A Project Report On


(Bhavnagar District Co-operative milk producers union limited)

A Project Submitted To
The Bhavnagar University of Bhavnagar in practical fulfillment for the degree Of Bachelor of Business Administration By, JAPADIYA SATISH. J (T.Y B.B.A) Roll no: 38 Guided By, NETRAMEM

Swami Sahajanand College of commerce & management Bhavnagar University Bhavnagar


I, undersigned Mr.Satish Japadiya, hereby declare that the project report entitled “financial performance of Sarvottam Dairy” under the guidance of Miss.Netra Mam submitted in partial fulfillment of the requirements for the award of the degree of Graduation in Bachelor of Business Administration in Swami Sahajanand College of Commers & Management, Bhavnagar is my original work – research study – Carried out during 1st May, 2009 to 30th June, 2009 and not submitted for the award of any other degree/diploma/fellowship or other similar titles or prizes to any other institution/organization or university by any other person.

Place: BHavnagar Date: 30-06-2009 Signature Satish Japadiya


My training at the SARVOTTAM DAIRY is to comply with this requirement also. and discussion with concerned employees and experts.PREFACE “Practice makes more perfect” In the field of management every time there is a requirement of understanding or practical aspect of the organization with managerial mind. There is requirement to go for practical training of any subject supplement to the theoretical knowledge and clarified concept. as a part of B. . At the end findings and suggestions are reported. which provide perfect direction of invest the money. The project report includes various ratio of the company and comparison of financial statements of last three years and analysis on Working Capital Of Company.B. I hope this serves the Purpose.B. Moreover SWAMI SAHJANAND COLLEGE OF COMMERS& MANAGEMENT.A programmers. The data collections were by annual report of the different companies.A. It is more applicable in the field of the management especially a professional course like B. Bhavnagar has prescribed 21 days project report training during the II Sem.

Mr.Hardik Bakshi (faculty guide) Swami Sahjanand College of Commers & Management Who has given me the opportunity to do this project in the Sarvottam Dairy Shihor. MANAGER (Production) for making all kinds of arrangements to carry the project successfully and for guiding and helping me to solve all kinds of quarries regarding the project work. HASMUKH PANDYA. SATISH JAPADIYA . Being a part of this project has certainly been a unique and a very productive experience on my part. (faculty guide) for assigning me a project of such a great learning experience and acquainting me with real life project financing and appraisal. and very thankful to all lecturers of Swami Sahjanand College of Commers & Management for their useful guidance and advise. I would also like to thank my mentor and project – coordinator. Last but not least I would like to thank all the employees of Sarvottam Dairy. His systematic way of working and incomparable guidance has inspired the pace of the project to a great extent. Netra Mam. Ms. I am very grateful to Mr. who have directly or indirectly helped me with their moral support for the completion of my project.ACKNOWLEDGEMENT Words are indeed inadequate to convey my deep sense of gratitude to all those who have helped me in completing this summer project to the best of my ability. I am really thankful to.

1.5 form of organisation 1.6 organization structure 1.4 size of the unit.10 boards of directors 2. 3.8 Time keeping system. 1.1 introduction of Sarvottam dairy 1.9 employees services 1.TABLE OF CONTENTS DECLARATION Preface Acknowledgments Executive summary Chapterisation 1. History& development of unit 1.1 Meaning of research method. Introduction page no. COMPANY PROFILE 3.3 Objectives of Sarvottam dairy 1.3 Research design . 1.2 Research objective 3.7 manufacturing process 1. RESERCH METHODOLOGY 3.2.

4 Profitability ratio Introduction 4. Findings and suggestion 6.7 working capital analysis 5.5 common size statements 4.3 Activity ratio 4.2 Leverage ratio 4.2 methods of analyzing financial statement 4.6.4. Bibliography .4 trend percentage 4.6 Ratio analysis 4. DATA ANALYSIS AND INTERPRETATION 4.1 Liquidity ratio 4.6.3 comparative balance sheets 4.





Sarvottam Dairy established in 1st march 2000 by Shari Bhavnagar District ‘SAHKARI’ milk manufacture ‘SANGH’. Sarvottam Dairy wants to decrease privatization and increase cooperative and development rural area. . after the surplus milk passed from AMUL DAIRY Anand. This industry located at Sihor (DADA NI VAV) area. Sarvottam Dairy is received milk approximately 50000 liters and selling 20000 liters. It wants take revolution as AMUL DAIRY has given.1. Sarvottam Dairy is a unique dairy. INTRODUCTION I have visited “SARVOTTAM DAIRY” Sihor on the 19th October 2008 for the purpose of taking practical training for the betterment of my knowledge in the field of management and as a part of my study programme. This is most famous for production milk in district level. This is large scale industry. The plan area of the industry covers 30acres land in Sihor on Bhavnagar to Rajkot highway road.

1 HISTORY AND DEVOLOPMENT ‘GUJARAT DAIRY DEVELOPMENT BOARD’ establishes 1974 BHAVNAGAR DAIRY. MAHASHANKAR P. NANDVA and Mr. .1. RAJENDRASINH RANA and Mr.NANDVA and Mr. SUNIL OZA. MAHENDRABHAI PANOT of Bhavnagar district Mr. HARISHANKAR R. Mr. Bhavnagar Dairy has brand names “SAURAS” by this name Bhavnagar Dairy sells milk and ghee in the Bhavnagar district. In this organization they assigned organization responsibility to V. Milk was gathered by making milk purchased from the cooperative members are 42500 liters and they selling was 54000 liters after decrease in purchased and sales government had close the Bhavnagar Dairy on the date of December 24th 1999. HARISHANKAR R. HARISHANKAR R.PANDYA send a application to the Gujarat Government for the reestablishment of SANGH in the district. JOSHI. Both Mr. MAHASHANKAR P. MAHASHANKAR P.PANDYA had done present Bhavnagar Dairy was merger with Uttam Dairy by Ahmadabad by Government department.PANDYA with the support of the political bodies like Mr. Because of close the dairy in December 24th 1999 managed by Nigam and the meeting was called by all milk producers of the Bhavnagar in the ground of Jilla Panchayat because of purchase and selling management they assigned responsibility Mr. The “SANGH” was also enabling to do anything for the crisis of Bhavnagar dairy.C. When the “SANGH” is established in 1974 they take the responsibility to solve the problem of their cooperative members.NANDVA and Mr.

