Assets and Liabilities Report

CONTENTS
CHAPTER PARTICULARS PAGE.NO.
CHAPTER – I INTRODUCTION 01 - 08
 Need for the Study
 Scope of the Study
 Objectives of the Study
 Methodology of the Study
 Limitations of the Study
CHAPTER – II INDUSTRY PROFILE 09 - 11
CHAPTER – III COMPANY PROFILE 12 - 38
CHAPTER – IV THEORITICAL FRAME WORK 39 - 49
CHAPTER – V DATA ANALYSIS & INTERPRETATION 50 - 69
CHAPTER – VI FINDINGS, SUGGESTIONS& CONCLUSION 70 - 72
ANNEXURE 73 - 75
QUESTIONNAIRE
BIBLIOGRAPHY
CHAPTER 1
INTRODUCTION
INTRODUCTION
Assets liability management can be termed as risk management technique design to

earn educate return while maintain they comfortable assets on beyond liabilities. Its take
into consideration interest rates earning power and degree of willingness will take on debt
and hence is also known as surplus management.
The Asset and liability management includes all deposits and advances, maturity of
deposits and incremental assets and liabilities, etc. It is a decision making responsible for
balance sheet planning from risk and return standpoint including the strategic management
of liquidity, interest rate risks. The business and risk management strategy of the bank
should ensure that the bank operates within the limited parameters set by the Board.
Besides monitoring the risk levels of the bank, there should proper review the results and
progress in realization of the decisions made. In future business strategy decisions should
be based on the banks current rate of interest. In respect of the funding policy, for instance,
its responsibility would be to decide on source and liabilitiesmix or the assets sale. There
should be efficient management of short term deposits, medium term deposits and long
term deposits, loans and advances, borrowings and investments etc.
1
IMPORTANCE OF ALM:
After the period of liberalization there was a tremendous growth in the industrial
sector it term facilitated the development of fund accuraising the demand for funds also
led to positive increase in the features of assets and liabilities the major reasons behind
emergence
2
SCOPE OF THE STUDY:
ALM units create a properly aligned risk and return management process. The
right mix between skills and risk appetite must be identified, expected outcomes of
activities known and appropriate metrics established. The approach adopted needs to be
aligned to the realities of the market the bank.
A bank needs to realize that the right level of asset and liability need to be
committed to support the function.
Various techniques are used to examine the mismatch in a bank’s balance sheet
and it can be a difficult process if not supported with adequate systems. Depending on
systems and analytical support the ALM process will undertake a number of analysis
designed to identify; static and dynamic mismatch.
3
OBJECTIVES OF THE STUDY
 To find out the ability of the firm to meet its current requirements & Changes of
ASSET AND LIABILITIES requirements.
 To study the inventory and cash performance of the DODLA DAIRY PVT LTD
 To find the statement of ASSET AND LIABILITIES increase/decrease in every
financial year.
 To know about the company for improving it’s financial position of the DODLA
DAIRY PVT LTD
 To find out the networking capital for every financial year.
4
RESEARCH METHODOLOGY
The Present projects work covers a period of five years from 2012-2017. The project
work is based on the data collected from primary and secondary sources. There are two
type techniques
1. Primary data
2. Secondary data
PRIMARY DATA
DATA
SECONDARY DATA
PRIMARY DATA
The primary data are collected by personal interviews with dealers, supervisors, managers
and holding discussions with all parties concerned.
SECONDARY DATA
The secondary data collected from published and un published manuals records
Brochures files etc., of the organization and books, journals, reports etc.
RESEARCH DESIGN
In view of the objectives of the study, an expletory research is one, which largely
interprets the already available information, and it lays particular emphasis on analysis and
interpretations of the existing and available information. It makes use of secondary data.
5
LIMITATIONS OF THE STUDY
 The major limitation of the project study was time four weeks it had to be
completed in a very short period of time, which was not sufficient to complete the
study.
 During the limited period of study they may not be detailed full-fledged utilization
of resort in all in respects. Some information is not available for study due to
confidential matter.
 The duration of one month is allotted for this work is insufficient to collect the data
comprehensively for this study.
Due to the limited time on detailed analysis could not be made in DODLA DAIRY PVT
LTD
6
CHAPTER 2
INDUSTRY PROFILE
&
COMPANY PROFILE
INDUSTRY PROFILE
The domestication of cattle occurred between 6000 and 10,000 years ago. Not
much known about the history of this period, but men probably hunted cattle as wild
animals prior to the time that they were domesticated. Later the cow was made as sacred
animal and is still so considered by a part of the population of India.
Various stages of dairy industry origin as follows:-
THE DAIRY INDUSTRY PRIOR TO 1850:
For over 225 years following the first settlements in America very little changes
look place in the methods of producing milk or in the manufacture of dairy products.
Feed supplies has to be shipped from the country areas and ordinance regarding
dairy barns became more and more strict gradually farmers within easy driveling distance
began delivering milk over regular routes in the cities. The development was not
spectacular, but the stage was set for the many changes, which were to take place in years
to follow.
THE DAIRY INDUSTRY AFTER 1850:
The modern dairy emerged in the middle of the 19 the century. Among the many
factors, which have played important roles in the evaluation of the modern dairy industry,
the following may be mentioned.
1. The factory system.
2. Improved machinery.
3. Transportation.
4. Economic factors.
5. Research and scientific investigation.
6. Improved live stock.

India has the potential to become a leading exporter of milk and milk products.
Due to low labor cost, the cost of milk production is significantly low hereto boosting
exports; the dairy industry needs to focus on quality and productivity. Significant
investment has to be made in milk procurement equipment and chilling and refrigeration
facilities.
Dairy industry contributes significantly to the economy as well as to the rural poor
by providing an opportunity to uplift them by generating additional income through it.
Dairying has been practiced as rural cottage industry since ages. India accounts one-sixth
of cattle and half off buffalo population of the world. Among 70 million rural households
in India in 2001, those operating up to two hectares form 42 percent of the households and
37 percent are land less.
India`s dairying industry is today in a state of dynamic transition with rapid

development in milk production and marketing by virtue of the efforts made by the
government of India under various programmers for benefiting the small rural milk
producers and the underprivileged urban consumers. The direct contribution of dairying to
the rural sector through additional income and employment to the producer is well
recognized.
IMPORTANCE OF DAIRY INDUSTRIES:
Data collected by bureau of human nutrition and home economics for the year
1944 and 1945 showed that dairy products contained 75% of the calcium and 45%of
riboflavin in the total food supply as well as 24% of the total protein,17% of the vitamins
and 17% calories.
In 1946 the first company was established in kaiva District co-operative milk
produces known as “AMUL” throughout the Nation wide and their different companies
were developed throughout country form Govt. side and also private side. In Andhra
Pradesh the leading companies are A.P. dairy development under the brand names
DODLA DAIRY PVT LTD
The milk and dairy products rank as the largest source of income to the farmer of
United States. For the country over 20 percent of the total agricultural income is from milk
or cream sold, the sale of cream and butter by farmers in 1948 totaled more than
$4400,000,000.
In addition to the 24,000 people of the dairy firms many others persons and
families must be employed in moving and processing the milk and milk products before
there each the consumers table. The exact number of people engaged in these fields in
unknown.
DAIRY PRODUCTS:
A dairy is a place for handling of milk and milk products. Technology refers to the
application of scientific knowledge for practical purposes. Dairy technology has been
defined as that a branch of dairy science, which deals with the processing of milk and
manufacture of milk products.
In India dairying has been practiced as a rural cottage industry from remote places
in the past. Due to scientific knowledge in processing and pasteurization. Dairy is
developed as a separate industry. The main reason for developing of this industry is above
to increase in population of urban areas and more consumption of milk in the areas of soft
drinks.
In the earlier years each house hold maintains his/her own cattle or secures milk
form its neighbor’s the urban population increases fewer households could keep a cattle
for private use. But the high cost of milk production, problems of sanitation etc., restricted
the practice and gradually the family cattle in the city was eliminated and city cattle were
all sent back to the rural areas.
Gradually formers in the cities began delivering milk over regular routes within
easy driving distances. This was the beginning of the fluid milk-sheds, which surrounded
the large cities.
With the modern knowledge of protection of milk during transportation and

