Professional Documents
Culture Documents
EXECUTIVE SUMMARY
KMF, which began processing milk in 1965 with an initial capacity of 50,000 liters per day, was inaugurated on 23.1.1965 by late Sri.Lal Bahadur shastriji, the honorable Prime Minister India. Later the capacity was enhanced to 3.50lakh liters per day. Steady demand for quality milk, led the organization to break ground on its newest Mega Dairy, and commissioned during the year 2000, which is a modern & fully automated dairy plant with a capacity of 6 lakh liters per day, is expandable to 10 lakh liters per day. The operation in the dairy are fully computerized and each operation is atomized with controls for standardization, temperature and flow control, pasteurization system. This system gathers an distributes that for production, maintenance, break down, quality along with utility and water supply system measurements for analysis and monitoring. The union KMF in Dharwad was established in the year 1986 under the operation flood 2 and 3. the union also took over in 1988 the milk products factory with a drying capacity 2.10 lakh liters per day, earlier established by Karnataka milk products limited (Govt undertaking) The various private brands have been trying to give a really tough a Competition by giving the agents high trade margins. Where the organization is playing the important role in developing the economic aviability of the villages. The union is selling different milk variants such as toned, double toned full cream and homogenized cow milk. Other products produced and sold are curds, butter, ghee, pedha, paneer flavored milk and butter milk.
OBJECTIVES:The objectives of the study were: To examine the establishment, organization and operational dimensions of the D.M.U. To know the liquidity position of the firm To examine the management performance in components of ratio analysis. To know the how actually finance dept functions. To test firm's efficiency in utilization of its assets and resources.
INDUSTRY PROFILE
COMPANY PROFILE
ESTABLISHMENT :The DMU is Co-operative society among the 13th establishment, under KMF. It is located in a spacious of 25 acres of land, located in Lukumanhalli Industrial Area.
NATURE OF BUSINESS CARRIED:Procuring and marketing of milk production and sale of milk products.
VISION OF THE DMU: Cleanliness Total quality maintenance Discipline Co-operation Transparency
DMU MISSION STATEMENT:DMU are committed to offering quality products that provide best value for money.
QUALITY POLICY OF DMU:To ensure pure, hygienic milk and milk products through continuous improvement of quality standards.
OWNERSHIP PATTERN :- DMU is one of the unit of the Kmf and runs under
the Co-operative Institutions such as District Co-operative society.(DCS) National Dairy Development Board
HISTORY OF DMU:-
OBJECTIVES OF DMU: Providing hygienic and good quality of milk to the consumers. To build the economic strength of the milk products in villages. To eliminate middlemens in the business so that the milk products receive there appropriate share of bread. To educate the villagers about the adulteration of milk and its harmful effect on the body. To see that every citizen becomes healthy by consuming good quality of milk.
Capacity
Kumta 10,000 LPD The milk in Bulk is sent packing & Distribution at Karwar which suppliers the need of Karwar, Gokarna, Honnavar, Bhatkal, Murdeshwar & Goa. Collection of Milk 95,000 LPD Sale of Milk 85,000 LPD Dharwad, Haveri, Gadag, Uttar Kannada District Basavarj Arabgonnda K. Ramchandra Bhatta Elected Members - 8 Ex-Officers -5 -3 Govt. 305 Workers Nandini
Presence value of Activity Area of Operation CHAIRMAN Managing director Board of Directors
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ORGANIZATION STRUCTURE
President
Director (Govt)
Director (Govt)
Director (DCS)
Director (NDDB)
Director (Society) 12
Marketing Dept
Administration Dept
Finance Dept
Quality Control
Purchase Dept
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DEPARTMENTATION
PRODUCTION AND PROCESS
PRODUCTION & PROCESS DEPARTMENT :Processes and methods employed in transformation of tangible inputs like raw materials, semi finished goods or subassemblies and intangible inputs like ideas, information, and services.
RAW MATERIALS PROCESS FINISHED
Production is converting raw materials to finished products. It involves a number of factors to be able to produce the goods and services that cater to our needs. Production KLEs college of Business Administration 14
PROCESS OF PRODUCTION:
Production process has the following work flow model DCS
Sample Testing
Chilling
Storing
Pasteurization 15
Storing
Homogenization
Separation
Packing
Dispatching
Production department is the main department where in the raw material is converted into finished products. The quality of the product is also dependent on the production procedure. The department is well equipped and has various types of highly sophisticated machines imported from Sweden and Denmark. Once the milk is received from the P & I department it is first weighed with the help of weighing bowl. The FAT and SNF content of each sample of milk is accessed, the cow and buffalos milk are separately received and sent to the production section trough two different stainless steel pipes. Later the raw milk is passed through plate chiller of variable capacity where it is cooled up to 4-5 degrees Celsius. This coaled raw material is further stored in a silo of 30,000 liters capacity.
