TABLE OF CONTENT

Introduction of the Organization

Need of study or Research Problem

Objective of the Study

Research Methodology

Data presentation and Analysis

Financial analysis

Findings of the study

Suggestions and Recommendations

Bibliography

10. Appendix
INTRODUCTION

With a history that goes back to 50 years, B.L. Agro Oils Ltd. is a company with a

simple corporate objective - to manufacture, package and market the purest

possible edible oil that would offer healthier and tastier solution to millions of

consumers. Currently, B.L. Agro is in the business of Refining, Quality Control,

Packaging and Marketing of branded mustard and other edible oils.

VISION

To be a way of life for every Indian.

MISSION

To be the benchmark in purity and perfection. To achieve a leadership position in

the Indian market and to become the preferred Indian edible oil name globally.

QUALITY POLICY

B.L. Agro Oils Ltd. is committed to total customer satisfaction, and compliance

with regulatory bodies at all times and at maximum effectiveness.

We aim to

- Consistently enhance our understanding of market dynamics and changing

customer needs so as to offer finest quality products that at all times meet our

customers' expectations and the ever changing demands of the market place.

- Provide a high level of service to our customers with minimum cause for

complaint.
- Maintain a healthy & constructive work environment that enables personnel to

produce

Optimal output.

- Continually comply with the requirements of ISO 9001:2000, ISO 14002:2004,

HACCP and other government regulations and continuously improve the

effectiveness of our Quality Management System.

MANAGEMENT

The foundations of B.L. Agro were laid half a century ago by its Managing

Director,

Shri Ghanshyam Khandelwal - a veteran of the Indian mustard industry. Since then

the management of B.L. Agro has gained an unmatched, in-depth insight of the

industry and the continuously evolving customer needs. The leadership at B.L.

Agro has a vision for the future and their acumen in adapting to the changing times

has translated into consistent growth by the company.

However, the most important attribute of the B.L. Agro leadership is the un-fallible

commitment towards quality, towards customers and towards community at large.

At B.L. Agro 'No Compromise with Quality' is a guiding philosophy. And the

management takes it as their responsibility to not just ensure the highest quality
standards of company's products but also to instill this 'quality attitude' in every

member of the B.L. Agro organization.

Another distinctive characteristic of the B.L. Agro management team is their

strong belief that Success and growth do not mean much unless accompanied by

trust and respect from the community. And over the years this belief has ensured

that as a corporate citizen, B.L. Agro Oils Ltd. earns an image of one of the most

respected and revered organization in its region of activity.

Company Profile Directors

Ghanshyam Khandelwal
Managing Director

A true entrepreneur, Ghanshyam Khandelwal stepped into the mustard oil trading

business in the 1950s when he was still at a very young age. Beginning from

Bareilly, he single-handedly expanded operations and soon transformed Bail Kolhu

into one of the most preferred mustard oil brand in the entire belt of Eastern UP.

A man of foresight and vision Ghanshyam Khandelwal has been the guiding force

behind consistent growth of B.L. Agro Oils Ltd. With an eye on the future, he has,

over the years, displayed a tremendous prowess for anticipating the changing

consumer needs and has repeatedly led the organization to be a winner in a

dynamic industry scenario. The mantras of his success include his unflinching

commitment towards quality and his passion for perfection.

An un-doubted achiever, he is a man of undaunted determination and courage

along with exemplary business acumen.

What distinguish Ghanshyam Khandelwal are his philosophies that originate from

his commitment towards the community. A man of values, he strongly believes in

business ethics and corporate social responsibilities.

Ashish Khandelwal

Director - Finance & Sales

Post Graduate in Commerce, Ashish Khandelwal joined his father's business at a

very young age. A quick learner and a very hard worker he learnt the nuances of

the trade within no time and established himself as a growth motivator by bringing

in new-age marketing concepts and fresh opportunities.

With extraordinary abilities in sales and channel management, Ashish Khandelwal

has an unmatched hold on the market pulse. Still in his prime youth, he has already

played a key role in taking B.L. Agro to newer heights. In his leadership, the

company entered into the consumer packs segment and the venture resulted in

unprecedented success.

Having spent over 12 years in this trade, Ashish Khandelwal possesses a rare

combination of experience as well as youthful exuberance. With a futuristic

outlook, he has an unmatched ability to think ahead of the times and a vision that is

set to take B.L. Agro into a glorious future.

Richa Khandelwal

Director Marketing

BTech from IET, Lucknow and MBA from ICFAI, Hyderabad. Richa Khandelwal

adds a fresh dimension to the management competencies at B.L. Agro. Among her

many contributions to the organization is her vision to take B.L. Agro to the

highest national and international level.

