“A STUDY ON CASH FLOW T ANALYSIS IN

DODLA DAIRY PVT, LTD., PALAMANER”

Project Synopsis submitted in partial fulfillment of the requirement for the

Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
Of
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY,
ANANTHAPUR

By
Name: C. RAJASEKHAR REDDY

Reg. No. 17AK1E0074

Under the guidance of

Mrs.E.KUSUMA, M.B.A.,
Assistant Professor

Department of MBA

DEPARTMENT OF MANAGEMENT STUDIES

ANNAMACHARYA INSTITUTE OF TECHNOLOGY & SCIENCES
TIRUPATI-517520
MBA 2017-2019

STUDENT SIGNATURE: GUDIE SIGNATURE:

DATE:

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1.INTRODUCTION:
Cash Flow Analysis
Cash Flow Analysis is a summarized statement showing cash inflows and cash
outflows of operating, financing and investing nature over a specific period of time. It
requires opening and closing balance sheet and also profit and loss account. Cash comprises
cash on hand and demand deposits with banks. Cash equivalents are short term, highly liquid
investments that are readily convertible into known amounts of cash and which are subject to
an insignificant risk of changes in value.
Cash flows are inflows and outflows of cash and cash equivalents. Operating
activities are the principal revenue-producing activities of the enterprise and other
activities that are not investing or financing activities. Investing activities are the
acquisition and disposal of long-term assets and other investments not included in cash
equivalents. Financing activities are activities that result in changes in the size and
composition of the owners’ capital (including preference share capital in the case of a
company) and borrowings of the enterprise.
2. INDUSTRY PROFILE
GENERAL INTRODUCTION
The progress of mankind and civilization has, since began, been closely alike with his
diet. Even today the leading nation and nations capable of becoming strong are those, which
can obtain food in abundance for their people.

CONSTITUTENTS OF MILK PERCENTAGE

Water 87.0
Butterfat 4.0
Casein 2.0
Albumin 0.5
Lactose(Milk sugar) 5.0
Minerals 0.7

3. COMPANY PROFILE
DODLA DAIRAY PVT.LTD. Was incorporated under the companies Act 1956 as a
public limited companies 5th June 1992. The promoters have long and varied experience in
administration as well as management of business.

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 DDPL entered the capital market on 17 th November 1994 with an issue of 65,00,000
equity share of Rs.10/- each for cash at par to the India investing public. The Issue was over –
subscribed by about 54 times, an indication of the rich confidence of the promoter who enjoy
with the investing in community.

Mission & Vision

Mission
To supply good and safe milk products consistently through continual improvement
of our systems and pratices.

Vision
 To be a world class dairy company by providing high quality products and services

To achieve this by delighting customers with "Fresh and Healthy" food products,
those are a benchmark for quality in the industry.

We are committed to enhanced prosperity and the empowerment of the farming

community through our unique "Relationship Farming" Model.

To be a preferred employer by nurturing entrepreneurship, managing career aspirations

and providing innovative avenues for enhanced employee prosperi

4. REVIEW OF LITERATURE:

DEFINITIONS:
Cash equivalents are short-term, highly liquid investments that are readily convertible
into known amounts of cash and which are subject to an insignificant risk changes in value.

Cash flows are inflows and outflows of cash and cash equivalents.

Operating activities are the principal revenue-producing activities of the enterprise

and other activities that are not investing or financing activities.

Investing activities are the acquisition and disposal of long-term assets and other
investments not included in cash equivalents.

5. Need For the Study

The need for cash flow analysis is show the firm’s cash is being generated (cash inflows), and
where its cash is being spent (cash outflows), over a specific period of time (usually a
financial year). Through cash flow analysis, a financial analyst will understand the short-term

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liquidity and long-term solvency of the firm. Hence, there is a need to understand that how
the cash flow is taking place through various activities in between opening and closing dates
of a financial year. However, the cash flow analysis serves the following purposes:
1.Cash flow statement aims at highlighting the cash generated from operating activities.
6. Scope of the Study
1. It helps to take short term financial decision.
2. It indicates the cash requirement needed for plant or equipment expansion program.
3. To find strategies for efficient management of cash.
4. It helps to arrange needed funds on the most favourable terms.
5. It helps to meet routine cash requirement to finance the transaction.
6. It reveals the liquidity position of the firm by highlighting the various sources of cash
and its uses.
7. Objectives of study:

1. To understand cash flows from operating, financing and investing activities of the
firm.
2. To tell how much cash came during the period and how much cash went out and
what is the net cash flow during the period.
3. To explain the causes for changes in cash balance during the financial year.
4. To study the cash &cash equality.
5. To study the solvency of the business in the short term.

8. Research methodology:
The secondary data was also collected from the already published sources such as
pamphlets, annual reports, and internal records.
 Collection of required data from annual report of DODLA DAIRY LIMITED,
Chittoor.
 Reference from text book and journals.
 Articles published in business newspapers like Economic times, Business line, etc.

PERIOD OF THE STUDY

The period of the study used in this project is 5 years. Here, I am using financial
statements from 2013 to 2017. Five years of Balance Sheets and Profit and Loss Accounts of
Dodla Dairy Limited are used to analyze the cash flow analysis.

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SECONDARY DATA:
Secondary data comprises of information obtained from ratio analysis and ratio
analysis estimates of other financial statements files and other important documents
maintained by the organization are also the helpful.

9.Limitations of study:

1. The study based on finance reports.

2. The study is limited to the five years only (2014-15 to 2017-18).
3. Limited time doesn’t allow doing more analysis.
4. The reliability of the study is reduced because of the uncertainty of cash forecasts.
5. Collections may be delayed or unanticipated demands may cause large
disbursements.
6. It fails to highlight the significant movement in the working capital items.
7. The company may or mayn’t reveal the financial data to others.
8. Considering the information provided by the company to be true and the correct the
study works conducted.
10 a. Findings, suggestions, conclusion:

1. The more cash inflows are from operating activities compared to the investing and
financing activities.
2. The more cash outflows are from investing activities compared to the operating
and financing activities.
3. The organization used more cash to purchase the fixed assets in every year without
considering the sale proceeds.
4. The balances of cash and cash equivalents are fluctuated year by year.
5. The organization is needed to improve the dividend payments.
b. suggestions:

1. The organization needs to improve the cash inflows from investing activities.
2. The organization tries to reduce the more cash outflow from investing activities
compared to operating activities and financing activities.
3. The organization needs to concentrate on sale proceeds rather than unnecessary
purchasing of fixed assets and investments.
4. The organization needs to maintain the cash and cash equivalents up to the standard levels
consistently.

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C. Conclusion:

1. The more cash inflow comes from operating activities because of more cash sales
and more cash received from suppliers and employees.
2. The more cash inflow comes from financing activities also because of issuing shares
and proceeds from long term borrowings.
3. The more cash outflow goes out from investing activities because the organization
invest more in purchasing of fixed assets and investments.
4. The cash and cash equivalents are shows increasing trend in 1st year (2014), 2nd
year (2015) decreases and further 3 years (2016, 2017 &2018) shows increasing
trend.
10. Bibliography:

 M. Pandey – Financial Management – 10th edition (2010), Vikas publishing house

private limited, New Delhi.
 Prasanna Chandra – Financial Management - 6th edition (2004), Tata McGraw –
Hill publishing company limited, New Delhi.
 V.K.Bhalla – Financial Management and Policy – 6th edition (2007), ANMOL
publications private limited, New Delhi – 110002

WEB SITES :
http://WWW.GOOGLE.COM

http:// WWW.WIKIPEDIA.COM

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