According to the industrial policy 1991: • • Small scale unit is a unit in which investment up to 25 lac to 5crore. So it is a medium scale industry. 2) Medium scale industry. Partnership. As the name it suggests that it is a cooperative unit . Co-operative organizations. 3) Large scale industry. Join Sector Company. Medium scale unit is a unit in which investment in fixed assets fall between ranges of 5crore to 10 crore. SARVOTTAM DAIRY invests up to 5 crore on its plant and assets. Government Company. 1) Small scale industry.1. • Large scale unit is a unit in which investment in machinery and plant exceeds investment more than 10 crore.2 SIZE OF THE UNIT There are three types of industry. Depending on the ownership the business organization can be classified in the following forms: • • • • • Sole proprietorship.

The dairy occupies about 30 acre lands for manufacturing unit and it has one big cold store room on its premises the average receive milk 55. . As the name it suggests that it is a co-operative unit. the form of this industry was sole proprietorship but it is converted in to co-operative firm.000 liters per day.3 FORM OF ORGANIZATION Before 8 years.1. In additional to above there is also other like computer it in dairy manufacturing department.000 liters and selling 20.

M. the managerial ability and inner energy of the managers come out. 1) Top level.NANDVA Joint G. 3) Lower level.4 ORGANISATION STRUCTURE The good organization structure is most important and vital because with the help of the good organization structure. General Manager. HASMUKHBHAI PANDYA . 2) Middle level. The managerial ability and develop of the business depend upon the organization structure of an organization.PANDYA 2) MIDDLE LEVEL Middle level is the very important level. • • • Chairman: MAHENDRABHAI PANOT G. • • Finance head: Production head: Mr. The organization structure of the “SARVOTTAM DAIRY” includes three levels.1. BHIKHUBHAI PATEL Mr. and Chairman etc.M. : HARISHANKAR R.: MAHASHANKAR P. Top level consists of mainly Board of Directors. because it is the linker who combines both the level top level to the bottom level. 1) TOP LEVEL Top level includes the unit or groups.

) 3) LOWER LEVEL A lower level or bottom level seen at the lowest in the chart of company.• • • Co-operative head: Mr. Workers. BHARATBHAI KHER Marketing head: Mr. . Formal. JAGDISHBHAI MEHTA (C. VIJAYBHAI RAMANA Auditor: Mr. It is the level where actual work is done.A.


F.7 MANUFACTURING PROCESS Manufacturing process is most important factors of each and every business. If the fat is increase so.N.F after maintain and fat the last step persuasion and after packing. Dairy is use two types of producing method.N. First the checking fat and after put the machinery. SARVOTTAM DAIRY is a consumer goods production sector. In every stage of life milk is useful to develop and maintain our body. . adding water but fat is decrease. The SARVOTTAM DAIRY is producing milk product.1. Milk is essential ingredient in our life. and fat). Process of milk the first milk receives rural area and TALUKA area and received milk in put in to tank and third step milk in general fat and solid not fat and after maintain (S. one is a milk and second is a butter milk means milk are their raw materials the dairy produce product as the regular and after the milk. so the adding powder S.

In the process of milk and butter milk product separate machine is used after packing milk and buttermilk product they are kept in cold storage. .



so that research results are capable of being evaluated either by researcher himself or by others. which consists of series of actions or steps. 1) research objective 2) process of research method 3) types of research method 4) source of data . we do not only talk of the research methods but also consider the logic behind the methods. We use in context of our research study. I would use the following research process. • To effectively carry out in research. • Thus when we talk about research methodology.[3] RESEARCH METHODOLOGY WHAT IS RESEARCH? Research is the systematic process of collecting and analyzing information to increase our understanding of the phenomenon under study. Research method include following points are as follow. It is the function of the researcher to contribute to the understanding of the phenomenon and understanding to others to communicate that RESEARCH METHODOLOGY: Research Methodology is a systematically solve the research problem. It has many dimensions and research methods constitute a part of the research methodology.

4. 5. 3. The purpose of objective of financial PERFORMANCE analysis is to diagnose the information contained in financial statements so as to judge the profitability and financial soundness of the SARVOTTAM DAIRY . To measure the SARVOTTAM DAIRY’S short-term and long-term solvency. Financial statements analysis is an attempt to determine the significance and meaning of the financial statement data so that forecast may be made of the future earnings. To judge the financial stability of a DAIRY. To assess the future prospects of the SARVOTTAM DAIRY.1 RESEARCH OBJECTIVES The Objectives of ANALYSING Financial PERFORMANCE OF SARVOTTAM DAIRY is as follows: 1.3. To compare intra-firm position. inter-firm position and pattern position with industry. To measure the SARVOTTAM DAIRY’S operating efficiency and profitability. 2. 6. ability to pay interest and debt maturities (both current and the long term) and profitability of a sound dividend policy 7.

2 RESEARCH DESIGN A plan of what data to gather. INFORMATION NEEDED  Information about firm’s assets. revenue. PROBLEM IDENTIFICATION  Find out Ratios of SARVOTTAM DAIRY and compare financial statements for judging the financial performance. bankers. DATA COLLECTION My data collection source was secondary i. liabilities. from whom. security.  Information about firm’s loan. expenditure.  Find deviation of calculated ratios from standard or Norms  Calculating the working capital analysis of sarvottam dairy. 2. stock level & other financial information.e. 3.3.  Annual reports of companies  Balance sheet  Profit & Loss Accounts . and how to analyze the data obtained a systematic plan to guide archaeological research according to the scientific method and take full advantage of the information potential RESEARCH DESIGN Research Design includes the following steps: 1. investment etc. how and when to collect the data.

. 5. 6. LIMITATION  My scope of study is limited to the annual reports. Balance sheet of units & within the SARVOTTAM DAIRY’s last 3 years data for analysis. 7. ANALYSIS & INTERPRETATION  The data collected and analysed subjectively as well as graphically where it is possible. SUGGESTION  Suggestion has been given in order to improve performance of the firm.4. The analysis is based upon available information & interpreted accordingly. CONCLUSION  On the basis of analysis conclusion has been drawn.


investors. profit and loss account or income and expenditure etc is usually used by management. There are 5 method s of analyzing the financial performance of SARVOTTAM DAIRY: .’ the end of the financial accounting processing in a set of reports which are called financial statements’. According to Metcalf and Titard. creditors. The future plans of the firm should be laid down in view of the firm’s financial strength and weaknesses. DATA ANALYSIS AND INTERPRETATION 4. “Financial statement analysis is largely a study of relationship among the various financial factors in a business as disclosed by a single set of statements. MEANING: The term “Financial performance Analysis” also known as analysis and interpretation of financial statements refer to the process of determining financial strength and weaknesses of the firm by establishing strategic relationship between the items of the balance sheet.4. A company’s management should be interested in knowing the financial strength to make their best use and be able to spot out financial weaknesses of the firm to take suitable corrective actions.” In the words of Myers. financial performance Analysis is the starting point for making plans before forecasting and planning procedures. and a study of the trend of these factors as shown in a series of statements Therefore.1 INTRODUCTION: Information contained in Financial Statements that is Balance sheet. That understanding the past is a prerequisite for anticipating the future. and others to form judgment about the company’s operating performance and financial position. profit and loss account and other operative data. Users of the financial statements can get better insight about the financial strength and weaknesses of the firm if they properly analyze the information reported in these statements. “Analyzing financial statements is the process of evaluating the relationship between the component parts of the financial statements to obtain a better understanding of a firm’s position and performance.

