORKING CAPITAL INTRODUCTION

In order to maintain from operations, every firm needs certain amount of current assets. For example, funds required either to pay for expenses or to meet obligations for service received or goods purchased etc by a firm. These funds are known as working capital. Working capital is also known Circulating Capital, Fluctuating Capital and Revolving Capital.
DEFINITION
Working capital is defined as the excess of current assets over current liabilities and provisions. According to shubin working capital is the amount of funds necessary for the cost of operating the enterprise. NEED FOR WORKING CAPITAL Working capital is significant because of: 1. adequate working capital is required to continue uninterrupted business operations 2. It is essential to run the day business activities 3. Greater volume of working capital required to invest in current assets for the success of sales activities 4. To ensure the maximizing the wealth of the firm 5. To enable to increase the rate of return on enterprise 6. To meet the short-term obligations of a business enterprise 7. To increase the operational efficiency of a firm 8. To utilize the maximum available resources 9. To earn considerable profits
Types of working capital

The working capital admits the following broad classifications: 1. Gross Working capital 2. Net Working Capital 3. Positive net working capital
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4. Negative net working capital 5. Permanent working capital 6. Temporary working capital 7. Balance sheet working capital 8. Cash working capital
Reasons for changes in working capital:

The changes in the level of working capital occur for the following reasons: 1. Changes in the level of sales activities. 2. Changes in the level of operating expenses. 3. Policy changes initiated by management. 4. Technological changes. 5. Cyclical changes in the economy. 6. Changes in operating cycle. 7. Source of change is seasonality in sales activity. 8. Changes in the fixing the level of inventory and receivables.
Determinents of working capital

The total working capital requirement is determined by a variety of factors. It should be, however, noted that these factors affect different enterprises differently. The following is the description of the factors which generally influence the working capital requirements of the firms. A. Internal factors: B. Nature of Enterprise. C. Size of Business. D. Manufacturing Cycle. E. Firms Credit policy. F. Access to Money Market. G. Expansion and Growth of Business. H. Profit Margin and Dividend Policy.
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I. Depreciation policy. J. Operating Efficiency of Firm. K. External factors: 1. Business Cycle Fluctuations 2. Technological Development. 3. Seasonal Fluctuations. 4. Environment Factor. 5. Taxation policy.
WORKING CAPITAL STATEMENT

Before preparation of fund flow statement, it is essential to prepare the schedule of change in working capital. Statement of changes in working capital is prepared on the basis of items in current assets and current liabilities of between two balance sheets. This statement helps to measure the movement or changes of working capital during a particular period. The term working capital refers to excess of current assets over current liabilities. The working capital may be Increase in working capital or Decrease in working capital. An increase in the amount of an item of current assets in the current year as compared to the previous year represents to an increase in working capital. Similarly, a decrease in the amount of an item of current year as compared to the previous year would represent decrease in working capital. In the same way over all changes in working capital is calculated and presented in the schedule of changes in working capital. The final result of net Decrease in Working Capital refers to Source of funds or Inflow of Funds. Like this, Net Increase in working Capital represents Application of Fund or Uses of Funds.
PRINCIPLE OR RULES FOR PREPARATION OF WORKING CAPITAL STATEMENT

The following rules may be kept in mind while preparing working capital statement.
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1) 2) 3) 4) Increase in current Asset Decrease in current Asset Increase in current Asset Decrease in current liability Increase working capital Decrease working capital Decrease working capital Increases working capital
FUND FLOW STATEMENT

After preparing schedule of changes in working capital and fund from operations, at the last stage a comprehensive fund flow statement can be prepared on the basis of component of non-current liabilities of balance sheet and relevant information. The following is a specimen form may be used for preparation of schedule of changes in working capital.
Particulars
Statement of changes in working capital Previous Current Effect on working capital Year R s. Year R s. *** Increase *** Decrease ____
Current Assets: Cash in Hand Cash at Bank Sundry Debtors Bills Receivable Short term Investment Stock Prepaid Expenses Outstanding Incomes *** *** *** *** __ *** ***
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Total Current Assets (A) Current Liabilities: Sundry Creditors Bills Payable Bank Overdraft Outstanding Expenses Short Term Loans Total Liabilities (B) Working capital (A-B) Net Increase/Decrease in working Capital Total *** *** ___ *** *** *** Current ***
Components of Sources and Application of Funds