THE PRODUCTION PROCEDURE AT DHAMUL IS DONE UNDER DIFFERENT STAGES. THE STAGES ARE AS FOLLOWS:
1. COLLECTION OF MILK: In this stage the milk is brought from various district co-operative societies (DSC) to the main dairy in a can of 40 liters capacity in tempos or in any other vehicles. The cans marked with two differentiate between the cow and the buffalo milk. Once the KLEs college of Business Administration 16
7.
PURPOSE OF PASTEURIZATION:-
Pasteurization is a process where milk is heated to high temperature and cooled instantly, to destroy any microorganism. The pasteurized milk will stored in Pasteurized milk thermal tanks and then sent to pre-packing section. Packing is done in 500ml and 1000ml and stored in cold storage at 7 degree. 8. PACKING: Once the pasteurization closed is conducted the next step is to pack the milk. The packing is done by the machine of fluid goods and were as it is done manually in case of solid goods like pedha. The machine packs the raw milk in two sizes that is 500ml and 1000ml pouches. These machines automatic with a capacity of packing 10000 to 14000 pouches per hour. The speed can be even altered according to suitability .These machines are used to pack all different types of milk in plastic bags. These plastics are polythene bags required for packing milk is bought from Bangalore. 9. STORAGE: KLEs college of Business Administration 18
TONED MILK Karnatakas the most favorite milk. Nandini toned fresh and pure milk containing 3.1% FAT and 8.5% SNF, Available in 500ml and 1 liter packs.
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BUTTER Rich, smooth and delicious. Nandini butter is made up of fresh pasteurized cream, rich taste, smooth texture and the rich purity of cow's milk helps to makes any preparation a delicious treat. Available in 100 Gms (salted), 200 Gms and 500gms cartons both salted and unsalted.
GHEE A state of purity, Nandini ghee made from pure butter. It is fresh and pure with a delicious flavor, hygienically manufactured and packed in a special pack to retain the goodness of pure ghee. Shelf life 6 months at surrounding temperature. It is available in 200ml, 500 ml, and 1000 ml sachets. 5 liters tin and 15 kgs tins.
SHUBHAM Buffalo's milk, is 100% pure processed and packed hygienically, this milk has 4.1%fat and 9%snf. Available in both 500ml and l liters and also Available in 5 liters packs For marriages, and other functions.
FULL CREAM MILK Full cream, milk containing 6% fat And 9% (SNF). Rich, creamier tastier milk, ideal for preparing home-made sweet & savories. Available in 500ml and l liters packs.
PEDHA No matter what you are collaborating made from pure milk, Nandini pedha KLEs college of Business Administration 21
PANEER If there is excess of milk, then Paneer is been made. The milk is heated to 900 for 15-20 minutes. Glacial acetic acid is added to milk, and then milk is Strained through fine muslin cloth. The solid portion is retained and is put in water and then it is put in chilled water and left overnight. Later it is packed and stored in cold storage.
BADAM POWDER A delicious beverage with ahot or cold milk. It can be used for kheer, kesaribath, Desserts or icecream. Its the goodness of badam mixed with almond edible starch, saffron, skimmed milk powder and cane sugar to give us the ideal badam delight.
MILK POWDER Enjoy the taste of pure milk, Skimmed KLEs college of Business Administration 22
KHOVA Khova is prepared out of fresh milk. It is an ideal base to prepare delicious sweets at home like pedha, Gulab Jamoon, Kalakand, Burfi, gajar Halwa and the like. Nandini Khova gives you a high nutritive value with large quantities of muscle building proteins, bone forming minerals and energy giving fat and lactose.
CONCEPT OF UNIT (ULTRA HIGH TEMP) MILK MARKETING: In order to meet the requirement of different segment of consumers and their demands for more convenience, KMF introduced Tetra- fino packing of milk with variants in the market. During the process of UHT, milk is subjected to temperature of 137 degree Celsius grade for 4 seconds and cooled instantly which remains all the vitamins and nutritional value of milk providing 0 bacteria product which needs no boiling. The milk is packed in 6 layer tamper proofed tetra-pack packaging which prevents the milk from spoiling due to the sunlight, bacteria, germs and oxygen. Thus ensuring freshness and purity of milk is retained when packed. The milk can be stored without refrigeration for 60 days in fino-packing and 120 days in brik packaging. PROCESS: KLEs college of Business Administration 23
REFRIGERATION: This is done to maintain the initial quality and freshness of the milk. It stops or limits the bacterial growth and prevents changes in the constituents of milk for processing. In DMU there are advance machines for the purpose of refrigeration. These machines help in cooling the milk which avoids spoilage and helps in further processing of milk. BOILER: The milk is heat treated or pasteurized in DMU to kill any pathogenic microorganism that may be present without affecting its nutritional quality. It kills germs and helps in storing the milk for long hours. These are advanced machines which helps in the process of boiling the milk .This helps in increasing the shelf-life of milk. ELECTRICAL: There is a separate electrical room which handles the operation and maintenance of the machines.
