14-11-2012, 01:36 PM
A PROJECT REPORT ON A STUDY OF FINANCIAL ANALYSIS AT VADILAL INDUSTRY LIMITED
VADILAL INDUSTRY LIMITED.docx (Size: 1.66 MB / Downloads: 100)
EXECUTIVE SUMMARY
Financial Management decisions are divided into the management of Assets (investments) and Liabilities (sources of financing), in the long-term and the short-term. It is common knowledge that a firm's value cannot be maximized in the long run unless it survives the short run. Firms fail most often because they are unable to meet their working capital needs; consequently, sound working capital management is a requisite for firm’s survival.
About 60 percent of a financial manager's time is devoted to working capital management, and many of the potential employees in finance-related fields will find out that their first assignment on the job will involve working capital. For these reasons, the project of working capital policy and management given to me at Vadilal Industries Ltd. will help me get the required practical experience on various management practices involved in managing working capital of an organization.
Working capital policy refers to decisions relating to the level of Current Assets and the way they are financed, while Working Capital Management refers to all those decisions and activities a firm undertakes in order to manage efficiently the elements of Current Assets. While Long-Term Financial Analysis primarily concerns strategic planning, working capital management deals with day-to-day operations. By making sure that production lines do not stop due to lack of raw materials, that inventories do not build up because production continues unchanged when sales dip, that customers pay on time and that enough cash is on hand to make payments when they are due. Obviously without good working capital management, no firm can be efficient and profitable.
INTRODUCTION
This project has been a great learning experience for me; at the same time it gave me enough scope to implement my analytical ability. This project as a whole can be divided into two parts:
The first part gives an insight about the vadilal and its various aspects. It is purely based on whatever I learned at vadilal. One can have a brief knowledge about working capital and ration analysis and all its basics through the project. Other than that the real servings come when one moves ahead. Some of the most interesting questions regarding finance have been covered.
All the topics have been covered in a very systematic way. The language has been kept simple so that even a layman could understand.
The second part consists of the study of working capital and ratio analysis. Hope the research findings and conclusions will be of use.
INDUSTRY OVERVIEW
Ice Cream Market in India: Opportunities & Challenges
by India Food Brief on Tuesday, March 29, 2011 at 11:19am •
Contributing Editor, TradeBriefs: Anurag Garg
The ice cream market in India is estimated to be around INR 2,000 crores, of which over 40% belongs to the organized sector growing at about 15% Y-to-Y. Amul leads the pack with about 36-38% market share (5% of its total revenues), followed by Kwality Walls & Vadilal with about 12-14% share each. These players not only have to fight the small local and cottage industry players, but also the fact that the Indian cuisine itself offers a large variety of desserts which are still preferred by most Indians. Due to this reason, the per capita consumption of ice creams in India is about 300ml per annum, 1.4% of that in US, and 13% of the world average, which can be seen as a huge opportunity in this sector in India attracting new regional and national entrants.