The following are the components different sources and applications of funds presented below: 1. Fresh Issue of Equity Share Capital 2. Fresh Issue of preference Share Capital 3. Issue of Debentures and Bonds 4. Long Term Loans raised from bank, financial institutions and public 5. Long Term Loans on mortgage 6. Sale of fixed Assets 7. Sale of Long Term investments 8. Non-Trading Incomes 9. Fund From Operations
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10. Net Decrease in working capital (as per schedule of changes in working capital)
Components of Applications of Funds

Generated funds from various sources may be utilized this funds in the following ways for meeting the future productive programmes of the business. 1. Redemption of shares and Debentures 2. Repayment of Loans raised from bank, financial institutions and public 3. Purchase of Fixed Assets 4. Purchase of Long Term Investment 5. Non-Trading Expenditure 6. Payment of Tax 7. Payment of Dividend 8. Fund Lost in Operations 9. Net increase in working capital (as per schedule of changing in working capital)
Specimen form of Fund Flow Statement

The following are two usual formats for preparation of sources and Application of Fund is presented below. 1. Statement Form 2. Account Form
Account Form Fund Flow Statement

Sources of Funds Amount R s. Application of Funds Amount R s.
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Fund From Operations Issue of share Capital Issue of Debentures Long Term Loans Sale of Fixed Assets Sale of Investments Non-Trading Incomes Decrease in Working Capital (As per schedule of changes In working capital) *** Total Inflow *** Total outflow *** Fund lost in Operations Redemption of shares Redemption of Debentures Purchase of fixed Assets Repayment of Long Term Loans Non-Trading Expenditure Payment of Tax Payment of Dividend Increase in Working Capital (as per schedule of changes In Working capital) *** *** ***
Fund flow statement

After preparing schedule of changes in working capital and fund from operations, at the last stage a comprehensive fund flow statement can be prepared on the basis of component of non-current liabilities of balance sheet and relevant information. In other words this statement is prepared with the help of the changes in non-current liabilities of balance sheet.
Fund flow statement

After preparing schedule of changes in working capital and fund from operations, at the last stage a comprehensive fund flow statement can be prepared on the basis of component of non-current liabilities of balance sheet and relevant information.
STATEMENT FORM FUND FLOW STATEMENT
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Particulars Sources of funds: Fund Flow Operations Issue of Share Capital Issue of Debentures Long Term Loans Sale of Fixed Assets Sale of Investments Non-Trading Incomes Decrease in Working Capital (as per schedule of changes in working capital) Total sources (or) Total inflows (A) Application or Uses of Funds: Fund Lost in operations Redemption of shares Redemption of Debentures Purchase of Fixed Assets Repayment of Long Term Investments Non-Trading Expenditure Payment of Tax Payment of dividend Increase in Working capital (as per schedule of changes in working capital) Total Application or total Outflows (B) *** *** *** *** *** *** *** *** Amount Rs. Amount Rs.
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RESEARCH METHODOLOGY
Research Design
To analyze the working capital, trends and for the purpose of ratio analysis, Financial Analysis has to be carried out. Financial analysis is the analysis and interpretation of financial statements and a proper financial analysis can give the users better insight about financial strengths and weakness of the firm. Financial analysis is the starting point for making plans, before using any sophisticated forecasting and planning procedure. For the purpose first the required information has to be collected like for ratio analysis and owing capital management analysis, income statements, trading and profit and loss accounts, balance sheet, funds flow statement, etc. are to be collected the, the data in the statements is to be properly organized and arranged and then relationship is established between financial statements and finally conclusions are drawn from the interpreted information and presented in the form of reports. Research Methodology Research involves getting tools, ideas from texts, journals, books, records, Websites. The collection of data is an important aspect of Research. The sources of information fall under two categories. Internal Sources Every company keeps certain records such as accounts, records, reports, etc. These records provide sample information for research. External Sources When internal records are insufficient and required information is not available the organization the organization depends on eternal sources. The external sources of data are: Primary Data Secondary Data
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TABLE 1 STATEMENT SHOWING CHANGES IN WORKING CAPITAL2006-06

