Project Report on

“ANALYSIS OF FINANCIAL PERFORMANCE”

Submitted By

KAVYA A.S

(1GA19MBA42)

Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY,
BELAGAVI

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION
Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

KC. SUBRAHMANYA Mr. MANJESH

Associate professor, Finance department
Department of MBA BAMUL
Global Academy of Technology, Bengaluru
Bengaluru

Department of Management Studies

Latitude fintech Pvt. Ltd.and Research Center
JP Nagar
Bengaluru 560076
GLOBAL ACADEMY OF TECHNOLOGY
Rajarajeshwari Nagar, Bengaluru- 560098
EXECUTIVE SUMMARY

This Project justified “A Study on Financial Performance at BAMUL by using the ratio analysis,
comparative statements, common size statements and trend percentages”. Has been undertaken with the
objective of knowing the financial status of the company and its performance. The data collected has
been analyzed and interpreted with the suggestions based on the project.
From the year 2015 to 2020 the financial statements are taken for the performance analysis of the
“BAMUL” and used to calculate the overall assets and liabilities items of tabulation and column chart
are used for the presentation of the data.
The report’s first segment is devoted to a company profile. It includes an overview, vision, mission,
quality policy, product profile, future growth.
The second section deals with the conceptual background and literature review which includes of
theoretical background and reviews.
The report’s third section deals with research design which includes the statement problem objective of
the study scop and research methodology and limitations.
The fourth segment consists of data analysis and interpretations where the various tools such as ratios,
trend percentage, comparative statements, common size statements are used to know the financial
performance of the company
The last section in project report is findings, suggestions and conclusions.

DECLARATION

I hereby declare that the Project work report entitled “ANALYSIS OF FINANCIAL
PERFORMANCE” undergone at BAMUL, Bangalore is prepared by me under the
guidance of my internal guide KC. SUBRAHMANYA an Associate Professor,
Department of Management Studies and Research Center at Global Academy of
 Technology, Raja Rajeshwari Nagar, Bangalore. The information in this report is based
on the information collected at BAMUL, under the guidance of Mr. Manjesh and other
department officals.

I also declare that the project report is towards the partial fulfilment of the Master of
Business Administration course of Visveswaraya Technological University, Belagavi.

Further, I declare that this report is an Independent work and has not been submitted to
any degree/ diploma from any other institutions University.

Date: Signature of Student: Kavya AS

Place: USN: 1GA19MBA42
 ACKNOWLEDGEMENT

The satisfaction that accompanies the successful completion of any task would be incomplete without
the people who have made it feasible with constant guidance and encouragement served as a beacon
light and crowned our efforts with success.

I consider it as my privilege to express through this report a few words of profound gratitude and deep
regards to all those who guided me in completing this project work. I would like to thank MR.
MANJESH of BAMUL and for all their department officals for there unvarying and valuable guidance
throughout the project work.

I would like to express my heart-felt gratitude to Dr. RANA PRATHAP REDDY, Principial at Global
Academy of Technology of his valuable suggestions and moral support throughout the course. I
sincerely thanks to our internal guide K.C SUBRAHMANYA, AST PROF, Department of management
studies and research center, for supporting and guiding me as my internal guide.

I sincerely thank to Mrs. NEENA PRASAD.HOD, Department of management studies for immense a
support and guidance.

Last but not the least, it is my proud privilege and I have to search words to express my indebtedness to
my parents and all my friends who helped to complete the project.

This has been a great learning opportunity for me and I am highly indebted to above people for giving
this opportunity.

