Funds flow statement NAVYA FOODS

CHAPTER-1

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INTRODUCTOIN TO FUNDS FLOW STATEMENT

Funds flow statement is an analytical tool in the hands of financial manager .the basic
purpose of this statement is to indicate on historical basis the change in the working capital i.e.
where funds came from and where there are used during a given period.

Funds flow statements summarize a firm’s inflow and outflow of funds .simply put it tells
investors where funds have come from and where funds have gone. The statements are often
used to determine whether companies efficiently source and utilize funds available to them

1.1. Introduction to funds flow statement:

Funds constitute prime importance in starting and operating any business enterprise the most
significant of all financial activities is the raising and management of funds financial decisions are
those which concern the generation and flow of funds various sources and the Of this funds. the
accounting standards state that in many countries the approach to provide a statement of change in
financial position as a part of audited accounts is the trend in India companies are under no legal
obligation to publish a statement of change in financial position statements along with financial
statements especially in the case of companies listed on the stock exchanges and other large
commercial industrial and business enterprise in public and private sectors. The funds flow
statement which shows the movement of funds and is the part of financial operation of the business
under taking. It indicates various means by which funds. Where obtained during a period and the
ways in which there funds where employed in simple words. It is a statement of sources and
application of funds.

Funds flow analysis refers to the process the of determining the financial strengths and weakness
of the by establishing relationship between the items of balance sheet and profit and loss account
.funds flow statement serves as a handy tool in financial analysis making financial planning
preparation of budget though this analysis firm group the change in the allocation resources
between the two balance sheets .the funds flow statement expresses the changes in working capital
and assesses the impact upon liquidity position of the undertaking with the help of this statement.

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1.2 Definition:

According to R.N. Anthony, “funds flow is a statement prepared to indicate the increase in
cash resources and the utilization of such resources of a business during the accounting period”.

R.A.F bulk: “a statement of sources and application of funds is a technical devices designed to
analysis the changes in finical conditions of business between two dates.

Biermann: “it is a statement which highlights the underlying financial movement and explains the
change in financial conditions of a business between two dates”.

Funds flow statements are prepared by taking the balance sheets for two dates representing the
coverage period. The increases and decreases must then be calculated for each item. Finally, the
changes are classified under four categories:

 Long –term sources,

 Long – term sources,
 Short –term sources,
 Short –term uses.

It is also important to zero out the non-fund adjustment in order to capture only the changes that
are accompanies by follow of funds. However, income accrued but received and expenses incurred
but not received reckoned in the profit and last statement should be exclude from the profit figure
for the funds flow statement.

Fund flow statement can be used to identify a variety of problems in the way a company operates.
For example, company that are using short-terms of money to finance long investments may run
into liquidity problem in the future. Manual, a company that is using long-term money to finance
short-term investment may not be efficiently utilizing its capital.

A summary of main points of differences between these two is given below:-

 Balance sheet is a statement showing the financial position of the concern on a particular
date. The asset side portrays the development of resources in various type of properties an
liabilities side indicates the manner in which these resources are obtained. It shows all
assets and liabilities whether current or fixed, tangible or intangible etc., while funds flow

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statement shows the changes in current assets an current liabilities during a particular
period of time.

 Balance sheet shows the total financial position on a particular date and in this way, it is of
a historical nature and therefore, its utility is very limited for the management. On the other
hand, Funds flow statement is a comparative statement of assets and liabilities and depicts
the changes in working capital during the period of two Balance sheets.

 Funds Flow statement is an analysis and control device for the management. Management
can ensure the long term and the short term solvency of the firm by studying the internal
funds flow cycles. It is a modern technique of knowing the inflows and outflows of funds
during a particular period. Balance sheet represents the balance of various assets and
liabilities and does not present analysis of any kind.

 There are two views of h financial position of the firm-long term an short-term. Short term
financial position means the technical solvency of the firm in the near future while on the
other hand, long-term financial position means future financial structure of the firm. Both
are inter-relate but there is differences in their analysis. The short term view of the financial
position of the firm cannot be had from the balance sheet

1.3 Funds Flow statement:

‘The statement showing the source and application of the funds know as funds Flow
statement’. It is a condensed report of the how the financial resources have been used during the
period covered by the statement as it summarizes the financial activities for period of time.

1.4 uses and significance and importance of funds flow statement

 It helps in the analysis of financial operations.

 It helps in the proper allocation of resources.
 It helps in the formation of realistic dividend policy.
 It helps in a appraising the use of working capital.
 It helps knowing the overall credit worthiness of firm.

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1.5 limitations of funds flow statement:

1. It is essentially historic in nature and projected funds flow statement

cannot be prepared with much accuracy. It cannot be reveal continues changes.

2. It is not an original statement but simply are –arrangement of data given in the
financial statement.

1.6 Different names of flow statement:

 A statement of sources and application of funds.

 A statement of sources and uses of funds.
 Where got and where gone statement.
 Inflow and outflow of funds statement.
1.7 Main purpose of funds flow statement:
1 To help to understand the changes in assets and which are not evident.
2 To inform on to how the loans to the business has been used.

