SUMMER TRINING PROJECT REPORT ON

“Financial analysis Mahesh Namkeen and establishment in up”

 DECLARATION

This is to declare that I Sapna Devi student of MBA, have personally worked

on the project entitled “Financial analysis Mahesh Namkeen and

establishment in up” The data mentioned in this report were obtained during

genuine work done and collected by me. The data obtained from other sources

have been duly acknowledged. The result embodied in this project has not been

submitted to any other University or Institute for the award of any degree.

Date:

Place: Lucknow (Roll No.-1903600700057)

 ACKNOWLEDGEMENT

It is said that “accomplishment must be credited to those who have put the

foundation of particular chore”.Here i pay gratitude to my parents for lifting me

up till this phase of life.I am thankful for their love , trust, patient and support.

I wish to express my sincere gratitude to Miss Vidushi Srivastava , for

providing me an opportunity to do my project work on “Financial analysis

Mahesh Namkeen and establishment in up”.

Words defeat me in expressing my heartfelt thanks to my friends for their

help,love and constant encouragement during my project session.

 PREFACE

MBA (Finance) program is one of the most reputed professional courses

in the field of management. This course includes both theory and its application
contents of curriculum.

Summer training is an integral part of the MBA program, as each student

is required to undergo summer training from an institute of repute after 1 st Year.
As complimentary to that, every trainee has to prepare and submit a report on
the work conducts by the student during her Summer Training.

This report is in continuation of the above tradition. This summer training

was done at “Mahesh Namkeen”, The topic of the training was “Financial
analysis Mahesh Namkeen and establishment in up”.

During my training period, I did a summer training in Mahesh Namkeenunder

the guidance of market professionals at Mahesh Namkeen. This report is an

attempt to give an overview of Working capital management

 EXECUTIVE SUMMARY

This report is a research of the dissertation done at Mahesh NamkeenThe first

few pages of the report talk about an introduction to the financial analysis the

need for specialists in housing loan independently since their incorporation &

then with the profile of financial analysis. Hereafter the report talks about the

Research i.e. trend analysis of organization. Here we talk about the process of

financial analysis followed by principles of trend analysis. In the next few

pages an attempt has been made to clarify the details & descriptions which one

should know the qualities & reasons for benefits provided by Identify costs of

quality.

The last pages constitute of the findings of the Research & the conclusion.
 TABLE OF CONTENTS

Page No.

1. INTRODUCTION

2. COMPANY PROFILE

3. OBJECTIVES OF THE STUDY

4. RESEARCH METHODOLOGY

5. LIMITATIONS

6. DATA ANALYSIS AND INTERPREATATION

7. FINDINGS

8. CONCLUSION

9. BIBLIOGRAPHY

10.APPENDIX
INTRODUCTION
 INTRODUCTION

FINANCIAL ANALYSIS 

Financial analysis (also referred to as financial statement analysis or

accounting analysis or Analysis of finance) refers to an assessment of the

viability, stability and profitability of a business, sub-business or project.

It is performed by professionals who prepare reports using ratios that make use

of information taken from financial statements and other reports. These reports are

usually presented to top management as one of their bases in making business

decisions.

 Continue or discontinue its main operation or part of its business;

 Make or purchase certain materials in the manufacture of its product;

 Acquire or rent/lease certain machineries and equipment in the

production of its goods;

 Issue stocks or negotiate for a bank loan to increase its working capital;

 Make decisions regarding investing or lending capital;

 Other decisions that allow management to make an informed selection on

various alternatives in the conduct of its business.

Goals

Financial analysts often assess the following elements of a firm:

1. Profitability - its ability to earn income and sustain growth in both the short-

and long-term. A company's degree of profitability is usually based on

the income statement, which reports on the company's results of operations;

2. Solvency - its ability to pay its obligation to creditors and other third parties

in the long-term;

3. Liquidity - its ability to maintain positive cash flow, while satisfying

immediate obligations;

Both 2 and 3 are based on the company's balance sheet, which indicates the

financial condition of a business as of a given point in time.

4. Stability - the firm's ability to remain in business in the long run, without

having to sustain significant losses in the conduct of its business. Assessing a

company's stability requires the use of both the income statement and the

balance sheet, as well as other financial and non-financial indicators. etc.

Method

Financial analysts often compare financial ratios (of solvency, profitability, growth,

etc.):

 Past Performance - Across historical time periods for the same firm (the

last 5 years for example),

 Future Performance - Using historical figures and certain mathematical

and statistical techniques, including present and future values,

 Thisextrapolation method is the main source of errors in financial analysis as

past statistics can be poor predictors of future prospects.

 Comparative Performance - Comparison between similar firms.

These ratios are calculated by dividing a (group of) account balance(s), taken

from the balance sheet and / or the income statement, by another, for example :

Net income / equity = return on equity (ROE)

Net income / total assets = return on assets (ROA)

Asset Management Ratios gauge how efficiently a company can change

assets into sales.

Stock price / earnings per share = P/E ratio

Comparing financial ratios is merely one way of conducting financial

analysis. Financial ratios face several theoretical challenges:

 They say little about the firm's prospects in an absolute sense. Their insights

about relative performance require a reference point from other time periods

or similar firms.

 One ratio holds little meaning. As indicators, ratios can be logically

interpreted in at least two ways. One can partially overcome this problem by

combining several related ratios to paint a more comprehensive picture of

the firm's performance.

 Seasonal factors may prevent year-end values from being representative. A

ratio's values may be distorted as account balances change from the

beginning to the end of an accounting period. Use average values for such

accounts whenever possible.

 Financial ratios are no more objective than the accounting methods

employed. Changes in accounting policies or choices can yield drastically

different ratio values.

 Fundamental analysis.

Financial analysts can also use percentage analysis which involves reducing a

series of figures as a percentage of some base amount. For example, a group of

items can be expressed as a percentage of net income. When proportionate

changes in the same figure over a given time period expressed as a percentage is

known as horizontal analysis. Vertical or common-size analysis, reduces all

items on a statement to a “common size” as a percentage of some base value

which assists in comparability with other companies of different sizes. As a

result, all Income Statement items are divided by Sales, and all Balance Sheet

items are divided by Total Assets.

Another method is comparative analysis. This provides a better way to

determine trends. Comparative analysis presents the same information for two

or more time periods and is presented side-by-side to allow for easy analysis.
WORKING CAPITAL

Working capital, also known as net working capital or NWC, is a financial

metric which represents operating liquidity available to a business. Along with

fixed assets such as plant and equipment, working capital is considered a part of

operating capital. It is calculated as current assets minus current liabilities. If current

assets are less than current liabilities, an entity has a working capital

deficiency, also called a working capital deficit.

Net Working Capital = Current Assets − Current Liabilities

A company can be endowed with assets and profitability but short of liquidity if its

assets cannot readily be converted into cash. Positive working capital is required

to ensure that a firm is able to continue its operations and that it has sufficient

funds to satisfy both maturing short-term debt and upcoming operational

expenses. The management of working capital involves managing inventories,

accounts receivable and payable and cash.

Calculation

Current assets and current liabilities include three accounts which are of

special importance. These accounts represent the areas of the business where

managers have the most direct impact:

  accounts receivable (current asset)

 inventory (current assets), and

 accounts receivable (current asset)

Accounts receivable

Accounts receivable (A/R) is one of a series of accounting transactions dealing

with the billing of customers who owe money to a person, company or

organization for goods and services that have been provided to the customer. In

most business entities this is typically done by generating an invoice and mailing

or electronically delivering it to the customer, who in turn must pay it within an

established timeframe called credit or payment terms.

An example of a common payment term is Net 30, meaning payment is due in

the amount of the invoice 30 days from the date of invoice. Other common

payment terms include Net 45 and Net 60 but could in reality be for any time

period agreed upon by the vendor and the customer.