scientific knowledge in processing for pasteurization improves rapidly dairy as a special
industry.
A dairy is a place for handling of milk and milk products. Technology refers to the
application of scientific knowledge for practical purposes. Dairy technology has been
defined as that a branch of dairy science, which deals with the processing of milk and
manufacture of milk products.
In India dairying has been practiced as a rural cottage industry from remote places
in the past. Due to scientific knowledge in processing and pasteurization. Dairy is
developed as a separate industry. The main reason for developing of this industry is above
to increase in population of urban areas and more consumption of milk in the areas of soft
drinks.
In the earlier years each house hold maintains his/her own cattle or secures milk
form its neighbor’s the urban population increases fewer households could keep a cattle
for private use. But the high cost of milk production, problems of sanitation etc., restricted
the practice and gradually the family cattle in the city was eliminated and city cattle were
all sent back to the rural areas.
Gradually formers in the cities began delivering milk over regular routes within
easy driving distances. This was the beginning of the fluid milk-sheds, which surrounded
the large cities.
With the modern knowledge of protection of milk during transportation and

scientific knowledge in processing for pasteurization improves rapidly dairy as a special
industry.
The first and for most requirement of modern marketing is to understand the
customer needs, and create need develop strategies to bring the customers right elements
of the i.e., product offering, positioning distribution channels etc. to satisfy the needs.
Market entry strategies for developing market, like India, can`t be developed by
middle managers whose only experience spans distribution and channels of management.
Though India has over vast geographical area yet it is not successful especially for
perishable goods such as vegetables, food items, milky fruits etc., milk is consumed as a
product of food from the past.
But it is not commercialized still at the end of the 19th century. In India milk is
began in the early of the 20th century. But the market of the milk industry is developed
after independence due to scientific knowledge in processing, storage, and transportation
facilities.
CONSTITUTENTS OF MILK:
Milk as an article of food for mankind antidotes the earliest record history. Milk
ranges in color forma bluish-white to an almost golden-yellow depending up on the breed
of cattle and the amount of fat solids present. It is important that everyone should become
familiar with the chief components of milk.
CONSTITUENTS PERCENTAGES
Water 87.00
Fat 4.00
Protein 3.50
Carbohydrates 4.80
Mineral salts 0.70
Total 100.0
MANUFACTURING PROCESS OF MILK
RECEIVING MILK
(GRADING, SAMPLING, WEIGHING, TESTING)
PRE-HEATING (350- 400C)
FILTRATION/CLARIFICATION
COOLING AND STRONG (50C OR BELOW)
STANDARDIZATION
PASTEURIZATION (63 C/30 MTS (OR) C/15 Sec)
HOMOGENIZATION (2500 PSI)

MARKETING OF MILK
A DODLA DAIRY PVT LTD milk product (P) Ltd has gone one level
channel of distribution of DODLA DAIRY PVT LTD marketing.
Manufacturer Milk selling agent Customers
It has an extensive selling agent in Nellore, Gudur, Tirupati, Guntur, Ongole,

Bangalore, Chennai and Hyderabad.
PROCUREMENT OF MILK:
The main content required of dairy is milk. It procures milk producer (farmer)
covering over 200 villages in Guntur and Prakasam district. In each village one agent will
be there collects milk of that village from milk producers. They collect both in the
morning and evening. Company has its own vehicles to get the collected milk is each
village.
DEMAND AND SUPPLY:
The minimum quality of milk per capital consumption recommended Indian

Council of Medical Research is 210 grams per person per day against actual per capital
consumption of 178 grams. Thus there is deficit, of 96 Lakes tones of milk per
annum.Which indicates a great demand for milk in the domestic market(source: Dairy
India 1992).In addition by products like ghee, cream, milk powder, butter and cheese will
be marketed.
MILK INDUSTRY IN INDIA:
Today India is the largest milk producing country in the world. The milk producing
states in India are; Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh,
Karnataka and Tamilnadu. A cattle farming is one of the important aspects of the overall
development process in India.
It is said that it is one of the bounded sectors of agriculture. It has been the
important of the National Economic Development Process all these years. Nearly 5% of
the Indian population of the country directly or indirectly depends on milk production and
it`s sales for their livelihood.
Everyone without any age limit consumer’s milk. Today because of the modern
technology the cattle breeding has been revolutionized. Outdated methods of extraction of
milk from the cattle of the discarded .New and innovative methods are being widely
adopted.
India today is proud to say that it is the largest producer of the milk and its
products. Many dairy firms have been established in the country at different areas as per
the requirements of the people i.e. the consumer, both by the public sector and private
sector.
Milk is one of the heavenly foods i.e. prescribed by a doctor, a physician.

Everyone without sex relation, are limit drinks milk directly or indirectly. Milk is a
mixture of protein, vitamins, carbohydrates and fat contains which is helpful for the
growth of the humans. Dairy farming aim is to supply better quality of milk to the
consumers.
In 1946 the first company was established in kaiva District co-operative milk
produces known as “AMUL” throughout the Nation wide and their different companies
were developed throughout country form Govt. side and also private side. In Andhra
Pradesh the leading companies are A.P.dairy development under the brand names DODLA
DAIRY PVT LTD, TIRUMALA, TIRUMALA, Ravilla, Heritage, Jercy, Creamlines, and
Mother Dairy etc.
MILK PRODUCTION IN INDIA
YEAR Qty (in Million tons)
1962-67 20.38
1967-72 19.37
1972-77 38.35
1977-82 46.30
1982-87 42.40
1987-92 50.00
1992-97 60.00
1997-02 79.00
2002-07 99.00
2007-14 121.00
2014-15 165.00
2015-16 230.01
2016-17 260.10
In India milk production has been increasing gradually for several years. During
till 1971 the increasing ration was very small after that milk production has increased
rapidly because of green revolution and some other pilot programmers.
MILK POTENTIAL:-
Milk is the only natural product i.e. daily used by the people at regular intervals for
different purposes. The nutritional potential is ideal in quality and balanced to satisfied
human-acid requirements. The contents of minerals and vitamins are unique both in
proportion and in quality nutrients that are essential for man`s growth and developments.
Milk has a very complex composition. It constituents are disposed in aqueous

solutions, such as chlorides; sodium and potassium are present in molecular dispersion,
phosphate in colloidal dispersion, and the fat in emulsion.
The average per capital consumption of milk in India is only 212 gram per day as
against the world average of 303 grams. Malnutrition can be easily wiped out in our
country by developing the dairy industry.
EXPORT POTENTIAL:
India has the potential to become one of the leading players in milk and milk
products exports. The country is located admit major milk-deficit countries in Asia and
Africa. Major importers of milk and milk products are Bangladesh, China, Hongkong,
Singapore, Thailand, Malaysia, the Philippines, Japan, the UAE and Oman-all located
close to India. Milk production is scale -insensitive and labor-intensive. Due to low labour
cost of milk production is significantly low in India.
STRENGTHS:
Demand is absolutely optimistic. Margins are quite reasonable even on packed

liquid milk. Tremendous flexibility of product mix, abundance of raw material, and locally
available professionally trained, technical human resource pool are the other plus points.
Presently, more than 80 percent of milk produced is flowing into unorganized sector,
which requires proper channelization.
WEAKNESSES:
Perishability: Pasteurization has overcome this problem partially.UHT gives milk

long life. Surely, many new processes will follow to improve milk quality and extend its
shelf life.
Lack of concept over yield:
Theoretically, there is little control over milk yield. However, increased awareness
of developments like embryo transplant, artificial inseminations, and properly managed
animal husbandry practices, coupled, with higher income to rural milk producers, should
automatically lead to improvement in milk yields.
Logistics of procurement:
Bad roads and inadequate transportation facility make milk procurement

problematic. But with the overall economic improvement in India; these problems would
also get solved.
Problematic Distribution:
If ice-creams can be sold virtually at every nook and corner, why can`t we sell
other dairy products too? It is only a matter of time before we see the emergence of a cold
chain linking the producer to the refrigerator at the consumer`s home.
Competition:
With so many people entering this industry, competition has to be faced as a

ground reality. The market is large enough for many to serve out their niche.
OPPORTUNITIES:
Value addition:
There is a large scope for innovations in product development, packaging, and

presentation steps should be taken to introduce value-added products like ice-creams,
pannier, lassie, khoa, basenji, doodhpeda, flavored milk, dairy sweets etc. This will lead to
a greater presence and flexibility in the market place along with opportunities in the field
of brand building.
Cultured products like yoghurt and cheese lend further strength both in terms of
utilization of resources and presence in the market place. Other products are infant foods,
geriatric foods, as nutritionals.
Export potential:
Efforts to exploit potential are already on Amul is exporting to Bangladesh,