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FINANCE
FINANCE DEPARTMENT: DEFINITION: finance is the process of channeling funds from savers to users in the form of credit, loans or invested capital through agencies including commercial bank, Savings and loan associations and such non bank organization as credit unions and investment companies. MEANING: Finance is the science of funds management. The general areas of finance are business finance, personal finance and public finance. Finance includes saving money and often includes lending money. The field of finance deals with the concepts of time, money, risk and how they are interrelated. It also deals with how money is spent and budgeted. Finance works most basically through individual and business organizations. KLEs college of Business Administration 25
DEPARTMENT STRUCTURE:
Deputy Manager
Assistant Manager
Assistant Account
DUTIES AND RESPONSIBILITES OF DEPUTY MANAGER: Overall control of finance and accounts in respect of all units. Budgeting, capital and revenue, preparation and getting approval of Board. Monitoring the audit of accounts periodically and settlement of objections.
DUTIES AND RESPONSIBILITES OF ACCOUNT OFFICER: Prepare profit and loss statements and monthly closing and cost accounting reports. Establish, maintain and coordinate the implementation of accounting and accounting procedures.
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Purchase Department It is a sub-department, which comes under Finance Department. The main work of this department is to purchase various materials required by different department. After ascertaining the stock position by stores department and indent is sent by different department duly approved by the managing director. This department act to purchase materials. It also maintain records of all the suppliers calls for tenders, quotations e.t.c.
DEPARTMENT STRUCTURE
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Purchase Officer
Purchase Superintendent
Helpers
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ADMINISTRATION /PERSONNEL
30
people, as well as a description of the work of specialists. Personnel managers advise on formulate and implement personnel policies such as recruitment, conditions of employment, performance appraisal, training, industrial relations and health and safety.
DUTIES AND RESPONSIBILITIES OF CLERKS: Provides prompt, efficient and friendly customer service. Answers the telephone promptly when called upon and provides friendly service to the customer who calls. checks invoice against delivered product when asked. Reports on work when scheduled and on time.
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PROCESS: In DMU the administration department controls overall function of the organization. The organization consists of the following three levels: The managing level which includes managing director, deputy manager and assistance manager. Supervisory level which includes the technical officers and supervisor. Worker level which includes helpers.
THE DEPARTMENT HANDLES VARIOUS AREAS LIKE: CANTEEN: there is a canteen in the premises which provides lunch, tea etc .The Canteen is handled by the canteen in charge. TIME OFFICE: This department records the working hours of the employees. The time machine shows the entry and exit time of each employee. Each employee is given a punch card, whenever an employee enters the premises has to punch the card on the time machine and do the same before leaving the premises. Based on this attendance, the canteen bills are charged, wages are fixed ad deduction are made. 32
STAFFING: Employees
working in
re placed in the
department as per their specializations. RECRUTIMENT AND SELECTION: Due to registration, termination, retirement and transfers, the need for selection and recruitment arises. The HR department arranges for the recruitment. TRAINING: Most of the training is given to the employees here are on- the job training and off-the job training. If any new technology has been introduced outside, they are sent for training which is then implemented within their organization. There are various training programmes such as procurement and technical input training (NDDB), clean milk production training, maintenance of record and auditing etc. SALARIES: The salary is based on the Govt pay and also based on the post of an employee in the organization. OTHER BENEFITS: Free facilities like food, electricity and stay quarters are provided to the security department. Festival advance, canteen subsidy, medical allowance are also provided to the employees of the organization. SEEURITY:- Dharwad Milk occupies 25 acres of land the whole premise is been guarded by the security personnel. The security people work in three Shifts. All the Vehicles are checked before entering the premise. The department also maintains separate register like Attendance register e.t.c
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DEPARTMENT STRUCTURE
Deputy Manager
Cooks
Helpers
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PROCUREMENT
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Department structure
Manager
Procurement wing
Deputy Manager
Deputy Manager
Veterinary Officer
Assistant Manager
Clerk
Clerk
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FUNCTIONS OF THE DEPARTMENT: To organize, supervise and operate village dairy co-operative societies. To procure more milk from village societies. To provide veterinary services to keep up the good health of the cattle through regular health camp. To provide emergency services round the clock. To provide first aid, vaccination, infertility camp, fodders To facilitate training programs regarding management of cattle. To ensure proper and sufficient supply of fodder to the cattle.