3. To point out the financial strengths and weakness of the business.

4. To help in planning sound divided policy.

1.8 Preparation of funds flow statement:

In order to prepare a fund flow statement it is necessary to mind out the source and
application of funds.

1.9 Source of funds:

 Funds from operation:

Fund from operation is the only internal source of funds. Some adjustments are to

Made in calculative funds from operation to the net profit given in the financial

Statement.

 Calculation of funds from operation:

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Start with the net profit given in the profit and loss account.

1.10 Objectives of funds flow statement:

Fund flow statement is a widely used tool in the hands of financial executives for
analyzing the financial performance of concern. Funds keep on moving in a business which itself
is based on a going concern concept. In a narrow sense, it means cash only and the funds flow
statements prepared on this basis is called as cash flow statement. such a statement enumerates net
effects of various business transactions on cash and take into account receipt and disbursements
of cash.in a broader sense ,the term of “funds” refers to money values in whatever form it may
exist. Here “funds” means all financial resources in the form of men, materials, money, machinery
etc. But in a popular sense, the terms “funds”, means working capital, i.e. The excess of current
liabilities. When the funds move inwards or outwards, they a use a flow or rotation of funds. The
word “fund” here means net working capital.

The main purposes of fund flow statement are:

 to help to understand the changes in assets and assets sources which ate not readily
evident in the income statement of financial statement.
 To inform as to how the loans to the business have been used.
 To point out the financial strengths and weakness of the business.

The utility of this statement. It generally serves the following purposes:

 Analysis of financial position:

The basic purpose of preparing the statement is to have a rich into the financial
operations of the concern. It analyses how he funds were obtained and used in the past. In this
sense, it is a valuable tool for the finance manager for analyzing the past and future plans of the
firms and their impact on the liquidity. He can deduce the reasons for the imbalances in uses of
funds in the past a tale necessary corrective actions. In analyzing the financial position of the firm,
the funds flow statement answers to such questions as.

 Why were the net current assets of the firm down, though the net income was up or vice
versa?

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 How was it possible to distribute dividends in absence of or in excess of current income

for the period
 How was the sale proceeds of plant and machinery used
 How ware the debts retired
 What became to the proceeds of share issue or debenture issue
 How was the increase in working capital financed
 Where did the profits go

Though it is not an easy job to find the definite answers to such questions because funds derived
from a particular source really used for a particular purpose. However, certain useful
assumptions can often be made and reasonable conclusions ate usually not difficult to arrive
at.

 Evaluation of the firm’ s financing position:

One important use of the statement is that it evaluates the firm` financing capacity. The
analysis of sources of funds reveals how the firms financed its development projects in
the past i.e. from internal sources or from external sources. It also reveals the rate of
growth of the firms.
 An instrument for allocation of resources:
In modern large scale business, available funds ate always short for expansion
programs and there is always a problem of allocation of resources. It is, therefore, a need
of evolving an order of priorities for putting through their expansion programmers which
ate phased accordingly, and funds have to be arranged as different phases of
programmers get into their stride. The amount of funds to be available for these projects
shall be estimated by the finance with the help of funds flow statement. This prevent the
business from becoming a helpless victim unplanned action.
 A tool of communication to the outside world:
Funds flow statement helps in gathering the financial states of business.it gives an
insight into the evolution of the present financial position and gives answer to the
problem ’where have our resources been moving’? In the present world of credit
financing, provides a useful information to bankers, creditors, finanacial.it provides a
useful information‘s and government etc. . Regarding amount of loan required, it’s

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propose, the terms of repayment and sources for repayment of loan etc. The financial
manager gains a confidence born out of a study of funds flow statement.in fact, It carriers
information regarding firm’s financial policies to the outside world.
 Future guide:
An analysis of funds flow statement of several years reveals certain valuable
information for the financial manager for planning the future financial requirements of the
firm and their nature too i.e. short term, long-term or medium. The management can
formulate its financial policies based on information.

Analysis of such statement. Financial manager can rearrange the firm’s financing
more effectively on the basis of such information along with the expected changes in
trade p payables and the various accurals.in the way, it guides the management in
arranging its financing more effectively.

Analysis of such statement. Financial manager can rearrange the firm’s financing
more effectively on the basis of such information along with the expected changes in
trade p payables and the various accruals. In this way, it guides the management in
arranging its financing more effectively.

1.11 Procedures for preparing the funds flow statement:

The funds flow statement consists of the following:

1. Preparing of statement of changes in working capital.

2. Calculation of funds/ (loss) from operations.

3. Financing out the hidden transactions or changes in non-current assets

and non-current liabilities.

4. Preparation of statement showing sources and Application of funds

While preparing a schedule of changes I working capital should be noted that:

 An increase in current assets increase in working capital.

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 A decrease in current assets decrease in working capital.

