CHAPTER 6 FINDINGS, SUGGESTIONS AND CONCLUSION Findings

1. The debt component in the capital employed in Milma is higher so greater the risk of the undertaking. 2. Solvency ratio of the company is satisfactory so this have a sound financial position. 3. Liquidity ratios of the company are satisfactory. 4. Proprietary ratio is low so the financial commitment of owners to the business is low. 5. Debt capitalization is low so the financial risk of Milma is low. 6. In 2012 and 2011 the company has excess debt repayment capacity. 7. The company could efficiently utilize its funds. 8. The production efficiency of manufacturing is not good. 9. ROI does not cover the average cost of funds for the business so it does not increase the wealth of the company. 10. Net profit ratio shows low level than expected. 11. It is a milk co-operative society and it has not strictly adopted KSCS Act so, it cannot take any decision contrary to this act even though it is favorable. 12. The company has a effective debt collection set up therefore no chance for bad debt out of overdue.

Suggestions
1. The company should take care to maintain the standard absolute liquidity ratio. 2. New and improved products, which suit the needs of the consumers to the best, should be developed. 3. R&D has been concentrating more on reducing the cost of production. It should also concentrate on improving the quality of products. 4. The company should take care of reducing cost of production for increasing profit. 5. The companys product should be more competitive. 6. The company should take care to maintain this uptrend in future also. 7. The company should reduce the debt component of capital employed for reducing the risk 8. Milma should increase the share capital for increasing the members commitment to the company. 9. The company can utilize excess repayment capacity for reducing long term debt. 10. The company must increase its production efficiency through new technique for increasing profitability. 11. The company should reduce the cost of production through proper cost control and cost technique. 12. Necessary steps should be taken to improve current ratio.

Conclusion
Milma has made appreciable progress during all these years since its establishment. It is showing a trend of growth, both in respect of turnover and profit. There is a significant improvement in the overall performance compared to the former periods. The financial performance of the company shows an increasing trend or a favorable trend during the period of the study.