PROCESS: The union carries on procurement by settling up co-operative societies at villages level. Later milk is collected in the chilling center. Milk collected from the milk center, is first tested. The quality and quantity of milk is brought and checked by a supervisor. Procurement is done twice a day and payment is made on the basis of percentage of the content and SNF in the milk. After the milk is sent to union else chilling center, which ever is the nearest. At the chilling center, milk is chilled up to 4 degree Celsius. Later this milk is sent to union in insulated tankers for further processing. The main function of this department is to procure milk from different areas throughout the year. The department also provides facilities that help in enhancing more productivity. It is also called as the input department because it also handles the veterinary facilities. It provides the nutritious food to the cattle. It provides cattle food for cattle to get quality milk.
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MARKETING
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MARKETING DEPARTMENT:
DEFINITION: Marketing is defined by the American Marketing association (AMA) as the activity , set of institutions and process for creating , communicating , delivering and exchanging offerings that value for customers , clients , partners and society at large. MEANING: It is an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from Customers in return. Marketing is used to create the customer, to keep he customer and satisfy the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management. DUTIES AND RESPONSIBILITIES OF MANAGER OF MARKETING DEVELOPMENT: Monitoring sale of milk cards, distribution of milk. Monitoring sale of products in metro and Upcountry. Sales account reconciliation and dues collection. Handling customer complaints. Market supervision.
DUTIES
AND
RESPONSIBILITIES
OF
MARKETING
OFFICER
OF
MARKETING DEPARTMENT: Set goals for market share and growth. Make decisions regarding products such as choosing labels or packing. Work on developing new products. Manage distribution channels such as shops and wholesales. KLEs college of Business Administration 40
FUNCTIONS OF MARKETING DEPARTMENT: Issuing in track receiving application for opening new parlors and agencies. Keeping in track of the timing of vehicles and timely supply of milk. Collection of cash from agents and depositing the same to the milk. Finding new areas where there is demand for milk. Attending complaints from the agents. Meeting agents to solve their problem.
PROCESS: The marketing department is the nearest of any organization. In todays highly complex and competitive world, marketing is the tool, which has to be derived properly to sell the product. Marketing is the more of a complex job and it requires a great deal of the knowledge about the market then its competitors. The marketing management requires planning, analyzing, implementing and controlling of programmes designing to create, build and maintain beneficial exchange with target buyers for the purpose of achieving the organization objectives. DMU has developed good customer relationship. It has placed the image of its product in the minds of its customers. It has done so by various promotions through Quality Awareness programmes, Social awareness programmes Newspapers KLEs college of Business Administration 41
The DMU has various types of business which help them reach their customers. These businesses are setup in different areas to reach the various customers scattered geographically. The types of business are: Agency Transporter cum distributor (TCD) Milk parlor. All time milk center (ATM) Day counters.
The DMU satisfies its customers by providing quality milk. It responses quickly to the customer problems and they look forward to improving their quality and take care of the customer problems.
Department structure
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Marketing Manager
Deputy Manager
Assistant Manager
Marketing Officer
Marketing Superintendent
Marketing Accountants
Marketing Supervisor
Marketing Clerks
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QUALITY CONTROL
44
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THERE ARE VARIOUS TESTS DONE IN THIS INDUSTRY SUCH AS: Clot on boiling test is done to test the bacteria content in the milk. Acidity test is done to test the extent of acidity. Alcohol test is done to check the heat of stability of milk. The density or the richness of milk is tested using a device called Lactometer. The percentage of FAT & SNF is determined through FAT & SNF tests,
To protect customers from assurance, adulteration and short weight, the Govt has enacted laws such as Food adulteration control Act, Weight and Measures act, customers protection Act etc. DMU has provided signs of reliability for their product: Milk supplied by dairies are registered under milk and milk products order(MMPO act) Look for MMPO license number on milk packet. Milk supplied by Co-operatives is recognized by national dairy development board (NDDB) bearing the national Co-operative Mnemonic symbol, a sign of freshness. The milk grade, quality and procurement of milk, all these decisions are taken by the board.
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SECURITY
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SECURITY
DEFINITION: It is degree of protection against danger, loss and criminals. MEANING: it is the protection of a person, property or organization from an attack. It is a department responsible for the security of the institutions property and workers. DUTIES AND RESPONSIBILITIES OF SECURITY OFFICER: Loading and unloading of milk and milk products. The whole premises of DMU are taken care by the security department. All the vehicles are checked entering that premises. PROCESS: The security department takes care of entire premises of DMU. As soon as the milk s brought they check the vehicles and then milk is taken for testing and then processing. The transportation and marketing department are linked to security department, without which is impossible.