 An increase in current liabilities decrease in working capital.
 A decrease in current liabilities increase in working capital.
 An in current assets and increase in current liabilities does not affect working capital.
 A decrease in current assets and decrease in current liability does not affect working capital.
 Changes in fixed (no-current) assets and fixed (non-current) liabilities affects working
capital.
1. The changes in all current assets and current liabilities are merged into one figure only
either an increase or decrease in working capital over the period for which funds statement
has been prepared .if the working capital at the end of the period is more than the working
capital at the beginning thereof.
2. The difference is expressed as ‘increase in working capital’ .on other Hands, if the working
capital at the end of period is less than at the commencement, the difference is called
‘decrease in working capital’.

WORKING CAPITAL=CURRENT ASSETS-CURRENT LIABILITIES

CURRENT ASSETS:

The expression ‘current assets’ denotes those assets, which are continually on the move.
Since they are constantly in motion, they are also known as the circulating capital of the business.
These assets can or will be converted into cash during a complete operating cycle of the business.
Current assets includes.

A. stock-in-trade or inventories;
B. Debtors;
C. Payments in advance or prepaid expenses;
D. Stores;
E. Bills receivable;
F. Cash at bank;
G. Cash in hand;
H. Work-in-progress, etc.

Current liabilities:
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‘Current liabilities’ are those liabilities, which are to be paid in the near future, i.e., during
a complete operating cycle of the business. Such liabilities include:

a. Trade creditors;
b. Accrued or outstanding expenses;
c. Bills payable;
d. Income-tax payable ;
e. Dividends declared;
f. Bank overdraft;

1.12 statement of source and application of funds:

1.12.1 Funds from operations:

It is an internal source of funds. Funds from operations are to be calculated as per the
method stated above.

1.12.2 Funds from long term loan:

Long-term loans such as debentures, borrowings from financial institution will

increase the working capital and therefore, there will be inflow of funds. However, if the debenture
have been issued in consideration of some fixed assets, there will be no inflow of fund.

1.12.3 Sales or fixed assets:

Sales of land, building, and long-term investments will results in generation of funds.

1.12.4 Funds from increase in share capital:

Issue of share for cash or for any other current asset or in discharge of current liabilities
is another sources of funds. However, shares allotted in consideration of some current liabilities
will not results in funds. However, it is recommended that such purchase of fixed assets as well as
issue of securities to pay for them be revealed in funds flow statement.

1.12.5 Decrease in working capital:

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Decrease in working capital is the result of decrease in current assets or increase in

current liabilities. In both the cases inflow of funds take place. For example stock, a current assets
reduces from Rs.15, 000 to Rs.12, 000 the decrease of Rs.3, 000 is assumed to be due to the
disposal of stock which undoubtedly brings funds into the business. In the same way, increase in
current liabilities mean lesser payment, so retaining funds is also a source

1.13.1 Performa of statement of changes in working capital

Particulars Beginning Ending changes in working

capital
Increase Decrease
Current assets(ca):
Inventories: Xxx Xxx
Raw material Xxx Xxx
Consumable store Xxx Xxx
Finished goods Xxx Xxx
Sundry debtors Xxx Xxx
Cash in hand Xxx Xxx
Balance with bank Xxx Xxx
Other current bank Xxx Xxx
Deposits Xxx Xxx
Income tax Xxx Xxx
Sales tax Xxx Xxx
Total current assets xxx Xxx
Current liabilities:
Trade creditors Xxx Xxx
Dealers deposits Xxx Xxx

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Expenses payable Xxx Xxx

Total current Xxx Xxx
liabilities
Working capital Xxx Xxx
Net xxx Xxx
increase/decrease
working capital
Total xxx Xxx Xxx Xxx

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Statement of sources and Applications of funds

Funds flow statement is statement, which indicates various sources for which funds have been
obtained during a chain period and the uses or applications to which these funds have been put
during that period.

Sources amount applications Amount

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Funds from trading XXX Funds costs in operations XXX

Repayment of debentures XXX

Factitively or

Reduction in share capital XXX

Operating profit XXX

Interest and dividend paid XXX

Issue of shares and debentures XXX

Payment of long term loans XXX

Receipts of dividend and invests XXX

Sales proceeds of noncurrent XXX

asset

Long term

XXX

Borrowings
XXX
Increase in working capital XXX

Decrease in working capital

XXX

XXX XXX

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CHAPTER-II

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Statement of the problem

The funds flow statement is helps the efficiency and administration of the business providing
summary of the sources form which funds have to be procured and used to which such fund have
been put to . A project fund flow statement will help the analyses in find out how the management
is going to allocate the scarce financial resources for meeting productive requirement of the
organization to maintain a statement level fund flow neither excess nor deficit.

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2.2 Need for the study

 This project work is an attempt to get acquainted with facts of short-time finance
management. This project work in an endeavor to note, absorb and imbibe the style
of the corporate sector, far from the academic exercise. It is necessary to study the
financial management practices in Navya foods private ltd

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2.3 Scope of the study

An extensive study is done on the investment made by Navya foods private ltd. Its funds
flow statement and its adequacy, and the factors determine that investment. The statement change
in working capital on Navya foods private ltd. The study covers the change in current asset and
current liabilities from the end of one period of time to the end of another period of time. The
technique used by firm of the management of its current assets sources though which the finance
of the funds flow statement in availed for the Navya foods private ltd.