Srilanka, Nigeria, and the Middle East. Following the new GATT treaty, opportunities will
increase tremendously for the export of agric-products in general and dairy products in
particular.
THREATS:
Today, milk vendors occupy the pride of place in the industry. Organized
dissemination of information about the harm that they are doing to producers and
consumers should see a steady decline in their importance.
Strengths and opportunities far outweigh weaknesses and threats. Strengths and
opportunities are fundamental, while weaknesses and threats are transitory. Any
investment idea can do well only when you have entrepreneurship, innovative approach,
and values (of quality ethics).The Indian dairy industry, following it`s deli censing, is
attracting a large number of entrepreneurs.
Their success in dairying depends on factors such as an efficient yet economical

procurement network, hygienic and cost-effective processing, and innovations in the
market place.
PROCESSING OF MILK:-
Pasteurization:
The term pasteurization, applied to market milk today, refers to the process of
heating every practical of milk to at least 630 C or 1450 F for 30 minutes .After
pasteurization, the milk is immediately cooled to 50 C(41 F) or below .
As it is difficult to exercise strict supervision over milk supplies, it becomes

necessary to pasteurize milk so as to make it safe for human consumption. Milk is
pasteurized to render it safe for human consumption by destruction of sent percent
pathogenic microorganisms and to improve the keeping quality of milk by destruction of
almost all-spoiling organisms.
Standardization:
Standardization of milk refers to adjustment of the fat and /or solids not fat
percentage of milk to desired value so as to conform to the legal or other requirements.
Milk is standardized by the addition of milk or cream with a higher or lower fat percentage
than of milk to be standardized. Sometimes the additions of skimmed milk will do.
Downward standardization for fat is practiced is many countries. The surplus is
transformed into butter or ghee.
The prevention of Food Adulteration Act defines standardized milk as cow and
buffalo milk in which the milk fat content is adjusted to 4.5% or more with the SNF.
Atleast 8.5% high milk fat content may be adjusted downward by removing milk or fat or
by adding skimmed and/or reconstituted milk. In the case of low milk fat content, fat may
need to be added to assure the legal minimum.
Standardized milk may be marketed as such or used for making certain

products. Standardization ensures milk of practically uniform and constant composition
and nutritive value to the consumer. The surplus fat can be converted into butter and ghee.
Consequently; milk can be supplied at low cost. Standardized milk is easier and digests.
RECOMBINATION:
This refers to the product obtained when butter, oils, skimmed milk powder,
and water are combined in the correct preposition to yield fluid milk.
The Prevention of Food Adulteration Act Rules 1976 defines recombined

product as the milk product resulting from the combining of milk fat and milk solids not
fat in one or more of the various forms with or without water.
Under the prevention of Food Adulteration Act Rules 1976, recombined

milk throughout the century should contain a minimum of 30% fat and 8.5% solids not fat.
The Food and Agriculture Organization of the United Nations extensively produced
recombined milk under the operation flood scheme in Mumbai, Kolkata, Delhi, and
Chennai during 1970-74, from butter oil and skimmed milk powder donated under the
World Food Programmed Project.
The technique of recombination involves dispersion of milk powder in

water at about 45 C, addition of milk fat to make a mixture, filtration and clarification of
the mixture, followed by homogenization and pasteurization at 75 C for 15 Seconds.
The physical, chemical, and functional properties of raw material and used in
such preparation determine the flavor, acceptability, and shelf life of the recombined
product. The use of low-heat, on-fat milk powder with quick wetting ability, increased
solubility, and improved dispensability results into acceptable milk. The introduction of
butter oil without appropriate technology of its has caused problem in acceptance of
recombined milk.
Toning:
Toned milk refers to milk obtained on addition of water and skimmed milk
powder to while milk .Under the Prevention of Food Adulteration Rules 1976, toned milk
should contain a minimum of 3% fat 8.5% solids not fat throughout the country.
Toned milk is also called single toned milk and is prepared by toning milk with
fresh separated milk reconstituted from spray-dried skimmed milk powder. Sometimes,
milk is double-toned in order to provide cheap milk (with fat content only 1.5%) to
weaken
COMPANY PROFILE
DODLA DAIRY LIMITED found by a well-known family from Nellore district of
Andhra Pradesh in the year 1995. It Procures, Process and sell milk and milk products
across India. It has started its operations in a tiny way with an initial capacity of 60,000
liters per day.
The company offers a wide range of Milk Products, Comprising Fresh Milk,
Butter, Ghee, Pannier, Curd, Flavored Milk, Milk sweets, and Skim Milk Powder. All the
products are conveniently packed in different pack sizes and types to suit various needs of
consumers.
The company has grown multifold rapidly during the past one decade and became
as the popular dairy companies of India. The consistent growth of the organization reflects
the consumer confidence and strength the company. The company has gained the
competitive advantage over the other players by delivering the highest Quality dairy
products to the consumers through upgrading its systems and by utilizing the latest
technology.
Dodla Dairy is an ISO 22000 Certified Organization. Now the company is having
7 state of art technology 'processing plants' and 50+ 'chilling centers' and 15+ 'Sales &
Marketing Branches' across India.
Products of DODLA
 Milk
 Curd
 Ghee
 Doodhpeda
 Flavored milk
 Paneer
 Cooking Butter
Milk
DODLA DAIRY has over one decade expertise in collection and processing of the
milk. The fresh milk from the Buffalos and cows are brought to the nearest chilling centers
and then to the processing Plants with in a stipulated time without breaking the cold chain.
After that, this milk will undergo processing which involves pasteurization and separation
of Fat etc. This will ensure that the milk is free from bacteria and safe for human
consumption. .
The DODLA MILK is packed in high quality food grade pouch, which is user
friendly to the consumers.
The product goes through stringent quality checks and assures the highest
standards. Every time you buy a Pocket of milk, you are assured of
fresh flavors, taste and nutritional value.
FARM FRESH MILK- VARIETIES
FULL CREAM MILK TONED MILK
DOUBLE TONED MILK STANDARDISED MILK