KAVYA A.S

(1GA19MBA42)
 TABLE OF CONTENTS

CHAPTER
PAGE
S CONTENT
NUMBER

CHAPTER 1 Introduction 1- 34

1.1 Introduction about Project Study

1

1.2 Industry profile 1-4

1.3 Company profile 4-10

1.4 Vision 10

1.5 Mission and Quality Policy 11-12

1.6 Product profile 12-18

1.7 Areas of Operations 19

1.8 Infrastructure facilities 20-25

1.9 Competitor’s information and SWOT analysis

25-27

1.10 Future Growth and Prospects 27

1.11 Financial Statements 28-34

CONCEPTUAL BACKGROUND AND LITERATURE REVIEW

CHAPTER 2
35-46

Theoretical Background
2.1 35-42

2.2 Meaning of financial performance 35

Nature, objectives, areas of operation, significance of financial

2.3
performance
36-37

2.4 Tools of financial performance 37-38

2.5 Steps, limitations, users, functional areas, structure

39-42

Literature reviews
2.6 43-46

REEARCH DESINGS
CHAPTER 3 47-48

3.1 Statement of problem 47

 3.2 Need for study 47

3.3 Objective of study 47

3.4 Scope of Study 47

3.5 Research methodology 47-48

3.6 Limitations 48

ANALYSIS AND INTERPRETATIONS

CHAPTER 4 49-75

FINDINGS, SUGGESTIONS AND CONCLUSIONS

CHAPTER 5 76

BIBLIOGRAPHY
CHAPTER 6 77
 LIST OF TABLES

TABLE PAGE NO
PARTICULARS
NO

1.12(a) Profit and loss account 28-31

1.12(b) Balance sheet 32-34

4.1 Current ratio 50

4.2 Quick ratio 51

4.3 Stock Turnover ratio 52

4.4 Debtors Turnover Ratio 53

4.5 Creditors Turnover Ratio 54

4.6 Working Capital Turnover Ratio

55

4.7 Net Profit Ratio 56

4.8 Return on Investment Ratio 57

4.9 Solvency Ratio 58

4.10 Fixed Asset Ratio 59

 LIST OF GRAPHS

CHART NO PARTICULARS PAGE NO

4.1 Current Ratio 50

4.2 Quick Ratio 51

4.3 Stock Turnover Ratio 52

4.4 Debtors Turnover Ratio 53

4.5 Creditors Turnover Ratio 54

4.6 Working Capital Turnover Ratio

55

4.7 Net Profit Ratio 56

4.8 Return on Investment Ratio 57

4.9 Solvency Ratio 58

4.10 Fixed Ratio 59

 CHAPTER 1
INTRODUCTION, INDUSTRY PROFILE AND COMPANY PROFILE
 CHAPTER -1

INTRODUCTION ABOUT THE PROJECT WORK

1.1 INTRODUCTION ABOUT THE PROJECT WORK

Project work offers realistic experiences to the students through coming across the links among their
academics and in the area of jobs. To help individuals in the improvement and implementation of
major research projects in order to culminate the experience of the project. From my personal
experience it is very beneficial compare to concept realistic is more beneficial to study more, rather
than concept knowledge has to be more. From this project work I actually have learnt plenty about
the management of a company.
Students are expected to take a lively position of locating the right project program in the
organization for the realistic work experience and that is a part of project experience.
I was given an opportunity to go through my project work in “BAMUL” that is one of the most
trusted dairy manufactures in India. I carried my project work on the topic “Financial Performance”
which was my interest to understand about the connection between the Balance Sheet Profit &loss
account they play a prominent role in making the financial decisions.
The project period was for six weeks which was placed in the course of 4 th semester of MBA
program. began working as a helper in the finance department, where they would not be able to
share all financial details due to the confidentiality of the information. As a result, we were required
to use the company’s resources to prepare a report based on the work that had been assigned to us.
1.2 INDUSTRY PROFILE:
Dairy industry sector takes a crucial place in farming. they will include the production of milk and
the assembly of milk, as well as its preparation and purchasable also because the manufacture of
dairy products. The governments of Indian constitute the “National Dairy Development Board” in
the year 1956 Shri – Lalbahudhru Shastri initiated up on NDDB. the top office. This board has been
registered under a society’s registration act and charitable trust.
DAIRY INDUSTRY: OVER THE TIME
Traditional Dairying
Whole milk were traditionally and typically done in the villages across in the India. Even nowadays
the majority of the countries raw milk will come from the cow owners in the rural areas. Farmers
often used the milk mainly towards their own consumptions in the last decades. They transformed
the majority of the milk into the butter, drawn butter, butter, butter milk which have been necessary
food products for the family. As there were no selling facilities for milk back then, the excess milk
was typically within the villages or in nearby city markets. Later this situation reversed and the
majority of the excess milk was either sold to relevant users by the cattle owners or collected by
middlemen to whom sold it in the urban market.
Modernization of Dairy Industry:
With the implementation of India’s first 5-year plan in 1951, modernization of the milk
industry gained any transaction. The preliminary government movement in this regard
consisted of Co- ordination milk schemes for the large towns in order to satisfy the needs for
clean milk amongst those expanding economy in city regions. Schemes- Programs were to
make it simpler to arrange for the efficient transport accurate control of milk raised in rural
locations to dairy plants in urban centers and perhaps even the delivery of processed milk to
resident of the city. The operating milk scheme were proven to be very beneficial for the
improvement of the dairy industries in India currently.
DAIRY INDUSTRY IN INDIA:
The Indian Dairy has a fast-developing industry in view that independence a greater number
of present-day milk vegetation and gadgets production vegetation had been set up those
compose dairies were successfully interested in the same old commercial enterprise
generation of sanitized milk and milk products. The industry had an improvement in the India
had twin targets of increasing overall milk deliver on business foundation and diversifying
agricultural shape via way of means of growing dairy as a supplementary or main profession
which might assist growing the profits of the small and marginal agricultural and/or landless
laborers. Within the world, world’s biggest milk producer’s and purchasers of the milk.
A most important purpose of the India’s dairy sector is simply having an effective control
over countrywide sources too give a boost to milk manufacturing and improve milk
processing the usage of innovative technologies. Milk enterprise occupies a important spot in
creature farming. It is an industry set up for harvesting of animal milk for human utilization;
it's far an area that process, distributes and sells dairy merchandise. Milk industry relies upon
on milk it's miles the uncooked cloth for dairy merchandise milk is the nature’s best meals
for all ages.
Milk industry occupies a important spot in creature farming. It is an industry installation for
reaping of creature milk for human use, it's miles a gap that procedure, conveys and sells
dairy objects. Milk industry is predicated upon milk; milk is the crude fabric for dairy objects
Milk is the nature’s best nourishment for all ages.
Across the whole of 2003-2014 approximately 110000 dairy sector co-operative’s villages
societie’s with a cumulative of 12 million farming community were prepared to a transfer of
milk to processing devices and consumer without a delay. Until the early 1990’s milk
processing remained. Constrained to co-operative dwelling through authorization. Beginning
in 1991, the Indian dairy field grew nationalized in Phases as part of domestic monetary
reformer’s and commitments to WTO regulations. In March 2002, the authorities scrapped
all regulation’s prohibiting the introduction of new milk manufacturing plants.
A milk industry create has goals of growing complete milk supply on commercial enterprise
premise and differentiating agribusiness form and moreover growing dairy as a prime
occupation which would possibly assist growing the profits of a little & peripheral landless
peasants or agriculturists that dairy industry sector is a critical part of the India economy.
Aside from an healthy significance to milk too human utilization, dairying gives
employments to the vest quantity of humans with none strategies for era of their very own
and located them to gainful paintings so you can empower them to characteristic to the three
countrywide items and win their offer in it. It office work large capability for giving work to
the huge population.
A make-up of milk manufacturing in India sometime characterized towards buffalo’s milks
that also accounting about seventy-six percent of the entire milk introduction equivalent to
ninety- four percent of cow milk in a general milk manufacturing with in the ward. The
essential of dairy animals proceeds as a provider of modest milk as furthermore bullocks.
Livestock maintaining in popular and dairying gives a delivery of vitamins and more profits
to our farmers. Inefficient and horrible maintenance of huge variety of livestock withinside
the context of to be had reassets may be answerable for the fact that despite the despit the
truth that India boasts twelve % additionally dairy animals than the 4 most important
international locations positioned, respectively, India generates plenty much of twelve % of
milk via the one’s main international locations of the world.
The dairy industries are predicted to produce 127.9 million tons of milk in the year and boom
of a five% improvement compared from 2010 to 2011. In 2011-2012 country remains the
nations twelfth largest dairy output This accounting for approximately seventeen% of milk
generating in the business. Milk is already consumed by a greater audience in India. The
sixty- six Round of country wide pattern considerations company information on purchaser
expense confirmed the even as eighty-five% populace a city regions customers milk of them
in houses, merely seventy-six% of the rural location does.
An credit score of the large fulfilment at the back of the dairy industry need to be attributed in
great degree to Operation Flood which changed into a rural improvement software
commenced through India’s NDDB in 1970. One of the biggest of its kind, this system goal
turned into to generate a national milk matrix. A led to making-India 1 in every among
biggest producers of milk &products of a milk. A fulfilment at the back of operation Flood
turned into Gujarat primarily based totally Amul which in flip have become a mega employer
primarily based totally at the cooperative approach.
Within the past 3 centuries the Indian dairy industries has experienced massive growth. The
Indian industry is not so much a vital producers of a necessary food commodity but it is also
one of the country’s largest employers in rural locations. further to semi city and concrete
region. It gives a possibility to about eight corers’ households throughout India.
UNITS OF KARNATAKA MILK FEDERATION:
It has succeeding units running without delay below the power:
 Mother-dairy inside Yelahanka and Bengaluru.
 Nandini’s Hi-Tech item manufacturing site at Channarayapatn
 Nandini’s dairy items and KMF’s complexes’, at Bengaluru.
 Cows freed plant in Dharwad
 Nandini brand Sperm Station (previously is known farm animals’ reproduction
plantation)
 Dairy products Packing Plantation in Marathahalli
 The Central Training Institution of Bangalore and Trainee up Institution of Mysore/
Dared
 Ice cream was planted at Bellary.
 KARNATAKA MILK FEDERATION:
The Karnataka Milk Federation (KMF) a Karnataka state’s peak system for milk sector
peasant Cooperatives. Among a milk Cooperatives in the region, it's miles the second biggest
dairy. In south India it stands withinside the first place. Adverting of Milk &Milk items is
one of a centre functions of a milk sector. Under the logo name of Nandhini, it sells cheese,
pedha, paneer, curds, and milk. The federation’s a Milk producer’s affiliation working to
Cooperative Principles. Milk-generating cooperatives can be positioned in almost every
district in Karnataka. The Milk is accumulated from its contributor framers, processed, and
bought withinside the market under the logo of Nandhini. After Amul, this is India’s second
largest milk co-operatives.
It was situated of 1984, located 13 milk dairy unions over the state of Karnataka, that
established the state of Karnataka organization.
As collaboration apex frame of Karnataka, is representing the dairy’s former’s organizations
then its appliance dairy’s developing movements to achieve the succeeding purpose.
 Providing the self-confident and well-paid markets to the milk and milk made out of
from the agriculturist representatives.
 Provides the clean milk to metropolis customers
 The development of small village elevation organization in co-operative society
sections to hold the dairy’s movements.
 It builds the village development from provides the chances for the self-employment
at rural region level, intercepting location to city/ town Area, inaugurate the economic
system and chance for immovable income.
 Within the KMF, there is a production unit known as BAMUL, in which all Nandhini
products are manufactured, in addition to milk, that is packed and distributed to the
dealers and different small distributors, who assists the organization in promoting
goods under the brand name of Nandhini.
1.3 COMPANY PROFILE:
On January 1st, 1958, a pilot scheme to satisfy the Bangalore Milk Market has been initiated
by the Karnataka Department of Animal Husbandry, which would include milk processing
facilities and veterinary hospitals at the National Dairy Research Institute (NDRI). Later in
1962, the Bangalore Milk Supply Scheme has been developed as an autonomous
organization. A joint mission of UNICEF, Government of India, and Government of Mysore
emerged resolved Bangalore Dairy to the humans of Karnataka State on 23rd January 1965
through the Hon'ble Prime Minister Late Sri Lal Bahadhur Shastri, thanks to the support
efforts of the Hon'ble Minister for Revenue and Dairying, Government of Mysore Sri MV
Krishnappa. The Bangalore Dairy scattering over a place of fifty-two Acres of land, the Dairy
had an initial functionality to technique 50000 litters of milk in keeping with day. Bangalore
Dairy underwent a structural alternate in Dec 1975, passed over to Karnataka Dairy
Development Corporation (KDDC). Rural Milk Scheme of Mysore, Hassan and Kudige
Districts become started below operation.
Flood II and which transferred to Karnataka Milk Federation (KMF) in May 1984 as a
successor of KDDC. To cater to the growing demand for milk thru the customers of
Bangalore City, the capacity turned into accelerated to 1. five lakh liters consistent with day
beneath the operation
flood II in some unspecified time in the future of 1981 and later increased to 3.five litters
consistent with day under operation flood III at some stage in 1994.
Bangalore milk union ltd. (BAMUL) turned into installation amid 1947 beneath Neath
approach of overflow through maintenance “AMUL” as its function Model. At modern-day
BAMUL has Bangalore urban, Bangalore rural and Ramanagara Districts of Karnataka
nation as it's miles variety of approach for milk shopping for similarly to supplying milk
inner some elements of Bruhath Bengaluru Mahanagara Palike (BBMP) place as it's miles
commencement the amalgamation is typically endeavoring greater for dairy improvement
and advertising workout in its milk shed place.
The Bangalore Milk Union Ltd this is the peak Body in Karnataka Speaking to Dairy Farmers
Co-agents. It is the second one largest dairy most of the dairy cooperatives with in the nation.
In south India it remains first as a long way as acquisition and further deals. The Nandini is
the typically acknowledges icon for easy as similarly to easy dairy and dairy items.
According to the strategies of the National Dairy Development Board (NDDB), Bangalore
Dairy changed into given over to Bangalore milk union ltd. On 1 st September 1988. The
union is in form for managing the complete milk secured, via way of means of opportune
execution of a somebody paintings undertaking like authorizing of recent outstanding dairy
exceptional in class innovation of 12lakh liters normal new chilling focuses, Hosakote dairy
with making ready restriction of 2lakh liters for each day, new objects rectangular up
similarly coming Kanakapura dairy.
The milk shed area of BAMUL includes 2611 revenue villages. Starting at now the affiliation
has functioning 2163 milk manufacturer co-operative society (MPCS) amongst them 222
milk producers’ women co-operative society in 3519 villages in these 3 districts. In those
MPCS there have been 357145 registered milk producer individuals among them 126287
contributors are women 60972 member belong to schedule caste and schedule tribes.
The company BAMUL specifically focuses on the premium segment of the Karnataka milk
industry. Its temperament of commercial enterprise is largely technology of numerous
decorate milks and curd. The company likewise started operating withinside the milk
segment of the milk business through giving unique enhance milks and exceptional objects to
its buyers. The company is in operation most effective for greater than a decade in Karnataka
from being set up from 1965 with a robust base of life in Karnataka milk market for the
beyond fifty-three years. The organization is customized to fulfil the desires of the clients
from each better and decrease earnings strata of the market. The organization accepts at the
rationality of wearing on business with the factor of making gain in addition to serve the
overall public through giving excellent objects superb flavors to the clients.
The member manufacturers and there are the vital elements of the Union and their
development is the judging yardstick on the performance of the Union’s operation. Hence the
most significance has been given to their development. The Union is making in depth efforts
over the years to arrange MPCSs in an increasing number of villages of the 3 districts in the
milk-shed area.
Importance has been given to enrol an increasing number of milk manufacturers withinside
the villages as contributors of those MPCS’s. While enrolling those participants, greater
emphasis is being accorded to enrol a wider variety of women participants and to prepare
greater women
controlled MPCSs below STEP (Support to Training and Employment Program for Women).
It is heartening to notice that there may be an energetic participation of women/ weaker
sections of the society in all of the dairy improvement sports of the Union. They have turn out
to be mainstay of all the developmental programs of the Union. This has resulted withinside
the build- up of economic advantages to the most susceptible sections of the agricultural
mass.