2.4 Objectives of the study:

1. To analyze the changes those have Talen place in the financial position of navya foods private
ltd.
2. To study interpret the comparative balance sheet and ratios of navya foods private ltd.
3. To find out the operating efficiency of the organization.
4. To measure the overall financial performance of navya foods private ltd.
5. To examine the working capital position of the company.

Research methodology:

Research is scientific & systematic search pertinent information on a specific topic the
meaning of research is a careful investigation (or) enquiry in any branch especially through search
for new facts in any branch of knowledge.

Sources of data:

There are two sources of data collecting the data.

 Primary method
 Secondary method
Primary data:

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Primary data is fist hand information collected from the employees in the organizations and
which is applicable in the study.

Secondary data:

The secondary data are those which have already been collected from internet, company manuals,
company balance sheets, schedules, budgets and other statements etc., by Navya Foods Company.

2.6 Limitations of the study

 The study is based on past data which can’t exactly predict the future performance.
 The study based on the available annual reports and internal information only.
 The time period is limited for analysis.

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CHAPTER- III

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3.1 INDUSTRY PROFILE

The lack of mango market development globally opens a large untapped opportunity for
India to make an organized entry in the fresh mango and mango pulp market. India is well
positioned to capitalize on this opportunity with a very large national production of mangos,
including leading varieties like Alphonso. India has the potential to create a long–term global
market position and to capitalize on the fast growth of mango as a preferred ingredient for the
natural package food industry. Additionally, mango is a preferred fresh fruit within the Indian
domestic market, as well as globally. Mango is in strong demand within the worldwide retail
sector. The total market value of Indian mango and mango pulp represents 25% of the value of
agricultural and processed food products exported by India. Moreover, the consumption growth
for mangos in the United States and Europe has average 10–15% per year during the last 5
years. Collectively, these factors indicate a strong opportunity to position Indian mango and
mango products to meet a growing international demand. India is the world’s largest supplier
of mangos, having an annual production of 10.5 million metric tons in 2003.

This accounts for 41% of the estimated worldwide mango production of 25.56 million
metric tons in 2003. Despite this large mango production, India is a minor exporter of mango
and mango products at this time. During the five–year period from 1998–2002, exports of fresh
mangos from India averaged approximately 42.4 thousand metric tons, or only about 0.4% of
mango production during this time frame. Data on exports of Indian mango pulp and juice
products are more limited. Data from 1995 indicated that India exported 37.7 thousand metric
tons of mango pulp.

Data from 2001 indicated that India exported 3.2 thousand metric tons of mango juice,
but also imported 2.2 thousand metric tons of mango juice. Collectively, these observations
indicate that, despite being by far the world’s largest mango producer, India exports less than
1% of its mango crop as fresh mangos or processed mango products. These observations with
mango are consistent with aggregate data available on Indian fruit and vegetable exports.

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One barrier to efficient development of the Indian mango industry is an exceedingly

complex supply chain. Within the value chain, a number of buyers and other aggregators
operate at local Minds and APMC to assemble larger lots from the many small producers in any
given region. Associated with this inefficient aggregation process is the application of
numerous commissions as fresh agricultural products trade hands. Numerous stakeholders in
India have expressed concern that this overly complex value chain is a hindrance to effective
marketing of Indian mangos and mango products.

A recent report from the Indian Ministry of Food Processing Industries further details
the overly complex supply chain and its contribution to costs and post–harvest losses. This
report concludes that it is imperative to streamline the mango supply chain in order to reduce
wastage and raw material costs. (Sources: India Ministry of Food Processing Industries and
Rambo bank Report).

India Mango & Mango Pulp Industry Development:

Through partnerships with mango growers, processors, export organizations, and Indian
government organizations, among others, PFID—F&V is working to strengthen the small and
medium mango grower base by providing capacity building at all levels.

Education and training in Good Agricultural Practices and other sanitary standards, as
well as employment of certification systems, will lead to better yields, pesticide use in
accordance with regulations, and a more efficient supply chain. PFID—F&V partnerships will
also help identify and facilitate resources necessary for enhancing the mango supply chain such
as cold storage facilities, improved packing and grading facilities, testing facilities, and logistics
management. Furthermore,

A further approach will target reduction of waste in the fresh mango chain by developing
high–value mango products and enhancing processing capacity for the domestic market.
Ultimately, these steps will help stabilize prices, increase farmer incomes, and development the
farmer base at commercial and social levels.

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Mango Market Development:

PFID-F&V India has continued to forge and strengthen public and private
partnerships to the point that, now, just over one year from project start-up, notable
results are beginning to show in the form on increasing contributions from
partnership members.

Dr. Thiagarajan, MSU/PFID-F&V, together with our two India-based coordinators,

recently met with the Agricultural Product Export Development Authority (APEDA) as well as
the Federation of Indian Chambers of Commerce (FICCI) and the National Institute of
Marketing Boards (NIAM) to follow up on each of their commitments to promote the Indian
Mango Industry.

During this visit, both the Maharashtra State Horticulture Mission and the National
Horticulture Missions’ approvals were secured to begin the critical selection of 100 GAP
demonstration farms, identification of trainers to participate in train-the-trainer courses and
program implementation, as well as the initial survey and audits of the nucleus demonstration
farms in Maharashtra.