While booking a receivable is accomplished by a simple accounting transaction,

the process of maintaining and collecting payments on the accounts receivable

subsidiary account balances can be a full time proposition. Depending on the

industry in practice, accounts receivable payments can be received up to 10 - 15

days after the due date has been reached. These types of payment practices are
sometimes developed by industry standards, corporate policy, or because of the

financial condition of the client.

On a company's balance sheet, accounts receivable is the amount that customers

owe to that company. Sometimes called trade receivables, they are classified as

current assets assuming that they are due within one year. To record a journal

entry for a sale on account, one must debit a receivable and credit a revenue

account. When the customer pays off their accounts, one debits cash and credits

the receivable in the journal entry. The ending balance on the trial balance sheet

for accounts receivable is always debit.

Business organizations which have become too large to perform such tasks by

hand (or small ones that could but prefer not to do them by hand) will generally

use accounting software on a computer to perform this task.

Associated accounting issues include recognizing accounts receivable, valuing

accounts receivable, and disposing of accounts receivable.

Accounts receivable departments use the sales ledger. Accounts receivable is

more commonly known as Credit Control in the UK, where most companies

have a credit control department.

Other types of accounting transactions include accounts payable, payroll, and trial

balance.
Since not all customer debts will be collected, businesses typically record an

allowance for bad debts which is subtracted from total accounts receivable.

When accounts receivable are not paid, some companies turn them over to third

party collection agencies or collection attorneys who will attempt to recover the debt

via negotiating payment plans, settlement offers or legal action. Outstanding

advances are part of accounts receivables if a company gets an order from its

customers with payment terms agreed in advance. Since no billing is being done

to claim the advances several times this area of collectible is not reflected in

accounts receivables. Ideally, since advance payment is mutually agreed term, it

is the responsibility of the accounts department to take out periodically the

statement showing advance collectible and should be provided to sales &

marketing for collection of advances. The payment of accounts receivable can

be protected either by a letter of credit or by Trade Credit Insurance.

Companies can use their accounts receivable as collateral when obtaining a loan

(asset-based lending) or sell them through factoring. Pools or portfolios of accounts

receivable can be sold in the capital markets through a securitization.

Book keeping for Accounts Receivable

Companies have two methods available to them for measuring the net value of

account receivables, which is computed by subtracting the balance of an

allowance account from the accounts receivable account.

The first method is the allowance method, which establishes a liability account,

allowance for doubtful accounts, or bad debt provision, that has the effect of

reducing the balance for accounts receivable. The amount of the bad debt

provision can be computed in two ways - either by reviewing each individual

debt and deciding whether it is doubtful (a specific provision) or by providing

for a fixed percentage, say 2%, of total debtors (a general provision). The

change in the bad debt provision from year to year is posted to the bad debt

expense account in the income statement.

The second method, known as the direct write-off method, is simpler than the

allowance method in that it allows for one simple entry to reduce accounts

receivable to its net realizable value. The entry would consist of debiting a bad

debt expense account and crediting the respective account receivable in the

sales ledger.

The two methods are not mutually exclusive, and some businesses will have a

provision for doubtful debts and will also write off specific debts that they know

to be bad (for example, if the debtor has gone into liquidation.)

For tax reporting purposes, a general provision for bad debts is not an allowable
[1]
deduction from profit - a business can only get relief for specific debtors that

have gone bad. However, for financial reporting purposes, companies may

choose to have a general provision against bad debts in line with their past
experience of customer payments in order to avoid over stating debtors in the

balance sheet.
 INVENTORY

Inventory is a list for goods and materials, or those goods and materials

themselves, held available in stock by a business. It is also used for a list of the

contents of a household and for a list for testamentary purposes of the possessions

of someone who has died. In accounting inventory is considered an asset.

Origins of the word Inventory

The word inventory was first recorded in 1601. The French term inventaire, or

"detailed list of goods," dates back to 1415. Inventory management is primarily

about specifying the size and placement of stocked goods. Inventory

management is required at different locations within a facility or within multiple

locations of a supply network to protect the regular and planned course of

production against the random disturbance of running out of materials or goods.

The scope of inventory management also concerns the fine lines between

replenishment lead time, carrying costs of inventory, asset management,

inventory forecasting, inventory valuation, inventory visibility, future inventory

price forecasting, physical inventory, available physical space for inventory,

quality management, replenishment, returns and defective goods and demand

forecasting.

Other definitions of inventory management from across the web:

Involves a retailer seeking to acquire and maintain a proper merchandise

assortment while ordering, shipping, handling, and related costs are kept in

check.

Systems and processes that identify inventory requirements, set targets, provide

replenishment techniques and report actual and projected inventory status.

Handles all functions related to the tracking and management of material. This

would include the monitoring of material moved into and out of stockroom

locations and the reconciling of the inventory balances. Also may include ABC

analysis, lot tracking, cycle counting support etc.

Management of the inventories, with the primary objective of

determining.controlling stock levels within the physical distribution function to

balance the need for product availability against the need for minimizing stock

holding and handling costs.

In business management, inventory consists of a list of goods and materials held

available in stock.

An inventory can also be a self examination, a moral inventory.

Labels: Inventory Management, Procurement, Supply Chain, Supply Chain

Management
Business inventory

The reasons for keeping stock

There are three basic reasons for keeping an inventory:

1. Time - The time lags present in the supply chain, from supplier to user at

every stage, requires that you maintain certain amount of inventory to use

in this "lead time"

2. Uncertainty - Inventories are maintained as buffers to meet uncertainties

in demand, supply and movements of goods.

3. Economies of scale - Ideal condition of "one unit at a time at a place

where user needs it, when he needs it" principle tends to incur lots of

costs in terms of logistics. So bulk buying, movement and storing brings

in economies of scale, thus inventory.

All these stock reasons can apply to any owner or product stage.

 Buffer stock is held in individual workstations against the possibility that

the upstream workstation may be a little delayed in long setup or change-over

time. This stock is then used while that change-over is happening. This stock

can be eliminated by tools like SMED.

These classifications apply along the whole Supply chain not just within a facility

or plant.
Where these stocks contain the same or similar items it is often the work

practice to hold all these stocks mixed together before or after the sub-process

to which they relate. This 'reduces' costs. Because they are mixed-up together

there is no visual reminder to operators of the adjacent sub-processes or line

management of the stock which is due to a particular cause and should be a

particular individual's responsibility with inevitable consequences. Some plants

have centralized stock holding across sub-processes which makes the situation

even more acute.

Special terms used in dealing with inventory

 Stock Keeping Unit (SKU) is a unique combination of all the components

that are assembled into the purchasable item. Therefore any change in the

packaging or product is a new SKU. This level of detailed specification

assists in managing inventory.

 Stockout means running out of the inventory of an SKU.[1]

 "New old stock" (sometimes abbreviated NOS) is a term used in business to

refer to merchandise being offered for sale which was manufactured long

ago but that has never been used. Such merchandise may not be produced

any more, and the new old stock may represent the only market source of

a particular item at the present time.

Typology

1. Buffer/safety stock

2. Cycle stock (Used in batch processes, it is the available inventory

excluding buffer stock)

3. De-coupling (Buffer stock that is held by both the supplier and the user)

4. Anticipation stock (building up extra stock for periods of increased

demand - e.g. ice cream for summer)

5. Pipeline stock (goods still in transit or in the process of distribution - have

left the factory but not arrived at the customer yet)

Inventory examples

While accountants often discuss inventory in terms of goods for sale,

organizations - manufacturers, service-providers and not-for-profits - also have

inventories (fixtures, furniture, supplies, ...) that they do not intend to sell.

Manufacturers', distributors', and wholesalers' inventory tends to cluster in

warehouses. Retailers' inventory may exist in a warehouse or in a shop or store

accessible to customers. Inventories not intended for sale to customers or to

clients may be held in any premises an organization uses. Stock ties up cash and
if uncontrolled it will be impossible to know the actual level of stocks and

therefore impossible to control them.

