Professional Documents
Culture Documents
Saras Dairy Ajmer
Saras Dairy Ajmer
Submitted to
Center for Entrepreneurship and Small Business Management
SUBMITTEDBY:REENA VERMA
Declaration
I hereby certify that the summer training report on RATIO ANALYSIS OF AJMER DAIRY,
submitted in partial fulfillment for the award of Master of Business Administration (Dual
Specialization) at Center for Entrepreneurship and Small Business Management,
Maharshi Dayanand Saraswati University, Ajmer is an authentic record of work carried
out by me. The matter embodied in this summer training report has not been submitted
for the award of any other degree or diploma.
Date:10-02-2015
REENA VERMA
(Name of the Student)
ACKNOWLEDGEMENT
No assignment can be completed without the help of many individuals. Hence; thanks
and gratitude are owed, to all of
them for help in various ways in completion of this assignment. I am grateful to Mr.
VINOD KANOONGA for his valuable guidance supervision and support under whose
guidelines and instruction I am able to complete this project. No words can express my
feelings of heartfelt gratitude and reference for Mrs. GAZAL MAAM whose ready
assistance, time and knowledge were always there for me whenever the need arose for
it. They were very supportive to me in me in providing the right and needful
information.
REENA VERMA
PREFACE
In second year of MBA (DS) this training is a chance to expose oneself to
real business world to give one theoretical knowledge practical aspects, a
training of this sort is of great help.
I choose Ajmer dairy as a platform to apply my skills. I opted for a finance
project, as the financial power is the most important for a firm to produce.
My project is to study and analysis RATIO ANALYSIS.
EXECUTIVE SUMMARY
TABLE OF CONTENTS
I.
II.
III.
DECLARATION
ACKNOWLEDGMENT
EXECUTIVE SUMMARY
Introduction
II
Company Profile:History
Vision, mission
Structure
Products
Process of milk production
III
IV
VI
VIII
References
Presently the dairy plant has a capacity to process 1.50 lakh liter milk;
prepare milk powder, ghee, Chaach, Lassi, Dahi, Shrikhand, Paneer and
other milk products. The plant also has a capacity to pack 2.50 lakh liter
milk per day.
The ajmer plant of saras has been certified under internationally accepted
quality and food safety management system in accordance with ISO 90012000 with HACCP. The organization also helps in improvement of animal
breed, providing animal health services, insurance of animal, woman dairy
project and providing manure to the cattle rearers. The organization also
provides cattle feed which is purchased from nadabai and marketed in
ajmer.
Presently, Ajmer dairy has a liquid milk handling capacity of more than
1lakh liter per day. It has a raw material capacity of 30000 liter per day and
pasteurized milk storage capacity of 105000 liter per day. Its ghee making
capacity is 5 ton per day which gives an annual production of 300 ton per
annum.
Ajmer dairys organization structure comprise of managing director at the
apex. The second level of the organizational hierarchy comprise of
manager (procurement and input), manager (plant), manager (MIS),
purchase manager, stores manager, HR manager and marketing manager,
financial department manager.
The manager (procurement and inputs), is further assisted by project
officer, field staff , production manager, quality manager, and engineering
manager. The marketing department is assisted by manager and field staff
under him. Financial department is also assisted by managers and field
staff under him.
COMPANY PROFILE
Ajmer dairy was established in the year 1972 as a subsidiary unit of
Rajasthan state dairy development corporation. The cooperative
management in the milk sector has made considerable progress since
inspection in making increased quality of milk producers in the country.
The cooperative sector based on the Anand pattern.
District dugdh utpadak sahakari sangh and rajasthan cooperative dairy
federation limited are two organization were reported to RCDF, jaipur and
their working was totally independent.
Ajmer dairy milk union is supplying its product in the local market and
nearby cities like nasirabad, bijaynagar, makrana, kuchaman, beawer,
kekari. Skim milk and white milk powder is mainly supplied to defence
different dairies in rajesthan and areas.
With industrialization and urbanization the supply of milk become a
commercial industry, with specialized breeds of cattle being developed for
dairy, as district from beef or draught animals.
MISSION
1. to provide good quality of milk to consumers at reasonable rates.
2. availability of good quality of milk to consumers.
3. to provide reasonable price of milk to milk producers.
4. to contribute in country development.
5. to maintain the top position in the milk market.
6. to provide maximum satisfaction to the consumers.
OBJECTIVES
To carry out activities for prompting production, procurement,
processing and marketing of milk and milk products for the economic
development and development of animal/farming community.
Development and expansion of such other activities as may be
conductive for promotion of industry, improvement and protection of
milk production.
Organize and provide technical inputs.
Impart training and orientation to dairy cooperative member.