Goals of India Mango Market Development:

Currently, only 1% of the total mango production in India is exported. One reason
contributing to this poor export performance is that overseas buyers have stricter standards than
are currently accepted within the Indian domestic market. PFID—F&V will facilitate the
development and implementation of quality and safety standards which will meet the demands
of the export market.

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 PFID—F&V will partner with relevant Indian organizations in establishing a global

image for the Indian mango starting with the establishment of quality standards and
Good Agricultural Practices (GAPs) standards for India.
 PFID partnerships in India can facilitate the development of a distribution network in
European and other countries where the value realizations for mango and mango pulp
are the highest.
 PFID partnerships can assist mango growers and processors in developing an "India"
brand image for fresh mango and processed mango products that meet consumer
preferences. The predominant mango varieties grown in India make this product
unique in country and abroad.
 After demonstrated success in developing a strengthening the market development of
mangoes, PFID India liaisons can easily adapt this approach to the further
development of other fruit and vegetable products in India

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COMPANY PROFILE

History of M/S Navya foods private ltd.

Strategically located at irala Mandal of Chittoor in AP, India Navya foods private ltd is totally
export based food processing units to process wide varieties of tropical food process, concentrates
fresh fruits and so on.

At Navya foods private ltd we support the local forming community to cultivate fruits/
vegetables and improve their economic conditions. We finally believe that these forming
commodity is the sources of strength for out organizations.

These industries can emphasize and adopting the proven methodology and old-class quality
foods processing benchmarks. In a phased manner, we are posed to help the industry and nation in
General and formers in the particulars.

It is envisage extending our operations to a chain foods processing plant across India special
emphasis on back ground integration and making formers community as partners in our
programmer.

Back ground integration

As part our back ground integration model, will support the local forming community through:

 Inter acting with farmer community.

 Bringing large scale forming land in to fruits/vegetable cultivation.
 Impetrating technical training under the guidance of exports from research institutions.
 Encouraging to accomplish the best quality and higher fruit yields.
 Training them on advanced fruit/vegetables farming and harvesting techniques.
 Spreading the awareness among the on the horizontal techniques.
 Enabling them to mobilize and get the fruits directly to the factory.
 Minimizing the fruit transportation costs through direct purchases.
 Reducing the unnecessary involvement of middlemen like traders, wholesalers, agents, etc.
 Minimizing damages in handling fruits/vegetables.

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 Enabling high returns on investment (ROI).

Navya foods p.v.t ltd is a private is classified as Indian Non-government
Company and is registered at registrar of companies, Hyderabad .its authorized share capital
is Rs50, 000,000 and its paid up capital is Rs30, 880,000.

Navya foods p.v.t ltd annual general meeting (AGM) was last held on 26
september2014 and as per records from ministry of corporate affairs (MCA), its balance
sheet was testified on March 2014.
Directors of Navya foods p.v.t ltd ate Ramesh sriramineni and raja
sekarpathi.

Company information

Corporate identification number : U15500AP2009PTC064651

Company name : NAVYA FOODS PRIVATE LIMITED

ROC : Hyderabad

Registration number : 64651

Company category : company limited by shares

Company sub category : Indian non – Government Company

Authorized capital (in RS) : 50, 00,000

Paid up capital (in RS) : 30,880,000

Number of members : applicable I case of company without share capital

Date of incorporation : 05 august 2009

Email id : navyafoods@gmail.com

Address : kanipakam

Address : No.6, N.No.3-38

City : Chittoor

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Sate : Andhra Pradesh

Country : India

Weather listed or not : unlisted

Date of last AGM :

Date of balance sheet :

Company status (for filing) : active

Navya foods p.v.t ltd has developed state of the fruit processing facility to process and produce
natural tropical fruit puree fresh fruits and concentrates. Out plant is strategically located within
the vicinity f largest fruits/vegetable producing districted like Chittoor, anamthapuram, Kadapa
and Nellore in Andhra Pradesh.

Navya foods pv.t. Ltd. is a fruit processing company to provide the best in class tropical fresh
fruits, vegetable, pulp puree and concentrates our products are processed in world-class food
processing plants which follow international benchmarks.

The firm firmly believes the local farming community is the source of strength for our
organization. With back ward integration as the core model, it’s encourage the local farming
community to tale up fruits/vegetable cultivation and enables sustainable economic growth.

This industries could emphasize on the best practices, proven , methodologies and world class
quality food processing benchmarks .in a phased manner, we poised to help the industry and nation
in general and farmers community in particular.

In the fruit processing plant, we have the most modern, world –class and total export oriented fruit
processing facility. We have all operations from to finished product delivery is computer
controlled.

Fruit products provided by navya foods p.v.t Ltd, are fully quality driven we are indeed proved to
be associated with them.

Mango puree and concentrate are produced in a more hygienic environment under the surveillance
of highest quality standards and food industry benchmarks, mango puree is produced by processing
fruit processing includes.
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 Cleaning
 Washing
 Draining
 Sorting
 Resection.