While the reasons for holding stock are covered earlier, most manufacturing

organizations usually divide their "goods for sale" inventory into:

 Raw materials - materials and components scheduled for use in making a

product.

 Work in process, WIP - materials and components that have begun their
transformation to finished goods.
 Finished goods - goods ready for sale to customers.
 Goods for resale - returned goods that are salable.
 Spare parts

For example:

Manufacturing

A canned food manufacturer's materials inventory includes the ingredients to

form the foods to be canned, empty cans and their lids (or coils of steel or

aluminum for constructing those components), labels, and anything else (solder,

glue...) that will form part of a finished can. The firm's work in process includes

those materials from the time of release to the work floor until they become

complete and ready for sale to wholesale or retail customers. This may be vats

of prepared food, filled cans not yet labelled or sub-assemblies of food

components. It may also include finished cans that are not yet packaged into
cartons or pallets. Its finished good inventory consists of all the filled and

labelled cans of food in its warehouse that it has manufactured and wishes to

sell to food distributors (wholesalers), to grocery stores (retailers), and even

perhaps to consumers through arrangements like factory stores and outlet

centers.

Examples of case studies are very revealing, and consistently show that the

improvement of inventory management has two parts: the capability of the

organisation to manage inventory, and the way in which it chooses to do so. For

example, a company may wish to install a complex inventory system, but unless

there is a good understanding of the role of inventory and its perameters, and an

effective business process to support that, the system cannot bring the necessary

benefits to the organisation in isolation.

Typical Inventory Management techniques include Pareto Curve ABC Classification

and Economic Order Quantity Management. A more sophisticated method takes

these two techniques further, combining certain aspects of each to create The K

Curve Methodology. A case study of k-curve benefits to one company shows a

successful implementation.

Unnecessary inventory adds enormously to the working capital tied up in the

business as well as the complexity of the supply chain. Reduction and

elimination of these inventory 'wait' states is a key concept in Lean. Too big an
inventory reduction too quickly can cause a business to be anorexic. There are

well proven processes and techniques to assist in inventory planning and strategy,

both at business overview and part number level. Many of the big MRP/and

ERP systems do not offer the necessary inventory planning tools within their

integrated planning applications.

High level inventory management

It seems that around about 1880[2] there was a change in manufacturing practice

from companies with relatively homogeneous lines of products to vertically

integrated companies with unprecedented diversity in processes and products.

Those companies (especially in metalworking) attempted to achieve success

through economies of scope - the gains of jointly producing two or more

products in one facility. The managers now needed information on the effect of

product mix decisions on overall profits and therefore needed accurate product

cost information. A variety of attempts to achieve this were unsuccessful due to

the huge overhead of the information processing of the time. However, the

burgeoning need for financial reporting after 1900 created unavoidable pressure

for financial accounting of stock and the management need to cost manage

products became overshadowed. In particular it was the need for audited

accounts that sealed the fate of managerial cost accounting. The dominance of

financial reporting accounting over management accounting remains to this day

with few exceptions and the financial reporting definitions of 'cost' have
distorted effective management 'cost' accounting since that time. This is

particularly true of inventory.

Hence high level financial inventory has these two basic formulas which relate

to the accounting period:

1. Cost of Beginning Inventory at the start of the period + inventory purchases

within the period + cost of production within the period = cost of goods

2. Cost of goods − cost of ending inventory at the end of the period = cost of

goods sold

The benefit of these formulae is that the first absorbs all overheads of

production and raw material costs in to a value of inventory for reporting. The

second formula then creates the new start point for the next period and gives a

figure to be subtracted from sales price to determine some form of sales margin

figure.

Manufacturing management is more interested in inventory turnover ratio or

average days to sell inventory since it tells them something about relative

inventory levels.

Inventory turn over ratio (also known as inventory turns) = cost of goods sold /

Average Inventory = Cost of Goods Sold / ((Beginning Inventory + Ending

Inventory) / 2) and its inverse

Average Days to Sell Inventory = Number of Days a Year / Inventory Turn

Over Ratio = 365 days a year / Inventory Turn Over Ratio

This ratio estimates how many times the inventory turns over a year. This

number tells us how much cash/goods are tied up waiting for the process and is

a critical measure of process reliability and effectiveness. So a factory with two

inventory turns has six months stock on hand which generally not a good figure

(depending upon industry) whereas a factory that moves from six turns to

twelve turns has probably improved effectiveness by 100%. This improvement

will have some negative results in the financial reporting since the 'value' now

stored in the factory as inventory is reduced.

Whilst the simplicity of these accounting measures of inventory are very useful

they are in the end fraught with the danger of their own assumptions. There are

in fact so many things which can vary hidden under this appearance of

simplicity that a variety of 'adjusting' assumptions may be used. These include:

 Specific Identification

 Weighted Average Cost

 Moving-Average Cost

 FIFO .
Inventory Turn is a financial accounting tools for evaluating inventory and it is

not necessarily a management tool. Inventory management should be forward

looking. The methodology applied is based on historical cost of goods sold. The

ratio may not be able to reflect the usability of future production demand as well

as customer demand.

Business models including Just in Time (JIT) Inventory, Vendor Managed

Inventory (VMI) and Customer Managed Inventory (CMI) attempt to minimize

on-hand inventory and increase inventory turns. VMI and CMI have gained

considerable attention due to the success of third party vendors who offer added

expertise and knowledge that organizations may not possess.

Accounting perspectives

The basis of Inventory accounting

Inventory needs to be accounted where it is held across accounting period

boundaries since generally expenses should be matched against the results of

that expense within the same period. When processes were simple and short

then inventories were small but with more complex processes then inventories

became larger and significant valued items on the balance sheet. This need to

value unsold and incomplete goods has driven many new behaviours into

management practise. Perhaps most significant of these are the complexities of

fixed cost recovery, transfer pricing, and the separation of direct from indirect
costs. This, supposedly, precluded "anticipating income" or "declaring

dividends out of capital". It is one of the intangible benefits of Lean and the TPS

that process times shorten and stock levels decline to the point where the

importance of this activity is hugely reduced and therefore effort, especially

managerial, to achieve it can be minimised.

Accounting For Inventory

Each country has its own rules about accounting for inventory that fit with their

financial reporting rules.

So for example, organizations in the U.S. define inventory to suit their needs

within US Generally Accepted Accounting Practices (GAAP), the rules defined

by the Financial Accounting Standards Board (FASB) (and others) and enforced by

the U.S. Securities and Exchange Commission (SEC) and other federal and state

agencies. Other countries often have similar arrangements but with their own

GAAP and national agencies instead.

It is intentional that financial accounting uses standards that allow the public to

compare firms' performance, cost accounting functions internally to an

organization and potentially with much greater flexibility. A discussion of

inventory from standard and Theory of Constraints-based (throughput) cost accounting

perspective follows some examples and a discussion of inventory from a

financial accounting perspective.

The internal costing/valuation of inventory can be complex. Whereas in the past

most enterprises ran simple one process factories, this is quite probably in the

minority in the 21st century. Where 'one process' factories exist then there is a

market for the goods created which establishes an independent market value for

the good. Today with multi-stage process companies there is much inventory

that would once have been finished goods which is now held as 'work-in-

process' (WIP). This needs to be valued in the accounts but the valuation is a

management decision since there is no market for the partially finished product.

This somewhat arbitrary 'valuation' of WIP combined with the allocation of

overheads to it has led to some unintended and undesirable results.

Financial accounting

An organization's inventory can appear a mixed blessing, since it counts as an

asset on the balance sheet, but it also ties up money that could serve for other

purposes and requires additional expense for its protection. Inventory may also

cause significant tax expenses, depending on particular countries' laws

regarding depreciation of inventory, as in Thor Power Tool Company v.

Commissioner.

Inventory appears as a current asset on an organization's balance sheet because

the organization can, in principle, turn it into cash by selling it. Some
organizations hold larger inventories than their operations require in order to

inflate their apparent asset value and their perceived profitability.