PRODUCT PROFILE
Ajmer milk union is supplying following types of milk in the local
market and near cities like Nasirabad, Bijaynagar, Makrana and
Kuchaman.
saras shakti ( fat 4.5% and Snf 8.5%).
saras gold ( fat 6.0% and Snf 9.0%).
saras smart ( fat 1.5% and Snf 9.0%).
saras taza ( fat 3.0% and Snf 8.5%).
saras light ( fat 0.5% and Snf 8.7%).
PASTURIZATION OF MILK:It is a process through which milk is boiled at 110c and then milk is again
cooled down at 0degree centigrade temperature with 5 seconds so that
bacteria present in the milk are destroyed and milk remain hygienic for a
longer period of time.
Advantage of ratios:There are various groups of people who are interested in analysis of
financial position of a company. Ratio analysis helps the various
groups in the following manner.
To work out the profitability:-Accounting ratio helps to
measure the profitability of the business by calculating the
various profitability ratio. It helps the management to know
about the profitability ratios show the actual performance of the
business.
To work out the solvency:-with the help of solvency ratio,
solvency of the company can be measured. These ratio shows
the relationship between the liabilities and assets.
Helpful in analyzing financial statements:-ratio analysis
helps the outsiders just like creditors, shareholders, debentureholders, bankers to know about the profitability and ability of the
company to pay them interest and dividend etc. helpful in
comparative analysis of the performance. To simplify the
accounting information; accounting ratio are very useful as they
Objectives of ratios:Ratios are regarded as a true test of earning capacity, financial soundness
and operating efficiency of business organization. some objectives of the
ratio analysis are as follow:
o
o
o
o
o
o
o
o
o
o
o
To measure profitability
To have knowledge of liquidity
To portray solvency
To ascertain operational efficiency
To facilitate comparison
To measure industrial sickness
To reflect productivity
Useful to know the economic condition of a business
It helps in cost controlling
A single ideal ratio cannot be applied for all type of business.
Helpful for managers in planning, forecasting, coordination,
communication, controlling.
Limitations of ratio analysis:There are certain limitations of the ratio analysis techniques and they
should be kept in mind while using them in interpreting financial
statements.
Stages of ratio analysis:The ratio analysis is a process consisting of a number of steps starting
right from assessing the fund requirement to the step of auditing by the
bank and the auditors. A firm can get the financing done from a single bank
or a consortium of bank as per the need of the firm.
1. Collection of the companys financial statements.
2. Understanding the financial statement for ratio analysis.
3. Understanding the various tools and techniques use in
analysis of the financial statements for computing ratio analysis
4. Calculation of ratios and interpretations.
The first stage involves collection the companys last two years financial
statement, which is presents in the forms of annual reports printed by the
company.
PERIOD
31.3.2013
PERIOD
31.3.2014
PARTICULARS
PERIOD
31.3.2013
PERIOD
31.3.2014
SALES ACCOUNT
OPENING STOCK
STOCK(CHEMICAL)
377212.88
828910.41
SALES OF BUTTER
1224917.13
1344971.05
STOCK(BUTTER)
118272
112574
SALES OF CHEM.
435027.89
1202529.06
STOCK(F.O.)
1867231
2876082.99
SALES OF DHAI
11336908.50
14874017.99
STOCK(GHEE)
188794652
247112613.7
SALES OF EQUIP.
3777200.46
468676.26
STOCK(MILK)
7832395
8903240
SALES OF PANEER
6969813.72
8254330.25
STOCK(CHACH&OTHER)
135994.50
127243.3
SALES OF FEED
292620008.28
300445703.62
STOCK(PKG.MATERIAL)
7513460
9006476.79
SALES OF
STOCK(SEED)
78
46084.75
FEMINEFEED
STOCK(SMP)
146614728
122477150
2103942.35
90905208.44
STOCK(SPARES&OTHERS)
11179111.80
116528975.65
SALES OF GHEE
450962520.08
2247245.53
SALES OF MILK
1633651512.26
944801910.42
PURCHASE ACCOUNTS
OVERHEAD TO DCS
51117825.13
83485200.86
SALES OF MILK(NMG)
5609239
1882538707.7
1699437333.6
2782731930.0
SALES OF CHACH
18256762.54
317391519
OPERATIONAL OVERHEAD
15466468.22
22861689.37
SALES OF SEED
2570789.34
2022692
SALES OF SMP
4484703
2012740.73
PACKING MATERIAL
1100894
1250697
SALES OF STATIO.
47175450
314197
62689516
73631463
SALES OF CANS&LIDS
14814
126995290
RAW MATERIAL
364056
193825.42
SALES OF
286334
26458
CATTEL FEED
962407
1148582
AMCU/BMCU
22765814.45
FURNANCE OIL
286894455
294667102
SALES OF MEDICINE
1875360.96
SEED
72103174
73088422
966905.35
AMCU/BMCU
8678135
516000
SALES OF SEMAN
598052.60
2225600.38
MEDICINE/EQUIPMENTDCS
3788890
2991245
CLOSING STOCK
37189.51
FAMINE FEED
1949583
161577
STOCK (BUTTER)
168785000
EXPENSES DIRECT
88580996
STOCK(CHEMICAL)
1266843
STOCK(F.O.)