Mango puree is then packed, stored and shipped according to the best manufacturing
practices. We have different breeds of mango puree from India and other countries the
puree produced by us is used mainly in juices, nectar, body foods safety foods.
Mango puree is produced from fully reopened mango fruits both from India and imported
from other country we follow stringent guidelines and fruit processing practices without using any
additives or food preservatives.

Mango concentrate is prepared using fresh and mature fruits. The process incudes:

 Pulp extraction
 Enzymatic deactivation
 Evaporation
 Enzyme addition
 Sterilizations.
The division combines people with experience in agaric trading with navy foods p.v.t ltd
groups credibility to justify its premier standing area .the division was set up in1967 and
since the handled a wide range of products such as sesame seeds processed fruits , food
aqua etc.

Navya foods p.v.t ltd 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 partnership across the value chain especially fruit procurement.

Product profile
Mango puree and concentrate:

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Mango puree and concentrate our mango puree produced in a more hygienic environment
under the surveillance of highest quality standard and foods industry benchmarks. Mango
puree is produced fresh fruit specially selected. The fruit processing includes:
 Cleaning
 Washing
 Draining
 Sorting
 Inspection.

Mango puree is then packed stared and shipped according to the best manufacturing practices we
have different brands are mango puree from India and other countries the pure produced by us is
used mainly in jelly foods mango concentrate is prepared using fresh and nature fruit the process
includes:

 Pulp extraction
 Enzi mastic deactivation
 Evaporation
 Enzyme addition
 Sterilization.

Guava puree and concentrate:

Guava are growth tropical and subtropical region guava pulp is available in sour taste , off white
or pink color with the seeds in the center of the pulp or read pulp it all depends on species guava
is known to be in colors and high in vitamin and anti-inflammatory agent.

Guava is also very delicious and is considered with consumer acceptability because it is having
unique aroma and flavor with rich vitamins a and c, guava high levels of dietary fiber guavas
considered as one of the super fruits by nutritionists.

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At navya foods pvt ltd guava puree is aseptically, manufactured from the best quality guava fruits
free of insects and diseases. Generally guava puree is creamy in texture and conforms to highest
industry foods quality standards, we different guava breeds from India and other countries. We
have white as well as pink guava breeds from India and other countries. We have white as well as
pink guava puree all the puree is free from stone cells our guava puree is aseptically processed
which is creamy powerful flavor.

Its manufacture guava concentrate using fresh, hygienic and nature guava fruit at our processed
aseptically as:

Mango puree is produced from fully ripened mango fruits both form India and imported from other
countries. we follow stringent guidelines and fruit processing practices without using any additives
or food preservatives.

Mango concentrate is prepared using fresh and nature fruits. The process includes:

 pure concentration
 enzymatic deactivation
 evaporation
 enzyme addition
 sterilizations
 cold extractor grinding
At navya foods p.v.t ltd we produce pink guava concentrate as well as white guava concentrate.
These are mainly used in beverages, ice- creams, jams, jellies, sauces, etc.

Tomato puree and concentrate:

While processing tomato paste skin and seeds are remove, then water content is removed through
evaporation our automated processes ensure to retain the flavor, color and richness of the paste

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Funds flow statement NAVYA FOODS

puree to concentrate. The processed tomato puree to concentrate. The processed packed in to
customized aseptic contains.

Manufacturing practices (GMP) to maintain good quality and consistency our tomato puree or a

 food soups
 stews
 sauces
 curries
 chutneys
 ketchups
 casseroles
 vinaigrettes
 Any other dish where the tomato flavor is required.
Papaya puree and concentrate:

Papaya puree and concentrate are derived fresh, full ripen and red/yellow papaya which are free
prom insects and bacteria. Our products are prepared by special thermal free from any food
additives or food preserve.

Through papaya fruits are majorly available in central and such America they are also cultivate
in other part of the world papaya fruit are available with black such , yellow or red color based on
the variety . Papaya fruit are normally bell- shaped as one end smaller compared to other side their
outer skin is smooth and leathery.

It change from green to yellow as it ripens fully ripened papaya fruit are juicy sweet in taste
resembles cantaloupe fruits in flavor .

These fruit contain valuable digestive properties total diet papaya fruit are considered as one the
best nutritious fruit by dieticians.

A medium size papaya fruit contains:

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Funds flow statement NAVYA FOODS

 118 calories of energy

 Carotenes
 Vitamin c
 flavonoids
 vitamin b
 folate
 pantothenic acid
 vitamin e
 vitamin k
 potassium and magnesium minerals
 Fiber (which help in in lowering the cholesterol in human body).
Corporate profile:

navya foods private ltd is a 100 percent export oriented state of the art fruit processing place
established in 2008 in midazolam (villa & post) irala mandala at Chittoor dist. of andhrpradesh
leveraging on the strength of farmer community we have developed the various processing
methodology at our plant are powered by would class equipment’s.

Vision:

By leveraging on profession are team and adopting scalable service mode we aim to become a
single stop solution to process all white label fruit pulp products with strategic heat works of
processing units across India.

