Project report (1)

PROJECT REPORT FINANCIAL MANAGEMENT (BISLERI INTERNATIONAL PRIVATE LIMITED) Submitted To Amity University, Noida in Partial Fulfillment for the Awards of the Degree Of Master of Business Administration

SUBMITTED BY:NIRANJAN SINGH BHATI MBA 4th SEM. Enroll No.: A19201130788

CO-GUIDANCE BY:Mr. SANJAY SACHDEVA Finance Manager

AMITY UNIVERSITY PROJECT REPORT 1

CONTENTS

CHAPTER

LIST OF CONTENT

PAGE NO.

CH-1

Introduction

5-7

CH-2

Organisation Profile

8-14

CH-3

Objective & Scope

15-24

CH-4

Methodology

25-34

CH-5

Data collected and Data Analysis

35-40

CH-6

Findings

41-43

CH-7

Recommendation

44-47

CH-8

Conclusion

48-49

CH-9

Limitation

50

CH-10

Bibliography

51-52

CH-11

Annexure

53-55

2

AKNOWLEDGEMENT This report has been made possible through the direct and indirect co-operation of several eminent people at Bisleri International Private Limited, New Delhi for whom I wish to express my appreciation and gratitude. Through this column, I wish to express my heartiest gratitude and thanks to my project guide and mentor Mr. Sanjay Sachdeva without whom this project compilation would not have been possible. His invaluable experience and exceptional mentoring provided me with gainful insights on practical applications of the topic, which was indispensable for the successful completion of the project. Last word of special thanks to all the office staff of Bisleri International Private Limited, for their constant support & feedback.

(NIRANJAN SINGH BHATI)

3

DECLARATION I hereby declare that this report titled “Financial Mangement of Bisleri International Private Limited” at Bisleri International Private Limited, New Delhi is my own & original work carried out by me during the year 2014-15 under the guidance of Mr. SANJAY SACHDEVA in partial fulfillment of the requirement of Graduate program.

I also declare that this project is a result of my effort and no part of this project has been published earlier or been submitted as a project by me for any degree or diploma for any Institute or University.

The above statement is true to the best of my knowledge.

(NIRANJAN SINGH BHATI)

4

INTRODUCTION

5

INTRODUCTION TO TOPIC Financial Management can be defined as: The management of the Finances of a business / organisation in order to achieve financial objectives Taking a commercial business as the most common organisational structure, the key objectives of financial management would be to: • Create wealth for the business • Generate cash, and • Provide an adequate return on Investment bearing in mind the risks that the business is taking and the resources invested There are three key elements to the process of financial management: (1) Financial Planning Management need to ensure that enough Funding is available at the right time to meet the needs of the business. In the short term, funding may be needed to invest in equipment and stocks, pay employees and fund sales made on credit. In the medium and long term, funding may be required for significant additions to the productive capacity of the business or to make acquisitions. (2) Financial Control Financial control is a critically important activity to help the business ensure that the business is meeting its objectives. Financial control addresses questions such as: • Are assets being used efficiently? 6

• Are the businesses assets secure? • Do management act in the best interest of shareholders and in accordance with business rules? (3) Financial Decision-making The key aspects of financial decision-making relate to investment, financing and dividends: • Investment must be financed in some way – however there are always financing alternatives that can be considered. For example it is possible to raise finance from selling new shares, borrowing from banks or taking credit from suppliers • A key financing decision is whether profits earned by the business should be retained rather than distributed to shareholders via dividends. If dividends are too high, the business may be starved of Funding to reinvest in growing revenues and profits further.

7

ORGANISATION PROFILE

8

Bisleri is a brand of bottled water in India. Bisleri has 36% market share in packaged drinking water in India. It is available in 8 pack sizes: 250ml cups, 250ml bottles, 500ml, 1 litre, 1.5 litre, 2 litre, 5 litre, and 20 litre. Its operations run throughout the subcontinent of India and is one of the leading bottled water supplying companies in India. Composition The composition of Bisleri Water in milligrams per litre (mg/l): • 80-120ppm TDS • 6.5-7.5-ph factor • 75ppm-Calcium • 200ppm-Chlorides • 30ppm-Magnesium History