With path-breaking ideas, Richa Khandelwal has played a key role in further

strengthening the Bail Kolhu and other B.L. Agro brands and has led its expansion

into Delhi NCR and other newer territories with outstanding success. In a short

span of time, she has turned Bail Kolhu into a household name in Delhi that has

already become the largest selling mustard oil in certain regions.

Always a forward looking person, Richa Khandelwal has helped the organization

get into an overdrive with her astute marketing strategies and innovative

techniques.
Growth so Far

Having started as a mustard trading house in 1958, B.L. Agro has come a long way

today. During the course of its journey, 1999 proved to be a landmark year which

transformed the business house from a commodity trading organization to an

FMCG company. The year witnessed the birth of B.L. Agro Oils as a registered

company and also marked its advent into quality control, packaging and marketing

of consumer packs of their flagship brand - Bail Kolhu Kachchi Ghani Mustard

Oil. Achieving an astonishing turnover of Rs. 60 crores in the first year itself, the

company has not looked back since.

Expansion and up-gradation has been a continuous process for B.L. Agro. The

marketers of a single mustard oil brand subsequently started rolling out multiple

varieties of mustard oil - thus catering to a much wider consumer base. As the
product range swelled, the competencies, capabilities and capacities were

continuously enhanced to meet the growing challenges. However even with its

ever-expanding size, B.L. Agro never lost sight of its ultimate goal that of

providing only the highest product quality - and hence set up its own advanced

quality control systems and packaging facilities.

Later, the company took another stride when being a player in the lone mustard oil

segment, B.L. Agro diversified into Refined Soybean oil and then further to

various blended edible oils. In 2006, B.L. Agro achieved yet another milestone

when it established its own state-of-the-art Refinery.

What Drives Success

 The Market and Consumer Insights possessed by B.L. Agro leadership is

unparalleled. B.L. Agro understands that eating habits of consumers are very

individualistic and vary from house to house. And in order to make a long term

relationship with the collective base, the company needs to pack Real Customer

Delight in each pack that it offers.

Moreover what has brought laurels to B.L. Agro and awarded it a leadership

position is the company's ability to anticipate and adopt to Market Demand Shifts

resulting from either consumer Living Pattern Shifts or any other reason. At B.L.

Agro, change has been one of the most consistent processes. Be it technological

capabilities, be it the strength of human minds or be it the collective efficiencies,

B.L. Agro has always anticipated the changing environment and empowered itself

for the same.

The most important success driver at B.L. Agro is its ability to offer Consistency

of Highest Quality Standards. Pack by pack, batch by batch, consignment by

consignment, the products of B.L. Agro carry exactly the same quality and purity

standards for which they have gained widespread respect.

Strength

The processes and facilities at the B.L. Agro plant match the highest standards

The Double Filter Process for Mustard Oil ensures that only the purest product is

dispatched from the B.L. Agro plant. The Refining is undertaken by Chemical

Refining process through which flows out the purest form of cooking oil that beats

the best known brands on transparency tests. Moreover, the oil is processed using

the Nitrogen Blanketing process that reduces the loss of nutritional values and

ensures Maximum Nutrition Retention (MNR) in the Refined Oils.

B.L. Agro Oils Ltd. is also one of the selected oil players in the country that have

been granted the Blending License thus enabling it to further expand its product

portfolio. With the vast possibilities in Blending, the company is now in a position

to develop many new products and cater to the evolving consumer needs.

Whatever the product and whatever be the process, at B.L. Agro the Purity &

Hygiene factor is always the topmost priority. At its technologically advanced

refinery plant, all processes are designed to be automated. Right from the un-

loading of the crude oil tankers to the filling and packaging of oil in various pack-

sizes, the product remains untouched by human hand.

As a result the established Edible Oil Brands of B.L. Agro are today enjoying

Market Leadership in a vast market and region. The unique taste preference

developed by the company's products ensure an unflinching consumer loyalty that

in turn results in the consistent demand for the company.

The company has secured sources for supply of crude oil. The identification of

multiple regions ensures that supplies to B.L. Agro are not affected by climatic

adversities or any other form of agricultural contingencies.

 One of the unique strengths of B.L. Agro is that the company even has its own

facilities for manufacturing of packaging materials used for its products. This

results not just in controlling the costs and enhancing value but also in maintaining

the product purity to the last possible level.

The company has an Excellent Track Record With the Management experience

of 50 years, B.L. Agro has displayed a consistent and exemplary growth right since

its inception.