CURD
Curd is a natural Dairy product made from Milk. It has all the goodness of natural
Calcium and improves the digestion. The Dodla curd has been prepared with special
Quality of milk from the south Indian country buffalos and cows. The product is made by
using high quality Culture.
DODLA curd is available both in sachets and cups with a good taste, thickness and
deliciousness.
DODLA curd bears the uncompromised dairy expertise. The best cold chain
facilities will assure retention of freshness of the product. Everybody in the family should
have at least one pack / cup of DODLA curd everyday .The DODLA Curd is packed in
200 Grams Food grade poly Film sachets.
The Cup curd is being Packed in disposable Food Graded Cups and available in
100 and 200 grams quantity. DODLA Curd is available at all our dealers and food world /
Reliance outlets across south India.
BENEFITS OF CURD
 Low fat or skim curd is good for people who are suffering from higher levels of
cholesterol.
 Even those who are lactose-intolerant can consume curd, as bacteria present in it break
down lactose before it enters your body.
 The bacteria in curd can help digest food and thus, alleviate the problem of stomach
infection
 Studies have suggested that consumption of curd might help reduce the risk of high
blood Pressure.
 Being rich in calcium, curd is good for the health of bones as well as the teeth. Eating
curd on a regular basis can help you absorb the nutrients in other foods as well.
Butter Milk
During hot sunny days, due to high temperature people will get exhausted very
fast. To revive our vitality and energy we require natural drink. Dodla Butter Milk can meet
your requirement. It has been made after conducting thorough study about our body
requirement during the summer. The product is a preparation, which includes Curd, Water,
Salt, Ginger, Green Chilies, Coriander and Curry leaves.
The product is packed in a 'Food Grade Pouch Film' which available in 200 ML Pack.
Beware of artificial/Duplicate
Nowadays, most of the commercial Buttermilk is made by adding a lactic acid

bacteria culture to pasteurized sweet whole milk or, more commonly skim milk or non-fat
milk, and it may or may not have added butter flecks. After the addition of the culture, the
milk is left to ferment for 12 to 14 hours at a low temperature (optimum 69 degrees F.). It
is usually labeled cultured buttermilk and may be salted or unsalted. Most commercial
varieties are salted.
Buttermilk is lower in fat than regular milk, because the fat has been removed to
make butter it is also high in potassium, vitamin B12, calcium, and riboflavin as well as a
good source of phosphorus. Those with digestive problems are often advised to drink
buttermilk rather than milk, as it is more quickly digested. Buttermilk has more lactic acid
than skim milk
Flavored Milk
DODLA flavored milk, an emerging health drink that will refresh your senses. The
product is UHT treated at high temperatures and packed aseptically to ensure high quality
and purity.
Natural Flavors from DODLA DAIRY
 Strawberry
 Chocolate
 Elaichi
 Badam
 Vanilla
 Pista
GHEE
DODLA GHEE is made from Buffalo and Cow Fat. This is made by simmering
unsalted butter in a large pot until all water has boiled off and protein has settled to the
bottom. The cooked and clarified butter is then spooned off to avoid disturbing the milk
solids on the bottom of the pan. DODLA GHEE is made without adding any preservative
or chemicals. The natural Aroma is the main factor for its success in the market.
Ghee is used in Indian sweets such as Mysore Pak, and different varieties of halva
and laddu. It is observed in the case of such sweets that the flavor and aroma obtained is
entirely different when ghee is used, and will be much superior all other kinds of fat/oil.
PANEER
DODLA PANEER is an unaged, acid-set, non-melting farmer cheese made by

curdling heated milk with food acid. Most varieties of paneer are simply pressed into a
cube and then sliced or chopped. Paneer is one of the few types of cheese indigenous to
the Indian subcontinent, and is widely used in Indian cuisine and even some Middle
Eastern and Southeast Asian cuisine. Paneer is completely lacto-vegetarian. Paneer is a
source of protein for vegetarians. DodlaPaneer
COOKING BUTTER
DODLA BUTTER is made from the fat of cows' milk. It's not pure fat. However,
only about 80 percent of ordinary butter is fat. The remaining 20 percent is made up of
milk solids and water.
No other product can come close to Dodla butter because of its rich, creamy
mouth feel and its sublime flavor. Butter is preferred fat being used in every preparation in
the culinary arts.
Dodla Butter is available in three variants.
1) Yellow Butter made from Cow Milk.
2) White Butter made from Buffalo Milk
3) Table Butter made from Cow Milk
Moisture, which is the main factor for its success in the market.
DOODH PEDA
DoodhPeda is a Delicious sweet made from pure Buffalo Milk. The granule texture
and mouth-watering taste is assured. DoodhPeda is packed specially to retain the
Freshness and Natural flavors.
The product is available in the following pack sizes.
20 Grams
200 Grams
500 Grams
CHAPTER 3
THEORETICAL FRAMEWORK
THEORETICAL FRAMEWORK
One of the most important areas in the day-to-day management of the firm is the
management of ASSET AND LIABILITIES .ASSET AND LIABILITIES is the
functional area of the finance that covers all the current accounts of the firm. It is
concerned with management of the level of individual current assets as well as the
management of total ASSET AND LIABILITIES. Financial management means
procurement of funds and effective utilization of these procured funds. Procurement of
funds is firstly concerned for financing ASSET AND LIABILITIES requirement of the
firm and secondary for financing fixed assets.
Ordinarily, the term “ASSET AND LIABILITIES” stands for that part of the
capital, which is required for the financing of working or current needs of the company.
Working capital is the lifetime of every concern. Whether it is manufacturing or non-
manufacturing one without adequate working capital, there can be no progress in the
industry.
Definition
” ASSET AND LIABILITIES refers to a firm’s investment in short term assets-

cash, short term securities, accounts receivables and inventories”.
-WESTERN & BRIGHAM
“ASSET AND LIABILITIES is descriptive of that capital which is not fixed.

But the more common use of the ASSET AND LIABILITIES is to consider it as the
difference between the book value of the current assets and the current liabilities”.
- HOAGLAND
Composition of ASSET AND LIABILITIES
1.Current Assets
a) Inventories Raw Materials
Work in progress
Finished goods
Stores and spares
Miscellaneous Goods
b) Receivables Trade debtors
Loans and advances
Other debtor balances
c) Marketable securities Govt securities
Semi-Government securities
Shares, Debenture, etc.,
d) Cash and bank balance Cash in Hand
Cash At Bank
Cash in Transit
2.Current Liabilities:
a) Sundry creditors Interest accused on loan
Advances received from customs
Short term loans from banks
Trade dues and other liabilities
Deposits from public, etc.,
LIABILITIES CAPITAL CYCLE (THE OPERATING CYCLE)
Cash
Bills Raw Materials

Receivables or
Debtors
Working in
Credit Sales progress
Finished goods
SOURCES OF ASSET AND LIABILITIES
ASSET AND LIABILITIES
Long – term sources Short-term sources
Internal External
1. Sale of shares
2. Sale of Debentures 1. Depreciation funds 1. Trade credit
3. Sale of idle fixed assets 2. Provision of Taxation 2. Credit papers
4. Long-term loans 3. Accrued Expenses 3. Bank credit

5. Customers credit 4. Public Deposits
6. Security of employee
7. Factoring
What is Asset Liability Management?
Asset liability management (ALM) can be defined as the comprehensive and

dynamic framework for measuring, monitoring and managing the financial risks
associated with changing interest rates, foreign exchange rates and other factors that can
affect the organization’s liquidity.
ALM relates to management of structure of balance sheet (liabilities and assets) in

such a way that the net earnings from interest is maximized within the overall risk-
preference (present and future) of the institutions.
Thus the ALM functions includes the tools adopted to mitigating liquidly risk,
management of interest rate risk / market risk and trading risk management. In short,
ALM is the sum of the financial risk management of any financial institution.
In other words, ALM is all about managing three central risks:
n Interest Rate Risk
n Liquidity Risk
n Foreign currency risk
For banks with forex operations, it also includes managing
n Currency risk
Through ALM banks try to match the assets and liabilities in terms of Maturities
and Interest Rates Sensitivities so as to minimize the interest rate risk and liquidity risk.
Overview of what is asset liability mismatches:
The Assets and Liabilities of the bank’s B/Sheet are nothing but future cash
inflows &outflows. Under Asset Liability Management i.e. ALM, these inflows &
outflows are grouped into different time buckets. Then each bucket of assets is matched
with the corresponding bucket of liability.
The differences in each bucket are known as mismatches.
Is complete matching of Assets & Liabilities in the Balance sheet necessary?
No, because banks can even make money as a result of such mismatches
sometimes. Alam Greenspan, ex-Chairman of US Federal Reserve has once observed
“risk taking is necessary condition for wealth creation”. However, it is a risky proposition
to keep large mismatches as it can lead to massive losses in a volatile market. Therefore,
in practice, the idea is to limit the mismatches rather than aim at zero mismatches.
Evolution of ALM in Indian Banking System:
In view of the regulated environment in India in 1970s to early 1990s, there was
no interest rate risk as the interest rate were regulated and prescribed by RBI. Spreads
between deposits and lending rates were very wide. At that time banks Balance Sheets
were not being managed by banks themselves as they were being managed through
prescriptions of the regulatory authority and the government. With the deregulation of
interest rates, banks were given a large amount of freedom to manage their Balance
sheets. Thus, it became necessary to introduce ALM guidelines so that banks can be
prevented from big losses on account of wide ALM mismatches.
Reserve Bank of India issued its first ALM Guidelines in February 1999, which
was made effective from 1 st April 1999. These guidelines covered, inter alia, interest rate
risk and liquidity risk measurement/ reporting framework and prudential limits. Gap
statements were required to be prepared by scheduling all assets and liabilities according
to the stated or anticipated re-pricing date or maturity date. The Assets and Liabilities at
this stage were required to be divided into 8 maturity buckets (1-14 days; 15-28 days; 29-
90 days; 91-180 days; 181-365 days, 1-3 years and 3-5 years and above 5 years), based on
the remaining period to their maturity (also called residual maturity)..
All the liability figures were to be considered as outflows while the asset figures
were considered as inflows.
As a measure of liquidity management, banks were required to monitor their