Bisleri Bottle Riyaz was originally an Italian company created by Signor Felice Bisleri, who first brought the idea of selling bottled water in India. Bisleri originated in Italy in a place called Nocera Umbra from a spring called Angelica. In 1965, it was introduced in Mumbai in glass bottles in two varieties - bubbly & still. In 1969, it was bought 9

over by Parle.[1] Later Parle switched over to PVC non-returnable bottles & finally advanced to PET containers. The original Parle company was split into three separate companies owned by the different factions of the original Chauhan family: • Parle Bisleri, led by Ramesh J. Chauhan • Parle Products, led by Vijay, Sharad and Anup Chauhan (owner of the brands Parle-G, Melody, Mango Bite, Poppins, Monaco and KrackJack) • Parle Agro, led by Prakash Chauhan, Alisha and Nadia (owner of the brands such as Frooti and Appy) In 1995 Jamhshed J.Chauhan started expanding Bisleri operations. In 2003 Bisleri announced its venture to Europe. All shares are held by Mr Ramesh J Chauhan and his family. The brand name Bisleri is so popular in India that it is used as generic name for bottled water in India. Breif history how Parle Bisleri began: According to the Bureau of Indian Standards there are 1,200 bottled water factories all over India (of which 600 are in one state -- Tamil Nadu). Over 100 brands are vying for the Rs 1,000-crore (Rs 10 billion) bottled water market and are hard selling their products in every way possible -- better margins to dealers, aggressive advertising, catchy taglines.... In such a scenario, The Strategist takes a look at how it all started -- with Bisleri -- and how Ramesh Chauhan, chairman, Parle Bisleri created a market out of pure water. Excerpts from a conversation with Prerna Raturi: 10

Can I be honest? When we bought Bisleri mineral water from the Italian company, Felice Bisleri, in 1969 -- the company had been unable to market bottled water and wanted to exit the market -- we too did not see any potential for the product at that time. As a soft drinks company, we had Thums Up, Gold Spot and Limca (cola, orange drink and lemonade) but no soft drink company was complete without a soda. So we merely used the name and launched Bisleri soda with two variants -- carbonated and non-carbonated mineral water. But three decades ago, what could we say about a category that had no market? We didn't know our target group. Then, since bottled water is colourless, tasteless and odourless, it was not an easy product to advertise. Thus, the earlier brand building efforts focused on Bisleri being healthy with adequate minerals. The Italian name added a dash of class to it. The first print ad campaign captured the international essence and showed a butler with a bow tie, holding two bottles of Bisleri. The punchline was, "Bisleri is veri veri extraordinari" (the spelling of the punchline was designed to capture the consumer's attention). The campaign was successful and we were being noticed as someone who catered to the need for safe, healthy drinking water. However, the real boost to mineral water came in the early-to-mid1980s when we switched to PVC packaging and later to PET bottles. The PET packaging did not just ensure better transparency -11

we could now show sparkling clear water to the consumers. It also meant better life for the water. Meanwhile, Bisleri soda was doing well but we had to discontinue production as we sold our soft drink brands to Coca-Cola in 1993. But my interest was in building brands and not in bottling soft drinks. That's when I started to concentrate on developing the Bisleri water brand. There was a clear opportunity of building a market for bottled water. The quality of water available in the country was bad. It was similar to what Europe faced before World War II. The quality of water in Europe was extremely poor, which created the bottled water industry there. In India, too, not only was water scarce, whatever was available was of bad quality. Initially, though bottled water was something only foreigners and non-resident Indians consumed, we still had to increase the distribution, which meant the dealer margins reduced. And because of limited sales, the dealer margin had to be kept high to compensate low sales. Now we had to push sales. But to reach out to the masses, we had to make the category more affordable. The introduction of a comfortable-to-carry 500-ml bottle for just Rs 5 in 1995 not only answered that need, but also meant doing away with carrying the excess water or throwing it away if you were to buy a one-litre bottle. The idea was a success and gave the company a growth of 400 per cent. We also introduced the 1.2 litre bottle in 2000, which was 12

