Full Proj GP

ANALYSIS OF FINANCIAL STATEMENT
1. INDUSTRY PROFILE
Industry Overview
The Indian Dairy Industry has made rapid progress since independence. A large number of
modern milk planes and product factories have since been established. These organize dairies have been successfully engaged in the routine commercial production of pasteurized milk and milk products. India is the worlds largest milk producer certified by the International Dairy Industry. This is the reason for the recognition of India as a dairy giant by the United Nations Food & Agriculture Organization (FAO). India has become the worlds No.1 milk producing country, with output in 1999-2000(marketing year ending March 2000) forecasted at 78 million tones. The annual rate of growth in milk production in India is between 5-6 percent, against the worlds at 1 percent. Indias annual milk production has more than trebled in the last 30 years, rising from 21 million tones in 1968 to an anticipated 80 million tones in 2001. This rapid growth and modernization is largely credited to the contribution of dairy cooperatives, under the Operation Flood (OF) Project, assisted by the many multi-lateral agencies, including the European Union, the World Bank and WFP (World Food Program),In the Indian context of poverty and malnutrition, milk has a special role to play for its many nutritional advantages as well as providing supplementary income to some 70 million farmers in over 5,00,000 remote villages.
Milk is the raw material of the dairy industry, which cannot be created artificially and stored for long time. The term Milk Market refers to the fluid whole that is sold to the individuals usually for direct consumption.The dairy industry has come up to the present stage because of the National Dairy Development Board and co-operation of the Government.
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ANALYSIS OF FINANCIAL STATEMENT Effective and coordinated efforts of the National Dairy Development Board lays down rules and regulations to be followed by the various co-operatives milk societies. Amul (Anand Milk Union Limited) was a pioneer in starting a co-operative milk producers society and thereafter many cooperative societies where started.
World Bank also had given credit of Rs.78 Crores for starting another society as Amul in 1975. In the year 1970 Operation Flood gave another boost to the dairy industry by providing soft loans, subsidies, plans, etc. This made dairy industry flourish and the members of the cooperatives milk producers society where able produce a large amount of milk. The various activities so started continued under Operation Flood-II&III.
Operation Flood, launched in 1970, has been instrumental in helping the farmers mould their own development. Thus, helping reach milk to consumers in 700 towns and cities through a National Milk Grid. It also helped eradicate the need for middlemen there by reducing the seasonal price variation. As a result of the cooperatives structure the whole exercise of production and distribution of the milk and milk products has become economically viable for farmers to undertake on their own. In this manner the farmer himself can enjoy the fruits of his own labour, instead of surrendering a majority of the profit to corrupt middlemen. Operation Flood, which started in 1970, concluded its Third Phase in 1996 Operation Flood Hailed as Indias most ambitious and highly successful rural development project has turned dairying in to a core economic activity in India. The World Bank for its achievements has launched the third and final phase of Operation Flood, which culminated in April 1996. Operation Flood, has helped knit ten million farmer members, spread over 70,000 villages into a catalyst of White Revolution in the country.
As India enters an era of economic reforms, agriculture, particularly the livestock sector, is position being a major growth area. The fact that dairying could play a more constructive role in promoting rural welfare and reducing poverty is increasingly being recognized. For example, milk production alone involves more than 70 million producers, each raising one or two cows/ buffaloes.
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ANALYSIS OF FINANCIAL STATEMENT Company can assess from the present scenario that Dairy Industry is one of the most important industry with a high level of razor-edged competition. Competition is many due to the large number brands in the market and milk being a staple food to almost every human being. Even today the leading nation is one, which is capable of obtaining food in abundance for their people. The Military Dairy Farms (oldest in Allahabad, 1889), the beginning salient features of the market of milk industry so far have been: MARKET OF MILK INDUSTRY IN INDIA: In organized milk handling was made in India with the Establishment of the following: Handling of milk in co-operative Milk Union (oldest: Allahabad, 1913) established all over the country on a small scale in the early stages. Pasteurization and bottling on a large scale for organized distribution was started long distance refrigerator rail-transport of milk form AMUL to Mumbai since 1945. As Aare (1950), Worley (1961), Calcutta (Haringhata, 1959), Delhi (1959), Chennai (1963), etc., Establishment of milk plant under the five-year plan for dairy development all over India. These were taken up with the dual object of increasing the national level of milk consumption and ensuring better return to the primary milk producer. Their main aim was to produce more, better and cheaper milk. Actual expenditure of the milk industry in Indias first three Five-year plans: Plan period I five year plan(1951-55) II five year plan (1955-61) III five year plan (1961-66) Expenditures Rs.7.8 Cores Rs 12 Cores Rs. 36.6 cores
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2. COMPANY PROFILE
a. Background and inception of the company

Organization Bangalore Milk Union Ltd. (Bamul) is a co-operative organization, which covers Bangalore Urban &Rural districts. It is a Milk Producers Farmers for dairy development activities. On January 1st1958 a pilot scheme under Department of Animal Husbandry, Government of Karnataka was started to carter, Veterinary Hospitals& Milk process facilities at National Dairy Research Institute (NDRI). In 1962, The Bangalore Milk Supply Scheme came into existence as an independent body. Bangalore Dairy, a joint venture of UNICEF, Government of India & Government of Mysore was dedicated to the people of Karnataka State on 23rd January 1965 by then Honble Prime Minister Late Sri Lal Bahadhur Shastriji. The Bangalore Dairy scattering over an area of Acres of land, the Dairy had an initial capacity to process 50,000 liters of milk per day. This Dairy was handed over to Karnataka Dairy Development Corporation (KDDC) in December 1975. As a part of Rural Milk Scheme of Mysore, Hassan & budgie under Operation Flood-II and then transferred to Karnataka Milk Federation (KMF) in May 1984 as a successor of KDDC. To cater to the growing demand for milk by the consumers of Bangalore City, the capacity was increased to 1.5 lakh liters per day under the operation flood-II during 1981 and later increased to 3.5 lakh liters per day under Operation Flood-III during 1994.
The Bangalore Urban & Rural Districts Milk Producers Co-operatives Societies Union Ltd., (BAMUL) was established in the year 1975. The milk-shed area of the Union comprises Bangalore Rural and Bangalore Urban Districts, having 2611 revenue villages. The Union has organized 1644, Dairy Co-operatives Societies (DCS) in 2055 villages, thereby covering 78% of the total villages in these two districts. In these DCSs, there are 3,21,238 milk producer members. Among them 96,653 members are women and 57,938 members belong to Schedule Caste and Schedule Tribes.
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ANALYSIS OF FINANCIAL STATEMENT As per the policies of the National Dairy Development Board (NDDB), Bangalore Dairy was handed over to Bangalore Milk Union (BAMUL) on 1st September 1988. The Union is capable of processing the entire milk procured, by timely implementation of several infrastructure projects like commissioning of Mega Dairy, new chilling centers & renovation of product block.
Bamul has been registered under MMPO by Central Registration Authority. Today, the Union has become biggest Milk Co-operative Union in Southern India. Bamul has been certified for ISO 9001-2000 and HACCP (IS-15000) for quality management and Food Safety Systems. The philosophy of this co-operatives milk producers organization is to eliminate middlemen and organize institutions owned and managed by milk producers, by employing professionals. Achieve economies of scale of rural milk producers by ensuring maximum returns and at the same time providing wholesome milk at reasonable price to urban consumers. Ultimately, the complex network of co-operative organization should build a strong bridge between masses of rural producers and millions of urban consumers & achieve a socio-economic revolution in the village community.
Bangalore Milk Union is offering most remunerative purchase price, which is considered as one among the best prices in the country, to its producers. Even though the Union is offering the best prices to the milk procured, the selling price of milk and milk products to consumers is the lowest in the country. Hence, the margin between the procurement price and sales price is one among the least in the country. This cost competitiveness was achieved due to large-scale milk procurement, processing and marketing, supported by effective and efficient management systems. In recognition to these efforts and achievements, the National Productivity Council (NPC) of Government of India has conferred Best Productivity Award five times and Energy Conservation Award by Bureau of Energy Efficiency (BEE) to the Union.
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b. Nature of the business carried

The organizations core operation is in the milk industry. The company main concentrates on producing milk products. The company is having at present 13 milk products manufacturing organizations, among that BAMUL which is located in Bangalore.
The Bangalore Milk Union Limited is a typical example of a successful family owned and managed business house, which constitutes the bulk of number of business houses prevalent in the country.
MILK PROCUREMENT: Bamuls annual average Milk Procurement for the year 2007-08 has been 7.5 lakh liters per day. During the flush season it has procured to the peak of 8.9 lakh liters per day. The average milk procurement price paid during the year is Rs.12.50 for every liter of milk supplied to the union.
TECHNICAL INPUT SERVICES: Bangalore Milk Union is providing various technical services to the producer member and their cattle through eleven camp offices one in each taluk i.e., ANEKAL, YELAHANKA, CHANNAPATNA, DEVANAHALLI, DODDABALLAPUR,
HOSAKOTE, KANAKAPURA, SOLUR, NELAMANGALA AND RAMANAGAR. From these camps the technical inputs like weekly mobile veterinary service, emergency veterinary service, artificial insemination service, periodical vaccinations, balance cattle feed sales, mineral mixtures sales, fodder development and fodder seed production, clean milk production practices, extension services fodder cattle feeding, breeding and milk production, etc., will be carried over.
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c. Vision, Mission and Quality Policy