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RATIO ANALYSIS
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decisions on the basis of the accounting data. ALL THE ACCOUNTING RATIOS HAVE BEEN BROADLY CLASSIFIED INTO THE FOLLOWING CATEGORIES: Profitability ratios Coverage ratios Turnover ratios Financial ratios Leverage ratios ADVANTAGES OF RATIO ANALYSIS Accounting ratios reveal the financial position of a concern. Accounting ratios help to have an Idea of the working of a concern. They are use for purpose of forecasting. The ratios are used to identify the account balances to which detailed audit procedures are required LIMITATIONS OF THE RATIO ANALYSIS If the ratios are based on incorrect accounting data, the results obtained will be false. Changes in price levels make the comparison for various years difficult. The ratios have no relevance if they are worked from insignificant and unrelated figures.
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PROFITABILITY RATIOS:-
companies with regard to the efficient and effective utilization of resources at their command. It indicates the effectiveness of the decisions taken by the management from time to time. 1).GROSS PROFIT RATIO: This informs us the gross margin on trading. The following formula is applied for calculation. Gross profit ratio= Gross profit Net sales KLEs college of Business Administration 51 * 100
G s p fitr t (% ro s ro a io )
20.00% 15.00% 10.00% 5.00% 0.00% 2007-2008 2008-2009 2009-2010 G sprofit ra (% ros tio )
Interpretation:
From the above graph it can be analyzed that gross profit ratio. The all Ratios are in increasing trend i.e. during the year 2007-2008 14.06%, during the year 2008-2009 18.57%, during the year 2009-2010 19.24%. So we conclude Organizations economic condition is good. 2). NET PROFIT RATIO: This ratio explains per rupee profit generating capacity of sales. This ratio is very useful to the proprietor and the prospective investors because it explains the overall profitability of the concern. This is the ratio of net profit after tax to the net sales. The following formula is applicable for calculation is Net profit Ratio = Net profit after tax * 100
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Netprofit Ratio(% )
4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2007-2008 2008-2009 2009-2010
Interpretation:
.
From the above table, it can be analyzed that net profit after taxes and net sales have shown from 2007-2008 i.e. 3.98%, and net profit during 20082009 is decreased i.e. 1.54% and in 2009-2010 the net profit is being increased i.e.3.17%. the net profit is being increased in 2010 & so we can conclude that
the organization is being improve 3). Operating ratio: The ratio indicates the proportion that the cost of sales bears to net sales. The following formula is applied for calculation. Operating ratio=Cost of goods sold + Operating expenses * 100 Net sales
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Operatingratio (% )
104.00% 102.00% 100.00% 98.00% 96.00% 94.00% 2007-2008 2008-2009 2009-2010 Operatingratio (% )
Interpretation: From the above graph it can be analyzed that the operating ratio is in the decreasing trend i.e. during the year 2007-2008 103.98%, 2008-2009 99.56%, 2009-2010 97.98%. The cost has been reduced year to year, it shows a forward trend. 4). Operating profit ratio: The ratio establishes the relation between the operating profit and the sales. The ratio is also known as EBIDTA it stands for Earnings before
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Operating profit ratio=Gross profit Operating expenses * 100 Net sales OR Operating profit ratio = 100 Operating ratio 100 Operating ratio 100 - 103.98% 100 - 99.56% 100 97.98% Operating profit ratio (%) -3.98% 0.44% 2.02%
Operatingprofitratio (% )
3.00% 2.00% 1.00% 0.00% -1.00% 2007-2008 2008-2009 2009-2010 -2.00% -3.00% -4.00% Operatingprofit ratio (% )
Interpretation:
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5).EXPENSES RATIO:- This ratio is calculated to ascertain the relationship that exists between the operating expenses and the volume of sales. The following are the different expenses ratios. 1. Administrative expenses ratio 2. Selling & distribution expenses ratio a). Administrative Expenses Ratio= Administrative expenses * 100 Net sales Administrative Year 2007-2008 2008-2009 2009-2010 expenses 67,67,612.41 1,37,34,829.60 1,74,59,745.59 51,18,17,606.31 60,79,62,393.67 73,76,99,820.07 Net sales Administrative expenses ratio (%) 1.32 2.25 2.36
Adm inistrativeexpensesratio (% )
2.5 2 1.5 1 0.5 0 2007-2008 2008-2009 2009-2010 Adm inistrative expenses ratio (% )
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b). Selling & distribution expenses ratio = Selling & distribution expenses *100 Net sales
Selling Year 2007-2008 2008-2009 2009-2010 distribution expenses 2,08,33,899.91 2,56,47,390.18 3,26,60,685.33
&
6). Return on total assets ratio : This ratio is calculated to measure the profit after tax against to ascertain whether the assets are being utilised property in the business or not. The following formula is applied for the calculation Return on total assets ratio = Net profit after tax * 100 Total assets Net profit after tax 2,03,66,215..62 93,44,962.69 Total assets 24,45,60,618.74 22,16,99,915.71 Return on total
Interpretation:
From the above graph it can be analyzed that the Return on Total Assets ratio in the year 2007-2008 Return on Total Assets ratio is 8.32%, in the year 2008-2009 Return on Total Assets ratio is decreased 4.25%, but during 2009-2010 Return on Total Assets ratio is 9.63%. So we can conclude that the organization is being improved.