B.L. Agro Oils Ltd. possesses India's largest mustard oil packaging facilities.

In-house QC Lab Best equipped & biggest in UP. The company has an in-house

Quality Control Laboratory with a Gas Chromatography that ensures purity, ideal

blends and PFA certified quality of all B.L. Agro products.

The company's lab is the biggest and best equipped in the entire state of Uttar

Pradesh.

To further complement its efforts and enhance its performance the company has

established Enterprise Resource Planning (ERP) systems and has obtained ISO

9001:2000, ISO 14002:2004 and HACCP certifications.

Potential Market Dynamics

Overview of Edible Oil Industry

In India the popular cooking mediums include Mustard Oil, Groundnut Oil,

Sunflower Oil, Coconut Oil, Soyabean Oil and Palm Oil.

Mustard, Soyabean and Palm Oil (mainly imported) account for over 75% of total

edible oil consumption.

Only around 16% of the households in India consume branded edible oils.

Among branded oils, refined oils account for 60% of consumption and crude oils

(only filtered) account for the balance.

Branded edible oils have penetrated 31% of households in urban areas and only

9% in rural areas.

The edible oil sector in India is largely unorganized with only a few organized

players.
Edible oil is sold in the country either in consumer packs (less than 5 lt pack sizes),

bulk packs (15 kg/ lt) or as loose oil in tankers or barrels.

Macroeconomic situation Industry growth rates

Indian edible oil economy is world's fourth largest after USA, China and Brazil

(India accounts for 7% of world oilseeds & oil meal production and 10% of world

consumption of edible oil).

2nd largest import bill item for India - favorable government policies for

domestic industry by way of high import duties on imported edible oils.

Increasing health consciousness, preference for packaged products (hygiene

factors and avoidance of any adulteration) and low-saturated fat cooking mediums.

Current & expected demands

According to an estimate, the demand for edible oils is expected to increase from

current levels of 11.5 million tones to 15.6 million tones in 2010 and 21.3 million

tones by 2015.
Growth Opportunities
Emergence of branded edible oil as a high growth segment in Indian FMCG
industry.

With a huge proportion of total Indian households still not using branded oils but
displaying continuous shift in their using pattern - from loose unbranded oils to
packed branded oils, the category of branded edible oils has emerged as a high
growth segment in the Indian FMCG industry.
With an excellent record of adapting to the dynamic trends, B.L. Agro Oils Ltd. is
well positioned and preparing itself to play an important role in facilitating this
transition in consumer behavior.
Future Strategy & Growth Plans

Expansion in geographic reach and newer markets - The company has already

extended its distribution network covering almost entire North India and is now

poised to further expand in newer markets.

To meet the challenges of growing demands, B.L. Agro is preparing for capacity

enhancement and expansion of manufacturing capabilities.

The company has an ambitious plan for setting up an Integrated Oil Complex for

which it has already identified the locations. With comprehensive facilities

available within this complex, the company will be able to provide integrated

solutions and enhance its competitive pricing power.

In addition to the existing facilities, the proposed complex will include Solvent

Extraction Plant, Rice Bran & Sunflower Refinery and Mustard Crushing

Facilities.
 To make its procurement processes smooth and cost effective B.L. Agro oils is

also contemplating setting up of Rack Facilities connecting its Oil Complex to

various Port.

With the addition of Mustard Crushing Facilities, the company plans to

consolidate as well as increase its market share in the mustard segment.

Increase in brand power B.L. Agro Oils Ltd. has planned widespread

promotional and consumer connect campaigns to achieve an increase in its brand

power.

The company is working to expand its product and brand portfolio through

extension of the existing lines as well as through diversification into other edible

food items.

Through ensuring a substantial market share in the mustard oil as well as other

segments, B.L. Agro aims to obtain better pricing power.

Corporate Social Responsibility

As socially responsible citizens, the promoters of B.L. Agro are committed to

contribute their bit in the nation building process and work towards the betterment

of the society.

The Khandelwal family actively participate in and support various community

service programs like Blood Donation camps, Plantation Drives, Service for

Physically Disabled etc.

As an environment sensitive industrial house, B.L. Agro takes various voluntary

measures in addition to the mandatory steps to ensure environment conservation.

Theseinclude

Effluent Treatment Plant for Water Pollution Control as well as Water

Conservation.

Installation of advanced equipments for Air Pollution Control.

Use of only Agriculture Bio-Mass for steam generation; and many more such

measures.

Khao Sarson, Jiyo Barson

 Mustard OilThe Healthiest One

Mustard Oil is extracted at a low pressure at low temperature (40-600C).