Vision of Bamul Ltd. Modern milk co-operative in the country
Mission of Bamul Ltd. Ushering rural prosperity in the lives of member milk products
Quality of Bamul Ltd. Bamul is committed to meet ever changing needs of its member producers and other interested parties by adopting best standards and cost effective methods in procuring processing and marketing high quality milk and milk products at reasonable prices. Improve the quality of raw milk received from the chilling centers and bulk milk coolers of the union. Ensure that all the batches of milk, curds, butter and ghee to be sent to the market conforms to the standards stipulated under Bureau of Indian Standards, prevention
of food adulteration act and AGMARK. Achieve better plant efficiency by carrying out all the maintenance schedules in time. Achieve cost competitiveness by reducing the water consumption and energy consumption in the plant to a maximum extent
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d. Products / Services Profile PRODUCT NAME

1. Nandini Toned Milk
DESCRIPTION
Karnataka's most favorite milk, Nandini Toned Milk. Fresh and pure milk containing 3.0% fat and 8.5% SNF. Available in 500ml and 1ltr & 6 Liter packs. Better to use within a day from the date of pack
PRODUCT DESIGN
2. Nandini Homogenized Nandini Homogenized Milk is COW Milk pure milk containing 3.5% Fat & 8.5% SNF, which is homogenized and pasteurized. Consistent right through, it gives you more cups of tea or coffee and is easily digestible. Available in 500 ml packets. 3. Nandini Full Cream Nandini Full Cream Milk. Milk Containing 6% Fat and 9 % SNF. Rich, creamier and tastier milk, Ideal for preparing home-made sweets & savories. Available in 500ml and 1ltr packs. Apart from the Milk, the different Milk Products are Curds, Butter, Ghee, Peda, Paneer, Set Curds & Spiced Butter Milk are also BNMIT
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ANALYSIS OF FINANCIAL STATEMENT sold. 4. Nandini Curd Nandini Curd made from pure milk. It's thick and delicious. Giving you all the goodness of homemade curds. Available in 200 Gms and 500 grams & 1 Kg packs. Rich taste, smooth texture and the rich purity of cow's milk, makes any preparation a delicious treat. Available in 100 Gms, 200 Gms and 500gms cartons both salted and unsalted. 5. Nandini Ghee A taste of purity. Nandini Ghee made from pure butter. It is fresh and pure with a delicious flavour. Hygienically manufactured and packed in a special pack to retain the goodness of pure ghee. Shelf life of 6 months at ambient temperatures. Available in 200ml, 500ml, 1000ml sachets & 15.0 kg tins. 6. Nandini Butter Rich, smooth and delicious.
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ANALYSIS OF FINANCIAL STATEMENT Nandini Butter is made out of fresh pasteurized cream. Rich taste, smooth texture and the rich purity of cow's milk, makes any preparation a
delicious treat. Available in 100 gms(salted), 200 gms and 500gms cartons both salted and unsalted.
7. Nandini Butter Milk
Nandini spiced Butter Milk is a refreshing health drink. It is made from quality curds and is blended with fresh green chilies, green coriander leaves, asafetida and fresh ginger. Nandini spiced butter promotes health and easy digestion. It is available in 200ml packs and is priced at most competitive rates, so that it is affordable to all sections of people.
8. Nandini Peda
No matter what you are celebrating! Made from pure milk, Nandini Peda is a delicious treat for the family. Store at room temperature approximately 7 days.
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ANALYSIS OF FINANCIAL STATEMENT Available in 250gms pack containing 10 pieces each.
e. Area of Operation Global / National / Regional

Anekal Yelahanka Channapatna Devanahalli Doddaballapur Hosakote Kanakapura Solur Ramanagar Nelamangala
f. Ownership Pattern
Bamul is mainly a co-operative society. The (DCS) dairy co-operative societies at the village level are the members of the bamul. Each dairy co-operative society elects one member and they are the owners. The member producers and their Dairy Co-operative Societies (DCS) are the vital constituents of the Union and their progress is the judging yardstick on the efficiency of the unions operation. Hence the maximum importance has been given to their development.
As on March 2007 in these DCS, there are 3, 21,238 milk producer members are enrolled and out of which 96,653 are women and 57,938 members belong to schedule caste and schedule tribes. Finally to conclude farmers and the producers including the members of the bamul.
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g. Competitors Information
The success of each and every business unit mainly depends on how brilliantly it faces the competition. Bamul is not out of competition, it has almost 65% market share in Bangalore and presently it is the brand leader for milk products. The main competitors to bamul are: Swastika Gomata Thirumala Nilgiris Heritage Arogya Good Morning
h. Infrastructural Facilities
The strategy of Bangalore Milk Union is Procure More, Sell More & Serve More and reaping the benefits of economies of scale. In order to realize this strategy, the Union has implemented the following projects so that more and more milk can be procured and processed. This will help us to serve our producer members by passing on the maximum benefits; we are consciously adopting the growth-oriented strategy of helping our producers to grow by ourselves growing constantly.
At the heart of the system is a reputed Allen-Bradley PLC-5/80C platform, which communicates to analog and digital I/O on control net a producer-consumer communication network. Customers are also seeking significant benefits. Milk now reaches market faster, at a better quality and with a longer self-life.
Apart from the existing seven chilling centers Bamul is also going to commission one more chilling center at Kanakapura from 1st October 2004 with a chilling capacity of 50,000 liters per day.
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Mega Dairy with a capacity to process 6 lakh liters of milk per day expandable to10 IIpd has been built by investing Rs.38.70 crores obtained as term loan from National Dairy Development Board. The Mega Dairy has latest state-of-the-art technological facilities in dairy processing and the union will have the ability to manufacture milk and milk products to world class standards. Although Bamul sets high standards for its products and customer serve, its prior reliance on manual operations made it impossible to keep with surging demand. In designing mega dairy, Bamul looked towards an automated system that would allow it to achieve consistent quality parameters for each product. Energy and manpower would also be more effectively optimized and controlled and all plant equipment would be integrated.
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i. Awards and Achievements of Bamul Ltd.

MMPO-1992 Registration No. 42/R.MMPO/93 dated 7th June 1993 renewed on 13th May 1999. Bangalore Dairy ISO 9001-2000 certified by SAI GLOBAL a reputed Australian based company on 19th February 2003. Bangalore Dairy HACCP IS-15000 Certified by SAI GLOBAL a reputed Australian based company on 19th February 2003. Milk Processing capacity of 6,00,000 liters per day (LPD) fully automated Mega Dairy started functioning from 17th December 2000.
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ANALYSIS OF FINANCIAL STATEMENT j. Workflow model (End to End)

Raw Milk 32 C C
0 0
Raw Milk
Milk Inlet 4 C
Milk Inlet 4 C
Processing section Chilled Water Inlet Pasturiese r Milk Storage Tanks Cooling System
Chilled Water 0 Inlet 2 C

0
Chilled Water Inlet 4 C Cream
Milk Inlet 4 C
Cream Tank
Butter Section Butter Cheese
PACKING Ghee
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k. Future growth and prospects

The company wants to become not only the largest union, but also become one amongst the bestrun milk unions in the country. The union is aware of the challenges of the new private entrants, who are mainly thriving on unfair trade practices. They procure milk at least cost, without bothering about the welfare of the producers and without extending any technical inputs for improving milk production. They market milk by resorting to unhealthy and unethical practices deceiving the unsuspecting consumers. The union wants to counter this in a positive manner by trying to improve its efficiency of operation and market promotion. It wants to follow the strategy of cost-competitiveness, which is hard to match by the competitors. Future plans: Gasifier System at all the chilling centers Utilization of Methane gas generated from ETP. Rain water harvesting Installation of continuous evaporator of condensing milk Appointing external agency to identify and adopt the more efficient energy savings system.
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3. McKENSYS 7S FRAME WORK