cumulative mismatches across all time buckets in their statement of structural liquidity by
establishing internal prudential limits with the approval of their boards/ management
committees. As per the guidelines, in the normal course, the mismatches (negative gap) in
the time buckets of 1-14 days and 15-28 days were not to exceed 20 per cent of the cash
outflows in the respective time buckets Later on RBI made it mandatory for banks to form
ALCO (Asset Liability Committee) as a Committee of the Board of Directors to track,
monitor and report ALM.
It was in September, 2007, in response to the international practices and to meet

the need for a sharper assessment of the efficacy of liquidity management and with a view
to providing a stimulus for development of the term-money market, RBI fine tuned these
guidelines and it was provided that the banks may adopt a more granular approach to
measurement of liquidity risk by splitting the first time bucket (1-14 days at present) in the
Statement of Structural Liquidity into three time buckets viz., 1 day (called next day) , 2-7
days and 8-14 days. Thus, banks were asked to put their maturing asset and liabilities in
10 time buckets.
Thus as per October 2007 RBI guidelines, banks were advised that the net
cumulative negative mismatches during the next day, 2-7 days, 8-14 days and 15-28 days
should not exceed 5%, 10%, 15% and 20% of the cumulative outflows, respectively, in
order to recognize the cumulative impact on liquidity. Banks were also advised to
undertake dynamic liquidity management and prepare the statement of structural liquidity
on a daily basis. In the absence of a fully networked environment, banks were allowed to
compile the statement on best available data coverage initially but were advised to make
conscious efforts to attain 100 per cent data coverage in a timely manner. Similarly, the
statement of structural liquidity was to be reported to the Reserve Bank, once a month, as
on the third Wednesday of every month. The frequency of supervisory reporting of the
structural liquidity position was increased to fortnightly, with effect from April 1, 2008.
Banks are now required to submit the statement of structural liquidity as on the first and
third Wednesday of every month to the Reserve Bank.
Board’s of the Banks were entrusted with the overall responsibility for the
management of risks and required to decide the risk management policy and set limits for
liquidity, interest rate, foreign exchange and equity price risks.
Asset-Liability Committee (ALCO), the top most committee to oversee the

implementation of ALM system is to be headed by CMD /ED. ALCO considers product
pricing for deposits and advances, the desired maturity profile of the incremental assets
and liabilities in addition to monitoring the risk levels of the bank.
Progress in Adoption of Techniques of ALM by Indian Banks:
ALM process involve in identification, measurement and management of risk Parameter.

In its original guidelines RBI asked the banks to use traditional techniques like Gap
analysis for monitoring interest rates and liquidity risk. At that RBI desired that Indian
Banks slowly move towards sophisticated techniques like duration, simulation and Value
at risk in future. Now with the passage of time, more and more banks are moving towards
these advanced techniques.
Asset- Liability Management Techniques:
ALM is bank specific control mechanism, but it is possible that several banks may employ
similar ALM techniques or each bank may use unique system.
Gap Analysis:
Gap Analysis is a technique of Asset – Liability management. It is used to assess interest

rate risk or liquidity risk. It measures at a given point of time the gaps between
Rate Sensitive Liabilities (RSL) and Rate Sensitive Assets (RSA) (including off balance
sheet position) by grouping them into time buckets according to residual maturity or next
re-pricing period, whichever is earlier. An asset or liability is treated as rate sensitive if;
i) Within time bucket under consideration is a cash flow.
ii.) The interest rate resets/reprises contractually during time buckets
iii.) Administered rates are changed and
iv.) It is contractually pre-payable or withdrawal allowed before contracted maturities.

Thus;
GAP=RSA-RSL
GAP Ratio=RSAs/RSL
• Mismatches can be positive or negative

• Positive Mismatch: M.A.>M.L. and vice-versa for Negative Mismatch
• In case of +ve mismatch, excess liquidity can be deployed in money market
instruments, creating new assets & investment swaps etc.
• For –ve mismatch, it can be financed from market borrowings (call/Term), Bills
rediscounting, repos& deployment of foreign currency converted into rupee.
Gap analysis was widely used by financial institutions during late 1990s and early years
of present century in India. The table below gives you idea who does a positive or
negative gap would impact on NII in case there is upward or downward movement of
interest rates:
Gap Interest rate Change Impact on NII
Positive Increases Positive
Positive Decreases Negative
Negative Increases Negative
Negative Decreases Positive

Duration Gap Analysis:
This is an alternative method for measuring interest-rate risk. This technique

examines the sensitivity of the market value of the financial institution’s net worth to
changes in interest rates. Duration analysis is based on Macaulay’s concept of duration,
which measures the average lifetime of a security’s stream of payments.
We know that Duration is an important measure of the interest rate sensitivity of

assets and liabilities as it takes into account the time of arrival of cash flows and the
maturity of assets and liabilities. It is the weighted average time to maturity of all the
preset values of cash flows. Duration basically refers to the average life of the asset or the
liability. DP /p =D ( dR /1+R) The above equation describes the percentage fall in price of
the bond for a given increase in the required interest rates or yields.
The larger the value of the duration, the more sensitive is the price of that asset or
liability to changes in interest rates. Thus, as per this theory, the bank will be immunized
from interest rate risk if the duration gap between assets and the liabilities is zero. The
duration model has one important benefit. It uses the market value of assets and liabilities.
Duration analysis summarizes with a single number exposure to parallel shifts in

the term structure of interest rates.
It can be noticed that both gap and duration approaches worked well if assets and
liabilities comprised fixed cash flows. However options such as those embedded in
mortgages or callable debt posed problems that gap analysis could not address. Duration
analysis could address these in theory, but implementing sufficiently sophisticated
duration measures was problematic.
Scenario Analysis:
Under the scenario analysis of ALM several interest rate scenarios are created
during next 5 to 10 years. Such scenarios might specify declining interest rates, rising
interests rates, a gradual decrease in rates followed by sudden rise etc. Different
scenarios may specify the behavior of the entire yield curve, so there could be scenarios
with flattening yield curve, inverted yield curves etc. Ten to twenty scenarios might be
specified to have a holistic view of the scenario analysis. Next assumptions would be
made about the performances of assets and liabilities under each scenario. Assumptions
might include prepayment rates on mortgages and surrender rates on insurance products.
Assumptions may also be made about the firm’s performance. Based upon these
assumptions the performance of the firm’s balance sheet could be projected under each
scenario. If projected performance was poor under specific scenario the ALCO might
adjust assets or liabilities to address the indicated exposure. A short coming of scenario
analysis is the fact that it is highly dependent on the choice of scenario. It also requires
that many assumptions be made about how specific assets or liabilities will perform under
specific scenario.
Value at Risk
VaR or Value is Risk refers to the maximum expected loss that a bank can suffer
over a target horizon, given a certain confidence interval. It enables the calculation of
market risk of a portfolio for which no historical data exists. It enables one to calculate the
net worth of the organization at any particular point of time so that it is possible to focus
on long term risk implications of decisions that have already been taken or that are going
to be taken. It is used extensively for measuring the market risk of a portfolio of assets
and/or liability.
CHAPTER 4
DATA ANALYSIS & INTERPRETATION
DATA ANALYSIS & INTERPRETATION
STATEMENT SHOWING THE SCHEDULES OF CHANGES IN ASSETS AND LIABILITIE
2013 - 2014 (Rupees in millions)
PARTICULARS 2013 2014 INCREASE DECREASE
Current Assets:
Inventory 5680.81 9025.61 3344.8
Debtors 4587.66 4243.37 344.29
Cash & Bank 7966.82 6028.76 1938.06