TURN OVER RATIOS: TURN OVER RATIOS: - The turn over ratio is also known as performance ratio or activity ratios. These ratios are used to judge as to how well the facilities at the disposal of the concern are being used to measure the effectiveness with which a concern uses the resources at its disposal. In short these ratios will indicate the position and effectiveness of usage of assets.
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1). CAPITAL TURNOVER RATIO:- This ratio shows the efficiency of capital employed by the concern in its business by computing the number of times capital employed is turnaround in a stated period. The following formula is applied Capital Turnover ratio = Net Sales Capital employed
Turnover
Interpretation:
From the above table we can see that the Capital Turnover ratio for the year 2007-2008
the ratio is 4.99, and increased to 7.48 in the year 2008-2009, but again it has been decreased i.e. 4.51 in the year 2009-2010. The lower Capital turn over ratio indicates that the sufficient sales have being not made by the concern.
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F e A s t T rnO e R tio ix d s e s u v r a
8 7 6 5 4 3 2 1 0 2007-2008 2008-2009 2009-2010
Interpretation:
From the above table, it can be analyzed that net sales and net fixed assets showing a positive ratio of fixed assets year by year i.e. in the year 2007-2008 the ratio is 5.16, and
increased to 6.14 & in the year 2008-2009 again it has been increased 7.90 in the year 2009-2010. The fixed assets are effectively used.
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Interpretation:
From the above table i.e. in the year 2007-2008 the ratio is 2.09, and increased to 2.74 in
the year 2008-2009 again it has been increased 3.04 in the year 2009-2010. The increase in the ratio indicates over trading of the total assets
Profitability ratios
KLEs college of Business Administration 61
2007-2008
2008-2009 18.57%
14.06% Net profit Ratio Operating ratio Operating profit ratio Expenses Ratio Administrative expenses ratio Selling distribution expenses ratio 6 Return on total 8.32% assets ratio 4.25% 9.63% & 4.07% 4.21% 4.42% 1.32% 2.25% 2.36% 3.98% 103.98% -3.98% 1.54% 99.56% 0.44%
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2007-2008
2008-2009
2009-2010
4.99
7.48 6.14
4.51 7.90
2.74
3.04
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ANNEXURE
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Particulars
Opening Stock. Stock-Milk. Stock-Milk Products. Stock-Others. Stock-P/I.
1-Apr-2007 to 31-Mar-2008
2,41,59,120.74 16,89,323.21 57,96,216.50 1,26,39,734.67 40,33,846.36
Particulars
Sales Accounts Sale Cattle Feed. Sale of Milk. Sale of Milk Products. Sale of P & I Sale-Other Sales.
1-Apr-2007 to 31-Mar-2008
51,18,17,606.31 5,88,82,694.00 34,79,10,803.40 9,29,29,637.57 83,43,228.82 37,51,242.52
Purchase Accounts. Purchase of Feed. Purchase of Milk. Purchase of Milk products. Purchase of Others. Purchase of- P/I. Direct-Expenses P & Wing Expenses. Production & Manuf. Expenses. Gross Profit C/o.
38,30,26,045.84 5,44,97,594.00 28,80,34,262.92 14,46,403.51 2,93,11,822.10 97,35,963.31 6,27,99,630.93 93,05,157.35 5,34,94,473.58 7,19,76,931.94 Closing Stock Stock-Milk. Stock-Milk Products. Stock-Others Stock-P/I. 24,29,989.47 1,01,80,180.46 1,39,06,446.75 36,27,506.46 3,01,44,123.14
54,19,61,729.45
Indirect Expenses Administration Expenses. Interest and Bank Expenses. Selling & Distribution Expenses. Staff Expenses. Depreciation A/c. EXP. Relates to previous year Net Profit. Grand total 9,27,75,211.38 67,47,412.41 4,14,394.82 2,08,33,899.91 5,98,30,286.24 49,42,068.00 (-)13,050.00 2,03,66,215.62 11,31,41,427.00 Grand Total Gross B/F. Indirect Incomes Profit
54,19,61,729.45
7,19,76,931.94 4,11,64,495.06 4,11,64,495.06
Other Income.