Trend analysis 3. Comparative statements 2. . Common size statements 4. The following methods of analysis are generally used: 1. A number of methods or devices are used to study the relationship between different statements. Funds flow analysis 5. two financial statements (Balance Sheet and the Income Statement) are prepared in comparative form for financial performance Analysis purposes. Any statement prepared in a comparative form will be covered in comparative statements.2 METHODS OF ANALYSIS OF FINANCIAL STATEMENTS The analysis and interpretation of financial statements is used to determine the financial position and results of operations as well.4. The elements of financial position are shown in a comparative form so as to give an idea of financial position at two or more periods. Generally. Comparative statements The comparative financial statements are statements of the financial position at different periods of time. Cash flow analysis 6. From practical point of view. Ratio analysis These are explained as follows: 1.

The analyst is able to see the trend of the figures. It indicates various means by which funds were obtained during a particular period and the ways in which these funds were employed. it is a statement of sources and application of funds. 4. balance sheet and the income statements are shown in analytical percentages. In simple words. total liabilities and the total sales. Similarly various liabilities are taken as a part of the total liabilities. Cash flow analysis Cash flow statement is a statement. Funds flow analysis The fund flow statement is a statement. which shows the movement of the funds and is the report of the financial operations of the business undertaking. Such a statement enumerates net effects of the various business . 5. These statements are also known as component percentage as 100 percent statements because every individual item is stated as a percentage of the total 100. The total sales are taken as 100 and different assets are expressed as a percentage of the total. The information for a number of years is taken up and one year. 3. whether upward or downward. generally taken for the base year. Common size statements The common size statements. This method determines the direction upwards or downwards and involves the computation of the percentage relationship that each statement items bears to the same in the base year.2. In figures for the base year are taken as 100 and trend ratios for other years are calculated on the basis of the base year. which describes the inflow (sources) and outflow (uses) of the cash and cash equivalents in an enterprise during the specified period of time. The figures are shown as percentages of total assets. Trend analysis The financial statements may be analyzed by computing trends of series of information.

It is only a means of better understanding of financial strengths and weaknesses of a firm. It is the process of establishing and interpreting various ratios for helping in making certain decisions. A ratio is a simple arithmetical expression of the relationship of one number to another. Ratio analysis Ratio analysis is a technique of analysis and interpretation of financial statements.transactions on cash and its equivalents and takes into account receipts and disbursements of cash. . However ratio is not end itself. It may be defined as the indicated quotient of the two mathematical expressions. 6. A cash flow statement summarizes the causes of changes in cash position of a business enterprise between the dates of the two balance sheets.

3 COMPARATIVE STATEMENT COMPARATIVE BALANCE SHEET LIABILITIES 2006-07 2007-08 Paid-upcapital Share reserve Reserves and other funds Current liability Deposits 9466870 1299045 2 1225312 9 2164700 3590 886452 3186800 3929 4152845 2008-09 4460800 37609 14852845 ASSET Fixed asset Investment Current asset Deposits 2006-07 2007-08 2008-09 2813474 5 106000 7540982 676468 2669189 134425 1282757 9 144394 439686 5023399 3402882 8 106000 50289944 106000 127140049 Advances and other dues Bank balance Provision toward the payment milk co-op society Provision for current liability Net profit Loans and liabilities(long term) 9797868 25024794 409244 6921494 3742328 740950 1296227 6 6374366 747678 1163861 9 9665232 2192289 11645135 Cash on hand Closing stock 228406 849 4105544 2485 5023399 TOTAL 3976503 5 5134761 9 80602934 TOTAL 3976503 5 5134761 9 80602934 .4.

it increases the owners capital in the dairy and avoid unnecessary burden of interest on the company. • FIXED ASSETS: 60000000 50000000 40000000 30000000 20000000 10000000 0 FIXEDASSETS 2006-07 2007-08 2008-09 .INTERPRETATION • SHARE CAPITAL: 4500000 4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 2006-07 2007-08 2008-09 SHARE CAPITAL We can see from the above chart that share capital of the SARVOTTAM DAIRY is continuously increasing.

The above chart represents that the fixed assets of SARVOTTAM DAIRY is continuously increasing . . It can be said a progressive feature for the dairy. • CURRENT ASSETS. 35000000 30000000 25000000 20000000 15000000 10000000 5000000 0 CURRENT ASSETS 2006-07 2007-08 2008-09 The table shows that the current assets of the SARVOTTAM DAIRY are increasing since last 3 years. INVESTMENTS: 120000 100000 80000 60000 40000 20000 0 INVESTMENTS 2006-07 2007-08 2008-09 We can see from the above chart that the investments of the SARVOTTAM DAIRY are stable during the 3 years. it shows progress of the dairy during the given period.

It is not good for the health of the SARVOTTAM DAIRY. • SALES: 400000000 350000000 300000000 250000000 200000000 150000000 100000000 50000000 0 SALES(Rs) 2006-07 2007-08 2008-09 We can see from the above chart that the sales of SARVOTTAM DAIRY are increasing from year to year. This can be said a step toward the progress… .• CURRENT LIABLITIES : 50000000 40000000 30000000 20000000 10000000 0 CURRENT LIABLITIES 2006-07 2007-08 2008-09 We can see from the chart that the current liability of the SARVOTTAM DAIRY is increasing since last 3 years.

• GROSS PROFIT 30000000 25000000 20000000 15000000 10000000 5000000 0 GROSS PROFIT 2006-07 2007-08 2008-09 GROSS PROFIT of the SARVOTTAM DAIRY is also increasing but in the year2007-08 gross profit is high but due to high operating expanses net profit is low.• NET PROFIT: 2500000 2000000 1500000 1000000 500000 0 NET PROFIT 2006-07 2007-08 2008-09 AS we can see from the above chart net profit of SARVOTTAM DAIRY is stable during the year 2007&2008.. But it rapidly increases in the year 2009. . This may due to decrease in the operating expanses and increase in sales.