Rs. In Lakhs Particulars Current Assets:Sundry Debtors Cash on Bank Other Current Assets Loans & Advances Total Current Liabilities:Liabilities & Provision Total Working Capital CA-CL Decrease in Working Capital 2006(Rs.) 3849.09 3227.02 117.54 935.06 9108.15 2853.28 2853.28 6254.87 6254.87 2003(Rs) 4333.89 2620.87 144.56 900.81 9054.12 3216.35 3216.35 5837.77 417.1 6254.87 Increase 484.8 27.02 0 417.1 1003.47 363.07 0 1003.47 Decrease 606.15 34.25
INTERPRETATION
There is a net decrease in Working Capital due to decrease of current assets in inventories, cash on bank. Sundry debtors, loans and advances are increase position . Company has the increase inventory due to increase in production demand.
TABLE 1.1
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FUNDS FLOW STATEMENT FOR 2006-2007

Rs.In Lakhs Sources of fund Share Capital Reserves Secured Loans Unsecured Loans Deferred Sources of fund 1359.68 5262.91 11643.49 288.96 Tax 2129.47 4171.1 20684.51 Sources of fund Investments Fixed Assets Miscellaneous Expenditure Net Current Assets Sources of fund 211.53 14534.19 101.02 5837.77
Liabilities Decrease in Working Capital
20684.51
INTERPRETATION: In current asset of Loans and advances has appreciation to Rs.34.25 Lakhs and current liabilities & Provisions of current liabilities has been decreased Rs.363.07 Lakhs. During the year the company in borrowings taken secured loans Rs.11643.49 Lakhs. The huge amount invested in assets Rs. 14534.19 lakhs.
TABLE 2
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STATEMENT SHOWING CHANGES IN WORKING CAPITAL2007-07

Rs. In Lakhs Particulars Current Assets:Inventories Sundry Debtors Cash on Bank Other Current Assets Loans & Advances Total Current Liabilities:Liabilities & Provision Total Working Capital CA-CL Increase in Working Capital 2007(Rs) 4333.89 2620.87 1054 144.5 900.81 9054.13 3216.35 3216.35 5837.78 438.09 6275.87 2008(Rs) 5010.35 3378.97 845.93 189.3 752.22 10176.77 3900.9 3900.9 6275.87 6275.87 Increase 676.46 758.1 44.8 1479.3 Decrease 2081.07 148.59 684.55 438.09 1479.3
INTERPRETATION:
There is a increase in working Capital due to increase of current assets in inventories , sundry debtors . In the inventories (Raw materials ,packing materials ,work in process, finished goods, stores, spares and consumables , materials in transit, tools and implements.) In this year the situation is reversed that means currents assets are increased and current liabilities are increased. In this year the company has the increasing inventory due to increase production demand.
TABLE 2.1 FUNDS FLOW STATEMENT FOR 2007-2008

Rs.In Lakhs
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Sources of fund Share Capital Reserves Secured Loans Unsecured Loans Deferred Liabilities Sources of fund 1359.68 4895.67 11326.44 725.81 Tax 1895.45 Increase in Working Capital 20293.05 438.09 20293.05 Sources of fund Investments Fixed Assets Miscellaneous Expenditure Net Current Assets Sources of fund 212.47 13726.46 77.25 6275.86
INTERPRETATION: In current asset of Loans and advances has depreciation to Rs.148.59 Lakhs and current liabilities & Provisions of current liabilities has been increased Rs.684.55 Lakhs. During the year the company in borrowings taken secured loans Rs.11326.44 Lakhs. The huge amount invested in assets Rs. 13726.46 lakhs.
TABLE 3 STATEMENT SHOWING CHANGES IN WORKING CAPITAL2008-08

Rs. In Lakhs
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Particulars Current Assets:Inventories Sundry Debtors Cash on Bank Other Current Assets Loans & Advances Total Current Liabilities:Liabilities & Provision Total Working Capital CA-CL Increase in Working Capital 2008(Rs) 5010.34 3378.97 845.93 189.30 752.22 10176.76 3900.90 3900.90 6275.86 6275.86 2009(Rs) 4390.10 2596.89 965.14 227.71 1000.85 9180.69 3828.58 3828.58 5352.11 923.75 6275.86 Increase Decrease 620.24 782.08 119.21 38.41 248.63
72.32
923.75 1402.32
1402.32
INTERPRETATION:
There is a decrease in working capital due to decrease of current assets in inventories, sundry debtors and also decrease the current liabilities. Cash on bank , loans and advances are increase position. In the inventories (Raw materials ,packing materials ,work in process, finished goods, stores, spares and consumables , materials in transit, tools and implements.)