11,31,41,427.00
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Liabilities
Capital Account Reserves & Surplus. Government Loan. Share Capital-A Class. Share Capital-B Class. Share Suspence Loans (Liability) Secured loans Current Liabilities. Grants O.S.L Other Liabilities Salary Recoveries. Security Deposit A/c Unpaid Salary / Wages A/c. Duties & Taxes. Sundry Creditors AMRUT YOJANE AMRUT YOJANE DCS CONTRIBUTION NDDB LOAN SUSPENCE
1-Apr-2007 to 31-Mar-2008
10,23,64,616.29 5,87,69,799.33 9,60,480.00 2,23,18,800.00 2,00,00,000.00 3,15,536.096 8,84,59,946.00 8,84,59,946.00 53,73,60,596.45 80,95,709.00 48,52,589.60 78,31,523.37 8,33,382.18 88,49,551.82 14,856.40 78,993.03 7,94,4451.05 1,24,60,000.00 36,75,000.00 (-)9,00,000.00
Assets
Fixed Assets Fixed Asset
1-Apr-2007 to 31-Mar-2008
10,41,41,217.12 10,41,41,217.12
45,35,600.00
Current Assets Closing Stock Deposits(Asset) Loans & Advances (Asset) Sundry Debtors Cash-in-Hand Bank Accounts 30,14,41,230.14 50,30,181.50 1,22,31,800.96 1,72,44,418.14 61,4,518.88 2,09,64,421.78
8,62,29,464.40
Profit A/c
&
Grand total
24,45,60,618.74
Grand Total
24,45,60,618.74
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Particulars
Opening Stock. Stock-Milk. Stock-Milk Products. Stock-Others. Stock-P/I.
1-Apr-2008 to 31-Mar-2009
3,01,44,123.14 24,29,989.47 1,01,80,180.46 1,39,06,446.75 36,27,506.46
Particulars
Sales Accounts Sale Cattle Feed. Sale of Milk. Sale of Milk Products. Sale of P & I Sale-Other Sales. Conversion Charges.
1-Apr-2008 to 31-Mar-2009
60,79,62,383.67 6,22,69,593.00 41,09,60,848.98 8,68,73,775.50 82,41,603.80 49,50,542.00 3,22,68,416.50 10,23,493.69 4,88,709.50 9,41,400.70
Purchase Accounts. Purchase of Feed. Purchase of Milk. Purchase of Milk products. Purchase of Others. Purchase of- P/I. Direct-Expenses P & Wing Expenses. Production & Manuf. Expenses. Gross Profit C/o.
42,55,91,913.59 5,76,91,425.00 31,77,98,676.45 56,53,438.02 3,03,78,288.65 1,38,70,085.47 6,65,88,590.56 1,09,64,907.37 5,56,23,683.19 11,29,22,879.38
Closing Stock Stock-Milk. Stock-Milk Products. Stock-Others Stock-P/I. 35,71,249.59 29,99,884.67 1,32,43,061.00 74,70,907.74
2,72,85,123.00
63,52,47,506.67
Indirect Expenses Administration Expenses. Interest and Bank Expenses. Selling & Distribution Expenses. Staff Expenses. Depreciation A/c. Net Profit. 11,02,53,294.21 1,37,34,829.60 (-)4,10,706.76 2,56,47,390.18 6,61,52,818.30 51,28,962.89 93,44,962.69 Gross B/F. Indirect Incomes Profit
63,52,47,506.67
11,29,22,879.38 66,75,377.52 66,75,377.52
Other Income.
BALANCE SHEET
DMU
Liabilities
Capital Account Reserves & Surplus. Government Loan. Share Capital-A Class. Share Capital-B Class. Share Suspence 3,50,31,382.50 9,60,480.00 2,48,79,800.00 2,00,00,000.00 3,85,700.21 Investments Investments 2,24,05,306.00 2,24,05,306.00
1-Apr-2008 to 31-Mar-2009
8,12,57,362.71
Assets
Fixed Assets Fixed Asset
1-Apr-2008 to 31-Mar-2009
10,40,18,933.40 10,40,18,933.40
Loans (Liability) Secured loans Current Liabilities. Grants O.S.L Other Liabilities Salary Recoveries. Security Deposit A/c Unpaid Salary / Wages A/c. Duties & Taxes. Sundry Creditors AMRUT YOJANE AMRUT YOJANE DCS CONTRIBUTION NDDB LOAN SUSPENSE 1,89,97,285.00 5,16,000.00 1,34,10,756.81 1,58,137.58 95,10,418.12 16,021.00 2,24,465.88 1,08,12,931.00 31,28,076.00. 14,84,800.00 (-)1,79,570.00 8,23,63,231.00
8,23,63,231.00 Current Assets 5,80,79,322.00 Closing Stock Deposits(Asset) Loans & Advances (Asset) Sundry Debtors Cash-in-Hand Bank Accounts 2,72,85,123.00 50,24,655.50 1,05,13,010.85 2,20,73,532.20 7,17,926.95 97,55,611.67 7,53,69,860.17
Profit A/c
&
Grand total
24,26,42,783.03
Grand Total
24,26,42,783.03
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DMU
Particulars
Opening Stock. Stock-Milk. Stock-Milk Products. Stock-Others. Stock-P/I. 35,71,249.59 29,99,884.67 1,32,43,081.00 74,70,907.74
1-Apr-2009 to 31-Mar-2010
2,72,85,123.00
Particulars
Sales Accounts Sale Cattle Feed. Sale of Milk. Sale of Milk Products. Sale of P & I Sale-Other Sales. Conversion Charges.