In addition to the money tied up by acquiring inventory, inventory also brings

associated costs for warehouse space, for utilities, and for insurance to cover staff

to handle and protect it, fire and other disasters, obsolescence, shrinkage (theft

and errors), and others. Such holding costs can mount up: between a third and a

half of its acquisition value per year.

Businesses that stock too little inventory cannot take advantage of large orders

from customers if they cannot deliver. The conflicting objectives of cost control

and customer service often pit an organization's financial and operating

managers against its sales and marketing departments. Sales people, in particular,

often receive sales commission payments, so unavailable goods may reduce

their potential personal income. This conflict can be minimised by reducing

production time to being near or less than customer expected delivery time. This

effort, known as "Lean production" will significantly reduce working capital tied

up in inventory and reduce manufacturing costs (See the Toyota Production

System).

Inventory Accounting

By helping the organization to make better decisions, the accountants can help

the public sector to change in a very positive way that delivers increased value
for the taxpayer’s investment. It can also help to incentivise progress and to

ensure that reforms are sustainable and effective in the long term, by ensuring

that success is appropriately recognized in both the formal and informal reward

systems of the organization.

To say that they have a key role to play is an understatement. Finance is

connected to most, if not all, of the key business processes within the

organization. It should be steering the stewardship and accountability systems

that ensure that the organization is conducting its business in an appropriate,

ethical manner. It is critical that these foundations are firmly laid. So often they

are the litmus test by which public confidence in the institution is either won or

lost.

Finance should also be providing the information, analysis and advice to enable

the organizations’ service managers to operate effectively. This goes beyond the

traditional preoccupation with budgets – how much have we spent so far, how

much have we left to spend? It is about helping the organization to better

understand its own performance. That means making the connections and

understanding the relationships between given inputs – the resources brought to

bear – and the outputs and outcomes that they achieve. It is also about

understanding and actively managing risks within the organization and its

activities.
 FIFO VS. LIFO ACCOUNTING

When a dealer buys goods from inventory, the value of the inventory is reduced

by the cost of goods sold (COGS). This is simple where the COGS has not varied

across those held in stock; but where it has, then an agreed method must be

derived to evaluate it. For commodity items that one cannot track individually,

accountants must choose a method that fits the nature of the sale. Two popular

methods which normally exist are: FIFO and LIFO accounting (first in - first out,

last in - first out). FIFO regards the first unit that arrived in inventory as the first

one sold. LIFO considers the last unit arriving in inventory as the first one sold.

Which method an accountant selects can have a significant effect on net income

and book value and, in turn, on taxation. Using LIFO accounting for inventory, a

company generally reports lower net income and lower book value, due to the

effects of inflation. This generally results in lower taxation. Due to LIFO's

potential to skew inventory value, UK GAAP and IAS have effectively banned

LIFO inventory accounting.

STANDARD COST ACCOUNTING

Standard cost accounting uses ratios called efficiencies that compare the labour

and materials actually used to produce a good with those that the same goods

would have required under "standard" conditions. As long as similar actual and

standard conditions obtain, few problems arise. Unfortunately, standard cost

accounting methods developed about 100 years ago, when labor comprised the

most important cost in manufactured goods. Standard methods continue to

emphasize labor efficiency even though that resource now constitutes a (very)

small part of cost in most cases.

Standard cost accounting can hurt managers, workers, and firms in several

ways. For example, a policy decision to increase inventory can harm a

manufacturing managers' performance evaluation. Increasing inventory requires

increased production, which means that processes must operate at higher rates.

When (not if) something goes wrong, the process takes longer and uses more

than the standard labor time. The manager appears responsible for the excess,

even though s/he has no control over the production requirement or the

problem.

In adverse economic times, firms use the same efficiencies to downsize,

rightsize, or otherwise reduce their labor force. Workers laid off under those
circumstances have even less control over excess inventory and cost efficiencies

than their managers.

Many financial and cost accountants have agreed for many years on the

desirability of replacing standard cost accounting. They have not, however,

found a successor.

Theory of Constraints cost accounting

Eliyahu M. Goldratt developed the Theory of Constraints in part to address the cost-

accounting problems in what he calls the "cost world". He offers a substitute,

called throughput accounting, that uses throughput (money for goods sold to

customers) in place of output (goods produced that may sell or may boost

inventory) and considers labor as a fixed rather than as a variable cost. He

defines inventory simply as everything the organization owns that it plans to

sell, including buildings, machinery, and many other things in addition to the

categories listed here. Throughput accounting recognizes only one class of

variable costs: the trully variable costs like materials and components that vary

directly with the quantity produced.

Finished goods inventories remain balance-sheet assets, but labor efficiency ratios

no longer evaluate managers and workers. Instead of an incentive to reduce

labor cost, throughput accounting focuses attention on the relationships between

throughput (revenue or income) on one hand and controllable operating

expenses and changes in inventory on the other. Those relationships direct

attention to the constraints or bottlenecks that prevent the system from

producing more throughput, rather than to people - who have little or no control

over their situations.

 NATIONAL ACCOUNTS

Inventories also play an important role in national accounts and the analysis of the

business cycle. Some short-term macroeconomic fluctuations are attributed to the

inventory cycle.

Distressed inventory

Also known as distressed or expired stock, distressed inventory is inventory

whose potential to be sold at a normal cost has or will soon pass. In certain

industries it could also mean that the stock is or will soon be impossible to sell.

Examples of distressed inventory include products that have reached its expiry

date, or has reached a date in advance of expiry at which the planned market will

no longer purchase it (e.g. 3 months left to expiry), clothing that is defective or

out of fashion, and old newspapers or magazines. It also includes computer or

consumer-electronic equipment that is obsolescent or discontinued and whose

manufacturer is unable to support it. One current example of distressed

inventory is the VHS format.

Inventory credit

Inventory credit refers to the use of stock, or inventory, as collateral to raise

finance. Where banks may be reluctant to accept traditional collateral, for

example in developing countries where land title may be lacking, inventory credit
is a potentially important way of overcoming financing constraints. This is not a

new concept; archaeological evidence suggests that it was practiced in Ancient

Rome. Obtaining finance against stocks of a wide range of products held in a

bonded warehouse is common in much of the world. It is, for example, used with

Parmesan cheese in Italy. Inventory credit on the basis of stored agricultural

produce is widely used in Latin American countries and in some Asian

countries. A precondition for such credit is that banks must be confident that the

stored product will be available if they need to call on the collateral; this implies

the existence of a reliable network of certified warehouses. Banks also face

problems in valuing the inventory. The possibility of sudden falls in commodity

prices means that they are usually reluctant to lend more than about 60% of the

value of the inventory at the time of the loan.

 ACCOUNTS PAYABLE

(CURRENT LIABILITY)

Accounts payable is a file or account that contains money that a person or

company owes to suppliers, but has not paid yet (a form of debt). When you

receive an invoice you add it to the file, and then you remove it when you pay.

Thus, the A/P is a form of credit that suppliers offer to their purchasers by

allowing them to pay for a product or service after it has already been received.

The profession is unregulated, though there are international standard setting

bodies, an example of which is the International Accounts Payable Professionals

(IAPP), an association of more than 5,000 members in the United States,

Canada, the United Kingdom and other countries.[1] As part of its Professional

Standards Framework,[2] the IAPP has established a new definition of accounts

payable:

Accounts payable is a strategic, value-added accounting function that performs

the primary non-payroll disbursement functions in an organization. As such, the

AP operation plays a critical role in the financial cycle of the organization. AP

enables an organization to accomplish its objectives by bringing a systematic,

disciplined approach to evaluate and improve the effectiveness of the entire

payables process. In addition to the traditional AP activities whereby liabilities

to third-party entities (suppliers, vendors, taxing authorities, etc.) are recognized

and paid based on the credit policies agreed to between the company and its

suppliers, today's AP departments have taken on much wider roles including

fraud prevention, cost reduction, workflow system solutions, cash-flow

management, internal controls and vendor (supply chain) financing.