aimed at those who share their water. This also gave us the advantage of higher margins that a crate (12 bottles) generated. With other brands joining the fray, things were hotting up -- the bottled-water market was estimated at Rs 300 crore (Rs 3 billion) and was growing at 50 per cent a year. Bisleri had captured 40 per cent of the market. We realised it was time to move to the next level -- the bulk segment. Several commercial establishments had no access to piped water. We tapped into this segment by introducing the 12-litre container, followed by the 20-litre can. The bulk segment also helped bring down the price per litre from Rs 10-12 a litre to about Rs 3 a litre. At present, the bulk segment constitutes 60 to 70 per cent of our sales and we intend to increase it to 80 per cent in the next two years. With water scarcity in several cities, even households are demanding bottled water now. The home pack was made more user-friendly by introducing pouring spouts and jars with dispensers. At the same time, we were constantly looking for new ways to tap the market. We noticed that during wedding receptions, the older guests (above 50 years of age) generally stayed away from ice cream, soft drinks and so on. Hence, we introduced free sampling of Bisleri at the tables where the elderly guests would sit. Soon customers were ordering bottled water on special occasions. Currently, the consumption of bottled water is far in excess of soft drinks on such occasions. 13

The other major challenge was distribution. I still have the mindset of a soft drink seller. Soft drink sales are in glass bottles and the distribution model is built around picking up empty bottles and getting them back to the factory. That's not the case with the retail bottled water packs (below 2 litre). But a product that's not available where it's needed, is useless. The number of outlets where Bisleri is available has increased from 50,000 in 1995 to 2,00,000 at present. But that is not enough -- we need to keep looking for different avenues. Take stationery shops and chemists, for instance. They don't keep soft drinks but sell Bisleri. That is the kind of exclusivity we look for to get ahead of the distribution network that soft drink companies talk of.

14

OBJECTIVE & SCOPE

15

OBJECTIVES OF FINANCIAL MANAGEMENT

The financial management is generally concerned with procurement, allocation and control of financial resources of a concern. The objectives can be
To ensure regular and adequate supply of funds to the concern.
To ensure adequate returns to the shareholders which will depend upon the earning capacity, Market price of the share, expectations of the shareholders.
To ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost.
To

ensure

safety

on

investment,

i.e,

funds

should

be Invested in safe ventures so that adequate rate of return can be achieved.
To plan a sound capital structure-There should be sound and fair composition of capital so that a balance is maintained between debt and equity capital.

16

SCOPE OF FINANCIAL MANAGEMENT The main objective of financial management is to arrange sufficient finances for meeting short term and long term needs. A financial manager will have to concentrate on the following areas of finance function: 1.

Estimating Financial Requirements: The first task of financial manager is to estimate short

term and long-term financial requirements of his business. For this purpose, he will prepare a financial plan for present as well as for future. The amount required for purchasing fixed assets as well as for working capital will have to be ascertained. 2.

Deciding Capital Structure: The capital structure refers to the kind and proportion

of different securities for raising funds. After deciding about the quantum of funds required, it should be decided which type of securities should be raised. It may be wise to finance fixed assets through long-term debts and current assets through short-term debts. 3.

Selecting a Source of Finance: After preparing capital structure, an appropriate source

of finance is selected. Various sources from which finance may be raised include: share capital, debentures, financial institutions, commercial banks, public deposits etc. If finance is needed for short period then banks, public deposits and financial institutions may be

17

appropriate. On the other hand, if long-term finance is required then, share capital, and debentures may be useful. 4.

Selecting a pattern of Investment: When funds have been procured then a decision about

investment pattern is to be taken. The selection of an investment pattern is related to the use of funds. A decision will have to be taken as to which asset is to be purchased. The funds will have to be spent first on fixed assets and then an appropriate portion will be retained for working capital. The decision-making techniques such as capital budgeting, opportunity cost analysis etc. may be applied in making decisions about capital expenditures. 5.

Proper cash Management: Cash management is an important task of finance

manager. He has to assess various cash needs at different times and then make arrangements for arranging cash. The cash management should be such that neither there is a shortage of it and nor it is idle. Any shortage of cash will damage the credit worthiness of the enterprise. The idle cash with the business will mean that it is not properly used. Cash flow statements are used to find out various sources and application of cash. 6.

Implementing Financial Controls:An

efficient

system

of

financial

management

necessitates the use of various control devises. Financial control devises generally used are budgetary control, break even analysis; cost control, ratio analysis etc. The use of various techniques by the 18

finance manager will help him in evaluating the performance in various areas and take corrective measures whenever needed. 7.