Loans & Advances 3337.34 3026.9 310.95
Total 21572.63 22324.13

Current Assets (A)
Current Liabilities:
Liabilities 9611.87 11468.95 1857.08
Provisions 2044.80 2616.21 571.41
Total Current 11656.67 14085.16

Liabilities (B)
ASSET AND
LIABILITIES (A-B) 9915.96 8238.97
Decrease in ASSET
1676.99 1676.99
AND LIABILITIES
TOTAL 9915.96 9915.96 5621.79 5621.79
Source: Annual reports of company

Interpretation
The above table shows that there has been decrease in need for ASSET AND
LIABILITIES to the extent of Rs.1676.99 from the year 2013 – 2014 due to increase in
current liabilities in this financial year.
STATEMENT SHOWING THE SCHEDULES OF CHANGES IN ASSETS AND LIABILITIES
Current Assets:
Inventory 9025.61 10703.21 1677.6
Debtors 4243.37 5228.75 985.38
Cash & Bank 6028.76 4349.39 1679.37
Loans & Advances 3026.39 6695.79 3669.4
Total Current Assets 22324.13 26977.14
(A)
Liabilities 11468.95 16516.25
Provisions 2616.21 1042.30 1573.91 5047.3
Total Current
Liabilities
14085.16 17558.55
(B)
ASSET
8238.97 9418.59
Increase in 1179.62 1179.62

LIABILITIES
TOTAL 9418.59 9418.59 7906.29 7906.29
Interpretation:
The above table shows that there has been increase in need for working capital to
the extent of Rs.1179.62 from the year 2014– 2015 due to increase in current assets in this
financial year.
Current Assets:
Inventory 10703.21 12239.14 1535.93
Debtors 5228.75 3758.35 1470.4
Cash & Bank 4349.39 4513.70 164.31
Loans & Advances 6695.79 8241.37 1545.58
Total Current Assets

(A) 26977.14 28752.56
Liabilities 16516.25 19267.09 2750.84
Provisions 1042.30 3452.31 2410.01
Total Current
17558.55 22719.4
Liabilities(B)
ASSETS(A-B)
9418.59 6033.198
Decrease in
LIABILITIES
3385.4 3385.4
TOTAL 9418.59 9418.59 6631.25 6631.25
Interpretation
The above table shows that there has been decrease in need for LIABILITIES to
the extent of Rs.3385.4 from the year 2015 – 2016 due to increase in current liabilities in
this financial year
2016– 2017 ( Rupees in millions)
Current Assets:
Inventory 12239.14 13300.14 1061
Debtors 3758.35 9579.74 5821.3
Cash & Bank 4513.70 880.8 3632.86
Loans & Advances 8241.37 7895.43 345.95

(A)
Liabilities 19267.09 18688.64 578.44
Provisions 3452.31 2680.8 771.49
Total Current
Liabilities
22719.4 21369.45
(B)
LIABILITIES (A-B) 6033.19 10286.9
Increase in 4253.51 4253.51

LIABILITIES
TOTAL 10286.7 10286.9 8232.32 8232.32
Interpretation
The above table shows that there has been increase in need for working capital to
the extent of Rs.4253.51 from the year 2016 – 2017 due to increase in current assets in this
financial year.
Current Assets:
Inventory 13300.14 16382.4 3082.2
Debtors 9579.74 10220.6 6408.75
Cash & Bank 880.8 5189.2 4308.3
Loans & Advances 7895.43 9604.6 709.18

(A)
Liabilities 18688.64 125920.6 7231.9
Provisions 2680.8 3686.9 1006.1
Total Current
Liabilities
21369.45 29607.57
(B)
LIABILITIES(A-B)
10286.9 11789.2
Increase in ASSETS 1502.3 1502.3

AND LIABILITIES
TOTAL 11789.2 11789.2 9740.3 9740.3
Interpretation
The above table shows that there has been increase in need for ASSETS to the
extent of Rs.1502.3 from the year 2017 – 2018 due to increase in current assets in this
financial
CURRENT RATIO
CURRENT ASSETS
CURRENT RATIO =
CURRENT LIABILITIES
Year Current assets Current liabilities Current ratio
2013-2014 22324.13 14085.1636 1.585
2014-2015 26977.14 17558.55 1.5
2015-2016 28752.16 22719.4 1.265
2016-2017 31651.15 21369.45 1.481
2017-2018 41396.8 29607.57 1.398
Source: Annual Reports of the company

current ratio
1.6
1.4
1.2
0.8
0.6
0.4
0.2
0
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
current ratio
Interpretation:
The standard current ratio is 2:1. The current ratio during the study period is less
than the standard. So, the liquid position of the company is not satisfactory.
QUICK RATIO
QUICK ASSETS
QUICK RATIO =
CURRENT LIABILITIES
Current
Year Quick assets Quick ratio
liabilities
2013-2014 13298.52 14085.16 0.944
2014-2015 16273.93 17558.55 0.926
2015-2016 16513.42 22719.4 0.726
2016-2017 18351.01 21369.45 0.858
2017-2018 25014.4 29607.57 0.844

Quick ratio
0.9
0.8
0.7
0.6
Quick ratio
0.5
0.4
0.3
0.2
0.1
0 2013-14 2014-15 2015-16 2016-17 2017-18
Interpretation
The quick ratio of the company shows up and down from 2012 to 2017 i.e., from
0.944 to 0.844 that means this ratio has also not reached the standard norm of 1:1. This
indicates a due allowance should be given to doubtful (or) non-realizable book debts. The
companies mainly focus on the qualitative view of the quick assets.
CASH RATIO
CASH
CASH RATIO =
CURRENT LIABILITIES
Year Cash Current Liabilities Cash Ratio
2013-2014 6028.76 14085.55 0.43
2014-2015 4349.39 17558.55 0.25
2015-2016 4513.7 22719.39 0.2
2016-2017 880.84 21369.46 0.04
2017-2018 5189.2 29607.57 0.18

cash ratio
0.45
0.4
0.35
0.3
0.25
cash ratio
0.2
0.15
0.1
0.05
0
2013-14 2014-15 2015-16 2016-17 2017-18
Interpretation
From the above table & graph the cash ratio in 2013-14is 0.4, 2014-15 is 0.25,
2015-16 is 0.2, 2016-17 is 0.04 & 2017-18 is 0.18. The standard cash ratio is 0.5% the
cash ratio during the study period was less than the standard ratio. The utilization of cash
was decreasing gradually.
INVENTORY TURNOVER RATIO
COST OF GOODS SOLD (OR) NET SALES

INVENTORY TURNOVER RATIO =
AVERAGE INVENTORY
Inventory turnover
Year Sales Avg inventory ratio
(times)
2013-2014 52476.57 9025.61 5.814
2014-2015 71681.76 10703.21 6.697
2015-2016 77425.8 12239.14 6.326
2016-2017 66666.4 13300.14 5.012
2017-2018 78725.97 16382.4 4.805

Inventory turn over ratio
4
Inventory turn over ratio
0
2013-14 2014-15 2015-16 2016-17 2017-18
Interpretation
In the above graph the stock turnover ratio shows that how many times the stock is
converted into sales. During the year 2013-18 this ratio seems to be highest i.e. of 6.697
times, but during the last 5 years the ratio seems to be changed. Therefore, this shows the
company is maintaining efficient inventory management policies.
DEBTORS TURNOVER RATIO
CREDIT SALES / SALES