The 7S model is better known as McKinseys 7S. This is because the two persons who developed this model, Tom Peters and Robert Waterman, have been consultants at McKinsey & Co at that time. They published their 7S Model in their article Structure Is Not Organization (1980) and in their books The Art of Japanese Management (1981) and In Search of Excellence (1982). The model starts on the premise that an organization is not just structure, but consists of seven elements:
Those seven elements are distinguished in so called hard Ss and soft Ss. The hard elements are feasible and easy to identify. They can be found in strategy statements, corporate plans, organizational charts and other documentation The four soft Ss however, are hardly feasible. They are difficult to describe since capabilities, values and elements of corporate culture are continuously developing and changing. They are highly determined by the people at work in the organization. Therefore it is much more difficult to plan or to influence the characteristics of the soft elements. Although the soft factors are below the surface, they can have a great impact of the hard structures, strategies and systems of the organization.
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THE HARD Ss 1. STRUCTURE: The term structure in 7s framework model refers to the organizational structure of the company. The designs of the organizational structure is critical task to the management of an organization, it is the skeleton of the whole organization. Organization structure refers to relatively more durable organizational arrangements and relationship. It prescribes the formal relationship among various positions and activities. Arrangement about reporting how an organizational member is to communicate with other members, the various activities performed by members is all the part of organizational structure. Organizational structure performs four major functions: It reduces internal uncertainty arising out of variable unpredictable, random human behavior within the organization through control mechanisms. It reduces external uncertainty through forecasting, research and planning in the organization. It undertakes a wide variety of activities through devices such as departmentation, specialization and division of labor and delegation of authority. It enables the organization to keep its activities coordinated and to have a focus in the midst of diversity in the pursuit of its objectives.
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Managing Director
General Manger
PURCHASE
PRODUCTION
QUALITY DEPT.
MARKETING & SALES
DESPATCH
MANAGER MANAGER MANAGER ASSISTANT MANAGER DEPUTY MANAGER SUPERVISOR STAFF ASSISTANT MANAGER ASSISTOR MANAGER INCHARGE
STAFF ASSISTANT MANAGER WORKER
2. STRATEGY:
A set decisions and actions aimed at gaining a sustainable completive advantage.
Strategies for marketing by BANGALORE MILK UNIUN LTD All the vehicles are changed too medium insulated vehicle to ensure timely supply Brand building is taken up through acrylic sign boards, glow sign boards, truck painting, wall paintings etc. Provision has been made to encourage the agents to sell more milk during flush, (Oct-Dec) by giving 20 paisa incentive School children/ Mahila mandal will be taken for dairy visit to develop confidence about quality of milk BNMIT
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ANALYSIS OF FINANCIAL STATEMENT Door to Door campaigning is taken to educate consumers about quality of NANDINI milk compared with the other existing private brands of milk Every year agents orientation programme to encourage, understand the problems and to solve Milk is made available throughout the day opening anytime milk counters in Bangalore city area by providing VISI coolers/deep freezers Presently private branches like heritage have captured institutional market by supplying homogenized milk. Hence it has introduced homogenized milk to capture institutional market. Promotional Strategies The main promotional techniques adopted by the Bangalore milk union Ltd (BAMUL) are 1. School children will be brought to dairy for visit to create awareness. 2. Arrangements have been made for the visit of women group association to dairy. 3. Advertisement campaign by way of putting holders, providing display materials to retailers are undertaken. 4. All through the day advertisement are given to cable operators for telecast and placing in local papers. 3. SYSTEM: The term systems in the 7s framework refers to all the rules, regulation, procedures and process both formal and informal, that compliment the organization structure to work successfully. System and process of controlling is the measurement and correction of performance in order to make sure that enterprise objective and the plans devised to attach them are being accomplished. BAMUL is an organization, which is systematic in doing its day-to-day work and any work for that matter is done in a very systematic and sophisticated manner. The various systems that exist at Bamul are as follows: MIS System Billing System Quality control system Purchase System Procurement system(milk) Recruitment System
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ANALYSIS OF FINANCIAL STATEMENT THE SOFT Ss 1. SKILL: Waterman considers skills as one of the most crucial attributes or capabilities of an organization. Organizations have strengths in number of areas but their key strength dominant skills are few. These are developed over a period of time and are as result of the interaction of number trips performing certain tasks. Skills in the Mckinsey framework are equivalent of Seizeniks- distinctive competencies to dominant skills or distinctive competencies of organization are part to the organizational character.
BAMUL is the company well known for its quality products and services which is evident through state-of-the-art design and technology. It is the company which is bench marked for its quality and customer service.
The training steps followed in BAMUL is explained below: The training needs of the employees are monitored by the HRD head in accordance with the functional head. Head of HRD shall be responsible for organizing relevant training and development program. Training needs for all personal are identified once in a year and are recorded in training needs record format. The training will divide into two categories:
Core Programs: To each level of officers as soon as are promoted to the responsible levels. Specialized Programs: provided as per the training requirements mentioned in the performance appraisal report of the officers.
The training methods used are; On- The-Job-training: It includes imparting skills by exposing the employee to the work environment. It include job rotations and under study assignments. Off- The-Job-training: It involves learning skills through simulations exercises such as case analysis, role playing, group interaction etc.
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ANALYSIS OF FINANCIAL STATEMENT 2. STYLE: Participative not Authoritative: Participative of every one is hallmark of BAMUL BAMUL work force is participative by nature. Each employee, workers are contributing themselves at their level best towards the companies policies, procedures, programs and growth. In every perspective the company considered all employees, workers in decision making planning and the company respects the suggestions, opinions, ideas of its human resources. Employees can be participative in plans but cannot change any acts made by the co-operative society. No superior does have the individuals decision making unlike that of private sector companies.
3. STAFF: Classification of staff: Technical staff: Technical staff comprised of the engineers, diploma holders, etc are directly involved in production. Maintenance of machines, operating of CNC machines, repairing of machines are look forward by the technical staff. Even some times job rotation policy of the company indulges the technical staff to carry non-technical work.
Non technical staff: The main objective of non-technical staff is to carry the business of management. Post graduates, graduates and highly qualified peoples constitute non-technical staff. The main function of nontechnical staff is to maintain paper works, computer works, planning, decision-making, etc., the non-technical staff indirectly involved in production process.
Duties and responsibilities of the technical and non-technical staff are as follows: To conserve and safeguard the company premises. To respect the right of peers, sub-ordinates, superiors, etc., To maintain discipline in the working hours and at work place. BNMIT
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To follow the rules and regulations setup by the company. To contribute for the well-being and growth of the company. To enrich the knowledge about the job.
4. SHARED VALUES: The company has set up certain values from its inception. As the company is a community that includes client, shareholders, society, employees, etc., certain values are followed their development. A Global Brand; it is core value of the company. To become global brand company in making its activities wider through maintaining good quality and services. Customer Services; company has to maintain customer relation and development. For the purpose, it is meeting them periodically to listen their needs and anticipating exceptions. Crossfunctional teams continue to visit various customer sites which have helped in fine tuning customer satisfaction. Social Welfare; The Company is regularly involved in social welfare activities. It is providing medical and other facilities to its employees and also donating funds to the society for their well being. Environment Pollution Control; To protest the environment, tree plantations were undertaken in and around factory premises. Various trees are planted in the vacant lands belonging to the company for ecological balance in the surrounding of the company and cleanliness.
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4. SWOT ANALYSIS
SWOT analysis is an auditing of an organization and its environment. It is the analysis of the strength, weakness, opportunity and threats of the organization. Strength and weakness are internal; while opportunities and threats are external to the company. Strengths Biggest milk Co-operative union in Southern India. Automated computerized plant. Market leader with brand identity Wide product range An ISO, HACCP, EMS certified COMPANY. Winner of Best productivity Award by National Productivity Council (NPC) for five times and Energy Conservation Award by Bureau of Energy Efficiency (BEE) Maintaining Uniform Quality. Well-organized distribution channel. Reasonable price. Weakness Inflexible traditional governmental structure. Slow decision making process. High manpower overheads. Less advertisement. Promotion is based on seniority.
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Opportunities Ever expanding market for milk and milk products. Favorable export environment of milk products to foreign countries at higher profit margin, with the liberalization of global economy. New markets can be created and captured through innovative products Existing brand Nandini can be used to expand its product line. Need not to invest on brand awareness. The existing infrastructure can be used to meet the considerable rise in demand in future, with little or no change. Threats Liberalization of milk industry Irregular power shutdowns. Entering of MNCs into dairy industry. Entry of loose milk providers at cheaper rates. Inter dairy completion.
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5. ANALYSIS OF FINANCIAL STATEMENTS

Balance Sheet as at March 31st, 2010
PARTICULARS SOURCES OF FUNDS PAID UP SHARE CAPITAL NOMINAL MEMBERSHIP SHARE SUSPENSE RESERVES & SURPLUS LOAN LIABILITY CURRENT LIABILITIES PROVISIONS PROFIT & LOSS A/C GRAND TOTAL APPLICATION OF FUNDS FIXED ASSETS WORK IN PROGRESS DEFERRED REVENUE EXPENDITURE INVESTMENTS SUB TOTAL (2) CURRENT ASSETSLOANS-ADVANCES INVENTORY SUNDRY DEBTORS CASH & BANK BALANCES LOANS & ADVANCES SERVICE DEPOSITS OTHERS A+B+C+D+E+F:SUB TOTAL GRAND TOTAL(2+4) 2009-10 AMOUNT 127894000 320900 838030 248831988 231655460 448753260 46458997 1104752635 547850047 2796794 15236340 18229152 584112332 2008-09 AMOUNT 117500000 305600 958800 220322307 282181760 313539778 52906464 987714708 567900794 1041455 21577681 18229152 608749082
63377705 105826408 301776956 13374223 18901028 17383982 520640303 1104752635
98785653 71535099 165607914 16434579 18962628 7639753 378965626 987714708
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6. LEARNING EXPERIENCE
The project helped me to know the various departments in detail, and I got the knowledge about the organization from different aspects and to study the function of different departments. This training was very useful as it manifolds our confidence apart from the theoretical knowledge. To know the various departments effectively contribution towards the fulfillment of organization goal. To know about the partial aspects of the functioning of an organization. It helped to know the relation between various departments and co-relation of them. To know the activities of the different staff. To know about welfare facilities adopted by company.
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PART B
1 a. GENERAL INTRODUCTION
Meaning of Financial Statement
The term financial statement refers to two basic statements which an accountant prepares at the end of an accounting period for a business enterprise. These are: Balance Sheet (or Statement of Financial Position) which reflects the assets, liabilities and capital as on a certain date, and Profit and Loss Account (or Income Statement) which shows the results of operations i.e., profit or loss during a certain period. Other statements Apart from the Balance Sheet and Profit and Loss Account, the following financial statements are also prepared. Profit and Loss Appropriation Account it shows how profit of a business is utililsed for declaring dividends, transfer to general reserve or other reserves. Funds Flow Statement this shows increase or decrease in working capital during the accounting period. Cash Flow Statement this shows changes in cash position between the beginning and end of the accounting period.
Nature of Financial Statements