1-Apr-2009 to 31-Mar-2010
73,76,99,820.07 6,63,68,557.00 51,54,32,361.00 8,84,99,438.01 1,84,49,396.21 56,68,604.25 3,92,04,555.60 17,49,483.50 4,72,680.50 18,54,744.00
Purchase Accounts. Purchase of Feed. Purchase of Milk. Purchase of Milk products. Purchase of Others. Purchase of- PA. Direct-Expenses P & Wing Expenses. Production & Manuf. Expenses. Gross Profit C/o.
51,56,87,484.37 6,25,05,810.00 39,18,65,516.89 94,95,952.00 3,54,96,024.97 1,63,24,180.51 7,39,59,039.06 1,86,71,918.90 5,52,87,120.16 14,19,61,925.51
Closing Stock Stock-Milk. Stock-Milk Products. Stock-Others Stock-P/I. 30,93,977.00 44,50,673.00 91,27,954.99 45,21,146.88
2,11,93,751.87
75,88,93,571.94
Indirect Expenses Administration Expenses. Interest and Bank Expenses. Selling & Distribution Expenses. Staff Expenses. Depreciation A/c. Net Profit. 12,70,79,314.70 1,74,59,745.59 (-)1,34,840.43 3,26,60,685.33 7,22,30,771.25 48,62,952.96 2,33,90,681.60 Gross B/F. Indirect Incomes Profit
75,88,93,571.94
14,19,61,925.51 85,08,070.79 85,08,070.79
Other Income.
BALANCE SHEET
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Liabilities
Capital Account Reserves & Surplus. Government Loan. Share Capital-A Class. Share Capital-B Class. Share Suspence Loans (Liability) Current Liabilities. Grants O.S.L Other Liabilities Salary Recoveries. Security Deposit A/c Unpaid Salary / Wages A/c. Duties & Taxes. Sundry Creditors AMRUT YOJANE AMRUT YOJANE DCS CONTRIBUTION
1-Apr-2009 to 31-Mar-2010
16,35,02,294.12 3,30,75,474.31 9,60,480.00 2,79,15,000.00 10,11,42,000.00 4,09,339.91
Assets
Fixed Assets Fixed Asset
1-Apr-2009 to 31-Mar-2010
9,81,98,384.80 9,81,98,384.80
4,59,05,306.00
Current Assets 7,56,55,623.45 2,09,65,685.93 41,00,385.62 2,36,33,343.04 15,24,705.48 1,08,30,179.32 3,94,947.00 5,45,782.00 83,08,177.06 37,50,662.00 16,01,756.00 34,84,865.46 Closing Stock Deposits(Asset) Loans & Advances (Asset) Sundry Debtors Cash-in-Hand Bank Accounts 2,11,93,751.87 50,98,605.50 3,54,17,543.70 2,41,79,465.06 3,42,320.27 1,23,07,405.83
9,85,39,092.23
Profit & Loss A/c Opening Balance Current Period (-)1,99,05,816.14 2,33,90,681.60
Grand total
24,26,42,783.03
Grand Total
24,26,42,783.03
FINDINGS
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The net profit is in fluctuating order i.e, 3.98% and 1.54% & The Operating ratio is in decreasing order i.e, 103.98% and
3.17% .
Return on total assets ratio is in fluctuating order i.e., 8.32% and The Expenses for the following years for the followings ratios are
as follows for Administrative Expenses 1.32%, 2.25%, 2.36%, and for the Selling & distribution expenses ratio the expenses for the following years are as follows 4.07% , 4.21% ,4.42%.
Capital Turnover ratio is in fluctuating order i.e 4.99, and 7.48 Fixed Assets Turn over Ratio is in increasing order i.e, 5.16, and Total Assets turn over ratio is in increasing order i.e, 2.09 and
& 4.51.
2.74 & 3.04. In the year 2007-2008 there would be a net loss but because of the increase other incomes there was net profit.
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There for efforts should be made to improve sales and to control cost, so as to improve its gross profit.
operating expenses, which means there is mismanagement of the expenses. Hence there is a need of better management of manufacturing, administering and selling expenses. The total assets turn over ratio are in increasing order so it indicates Dharwad Milk Union (DMU) should have to appoint skilled and the over trading of total assets.
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BIBILOGRAPHY
KLEs college of Business Administration 73
Kmf guide explanation www.kmf.nandini.coop/html/unions-bangalore.htm dharwarnani@satyam.in Text books I.M. Pandey Financial Management. M.B. Kadkol Financial Accounting.
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