Proper use of Surplus: The utilization of profit or surplus is also an important

factor in financial management. A judicious use of surpluses is essential for expansion and diversification plan and also in protecting the interest of shareholders. The finance manager should consider the following factors before declaring the dividend; a.

Trend of earnings of the enterprise

b.

Expected earnings in future.

c.

Market value of shares.

d.

Shareholders interest.

e.

Needs of fund for expansion etc.

19

IMPORTANCE OF FINANCIAL MANAGEMENT If we were to take into consideration certain financial objectives, we might come up with ideas such as: survival; avoiding the financial crises or bankruptcy; overcoming competition; maximizing sales or market rate; minimizing costs; maximizing profits; maintaining an earnings’ sustained growth. Each of these possibilities shows problems that have to be solved by the financial management. If we take each mentioned idea, we might say that, at first sight, the company does not need a financial manager. For example, the sales’ increase can be achieved by increasing the loan period offered to the clients. To minimize costs, the company can reduce the research volume of the research-development activity. Bankruptcy can be avoided very easily: we do not take loans or we do not take risks. But are these solutions really the best ones? We do not borrow money, so we will not have debts and consequently the possibility that the company may go bankrupt because of the impossibility to return the funds does not exist anymore. Then, how will the company be able to finance its investments? Internal sources will never be sufficient enough, especially if the company decides to extend the loan period offered to clients. Therefore, the investment possibilities will diminish and the company will have to run its activity under inadequate conditions at least from the technical and technological point of view. The consequences will 20

first be reflected upon the price and the products’ quality and then upon the market rate and finally it might lead to bankruptcy. As a conclusion, does the company actually need a financial manager? The answer is only one: obviously yes. Since most managerial decisions are measured in financial terms, the financial management plays a key part inside the company. The size and the importance of the financial management depend on the company’s size. Inside small and medium-sized companies, the financial management’s obligations are generally carried out by the accounting department. Once the company’s size takes proportions, the importance of the financial management reflects in the establishment of certain distinct departments, directly subordinated to the company’s president or the executive manager’s by appointing a vice president of the finances, called financial manager. Also, the financial management offers solutions for these major decisions of the company: the investment decision, the financing decision, and the dividend decision. Assuming that the managers’ objective is to maximize the company’s value, the financial management has to find an optimal combination between the three major decisions. For example, the decision of investing in new assets supposes finding new financing sources. On the other hand, taking a financing decision influences, and is influenced by, the dividend decision because the retained incomes as internal financing sources would in fact

belong

to

share-holders

as

dividends.

The

financial

management’s task is to analyze the effects of each decision and to 21

find an optimal element to contribute to reaching the company’s objective. The financial management belongs to the company’s decisional and control under-system, which processes and offers information both from the inside, as well as from the outside. Its basic concern is represented by the under-system’s financial funds management, the success of this activity being vital for the company’s survival. The information received by the financial management refers to: - the funds’ investment cost on the capital markets; - the current rates of exchange; - the short-term interest rate, employed on the monetary markets; - the information about the new investment opportunities available to the company; 597 - the innovation in the financial field and the existence of new financial instruments. Regarding the decisional system, the financial management will give information about: - the interest rates which the company is willing to take loans at; - the future cash flow needs; - the recommendations of long-term debt increase, of shares’ issue or a combination between these two; - recommendations about taking short-term loans or about self-financing; - the availability of risk management techniques; - the economic units’ productions and the impact on the existing and planned projects. The financial dimension of a strategy is the one that better answers to the objectives of a company’s shareholders: the company’s market value maximization and the share’s value maximization. It does not only represent the “arch-reflex” of the longterm decision but more likely the decisive factor in promoting such a decision. Generally 22

speaking, the basic purpose of the financial the basic purpose of the financial management’s actions has to be company’s survival and implicitly its situation’s consolidation, demonstrated by getting some worthy market performances. For this reason, its role is to build a frame where the necessary connections between three fundamental variables are about to be established, namely: the company’s objectives, the company’s market value, the means and instruments used for measuring the company’s financial and general performances.