DEBTORS TURNOVER RATIO = * 100
AVERAGE DEBTORS
Debtors turnover
ratio
Year sales Average debtors
(times)
2013-2014 52476.57 4243.37 1236.67
2014-2015 71681.76 5228.75 1370.91
2015-2016 77425.8 3758.35 2060.10
2016-2017 66666.4 9579.74 695.91
2017-2018 78725.97 10220.6 770.27

Debtors Turn over ratio
2500
2000
1500
Dr Turn over ratio
1000
500
0
2012-13 2013-14 2014-15 2015-16 2016-17
Interpretation
Debtors turnover ratio shows the positive change that can be indicate as to how fast
the debts are collected. This ratio indicates a higher rate of 2060.10 times is recorded in
the company’s books.
AVERAGE DEBT COLLECTION PERIOD
NO OF DAYS / MONTHS IN A YEAR

AVERAGE DEBT COLLECTION PERIOD =
DTR
year No. of days DTR Days
2013-2014 365 12.366 29.53
2014-2015 365 13.709 26.64
2015-2016 365 20.60 17.71
2016-2017 365 6.95 52.51
2017-2018 365 7.70 47.40

days
60
50
40
days
30
20
10
0
2013-14 2014-15 2015-16 2016-17 2017-18
Interpretation:
The debt collection period shows that the collection of debtors in no. of days the
shorter collection period indicates the liquidity of debtors. From the table and graph the
avg debt collection period was 168.79 days.
ASSETS AND LIABILITY RATIO
SALES
WORKING CAPITAL TURNOVER RATIO =
NET WORKING CAPITAL
Year Sales Net working capital W/C TO Ratio
2013-2014 52476.57 8238.97 6.36
2014-2015 71681.76 9418.59 7.61
2015-2016 77425.08 6033.19 12.83
2016-2017 66666.04 10286.07 6.48
2017-2018 78725.97 11789.27 6.67
Source: Annual reports of the company

Working Capital Turn over ratio
2500
2000
1500
Dr Turn over ratio
1000
500
0 2013-14 2014-15 2015-16 2016-17 2017-18
Interpretation:
 The working capital turnover ratio was increasing from 2012-13 to 2013-14 and,
2014-15 suddenly there is a decrease in 2015-16 due to Indian Pharma industry and
market slow down.
PROFITIBALITY RATIOS
Gross Profit Ratio
GROSS PROFIT
GROSS PROFIT RATIO =
NET SALES
Year Gross Profit Sales GP Ratio
2013-2014 1705.45 52477 3.25
2014-2015 9108.21 71682 12.71
2015-2016 9043.22 77426 11.68
2016-2017 6855 66666 10.28
2017-2018 7405.99 78726 9.41
Source: Annual reports of the company

Gross Profit Ratio
2500
2000
1500
Dr Turn over ratio
1000
500
0
2013-14 2014-15 2015-16 2016-17 2017-18
Interpretation
The gross profit performance of the company indicates that a significant proportion
of sales revenue is available to the company in the form of gross profit. The performance
of the company during the study period is found to be good except in the year 2012-2013
Net Profit Ratio
NET PROFIT
NET PROFIT RATIO=--------------------------------
NET SALES
Year Net Profit Sales NP Ratio
2013-2014 3273.2 52476.57 6.24
2014-2015 4412.86 71681.76 6.16
2015-2016 4693.1 77425.8 6.06
2016-2017 1899.96 66666.4 2.85
2017-2018 4236.75 78725.97 5.38

Net Profit Ratio
2500
2000
1500
Dr Turn over ratio
1000
500
0
2013-14 2014-15 2015-16 2016-17 2017-18
Interpretation
The Net profit ratio of the company is almost constant during the study
except in the year 2015-16 due to market slow down.
STOCK VELOCITY
NO OF DAYS / MONTHS IN A YEAR

STOCK VELOCITY =
ITR
Stock
No. of days/months Inventory
Year velocity
in a year turnover ratio
(months)
2013-2014 12 5.814 2.064
2014-2015 12 6.697 1.792
2015-2016 12 6.326 1.897
2016-2017 12 5.012 2.394
2017-2018 12 4.805 2.497

Stock velocity
2.5
1.5
Stock velocity
0.5
0
2013-14 2014-15 2015-16 2016-17 2017-18
Interpretation
Stock velocity period shows the period in how many months the stock is converted
into sales. The efficiency was increased to 1.79 months in the year 2012-13 and the period
was increased in the year 2015-16 which indicates low efficiency period.
CHAPTER 5
FINDINGS
SUGGESTIONS
CONCLUSION
FINDINGS
 The current ratio of the company shows ups and downs from 2015-14 to 2016-17
i.e., 1.58 to 1.39 that means this ratio has also not reached the standard norm of 2:1.
Thus, the company is not in a satisfactory position in the short –run.
 The quick ratio of the company shows ups and downs from 2013-14 to 2017 to
2018 i.e., from 0.94 to 0.84 that means this ratio has also not reached the standard
norm of 1:1. This indicates a due allowance should be given to doubtful (or) non-
realizable book debts. The companies mainly focus on the qualitative view of the
quick assets.
 Inventory turnover ratio was recorded to be the highest in the year 2014-15 i.e.,
6.697 times.
 Cash ratio of the company during the period of study was less than the standard
ratio i.e., 0.5%. It is recorded to be very less of 0.04% during the financial year
2016-17.
 Debtors turnover ratio was recorded to be highest in the financial year 2013-14 i.e.,
1236.67 times.
 The average debt collection period was 168.79 days during the period of study.
 Working capital turnover ratio indicates that velocity of the utilization of net
working capital. A higher ratio indicates efficient utilization of working capital and
vice - versa.
 Hence, the company has shown higher rates in 2015-16 i.e., 12.83 times that means
better utilization of current assets.
 The Gross profit performance of the company indicates that a significant proportion
of sales revenue is available to the company in the form of gross profit. From gross
profit the company’s performance is found to be good in the short-run except in the
year 2013-14.
 The company maintains constant net profit ratio in the short-run during the period
of study except in the year 2016-17.
SUGGESTIONS
 Short term financial position of the company is to be improved either by increasing

current assets or by decreasing current liabilities.
 The company should maintain adequate cash balances.
 The company should improve its efficiency in debt collection.
 The firm should follow effective cash management system and has to take control
on cash balance because cash is non-earning assets and increasing cost of funds.
 The firm can increase its operational efficiency by utilization of fixed assets.
 Generally an ideal company will try to maintain an average working capital policy,
rather too conservative (or) too aggressive. But the company is highly followed the
conservative approach. It can be suggested that the company should develop an
optimum working capital policy keeping in view of the availability of funds for
daily operations to get more profits.
 The company is supposed to forecast the demand for their products. It will help the
company to maintain better working capital which will in turn help the company to
have a good liquidity position.
CONCLUSION
Working capital is important tool of finding the financial position of organization.