The financial statements provide a summary of the accounts of a business enterprises. According to The American Institute of Accountants, financial statements reflect a combination of recorded facts, accounting conventions and personal judgements and the judgements and conventions applied affect them materially.
Thus, the data exhibited in financial statements are the results of the combined effect of: a) Recorded facts The financial statements show the factual data drawn from the financial accounts. Example: items like cash in hand and at bank, cost of fixed assets, salaries paid etc., are the facts recorded in the books
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ANALYSIS OF FINANCIAL STATEMENT b) Accounting Conventions Financial statements are affected to a large extent by the various accounting concepts and conventions. Example: Because of going concern concept, fixed assets are recorded at cost and not at their market value. Similarly, due to the convention of conservatism, the stock-in-trade is valued at cost or market price whichever is less. c) Personal Judgments Although an accountant is guided by accounting concepts and conventions in preparing the financial statements, he has to exercise personal judgment in many cases which affect the financial statements. Example: An accountant has to decide whether to use straight line method or written down value method for depreciation of fixed assets. Similarly, an accountant has to make a judgment whether to provide 2% or 5% as provision for bad and doubtful debts.
Meaning of Analysis and Interpretation

Analysis of financial statements means to critically examine the composition of an item or amount appearing in the financial statements. In other words, analysis means breaking up of an amount into its elements so that a particular element may be correlated to another and signinficant relationship may be established between them and conclusions may be drawn on the data presented in financial statments.
Such an analysis makes of various analytical tools and techniques to data of financial statements so as to derive from them certain relationships that are significant and useful for decision making. In the words of John N. Myers, Financial Statement Analysis is largely a study of the relationships amont the various financial factors in a business as disclosed by a single set of statements and a study of the trends of these factors as shown in a series of statements.
Interpretation is determining the meaning and drawing inferences or conclusions with regard to the results of significant relationship between the items correlated.
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ANALYSIS OF FINANCIAL STATEMENT Thus, financial statement analysis converts the mass data into useful information which is always in scarce supply. It points out the strengths and weakness of a business undertaking by use of various techniques such as ratio analysis, comparative statements etc. Such analyzed
information is used by the management, bankers, creditors, investors and others to form judgement about the operating performance and financial position of the business. Thus, financial statement analysis helps in evaluating a business performance according to some specific objectives.
Types of Financial Statement Analysis

Keeping in mind the requirements of different parties interested, financial statement analysis may be classified as follows. 1. Internal and External Analysis: When analysis is done on behalf of the management who have access to the internal accounting records of the firm, it is called internal analysis. Such an analysis serves the purpose of measuring the managerial efficiency of various functions of the business. External analysis is done by outsiders like share holders, creditors, investors and potential investors, government agencies, etc., who do not have access to the detailed internal records of the firm. Thus external analysis is dependent on the published financial statements of the firm.
2. Horizontal and Vertical Analysis: Horizontal Analysis is that which covers financial data of more than one year (may be upto 5 or 10 years). The figures for various years are presented horizontally over a number of columns. Trend percentages and Comparative financial Statements are types of horizontal analysis. This type of analysis is also called dynamic analysis. Vertical Analysis is also known as static analysis, covers a period of one year only and analysis is made on the basis of one set of financial statements. Common size financial statements and Ratio Analysis are techniques employed in vertical analysis.
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Procedure for financial statements analysis

The analyst should acquaint himself with the principles and postulates of accounting. One should know the plans and policies of the management so that he may be able to find out whether these plans are properly executed or not. The extent of analysis should be determined so that the sphere of work may be decided. The financial data given in the statements should be re-organized and re-arranged. A relationship is established among financial statements with the help of tools and techniques of analysis such as ratios, trends, common size, funds flow etc. The information is interpreted in a simple and understandable way. The conclusions drawn from interpretation are presented to the management in the form of reports.
Parties involved in Financial Statement Analysis

Information contained in financial statements is useful to different categories of users of financial data. These are managers, shareholders, creditors, Government, auditors and other interested groups. Uses of financial data for each of these are explained in detail below. 1. Management: Management of a company is interested in its financial condition, profitability and progress. It uses a number of methods, tools and techniques available to analyse the financial data. Such analysis is used by the management to exercise control over the business and to make decisions to run it more efficiently.
2. Shareholders: Shareholders are the suppliers of basic capital to run the business. Such capital is exposed to all the risks of ownership. Shareholders are interested in the profitability, dividends declared and market value of their holdings. The current earnings of the company determine both dividends and market value of the shares.
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3. Creditors: Creditors include short-term creditors like bankers, trade creditors and also long-term credit grantors like debenture-holders and financial institutions, etc. All creditors are mainly interested in the short-term and long-term solvency of the company. They are also interested in the profitability because profit is viewed as the primary source for payment of interest on loans and debentures.
4. Purchaser of business: Any person interested in the purchase of a going concern analyses the financial statements to determine its real value. It makes an assessment of the financial and operating strengths and weaknesses of the business.
5. Government: Financial statements are used by various government departments like income tax, sales tax, excise duty, etc., to determine the tax liability of the company. On the basis of such financial statements of companies in different industries, the government determines tax policy, import-export policy, industrial policy, etc.
6. Other interested groups: Financial statement analysis also serves the needs of many other user groups. For example, workers, trade unions analyze the financial statements to prepare ground for collective bargaining, to claim bonus etc.Lawyers also use financial statement analysis in furtherance of their investigative and legal work. Researchers also get useful data from the analysis of financial statment to make comparative study of profitability of many companies.
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Significance and purposes of financial statement analysis

Financial statement analysis performs the essential function of converting mass data into useful information. Such analyzed financial information serves many and varied purposes as described below:
1. Judging profitability: Profitabililty is the measure of the efficiency and success of business enterprise. A company which earns profit at a higher rate is definitely considered a good company by the potential investors. The potential investors analyze the financial statement to judge the profitability and earnings capacity of a company so as to decide whether to invest in a company or not.
2. Judging liquidity: Liquidity of a business refers to its ability to pay off its short term liabilities when these become due. Short term creditors like trade creditors and bankers make an assessment of liquidity before granting credit to the company.
3. Judging Solvency: Solvency refers to the ability of a company to meet its long term debts. Long term creditors like debenture-holders and financial institutions judge the solvency of a company before any lending decisions. They analyze companys profitability over a number of years and its ability to generate sufficient cash to be able to repay their claims.
4. Judging the efficiency of management: Performance and efficiency of management of a company can be easily judged by analyzing its financila statments. Profitability of a company is not the only measure of companys managerial efficiency. There are number of other ways to judge the
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ANALYSIS OF FINANCIAL STATEMENT operational efficiency of management. Financial analysis tell whether the resources of the business are being used in the most effective and efficient way.
5. Inter firm Comparison: A comparison study of financial and operating efficiency of different firms is possible only after proper analysis of their financial statements. For this purpose it is also necessary that the financial statements are kept on a uniform basis so that financial data of various firms are comparable.
6. Forecasting and budgeting: Financial Analysis is the starting point for making plans by forecasting and preparing budgets. Analysis of the financial statements of the past years helps a great deal in forecasting for the future.
Limitations of Financial Statements:

It is a general impression that financial statements are precise, exact and final. But sometimes these statements conceal some very important information. As such they suffer from certain limitations. 1. Effect of accounting concepts and conventions: Various concepts and conventions of accounting affect the values of assets and liabilities as shown in the Balance Sheet. Similarly profit or loss disclosed by Profit and Loss Account is also affected by these concepts and conventions.
2. Effect of personal judgments: The financial statements are infiluenced, to a certain extent, by the personal judgements of the accountant.
3. Recording only monetary transactions: Financial statements record only those transations and events which can be expressed in terms of money. But there are many factors which are qualitative in nature and cannot be expressed in terms of money. But there are many factors which BNMIT
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ANALYSIS OF FINANCIAL STATEMENT are qualitative in nature and cannot be expressed in monetary terms. These nonmonetary factors do not find any place in the financial statement.
4. Historical in nature: Financial statements disclose data which is basically historical in nature i.e., it tells what has happened in the past. These statements do not give future projections.
5. Ignores human resources: No business can prosper without an efficient work force, but financial statements do not include human resources which is a very important asset for a business.
6. Ignores social costs: Apart from earning a fair return on investments, a business has certain social responsibilities. Financial statements do not make any attempt to show the social cost of its activities.
Principal tools of analysis