112574
1026400.20
3234756
2667517
STOCK(GHEE)
828910.41
19426376
21045138
STOCK(MILK)
2876082.99
145262.6
GENERATOR EXP
240985
168692.24
STOCK(PKG.MATE.)
247112613.70
211204.44
379128
332557
STOCK(SEED)
8903240
340173
LABOUR EXPENSES
828494
4525987
STOCK(SMP)
9006476.79
130610715
33590059
41895810
STOCK(SPARES &
46084.75
11737804
1151146
780021.67
ALL)
122477150
7767204.43
5415914
6795613
STOCK(CHACH &ALL)
22065
719835
1403220
STOCK(MEDICINE)
81977500
TRANS. ON MILK
546010
11451526
STOCK(DCS)
37027807.30
42793028
5407810.13
5920808
1559270
69934.55
WATER EXPENSES
218050
111091
28575.03
CONVERSION CHARGES
2014483
1843496
819594.40
462636
1129680
1000000
0.00
207444173.41
162124338.63
2888063535.0
4137022488.8
G.TOTAL
G.TOTAL
11652897.65
2888063535.0
13362103.13
4137022488.84
PERIOD
31.3.2013
PERIOD
31.3.2014
EXPENSES(INDIRECT)
PARTICULARS
PERIOD
31.3.2013
PERIOD
31.3.2013
207444173.41
162124338.63
616895
733535
803778
1467390
INCOME REVENUE
A.H.A;TRAINING EXP.
4434451.96
3809311.08
CONTRACTOR RECOVERY
AUDIT FEES
194936
214871
2282702
9691923.61
BANK CHARGES
30324
24740.27
902086
869743
BONUS/PRODUCTIVITY INC.
1311723
823878
MISC RECIPTS
975636
488017
COMPUTER EXP.
178168
218934
230434
290912
DEPRICIATION
10635239
12604574
11949903.56
1242157
INPUT EXPENSES(SPARSH)
1051152.03
SALE OF LAND(ACQUISITION)
1980841
ENTERTAINMENT EXP.
626271
688498
1000000
E.S.I CONTRIBUTION
75305.05
39437
293563
265733
264710
172239
GRAVITY/LEAVE ENC.
59158251
22335046
GROUP INSURANCE
270962
321000
INSURANCE
725492
1111650
INTEREST EXP
1109694.94
6453522
LEGAL EXP
2919146
62780
STAFF WELFARE
1407452.88
1178776
MEDICAL EXP
1319091
1931464
N.I.T EXP
525486
854630
OFFICE EXPENSES
204161
213433
P.F CONSTRIBUTION
8373793
7797918
POSTAGE&STAMPS
39788
38942
635565
890624
RCDF CESS
15866739
8167844
2727647
2552686
437405
1183233
185039
92456
95179
251292
1442017.09
1194311.27
SECURITY CHARGES
5297871
6664142
1222367
847510
TELEPHONE EXP.
408992
439889
TELEPHONE EXP.
41895
41074
(CHAIRMAN)
825987
960041
PROPULTION EXP.(TRADE)
437188
491031
PROPULTION EXP.(MD)
72032633.15
72111327
SALARY
239110
192075
881247
660528
1088180
360292
660059.27
891312
15820192.72
4500000
4500000
11332181.6
11320192.72
226310240.9
7
176440626.7
4
TOTAL
TOTAL
BALANCE SHEET
AJMER ZILA DUGDH UTAPADAK SAHAKARI SANGH LTD.AJMER
LIABILITIES
ASSETS
226310240.9
7
176440626.7
4
SHARE CAPITAL
FIXED ASSETS
141789362
169865000.9
DAIRY SOCIETIES
96278115.03
142912661
INVESTMENTS
71177760
GOVT OF RAJ
4335612
3980524
CASH IN HAND
261606
130165323
ADMISSION/MEMBERS
11861
12216
FEES
233676
BANK ACCOUNTS
7968031.06
RESERVES&SURPLUS
75273627.64
67230510.64
LOANS&ADVANCES
CAPITAL RESERVES
14358691.56
19400578.62
SECURITY DEPOSITS
2537999.10
RESERVE FUND
320470
320470
5048408
2815157.10
436384
637896
PARTIES
3027226.95
11079619
1116876
1721413
RCDF& UNIONS
928185.26
100853589.6
744583
1147608
SOCIETIES
977715.29
STREANTHENING FUND
128188
128188
CREDIT INSTITUTION
4468234.05
9475673.14
640940
640940
ACCRUED INTEREST
294070
834104.94
KALYAN FUND
192282
192282
ADVANCE TO STAFF
6588288.84
DEVELOPMENT FUND
41018431.64
STOCKS
1401000
LOAN& ADVANCES
269446975.76
150000000
378732820.7
WORKING CAPITAL
4987600
2840700
OTHERS
I.C.D.P LOAN
34399800
24410452.89
RCDF LOAN(BMC)
569944
225572014.9
9
CURRENT LIABILITIES
2742848.42
6076385.74
4500000
9000000
PROVISION(INC. TAX)
27323873
6119754
SUNDRY CREDITOR
5198879.99
9984672.58
SOCIETIES
182547
16277391.97
RCDF&UNIONS
8880661
79585522.31
OUTSTANDING LIABILITIES
12518161.35
38222342.01
PARTIES
24127279.43
26475379.3
OTHER LIABILITIES
29498664.09
32066391.09
SECURITY&EARNEST MONY
41225510
61298125.44
20151241.03
11320192.72
644621871.30
721991944.4
21520121.24
PROVISION(EXP)
RETAINTION
PROFIT
CURRENT YEAR
TOTAL
TOTAL
644621871.3
721991944.4
Classification of ratio:
The classification
depends on objective and available data
Based on the
amount in profit and loss account, balance sheet
or in both
I.