It contains 0.30-0.35 % essential oil (AllylIso-Thiocynate) which acts as

preservative.

Mustard Oil is one of the best cooking oil particular for heart patient because it has

an Omega 3 (MUFA) and 6 Fatty Acid composition (Linolic and alpha Linolic

Acid respectively) in good proposition close to 10:1 rarely found in any other oil.

The ideal ratio of Omega 6 and Omega 3 is 10:1.A Favourable Composition

Organization structure & hierarchy

Organization design & structure

HIERARCHY OF B.L.AGRO

Ideal Product Mix Bail Kolhu

Bail Kolhu Kachchi Ghani Mustard Oil is the flagship brand of the company. This

is a Grade A Mustard Oil and due to its unique taste and ideal pungency, it enjoys

a tremendous consumer preference throughout the states of UP, Uttaranchal and

Delhi.

Bail Kolhu is a clear market leader in most of its distribution territories and

commands almost monopolistic leadership position in many of the markets. Bail

Kolhu also enjoys a very high level of brand recall and brand loyalty amongst a

vast consumer base.

Mohan Dhara

Mohan Dhara is a well-accepted brand in the Refined Soyabean Oil segment.

Balance Lite

this is a fast growing brand that has facilitated the advent of B.L. Agro in the

Refined Vegetable Oil segment.

Aviral Dhara

Aviral Dhara is a multi-product brand of Mustard Oil, Palmolein Oil, and

Vegetable Oils. Having gained instant acceptance in the market, the brand is on a

steady growth chart.

NewProductDevelopment

In its quest to further expand its operations and reach for larger customer base,

B.L. Agro is in the process of developing ambitious new products. Nourish Delite

A soon to be launched multi-product National Food brand.

Nourish Delite is a Dream Project of B.L. Agro management that promises to

enhance the image as well as scale of company's operations.

First product to be offered under this brand will be Premium Soyabean oil followed

by Premium Mustard Oil. The line will be further expanded to multiple food
products that will even extend beyond edible oils and include products like Atta,

Besan, Pulses on one hand and Packaged Drinking Water on the other. At B.L.

Agro, the vision is to make Nourish Delite India's biggest and most trusted Food

Brand and the company is planning and preparing to make this dream a reality.
Objective of the study:

The main objective of the study is financial analysis of B.L. Agro oils ltd.

are -

To know the sales revenue and growth rate of B.L. Agro oils ltd.

To know the financial position of B. L. Agro.

To Find out different accounting ratios of B.L. Agro.

To enhance my knowledge about production process.

To find out the different future plans of B.L. Agro oils ltd.
Research Methodology:

My project report is secondary data base so the secondary data is collect on the

basis of requirement, convenience and availability of data as well as the reliability

of data. The sources through which the data is collected such as-

Newspaper, Internet, Balance sheets and some other sources of the company.

Research methodology deals with the various methods of research. The

purpose of the research methodology is to describe the research procedure

used in the research.

Research methodology helps in carrying out the project report in by

analyzing the various research findings collected through the data collection

methods.

In the project I am collecting the data from various website through internet

because my project based on secondary information which is already available

somewhere.

Research methodology may be treated as the heart of the projects. Without a

proper and well organized plan it is impossible to complete the projects and draw

conclusive and prepare result.

Research methodology is a systematic way which consists of series of action or

steps necessary to effectively carry out research and the desired sequencing of

these steps.

The research is processes of involve a number of inner related activities, which

overlap and rigidly follow a particular sequence.

It consist of following steps

Formulating the objective of the study.

Designing the methods of data collection.

Selecting the sample plan.

collecting the data

Processing and analyzing the data

Reporting the finding

Steps in Research Methodology
OBJECTIVE OF STUDY

An exploratory research focuses on the discovery of ideas and is generally based

on secondary data. It is primarily investigation which does not have a rigid design.

This is because a researcher engaged in an exploratory study may have to change

his focus as a result of new ideas and relationship among the variables.
 Analysis and

Interpretations
Finance and accounts department

Money or capital being a scare as well as crucial resource in the working of any

organization needs to be given prime importance. The financial resources have

been planned and controlled in a proper and continuous manner. As among the

most crucial decisions of a firm are those that relate to finance. Finance and

accounts from an integral part of any organization proper and smooth functioning

of this section is very vital for the organization to survive and grow.

Finance functions are of two types:

Managerial finance function

Routine finance function

Managerial finance functions require skillful, planning, control, and execution of

financial activities.

Routine finance functions do not require a great managerial ability to carry them

out. They are chiefly and incidental to the effective handling of the material

finance functions.