20062006-07 PARTICULARS SALES COST OF GOODS SOLD 143347562 201097798 3434799 2811984 GROSS PROFIT TOTAL OPERATING EXPANSES NET PROFIT 6761348 740950 15031298 747678 2592755 6 2192289 0.37 0.35 0.60 7502298 15778976 5 4.60 6.93 6.97 4.97 7.28 7.57 RS. 2007-08 RS 2008-09 RS 07 % 100 95.02 200708 % 100 92.72 200809 % 100 92.43

150849860 216876774 3715998

We can see from the above table sales is increasing gradually during the period where as the cost of goods sold is decreasing every year which results into increase in the gross profit. The gross profit of the Dairy is increasing but with that operating expanse also increasing so there is low margin of net profit.

PARTICULARS 06-07 RS. SHARE CAPITAL PAID UP RESERVE SH CAP RESERVE & FUNDS: CURRENT LIABILITIES: DEPOSITES PROVISIONTOWARDS MILK CO OPERATIVE SOCIATY PROVISION FOR CURRENT DUES LOAN{LONG TERM} TOTAL 9466870 9797868 1299045 2 1225312 9 6374366 1163861 9 5134761 8 1271404 9 2502479 4 9665232 1164531 5 8060293 3 23.81 25.30 15.77 24.64 23.86 31.05 2164700 3590 886451 3186800 3729 4152845 4460800 37609 1486284 5 5.44 0.01 4.09 6.21 0.01 9.54 5.53 0.05 21.26 07-08 RS. 08-09 RS. 0607 % 0708 % 0809 %

3742328 1296227 6 3976503 4


12.41 11.99

32.60 22.67 14.45 100 100 100

 We can see that share capital in the year 2006-07 is only 5.44% which increases in the next year and becomes 6.215 of the total assets. In the current year it becomes 5.53%.  The reserve funds are only 4.09% of the total assets. It increases next year and becomes 9.54% and again increases 21.26%. This can be said a considerable increase.

 Current liabilities are 32.60% of the total liability which decrease in the next year and becomes 22.67% and in the current year it becomes 14.45%. this can be said good for dairy

60% of the total assets in the year 2006-07 which decreases in the year 2007-08 and becomes 22. As its share capital and other funds are increases continuously.45% of the total assets. . Long term loan of the dairy is 32. This can be said good for dairy as it has enough inner funds for expansion. it has less need of outside funds.67 % in the next year it again decreases and becomes 14.

we can see that fixed assets are decreasing slightly.57 100 0.99 0.26 144394.70% of the total assets and it decreases in the next year and reaches at only 0.003 100 28134745 106000 07-08 RS. It does not change.59 0.70 18. 34028828 106000 08-09 RS.COMMON SIZED BALANCESHEET APPLICATION OF FUNDS PARTICULARS 06-07 RS.55 22.55% of the total assets.395 of the total assets.98 7. • • Advances & other dues and closing stock has slight difference in them. • Investments of the dairy remain constant for all the three years.13 ADVANCES&OTHER 7540982 DUES CLOSING STOCK BANK BALANCES CASH IN HAND TOTAL 2669189 409244. FIXED ASSETS INVESTMENTS CURRENT ASSETS: DEPOSITS 676468 134425 12827579 4105544 439686 17819926 5023399 6921494. • The proportions of the deposits are 1. It decreases in the year 2007-08 and becomes 66.27% and in the current year it becomes 62.2 6 2485 1.26 228406 39765035 849.21 08-09 % 62.23 8.39 0.27 0.71 1.75% of the total assets.26% of the total assets.001 100 0.81 80602934 • As per the above statement.97 6.55 51347619.28 0.27 07-08 % 66. . In the year 2006-07. 50289944 106000 06-07 % 70. In the current year 2008-09 .03 0. Bank balances of the dairy are increasing where as cash in hand shows decreasing trend. it again raises slightly and becomes 0. it is 70.75 0.11 6.26 24.

07 1676.94 100 149. if the items of other years in the form of percentage .every item in this base statement is taken as 100.12 374.63 147.87 202.the method is known as trend percentage method .the figures of one year is taken as base .04 11638619 100 89. Here the year 2006-07 is taken as the base year……….11 206.32 100.66 Current liabilities Loans &long term liabilities Gross profit Net profit Total assets 31617949 100 137.42 206.21 468.4. Figures of each item in the other years statement are divided by corresponding item in the statement of base year.75 100 262.69 . TREND PERCENTAGE STATEMENT 2006200708 % 120. Comparative figures of some more years are required.47 2008-09 % PARTICULAR 2006-07 2007-08 2008-09 07 % Fixed assets Investments Current assets Share capital Reserves & funds 2813474 5 106000 1152428 9 2164700 886451 2300706 5 1296227 6 7502298 740950 3976503 5 34028828 106000 172122791 3186800 4152845 5028994 4 106000 3020699 0 4460800 1486284 5 4740407 4 1164531 5 2811984 5 2192289 8060293 4 100 100 100 100 100 178. he figures of a single year are not enough.78 89.3 TREND ANALYSIS For studying the trend of various items of financial statements.9 129.81 295.84 15778976 747678 51347619 100 100 100 210.

We can see from the above trend percentage statement that as compared to the base year all the items in the statement are increasing except investments and loans & long term liabilities.  Dairy has acquired excellent growth in the current year as compared to previous year’s .All the items are increased at a very high rate. it is good for Dairy. Long term liabilities & loans are decreasing gradually from 2006-07 to 2008-09. it shows that outside liabilities are decreasing . Dairy is undergoing at a very high growth rate and will expand its operation in the near future. .  Investments remain constant in all the years.

Kell and Bedford.4 RATIO ANALYSIS 4. a ratio is an expression of the quantitative relationship between the two numbers.1.2 MEANING A ratio is a simple arithmetical expression of the relationship of one number to another. In simple language ratio is one number expressed in terms of the another and can be worked out by dividing one number into the other.1 INTRODUCTION The ratio analysis is one of the most powerful tools of the Financial performance Analysis. 3It is compared with a standard of performance (industry average). 2. It is compared with other ratios in the same set of financial statements. a ratio is the relation of the amount. 4. The significance of a ratio can only truly be appreciated when: 1. a:b (ais to b) or as a simple fraction. It is the process of establishing and interpreting various ratios (quantitative relationship between figures and groups of the figures). It is compared with the same ratio in previous financial statements (trend analysis). It is with the help of ratio that the financial statements can be analyzed more clearly and decisions made from such analysis. decimal fraction & percentage. According to the Kohler. 4. expressed as the ratio of a to b. According to the Accountant’s Handbook by Wixon. to another b.1. Such a standard may be either the ratio which represents the typical performance of the trade or industry. a. It may be defined as the indicated quotient of two mathematical expressions. integer. or the ratio which represents the target set by management as desirable for the business .