In the analysis of financial statements, the analyst has number of tools from which he has to choose best suited for his specific purpose. The following are the principal tools of analysis of financial statements. 1. Comparative Financial Statements. Comparison of financial statements is one of the very important tool of analysis of financial statements. It has been seen that Balance Sheet and Profit and Loss Account are the two most important financial statements. Information obtained in these financial statements for a particular year is extremely important and useful. However, such information becomes still more useful if it is compared with the data shown in the financial statements of the previous few years. Such comparison of financial statements is accomplished by setting up Balance Sheet and Profit and Loss Account of two or more years side by side and studying the changes that have occurred in the individual figures therein from year to year and over the years. Thus, comparison of BNMIT
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ANALYSIS OF FINANCIAL STATEMENT financial statements means financial statements of a company for any year are compared with financial statements of the same company for earlier years. Comparative financial statements take the form of:
Comparative balance sheet Comparative profit and loss account
2. Common Size Statements: Common size statement is a type of comparative financial statement in which each item of the financial statement is expressed as a percentage of the appropriate total. The appropriate total is taken as 100% and each item is shown as a proportion of this 100%. Such a statement is also known as 100% Statement or Vertical analysis. It should be noted that when a comparative statement is prepared for a number of years to show the trend, it is known as horizontal analysis. A common size statement may be prepared for balance sheet as well as income statement.
3. Trend Percentages: Trend percentages is a technique of studying financial statements of a company over a number of years. Under this method, a representative year is selected as the base year and the values of items in the base year are assumed to be 100. Then the relationship of each item in the subsequent years is expressed as a percentage of the same item in the base year. This means, when an item is expressed as 100, all other values expressed in term of the base year will reflect in trend, upward or downward, in relation to 100. Any year may be taken as the base but generally the starting or initial year is taken as the base year. Trend percentages may be used for both Balance Sheet and Profit and Loss Account.
4. Cash flow statement: It is the statement which describes the inflows (sources) and outflows(uses) of cash and cash equivalents in an enterprise during a specified period of time. It summaries
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ANALYSIS OF FINANCIAL STATEMENT the causes of changes in cash position of a business enterprise between dates of two balance sheets.
Classification of cash flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities
Uses of cash flow statement It helps in evaluation of cash position of the firm It helps in knowing the future cash position of a concern To find the variations and deficiency or other wise in the performance so as to enable the firm to take immediate and effective action It helps in planning the repayment of loans, replacement of fixed assets and other similar long-term planning of cash. Limitations of cash flow statement: i. It ignore we the basic accounting concept of accrual basis. ii. It helps in the analysis of financial operations iii. It throws light on many perplexing questions of general interest iv. It helps in the formation of a realistic dividend policy v. It helps in the proper allocation of resources vi. It acts as a future guide vii. It helps in apprising the use of working capital viii. It helps in knowing overall credit worthiness of a firm
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5. Fund flow analysis It is the method by which we study changes in the financial position of a business enterprise between beginning and ending financial statements dates. Fund flow statement is a statement which indicates various means by which the funds have been obtained during a certain period and the ways to which these funds have been used during the period. Uses of the fund flow statement i. It helps in the analysis of financial operations ii. It throws light on many perplexing questions of general interest iii. It helps in the formation of a realistic dividend policy iv. It helps in the proper allocation of resources v. It acts as a future guide vi. It helps in apprising the use of working capital vii. It helps in knowing overall credit worthiness of a firm Limitations of fund flow statements I. It is not substitute of an income statement or a balance sheet. II. It cannot reveal continuous changes III. It is not an original statement but simply are-arrangement of data given in the financial statements IV. It is essentially historic in nature and projected funds flow statement cannot be prepared with much accuracy V. Changes in cash are more important and relevant for financial management than the working capital Procedure for preparing the fund flow statement: --schedule of changes in working capital --statement of sources and application of funds BNMIT
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6. Ratio analysis
It is the technique of analysis and interpretation of financial statements. It is the process of establishing and interpreting various ratios for helping in making certain decisions.
Ratio analysis is widely used tool in financial performance evaluation. It is defined as the systematic use of ratios to interpret the financial statements so that the strength and weaknesses of a firm as well as its historical performance and current financial condition can be determined.
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Meaning of Ratio Analysis

Ratio Analysis is a very powerful and most commonly used tool of analysis and interpretation of financial statements. It concentrates on the inter-relationship among the figures appearing in the financial statements. Ratio analysis helps to analyze the past performance of the company and to make future projections. It allows various interested parties like management, shareholders, potential investors, creditors, government and other analysts to make an evaluation of the various aspects of companys performance from their own point of view and interest.
In other words, a ratio is simply one number expressed in terms of another number. It expresses a mathematical relationship between one number and another. In financial analysis, a ratio is used as an index or yardstick for evaluating the financial performance of a firm.
Interpretation of Ratios
Broadly speaking, ratios may be interpreted in four different ways as follows: 1. An individual ratio may have significant of its own. For example, a ratio of 25% of net profit on capital employed shows a satisfactory return. 2. Ratios may be interpreted by making comparison over time. For example, ratio of net profit on capital employed is 25%. This ratio may be compared with same ratio of a number of past years. Such a comparison will indicate the trend of rise, decline or stability of the profitability. 3. Ratios of any one firm may be compared with ratios of other firms in the same industry. This is known as inter-firm comparison. Such a comparison shows the efficiency of a firm as compared to other firms. 4. Ratios may be interpreted by considering a group of several related ratios. For example, the utility of current ratio is enhanced if it is used along with other related ratios like quick ratio or acid test ratio, stock turnover ratio, etc. Similarly, various profitability ratios may be considered in relation to each other.
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Uses and significance of ratio analysis

The ratio analysis is one of the most powerful tools of financial analysis. It is used as a device to analyze and interpret the financial health of enterprise. The use of ratios is not confined to financial managers only. The ratios have wide applications and are of immense use today. Managerial uses of ratio analysis Utility to shareholders Utility to creditors Utility to employees Utility to government Utility to tax audit requirement
Limitations of Ratio Analysis