Role of the finance management

Finance is lifeblood of business thats why the finance function assumes more

significance because it plays important role in successful performance of all

operational and managerial function through there are other basic function also like

production, marketing etc.

The industrial development of the last 60yrs or so has made finance and financial

management an indispensable part of business management.

A firms success and even survival, its ability and willingness to maintain

production and to invest in fixed or working capital are to a very considerable

extent determined by its financial policies, both past and present. In fact the

financial manger is now being placed at central focal point of modern corporate

organization due to organizational changes and revolutionary changes in financial

management.

Financial management is viewed properly viewed as an integral part of overall

management rather than as a staff specialty concerned with production, marketing

and other functions with in an enterprise wherever decisions are made about the

acquisition or distribution of asset.

It is often said that now a days, financial management watches and cases various

development activities liquidity and profitability of the firm.

Few activities to be cased for:

High cost of financial the risky investment due to capital-intensive

environment.
 Diversification by the firm of various business, markets and products.

A high rate of inflation affecting firms forecast and planning.

Technological changes at high speed & need for more expenditure on R &

D.

Flow of information at rapid speed causing the use high-speed computers.

Last but not least, the sound financial decisions not only affect the

production and distribution but also affect the organizations profitability

and liquidity.

Financial statement analysis

Financial statement provides a view of the financial position and operation of the

firm. The focus of financial analysis is on key figures in the financial statement and

the significant relationship that exist between them.

The analysis of financial statement is a process of evaluating the relationship

between components parts of financial statements to obtain a better

understanding of the firms position & performance.

Steps of financial analysis

To select the information relevant to the decision under consideration from

the total information contained in the financial statement.

To arrange the information in a way to highlight significant relationship.

To interpret & draw inference &conclusion

 RATIOS ANAYLSIS

Ratio analysis is a widely used tool of financial analysis. It may be defined as the

systematic use of ratio to interpret the financial statement so that the strengths &

weaknesses of the firm as well as historical performance and current financial

condition can be determined. Here, the term ratio refers to the numerical or

quantitative relationship between two items/ variables, which are connected with

each other in some manner. Ratio analysis makes the related information

comparable.

Ratio may be expressed in either of the following ways:

In proportion: - in this form the amounts of the two items are being

expressed in a common denominator.

E.g.- current ratio as 2:1

Quick ratio as 1:1

In times of coefficient: - in this form, a quotient obtained by dividing one item

by another item.

E.g.- 6times is the ratio between sales & stock.

In percentage: - in this form, a quotient obtained by dividing one item by

another is multiplied by 100 & becomes the percentage form of expression.

E.g.- Relationship between gross profit & sales may be expressed as 25%
Financial analysis of B. L. Agro oils ltd.

Profitability ratio:-

Operating profit ratio = operating profit / sales * 100

= 467928770.37/4212526565.03*100

= 11.108

= 395052176.04/3540722900

= 11.157

Operating profit = gross profit + depreciation + Interest other

income

(Year 2010-2011) = 353896723.40+ 49681199.16 +72863059.81 -

8512212.00

= 467928770.37

(Year 2009-2010) = 305585893 + 42734324.00 + 47318871.04 -

586912.00

= 395052176.04
 Operating ratio Operating ratio establishes relationship between the cost

of good sold, and the other operating expenses and sales. The other

operating expenses include the cost of goods, administrative expenses, and

financial expenses, selling expenses. The costs of goods are also known as

direct operating expenses. Operating ratios are generally expressed in

percentage;

Operating ratio = Cost of sales + other operating expenses / sales

(Year 2010-2011) = 3858629841.63 +146035126.94

= 4004664968.57/4212526565.03

= 0.951

(Year 2009-2010) = 3235137007 +139424585.86

= 3374561592.86/3540722900

= 0.953

Cost of good sold = (Total sale - GP)

(Year 2010-2011) = 4212526565.03 353896723.40

= 3858629841.63

(Year 2009-2010) = 3540722900 305585893

= 3235137007
 Gross profit ratio Gross profit ratio measures the relationship of gross

profit to net sales is usually represented as a percentage. It is calculated as:

Gross profit ratio = G.P / net sale * 100

(Year 2010-2011) = 353896723.40 /4212526565.03*100

= 8.401% (year 2010-2011)

(Year 2009-2010) =305585893/3540722900*100

= 8.631%

Net sales = total sales sales return

(Year 2010-2011) = 4212526565.03 0

= 4212526565.03

(Year 2009-2010) = 3540722900 0

= 3540722900

Net profit ratio: Net profit ratio is also called net profit to sales ratio (profit

margin). Profit margin is indicative of the managements ability to operate

the business with sufficient success not only to recover from the revenues of

the period, the cost of merchandise or services, the expenses of operating the

business and the cost of borrowed funds, but also to leave a margin of
 reasonable compensation to the owners for providing their capital at risk.