Various ratios can be divided into following categories depending upon their use. from which ratios are calculated is as follows:  Profit and loss account  Balance sheet ratios  Inter statement ratios Classification according to the nature of ratios In this type of ratios more emphasis is given to the nature of ratios.4.3 CLASSIFICATION OF RATIOS The ratios have different use for different people. whether these pertain to sales.1. earning.  Liquidity or solvency ratio  Debtors ratio  Creditors ratio  Sales ratio  Earning ratios  Cost of expenses ratio According to importance of ratios Under this type of ratios. Traditional classification Traditional classification or classification according to the statement. ratios can be divided into two categories as following: Primary ratios: 1. Therefore ratios can be classified into different categories. Production cost ratios 2. inventory etc. Distribution cost ratios . Return on capital employed Secondary ratios: 1.

which a firm would like to analyze. are:  Liquidity ratios  Leverage ratios  Activity ratios  Profitability ratios .3. Selling cost ratios Functional classification The four most important financial dimensions.

The failure of the company to meet its obligations due to lack of sufficient liquidity will result in poor creditworthiness. The short – term obligations are met by realizing amounts from current.4 LIQUIDITY RATIOS: Liquidity refers to the ability of the concern to meet its current obligations and when these become due. Therefore. it is necessary to strike a proper balance between the high liquidity and lack of liquidity. A firm should ensure that it does not suffer from lack of liquidity and also that it does not have excess of liquidity.1. The most common ratios which indicates the extent of liquidity or lack of it are: • • • Current ratio Quick ratio Absolute ratio . or even in legal tangles resulting in the closure of the company. loss of creditors confidence. A very high degree of the liquidity is also bad. floating or circulating assets.4. idle assets earn nothing. The firm’s funds will be unnecessarily tied up in current assets.

. and other accrued expenses (principally wages). 1 instead of 2. An ideal current ratio is (2:1).e. Current Ratio=Current Assets/Current Liabilities This ratio is an indicator of the firm’s commitment to meet its short-term liabilities.50 than the current liabilities .54 times which kept slightly increasing and resulted at 0. we can see that in 2006-07 the current assets were 0.63 TIMES RATIO . marketable securities.63times in 2008-09. CURRENT RATIO This ratio indicates the extent to which current liabilities are covered by those assets expected to be converted to cash in the near future. However ratio is increasing gradually but it need to improve a lot. Current liabilities consist of accounts payable. Following table shows the Current ratios of sarvottam dairy in different years YEAR CURRENT ASSETS 2006-07 2007-08 2008-09 Analysis In the table we see that the change of Current ratios over different periods: From the analysis.54 TIMES 0. Current assets normally include cash. accounts receivables. The ratio of 2 is considered as a safe margin of solvency due to the fact that if the current assets are reduced to half i. 11524289 17212791 30206990 CURRENT LIABLITIES 23007065 31617949 30206990 0.1. accrued taxes. and inventories.. short-term notes payable.63 is available. as we finds that the current ratio of Sarvottam Dairy is not satisfactory. then also the creditors will be able to get their payable in full. A minimal increase is seen in 2007-08 and it went up to 0.. It seems that the current liabilities of Sarvottam dairy are more than current assets. current maturities of long-term debt.50 TIMES 0. It shows that for every Rs 1 of liability there is only Rs.

5:1) or more does not necessarily imply sound liquidity position of dead stock is fairly low. 4081512 4319201 12545341 23007065 31617949 47404074 0.38 times which increased and resulted as 0.5:1) is considered to represent a satisfactory current financial condition.2.53 TIMES RATIO .41 TIMES 0.53times in 2008-09.38 TIMES 0. Hence. It can be done by increasing its quick assets or by decreasing liquid assets. Following table shows the Quick/ acid test ratios of SARVOTAM DAIRY in different years: YEAR QUICK ASSETS CURRENT LIABLITIES 2006-07 2007-08 2008-09 AnalysisFollowing table shows the change of Current ratios over different periods:. QUICK RATIO: (ACID TEST RATIO OR LIQUID RATIO) This ratio indicates the firm’s liquidity position as well.. Quick Ratio=(Current Assets-Inventories)/Current Liabilities An asset is liquid if it can be converted into cash immediately or reasonably soon without a loss of value. a quick ratio is (0. In 200607. the quick ratio was 0. Last years ratio can be considered satisfactory. A quick ratio of (0. SARVOTTAM DAIRY need to improve this ratio.5:1. It actually refers to the extent to which current liabilities are covered by those assets except inventories. The ratio would be satisfactory only if it is 0. Cash is (the most liquid asset Generally.

In 2006-07. It would be appreciated that a company with a lower quick ratio may be quite solvent in case its inventory has a ready market. inventories are available to meet current obligation.10 TIMES 0. its realizable value is even above the book value and the portion. Since cash is the most liquid asset.15 TIMES .15timestimes in the year 2008-09. QUICK ASSETS 4081512 4319201 12545341 TOTAL ASSETS 39765035 51347619 80602934 RATIO 0.08 TIMES 0. the more solvent is the business. inventories are not absolutely non-liquid.08 times in following year and increased further to 0. An absolute liquid ratio of (0:5:1) may be adequate. then it decreased to 0. a financial analyst may examine the ratio of cash and its equivalent to current liabilities. The higher the ratio. and cash may be immediately needed to pay operating expenses and moreover. Following table shows the Inventory Turnover ratio of SARVOTAM DAIRY in different years: YEAR 2006-07 2007-08 2008-09 AnalysisAnalysis shows a gradual increase of liquidity Ratio over the last three yeas. the ratio was 0.10 times. ABSOLUTE LIQUID RATIO / CASH RATIO: As all book debts may not be liquid. As there is a slight increase in the cash ratio but it still need to improve a lot.3. To a measurable extent..

vie a vie the owner to the total capital employed. bondholders. mortgagors. Debt Equity Ratio = Total Debt Net worth * 100 TOTAL DEBT Debentures and Bonus Loan and Mortgage Security deposit with company Fixed Deposit / Unsecured loans All Current Liabilities NET WORTH Equity share capital Pref. 1.) .4. Share capital Reserve capital & Revenue Profit and Loss (Cr.5 LEVERAGE RATIO (TEST OF LONG TERM SOLVENCY) Solvency of a business means its ability to meet its long – term liabilities debenture holder. the contribution of long-term depositors.e. They would very much like to study the financial structure. mortgagors and other long – term depositors are primarily interested in ascertaining whether the company is having adequate profit to pay its interest obligation regularly. The management has to keep healthy balance between the two equities: external and internal. i. shareholders or proprietors. DEBT – EQUITY RATIO The ratio is also called ‘External Internal Equity Ratio’. and other creditors are matched with those of owner. It indicates the comparative claims of outsiders and owner in the concern’s total equities the claim of depositors.1. suppliers.