In households, accounts payable are ordinarily bills from the electric company,

telephone company, cable television or satellite dish service, newspapersubscription, and

other such regular services. Householders usually track and pay on a monthly

basis by hand using cheques or credit cards. In a business, there is usually a much

broader range of services in the A/P file, and accountants or bookkeepers usually

use accounting software to track the flow of money into this liability account when

they receive invoices and out of it when they make payments. Increasingly,

large firms are using specialized Accounts Payable Automation to automate the

paper and manual elements of processing an organization's invoices.

Commonly, a supplier will ship a product, issue an invoice, and collect payment

later, which creates a cash conversion cycle, a period of time during which the

supplier has already paid for raw materials but hasn't been paid in return by the

final customer.

When the invoice arrives it is matched to the packing slip and purchase order, and if

all is in order, the invoice is paid. This is referred to as the three-way match.
Quite a few organizations have been told that their vendors won’t be sending

paper invoices in the future. They insist on e-invoicing, fax or email. You can

take advantage of this new methodology in an organized manner. It’s not that

hard. Here’s what Accounts Payable Now & Tomorrow suggests:

1) Set up a single e-mail address to be used exclusively for the receipt of

invoices. Whoever is responsible for either processing the invoices that come

into this address or forwarding them for approval should have the password, as

should their backup and perhaps the department manager. The important thing

is the e-mail account not belong to one person but several in case of absences

etc.

2) Set up a dedicated fax number to be used for accounts payable invoices only.

Invoices can be retrieved throughout the day and integrated into the normal

accounts payable workflow.

3) Set up an e-fax facility to receive faxed invoices into an e-mail account. This

should eliminate the problem of illegible invoices.

4) Make sure your new e-mail address and fax number are included in all

correspondence with vendors, especially your New Vendor Welcome kit.

EXPENSE ADMINISTRATION

Expense administration is usually closely related to accounts payable, and

sometimes those functions are performed by the same employee. The expense

administrator verifies employees' expense reports, confirming that receipts exist to

support airline, ground transportation, meals and entertainment, telephone,

hotel, and other expenses. This documentation is necessary for tax purposes and

to prevent reimbursement of inappropriate or erroneous expenses. Airline

expenses are, perhaps, the most prone to fraud because of the high cost of air

travel and the confusing nature of airline-related documentation, which can

consist of an array of reservations, receipts, and actual tickets.

Petty cash is also usually paid out by A/P personnel in the form of a check made

out to an employee, who cashes the check at the bank and puts the cash in the

petty cashbox.
 INTERNAL CONTROLS

A variety of checks against abuse are usually present to prevent embezzlement by

accounts payable personnel. Separation of duties is a common control. Nearly all

companies have a junior employee process and print a cheque and a senior

employee review and sign the cheque. Often, the accounting software will limit

each employee to performing only the functions assigned to them, so that there

is no way any one employee – even the controller – can singlehandedly make a

payment.

Some companies also separate the functions of adding new vendors and

entering vouchers. This makes it impossible for an employee to add himself as a

vendor and then cut a cheque to himself without colluding with another

employee. This file is referred to as the master vendor file. It is the repository of

all significant information about the company's suppliers. It is the reference

point for accounts payable when it comes to paying invoices.

In addition, most companies require a second signature on cheques whose

amount exceeds a specified threshold.

Accounts payable personnel must watch for fraudulent invoices. In the absence

of a purchase order system, the first line of defense is the approving manager.

However, A/P staff should become familiar with a few common problems, such

as "Yellow Pages" ripoffs in which fraudulent operators offer to place an

advertisement. The walking-fingers logo has never been trademarked, and there

are many different Yellow Pages-style directories, most of which have a small

distribution. According to an article in the Winter 2000 American Payroll

Association's Employer Practices, "Vendors may send documents that look like

invoices but in small print they state "this is not a bill." These may be charges

for directory listings or advertisements. Recently, some companies have begun

sending what appears to be a rebate or refund check; in reality, it is a

registration for services that is activated when the document is returned with a

signature."

In accounts payable, a simple mistake can cause a large overpayment. A

common example involves duplicate invoices. An invoice may be temporarily

misplaced or still in the approval status when the vendors calls to inquire into its

payment status. After the A/P staff member looks it up and finds it has not been

paid, the vendor sends a duplicate invoice; meanwhile the original invoice

shows up and gets paid. Then the duplicate invoice arrives and inadvertently

gets paid as well, perhaps under a slightly different invoice number.

 AUDITS OF ACCOUNTS PAYABLE

Auditors often focus on the existence of approved invoices, expense reports,

and other supporting documentation to support checks that were cut. The

presence of a confirmation or statement from the supplier is reasonable proof of

the existence of the account. It is not uncommon for some of this documentation

to be lost or misfiled by the time the audit rolls around. An auditor may decide

to expand the sample size in such situations.

Auditors typically prepare an ageing structure of accounts payable for a better

understanding of outstanding debts over certain periods (30, 60, 90 days, etc).

Such structures are helpful in the correct presentation of the balance sheet as of

year end.

The current portion of debt (payable within 12 months) is critical, because it

represents a short-term claim to current assets and is often secured by long term

assets. Common types of short-term debt are bank loans and lines of credit.

An increase in working capital indicates that the business has either increased

current assets (that is received cash, or other current assets) or has decreased

current liabilities, for example has paid off some short-term creditors.

Implications on M&A: The common commercial definition of working capital

for the purpose of a working capital adjustment in an M&A transaction ( i .e for

a working capital adjustment mechanism in a sale and purchase agreement) is

equal to:

CASH BALANCE:

Current Assets - Current Liabilities excluding deferred tax

assets/liabilities, excess cash, surplus assets and/or deposit balances.

items often attract a one-for-one purchase price adjustment.

 WORKING CAPITAL MANAGEMENT

Decisions relating to working capital and short term financing are referred to

as working capital management. These involve managing the relationship

between a firm's short-term assets and its short-term liabilities. The goal of working

capital management is to ensure that the firm is able to continue its operations

and that it has sufficient cash flow to satisfy both maturing short-term debt and

upcoming operational expenses.

Decision criteria

By definition, working capital management entails short term decisions -

generally, relating to the next one year period - which are "reversible". These

decisions are therefore not taken on the same basis as Capital Investment

Decisions (NPV or related, as above) rather they will be based on cash flows

and / or profitability.

 One measure of cash flow is provided by the cash conversion cycle - the net

number of days from the outlay of cash for raw material to receiving

payment from the customer. As a management tool, this metric makes

explicit the inter-relatedness of decisions relating to inventories, accounts

receivable and payable, and cash. Because this number effectively

corresponds to the time that the firm's cash is tied up in operations and
 unavailable for other activities, management generally aims at a low net

count.

 In this context, the most useful measure of profitability is Return on capital

(ROC). The result is shown as a percentage, determined by dividing

relevant income for the 12 months by capital employed; Return on equity

(ROE) shows this result for the firm's shareholders. Firm value is

enhanced when, and if, the return on capital, which results from working

capital management, exceeds the cost of capital, which results from capital

investment decisions as above. ROC measures are therefore useful as a

management tool, in that they link short-term policy with long-term

decision making. See Economic value added (EVA).

MANAGEMENT OF WORKING CAPITAL

Guided by the above criteria, management will use a combination of policies

and techniques for the management of working capital. These policies aim at

managing the current assets (generally cash and cash equivalents, inventories and

debtors) and the short term financing, such that cash flows and returns are

acceptable.

 Cash management. Identify the cash balance which allows for the business

to meet day to day expenses, but reduces cash holding costs.

  Inventory management. Identify the level of inventory which allows for

uninterrupted production but reduces the investment in raw materials -

and minimizes reordering costs - and hence increases cash flow; see

Supply chain management; Just In Time (JIT); Economic order quantity (EOQ);

Economic production quantity

 Debtors management. Identify the appropriate credit policy, i.e. credit

terms which will attract customers, such that any impact on cash flows

and the cash conversion cycle will be offset by increased revenue and

hence Return on Capital (or vice versa); see Discounts and allowances.