Total membership i& iWomen iMembership iat iDCS i

340448 344176 347406 351121 358596 349939 352891 355616

111894 118193 121387 122891 127057 124949 126094 127162

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

The philosophy of this co-operative milk producer’s company is to cast off middlemen and
arrange establishments owned and controlled through milk manufacturers, through
employing professionals. Achieve economies of scale of rural milk manufacturers through
ensuring most returns and on the identical time offering healthful milk at reasonable charge
to city customers. Ultimately the complicated community of co-operative business enterprise
need to construct a strong bridge among loads of rural manufacturers and millions of city
customers and attain a socio- monetary revolution in the village community.
BAMUL has been registered below MMPO through Central Registration Authority. Today,
the Union has grown to be the most important Milk Co-operative Union in Southern India.
Bamul has been licensed for ISO 22000:2005 and ISO 9001-2000 for great control and Food
Safety Systems.
In recognition to these efforts and achievements, the National Productivity Council (NPC) of
Government of India has conferred “Best Productivity Award” FIVE TIMES and “Energy
Conservation Award” by Bureau of Energy Efficiency (BEE) to the Union.
ORGANISATION STRUCUTRE:

Managing Director

General General General General General General General

iManager iManager iManager iManager iManager iManager iManager
iProcurmen iFinance i iSystem i iProducti iAdminist iTechnica iMarketin
ti on i ration i li gi

Each General Managers will be having following members under them such as
 Deputy Manager
 Administration Manager
 Officers
 Superintendent
 supervisor
 Assistants

Establishment of union
 Bengaluru Milk producer’s societies union limited was established on 16th November
1976.
 After the bifurcation of the above union, into separate union for Bengaluru Districts
(Urban and Rural) and Kolar district, Bengaluru urban and rural Districts co-operative
milk producer’s societies union ltd (BAMUL) on 23rd March 1987.
 Bengaluru dairy was taking over by BAMUL on 1st September 1988.
 Bengaluru mega dairy started functioning on 17th December 2000.
 MMPO- 1992 Registration No 42/R.MMPO/93
Bengaluru Dairy ISO 22000-2005 and ISO 9001-2000 certified by standard Australia
International (SAI) Global ltd., a reputed Australian based company during 2006.
The business enterprise BAMUL mainly focuses on the top-class phase of the Karnataka
Milk industry. Its temperament of commercial enterprise is largely technology of numerous
enhanced milks and curd. The company likewise started operating withinside the milk
segment of the milk of the milk commercial enterprise through giving unique better milks
and unique items to its buyers. The organization is in operation most effective for greater
than a decade in Karnataka from being hooked up from 1965 with a strong base of lifestyles
in Karnataka milk market for the beyond fifty-three years. The enterprise is customized to
fulfil the desires of the clients from each better and decrease profits strata of the market. The
enterprise accepts at the rationality of
carrying on business with the factor of creating benefit in addition to serve the overall public
through giving brilliant objects incredible flavor to its consumers.
Clean Milk Production – This is an incitive that is been taken through the Bangalore Milk
Union to provide the Milk with high quality. From the start level till the Milk is being
reached to consumers the whole thing is been accomplished thru machines, there isn't always
even a single human hand used on this process, as human hands can also additionally spoil
the microbiological great. So, the Milk is procured through the automatic Milk procuring
machine and without delay it is been shifted to the Bulk Milk Coolers and packed to the
packets withinside the dairy through the machines and transported to the retailers thru the
coolers for bringing extra quality. This is all been knowledgeable to the Cow proprietors for
purchasing a great quality series of Milk. Training is given to the manufacturers and
additionally the Milk is accumulated withinside the SS cans rather than the usage of the
Aluminum cans to keep the quality of the Milk.

OBJECTIVES:
 To provide quality Milk and milk products to urban consumers at competitive prices.
 To facilitate rural development by providing opportunities for self- employment at
village level, thereby preventing migration to urban areas, introducing cash economy
and opportunity for study income.
 To provide technical input services like veterinary services, artificial insemination,
supply of balanced cattle feed and fodder seed material etc., to milk producers.
 To provide assured market and remuneration price for milk produced by the farmer
members of the co-operative societies.
 To organize Dairy Co-operative Societies at Village level and dissemination of
information like good dairy animal husbandry and breeding practice’s and clean Milk
Production through Extension Services.
VARIOUS SUBSIDIES/ INCENTIVES EXTENDED FOR PRODUCTION
ENHANCEMENT:
 Rs. 3,00,000 grants for construction of new MPCS building.
 Milk bill Advance- Interest free up to 1.5 lakhs
 Books and materials for commissioning of new MPCS
 Testing equipment’s at 50% subsidy for new MPCS
 Maintenance charges for BMCs
 Quality Incentives for MPCS staff
 Subsidy of Rs.50/ for General & low-income group and Rs.40 for SC/ST members for
Yashashwini Health Insurance
 Subsidy of 50% for supply of Semen straw and LN2 for A.I work
 A.I (Rs.20) &Calf born (Rs.20 per Female Calf) incentives for A.I workers
 Free Periodic Mass De-Worming Program
 Chaff cutters- 50% subsidy
 Milking Machines-50% subsidy
 Cattle insurance – 50% premium subsidy.
 Godharshakthi – 50% Subsidy
  Cow Mat – 50% Subsidy
 Cow Shed – Rs.40,000/- per Shed

OTHER SERVICES:
 Incentives to milk producers Rs.5/litter under Ksheeradhara Scheme by GOK
 Progeny Testing Scheme under NDDB and KMF
 Ration Balancing Program, VBMPS & FD under NDP-I & NDP-II by GOI
 Calf Rearing Scheme under GOI / RKVY
 Yashashwini Health Insurance under GOK
 GOI Sponsored STEP Program
 Distributing Milk powder to school children under Ksheera Bhagya Scheme by GOK
 Clean Milk Production Awareness Program
 Training Programs to MPCS Staff, Managing Committee Members & Producers In
KMF CTI.

Awards and Achievement

 Bureau of energy efficiency, Govt of India conferred BAMUL has been awarded 2 nd
Place for the achievement in energy conservation for the year 2005 in Dairy Sector
 Karnataka Safety Council, Karnataka Govt conferred BAMUL has been awarded 1 st
place in best safety Industrial Boiler Maintenance in the year 2007
 Karnataka Renewable Energy Development Ltd (KREDL) Govt of Karnataka
conferred BAMUL has been awarded 2nd place for the achievement in energy
conservation for the year 2008-09 in Dairy Sector
 The National Productivity Council (NPC) of Government of India has conferred “Best
Productivity Award” for Five times

BAMUL AT GLANCE:
Procurement & Input
Milk Producers Co-operative Society (MPCS) 2212
Women Milk Producers Co-operative Society (WMPCS) 226
Inhabited Villages 3519
Milk Producer Members 3,55,616
Milk Procurement Routes + BMC Routes 150
Artificial Insemination Centers- Single 146
Cluster 204
Processing Plants Capacity/Day (In Lakhs) Procurement/Day
(In Lakhs)
Bangalore Dairy 10.00 15.38
Hosakote Dairy 2.00 1.68
Byrapatna Chilling Center 2.00 1.80
Doddaballapura Chilling Center 2.00 1.07
Anekal Chilling Center 1.50 0.64
Solur Chilling Center 2.00 1.26
Vijayapura Chilling Center 2.00 1.07
Kanakapura Chilling Center 2.00 1.75
Bulk Milk Coolers 6.91 6.07
Marketing & Sales
Number of Distribution Routes 368
Retailers 2008
Wholesale Dealers -
Franchisee Outlets 81
Milk Parlors 51
Transporter Cum Distributor 41
Finance 2019-20
Total Share Capital (2019-20) (Rs in Lakhs) 7463
Annual Turnover (2019-20) (Rs in Lakhs) 247416
Net Profit (2019-20) (Rs in Lakhs) 2753

1.4PROMOTERS,VISION:

PROMOTERS
 The Bangalore urban, Rural and Ramanagara District CO-operative Milk Producers
Societies Union Ltd. It is the primary Promoters of the Bangalore Journal.
VISION:
 Model Co-operative Milk Dairy in the country.
KMF is already a model co-operative dairy in the Karnataka state with highest market
share and customer satisfaction and further plans to become the same in the country
level.
1.4 MISSION AND QUALITY POLICY:
Mission
 Ushering Rural Prosperity in the lives of members Milk Producers.

 The mission of BAMUL is focused on societal marketing concept, which means the
mission of BAMUL is directed towards the prosperity, well-being and stabilizing the
income of milk producers in the rural part in the area of operation.
 BAMUL organises a Consumer awareness programme as a part of Marketing
Development to create awareness of Nandhini Milk through personal contacts (Door
to door campaigns, Organisational Meetings, School Children, etc.).
 Milk production Unit within the campus to manufacture Butter, Ghee, Peda,
Flavoured Milk, Spiced butter Milk, Paneer, Set Curds, etc.
 BAMUL is planning a new project to convert Hosakote chilling centre into a 2 LLPD
(Lakh litre of milk per day).
 Expand a Mega dairy with a capacity of 6 LLPD upto 10 LLPD, with the World class
standards products.
 The strategy of Bangalore Milk Union is “Procure More, Sell More and Serve More”
and reaping the benefits of economics of Scale.
 Importance has been given to enrol more and more Milk products at the rural areas.
 Ultimately, the relationship between the rural producers and the Urban consumers and
achieve Socio-economic revolution in the village Country.
 Achieve economies of scale of rural milk producers by ensuring maximum returns
and at the same time providing lumpsum Milk at a reasonable price for urban
consumers.
 The main aim of the co-operative Milk producers is to eliminate the middlemen and
sell the products directly to the consumers through their own retail stores.