Rs.In Lakhs SOURCES OF SOURCES OF FUND Share Capital Reserves Page 53 FUND 1359.68 3353.73 SOURCES OF FUND Investments Fixed Assets Chittoor SOURCES OF FUND 212.69 12709.18

Miscellaneous Secured Loans Unsecured Loans Deferred Tax 1649.79 923.75 18327.46 18327.46 9939.00 2025.26 Expenditure Net Current Assets 53.48 923.75
Liabilities Decrease in Working Capital
INTERPRETATION:
In current asset of Loans and advances has appreciation to Rs.248.63 Lakhs and current liabilities & Provisions of current liabilities has been decreased Rs.72.32 Lakhs. During the year the company in borrowings taken secured loans Rs.9939.00 Lakhs. The huge amount invested in assets Rs. 12709.18 lakhs.
TABLE 4 STATEMENT SHOWING CHANGES IN WORKING CAPITAL 2009-10

Rs. In Lakhs PARTICULARS Current Assets:Inventories 2009(RS) 4390.10 2010(RS) 3233.11 Chittoor INCREASE DECREASE 1156.99
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Sundry Debtors Cash on Bank Other Current Assets Loans & Advances Total Current Liabilities:Liabilities & Provision Total Working Capital CA-CL Increase in Working Capital 2596.89 965.14 227.71 1000.85 9180.69 3828.58 3828.58 5352.11 934.61 6286.72 2646.55 1247.54 248.33 1736.65 9112.18 2825.46 2825.46 6286.72 6286.72 49.66 282.4 20.62 735.8
1003.12
2091.6
934.61 2091.6
INTERPRETATION:
There is increase in working capital due to increase of current assets in sundry debtors , cash on bank , loans and advances. Inventories are decrease position . In the inventories (Raw materials ,packing materials ,work in process, finished goods, stores, spares and consumables , materials in transit, tools and implements.)

Rs.In Lakhs SOURCES FUND Share Capital Reserves Secured Loans Unsecured Loans Deferred Tax Page 55 OF SOURCES OF FUND 1359.68 1870.62 11561.41 2170.11 1251.33 SOURCES OF FUND Investments Fixed Assets Miscellaneous Expenditure Net Current Assets Increase in working Chittoor SOURCES OF FUND 206.42 11690.25 29.71 2686.77 934.61

Liabilities 18213.15 capital 18213.15
INTERPRETATION: In current asset of Loans and advances has appreciation to Rs.735.8 Lakhs and current liabilities & Provisions of current liabilities has been decreased Rs.1003.12 Lakhs. During the year the company in borrowings taken secured loans Rs.11561.41 Lakhs. The amount invested in assets Rs. 11690.25 lakhs.
FINDINGS
Reserve has been decreasing during all the four years since 2006. The company debt capital raised more from secured loans & unsecured loans. Operating cash is increased in 2007 due to increase of trade & payables. The company uses more debt than their own funds to finance fixed assets. It has to pay a lot of interest from profits. In the year 2010 the changes in working capital increased.
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SUGGESTIONS
The company invest huge amount at a time in the year 2006. It is better to invest subsequent years rather than to invest at a time. The Raw material should be maintained for meeting the short term operations. It is better to raise debt-capital more from preferential share holders than secured and unsecured loans for reduce interest. The company is better to maintain stable debt equity to reduce the cost of debt. The company may further reduce its collection period to increase profitability using lock box system of collection.
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CONCLUSION
Over all financial position of the company is very good. It has utilized its assets optimally to reach more profits. Sales have been on the increasing trend. The profits have increased considerably in 2009 compared to the previous years. As the company produces made to order products, it has to focus more on the marketing department to secure orders and has to try increasing their exports also. So also for its various new products such as Mango Pulp, Guava Pulp, Tomato Juice etc., The following conclusions are arrived at based on the observations made on the present study:1) Except of the first year (2005-06) the study period it is total funds.
observed that
the fund for operation is on loss. It generated the funds in application of
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2) Except of the first year of the study of period, funds were utilized for financing the working capital need. 3) The study revealed a mixed trend of application and sources of funds in respect of Secured and unsecured loans.
BIBLIOGRAPHY
James C.Vann Home Financial Management, 9th edition Prentice - Hall of India Private Limited, New Delhi, 1994. Pandey I.M., Financial Management, 7th Edition, Vikas Publishing House Pvt. Ltd., New Delhi, 1995. Maheswari S.N., Financial Management, 4th Edition, Sultan Chand & Sons, New Delhi. 1997. Man Mohan & Goyal S.N., Principles of Management Accountings 6 th Edition, Sathiya Bhavan, Agra, 1998.
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Prasanna Chandra, Financial Management, 3rd Edition, Tata Mc.Graw-Hill Publishing Co., Ltd., New delhi, 1984. Website:
www.varmainternational.com www.google.com
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FUNDS FLOW STATEMENT