 Short term financing. Identify the appropriate source of financing, given

the cash conversion cycle: the inventory is ideally financed by credit

granted by the supplier; however, it may be necessary to utilize a bank

loan (or overdraft), or to "convert debtors to cash" through "factoring".

Working capital is directly affecting by other management issues, such as

product mix, supply chain design and business model (for example agent vs.

distributor)
COMPANY PROFILE
 COMPANY PROFILE

Incepted in the year 1983, 'MAHESH NAMKEEN BHANDAR' is situated in lucknow, (

U.P). Under 'MAHESH NAMKEEN' brand name with an intention to provide people
of lucknow district a quality namkeens/dalmoth with ultimate taste and relishing
freshness.

After a phenomenal growth within a decade of its inception 'Mahesh

NamkeenBhandar' had been incorporated into a company 'Mahesh Namkeen Private
Limited' in the year 2004.

Since its establishment and under the leadership and dynamism of our esteemed
Promotor, our company is constantly growing and scaling new horizons, thus,
becoming one of the leading namkeens Manufacturer in U.P. We are actively
involved in the area of manufacturing of Namkeen/Dalmoth such as Moong Dal,
AlooBhujia, NatkhatNimbu, Kashmiri Mix, BikaneriBhujia, Special Kastoori,
BambaiyaChana, Disco Masoor, Special Muradabadi, SevMasoor, SadiBhujia,
Tasty, RaitaBhondi, Papri/Diwana Mix, Cornflex Mix, Moong Mix, HariBhondi,
Special Satrangi, Chana Dal, Navrang, Milk PudingSev, Hara Mattar, Gata Gat,
NavRatan.

We have brought magic of different flavors in our Namkeen products that would add
a tangy touch to our lines.

Our perseverance and competence has enabled us in meeting the growing demands
of Namkeen/Dalmoths. Being a pioneering entity; 'Mahesh Namkeen' has carved a
niche of its own in the regional namkeen market. Moreover, we have successfully
excelled in all our endeavors by providing quality, and hygiene namkeen products.
The delicious range of Namkeen offered by us is highly admired for their nutritional
value and delicious taste.

To meet the ever increasing demand, the Company has set up a new plant at
Lucknow in 2002.
 OUR PRODUCTS

CHATPATA MATAR

We offer ChatpataMatar, which is spicy matar product. It is prepared by deep frying matar,
Spices.

INGREDIENTS

Matar, Edible Vegetable Oil, Salt, Black Salt, Red Pepper, Other Spices.

AVAILABLE IN

7gm packs

ALOO BHUJIA

We provide a scrumptious range of AlooBhujia to our clients, which is a traditional

Indian snack prepared with Cereal's Besan, Salt, Edible Vegetable Oil, Spices &
Condiments. We ensure that our range is prepared using quality food products.
INGREDIENTS
Cereal's Besan, Salt, Edible Vegetable Oil, Spices & Condiments,
Colours&Flavoures.
AVAILABLE IN

7gm packs.

ALOO BHUJIA

We provide a scrumptious range of AlooBhujia to our clients, which is a traditional

Indian snack prepared with Cereal's Besan, Salt, Edible Vegetable Oil, Spices &
Condiments. We ensure that our range is prepared using quality food products.
INGREDIENTS

Cereal's Besan, Salt, Edible Vegetable Oil, Spices & Condiments,

Colours&Flavoures.
AVAILABLE IN

10gm packs.

ALOO BHUJIA

We provide a scrumptious range of AlooBhujia to our clients, which is a traditional

Indian snack prepared with Cereal's Besan, Salt, Edible Vegetable Oil, Spices &
Condiments. We ensure that our range is prepared using quality food products.
INGREDIENTS

Cereal's Besan, Salt, Edible Vegetable Oil, Spices & Condiments,

Colours&Flavoures.
AVAILABLE IN

20gm packs.
MOONG DAL

We offer a wide and delicious range of premium quality Moong Dal Namkeen that
are absolutely hard to resist. The best quality oil and ghee is used for frying and
further processing. These Moong Dal Namkeens are available at competitive price.
INGREDIENTS

Moong Dal, Edible Vegetable Oil & Edible Salt.

AVAILABLE IN

20gm packs.

TASTY

We provide a scrumptious range of Tasty to our clients, which is a traditional Indian

snack prepared with moth pulse flour, gram flour, spices & condiments. We ensure
that our range is prepared using quality food products.
INGREDIENTS

Groundnut, Besan, Edible Vegetable Oil, Edible Salt, Spices & Condiments Etc.
AVAILABLE IN
20gm packs.

ROASTED CHANA

We provide a scrumptious range of Roasted Chana to our clients, which is a

traditional Indian snack . We ensure that our range is prepared using quality food
products.
INGREDIENTS

Gram(78%) , Edible Vegetable Oil , Edible Common Salt , Coriander Powder ,

Cumin Powder , Mango Powder,RedChilli Powder , Black Salt Powder , Asafoetida
Powder.
AVAILABLE IN

42gm packs.

DIET CHIWDA MIXTURE

We offer a wide and delicious range of premium quality Diet Chiwda Mixture that is
absolutely hard to resist. The best quality oil and ghee is used for frying and Very
light to eat. This Diet Chiwda Mixture is very easy to eat and healthy Namkeen.
Simple with included so many ingredients. Suitable for all.
INGREDIENTS

Flaked Rice (50 % ) , Edible Vegetable Oil (Palmolein / Cotton Seed Oil), Gram Plus
Flour (15%) ,Cornflakes (14%) , Roasted Chana (12 %) , Peanuts (3 %) , Edible
Common Salt Powder , Mixed Spices ( Black Salt Powder , Black Pepper Powder ,
Clove Powder , Cumin Seed Powder , Coriander Powder, Curry Leaves , Asafoetida
Powder ) and Acidity Regulator ( INS 330 ).
AVAILABLE IN

150gm packs.

SATRANGI

We provide a scrumptious range of SatrangiNamkeen to our clients, which is a

traditional Indian snack prepared with moth pulse flour, gram flour, spices &
condiments. We ensure that our range is prepared using quality food products.
INGREDIENTS

Masoor pulse, ground nut, gram besan, matarbesan, cornflex, potato flex, edible
vegetable oil, edible salt, mango powder, spices etc.
AVAILABLE IN

200gm packs

KASHMIRI MIX

We provide a scrumptious range of Kashmiri to our clients, which is a traditional

Indian snack prepared with moth pulse flour, gram flour, spices & condiments. We
ensure that our range is prepared using quality food products.
INGREDIENTS

Moong Dal, Water Melon Seed, Potato Flex, Gram Besan, Salt, Mango Powder,
Spices Etc.
AVAILABLE IN

200gm packs.
CORNFLAKES

We provide a scrumptious range of Cornflakes to our clients, which is a traditional

Indian snack . We ensure that our range is prepared using quality food products.
INGREDIENTS

Cornflakes, Raisins, Peanuts, Sweet Neem Leaves, Gram Pulse, Boondi, Fennel
Seeds, Edible Vegetable Oil(Palmolein), Edible Starchs, Edible Common Salt
Powder, Sugar Powder
AVAILABLE IN

200gm packs.

RAYATA BUNDI

We provide a scrumptious range of RaitaBundi to our clients. We ensure that our

range is prepared using quality food products.
INGREDIENTS

Channa Dal, Besan, MatarBesan, Edible Vegetable Oil, Etc.

AVAILABLE IN

200gm packs.