QUALITY POLICY:
Bangalore Milk union is committed to make certain the protection of its milk and milk
merchandise supplies to its clients through steady communication with all of the parties
concerned withinside the meals chain to result in best fine and superior technology and
enhancements to deliver the Milk to the purchasers through the use of all of the units like
Procuring, Processing and Marketing Departments to deliver a properly packed Milk and
Milk products to the end customers with excessive quality.
 The raw milk quality at member milk producer’s co-operative’s societies is
continuously improved by educating the members about clean milk production
technique and commissioning of bulk milk coolers.
 Ensure that all the batches of milk, and milk products marked conforms to statutory
and customers’ requirements.
 Adopt the scientific processing method.
 ISO 22000 documented and under implementation

1.6 PRODUCTS PROFILE:

 Nandini toned milk: clean as well as pure milk containing 3% fatness and 8.7%
SNF. Obtainable in 250ml, 500ml, 1liter packs.
Have to use the milk within 1 day from the date of
packing.

 Double toned milk: Whole milk has 3.5% fat, toned (or low-fat) milk has 2% fat,
double toned has 1.5% fat and skimmed milk has
0% fat. Toned milk is a good option if you have
high cholesterol levels or your body mass index,
or BMI, is in a higher-than-healthy bracket. But
don't delete it from your diet entirely.
 Nandini Homogenized Toned Milk: It is clean milk containing 4% fatness and
8.5% SNF. This is homogenized as well as pasteurized.
Dependable right through, it will give you more cups of
teas or coffee as well as easily digestable.500ml packets are
available.

 Nandini Shubham Milk: This Shubham milk is well known as special milk.
containing 4.5% Fat and 8.75% SNF. A rich,
creamier and tastier milk Available in 250ml,
500ml, 1liter and 5liter.

 Nandini Full Cream Milk: Nandini Full Cream milk. Containing 6° fat and 9%
SNF. Rich, creamier and tastier milk. Ideal for
preparing home-made sweets & savories’. Available in
500ml and 1 litre packs. Apart from the Milk, the
different Milk products are curds, Butter, Ghee, peda,
Sweetened Lassi, Sweetened Curds.

 Nandini Special Pack: Nutritious Homogenized milk with 4% Fat and 9% SNF (as
against 3% Fat and 8.5% SNF Toned Milk) with
added solids. Much thicker and tastier. Good for
preparing thick curds. Available in 200ml/250ml,
500ml and 1 litre pouches.
 Nandini Good life: Goodlife Cow milk is UHT (Ultra-high-temperature)
processed milk with a minimum fat content of 3.0% and a
minimum SNF content of 8.5 percent. It is appropriate for all
generations. Find packs of 100ml, 200ml, and 500ml, as well as
Tetra brick packs of 500ml and 1 litre, are available.

 Nandini Buffalo Milk: Nandini good life milk is hygienically collected from tract
of Holstein - Friesian cows. It is good for your bones and it
also offers your body with a vitamin and protein enhance. And
with good life milk, you get a no-boil, no-fuss product that is
simple to use and delectable in flavour.

 Nandini Slim Skimmed Milk: Nandini GoodLife Skimmed Milk ... Nandini
Goodlife Skimmed Milk is perfect for people who are
trying to watch their weight; this no-fat milk is
hygienically. Nandini Good Life Slim Skimmed Milk
is an entire pack of nutrition necessary for your health
development and growth.

 Nandini Curd: Nandini curd is made from pasteurized milk that has been toned.
Fresh curd that tastes just like the curd you make at
home. It can be eaten on its own or in conjunction with
cooked rice, or it can be used as an ingredient in a
number of dishes. Pouches of 200g, 500g, 1 kg, and 6 kg
are available.
 Spiced Butter Milk: Nandini Spiced Buttermilk is a balanced and refreshing
beverage. It's made with natural ingredients including
high-quality yoghurt and traditional spices. It is
beneficial to a safe and fast digestive system. Tetra
brick packs of 160 mL and 200 mL are available.

 Nandini Ghee: Nandini Pure Ghee is made from cow's milk using conventional
methods and adheres to the highest quality requirements. The
flavour of purity. This Agmark Special Grade ghee is
guaranteed to make foods, sweet dishes, Kheers, and sweets
taste delicious. Available in Pet Jar with – 100ml, 200ml,
500ml, 1ltr, 5ltr. Also available in sachets with 50ml, 100ml,
200ml, 500ml, 1ltr pouch.

 Besan Ladoo: Besan ladoo is a delicious and mouth-watering dessert for a

delectable experience. This sweet is suitable for
commemorating special occasions. A 250g PP
container is available.

 Nandini Mysore Pak: A most popular sweet of Mysore, Mysore Pak is Prepared
from pure Ghee. Karnataka's traditional sweet
and the most favorite choice of all. Fresh and
tasty Mysore Pak is made from high quality of
Bengal Gram, Nandini Ghee and Cane Sugar.
It’s a delicious way to relish a sweet moment.
Available in 100g, 250g and 500g PP container
shrink-wrapped.

 Nandini Milk Peda: Nandini Peda is a mouth-watering milk dessert. The creamy
milk taste is enough to fill the heart in just one bite. Single
piece carton packs of 25 g, 100 g, and 250 g are available
  Nandini Cheese: Nandini Cheese is a calcium and milk protein powerhouse. It's
tasty and fun. Processed Cheese Spread and Cheddar
Cheese are also available.
available in the following packaging:
200g and 1 kg packets of Cheddar Cheese Blocks.
1kg pouch of processed cheese.
Plain 200g cup, capsicum 200g cup, and pepper 200g
cup cheese spread.

 Nandini Butter: Creamy butter with a silky feel and all the benefits of pasteurized milk.
Every smear of butter contains wholesome nutrition.
Present in 10g, 100g, and 500g blister packs.

 Nandini Panner: As a part of the Karnataka Co-operative Milk Federation, Nandini is a

renowned Indian culinary brand that brings you the
purest and best dairy products. The Nandini brand of
paneer is one of the freshest products that you can use in
a number of dishes. Nandini’s paneer is created by using
the by- product of blanched milk which is drained and
solidified. This product is known as cottage cheese or
paneer. Paneer is well known as a good source of
protein, calcium and other nutrients that help in
preserving good bone health

 Nandini Sweet Lassi: sweet lassie is sterilized Flavoured milk. It is nutritious and
healthy milk and it is available in all the season in
different flavors’. Lassie is most refreshing drinks
made by fresh curd. It is most needed in summer
season.
 Nandini Flavoured Milk: Nandini Flavoured milk is sterilized milk. Nutritive and also
healthful milk and it access able in all the seasons with
multiple flavor’s.

 Nandini Ice-Cream: The ice cream flavors’ are: jackfruit, strawberry, mango, custard
apple, pink guava, litchi, chikoo, tender
coconut, spicy mango and vanilla pastry milk
ice cream, The Greek yogurt will come up
with mango.

 Nandini Dharwad Peda: Nandini Dharwad Peda is a sweet specialty from the land of
Dharwad. It is made from pure milk khova caramelized
and coated powdered sugar.

 Nandini Khova: Nandini Khova made from pure and fresh milk. Adding Khova in
preparations of sweets like carrot halwa, Gulab Jamoon
increases the richness of its tastes.

 Creamy Bite: Nandini Creamy Bite chocolates are made with goodness of rich creamy
milk & delicious cocoa. Indulge yourself in exquisite taste
of Nandini chocolates and pamper your loved ones.
  Nandini Cookies: Nandini Coconut Cookies are crunchy and tasty cookies fun to eat.
Coconut Cookies.

 Good Life Chocolate: Nandini Good Life Chocolates are made with goodness of rich
creamy milk & delicious cocoa. Indulge yourself in
exquisite taste of Nandini chocolates and pamper your
loved ones.