1.CURRENT RATIO
2.LIQUID RATIO
II.
term solvency of a firm as reflected in its ability to assure the longterm creditors with regards to periodic payment of interest during the
period of the loan and repayment of principal on maturity or in predetermined installments at due dates.
Analysis of study:-
1. Current
Ratios
2012-13
429116750.2
156198424.28
2.75
2013-14
419146463.42
28150964.44
1.47
years
Calculations
ratios
2012-13 20925068.61156198424.28
1.34
2013-14 160974708.19285105964.44
0.565
274434575.76193837630.23
1.4158
2013-14
187240500238325287.26
0.78565
calculations
ratios
2012-13
644621871.30274434575.76
2.35
2013-14
721991944.42187240500
3.86
3.
Stock turnover ratio
=cost of goods sold average inventory
years
Calculations
2012-13
2277476088.05383773204.385
Ratio
s
5.934
2013-14
3727806013.98325117704.91
11.46
2484920261.4613238665045 .188
2013-14
3889930352.6165076509.05
5.98
Calculations
2204552737.03119049259.26
5
3427331421.71192770763.78
Ratios
18.51
17.78
CALCULATION
RATIO
2012-13
2277476088.05644621871.3
0
3727806013.98721991944.4
2
3.53
2013-14
5.16
CALCULATION
RATIO
2012-13
2277476088.05141789362
.16
2013-14
3727806013.98169865000.9
0
21.9
CALCULATION
RATIO
2012-13
2277476088.05429116750.
2
5.30
2013-14
3727806013.9841914646.4
2
88.92
the contrary a lower ratio will indicate that either the capital is
lying idle or the capital is not being used infinity to generate
enough sales.
YEAR
CALCULATION
RATIO
2012-13
2277476088.05468272205.99
4.86
2013-14
3727806013.98425565787.26
8.76
CALCULATION
RATIO
2012-13
11332181.60193837630.2310
0
11320192.72238325287.2610
0
5.84
2013-14
4.74
CALCULATION
RATIO
2012-13
15820192.72 100
425565787.26
36.94
2013-14
15832181.60
468272205.99100
3.38
YEAR
CALCULATION
RATIO
2012-13
11332181.60100
644621871.30
11320192.72100
721991944.42
1.75
2013-14
1.56
YEAR
CALCULATION
RATIO
2012-13
141789362
468272205.99
.30
2013-14
169865000.90
425565787.26
.399
CONCLUSION
between the items of the balance sheet and profit and loss
accounts.
Management creditors, investors and others to make judgment
about the operating performance and financial position of the
use the firm use the information contained in these statements.
The Ajmer Zila Dugdh Utpadak Sahkari Sangh LTD. Ajmer
is an ISO:9001-2000 and HACCP: 15000 certified
organization established in 1972. It is a cooperative sector
industry holding its
Members throughout the Ajmer district. Dairy Cooperative
societies (DCS) collect milk from milk producers at village
level. The milk collected at DCS is then transported to the
Diary plants where it is processed and converted to various
products as per market demand. The average milk collection
by the Sangh is approximately 1,23,000 liters per day per day.
It is a seasonal industry having Flush season(peak
collection)and lean season (down collection). The surplus
milk, if any, is converted to milk powder and stored which is
used during lea time. The Sangh has adopted Quality & Food
Safety Policy narrated as below.
Swot analysis
Strengths: The product are very pure.
The product are very hygienic.
The plant is ISO 9001:2000 and HACCP certificate
BIBLIOGRAPHY
REFERANCE:-