ROASTED CHANA

We provide a scrumptious range of Roasted Chana to our clients, which is a

traditional Indian snack . We ensure that our range is prepared using quality food
products.
INGREDIENTS

Gram(78%) , Edible Vegetable Oil , Edible Common Salt , Coriander Powder ,

Cumin Powder , Mango Powder,RedChilli Powder , Black Salt Powder , Asafoetida
Powder.
AVAILABLE IN

200gm packs.
WHEAT FLOUR CUPS

We are offering Crunchiness flavor tast with tomato flavor with the mixture of so
many varieties. These cups unique in taste. These Cups are available at competitive
price.
INGREDIENTS

Wheat Flour , Edible Vegetable Oil (Palmolein ) , Edible Starch , Spices and
Condiments ( Cumin Powder , Coriander Powder , Black Pepper Powder , Red Chilli
Powder , Dry Mango Powder ) , Tomato Powder , Edible Common Salt Powder ,
Onion Powder , Garlic Powder , Black Salt Powder , Milk Solids , Acidity Regulator
( INS 330 ) .
AVAILABLE IN

400gm packs.

GATTA GAT

We offer a wide and delicious range of premium quality Gatta Gat that are absolutely
hard to resist. The best quality oil and ghee is used for frying and further processing.
These Gatta Gat are available at competitive price.
INGREDIENTS

Wheat Flour, Starch, Edible Vegetable Oil, Edible Commom Salt, Spices &
Condiments
AVAILABLE IN

1kg packs.

KASHMIRI MIX

We provide a scrumptious range of Kashmiri to our clients, which is a traditional

Indian snack prepared with moth pulse flour, gram flour, spices & condiments. We
ensure that our range is prepared using quality food products.
INGREDIENTS

Moong Dal, Water Melon Seed, Potato Flex, Gram Besan, Salt, Mango Powder,
Spices Etc.
AVAILABLE IN

1kg packs.

NAVRANG

Mahesh Namkeen brings you this authentic mouth- watering product Navrang. This
mixture is the blend of many tasteful ingredients like Chana dal, masoor, ground nut,
gram flour and a lot more.
INGREDIENTS

Chana dal, masoor, ground nut, gram flour, rice flakes, corn flakes, mango powder,
edible vegetable oil, edible salt, spices.
AVAILABLE IN

3kg packs.

MOONG DAL

We offer a wide and delicious range of premium quality Moong Dal Namkeen that
are absolutely hard to resist. The best quality oil and ghee is used for frying and
further processing. These Moong Dal Namkeens are available at competitive price.
INGREDIENTS

Moong Dal, Edible Vegetable Oil & Edible Salt.

AVAILABLE IN

3kg packs.

NETWORK

Today, the domestic sales of Mahesh Namkeens register a steady rise, year after
year.
Today, the Mahesh brand reaches the length and breadth of India. In fact, It''s today
one of India's best known Namkeen brand, and the undoubted market leader in
Northern India.

And its export focus has been getting sharper and sharper.

To put it briefly, the world would hear more and more of us in the future.

Or rather, they would be devouring more and more of us in the future.

RESEARCH & DEVELOPMENT

Under the research & development, Mahesh Namkeen while preserving its heritage,
our endeavor is to offer quality products to our customers, for which we have put in
place strict check controls right from procurement of Raw materials to Manufacturing,
Packaging and Marketing.

We have a dedicated and well experienced team of professionals to ensure strict

Quality Testing, Quality Control, Quality Assurance, and Quality Compliance. We
have transformed ourselves from traditional way of manufacturing to modern way of
techniques with aim of improving the taste and quality of existing product line.

We also emphasis on feedback from the retailers & customers, the inclination for the
demand of new products for our customers for which we continuously do the
research in the development of new product line under the strict observance in highly
sophisticated labs.
Career

If you are interested in a job in Mahesh Namkeen Private Limited then we have
golden offers for you. All applications are pre-screened based on academic
credentials.

Why Join Mahesh Namkeen Private Limited?

To explore your horizons beyond what you believe you can do.

To challenge your innate capabilities.

To be a part of a wonderful energetic team of youngsters, entrusted to produce

effective results.

If your passion is to lead, sustain, and motivate.

RESEARCH METHODOLOGY
 RESEARCH METHODOLOGY

The report is the result of a survey which was undertaken in working capital of

Mahesh Namkeen . The objectives of the project has been fulfilled by getting

response from the Employee's associated to these segments through a personal

interview in finance department. The responses available through the balance

sheet and personal interview are used to evaluate the working capital

management of the company.

THE RESEARCH PROBLEM

The problem formulation is the first step to a successful research process. The

summer training undertaken the problem of analyzing the trend analysis of

working capital management of Mahesh Namkeen and to find out the ratio

analysis of company.

THE RESEARCH DESIGN

The research design used in the project is Descriptive Research.

The investigation is carried upon the working capital in working capital

management in Mahesh Namkeen inLucknow. The reason for choosing this

design is to get responses from the company’s Balance sheet.

 COLLECTION OF DATA

The data has been taken from secondary source

 Secondary data source

Secondary data was collected from following sources

Balance sheet

Websites

Books

Personal consultation

THE AREA OF WORK

The field work is conducted in the Mahesh Namkeen in financial

department Lucknow .

THE ANALYTICAL TOOLS USED

The analytical tools used are mostly graphical in nature which

include

Bar Charts

 Tables showing percentage

 LIMITATIONS

It is not possible to remove the limitation of any investigators. So this project

also has certain limitation that is:

1) Information was gathered through the rating of the subject, thus biasness

is possible.

2) As the sample size was small it is possible that it may not represent the

precise picture.

3) Employees of the organization may hide the fact.

4) The management did not agree to disclose all the confidential data.

5) Number of respondent are very less, so clear conclusion can’t be drawn.

DATA ANALYSIS AND

INTERPRETATION
 DATA ANALYSIS AND INTERPRETATION

PERFORMANCE HIGHLIGHTS

Company has completed another successful year in 2016-17 registering

impressive growth over the previous year. During the year, the company has
registered a net profit of Rs. 30.50 million by increasing production to Rs.
191.77 million from a level of Rs. 149.83 million during the previous year. The
turnover during the year has increased by 35.40% to Rs. 194.59 million from
Rs. 143.72 million during the previous year. During the year 2015-16, net worth
of the company reached a level of Rs. 87.28 million. The major highlights of
performance during the year 2015-16 are summarized below.

(Rupees in million)

s.no. Particulars 2016-17 2015-16 Increased by

1 Turnover 194.59 143.72 35.40%
2 Production 191.77 149.83 27.99%
3 Value added 74.91 61.46 21.88%
4 Net profit before 30.50 19.14 59.35%
tax
5 Value added per 6.69 5.06 32.21%
employee (Rs. In
lacs)
6 New worth 87.28 56.96 53.23%
1 What is Profitability Ratio (EBIT) in Mahesh Namkeenin last 5 year?

PROFITABILITY RATIO -:

 EBIT (Earnings Before Interest and Taxes)

Revenue - COGS- Operating Expenses

EBIT =
Year EBIT
2012-13 -24.94
2013-14 -10.86
2014-15 1.84
2015-16 19.14
2016-17 30.5
2016-17; 30.5

2015-16; 19.14

2014-15; 1.84

2013-14; -10.86

2012-13; -24.94

INTERPETATION:

Profitability Ratio (EBIT) in Mahesh Namkeenin last 5 year is increased year by year
in 2012-13 is -24.94 and in 2016-17 is 30.50
Q.2 What is Return on Assets in Mahesh Namkeenin last 2 year?

Return on Assets
Return on Assets = Net Income / Assets * 100

2015-16 33.52%
2016-17 34.94%

2016-17; 34.94%

2015-16; 33.52%

INTERPETATION:

Return on Assets in Mahesh Namkeenin last 2 year is increased year by year in 2015-
16 is 33.52 and in 2016-17 is 34.94%
Q. 3 What is solvency ratioin Mahesh Namkeenin last 5 year?