QUALITY and food safety

Bengaluru milk union is committed to make certain the protection of its milk and milk
products provided to its clients through regular communication with all of the events
concerned withinside the meals chain to result in chronic improvement and via way of means
of adopting the maximum contemporary-day and suitable strategies to make sure best
standards in processing and advertising and marketing excessive best milk and milk products
The uncooked milk quality at member milk producers’ co-operatives societies is constantly
progressed via way of means of teaching the participants approximately clean milk
manufacturing strategies and commissioning of bulk milk coolers.
Vaccination process: To prevent the contagious F&M disorder in milk animals, normal meals
and mouth vaccination programme turned into commenced as pilot venture by NDDB all
through the yr 1982-83. During this period, it turned into 100% subsidized later on, the union
is supplying subsidy in keeping with dose of vaccine used. In order the coverage, the dairy
co- operative societies are persevering with this vaccination programmed. During 1996-
ninety- seven the union has spent an quantity of Rs. 18.70 lakhs from its corpus fund

Processing of the raw milk - The uncooked chilled milk acquired through tankers is
pasteurized at the principal dairy. Hi-tech machines do pasteurization of milk. Where milk is
exceeded thru warm plates and opposite to it warm water is exceeded in opposite way. Just
returned to the hot plates, via way of means of this technique the milk is pasteurized and the
identical time they checked the quality of the milk via way of means of testing and checking
the fats content. They preserve a few percent of fats contents for unique kinds of milk they
produce.
 CLASS AND TYPES OF MILK
Sl. no. Types of milk Milk fat (% not less Milk SNF (% not less
than) than)
01 Toned milk 3.0 8.5
02 Standardized milk 4.5 8.5
03 Homogenized Cow milk 3.5 8.5
04 Buffalo milk (Karnataka) 5.0 9.0
05 Full cream milk 6.0 9.0
06 Skim milk Not more than 0.5 8.7
07 Nandini special 4.0 9.0

08 Samrudhi 6.0 9.0

1.7AREAS OF OPERATIONS:
BAMUL is playing an important position with inside the district with the aid of using
overlaying 2037 villages of Bangalore district for his or her dairy activities. The philosophy
of this Co- operative milk producer’s organization is to get rid of middle guys and arrange
institutions owned and controlled with the aid of using milk manufacturers, through using
professionals. Achieve economies of scale of rural milk manufacturers, with the aid of using
making sure most returns and on the same time supplying healthful milk at affordable rate to
city consumers. Ultimately, the complicated community of co-operative company need to
construct a sturdy bridge among loads of rural manufacturers and tens of thousands and
thousands of city consumers and gain a socio- financial revolution withinside the village
community.
However, BAMUL has now no longer restrained its operation to the state itself. It has carried
out operation withinside the country wide and global level also. It supplies Nandini ghee to
different states Andhra Pradesh, Tamil Nadu etc.,
In the worldwide stage the primary locations for Indian dairy merchandise are Bangladesh,
US, and Philippines.
1.8 INFRASTRUCTURE FACILITIES: The method of Bangalore Milk Union is “Procure
More, Sell More & Serve More” and reaping the advantages of economies of scale. In order to
realize this strategy, the Union has carried out the following tasks in order that increasingly more
milk may be procured and processed. This will assist us to serve our manufacturer members
through passing at the most advantages; we're consciously adopting the growth-orientated
strategy of supporting our manufacturers to develop through ourselves growing constantly.

Mega Dairy: Bangalore’s Mega Dairy is one of

the maximum stunning dairies in India. Bureau
of energy efficiency, Government of India
conferred BAMUL has been provided 2nd
location for the success in energy conversation
for the 12 months 2005 in dairy sector. The
Union is licensed for Food protection control
system and Quality control.
Although Bamul sets standards for its products
for better serve to customers, it was now no
longer possible to preserve the requirements
balance
because of guide operations. In designing mega dairy, Bamul looked in the direction of an
automatic device that might permit it to obtain constant quality parameters for every product.
Energy and manpower might additionally be greater successfully optimized and managed,
and all plant device might be integrated.

Products Block –. Milk product Block in the campus to

manufacture Butter, Ghee, Peda, Flavoured Milk, Spiced Butter
Milk, Paneer, Set Curds, etc. Here, the manufacture unit is used to
supply all this product of dairy. There are so many unique units
which can be used to manufacture for different items in the dairy.

Chilling centers – BAMUL has seven chilling facilities

geographically placed around Bangalore in taluka level.
In order to preserve the quality of the procured milk, the
Milk will be chilled at chilling facilities. The SEVEN
chilling facilities are Anekal Chilling centre, Byrapatna
Chilling Centre, Doddaballapura Chilling Centre,
Hosakote Chilling Centre, Kanakapura Chilling Centre,
Solur Chilling Centre, Vijayapura Chilling Centre.
Hoskote Chilling Center : milk processing capacity of 200000 liters per day fully automated
Dairy started functioning from june 2015. Dairy started functioning from june 2015.
Anekal Chilling Center: Anekal chilling centre was started on 12th September 1964 with a
milk chilling capacity of 20000 liters per day. Later the milk chilling capacity was expanded
to 60000 liters per day on 28th February 1999. Presently the milk chilling capacity is
expanded to 100000 liters per day.
Byrapatna Chilling Center: it was started on 19th May 1962 with a milk chilling capacity of
20000 liters per day. Later the milk chilling capacity was expanded to 60000 liters per day.
Presently the capacity is 200000 liters per day.
Doddaballapura Chilling Center: it was started on 5th January 1967 with milk chilling
capacity of 20000 liters per day. Later expanded to 60000 liters per day and again it went for
expansation and went for the capacity of 160000 liters per day.
Vijayapura Chilling Center: was established on 1st February 1955 with a milk chilling
capacity of 100000 liters per day.
Solur Chilling Center: was established on 31st January 1999 with a chilling capacity of
60000 liters per day. Presently the chilling capacity is 160000 liters per day.
Kanakapura Chilling Center: was commenced on 29th March 2000 with the chilling
capacity of 60000 liters per day. Presently the chilling capacity is 120000 liters per day.

BMC (Bulk Milk Coolers) – Bulk Milk Coolers are

designed to chill the milk at number one and cluster society
levels. The chilling temperature of the Milk varies from 4-
five degrees. Bangalore Milk Union is having 198 BMC and
purchasing around 420000 litters consistent with day
through tankers.

Engineering – Karnataka safety Council, Karnataka

Government BAMUL has been provided 1st area in great
protection business Boiler award for boiler maintenance
withinside the 12 months 2007. The union is licensed for
Food protection control system, ISO 22000:2005 via way
of means of standards Australia International Global,
Mumbai.

Information Technology – BAMUL is using

RMRD software program for procurement
process, automated billing can be done as
quickly because the Milk is obtained in AMCU.
BAMUL is the primary union in south India to
have the completely computerized processing
plant. BAMUL is used IT supported services for
all its services for all its activities from
procuring the uncooked milk, processing,
advertising and financial purposes. Bangalore
Milk Union is
offering numerous Technical Input & Extension Services to the milk producer members &
their Dairy animals thru Fourteen Camp Offices located in every Taluk i.e., Anekal,
Bangalore East, Bangalore South, Yelahanka (Bangalore North), Channapatna, Devanahalli,
Doddaballapura, Hosakote, Kanakapura, Solur, Magadi, Nelamangala, Bidadi &
Ramanagara. From those camps the Technical Input services like Mobile Veterinary Service,
Emergency Veterinary Service, Artificial Insemination Service, Periodical Vaccinations,
Balanced Cattle Feed Sales, Mineral Mixture Sales, Fodder development and Fodder Seed
Production, Clean Milk
 Production practices, Extension Services for Cattle Feeding, breeding, insurance, milk
production, BMC tracking activity and Bamul Trust activities etc., might be carried over.

ANIMAL HEALTH AND OTHER ACTIVITIES

The Union is taking unique care to sell the health of the farm animals of member milk
producers. Veterinary centers were prolonged to all of the MPCS. Mobile veterinary routes,
emergency veterinary routes, Health camps, vaccination in opposition to foot & mouth
disorder and theileriosis diseases, etc., are being frequently carried out. De-worming
programme is carried out as soon as in six months. First Aid Services is provided to farm
animals of producer’s members.

Particulars 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

MVR Cases Treated 142520 123699 135767 79417 171852 -
Emergency Cases Treated 145125 149066 171146 154003 188649 200025
First Aid Cases Treated 66234 52729 35352 20919 23538 18201
Health Camp cases Treated 50111 - 64047 13712 61328 25697

* Till Jan'21

ARTIFICIAL INSEMINATION:
Artificial Insemination (AI) has been the primary useful device in dictating this upsurge of
improvement of Dairying in Bamul. Farmers have taken up cross-breeding from manner
returned in 1962. The Union has surveyed and appropriately located AI centres primarily
based totally on livestock population. It is likewise popularized the concept of cluster AI
centres via way of means of provide synthetic insemination at milk manufacturers doorstep in
order that it could enhance the thought price and replace the Single AI centres in a phased
manner. The use of progeny examined semen from “Nandini Sperm Station” is likewise
giving a further improve to the breeding activities.

Particulars 2015- 2016- 2017- 2018- 2019- 2020-21

16 17 18 19 20
Single AI Centers 247 227 206 194 179 146
AI Done Single 126998 110234 95199 82227 75647 51732
Cluster 147 160 172 183 192 204
AI Done Clusters 374705 440323 443387 442466 485035 396839
Total AI Done 501703 550557 538586 524693 560682 448571
*
Till Jan’21
To reduce infertility in farm animals Special Infertility Camps may be performed at DCS
stage through expert gynecologist the usage of Allopathic and homeo medicines.
During 1999-2000, a Vertical Silo of 10,000 litre potential for storing Liquid Nitrogen has
been set up below TMDD software in collaboration with National Dairy Development Board
and Karnataka Milk Federation. In addition, this facility is getting used for providing liquid
nitrogen to neighboring Unions and additionally to Department of Animal Husbandry. This
has helped in protective the quality of semen straws, thereby substantially growing the
concept at some point of artificial insemination of farm animals.
CATTLE FEED & FODDER DEVELOPMNET
The Union is enforcing numerous applications to boom milk manufacturing and additionally
to reduce the price of milk manufacturing withinside the milk shed area. Balanced livestock
feed is being procured from the Cattle Feed Plants of KMF for distribution amongst member
manufacturers.
Fodder seeds are distributed to member manufacturers at backed prices to develop green
fodder and fodder seed manufacturing. Silage making, Azzolla, Hydroponics and Straw
Treatment Demonstrations also are being carried out at MPCS level. Chaff Cutters are
provided at sponsored prices. In addition to this technical recommendation might be given to
manufacturer via way of means of Agriculture officers.

Cattle Feed & Mineral Mixture Sales:

Vitamins and Minerals dietary supplements may be given to manufacturers at subsidiary fee
to growth milk manufacturing and to keep away from infertility problems.