The ratio analysis is one of the most powerful tools of financial management. Though ratios are simple to calculate and easy to understand, they suffer from some serious limitations. Limited use of a single ratio Lack of adequate standards Inherent limitations of accounting Change of accounting procedure Window dressing Personal bias Uncomparable Absolute figures distortive Price level changes
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Classification of Ratios
Ratios may be classified as given below:
(A) Classification according to the nature of accounting statement from which the ratios are derived. 1. Balance Sheet Ratios: these ratios deal with the relationship between two items appearing in the balance sheet. Ex: current ratio, liquid ratio, debt equity ratio, etc. 2. Profit and Loss Account Ratio: This type of ratios show the relationship between two items which are in the profit and loss account itself. Ex: gross profit ratio, net profit ratio, operating ratio, etc. 3. Combined or Composite Ratios: These ratios show the relationship between items one of which is taken from Profit and Loss Account and the other from the Balance Sheet. Ex: Rate of return on capital employed, debtors turnover ratio, stock turnover ratio, capital turnover ratio, etc.
(B) Classification from the point of view of financial management or objective 1. Liquidity Ratios 2. Capital Structure Ratios 3. Turnover Ratios 4. Profitability Ratios
1. Liquidity Ratios Liquidity means ability of a firm to meet its current liabilities. The liquidity ratios, therefore, try to establish a relationship between current liabilities, which are the obligations soon becoming due and current assets, which presumably provide the source from which these obligations will be met. In other words, the liquidity ratios answer the question: Will the company probably be able to meet its obligations when they become due? The following ratios are commonly used to indicate the liquidity of business.
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ANALYSIS OF FINANCIAL STATEMENT a. Current Ratio (Working Capital Ratio) This ratio is most commonly used to perform the short-term financial analysis. Also known as the working capital ratio, this ratio matches the current assets of the firm to its current liabilities. Current Ratio = Current Assets Current Liabilities Current ratio throws light on the short-term financial position and policy. It is an indicator of a firms ability to promptly meet its short-term liabilities. Normally, a current ratio of 2:1mis considered satisfactory.
b. Quick Ratio This ratio is also known as acid test ratio or liquid ratio. It is a more severe test of liquidity of a company. It shows the ability of a business to meet its immediate financial commitments. It is used to supplement the information given by the current ratio. Quick Ratio = Quick (or Liquid) Assets Quick Liabilities Quick ratio is a more rigorous test of liquidity of a firm than the current ratio. When quick ratio is used along with current ratio, it gives a better picture of the firms ability to meet its short-term liabilities out of its short-term assets. This ratio is of great importance for banks and financial institutions. Generally, a quick ratio of 1:1 is compared to represent a satisfactory current financial position. c. Absolute Liquid Ratio This is also known as super quick ratio or cash ratio. Absolute Liquidity Ratio = Cash in hand and at bank + Short-term Marketable Securities Current Liabilities In calculating this ratio, both inventories and receivables are deducted from current assets to arrive at absolute liquid assets such as cash and easily marketable investments in securities. Higher the ratio, the higher is the cash liquidity. A low
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ANALYSIS OF FINANCIAL STATEMENT ratio is not a serious matter because the company can always borrow from the bank for short-term requirements. 2. Capital Structure Ratios or Gearing Ratios They are also called as long-term solvency ratios or leverage ratios. These are used to analyze the long-term solvency of any particular business concern. There are two aspects of long term solvency of the firm. (i) ability to repay the principal amount when due, and (ii) regular payment of interest. In other words, long term creditors like debenture holders, financial institution etc., are interested in the security of their loan amount as well as the ability of the company to meet interest costs.
a. Debt-Equity Ratio: This ratio attempts to measure the relationship between long-term debts and shareholders funds. In other words, this ratio measures the relative claims of long-term creditors on the one hand and owners on the other hand, on the assets of the company. This ratio is calculated by any of the two methods: Method I: Debt-Equity Ratio = Long term debts Shareholders funds Method II: Debt-Equity Ratio = Total debts (short-term + long-term) Shareholders funds The debt-equity ratio of 1:1 is generally acceptable. This ratio also indicates the extent to which a company has to depend upon outsiders for its financial requirements.
b. Proprietary Ratio: This is a variant of debt-equity ratio. It measures the relationship between shareholders funds and total assets. Proprietary Ratio = Shareholders funds Total Assets
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ANALYSIS OF FINANCIAL STATEMENT Shareholders funds comprise of ordinary share capital, preference share capital and all items of reserves and surplus. Total assets include all tangible assets and only those intangible assets which have a definite realizable value. This ratio shows the extent to which shareholders own the business and thus indicates the general strength of the business.
c. Interest Coverage Ratio: This is also called as Debt Service Ratio or Fixed Charges Cover. This ratio indicates whether the business earns sufficient profit to pay periodically the interest charges. Interest coverage ratio = EBIT Fixed interest charges This ratio is very important from lenders point of view because it indicates the ability of a company to pay interest out of its profits. This ratio also indicates the extent to which the profits of the company may decrease without affecting the ability to meet its interest obligations. The standard for this ratio for an industrial company is that interest charges should be covered 6 to 7 times. d. Debt to Total Funds Ratio: This ratio shows the relationship between debts and total funds employed in the business.
Debt to Total Funds Ratio =
Debt Total Funds
The term debt includes long-term loans and current liabilities like sundry creditors, bills payable, bank overdraft, outstanding expenses, etc. Total funds employed include shareholders funds, long-term loans and current liabilities. This ratio shows the proportion of funds supplied by outsiders in the total funds employed in the business. The lower this ratio, the better it is for creditors because they are more secure and vice-versa, higher this ratio it gives a feeling of insecurity to the creditors.
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ANALYSIS OF FINANCIAL STATEMENT e. Capital Gearing Ratio: This is the ratio between the fixed interest bearing securities and equity share capital. Fixed income securities include debentures and preference share capital. Capital Gearing Ratio = Fixed income securities Equity shareholders fund A company is highly geared if this ratio is more than one. If it is less than one, it is low geared. If the ratio is exactly one, it is evenly geared. A highly geared company has the advantage of trading on equity. 3. Turnover Ratios Turnover ratios are used to indicate the efficiency with which assets and resources of the firm are being utilized. These ratios are known as turnover ratios because they indicate the speed with which assets are being converted or turned over into sales. These ratios, thus, express the relationship between sales and various assets. A higher turnover ratio generally indicates better use of capital resources which in turn has a favorable effect on the profitability of the firm. a. Inventory turnover Ratio: This is also called as Stock turnover Ratios. This ratio is calculated by dividing the cost of goods sold by average inventory.
Inventory Turnover Ratio = Cost of Goods Sold Average Stock Where, Cost of goods sold = Sales Gross Profit This ratio, thus, establishes the relationship between the cost of goods sold during a given period and the average amount of stock carried during the period. It indicates the efficiency of a firms inventory management. b. Debtors Turnover Ratio: It is also called as Receivables Turnover Ratio. This ratio indicates the relationship between net credit sales and trade debtors. It shows the rate at which cash is generated by the turnover of debtors.
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ANALYSIS OF FINANCIAL STATEMENT Debtors Turnover Ratio = Credit Sales Average Debtors The term debtors include trade debtors and bills receivables. Doubtful debts are not deducted from debtors. A higher DTR indicates that debts are being collected more quickly.
c. Fixed Assets Turnover Ratio: This ratio indicates the efficiency with which the firm is utilizing its investments in fixed assets such as plant and machinery, land and building etc. Fixed assets Turnover = Sales (or Cost of Sales) Net Fixed Assets The term net fixed assets means depreciated value of fixed assets. A high ratio indicates efficient utilization of fixed assets in generating sales and a low ratio may signify that the firm has an excessive investment in fixed assets.
d. Working Capital Turnover Ratio: This ratio indicates the efficiency or inefficiency in the utilization of working capital in making sales. Working capital turnover = Sales (or Cost of Sales) Net Working Capital The term net working capital means current assets minus current liabilities. A high working capital turnover ratio shows the efficient utilization of working capital in generating sales. A low ratio, on the other hand, may indicate excess of net working capital.
e. Capital Turnover Ratio: This ratio shows the relationship between cost of sales (or sales) and the total capital employed. Capital Turnover Ratio = Cost of Sales (or sales) Total Capital Employed
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ANALYSIS OF FINANCIAL STATEMENT Where, Total capital employed = Equity capital + Preference Capital + Reserves + Debentures + Long-term Loans Fictitious Assets Non operating Investments This ratio shows the efficiency with which capital employed in a business is used. A high capital turnover ratio indicates the possibility of greater profit and a low capital turnover ratio is a sign of insufficient sales and possibility of lower profits.
f. Creditors Turnover Ratio: This ratio is also known as Payables Turnover Ratio. It measures the relationship between credit purchases and average accounts payable. Creditors turnover ratio = Net Credit Purchases Average accounts payable Accounts payable include creditors and bills payable. 4. Profitability Ratios These ratios are calculated to measure the efficiency of a business. Profitability of a business may be measured in two ways:
(i) (ii)
Profitability in relation to sales Profitability in relation to investment
Profitability in relation to sales indicates the amount of profit per rupee of sales. Similarly, profitability in relation to investment indicates the amount of profit per rupee invested in assets. (i) Profitability based on sales: a. Gross Profit Ratio: This ratio expresses the relationship between gross profit and sales. Gross profit ratio = Gross Profit Net Sales It indicates the average margin on the goods sold. It shows whether the selling prices are adequate or not. It also indicates the extent to which selling prices may be reduced without resulting in losses. x 100
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ANALYSIS OF FINANCIAL STATEMENT b. Net Profit Ratio: There are two variations of this ratio: Net Operating Profit Ratio: This is the ratio of net operating profit to net sales. Net Operating Profit Ratio = Net operating profit Net Sales Net Profit Ratio: This is the ratio of net profit to net sales. Net Profit Ratio = Net profit Net sales c. Operating Ratio: This is also an important profitability ratio. This ratio explains the relationship between COGS and operating expenses on the one hand and net sales on the other. Operating Ratio = COGS + Operating Expenses Net Sales (ii) Profitability Ratios based on Investments a. Return on Investments (ROI): This is the most important test of profitability of a business. It is also called as return on capital employed (ROCE). It measures the overall profitability. It is ascertained by comparing profit earned and capital (or funds) employed to earn it. ROI = EBIT Capital Employed x 100 x 100 x 100 x 100
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ANALYSIS OF FINANCIAL STATEMENT b. Return on Equity (ROE): This ratio has two variations: Return on Proprietors Equity: This is also known as Return on shareholders funds. It shows the ratio of net profit to owners equity. Return on Proprietors Equity = Net Profit after taxes and interest Shareholders Funds x 100
Return on Equity Capital: This ratio establishes the relationship between the net profit available to equity shareholder and the amount of capital invested by them. Return on Equity Capital = Net Profit after taxes and interest and preference dividend Equity Shareholders funds x 100
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Statement of the Problem

The study is on understanding and analyzing the various transactions of the company which were carried to attain its main objectives, to evaluate the growth achieved in terms of finance and the problems involved in various decision making with regard to financing and direct operations which have got direct bearing with the financial resources of the company.
Objective of the study

The objective of the study is: To understand the concept of financial statements of the company. To find the earning capacity or profitability of the concern over the past three years. To know the overall performance of the company using comparative statements, common size, trend percentages and ratio analysis. To study the financial performance of the company through analysis of the secondary data using tables, graph, ratio and statistics. To know the policies, procedures and principles followed by the company. To offer suggestion for improving the efficiency and performance.
Scope of the study

This study is limited to Bamul Limited. The study is based on the information and financial data provided by the company. The company has provided the data derived from the audited financial reports. This study helps to know the performance level by using various financial statement analysis. The project report contains various ratios which help to know the performance level and efficiency of the company.
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Methodology of the study

The data has been collected from the interaction with the employees and staff of the company. Discussion with the executives. In order to draw meaningful inferences the data collected are analyzed with the help of percentages, financial ratios and statistics. Secondary data comprises of data collected from annual reports of the company, reports generated by the inventory holding, published information on inventory costs, company brochures, magazines.
Limitations of the study

Disaggregated financial information is not available as part of segmented information i.e., a breakup of various items of income and expenditure is not available. The data is not verified for its accuracy. The field of Ratio Analysis is very vast. The study was confined to one organization. The study was conducted and the analysis was done within the available data. Within the above limitation, efforts are made to reach, realistic conclusion.
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b. Analysis and Interpretation of the results