SOLVENCY RATIO

2012-13 -113.4%
2013-14 -121.61%
2014-15 -117.14%
2015-16 56.96%
2016-17 87.28%
2016-17; 87.28%

2015-16; 56.96%

2012-13; -113.40% 2014-15; -117.14%

2013-14; -121.61%

INTERPETATION:

solvency ratioin Mahesh Namkeenin last 5 year is increased year by year in 2012-13
is -113.40 and in 2016-17 is 87.28%
 Q.4 What is Liquidity Ratio in Mahesh Namkeenin last 2 year?

2015-16 1.4
2016-17 4.57
LIQUIDITY RATIO

In finance, the Acid-test or quick ratio or liquid ratio measures the ability of a
company to use its near cash or quick assets to immediately extinguish or retire its
current liabilities. Quick assets include those current assets that presumably can be
quickly converted to cash at close to their book values.

2016-17; 4.57

2015-16; 1.4

INTERPETATION:

2009-10 The quick ratio 2015-16

2008-09 is 1.4 and in 2016-17 the ratio is increasing 4.57.
Q. 5 What is Current Ratio in Mahesh Namkeenin last 2 year?

2016-17 4.53
2015-16 2.4
CURRENT RATIO

The current ratio is a financial ratio that measures whether or not a firm has
enough resources to pay its debts over the next 12 months. It compares a firm's
current assets to its current liabilities. It is expressed as follows:

2016-17; 4.53

2015-16; 2.4

INTERPETATION:

The current ratio 2015-16 is 2.40 and in 2016-17 the ratio is increasing 4.53.
Q. 6 What is Networking Capital in Mahesh Namkeenin last 2 year?

NETWORKING CAPITAL

Net Working Capital =Current Assets –Current Liabilities

2016-17 2015-16
Current assets 30581.46 13222.70
Current liabilities 6749.80 5506.25
Net W.C. 23831.66 7716.45

2016-17; 23831.66

2015-16; 7716.45

INTERPETATION:

The NETWORKING CAPITAL2015-16 is 7716.45 and in 2016-17 the ratio is

increasing 23831.66.
Q.7 What is activity ratio in Mahesh Namkeenin last 5 year?

ACTIVITY RATIO

Rs. In million

2012-13 51.4
2013-14 70.07
2014-15 94.42
2015-16 143.72
2016-17 194.59

2016-17; 194.59

2015-16; 143.72

2014-15; 94.42

2013-14; 70.07
2012-13; 51.4

INTERPETATION:

The activity ratio in Mahesh Namkeenin last 5 year is increase year by year 2012-
13 is 51.40 and in 2016-17 the ratio is increasing by 194.59.
Q.8 What is debt equity ratio in Mahesh Namkeenin last 2 year?

2015-16 1.26%
2016-17 1.02%
DEBT EQUITY RATIO

Debt equity ratio =total liabalities /share holders equity

2015-16; 1.26%

2016-17; 1.02%

2007-08 2008-09

INTERPETATION:

The Dept equity ratio 2015-16 is 1.02 and in 2016-17 the ratio is increasing

1.26.
Q. 9 What is value added per employee in Mahesh Namkeenin last 5 year?
VALUE ADDED PER EMPLOYEE

Rs. In Lakhs

2012-13 1.93
2013-14 2.8
2014-15 4.02
2015-16 5.06
2016-17 6.69

2016-17; 6.69

2015-16; 5.06

2014-15; 4.02

2013-14; 2.8

2012-13; 1.93

INTERPETATION:

The value added per employee in Mahesh Namkeen in last 5 year 2012-13 is 1.93

and in 2016-17 the ratio is increasing 6.69.

FINDINGS
 FINDINGS

The summary of results of various ratios are presented. The summary of major

findings are mentioned below :-

(I) Gross Working Capital :-Trend of Gross Working Capital ( GWC) or total

current assets showed an upward trend. The total investment in current assets

increases from Rs. 7716.45 million to Rs. 23831 million during the period under

reviewed. This is a good indication from the smooth running of the day-to-day

operation as well as paying the current obligation points of review. But since

2013-14 it has been decreased continuously the main factor for this is decrease

in sundry debtors.

Net Working Capital ( NWC) :- Likewise GWC trend of NWC also showed

an increasing trend up to 2016-17 but thereafter it has decreased year by year.

The highest NWC was in the year of 2013-14 and lowest being in the year of

2014-15. The factor contributed to decrease is the decrease in sundry debtors

considerably and also increase in sundry creditors and other current liabilities.

This must be reviewed and attempts to reduce the other current liabilities. This

attempts shall improve the liquidity position of organization.

Position of Liquidity or Trend in liquidity :-Analysis of various liquidity

ratio express the trend of liquidity over the past twelve years.
 Analysis of current ratio reveals that the ratio shown an increasing trend up

to 1999-00 but thereafter it decreased . It was highest in the year of 2016-17

being 3.97:1 thereafter it has decreased continuously and comes to 1.09 in

2014-15. This is below the norms. It should be improve by reducing the other

current liabilities and sundry creditors. However current ratio in many cases

does not reveal the real picture of liquidity as the same is trend analysis only . It

takes into consideration all the components of current assets (e.g.) inventory and

debtors, which ultimately takes some times for conversion into cash.

Analysis of the Super quick ratio also reveals that the trend is increasing up to

2012-13 but after that it decreased. It has .71:1 in 2016-17 and then comes to .

66:1 except slightly increased in the year 2014-15 .In the year 2015-16 it is

below than the standard norms of 1:1. These leads to analysis of super quick

ratio which is quite relevant in this case.

The results shows a gloomy picture in comparison to current & quick ratio.

Since super quick ratio excludes aspects of sundry debtors from the

components of current assets in comparison to super quick ratio, hence analysis

of sundry debtors needs for the investigation. This aspect is further summarized

and explained in expressing the results of efficiency of working capital used.

Over all receivable management shows a gloomy picture, which indicates

inefficiency in receivable management. However the situation is quite

improving due to continuous efforts of present management. In a nut shell the

position of sundry debtors requires more constituent collection effort, special

cell to monitor and review the position incessantly, pressure on various state

electricity department and SEB through central govt. for speed collection of

receivable.
CONCLUSIONS
 CONCLUSIONS
In spite of various obstacle hurdles, limitations and bottlenecks, financial

analysisin Mahesh Namkeen has a bright future for growth and expansion.

The organization is a profit making and contributing lot in the path of the

progress of the nation by providing easy working capital management of

Mahesh Namkeento various states including some strategic remote areas.

Financial analysisof Mahesh Namkeen is the only pioneer organization in the

field of financial analysisin Mahesh Namkeensector at present.

The organization is already working on its planning for rapid growth by

commissioning more projects, entering. Our nation is facing acute shortage of

technology . Thus to achieve rapid industrialization & growth of other sector

including software.

Financial analysisofMahesh Namkeenhas to play a greater role by increasing its

capacity manifold in future / coming days and the organization has great

importance from the nations point of view.

Trend analysis in a business enterprise is synonymous with the blood of the

human body. The importance of Trend analysis from liquidity and profitability

point of view can not be over emphasized. Both these significant aspects largely

depends upon efficient management of Trend analysis, (i.e.) management of

inventory, receivable, cash & bank balances and short term creditors & other
short-term liabilities, liquidity which refers to the ability of a firm to meet its

current obligations encompasses current assets and their structure. In recent

times high importance is being given corporate liquidity as it has direct impact

on profitability as well as long term survival of the firms. Maintaining sound

liquidity and profitability position ultimately depends upon efficient and smooth

management of working .

The present study is divided into five parts. In this part importance

of the study, importance of financial analysisand potential, status and

development of financial analysisof Mahesh Namkeen, data and methodology

of the study has been discussed. In the second part the objectives of the study

has clearly defined. In third chapter deals with various concepts, aspects &

dimensions of working capital. In forth part an attempt is made to know the

trend, status and management of Trend analysis through analysis by using

various financial and statistical techniques. In fifth chapter summery of result,

findings, scope of futures research limitations of study etc. has been described

briefly.