Particulars 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

Cattle Feed Sales (in
46271 57264 73565 81484.85 88798 93936 112942 102478
MT’s)
Mineral Mixture (in
38.5 55.0 58.72 57.00 65.1 101.32 127.87 96
MT's)

CATTLE INSURANCE:
Bangalore Milk Union is supplying Insurance Coverage to the Dairy animals in collaboration
with United India Insurance Ltd., 1,63,837 animals are protected below this Insurance.
The annual top rate is 2.60% of the fee of the animal. 50% of the once-a-year top rate of Rs.
620.eighty-two Lakh changed into borne via way of means of Bamul.
Animals Premium Insurance
Premium Animals
Year Amount (Rs. Claimed (Rs. In
Insured % Death
In Lakhs) Lakhs)
2008-09 44857 2.15% 165.58 1058 181.15
2009-10 60756 2.00% 229.43 1342 256.41
2010-11 70668 2.00% 314 1634 375.58
2011-12 90887 2.25% 541.73 2297 651.17
2012-13 102618 2.50% 738.95 3249 953.99
2013-14 137825 2.60% 1126.01 2297 903.91
2014-15 /16 150125 2.15% 1194.67 3238 1236.06
2016-17 163837 1.90% 1241.63 1029 1372.47
2017-18 192808 1.53% 1410.87 4201 1716.54
2018-19 209964 1.59% 1669.86 4688 2345.93
2019-20 221691 1.90% 2003.76 2535 1250.11
Milk Procurement:
Bangalore Milk Union is imparting numerous Technical Input and Extension Services to the
Milk manufacturer and the Dairy animals via unique campus withinside the State.
The Union is taking unique care to sell the health of the Cattle of contributors’ milk
producers. Veterinary centers had been extended to all of the DCS. Farmers have taken up
the Crossbreeding from 1962. The use of progeny examined semen from Nandhini sperm
stations additionally giving a destiny enhance to the breeding activities. Procurement and
storage of liquid nitrogen with 10000 litres capability at BAMUL to facilitate the delivery of
liquid nitrogen to all of the District’s unions for the reason of storage of semen.
The union is enforcing numerous programs to boom milk and additionally lessen the fee of
milk manufacturing withinside the milk shed area. Balanced livestock feed is being procured
from the livestock feed plant life of KMF for distribution amongst contributors’ producers.
The milk produced 123506 farmers at village level could be accumulated each day morning
and night-time at MPCS. Under Clean Milk Production Programme, to preserve the freshness
and first-class of the milk 195 Bulk milk coolers protecting 571 MPCS of general capacity
420000 litres had been established at MPCS level. During the 12 months the Unions daily
common milk procurement is 16. forty-one lakh kgs consistent with day, common of 731 kgs
consistent with day consistent with MPCS. The milk procurement has expanded through
5.52% while as compared to the last 12 months.
Bangalore Milk union is supplying coverage insurance to the dairy animals in collaboration
with united India Insurance Ltd. almost round 40000 animals are protected below this
Insurance. The annual top rate for this Insurance is 2.22%.

A V G . M il k P R O C U R E M E N T P E R D A Y
Year 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Avg. Milk
12.66 13.65 13.85 15.03 15.51 15.83 16.86
procurement in Lakhs
% Growth 9% 7% 1% 8% 3% 2% 6%

15.83 16.86
15.03 15.51
13.65 13.85
12.66

2014-152015-162016-172017-182018-192019-202020-21

Bamul is supplying the most remunerative milk procurement fee to member producers. The
operational performance is contemplated on procurement charges paid to the member
producers. The common milk procurement fee paid to the manufacturer at some stage in the
12 months is Rs 29. Sixty-seven for each Kg of Milk furnished to the Union.
Milk accumulated at MPCS could be transported to Chilling Centers, via one hundred fifteen
Milk Procurement Can Routes, through travelling 18,392 KM’s each day. forty-four Bulk
Milk
Cooler (BMC) Routes also are in operation, which collects milk from 208 BMC facilities of
763 MPCS at once transported to Bangalore Dairy via insulated tankers.

LIQUID MILK MARKETING:

The Bangalore Milk Union is advertising and marketing milk and milk products withinside
the logo name of “Nandini” through 1964 retailers, eighty-one Franchisee Outlets, fifty-three
Milk Parlor’s, 363(Morning + Evening+ Day counter + Product) distribution routes. The key
fulfilment element of Bamul in turning into a marketplace leader is the narrow rate spread
maintained between purchase & income, advertising and marketing better volumes of milk.
The volume of income performs an important function in figuring out costs. Hence, the
marketplace approach of Bangalore Milk Union is to treat promoting of marketplace milk as
its centre advertising and marketing activity and to pay attention its efforts on this route to
growth the extent of milk income. The superb increase withinside the sale of milk via way of
means of Bamul through the years is because of the chronic efforts to hold well timed supply,
keeping quality and attending to the proceedings of purchasers and sellers with activate
follow-up action.

Bamul is likewise organizing Consumer Awareness Programme as part of Market

Development to create attention of “Nandini” Milk through non-public contacts, Door to
Door campaigns, Organizational Meetings, School Children Mega Dairy Plant go to etc., are
accomplishing regularly.

A V G. C ur d SA L E S P E R D A Y
Year 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Avg. Curd Sales in '000 120.66 122.12 119.85 125.3 142.35 107.07

% Growth 4% 1% -2% 4% 14% -12%

122.12 142.35
120.66 119.85 125.3
107.07

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

1.9 COMPETITORS INFORMATION:

Nandini is one of the market leaders in milk product at Karnataka, though it has good name,
it has so many competitors. As dairy industry providing so many milk products, naturally
there is scope and demand for the products. So, competitors exist in the market.
The main competitors to BAMUL are:
 Heritage: The Heritage Group was founded in 1992 Heritage Foods has its
headquarters in Hyderabad, Telangana, India.
 Arokya: Arokya Milk was launched in 1995. customers in Tamil Nadu, Karnataka and
Andhra Pradesh
 Dodla: The company was incorporated in the year 1995 and production commenced
in 1997.
 Thirumala: Thirumala Milk Products Private Limited is a leading dairy company in
South India established in the year 1996.
 Amul: established in the year 1946.
 Jersey: In 1986, Jersey started with its milk business
 Swastika: established in 1954.

SWOT ANALYSIS:

STRENGTHS:

 Enhanced milk production with consequently increased availability of milk processing.

 Improvement purchasing power of the consumers
 Improvement transportation facilities for movement of milk and milk products
 Increased availability of indigenously manufactured equipment.
 Large number of dairy plants in the country.
 Strong Brand name
 Affordable Price

WEAKNESS:

 Lack of appropriate technologies for tropical climate conditions.

 Erratic power supply
 Lack of awareness for clean milk production.
 Underdevelopment raw milk collection system in certain parts of the country.

OPPORTUNITIES:

 Greatly improved export potential for milk producers of western as well as traditional
types.
 Expanding market for traditional dairy products.
 Increasing demand for fluid milk as well as value added products.
  By product utilization for import substitutes

Threats:
 Introduction of foreign products in Indian Market
 Increasing chemical contaminants and residual antibiotics in milk
 Poor microbiological quality of milk
 Export of quality feed ingredients particularly cakes under the liberalizations policy.

1.10 Future Growth and Prospects

 Entering the global market is the biggest step taken by BAMUL in recent times.
BAMUL has got the exporting license in January ,2021 for its Kanakapura plant to
export weigh powder, skimmed milk powder, whole milk powder, ghee, butter, cheese,
UHT milk.
 At present there is good demand in the countries like Nepal, Bhutan, sri lank, middle
east and west Africa.
 There are lots of technical and non-technical barriers to enter the European market. It is
the toughest challenge to enter this kind of market, and proper planning is required to
take any step further, if it gets succeed then it will be the biggest milestone.
 In the domestic level AMUL has the largest market share of 85%, BAMUL is thriving to
expand the domestic market share by entering into the southern states of India.
 20KLPH capacity RO Plant at Hoskote Dairy is under process.

 New Store and Canteen building is under construction at Main Dairy

 1.11 Financial Statements
PROFIT AND LOSS A/C OF BAMUL FOR THE YEAR 2018-19 AND 2019-20

SL.NO PARTICULARS 2018-2019 2019-2020

MANUFACTURING
1 EXPENSES

OPENING STOCK- MILK & 78,12,43,414 1,12,32,65,277

MILK PRODUCTS
OPENING STOCK- P&I WING 4,13,14,990 3,01,93,221

PURCHASES-MILK& MILK 15,39,56,18,273 17,34,63,79,387

PRODUCTS
PURCHASES- P& I WING 1,85,48,30,594 2,48,60,74,583

PROCURMENT & 26,78,21,259 28,39,51,804

TRAN.CONTRACT EXP
PROCESSING & CONVERSION 1,54,19,88,043 1,59,93,45,916
EXP
GROSS PROFIT (CARRIED 2,13,75,88,455 2,45,32,34,451
DOWN)

TOTOAL – 1 22,02,04,05,027 25,32,24,44,640

2 SALES INCOME

TURN OVER 20,86,69,46,529 24,74,16,21,440

CLOSING STOCK- MILK & 1,12,32,65,277 54,08,60,604

MILK PRODUCTS
CLOSING STOCK- P & I WING 3,01,93,221 3,99,62,596

TOTAL-2
22,02,04,05,027 25,32,24,44,640

3 PROFIT AND LOSS A/C

EXPENSES

STAFF EXPENSES 81,08,99,935 77,57,29,833

 ADMINISTRATIVE EXPENSES 9,79,00,475 25,21,68,648

PROVISION FOR TRADE 3,80,42,650 4,28,75,700

FLUTUATION FUND
PROVISION FOR 4,73,78,500 5,55,75,000
INFRASTRUCTURE FUND

RATES AND TAXES 2,26,700 6,51,725

SELLING AND DISTRIBUTION 29,69,03,526 38,17,52,368

INTEREST AND BANK 5,93,19,288 7,52,71,671

CHARGES
PROCUREMENT AND INPUT 37,86,92,104 37,40,79,493
EXPENSES

DEPRECIATION 22,20,03,954 36,51,31,974

PROVISION FOR INCOME TAX 38,04,678 4,94,64,910

NET PROFIT 25,60,83,065 27,53,28,317

TOTAL – 3
2,21,12,54,875 2,64,80,29,640

4 PROFIT AND LOSS A/C:

OTHER INCOME

GROSS PROFIT (BROUGHT 2,13,75,88,455 2,45,32,54,451

FORWARD)