Comparative Balance Sheet Table 1: Comparative Balance sheet Statement as on 31st March
increase / decrease PARTICULARS SOURCES OF FUNDS PAID UP SHARE CAPITAL NOMINAL MEMBERSHIP SHARE SUSPENSE RESERVES & SURPLUS LOAN LIABILITY CURRENT LIABILITIES PROVISIONS PROFIT & LOSS A/C GRAND TOTAL APPLICATION OF FUNDS FIXED ASSETS WORK IN PROGRESS DEFERRED REVENUE EXPENDITURE INVESTMENTS SUB TOTAL (2) CURRENT ASSETS-LOANSADVANCES INVENTORY SUNDRY DEBTORS CASH & BANK BALANCES LOANS & ADVANCES SERVICE DEPOSITS OTHERS A+B+C+D+E+F: SUB TOTAL(4) GRAND TOTAL(2+4) 2007-08 & 2008-09
increase / decrease 2008-09 & 2009-10
1683000 15500 (1000) 13652575 (46852266) (95712535) (14221461) (141436187)
1.45 5.34 (0.10) 6.61 (14.24) (23.39) (21.19) (12.53)
10394000 8.85 15300 5.01 (120770) (12.60) 28509681 12.94 (50526300) (17.91) 135213482 43.12 (6447466) (12.19) 117037927 11.85 (20050747) (3.53) 1755339 168.55 (6341341) (29.39) 0 0.00 (24636749) (4.05)
(6666817) (1.16) (2062782) (66.45) 15896152 279.79 1056000 6.15 8222554 1.37
(14385344) (7394464) (127634519) (7349451) 727014 6378025 (149658741)
(12.71) (9.37) (43.53) (30.90) 3.99 505.50 (28.31)
(35407948) (35.84) 34291309 47.94 136169042 82.22 (3060356) (18.62) (61600) (0.32) 9744229 127.55 141674677 37.38 117037927 11.85
(141436187) (12.53)
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Analysis and Interpretation
The comparative balance sheet of the company reveals that during the years 2007-08 & 2008-09 and 2008-09 & 2009-10 there has been a decrease in the fixed assets to 1.16% and 3.53% respectively, the work-in-progress was decreased in the year 2007-08 & 2008-09 to 66.45% and increased in the year 2008-09 & 2009-10 to 168.55%. The deferred revenue expenditure was reduced to 29.39% in the year 2008-09 & 2009-10. The investements was 6.15% in the year 2007-08 & 2008-09 and there was no change in the investments in the year 2008-09 & 2009-10.
The overall current assets, loans and advances during the year 2007-08 & 2008-09 declined to 12.53% and increased to 11.85% in the year 2008-09 & 2009-10, this was due to the increase in debtors percentage, cash and bank balances and loans and advances declined which led to its increase.
The share capital of the company also increased from 1.45% to 8.85% in the years 2007-08 & 2008-09 and 2008-09 & 2009-10 respectively. The reserves and surplus of the company increased to 12.94% from 6.61% during 2007-08 & 2008-09 and 2008-09 & 2009-10. There was an increase in the current liabilities and provisions to 43.12% in the year 2008-09 & 2009-10.
The overall financial position of the company over the years as oer this financial statement analysis is not good, because the company is incurring losses as the profit and loss account shows the negative balance.
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ANALYSIS OF FINANCIAL STATEMENT Common Size Balance Sheet Table 2 : Common Size Balance Sheet as on 31st March
2009-10 PARTICULARS AMOUNT %
2008-09 AMOUNT %
SOURCES OF FUNDS PAID UP SHARE CAPITAL 127894000 11.58 NOMINAL MEMBERSHIP 320900 0.03 SHARE SUSPENSE 838030 0.08 RESERVES & SURPLUS 248831988 22.52 LOAN LIABILITY 231655460 20.97 CURRENT LIABILITIES PROVISIONS 448753260 40.62 PROFIT & LOSS A/C 46458997 4.21 GRAND TOTAL 1104752635 100.00 APPLICATION OF FUNDS FIXED ASSETS WORK IN PROGRESS DEFERRED REVENUE EXPENDITURE INVESTMENTS SUB TOTAL (2) CURRENT ASSETS-LOANSADVANCES INVENTORY SUNDRY DEBTORS CASH & BANK BALANCES LOANS & ADVANCES SERVICE DEPOSITS OTHERS A+B+C+D+E+F: SUB TOTAL(4) 547850047 2796794 15236340 18229152 584112332
117500000 11.90 305600 0.03 958800 0.10 220322307 22.31 282181760 28.57 313539778 31.74 52906464 5.36 987714708 100.00 57.50 0.11 2.18 1.85 61.63
49.59 567900794 0.25 1041455 1.38 21577681 1.65 18229152 52.87 608749082
63377705 105826408 301776956 13374223 18901028 17383982 520640303
5.74 98785653 9.58 71535099 27.32 165607914 1.21 16434579 1.71 18962628 1.57 7639753 47.13 378965626
10.00 7.24 16.77 1.66 1.92 0.77 38.37
GRAND TOTAL(2+4) 1104752635 100.00 987714708 100.00
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ANALYSIS OF FINANCIAL STATEMENT Analysis and Interpretation
A close look at the balance sheets shows that there is a slight increase in the paid up share capital from 11.58% to 11.90%. The reserves and surplus declined from 22.52% to 22.31%. the loan liability of the company increased from 20.97% to 28.57%. The current liabilities decreased to 31.74% from 40.62% this may be because of the repayment of the current liabilities. The profit and loss of the company increased to 5.36% to 4.21% during the years 2009-10 & 2008-09 respectively.
The company invested their funds in fixed assets and it showed an increase in the percentage from 57.50% to 49.59%. The deferred revenue expenditure also hiked from 1.38% to 2.18%. There was also a slight increase in the level of investments from 1.65% to 1.85% during the years 2009-10 & 2008-09 respectively.
The overall current assets loans and advances declined from 47.13% to 38.57% during the years 2009-10 & 2008-09 respectively. This was due to the decline in cash and bank balances of the company from 27.32% to 16.77%. The sundry debtors also decreased to 7.24% from 9.58%.
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ANALYSIS OF FINANCIAL STATEMENT Comparative Profit and Loss Account Table 3 : Comparative Profit and loss account for the year ended 31st March
increase / decrease 2007-08 & 2008-09
increase / decrease 2008-09&2009-10
SALES COGS G/P (1-2) OFFICE & ADMIN EXP. OPERATING INCOME (3-4) OTHER INCOME N/P (5+6)
572898306 12.67 610886428 15.17 (37988122) (7.69) (10599527) (2.11) (27388596) (363.15) 11535617 27.52 (15852978) (46.11)
569807126 480371578 89435548 83791930 (5643618) 3761894 9405512
11.19 10.36 19.61 17.06 (16.16) 7.04 50.77
The comparative Income statement given above reveals that there has been a decrease in the sales value from 12.67% to 11.19% during the years 2007-08 & 2008-09 and 2008-09 & 200910 respectively. The cost of goods sold (COGS) also declined to 10.36% from 15.17% during the years 2007-08 & 2008-09 and 2008-09 & 2009-10 respectively. The office and administration expenses increased over the years to 17.06%.
The Gross profit Ratio increased to 19.61% which is a good sign of profitability for the company. The operating income declined to 16.16%. The other income of the company reduced to 7.04% from 27.52%. The Net profit ratio increased to 50.77% from the loss of 46.11%.
It may be concluded that there is a sufficient progress in the company and the overall profitability of the company is good as both gross profit ratio and the net profit ratio is positive and increasing over the years.
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ANALYSIS OF FINANCIAL STATEMENT Common Size Profit and Loss account Table 4 : Common Size Profit and Loss Account for the year ended 31st March
2009-10 SALES COGS G/P (1-2) OFFICE & ADMIN EXP. OPERATING INCOME (3-4) OTHER INCOME N/P (5+6) 5663362902 5117796297 545566605 574853487 (29286881) 57219136 27932255
% OF SALES 100.00 90.37 9.63 10.15 (0.52) 1.01 0.49
2008-09 5093555776 4637424719 456131057 491061557 (34930500) 53457242 18526743
% OF SALES 100.00 91.04 8.96 9.64 (0.69) 1.05 0.36
The gross profit ratio has increased from 8.96% to 9.63% in the year 2008-09 and 2009-10 respectively. The cost of goods sold which was 90.37% in the year 2009-10 increased to 91.04% and this was the reason for the decline of gross profit ratio.
The office and administration expenses increased to 10.15% from 9.64% in the year 2009-10 & 2008-09 respectively. The operating income reduced. The other income also reduced from 1.05% to 1.01% during the years.
The Net profit ratio increased to 0.49% to 0.36% which is a good sign for the company. The profitabililty of the company has improved. This has been possible due to the increased sales over the years.
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Ratio Analysis for the year ended 31st March 2010

1. Current Ratio: = Current Assets / Current Liabilities
Table : 5 Table showing Current Ratio
Particulars Current Assets Current Liabilities Current Ratio (%)
2007-2008 528624367
2008-2009 378965626
2009-2010 520640303
409252313
313539778
448753260
1.29 Graph : 1 Graph showing Current Ratio
1.21
1.16
Current Ratio
1.3 1.2 1.1 1 2007-08 2008-09 2009-10
Analysis and Interpretation The ideal ratio is 2 : 1. The company has a low current ratio and it may not be sufficient to pay off the current liabilities. The liquidity position of the firm is not good and the firm shall not be able to pay its current liabilities in time.
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ANALYSIS OF FINANCIAL STATEMENT 2. Quick Ratio: = Quick Assets / Current Liabilities
Table 6 : Table showing Quick Ratio
Particulars Quick Assets Current Liabilities Current Ratio (%)
2007-2008 415453370
2008-2009 280179973
2009-2010 457262598
409252313
313539778
448753260
1.01 Graph 2 : Graph showing Quick Ratio
0.89
1.02
1.05 1 0.95 0.9 0.85 0.8 2007-08 2008-09 2009-10 Quick Ratio
Analysis and Interpretation The ideal ratio is 1 : 1. The Quick Assets considered here are Cash and Bank balances, Sundry Debtors, loans & advances, Short term Service Deposits and others. This ratio is an indication of the liquidity position of the firm and has the ability to meet its current liabilities in time. A low ratio does not necessarily mean a bad liquidity position as inventories are not absolutely non-liquid. It is used as a complementary ratio to the current ratio.
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3. Absolute Liquid Ratio:

= (Cash
in hand and at bank + Short-term Marketable Securities) / Current Liabilities
Table 7 : Table showing Absolute Liquid Ratio Particulars Super Quick Assets Current Liabilities Current Ratio (%) 0.72 0.53 0.67 2007-2008 293242434 2008-2009 165607914 2009-2010 301776956
409252313
313539778
448753260
Graph 3 : Graph showing Absolute Liquidity Ratio
0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2007-08 2008-09 2009-10 ALR
Analysis and Interpretation The acceptable norm for this ratio is 50% or 0.5 : 1. The ratio is quite satisfactory because it is much higher than the rule of thumb, i.e., 0.5.
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ANALYSIS OF FINANCIAL STATEMENT 4. Debt Equity Ratio: = Outsiders funds / Share holders funds
Table 8 : Table showing Debt Equity Ratio
Particulars Outsiders funds Shareholders funds
2007-2008 738286339
2008-2009 595721538
2009-2010 680408720
389614656
390728771
423184985
D/E Ratio
1.89
1.52
1.61
Graph 4 : Graph showing Debt Equity Ratio