This plant is strategically located within the vanity of the best tropical fruits and vegetables
growing districts like Ananta pure , Kadapa and encore that yield the quality mango banana that
yield the quality mango banana guava , papaya and tomato and abundance.

The company processing plant has accomplishes and complaint with all word class quality
standards and bench marks. At navya foods p.v.t l.td. our fruit processing plant is capable

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Funds flow statement NAVYA FOODS

processing and refining fruit products with special focus and specific and process concentrates
from various varieties of fruits such as mango, banana .etc.,

The firm emphasis an supporting production enhancement activities at for improved the pre and
post-harvest practices, efficient logistics from form to the plant, scientific quality bench marks and
training then on advanced forming techniques.

Navya foods p.v.t ltd processing facility is situated near Chittoor district in Andhra Pradesh with
usage of world-class equipment and technology. We are poised to become one of the best food
processing facilities in India on par with global standards.

Our plant is currently has facility to process entire range of tropical fruit puree, fresh fruits
concentrates and vegetables best-in-class food processing technology.

Our plant is equipped with world class fruit puree processing a septic filling line to produce fresh
and natural fruits pulps and hygienic fruit processing with aseptic packing facility.

All navya foods p.v.t ltd we use the advanced technology facilities such as:

 Fully plc operated equipment’s for effective quality control.

 Adopting the best industry benchmarks for efficient monitoring and operating with
supervisory units.
 Two level cleaning of fruits to ensure world-class quality standards.
 Precision sterilization to preserve the natural taste, flavor and operations.
 Effective usage of enterprise applications for effective data for analysis and reporting.

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Effective plant design:

These plant is planned and developed by taking following lay out factors in to
consideration:

 Effective power distribution and power backup facilities for continuous power and steam
supply.
 Word class line process flow design ensure hygienic conditions in the entire processing.
 Specially designed epoxy flooring to maintain optimum clean lines.
 All the corners are specially optioned with food grade epoxy walls to reduce dust and
enable easy cleaning.
 Arrangements of this raise insolated roof with double layered GI sheet to all interiors with
almost clean and tidy.

Product lines:

Its plant includes both canning and aseptic product lines and has combined capacity of
producing 20 tons per hour.

Domain expertise:

Navya foods p.v.t ltd is driven by domain related support and food processing industry experts.
Our core team is having personnel with technical qualifications quality certifications exposure into
world. Class food processing industry delivery model.

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CHAPTER-IV

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CHAPTER-IV

Statement of changes in working capital for the year 2014-2015

2014 2015 changes in
particulars working capital
Increase decrease
Current Assets:(A)

Closing stock 97,29,806.52 2,25,36,949.42 12,807,142.9

Deposits 14,81,167.88 16,34,022.88 1,52,855

Loans and Advances 1,32,04,270.71 35,01,518.00 9,70,2752.81

Sundry Debtors 3,15,84,893.15 2,51,68,330.59 6,41,656,2.560

Cash-in-hand 4,49,432.87 1,24,245.00 325,18,7.870

Total Current
5,64,76,107.73 52,99,160.39
Assets:(B)

Current liability
Loans liability

Bank Loans 3,53,94,579.00 3,68,93,786.00 1,49,9207.0 1,77,442.0

Provisions& current 1,25,961.00 1,08,219.00

liability
3,66,54,240.00 3,79,76,005.00
Total current liability

Networking Capital: 1,98,21,867.73 1,50,15,59,739

(A-B)
Decreasing in 48,60,270.3
Networking Capital

Total 1,98,21,867.73 1,98,21,867.689 16,62,14,45.11 16,62,14,45.11

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Funds flow statement NAVYA FOODS

Calculation of funds from operation:

Profit during the year
Reserve and surplus=6240384-1947982
Funds from operations=12480767

Funds flow statement for the year 2014-2015

Sources Amount Applications Amount
Funds from operations 12480768 Purchases of fixed 12287038
assets
Decreasing net working
capital 480270

17287038 17287038

Interpretation:
The above table shows that during the year 2014-2015, the major sources of funds from
operations decrease in net working capital and the major application of funds are purchase of fixed
assets.

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 Funds flow statement NAVYA FOODS

Statement of changes of working capital for the year 2015-2106

Particulars 2015 2016 Changes in working capital

Increase Decrease

Current assets:
closing stock 22536949.42 31685850.51 9148901

deposits 157731313
1634022.88 3211336.05

loans and advances 3501518.00 10845794.0 7334476

sundry debtors 25168330.0 79052510.61 53884180

cash-in-hand 921352
124245.0 1045597.0
bank accounts
26536.50 26536.00 ……….. …….

total current assets (A) 67697601.38 125867624.6

`
current liabilities : 151365.7
1082219 2595854.70
provision
12821903 340381.25 12481521.0
sundry creditors

total current liabilities(B) 13904122 2936235.9

53793479 122931388.7
increasing working
capital 11766406.6

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 Funds flow statement NAVYA FOODS

Total 65559885.60 122931388.7 24642722.70 61228456.00

Calculation of funds from operations:

Profit during the year
Reserves and surplus = 19479822-34146575.6
Funds from operations 146667.356

Funds flow statement for the year 2015-2016

Sources Amount Applications Amount

Funds from operations 14666753.6 Purchases of fixed assets 2900347

Increasing in net working

capital 11766406.6

1466753.6
1466753.6

Interpretation:
The above table shows that during the year 2014-2015, the major sources of funds from
operations decrease in net working capital and the major application of funds are purchase of fixed
assets.