OTHER INCOME 5,00,67,800 16,67,99,015

P AND I WING INCOME 79,04,000 78,87,000

INTEREST ON DEPOSITS AND 1,56,94,621 2,01,09,173

STAFF LOANS

TOTAL – 4 2,21,12,54,875 2,64,80,29,640

Sl.no Particulars 2017-18 2016-17 2015-16

1 MANUFACTURING:
DIRECT
EXPENSES

OPENING STOCK 734420545.1 1334463654.73 331161178

MILK & MILK
PRODUCTS
OPENING STOCK- 32345329.58 37199470.13 27535939
P&I TRADING
PURCHASES MILK & 15973811696 14187759179.75 12342065560
MILK PRODUCTS
PURCHASES-P&I 1766760409 1578681535.34 1242642747
TRADING
PROCUREMENT 264225109.3 249667085.00 242343789
TRANS CONTRACT
EXP.
PROCESSING & 1271164381 1088604260.73 1256421462
CONVERSION EXP

Gross profit

SUB TOTAL-1 20042727470.45 18476375185.68 15442170675

2 PROFIT & LOSS A/C

: EXPENSES

STAFF EXPENSES 559967564.9 589418474.71 584981003

ADMINISTRATIVE 185009765.5 286221225.39 215959810
EXPENSES
RATES &TAXES 2701469 6343432.00 97321416

SELLING & 234529230.4 232199235.79 187968750

DISTRIBUTION
INTEREST & BANK 50455733.37 53794878.11 54491224
CHARGES
PROCUREMENT & 275746293.9 356440048.17 192626146
INPUT EXPENSES
DEPRECIATION 129595502 112925206 91252382
INCOME TAX 117876006 156256000 74565726
PROVISION
Net profit

SUB TOTAL -2 1555881565.02 1793598500.17 1499166459

EXPENSES TOTAL - 21598609035.47 20269973685.85 16941337134

(1+2)
3 SALES INCOME

SALES MILK & MILK 19004069187 17913771865.86 14408429966

PRODUCTS
SALES -P&I 1793882971 1559241016.53 1204466569
TRADING
CLOSING STOCK 781243413.6 784654812.48 1230853964
MILK & MILK
PRODUCTS
CLOSING STOCK- 41314990 32345329.58 37199470
P&I TRADING
SUB TOTAL -3 21620510561.69 20290013024.45 16880949968

4 OTHER INCOME

OTHER INCOME 68769076.51 48793745.10 72948639

OTHER INCOME-P&I 7287565 131528196.41 84257325

INTEREST ON 88820681.31 102787700.04 22709721

DEPOSITS & STAFF
LOANS
GRANTS 0 0
SUB TOTAL – 4 164877322.82 283109641.55 179915686

INCOME TOTAL – 21785387884.51 20573122666.00 17060865654

(3+4)

GROSS PROFIT- (1- 1577783091.24 1813637838.77 1438779293

3)

NET PROFIT - After 186778849.04 303148980.15 119528520

Tax
1.11(b) Bengaluru Urban, Bengaluru Rural & Ramanagara District Co-Operative Milk
Producer’s Societies Union Ltd.
Balance Sheet as on 31-03-2020
AMOUNT
SL.NO PARTICULARS

A SOURCES OF FUNDS

1 PAID UP SHARE CAPITAL 746300000

2 NOMINAL MEMEBERSHIP FEE 227500

3 SHARE SUSPENSE 2585063

4 CAPITAL GRANTS 4060665848

5 RESERVES & SURPLUS 1397254252

6 LOAN LIABILITIES 2066173182

7 SCHEME FUNDS 88250809

8 CURRENT LIABILITIES 1647718699

9 PROFIT CURRENT YEAR 2019-20 275328317

GRAND TOTAL 10284503669

APPLICATION OF FUNDS
B

10 FIXED ASSETS 6757582877

11 INVESTMENTS IN PROJECTS 462493493

12 INVESTMENTS, FIXED DEPOSITS WITH BANKS & 152328143

SHARES

SUB TOTAL 7372404512

CURRENT ASSETS, LOANS & ADVANCES

13 CLOSING STOCK 679262401

14 SUNDRY DEBTORS 518391083

15 CASH & BANK BALANCES 1475719092

16 LOANS, ADVANCES & DEPOSITS 238726581

2912099157

GRAND TOTAL 10284503669

Bengaluru Urban, Bengaluru Rural & Ramanagara District Co-Operative Milk
Producer’s Societies Union Ltd.
Balance Sheet as on 31/03 of every year
Sl.no Particulars 2018-19 2017-18 2016-17 2015-16

1 Liabilities

Sources of Fund

Paid-up Capital 645919000 572692000 453782000 406710000

Nominal members 210500 188800 157600 127710
Share suspense 2562501 2546193 2558793 2740614
Capital grants 92307578 77048952 17806005 -
Reserves and Surplus 4725524272 4007669594 2947029659 1630497086
Loan Liability 1529891257 657370604 688467717 691725756
Current Liability 2458576018 2155844762 2323406087 1022976824
Profit & Loss 256083064 186778849 303148980 119528520

Total Liabilities 9711074191 7660139754 6736356842 3874306510

2 Assets

Fixed assets 5632555736 2069927323 1893043790 1615219674

Work-in-progress 1210043532 2034402501 405868925 130173921
Investments 126513680 747212384 1970074460 195622554
Inventory 1216538604 879602270 874807257 1315879400
Sundry Debtors 507423930 412557825 300985490 318370011
Cash-Bank balance 523434548 430781101 747218981 54380077
Loans & Advance 165235199 1085656350 350472602 189516287
Service Deposits 30996373 - 24253405 23430668
Others 298332589 - 169631930 31713917

Total Assets 9711074191 7660139754 6736356842 3874306510

 CHAPTER – 2

CONCEPTUAL BACKGROUND AND LITERATURE REVIEW

 CHAPTER -2
CONCEPTUAL BACKGROUNG AND LITERATURE REVIEW

2.1 Conceptual Background

2.2 FINANCIAL ANALYSIS: The topic selected for the observe is “A Study on Financial
Performance Analysis at KMF”. The analysis is also known as Financial Statement Analysis
to make a higher financial selection the process of reviewing and analyzing a company’s
economic statement is necessary.
Financing Analysis also can be referred to as evaluation in addition to explanation of
Financial Statement. It’s a technique of shaping the strength in addition to drawback of the
corporation through developing a Strategic connection among the items of company stability
sheet., profile in addition to loss account as properly as different economic declaration.

Market data

FINANCIAL
analysis

Financial
disclosures Economic data

Financial analysis is a technique of selecting, comparing and decoding financial data,

together with different pertinent information, that allows you to formulate an evaluation of
company’s present and destiny financial situations and performance. Financial evaluation and
interpretation of financial statements refers back to the technique of figuring out the
tremendous working and monetary characteristics from the accounting data with the intention
to getting a perception into the activities of an enterprise.

The Standard contents of a set of financial statements are:

 Balance Sheet
 Income Statements
 Statement of cash flow
2.2 NATURE OF FINANCIAL ANALYSIS:
The financial statements are organized on the idea of recorded data. The recorded information
is those that may be expressed in monitory terms. The accounting statistics and monetary
statements are from the one’s statistics are based on historic costs. The monetary statements
are organized periodically for the accounting period.
Financial statements as composed of data, that are the results.
 Recorded information concerning business transaction.
 Convention followed to facilitate the accounting technique.
 Postulates or assumptions made to personal judgment.
 Application of correction and postulates.

2.3 (a) OBJECTIVES OF FINANCIAL ANALYSIS:

The most important objectives of financial statement analysis are to offer choice makers facts
approximately a business company to be used in choice making. Uses of financial statement
data are control for evaluating the operational and financial performance of the organization
as an entire or of sub units; buyers for making investment decisions and portfolio choices,
creditors and lenders for figuring out the credit score worthiness and solvency position;
worker and Labouré unions for identifying financial reputation of the company and making
sound choices in wage and salaries negotiations. However, the subsequent are usually taken
into consideration to be the targets of financial Analysis:
 To discover the financial balance and soundness of the enterprise.
 To check and compare the incomes capability of the enterprise.
 To estimate and compare the constant assets, stock, and many others of the concern.
 To estimate and decide the opportunities of destiny increase of enterprise.
 To determine & compare the firm’s potential & capacity to pay off short-term & long-
term loans.
 To compare the executive performance of the enterprise.

2.3(b) Area of Financial Performance Analysis:

Financial analyst frequently assesses firm’s manufacturing and productiveness overall
performance, profitability performance, liquidity overall performance, operating capital
overall performance, constant belongings overall performance, fund flow overall
performance and social performance.
2.3© SIGNIFICANCE OF FINANCIAL ANALYSIS:
Financial statements analysis is a try to determine the importance and which means of the
financial statements data, which measure the enterprise’s liquidity profitability, forecast can
be manufactured from the future earnings, solvency and other signs to evaluate its working
efficiency, monetary function and performance. Financial analysis serves the subsequent
purpose:
 To recognize the operational performance of the business.
 This will permit the control to find susceptible spots of the business and take
essential remedial action.
 Helpful in measuring the solvency of the organization in taking suitable choices for
strengthening the short-time period in addition to long-time period solvency of the
organization.
 Comparison of beyond and gift results.
 Financial evaluation facilitates the managers in taking certain selections for
enhancing the profitability or decreasing the losses of the organization.
 Helps in judging the solvency i.e., the potential of the commercial enterprise to pay
off their loans.
 Financial declaration evaluation is an importance device in predicting the financial
disaster and failure of the commercial enterprise enterprises.
 The monetary evaluation will assist in assessing destiny improvement through
making forecasts and making ready budgets.