Higher the ratio of net operating profit to sales better is the operational

efficiency of the concern.

Net profit ratio = N.P / net sales * 100

(Year 2010-2011) = 95589988.13/4212526565.03*100

= 2.269%

(Year 2009-2010) = 49440062/3540722900*100

= 1.410 %

5. Return on capital employed - It is also return on investment or rate of

return.

It indicates the percentage of return on the total capital employed in the

business.

It measures the profit, which a firm earns on investing a unit of capital the

return on

Capital expresses all efficiencies or inefficiencies of a business.

 Return on capital employed = PBIT / capital employed * 100

(Year 2010-2011) = 200520420.06 / 969095600.45*100

= 20.691%

(Year 2009-2010) = 123933397/776208704*100

= 15.966%

Capital employed = total assets current liabilities

(Year 2010-2011) = 1329257685.72 - 360162085.27

= 969095600.45

(Year 2009-2010) = 973913721- 197705017

= 776208704

(Year 2010-2011) Total assets = fixed assets + current assets + investment

= 451232774.11 + 863953120.61 + 14071791.00

= 1329257685.72

(Year 2009-2010) =351748239 + 617977315 + 4188167

= 973913721
 (Year 2010-2011) PBIT = PBT + interest

= 127657360.25 + 72863059.81

= 200520420.06

(Year 2009-2010) = 76614526 + 47318871

= 123933397

6. Profit After tax to sales The ratio expressed the relationship between

profits

After tax and sales.

Profit after tax to sale = PBT / sale * 100

(Year 2010-2011) = 127657360.25 / 4212526565.03*100

= 3.030

(Year 2009-2010) = 76614526/3540722900*100

=2.163
Activity Ratio

Stock turnover ratio: stock turnover is also known as inventory ratio

merchandise turnover ratio or stock velocity ratio. This ratio measures the

number of times the stock turns, flows or rotates in an accounting period

compared to the sales effected during the that period. It indicates the

frequency of inventory replacement, i.e. the number of times the inventory

has been sold and replaced during the given period of time.

Stock turnover ratio = cost of goods sold / average stock

(Year 2010-2011) =3858629841.63/790749120.8/2

= 3858629841.63/395374560.4

= 9.759

(Year 2009-2010) = 3235137007/561860002.95/2

= 3235137007/280930001.47

= 11.516

Debtors turnover ratio: It is also known as turnover of debtors ratio and

accounts receivable turnover ratio. This ratio attempts to measure the

collectability of debtors and other account receivables. It shows the rate at

which the trade debts are being collected. A firm sells goods on credit and
 cash basis. Debtors are expected to be converted into cash over a short

period and thus, included in current assets. Financial analysis employee two

ratios to judge the quality or liquidity of debtors: Debtors turnover and

average collection period. It measures the number of times the receivable

rotate in a year in terms of sales.

Debtors turnover ratio = sales / average receivable

(Year 2010-2011) = 4212526565.03/98300928.1105

= 42.853

Average receivable = 196601856.21/2

(Year 2009-2010) = 3540722900/146364114.69

= 24.191

Average receivable = 292728229.38/2

= 146364114.69

Working capital turnover ratio- It reveals the efficiency with which

Working capital has been utilized by a concern.

Working capital turnover ratio = cost of goods sold / working capital

(Year 2010-2011) = 3858629841.63/503791035.34

= 7.659 times
 (Year 2009-2010) = 464037007/420272298

=1.104 times

Working capital = current assets current liabilities

(Year 2010-2011) = 863953120.61 - 360162085.27

= 503791035.34

(Year 2009-2010) = 617977315 - 197705017

= 420272298

Capital turnover ratio sometimes the efficiency and effectiveness of the

operation is judged by comparing the sales with the amount of capital

invested in the business. Capital employed is either equal to shareholders

fund plus long-term loans or equal to total assets minus current liabilities.

This is calculated by establishing the relationship between sales and capital

employed.

Capital turnover = sale / capital employed

(Year 2010-2011) = 4212526565.03 / 969095600.45

= 4.346 times

(Year 2009-2010) = 3540722900 / 776208704

= 4.561 times
 Capital employed = total assets current liabilities

(Year 2010-2011) = 1329257685.72 - 360162085.27

= 969095600.45

(Year 2009-2010) = 973913721-197705017

= 776208704

Assets turnover ratio:- Assets turnover ratio shows the relationship

between total assets and sales of concern.