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Funds flow statement NAVYA FOODS

Statement of changes of working capital for the year 2016-2017

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 Funds flow statement NAVYA FOODS

Particulars 2016 2017 Changes in working capital

increase decrease
Current asset:
Closing stock
31685850.5 105568.075 7388224.5
Deposits
3211336.0 1631236 1580100
Loans and advance
1,08,45,794
1,45,74,081 3,728,287
Sundry debtors
7,90,52,510,6
1,70,99,303 61,953,207,6
Cash-in –hand
10,45,597 61,326 98,4271
Bank accounts
26,536,5 24489.5 2,047

Total assets 1258,67,624.6 13,89,5854

`
Current liabilities:

Bank loans 8014665

10,9825,329 296,78664
Unsecured loans 511,52,000 71958750
20866750
Provisions 25,95,854,70 1865185,8
2577202
Sundry creditors 340,381 98297512
97957

Total liabilities [B] 155,913,564,9 1,116,536,838

947532387
Net working capital[A-B] 30,045,940.3 977578,327
Increasing net working
capital

Total 30045940.3 30045940.3 31977261 632988318

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Funds flow statement NAVYA FOODS

Calculation of fund from operation

Reserves and surplus [34146575.6-34465756]
Funds from operations=10775519842.
Funds from operation
Sources Amount Applications Amount

Funds from operations 1075519842 Purchases of fixed assets 127987455

Increasing net working

capital 947532387

1075519842 105519842

Interpretation:
The above table shows that during the year 2016-2017 the major sources funds are funds from
operations. The major the application of funds are purchases of fixed assets.

Statement of changes of working capital for the year 2017-2018

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 Funds flow statement NAVYA FOODS

Particulars 2017 2018 Changes in working capital

Increase Decrease
Current assets:

Closing stock
105568075 62506531.5 43061543.5
Deposits
1631236 2681012 1049776
Loans and advances
1457081 17342949 15885868
Sundry debtors
17099303.6 11489740 56095863.6
Cash-in-hand
61326 8215 43111.0
Bank accounts
24489.5 424489.5 400000

Total assets : 138958511 944462938

Current liabilities:
Bank O.D 29678664 30113868 435204
12786437
Secured loans 84447519 71661082

Un-secured loans 71958750 70734191 1224559

2129063
provisions 186518.8 3994249

98297512 39217672 59079840

Sundry debtors

286247631 215721062

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 Funds flow statement NAVYA FOODS

Net working capital 147289120 121258124

Increasing net working 26030996

capital

121258124 121258124 77715247 63629717

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Funds flow statement NAVYA FOODS

Funds from operations:

Reserve and surplus =34146575.6
=44890851.5
Funds from operation =41927915.0

Funds from operation

Sources Amount Applications Amount

Funds from operations 107442755.9 Purchase of fixed assets 15896919.5

26030996
Decrease in net working
capital

41927915.50 41927915.6

Interpretation:
The above table shows that during the year 2014-2015, the major sources of funds from
operations decrease in net working capital and the major application of funds are purchase of fixed
assets.

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Funds flow statement NAVYA FOODS

Year Funds from operations

2014-2015 124808767
2015-2016 14667.356
2016-2017 1075519842
2017-2018 41927915

1.2E+09

1E+09

800000000

600000000

400000000

200000000

0
1 2 3 4 5

year funds from operations

Interpretation:
The above table shows that during the year 2014-2015, the major sources of funds from
operations decrease in net working capital and the major application of funds are purchase of fixed
assets.

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Funds flow statement NAVYA FOODS

CHAPTER-V

Major findings of the study:

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Funds flow statement NAVYA FOODS

 During the study period 2014-18, the major source of funds are funds from operations and
fair value change account.
 The major applications of funds are purchase of fixed assets.
 The net working capital is in increasing trend except in the years 2014-15 and 2016-17.
 The funds from operations is in increasing trend except in the years 2014-2015 and 2017-18.

Suggestions:

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Funds flow statement NAVYA FOODS

1. The firm should continue the utilization of its long term funds for capital assets in order to
enhance the performance of the firm.

2. The firm optimum working capital in order to meet the short debt obligations.

3. The firm should focus on expenses control in order in order to increase the funds from
operations.

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Conclusion

The funds flow performance of the company is satisfactory. The firm should utilize its long
term funds for investment in capital assets for survival of the company.

Bibliography

References:
 M.Y Khan and P.K Jain financial management, Tata Mc Grail publishing CO LTD New
Delhi.
 I.M panda financial management, Visas publishing house private LTD New Delhi.
 Parana Chandra, financial management, Tata McGraw-Hill publishing co. LTD., New
Delhi.

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Websites:
WWW.WIKPEDIA.COM
WWW.UICC.CO.IN

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