FUNDS FLOW STATEMENT

VCR INSTITUTE OF MANAGEMENT STUDIES,

FUNDS FLOW STATEMENT

FUNDS FLOW STATEMENT

FOOD PROCESSING MARKET IN INDIA IN 2007

FUNDS FLOW STATEMENT

VCR INSTITUTE OF MANAGEMENT STUDIES,

FUNDS FLOW STATEMENT

FUNDS FLOW STATEMENT

VCR INSTITUTE OF MANAGEMENT STUDIES,

FUNDS FLOW STATEMENT

Indian Food processing in the year of 2008

India Food Processing Industry

FUNDS FLOW STATEMENT

Food processing Industries in India as per July 2009

& Soft drinks and gain

FUNDS FLOW STATEMENT

FUNDS FLOW STATEMENT

HISTORY OF FOOD AND INNS Ltd.

FUNDS FLOW STATEMENT

BACKGROUND OF VARMA INTERNATIONAL (P) Ltd

, a Chartered Accountant from U.K., looking after the

VCR INSTITUTE OF MANAGEMENT STUDIES,

FUNDS FLOW STATEMENT

RAW MATERIAL SOURCING

FUNDS FLOW STATEMENT

VCR INSTITUTE OF MANAGEMENT STUDIES,

FUNDS FLOW STATEMENT

CUTTING EDGE TECHNOLOGY

INITIATIVES SPAN THE FOLLOWING DISCIPLINES

FUNDS FLOW STATEMENT

EFFICIENT PLANT LAYOUT

VALUABLE INDUSTRIAL EXPERTISE

PUREE & CONCENTRATE FACILITY

VCR INSTITUTE OF MANAGEMENT STUDIES,

FUNDS FLOW STATEMENT

VAPOUR HEAT TREATMENT

STAGE OF USE OF WATER TO THE BEST EFFECT IN OUR FACTORY

VCR INSTITUTE OF MANAGEMENT STUDIES,

FUNDS FLOW STATEMENT

THE BEST EFFECT IN OUR FACTORY

FUNDS FLOW STATEMENT

SOLID WASTE MANAGEMENT

CERTIFICATIONS OF INTERNATIONAL QUALITY STANDARDS

OUR CERTIFICATIONS INCLUDE

FUNDS FLOW STATEMENT

MANGO PULP INDUSTRY HOPES

VCR INSTITUTE OF MANAGEMENT STUDIES,

FUNDS FLOW STATEMENT

VCR INSTITUTE OF MANAGEMENT STUDIES,

FUNDS FLOW STATEMENT

SCOPE OF THE STUDY

FUNDS FLOW STATEMENT

NEED OF THE STUDY

VCR INSTITUTE OF MANAGEMENT STUDIES,

FUNDS FLOW STATEMENT

IMPORTANCE OF THE STUDY

FUNDS FLOW STATEMENT

OBJECTIVES OF THE STUDY

FUNDS FLOW STATEMENT

LIMITATIONS OF THE STUDY

FUNDS FLOW STATEMENT

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