2 1.5 1 0.5 0 2007-08 2008-09 2009-10 D/E Ratio
Analysis and Interpretation The ideal ratio of 1 : 1 is usually considered to be a satisfactory ratio. The interpretation of this ratio depends primarily upon the financial policy of the firm and upon the firms nature of business. As the ratio is slightly higher than the ideal ratio, it indicates that the claims of outsiders are greater than those of owners and may not be considered by the creditors because it gives a lesser margin of safety at the time of liquidation of the firm.
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ANALYSIS OF FINANCIAL STATEMENT 5. Gross Profit Ratio: = (Gross Profit / Net Sales) x 100
Table 9 : Table showing Gross Profit Ratio
Particulars Gross Profit
2007-2008 494119180
2008-2009 456131057
2009-2010 545566605
Net Sales
4520657470 5093555776
5663362902
G/P Ratio
10.93
8.96
9.63
Graph 5 : Graph showing Gross profit Ratio

12 10 8 6 4 2 0 2007-08 2008-09 2009-10 G/P Ratio
Analysis and Interpretation This ratio indicates the extent to which selling prices of goods per unit may decline without resulting in losses on operations of a firm. There is no standard norm for gross
profit ratio and it may vary from business to business but the gross profit should be adequate to cover the operating expenses and to provide for fixed charges and accumulation of reserves.
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6. Net Profit Ratio: = (Net Profit / Net Sales) x 100
Table 10 : Table showing Net Profit Ratio
Particulars Net Profit
2007-2008 34379721
2008-2009 18526743
2009-2010 27932255
Net Sales
4520657470 5093555776
5663362902
N/P Ratio
0.76
0.36
0.49
Graph 6 : Graph showing Net Profit Ratio
0.8 0.6 0.4 0.2 0 2007-08 2008-09 2009-10 N/P Ratio
Analysis and Interpretation The Net profit ratio has declined from 0.76 to 0.36 in the year 2007-08 and 2008-09 respectively. But during the year the net profit increased from 0.36 to 0.49 in the year 2009-10. This is because the sales has increased from Rs. 5093555776 to Rs. 5663362902. This ratio is very useful as it indicates the firms capacity to face adverse economic conditions such as price competition, low demand, etc. obviously, higher the ratio, the better is the ratio, the better is the profitability. BNMIT
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7. Proprietory Ratio: = (Share holders funds / Total Assets) * 100
Table 11 : Table showing proprietory ratio
Particulars Share holders funds Total Assets Proprietory Ratio
2007-2008 389614656
2008-2009 390728771
2009-2010 423184985
1129150895
987714708
1104752635
34.51
39.56
38.31
Graph 7 : Graph showing proprietory ratio
40 38 36 34 32 30 2007-08 2008-09 2009-10 Proprietory Ratio
Analysis and Interpretation As equity ratio represents the relationship of owners funds to total assets, higher the ratio or the share of the share holders in the total capital of the company, better is the longterm solvency position of the company. This ratio indicates the extent to which the assets of the company can be lost without affecting the interest of creditors of the company.
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8. Fixed Assets to Total Long term funds: = (Fixed assets / Total long-term funds) * 100
Table 12 : Table showing Fixed Assets to Long term funds ratio
Particulars Fixed Assets Long-term funds
2007-2008 574567611
2008-2009 567900794
2009-2010 547850047
718648682
672910531
654840445
Ratio
79.95
84.39
83.66
Graph 8 : Graph showing the Fixed Assets to Long term funds ratio
85 84 83 82 81 80 79 78 77 2007-08 2008-09 2009-10
Fixed Assets Ratio
Analysis and Interpretation This ratio indicates the extent to which the total of fixed assets is financed by the longterm funds of the firm. Generally, the total of the fixed assets should be equal to the total of the long-term funds or, say, the ratio should be 100%. In this case, the total long-term funds are more than total fixed assets; it means that a part of the working capital requirements is met out of the long-term funds of the firm.
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9. Inventory turnover Ratio: = Cost of Goods Sold / Average inventory
Table 13 : Table showing Inventory turnover ratio
Particulars Cost of Goods Sold Average Inventory Inventory Turnover Ratio
2007-2008 2008-2009 4026538290 4637424719
2009-2010 5117796297
66585672
81876666
54395886
60.47
56.64
94.08
Graph 9 : Graph showing Inventory Turnover ratio
100 80 60 40 20 0 2007-08 2008-09 2009-10 ITR
Analysis and Interpretation This ratio is very high. Generally speaking, a high stock turnover ratio is considered better, as it indicates that more sales are being produced by each rupee of investment in stock, but a higher stock turnover ratio may not always be an indicator of favorable results.
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10. Debtors Collection Period: = (Debtors / Sales) x No. of working days
Table 14 : Table showing Debtors collection period Particulars Sundry Debtors Sales 2007-2008 78929564 2008-2009 71535099 2009-2010 105826408
4520657470 5093555776
5663362902
Collection Period
6.73
5.06
6.29
Graph 10 : Graph showing the debtors collection period
8 6 4 2 0 2007-08 2008-09 2009-10 collection period
Analysis and Interpretation The debtors collection period ratio represents the average number of days for which a firm has to wait before its receivables are converted into cash. It measures the quality of debtors. Generally, the shorter the average the collection period the better is the quality of debtors as a short collection period implies quick payment by debtors. The number of working days is usually considered as 360 days in a year.
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c. FINDINGS OF THE STUDY

The study helped to find out various ratios of the company. The analysis of profits and losses from comparative statements which includes both balance sheet and profit and loss account. Common Size statements help to know the analytical percentages of the firm. The Current ratio of the firm for the years 2006-07 to 2009-10 is less than the ideal ratio of 2 : 1, as this ratio is very less, if indicates that the firm will find it difficult to pay its bills and other current liabilities. The Quick ratio of the company is less in the year 2008-09, that is, 0.89 which is less than the ideal ratio of 1 : 1 and is higher than the ideal ratio in other years. This indicates that the business may find itself in serious financial difficulties, as this ratio is of great importance for banks and other financial institutions. The Absolute Liquid Ratio is high in all the years. The acceptable norm for this ratio is 50% or 0.5 : 1. The ratio is quite satisfactory because it is much higher than the rule of thumb, i.e., 0.5. As the absolute liquidity ratio of the firm is higher, the cash position of the firm is higher. The Debt Equity ratio is higher than the ideal ratio of 1 : 1 in all the years. This ratio indicates that the claims of the creditors are greater than those of owners. From the point of view of the company, the lower this ratio, the less the company has to worry in meeting its fixed obligations. This ratio also indicates the extent to which a company has to depend upon outsiders for its financial requirements. As equity ratio represents the relationship of owners funds to total assets, the proprietary ratio of the firm is 38.31%. The Fixed Assets to long term funds ratio indicates the extent to which the total of fixed assets is financed by the long-term funds of the firm, which is 83.66%. The inventory turnover ratio is very high, which needs to be brought down in order to avoid wastage. The gross profit margin indicates the average margin on the goods sold. The high ratio indicates the relatively lower cost and is a good sign for the company. BNMIT
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ANALYSIS OF FINANCIAL STATEMENT The net profit ratio margin differs from company to company. It indicates the efficiency with which a business is managed. A firm with high ratio is advantageous position to survive in the face of rising cost of production and falling selling prices. Thus, the overall business of the company is profitable and efficient.
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d. SUGGESTIONS

The company can improve its profitability by increasing its sales value through the production level. The company can implement various techniques which increases the overall efficiency of the firm. The Inventory turnover can be reduced by adopting various effective and efficient techniques that can control inventory levels. The Fixed assets to Long term funds ratio should be 100%. The claims of outsiders are higher and this has to be reduced. The liquidity position of the firm has to improve. This can be done by investing more in current assets and this helps to repay the current liabilities on a timely basis.
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CONCLUSION
This study was done to analyze various ratios of the company, to know the liquidity position of the company through current ratio, quick ratio and cash ratio. The trend percentage analysis also helped to know the movement of various components of the balance sheet and profit and loss account of the firm.
It helped to understand the profitability of the company through its statements and the annual reports that are furnished by the company. It also helped to analyze the performance and overall efficiency of the firm through which certain suggestions can be given to the company to improve its profitability level. Thus, this project study helped to undeerstand and analyze the companys profitability, sales volume, ratios, financial statements of the firm.
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ANALYSIS OF FINANCIAL STATEMENT

ANALYSIS OF FINANCIAL STATEMENT

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ANALYSIS OF FINANCIAL STATEMENT

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MARKETING & SALES

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5. ANALYSIS OF FINANCIAL STATEMENTS

63377705 105826408 301776956 13374223 18901028 17383982 520640303 1104752635

98785653 71535099 165607914 16434579 18962628 7639753 378965626 987714708

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ANALYSIS OF FINANCIAL STATEMENT

Nature of Financial Statements

Meaning of Analysis and Interpretation

Types of Financial Statement Analysis

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Procedure for financial statements analysis

Parties involved in Financial Statement Analysis

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ANALYSIS OF FINANCIAL STATEMENT

Significance and purposes of financial statement analysis

Limitations of Financial Statements:

Principal tools of analysis

Comparative balance sheet Comparative profit and loss account

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ANALYSIS OF FINANCIAL STATEMENT

ANALYSIS OF FINANCIAL STATEMENT

Meaning of Ratio Analysis

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Uses and significance of ratio analysis

Limitations of Ratio Analysis

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