It is heart of organization that is why we should maintain sufficient working capital for the
requirement No. of firm. That optimum working capital we should have maintains we
cannot maintain excess and inadequate working capital. If the DODLA DAIRY PVT LTD
Company can give smooth ASSETS AND LIABILITIES for the business means it will
stand No.1 Company in the market.
BALANCE SHEET AS AT MARCH 31, 2014
2014 2013
Schedule Rs.millions Rs.millions Rs.millions
Sources of funds
Shareholders’ funds
Capital 1.1 1,221.59 1,189.29
Reserves and surplus 1.2 12,902.94 10,489.36
14,124.53
Loan funds
Secured loans 1.3 1,846.91 2,634.96
Unsecured loans 1.4 5,072.37 6,169.10
6,919.28 8,804.06
Deferred tax liability - net 1,796.89 1,708.48
Total 22,840.70 22,191.19
Application of funds
Fixed assets 1.5
Gross block 21,384.99 20,022.50
Less Depreciation 11,952.28 11,084.04
Net block 9,432.71 8,938.46
Capital work-in-progress 1,414.17 851.55
10,846.88 9,790.01
Investments 1.6 3,681.78 2,291.90
Current assets, loans and
advances
Inventories 1.7 9,025.61 5,680.81
Sundry debtors 1.8 4,243.37 4,587.66
Cash and bank balances 1.9 6,028.76 7,966.82
Loans and advances 1.10 3,026.39 3,337.34
22,324.13 21,572.63
Less:Current liabilities and 1.11
provisions
Liabilities 11,468.95 9,611.87
Provisions 2,616.21 2,044.80
14,085.16 11,656.67
Net current assets 8,238.97 9,915.96
Miscellaneous expenditure 1.12 73.07 193.32
(to the extent not written off or
adjusted)
Total 22,840.70 22,191.19
2015 2014
Sources of funds
Capital 1.1 1323.87 1,221.59
Reserves and surplus 1.2 17621.81 12902.94
18945.68 14124.53
Loan funds
Secured loans 1.3 3602.16 1846.91
Unsecured loans 1.4 2801.82 5072.37
6403.98 6919.28
Deferred tax liability - net 1969.29 1796.89
Total 27318.95 22840.70
Fixed assets 1.5
Gross block 26201.97 21384.99
Less Depreciation 13131.64 11952.28
Net block 13070.33 9432.71
Capital work-in-progress 2374.91 1414.17
15445.24 10846.88
Investments 1.6 2210.94 3681.78
advances
Inventories 1.7 10703.21 9025.61
Sundry debtors 1.8 5228.75 4243.37
Cash and bank balances 1.9 4349.39 6028.76
Loans and advances 1.10 6695.79 3026.39
26977.14 22324.13
provisions
Liabilities 16516.25 11468.95
Provisions 1042.30 2616.21
17558.55 14085.16
Net current assets 9418.59 8238.97
adjusted)
Total 27318.95 22840.70
2016 2015
Sources of funds
Capital 1.1 1330.34 1323.87
211489.82 18495.68
Loan funds
Secured loans 1.3 1902.40 3602.16
Unsecured loans 1.4 6972.61 2801.82
8875.01 6403.98
Total 32903.03 27318.95
Fixed assets 1.5
Gross block 29424.38 26201.97

Net block 15255.55 13070.33
20547.95 15445.24
Investments 1.6 6099.00 2210.94
advances
Inventories 1.7 12239.14 10703.21
Sundry debtors 1.8 3758.35 5228.75
28752.56 26977.14
provisions
Liabilities 19267.09 16516.25
Provisions 3452.31 1042.30
22719.40 17558.55
adjusted)
Total 32903.03 27318.95
2017 2016
Sources of funds
Capital 1.1 1330.34 1330.34
34738.99 21489.82
Loan funds
Secured loans 1.3 3044.13 1902.40
Unsecured loans 1.4 16537.30 6972.61
19581.43 8875.01
Foreign currency monetary item 38.41
translation difference-net
Total 56993.20 32903.03
Fixed assets 1.5
Gross block 49532.72 29424.38
Net block 33991.16 15255.50
43974.05 20547.94
Investments 1.6 2635.57 6098.98
advances
Inventories 1.7 13300.14 12239.14
Sundry debtors 1.8 9579.74 3758.51
31656.15 28752.58
provisions
Liabilities 18688.64 19267.08
Provisions 2680.81 3452.30
21369.45 22719.39
adjusted)
Total 56993.20 32903.03
2018 2017
Sources of funds
Capital 1.1 1330.34 1330.34
36687.58 34738.90
Loan funds
Secured loans 1.3 7115.66 3044.13
Unsecured loans 1.4 14923.25 16537.30
22038.91 19581.83
Deferred liability 765.48
Foreign currency monetary item 124.50 38.41
translation difference-net
Total 63212.85 56993.20
Fixed assets 1.5
Gross block 60186.33 49389.48
Net block 42495.59 33991.16
48110.28 43974.05
Investments 1.6 3261.54 2635.51
advances
Inventories 1.7 16382.40 13300.14
Sundry debtors 1.8 10220.61 9579.74
41396.84 31656.15
provisions
Liabilities 25920.65 18688.64
Provisions 3686.91 2680.81
29607.57 21369.45
adjusted)
Total 63212.85 56993.20
BIBLOGRAPHY
S.P.Jain and K.L. Narang : Advanced Accountacy Volume –II

Khan and Jain Kalyani Publishers, Financial
Management
I.M.Pandey : Financial Management , 8 – Edition,
Vikas Publishing House Pvt.Ltd.
S.P.Jain& KL Narang : Cost and Management Accounting ,
Kalyani Publishers
Prasanna Chandra : Fundamentals of Financial
Management
Websites
 www.google.com
 www.dodladairypvtltd.com
 www.wikipedia.com
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CONTENTS

CHAPTER PARTICULARS PAGE.NO.

CHAPTER – II INDUSTRY PROFILE 09 - 11

CHAPTER – III COMPANY PROFILE 12 - 38

CHAPTER – IV THEORITICAL FRAME WORK 39 - 49

CHAPTER – V DATA ANALYSIS & INTERPRETATION 50 - 69

CHAPTER – VI FINDINGS, SUGGESTIONS& CONCLUSION 70 - 72

Assets liability management can be termed as risk management technique design to

Various stages of dairy industry origin as follows:-

THE DAIRY INDUSTRY PRIOR TO 1850:

THE DAIRY INDUSTRY AFTER 1850:

1. The factory system.

5. Research and scientific investigation.

6. Improved live stock.

India`s dairying industry is today in a state of dynamic transition with rapid

IMPORTANCE OF DAIRY INDUSTRIES:

With the modern knowledge of protection of milk during transportation and

With the modern knowledge of protection of milk during transportation and

Mineral salts 0.70

(GRADING, SAMPLING, WEIGHING, TESTING)

PRE-HEATING (350- 400C)

COOLING AND STRONG (50C OR BELOW)

PASTEURIZATION (63 C/30 MTS (OR) C/15 Sec)

HOMOGENIZATION (2500 PSI)

Manufacturer Milk selling agent Customers

It has an extensive selling agent in Nellore, Gudur, Tirupati, Guntur, Ongole,

DEMAND AND SUPPLY:

The minimum quality of milk per capital consumption recommended Indian

Milk is one of the heavenly foods i.e. prescribed by a doctor, a physician.

YEAR Qty (in Million tons)

Milk has a very complex composition. It constituents are disposed in aqueous

Demand is absolutely optimistic. Margins are quite reasonable even on packed

Perishability: Pasteurization has overcome this problem partially.UHT gives milk

Bad roads and inadequate transportation facility make milk procurement

With so many people entering this industry, competition has to be faced as a

There is a large scope for innovations in product development, packaging, and

Efforts to exploit potential are already on Amul is exporting to Bangladesh,

Their success in dairying depends on factors such as an efficient yet economical

As it is difficult to exercise strict supervision over milk supplies, it becomes

Standardized milk may be marketed as such or used for making certain

The Prevention of Food Adulteration Act Rules 1976 defines recombined

Under the prevention of Food Adulteration Act Rules 1976, recombined

The technique of recombination involves dispersion of milk powder in

FARM FRESH MILK- VARIETIES

FULL CREAM MILK TONED MILK

DOUBLE TONED MILK STANDARDISED MILK

Nowadays, most of the commercial Buttermilk is made by adding a lactic acid

Natural Flavors from DODLA DAIRY

DODLA PANEER is an unaged, acid-set, non-melting farmer cheese made by

Dodla Butter is available in three variants.

1) Yellow Butter made from Cow Milk.

2) White Butter made from Buffalo Milk

3) Table Butter made from Cow Milk

The product is available in the following pack sizes.

” ASSET AND LIABILITIES refers to a firm’s investment in short term assets-

-WESTERN & BRIGHAM

“ASSET AND LIABILITIES is descriptive of that capital which is not fixed.

Bills Raw Materials