.96%. Following shows the Return on Total Assets of SARVOTAM DAIRY in different years: YEAR 2006-07 2007-08 2008-09 TOTAL DEBT 35969341 28851410 59049389 NET WORTH 3795692 8091052 21553543 RATIO 947. High – Debt Company is able to borrow funds on very restrictive terms and conditions. In the year 2007-08 the ratio decreases and becomes 356%and in 2008-09 it becomes 273. Allover it shows the decreasing trend which is beneficial feature shows the progress of dairy. SARVOTTAM DAIRY should try to reach at 100% . In case the ratio is 100%.If the proportion of outside fund is quite high.63% 356% 273.96% So. the debt equity ratio is 947. the company is technically said to be highly leveraged. . in the year 2006-07.63% that is outside creditors have a larger claim the owners of the dairy. it is considered quit satisfactory.

It may be expressed as: Equity ratio = Proprietor’s funds Total Assets *100 Proprietor’s fund or Net worth = Equity Share Capital + Reserve and Surplus + Preference Share Capital. It establishes relationship between the proprietor or shareholder’s funds and the total assets. the larger is their contribution and the greater is the securities for creditors. depositors. Total Assets = Total Equities or Total Resources of the concern.54% 15. The nearer the percentage of proprietor’s funds to 100. mortgagors. If we take the total assets as 100. EQUITY RATIO / PROPRIETORY RATIO It is variant of debt – equity ratio.74% TOTAL ASSETS RATIO . and debenture holders. It is an important test to judge the long-term solvency of a concern. the percentage of proprietor’s funds indicates the contribution made by the owners towards total assets. Following shows the PROPRIETORY RATIO of SARVOTAM DAIRY in different years: YEAR PROPRIETORS FUND 2006-07 2007-08 2008-09 3054742 8091052 21553543 39765035 51347619 80602934 9.75% 26.2.

74% are contributed by the owners themselves.So. This indicates that out of the total assets of the dairy 26.54% in 2006-07 and increases rapidly in 2008-09 and reaches at 26. So the dairy still need to improve this ratio so that unnecessary burden of interest can be reduced.. The increase in the ratio is due to increase in the proprietors funds.74% of the total assets of the dairy. proprietors fund in the dairy increases every year. It is only 9. .

. Fixed assets turnover ratio = sales /fixed assets The more the sales in relation to fixed assets.36 times in year 200607. Plant.39 TIMES Analysis shows that the fixed asset turnover ratio was at 5.3. it declined to 6.37 TIMES 7. I Following table shows the Fixed assets turnover ratio ratios of SARVOTAM DAIRY in different years: YEAR 2006-07 2007-08 2008-09 SALES 150849860 218876764 371599816 FIXED ASSETS 28134745 34028828 50289944 RATIO 5.37times in the following year.as we can see from the above that fixed assets in the Sarvottam dairy is efficiently utilized. the more efficient is the use of fixed assets. FIXED ASSET TURNOVER RATIO: : The Fixed Asset Turnover ratio measures the effectiveness in generating Net Sales revenue from investments in Net Property. and Equipment back into the company evaluates only the investments. In 2008-09 the turnover somewhat increased to 7. However. It indicates the higher efficiency.39times.36 TIMES 6.

5 ACTIVITY RATIOS (Efficiency Ratio): Funds of creditors and owners are invested in various assets to generate sales and profits. The ratio of stock turnover is increasing rapidly. In the next year it becomes 118. In the next year ratio rapidly increases and reaches at 91. the stock turnover ratio is high. These ratios are also called turnover ratios because they indicate the speed with which assets are being converted or turned over into sales and assets. .38 TIMES 118.96 times which is comparative less. The better the management of assets. Activity ratios are employed to evaluate the efficiency with which the firm manages and utilizes its assets.05 times.92 TIMES 91.05 TIMES We can see from the above table that in the year 2006-07. The increase in the ratio shows the increasing capacity of SARVOTTAM DAIRY. the larger the amount of sales. the stock turnover ratio is 9. As the dairy produces the product daily and sells it. .38 times in the year 2007-08. The higher the ratio the greater is the operating capacity of the dairy. STOCK TURNOVER RATIO: Stock t Turnover Ratio = cost of goods sold Average stock YEAR COST OF GOODS SOLD AVERAGE STOCK RATIO 2006-07 2007-08 2008-09 146724249 201097798 343479971 1439595 2192685 2909512 101.

PROFITABILITY RATIO: A Company should earn profits to survive and grow over a long period of time. ‘Sales’ has been the main source of recovery of expenses and earning of profit. These ratios thus study the relationship of profits as well as expenses with sales. C. The profitability ratios are calculated to measure the operating efficiency of the company. Therefore. Net profit ratio 3. Gross profit ratio 2. This is possible only when the company earns enough profits. Profit is the difference between revenues and expenses over a period of time. RATIO OF EXPENSES TO SALES RETURN ON INVESTMENT RATIO . RATIO OF PROFIT TO SALES 1. Owners want to get a reasonable return on their investment. Profitability ratios. creditors and owner are also interested in the profitability of the firm. Besides management of the company. These have accordingly been divided into categories: A. deals with two aspects ‘profits’ or earning and ‘expenses’ incurred to earn that profit. the financial manager should continuously evaluate the efficiency of its company in term of profits. Profit is ultimate output of the company and it with has no future if it fails to make sufficient profits. Operating net profit ratio B.

97% 7.28% 7. RATIO OF PROFIT TO SALES Gross Profit Ratio: The gross profit margin measures the percentage of each sales dollar remaining after the firm has paid for its goods. the Gross Profit Margin was only 4.It has remained pretty much stable throughout the whole two years. It increased slowly in next year. than it increased rapidly and becomes 7.97% in the year 2006-07. 1.57% So. It indicates that sarvottam dairy is managing its Sales and Cost of Goods Sold very well but it still need to improve it. It is primarily a test of the efficiency of purchases and sales management Following shows the Gross Profit Margin of SARVOTAM DAIRY in different years: YEAR 2006-07 2007-08 2008-09 GROSS PROFIT 7502298 15778976 28119845 SALES 150849860 2168774 371599816 RATIO 4.28% in 2007-08. .(A). Gross Profit Margin (GPM) = Gross profit / Gross turnover Gross Profit = Sales – Cost of Goods Cost of Goods = (Opening Stock + Net Purchase + Procurement Expenses + Production Expenses – Closing Stock) Gross profit ratio is an indicator of the extent of average mark-up on cost of goods.