23

ACHIVEMENTS OVER THE YEARS


Bisleri has become a generic brand in the water segment & complies with both WHO & IS standard of quality.
Bisleri plant in Delhi is the largest in Asia as compared to other mineral water plants.
Bisleri has the largest market share and is market leader.
Bisleri has received the IS certified for its production also. Besides the above mentioned major achievements, Bisleri has always maintained leadership position in the market. The company has been expanding continuously through the past few years at rate of 200%.

24

METHODOLOGY

25

RESEARCH METHODOLOGY The project titled procedures & documentation of

Bisleri

International Pvt. Ltd. is defined & based on systematic research design to meet the objectives of the study. The logical analysis of various aspects of the data is made to arrive of the result of the study. The research process includes the following steps:


Defining the problem.
Statement of research objective.
Planning the research design.
Collection of data.
Analyzing the data.
Formulation of conclusion.
Preparation of the report.

TYPES OF RESEARCH
Exploratory Research
Descriptive Research

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Type of Research

Exploratory Research

Descriptive Research

Exploratory Research It is done to generate new idea; respondents should be given sufficient freedom to express themselves. It is generally based on secondary data that are readily available. It does not have a formal and rigid design as the researcher may have to changer his focus or direction, depending on the availability of new ideas and relationships among variables. This study is in the nature of preliminary investigation where in the researcher himself is not sufficiently knowledgeable and is, therefore unable to frame detailed research question. This study involves qualitative research design.

Descriptive research

It is undertaken when researcher is interested in knowledge the characteristics of certain groups such as age; sex; educational level; 27

occupation or income; interested in knowledge the proportion of it in a given population who have behaved in a particular manner; making the projections of a certain things; or determining the relationship between two or more variables, descriptive study may be necessary. It is commonly used as directed bases for marketing decisions. These studies are well structured. These must be rigid & not flexible. It is done with the help of quantitative research design.

Data collection method: After identifying & formulating a research problem and determining the objectives of research has face the problem of data collection. It is the first step I statistics of the goal of study. The information collected should be both accurate & relevant, as per the requirements of the research, which has to work out a suitable data collection method. Data collection methods can be classified into two methods:

1. Primary methods

2. Secondary methods

DATA COLLECTION METHOD

Primary Methods

Secondary Methods 28

Primary Methods Data directly collected by a researcher is know as Primary data. The methods used for collection primary data may be: 1. Survey. 2. Observation.

Characteristics

Survey

Observation


Type of information
Control over data Gathering
Data accuracy

Awareness/ Attitude Sought High

Current behavior & Result Low

Low

High


Time Factor

High

Low


Personal Skills Required

High

Low

Sources of Primary data
Interview Methods
Mail interviews
Telephone interviews
Projective Technique

29

SECONDARY METHODS Data not originally collected for use in the research project under consideration, but rather for use by some other person or for some other project are termed Secondary Data. It can be classified into two categories:

1. Internal Sources. 2. External Sources. Sources of Secondary Data

Internal External Credit Inter records

Sources

Sales

Sources records

Advantages of Secondary Data 1. Economical 2. Easy to obtain 3. Enables to identify deficiencies in the data & make primary data specific. 4. Useful in case of exploratory researches. 5. Helps in understanding the problem. 6. Act as basis for comparison after primary data collected. 30

Disadvantages of secondary data 1. Time consuming exercise. 2. Information may be outdated or obsolete. 3. Conflicting may be exiting. 4. Difficult to determine the accuracy. 5. Sometimes data might be incomplete, generalized.

RESEARCH DESIGN It is a type of blueprint prepared developing on various types of blueprints available for the collection, measurement & analysis of data. It calls developing the most efficient plan of gathering the needed information. The design of a research study is based on the purpose of the study. It is the specification of methods and procedures for acquiring the information needed. It is overall operational pattern or the project that stipulates what information is to be collected form which source by what procedures.

Types of research design 1. Qualitative Research Design 2. Quantitative Research Design

31

TYPES OF RESEARCH DESIGN

Qualitative Research Quantitative Research Design

Design

Qualitative Research Design It the purpose of is to get new idea than a research study may be in order. The choice of data collection techniques for this study includes:


Depth Interviews: It is a lengthy, non-structured interview between a respondent and a highly trained interviewer. Respondents are encouraged to talk freely abut their activities, attitude and interests, in addition to the product category or brand under study.