Assets turnover ratio = Net Sales/Total assets

(Year 2010-2011) = 4212526565.03/1329257685.72

= 3.169 times

(Year 2009-2010) = 3540722900 / 973913721

= 3.635 times
 Total assets = fixed assets + current assets + investment

(Year 2010-2011) = 451232774.11 + 863953120.61 + 14071791.00

= 1329257685.72

(Year 2009-2010) =351748239 + 617977315 + 4188167

= 973913721

I. Current assets turnover ratio - Current assets turnover attempts to measures

the utilization and effectiveness of the uses of current assets or state over

investment or under investment in current assets. It may be pointed out that over

and under investment in current assets may indirectly affect the solvency of the

concern. Its the ratio between costs of sales and currents assets.

Current assets turnover = sales / current asset

(Year 2010-2011) = 4212526565.03/863953120.61

= 4.875 times

(Year 2009-2010) = 3540722900/617977315

= 5.729 times

II. Fixed assets turnover ratio this ratio assumes added significance in the case

of manufacturing concern an increase in this ratio is the indicator of efficiency in

work-performance and decrease in this ratio speaks of unwise and improper

investment in fixed assets.

Fixed assets turnover ratio = Net sales / Fixed assets

(Year 2010-2011) = 4212526565.03/451232774.11

= 9.335 times

(Year 2009-2010) = 3540722900/351748239

= 10.066 times
Financial ratio

Currents Ratio- The ratio of current assets to current liability is called

current ratio. This ratio is an indicator of the firms commitment to meet its

short-term liabilities. Current assets include cash and other assets convertible

into cash during the operating cycle of the business. Current liabilities mean

liabilities payable within a years time. An idle current ratio is 2:1, the ratio

of 2 is considered as a safe margin of solvency. A very high current ratio

would indicate the less efficient use of funds while a poor current ratio is a

danger signal to the management.

Current ratio = current assets / current liabilities

(Year 2010-2011) = 863953120.61/ 360162085.27

= 2.398: 1

(Year 2009-2010) =617977315/197705017

=3.125: 1

Current Assets = Stock + Sundry debtors + cash + loan &advances

 (Year 2010-2011) = 559090945.36 +196601856.21 + 9462985.67 +

98797333.37

= 863953120.61

(Year 2009-2010) = 231658175 + 292728229 +16220352 + 77370559

= 6617977315

Current liabilities = Creditors + Current Liabilities for Others +

Provisions

(Year 2010-2011) = 152223025.00 + 174561631.27+ 33377429.00

= 360162085.27

(Year 2009-2010) = 68151089+101543687 +28010241

= 197705017

Quick ratio This ratio is also called acid test ratio and liquidity ratio.

This ratio is ascertained by comparing the liquid assets to current liability.

The idle ratio is 1. This ratio is also an indicator of short-term solvency of

 the company. A comparison of current ratio to quick ratio will indicate the

inventory hold-ups. For example, if two units have same current ratio but

different liquidity ratio, it indicates over stocking by the concern having low

liquidity ratio as compared to the concern, which has a higher liquidity ratio.

Quick ratio = liquid assets / current liabilities

(Year 2010-2011) = 304862175.25 / 360162085.27

= 0.846: 1

(Year 2009-2010) = 386319140 /197705017

= 1.954: 1

Liquid assets = Current assets (inventory + prepaid exp.)

(Year 2010-2011) = 863953120.61- (559090945.36 + 0)

= 304862175.25

(Year 2009-2010) = 617977315 (231658175 + 0)

= 386319140

Cash ratio This is the ratio between cash and balances to current liabilities.

As such

Cash ratio = Cash + bank / current liabilities

(Year 2010-2011) = 9454306.00 + 8679.67/360162085.27

 = 9462985.67/360162085.27

= 0.026: 1

(Year 2009-2010) = 16220352/197705017

=0.082:1

Solvency ratio This ratio highlights upon the long-term solvency of the

concerned and is ascertained by the formula

Solvency ratio = Total assets / Total liabilities

(Year 2010-2011) = 1329257685.72/979021639.01

= 1.358

(Year 2009-2010) = 973913721/724150419.01

= 1.345

Debt equity ratio - The debt equity ratio is determined to ascertain the

soundness of long-term financial policies of the company. It is also known

as external and internal equity ratio. This ratio establishes the relationship

between the internal equities and external equities. If this ratio is 1:1, the

long-term financial position of any business concern is considered

satisfactory. If this ratio is lower than 1:1, it means that outside liabilities are

lower than shareholders fund and in this case financial position will be

considered more good and satisfactory.