Net Profit margin = Net profit / sales x 100 Net profit margin ratio establishes a relationship between the net profit and sales and indicates management’s efficiency in manufacturing administering and selling the products.37% 035% 0.60% The Net Profit Margin was 0.2. This ratio is the overall measure of the firm’s ability to turn each rupee sales into net profit Following shows the Net Profit Margin of SARVOTAM DAIRY in different years: YEAR 2006-07 2007-08 2008-09 NET PROFIT 560044 747678 2192289 SALES 150849860 2168774 371599816 RATIO 0. in turn. Profit margin also declined because in 2006-07 SARVOTAM DAIRY used a lot of long-term debt. generally occurs due to inefficient operations. High cost. which brought the Net income down .35% in 2007-08 and then again increased to 0.60% in 2005-06. The main reason of the law profit margin is high cost. including interest. and preferred stock dividends have been deducted. taxes. This invariably resulted in more interest cost.37% in 2005-06. decrease to 0. Net Profit Ratio / Net Profit Margin: Net profit margin measures the percentage of each sales dollar remaining after all costs and expense.

63% 99. Operating Expenses Ratio: Control over operational expenses is an important requisite for successful management. Operating ratio indicates proportion of net sales that have been absorbed by the expenses on operation. Following table shows the Inventory Turnover ratio of SARVOTAM DAIRY in different years: YEAR TOTAL OPERATING EXPANSES 2006-07 2007-08 2008-09 Analysis7729642 16007200. Maintenance & Depreciation + Selling and Distribution Expenses + Necessary Provisions A higher operating expenses ratio is unfavorable since it will leave a small amount of operating income to meet interest. Its formulation is as below: Operating Ratio = Total Operating Expenses Net Sales * 100 Operating Expenses = Cost of Goods Sold + Office and Administration Expenses + Repairs. dividends etc. This ratio relates to the total operating expenses (i. total expenses nonoperating expenses) to net sales and is expressed in percentage.65% 96.(B)RATIO OF EXPENSES TO SALES: 1.e.24 26609943 150849860 2168774 371599816 99. certain expenses are within the management policy.39% SALES RATIO .

Analysis shows a very high operating ratio in sarvottam dairy in year 2006-07. The operating expanses shows decreasing trend but it need to decrease further for better return(profit).39% which would result into increase in the net profit. . In the current year 2008-09 the operating ratio decreases to 96. There is a slight increase in operating expanses in 2007-08. Than there is decrease in operating expanses in the year 2008-09.

It is due to increase in the net profit.(C) RETURN ON INVESTMENT RATIO: 1. Return on Equity Capital: Return on equity capital is calculated by dividing net profit after tax by total equity capital. It again increases in the next year and becomes 49%. It is higher in the current year. So the return on equity can be satisfied for SARVOTTAM DAIRY. It is calculated as: Return on equity capital = Profit after tax Equity capital * 100 Following table shows the Inventory Turnover ratio of SARVOTAM DAIRY in different years: YEAR RPOFIT AFTER TAX 2006-07 2007-08 2008-09 AnalysisAnalysis shows that return on the equity in the year 2006-07 is 26% which decrease in the year 2007-08 and becomes 23%. The return on equity is continually increasing. 560044 747678 2192289 2164700 3186800 4460800 26% 23% 49% EQUITY CAPITAL RATIO .

therefore.07% EQUITY CAPITAL RATIO . In 2006-07. The ratio of the return on investment has 2 components.93% in following year and increased further to 7.2. Maximization of profit is the natural instinct of every businessman. NET profit The Ratio is computed as = Net Profit (adjusted) * 100 Capital Employed Following table shows the Return on capital employed of SARVOTAM DAIRY in different years YEAR RPOFIT AFTER TAX 2006-07 2007-08 2008-09 AnalysisAnalysis shows a gradual increase of Return on capital employed over the last three yeas. Return on Capital Employed: Return on capital employed is considered to be the prime or principal ratio. the ratio was 3.Comparatively there is the less return on capital employed but it shows increasing trend. It throws the light on the over – all profitability of the business. is yielding. judged by the extent of return on the amount invested in the business.50% then it increases to 3. it is good for future but it still need to improve 560044 747678 2192289 16017017 18981993 31006569 3. The success of the business is.50% 3.93% 7.07% in the year 200809. which means how much. earning the amount investment in the business. Capital employed 2. Profit is the chief motive of organizing business enterprise. 1.

It is otherwise known as revolving or circulating capital It is nothing but the difference between current assets and current liabilities. .4. i.5 WORKING CAPITAL ANALYSIS “Working capital means the part of the total assets of the business that change from one form to another form in the ordinary course of business operations.Working and 2. Capital The word working means day to day operation of the business. * Long term funds are required to create production facilities through purchase of fixed assets such as plants. machineries. whereas the word capital means monetary value of all assets of the business. payment of wages. lands. . buildings & etc * Short term funds are required for the purchase of raw materials.e. Working Capital = Current Asset – Current Liability. Working capital is of major importance to internal and external analysis because of its close relationship with the current day-to-day operations of a business. and other day-to-day expenses. Working Capital: - Working capital may be regarded as the life blood of business. Every business needs funds for two purposes.” Concept of working capital:- The word working capital is made of two words 1.

Concept of working capital • • Gross Working Capital = Total of Current Asset Net Working Capital = Excess of Current Asset over Current Liability Current Assets Current Liabilities • Cash in hand / at bank • Bills Payable • Bills Receivable • Sundry Creditors • Sundry Debtors • Outstanding expenses • Short term loans • Accrued expenses • Investors/ stock • Bank Over draft • Temporary investment • Prepaid expenses • Accrued incomes . .