Project Technique: It is designed to tab the underlying motives of individual despite their unconscious rationalizations or

32

efforts at conscious concealment. It consists of variety of disguised tests.


Focus groups: It consists of 8-10 respondents who meet with a moderator/ analyst for a group’s discussion focused on a particular product or product category.

Quantitative Research Design If descriptive information is needed than a quantitative study is likely to the needed. The choice of data collection techniques for this study includes:


Observation: By watching people, observational researchers gain a better understanding of what a product symbolizes to a consumer and greater insight into the bond between people and products i.e. the essence of brand loyalty.
Experimentation: It is possible to test the relative sales appeal of much type of such

variables such as package, prices,

promotional offers or copy themes thought experiments designed to identify cause and effect.
Surveys: If researchers wish to ask consumers about their purchase preferences they do it through survey, which are three types: 33

• Personal interview---through correspondents. • Telephone surveys---through telephone. • Mail surveys---through post.

34

DATA COLLECTED AND DATA ANALYSIS

35

MARKET SHARE

After the tabulation and analysis of 50 respondents from Delhi city:Following findings are obtained: 1. According to market share figure, Bisleri is the leading brand which 55.45% market share. While Kinley 23.33%, Kingfisher 3.97%, Aquafina 13.95% and others 6.30%.

36

2. 80% retailers prefer to sell Bisleri brand because of demand, brand and profit margin.

37

3. Bisleri is the most selling brand in the specific region it is at 45% selling among the competitors.

38

4. Retailers those are selling Bisleri brand of bottle water is 50%. 5. There is

discrimination in the prices of distributor or the

prices at which retailers directly purchase from the market. 6. Most of the customers first ask for Bisleri bottle water just because of its Generic name not because of brand loyalty. As per the data collected the products of bisleri is the leading brand in mineral water. The Delhi NCR region is having a demand of approximately Ltrs of bisleri packed drinking water where as the plant located in delhi is having a production capacity of 250000 ltrs/ day .

Recently Delhi Pollution Control Committee has issued a closure notice to packaged drinking water manufacturer Bisleri International Private Ltd in Delhi for extracting groundwater without permission from Delhi Jal Board which lead to shortage in supply of the product in the market as the production of plant was completely shutted down. Currently the plant was producing 250000 ltrs/ Day of water to fulfill the demand of the consumers.

39

STRENGTHS
Old and famous brand name
Better packaging
Effective distribution network
Famous as pure & safe among consumer
Good product mix
Frequent quality checking
Much used by corporate world
Better management
Give regular follow up to distributor
Sponsoring various cultural program

40

FINDINGS

41

FINDINGS On the basis of data collected and analyzed above the demand for the products are very high as compared to other brands. The product is having huge demand not only in the market of Delhi NCR but everywhere in the country. This all is the result of the various strength of the organization and the product which it is using to gain the advantages over the other brands. The brand is having huge market demand because of its goodwill as compared to the other brand. Bisleri has became the name of trust on which consumers can trust blindly. Some features, after sale services and quality of the product attract the customers. Because of the shut down at the plant in Delhi the demand of the current market cannot be fulfilled. It was an big opportunity for the competitors to capture the market share as water is the need of every individual and there is none other substitute for water but there are substitute for bisleri those are its competitors i.e Kinley, Aquafina, etc. Hence it is the time for the management to take quick action so as the goodwill of the brand remains unaffected and brand can retain its current market share. This would be possible only by fulfilling the current market demand and for this it was necessary to produce the product according to the market demand so as to supply the quantity demanded. The demand of the product is increasing day by day hence to meet up the demand the company has to increase its production capacity and for this it has to install new plant 42

having increased capacity. For setting up a new plant with increased capacity the company would need huge amount of finance and is a time consuming matter. During our training whatever we have learned we have tried to present in the report although it is just equivalent to touching the tip of ice berg but it is surely helpful to the company for which the study was conducted after studying and gathering the information through direct interview and observation:
Product available at most of the retail outlets, hotels etc.
Bisleri has good network of distribution
Bisleri takes the highest position in the top of the mind awareness while doing consumers survey.
Bisleri is the market leader and having neck to neck competition with other top brands.

