1. Rationale for Selecting the Report:
Dairy sector of Bangladesh is playing an important role in Bangladesh Economy. Country is producing milk well under the requirement and most of the demands are being met from import of dry milk from the international market. This country needs 7.227 million ton milk calculating 120ml per head. Out of which we produced only 2.686 million ton and met up our requirement by importing 52 thousand ton milk power from abroad. Still we have deficit of 3.91 million ton milk. At present, daily per capita milk consumption is less than 60 ml. We are spending 10 billion Taka per annum for importing milk powder from abroad.
The total milk market ...view middle of the document...
Cash is king when it comes to the financial management of a growing company. The gap between the time to pay suppliers and employees and the time to collect from customers is the problem, and the solution is cash flow management. At its simplest, cash flow management means delaying outlays of cash as long as possible while encouraging anyone who owes money to the business to pay it as rapidly as possible (How to better manage your cash Flow?, Apr 14, 2014, www.entrepreneur.com/article/66008).
For any business enterprise weather it is product/service oriented cash flow act as blood circulation. A clear understanding on fund management provides valuable inputs for every aspects of decision making for managers, shareholder, suppliers and lenders. It is also important to have in depth knowledge on fund management for a business graduate. This report will provide crucial knowledge on financial control.
Thereby this report has focused on the fund management procedure of NZDP to reveal the financial decision making pattern in response to the changing market environment. Throughout the report I would be discussing the various internal controls over the cash flow of NZDP.
2. Background of Organization:
New Zealand Milk Products Bangladesh Limited (NZMPB) has started its operation in Bangladesh from 1992, a fully owned subsidiary of Fonterra Co-operative group of New Zealand. Fonterra operates in more than 140 countries worldwide. Fonterra – Worlds Largest Milk Producer & Exporter. June 08, 1992 New Zealand Milk Products Bangladesh Ltd. was registered & incorporated.
In 2005 company changes its name to New Zealand Dairy Products Bangladesh Ltd & started operating under 100% local ownership. Today’s one of the biggest milk powder importer & marketer of Bangladesh. Business worth’s an average of US$ 28,169,014.00 per annum. NZDP employs around 250 people who are directly connected with the operations. Long-term potential is never sacrificed for short-time performance. The company’s priority is to bring the best & most relevant products to people, wherever they are, whatever their needs, throughout their lives, in its terms- “Dairy for life”
Table 1: Product Details
|Product Name |Product Layout |Country of origin |Stock Keeping Unit (SKU) |
| | | | |
|RED COW | |AUSTRALIA |1 kg BIB |
| | | |400 gm BIB |
|RED COW BUTTER OIL | |AUSTRALIA |450gm (Tin) |
| | | |900gm – (Tin) |
|DIPLOMA | ...