Debt equity ratio = long term debt / shareholders funds

(Year 2010-2011) = 618712496.74/336806671.63

=1.837

(Year 2009-2010) = 470403900.01/250024302.45

=1.881
a)Table form

b)Graphical

Profitability ratio. 2013-2014 2015-2016

Operating profit ratio 11.16% 11.11%

Operating ratio 0.95% 0.95%

Gross profit ratio 8.63% 8.40%

Net profit ratio 1.41% 2.27%

Return on capital employed 15.97% 20.69%

Profit After tax to sales 2.16% 3.03%

Activity Ratio 2013-2014 2015-2016

Stock turnover ratio 11.516 9.759

Debtors turnover ratio 24.191 42.853

 Working capital turnover ratio 1.104 7.659

Capital turnover ratio 4.561 4.346

Assets turnover ratio 3.635 3.169

I. Current assets turnover ratio 5.729 4.875

II. Fixed assets turnover ratio 10.066 9.335

Financial ratio 2013-2014 2015-2016

Currents Ratio 3.125 2.398

Quick ratio 1.954 0.846

Cash ratio 0.082 0.026

Solvency ratio 1.345 1.358

Debt equity ratio 1.881 1.837

Findings of the study

Based on the above financial analysis it is clear that Quick ratio of B.L.

Agro oils ltd is more than 1 i.e.1.594 in 2009-2010 and less than in.846 in

2015-2016.

Debt-equity ratio of B.L. Agro oils ltd is very less which means that B.L.

Agro oils ltd has not been aggressive in financial its growth with debt. The

company has better support from the shareholders.

In B.L. Agro oils ltd collection period is very quick i.e. 9days.

During my visit I observed that there is no more wastage of raw material ,

Inventory management in B.L. Agro oils ltd is effective & efficient.

Through the financial analysis it is find that the return on capital employed

is 20.691%

To meet the challenges of growing demands, B.L. Agro is preparing for

capacity enhancement and expansion of manufacturing capabilities.

 The company has an ambitious plan for setting up an Integrated Oil

Complex for which it has already identified the locations. With

comprehensive facilities available within this complex, the company will be

able to provide integrated solutions and enhance its competitive pricing

power.

In addition to the existing facilities, the proposed complex will include

Solvent Extraction Plant, Rice Bran & Sunflower Refinery and Mustard

Crushing Facilities.

To make its procurement processes smooth and cost effective B.L. Agro oils

is also contemplating setting up of Rack Facilities connecting its Oil

Complex to various Port.

With the addition of Mustard Crushing Facilities, the company plans to

consolidate as well as increase its market share in the mustard

segment.

The company is working to expand its product and brand portfolio through

extension of the existing lines as well as through diversification into other

edible food items.

Through ensuring a substantial market share in the mustard oil as well as

other segments, B.L. Agro aims to obtain better pricing power.

 Expansion in geographic reach and newer markets - The company has

already extended its distribution network covering almost entire North India

and is now poised to further expand in newer markets.

The company has an Excellent Track Record With the Management

experience of 50 years, B.L. Agro has displayed a consistent and exemplary

growth right since its inception.

B.L. Agro Oils Ltd. possesses India's largest mustard oil packaging facilities.

In-house QC Lab Best equipped & biggest in UP. The company has an in-

house Quality Control Laboratory with a Gas Chromatography that ensures

purity, ideal blends and PFA certified quality of all B.L. Agro products.

The company's lab is the biggest and best equipped in the entire state of

Uttar Pradesh.

The processes and facilities at the B.L. Agro plant match the highest

standards The Double Filter Process for Mustard Oil ensures that only the

purest product is dispatched from the B.L. Agro plant.

The Refining is undertaken by Chemical Refining process through which

flows out the purest form of cooking oil that beats the best known brands on

transparency tests. Moreover, the oil is processed using the Nitrogen

Blanketing process that reduces the loss of nutritional values and ensures

Maximum Nutrition Retention (MNR) in the Refined Oils.

 The financial position of B.L.Agro is much better because company earns a

good profit in 2009-2010 gross profit ratio is 8.63% and in 2010-2011 it is

8.40% .

The net profit ratio is find out of B.L. agro oils ltd in 2009-2010 is 1.421%

and in 2010-2011 it is 2.27%.

BIBLIOGRAPHY

BOOKS/MAGAZINES:

Marketing Management by Philip Kotler

Marketing Management by Shrma,Kothari

Economic Times.

Data gathered from Broachers.

Business World

WEBSITES:

http://www.google.com

http://www.blagro.org