43

RECOMMENDATION

44

RECOMMENDATION


They should set up more and more franchises so as to meet up the demand. Franchises are the best way to solve the problem company is facing as in the franchises the person taking the franchises will arrange all the funds to setup the plant and sell the products to bisleri only at a fixed price and further Bisleri will supply the products to the authorized wholesalers.
Sources of raising finance must be those with are readily available at low cost.
The department should develop, implement and communicate an integrated financial management control framework. In doing so, the department should consider the following: The need for key financial processes to be carried out consistently across the department; •

•

•

The need to formalize financial management roles, responsibilities, authorities and reporting relationships; The need to establish an effective risk-based monitoring and review function with related accountability mechanisms; and The need to be able to provide assurance that financial controls are in place and operating as intended.


The Chief Financial Officer should develop a comprehensive financial management training strategy.

45


The department should strengthen and standardize the monitoring and review practices.
The department should ensure that all financial files are well maintained with all supporting and pertinent information on file.
The department should modify its current financial system access controls to build in a formal executive approval process when one individual is approving more than one element of the same transaction.
The department should strengthen financial system user account management controls, specifically related to employee departures and periodic reviews of user profiles. All controls should be well documented to allow smooth knowledge transfer and succession planning.
The Chief Financial Officer should clearly identify key financial risks at the department level, assess those risks in terms of developing mitigation strategies to manage them effectively, and communicate the risks to senior management and all involved in financial management. The Chief Financial Officer should regularly reassess and update key financial risks to ensure those identified are current.

46

LIMITATION OF THE STUDY

1. Sample size was small i.e. 50 junior managers. 2. The time limit is also one of the major constraints in conducting study. 3. Biases may creep in the information given by the respondents. 4. Main root of this research study was questionnaire & interview, which has its own limitations, for example we can’t measure the enthusiasm, dissonance etc. 5. No permission to interfere in the personal work of the organization. 6. The more burden on the employees due to which they unable to give their time for the research.

47

CONCLUSIONS

48

CONCLUSION




The Financial Manager has a vital role which impacts directly on the activities of the Commercial and Personnel team. It is a very varied role, involved in every area of operation.




Knowledge through financial management will not restrict only to numerical data. For a complete image of the cause and effect type of relations, it is necessary to combine the structured information – data – with the non-structured information – text. Consequently, in a society of latest generation information technology knowledge, a

Web

environment at the level of the whole company allows the interaction, the distribution of results and achievement of the organization’s personality.


The financial management offers the possibility to plan the “way” to achieve the proposed objectives, to cover a welldefined path and to take advantage of the new opportunities which come along. At the same time, it offers an image of the compatibility between the company’s internal processes, the 49

existing financial sources, their cost and way of appropriation, offering strategic recommendations to avoid unpleasant events that may occur.


The most decisive matter regarding the financial management is represented by the managing team’s level of involvement into the necessary changes. Without a strong involvement, the financial management can not be implemented.

50

BIBLIOGRAPHY

51

BIBLIOGRAPHY


Financial Management -Amity University
Annual Report, Bisleri International Private Limited
Websites • www.bisleri.com • www.discovery.com • www.google.com

52

APPENDIX & ANNEXURES

53

APPENDIX

QUESTIONNAIRE

1. Which brand of bottle water do you sale more? a. Kingfisher b. Kinlery c. Aquafina d. Bisleri e. Others 2. What is your monthly sale? ________________________________________________ 3. Which brand of bottle water do you prefer to sell more? ________________________________________________ 4. Why do you prefer to sell more this particular brand? a. Easily available b. More demand c. Quality Factor 5. Generally which brand of bottle water customer demand? ________________________________________________

54

6. Frequency of services no. of days] between two service of the company/WD in the area / market? Bisleri

Aquafina

Kingfisher

Kinley

7. When you talk of drinks, what brands come to your mind? ____________________________________________________ 8 Whether the customers are already aware about this product? ____________________________________________________ 9 Which are the brands available in your shop? ____________________________________________________ 10 Number of buyers who buys this brand per day? a) 0-5

b) 5-10

d) 10-15

e) Above 15

11 Are you satisfied with the current margins on this brand? Yes / NO ____________________________________________________

12 Whether you are getting any complaints from customers, specify? ____________________________________________________

13 To which brand and reason? Brand:Reason:-

_____________________________________ _____________________________________

55

Others