55 17212791 2485 30206990 .Working capital analysis PARTICULARS CURRENT ASSETS: DEPOSITS ADVANCES&OTHER DUES CLOSING STOCK BANK BALANCES CASH IN HAND TOTAL CURENT ASSETS LESS CURENT LIABLITIES DEPOSITES PRVISIONS TOWARDS PAYMENT OF MILK CO OPERATIVE SOCIATIES PROVISIONS FOR CURRENT DEBTS TOTAL CURRENT LIABLITIES NET WORKING CAPITAL TOTAL APPLICATION OF FUNDS 9466870 9797868 3742328 23007065 11482776 12990452 12253129 6374366 31617949 14405158 12714049 25024794 9665232 47404074 -17197084 676468 7540982 2669189 134425 12827579 4105544 439686 17819926 5023399 06-07 07-08 08-09 409244.26 6921494.26 228406 11524289 849.26 144394.

it increases every year. . AS we can see from the above table that in 2006-07.[A]TOTAL CURRENT ASSETS YEAR CURRENT ASSETS 35000000 30000000 25000000 20000000 15000000 10000000 5000000 0 CURRENT ASSETS 2006-07 2007-08 2008-09 2006-07 11524289 2007-08 17212791 2008-09 30206990 INTERPRETATION. In 2006-07 the current assets are 11524289 which increases by 5688502 And becomes 17212791 in 2007-08 . As the current assets shows the increasing trend . the total current liabilities are 11524289 which increases in 2007-08 and becomes 17212791. It shows the progressing trend of sarvottam dairy. Again it increases in 2008-09 and becomes30206990. the working capital again increases by 12994199 and becomes 30206990.

it increases by 8610884 and reaches at 31617949 in 2007-08. Sarvottam dairy should make the efforts for reducing its current liabilities to maintain its working capital. THE above table shows that current liabilities in 2006-07 is 23007065. . it again increases by 15786125 and becomes 47404074. The table shows the increasing trend of current liabilities that is liabilities of sarvottam dairy increases from year to year.TOTAL CURRENT LIABILITIES YEAR 50000000 40000000 CURRENT LIABLITY 2006-07 2007-08 2008-09 2006-07 23007065 30000000 20000000 2007-08 31617949 2008-09 47404074 0 CURRENT LIABLITY 10000000 `INTERPRETATION. It indicates negative feature for dairy’s progress.

This is not good for Dairy’s operating. The above table shows that in year 2006-07 working capital of sarvottam dairy is -11482776. SARVOTTAM DAIRY should try to improve this to avoid the risk of operating… .NET WORKING CAPITAL YEAR WORKING CAPITAL 0 WORKING CAPITAL 2006-07 -10000000 2007-08 -17405158 2007-08 2008-09 -5000000 2006-07 -11482776 2008-09 -17197084 -20000000 -15000000 INTERPRETATION. It also decreases in the next year slightly. It again decreases and becomes -17405158 in 200708.

2. Purchase of milk is also increasing. 6. Current assets of SARVOTTAM DAIRY are less than the current liabilities.. SARVOTTAM DAIRY is paying 15% share dividend every year.1 FINDINGS 1. The growth in the year 2008-09 is remarkable.. It is not good for the Dairy. Investments of the SARVOTTAM DAIRY remain constant during the 3 years. 5. Working capital of the SARVOTTAM DAIRY is in negative. Current liabilities of Dairy are also increasing. Commonly it can be said that Dairy is on the way of progress…. it is not good for Dairy.Highest ever net profit of Rs. Net profit of the Dairy is also increasing. The number of members is increasing from year to year. It shows that the Dairy is on the way of progress.5. This shows step towards the growth. The share capital of the SARVOTTAM DAIRY is continuously increasing during the 3 years. It is positive in all the fields. Lack of advertisement can be said as weak point of the SARVOTTAM DAIRY . 8. . 11. Currently there are 76 members of this co-operative society. 10. 12. 4. 7. 2192289 9. it shows reduction in the operating expanses and increase in the sales. 3.

. SARVOTTAM DAIRY needs to decrease its operating expanses so that the net profit can be enhanced. Dairy should try to decrease the cost of selling the goods .2 SUGGESTIONS 1. There is a training need in the employees of SARVOTTAM DAIRY. It should try to cover as much as possible. SARVOTTAM DAIRY need to improve its current assets or on the other hand needs to decrease the current liability to maintain the adequate amount of working capital.5.so that net profit can be increased. 6. Dairy should increase the proprietors’ capital. 4. 5. Dairy need to improve its advertisement. it reduces the burden of interest. 2. the Dairy liable to pay and as a result it enhances the net profit. 3.

I have acquired a lot of knowledge of practical aspects of firm.18% as compared to previous year.8. it is expected that the Dairy would be in a position to maintain the growth in future years. Total turnover of the dairy has shown an increase of 29. The no of members of the Dairy is also increasing.21% as compared to previous year which can be said a fabulous growth. The share capital of the dairy has increased rapidly in SARVOTTAM DAIRY compared to previous year. It increases by 193. Net profit of the dairy is also highest in the current year. . . In the current year 2008-09.Dairys total production and selling are increasing. It can be said about the dairy that it is on the way of progress. CONCLUSION I have taken practical knowledge of SARVOTTAM Dairy’ financial position.

BIBLIOGRAPHY: NAME OF BOOK 1.Pandey C.9. Research Methodology 4. Financial Management 3. Financial Management 2.M.R. Annual reports of the SARVOTTAM DAIRY AUTHOR Khan & Jain I.Kothari .

APPENDIX BALANCESHEET OF THE YEAR 2006-07 LIABILITIES Paid-up-capital Share reserve Reserves and other funds Current liability Deposits Provision toward the payment milk co-op society Provision for current liability Net profit Loans and liabilities(long term) 2006-07 2164700 3590 886452 ASSET Fixed asset Investment Current asset Deposits 2006-07 28134745 106000 7540982 676468 2669189 409244 228406 9466870 9797868 3742328 740950 1296227 6 Advances and other dues Bank balance Cash on hand Closing stock TOTAL 3976503 5 TOTAL 39765035 .

BALANCESHEET OF THE YEAR 2007-08 LIABILITIES Paid-up-capital Share reserve Reserves and other funds Current liability Deposits Provision toward the payment milk co-op society Provision for current liability Net profit Loans and liabilities(long term) 2007-08 3186800 3929 4152845 ASSET Fixed asset Investment Current asset Deposits 2007-08 34028828 106000 134425 12827579 144394 849 4105544 1299045 2 1225312 9 6374366 747678 1163861 9 Advances and other dues Bank balance Cash on hand Closing stock TOTAL 5134761 9 TOTAL 51347619 .

BALANCESHEET OF THE YEAR 2008-09 LIABILITIES Paid-up-capital Share reserve Reserves and other funds Current liability Deposits Provision toward the payment milk co-op society Provision for current liability Net profit Loans and liabilities(long term) 2008-09 4460800 37609 14852845 ASSET Fixed asset Investment Current asset Deposits 2008-09 50289944 106000 439686 5023399 6921494 2485 5023399 127140049 25024794 9665232 2192289 11645135 Advances and other dues Bank balance Cash on hand Closing stock TOTAL 80602934 TOTAL 80602934 .

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