2.4 TOOLS OF FINANCIAL ANALYSIS

A financial analyst can adopt the following tools for analysis of the financial statements.
These are also termed as methods or techniques of financial analysis.
 Comparative statement analysis: Comparative balance sheet helpful in to know the
development of the agency can be seen through looking at the district assets and
liabilities of the firm at the specific dates to make the assessment of balances from
one data to any other. Getting ready of Comparative stability sheet allows within the
monetary situation of the business issue.
 Common-size statement analysis: A common size balance sheet is a balance sheet that
displays both the numeric value and relative percentages for total assets, total
liabilities, and equity accounts. Common size balance sheets are used by internal and
external analysts and are not a reporting requirement of generally accepted accounting
principles (GAAP).
 Trend analysis: Trend Analysis is a method used in technological analysis that
attempts to forecast the future stock price actions based on recently experimental
trend data. Trend Analysis is based on the idea that what has happened in that past
gives traders an idea of what will happen in the future.

 Ratio Analysis: Ratio Analysis is a developing considerable connection among person

things withinside the balance sheet or profit and loss account. Ratio Analysis isn't
always best beneficial to internal parties of enterprise problem however additionally
beneficial for the outside parties. The ratios are divided in to the subsequent important
categories.
 Current Ratio
 Quick Ratio
 Stock / Inventory to working capital Ratio
 Debtors Turnover Ratio
 Creditors Turnover Ratio
 Working Capital Turnover Ratio
 Net Profit Ratio
 Return on Investment Ratio
 Solvency Ratio
 Fixed Turnover Ratio

 Fund flow analysis: Fund flow analysis is the analysis of flow of fund from present
day asset to fixed asset or current asset to long time liabilities or vice-versa. Fund
refers to running capital. Funds flow statement is a declaration of reassets and makes
use of funds. It describes modifications in internet running capital among balance
sheet dates.

 Cash flow analysis: A cash flow analysis is a technique for checking up on your
company’s monetary health. It is the have a look at of the movement of cash thru your
business, additionally known as a cash budget, to decide styles of the way you are
taking in and pay out money.

 Net working capital analysis: Net working capital is the aggregate quantity of all
modern-day assets and current liabilities. It is used to degree the short-term liquidity of a
business, and also can be used to attain a general impact of the ability of organization
control to utilize assets in an efficient manner.

 Cost volume profit analysis: The cost volume profit analysis, commonly referred to as
CVP, is a planning process that management uses to predict the future volume of
activity, costs incurred, sales made, and profits received. In other words, it’s a
mathematical equation that computes how changes in costs and sales will affect
income in future periods.
2.5 Six steps to developing an effective analysis of financial statements.
 Identify the industry economic characteristics.
 Identify company strategies.
 Assess the quality of the firm's financial statements.
 Analyze current profitability and risk.
 Prepare forecasted financial statements.
 Value the firm.

2.5 (a)LIMITATIONS OF FINANCIAL PERFORMANCE ANALYSIS:

 Not a reflection of the present financial position.
 Possibility of Bias
 The absence of vital information
 Lack of qualitative information
 Lack of details

2.5 (b) USERS OF FINANCIAL PERFORMANCE ANALYSIS:

 Owners and Investors
 Management
 Lenders
 Suppliers / Trade creditors
 Government
 Employees
 Customers
 General Public

2.5© Functional Area of Financial Management:

 Estimation of the Financial Requirement: the requirement of finance to a business
concern is continuous. It is needed in all the stages of business cycle namely, initial
growth, saturation and declining stage.

 Selection of the Right Source of Funds: selecting the right sources of funds at right
time at right cost is important. Balancing the own capital (Equity) and borrowed
capital (Debt) through Debt Equity ratio (2:1) is best advantage for the firm.

 Allocation of Funds: after mobilizing the total funds of a firm, it is necessary to

allocate the available funds in the profitability avenues and distribute the funds to
capital expenditure and revenue expenditure, so that it should contribute to the goal of
‘Wealth Maximization’.

 Analysis and Interpretation of Financial Performance: it is another important task

of the financial manager. They are expected to watch the performance of each
portfolio that can be measured in terms of profitability and return on the investments.
Ratio analysis and comparison of actual with standard helps the finance manager to
have maximum control over the entire operations of the business unit.
 Analysis of cost – volume profit: it is an important tool of profit planning. It helps to
ascertain that at what point of production a firm will be able to recover its cost and
volume.

 Capital Budgeting: it is process of making investment decisions in capital

expenditure. It is an expenditure the benefits of which are to be received over an
expected period of time. It is an expenditure incurred for acquiring or improving fixed
assets.

 Working Capital Management: no business can run without an adequate amount of

working capital. Working capital refers to that part of firm’s capital which is required
for financing short term or current receipts such as cash receivables and inventories.

 Profit Planning and Control: the excess of revenue over expenditure determines the
amount of profit. Profit planning and control directly influence the declaration of
dividend, creation of surplus taxation etc.,

 Fair Returns to the Investors: returns are the divisible profits available to the
investors. Unless and until this is fulfilled by a company, the confidence of the
investors will be at stake. Regular and fair returns to the investors, encourages the
public to increase their savings to invest the same on securities.

 Maintaining Liquidity and Wealth Maximization: this is concerned to be the prime

objective of a business firm. Liquidity of the firm increases the borrowing capacity.
Increased liquidity builds up the firm’s ability to meet the short- term obligation,
towards creditors or bankers. This helps the firm to meet all types of obligation to the
target group like investors, creditors, employees, management, government and
society. Thus, wealth maximization takes place in the form of growth of capital over
the years.
SHARE CAPITAL OF BAMUL

Annual Turn-over (in Lakh Rupees)

247416

207978 208669
194730
156130

2015-16 2016-17 2017-18 2018-19 2019-20

NET PROFIT (In Lakh Rupees)

5727

3031.4 275
8 3
1195.2 256
8 0

2015- 2016- 2017- 2018- 2019-

16 17 18 19 20
2.5(d) STRUCTURE OF FINANCE DEPARTEMNT AT BAMUL:

FINANCE MANAGER
i i

DEPUTY MANAGER
i

(FINANCR)
i i

ASST.MANAGER - i

1(FINANCE)

ASST.MANAGER-2
(FINANCE)
i

ACCOUNT OFFICER-1
i i

SUPERDENT i

ADMIN.ASSISTENT-1 i

ADMIN.ASSISTENT-2 i

HELPER i
2.6 LITERATURE REVIEW:
Literature review is the process of understanding the previous data and studying the previous
research papers. Keeping in mind, an attempt has been made to make a brief survey related to
the previous data. The review of literature guides the researcher for getting better
understanding of methodology used. The review of empirical studies explores the avenues for
future and present research efforts. The number of different types of researches have been
carried out by the researchers, economists and academics all over the World. The review of
this Literature is important in order to review the study of Dairy industry. Therefore, in the
part of this review the complete study has been made.
 Ahmad and Hassan (2007): analyzed the asset quality, capital ratios, operational ratios
along with net profit margin, net interest profits, income to asset ratio, non-interest to
property and liquidity ratios for seven years from 1994 to 2001. Islamic banks on an
average had been the preeminent appearing to gross mortgage ratio, capital finances
to total asset ratio, capital finances to net loans ratios, capital finances to short-term
loan ratio, capital finances to liabilities ratio, non-interest cost to average asset ratio
and maximum of the liquidity ratios. Therefore, it could be concluded that Islamic
banks are outperforming others in capital adequacy and adequate liquidity. Expect
Return on Equity Ratio. Islamic banks had been at par with the enterprise in all
different cases.

 Kabir Hassan and Dr. Shari Lawrance (2007): carried out a survey on “An Analysis of
Financial Preparation”. In this study, the researcher analysis the financial preparations
for retirement. Regarding retirement plan contributions, the findings indicated
substantial high-quality results concerning profits and womanhood. Education is
substantial and positives as a predictor for the selections to make a contribution to a
401- k plan for women of their thirties, therefore assisting the speculation of a
substantial high-quality relationship among education and pension plan contribution.

 Gangadevi (2008): studied the leverage and financing choice for the chosen 30
electronic agencies for 5 years duration ranging from 1998 to 2003. In this examine
he determined that the organization has an excessive working leverage have to kept
low monetary leverage and vice-versa. So, it's far desirable that an organization has
low running leverage and an excessive economic leverage.

 Dhanabalan M (2009): opined that the dairy has an important position in enhancing
the general monetary situations of rural India. To maintain the ecological stability,
there's want for sustainable and stability improvement of agriculture and allied
sectors. From our first plan onwards, planners have given precedence to allied region
for the monetary improvement of the rural region. Dairy farming is defined as a small
enterprise which presents gainful employment opportunities. It incorporates of
approximately 6% of countrywide income.

 Mandeep Singh and Joshi A.S (2008): suggested the monetary evaluation of dairy
farming has been suggested for marginal and small farmers in Punjab for the year
2003-
04. It has been observed that a majority of the farm families are not able to fulfil their
necessities from their profits from vegetation. Further dairy farming has emerged as a
major allied organization for supplementing the profits of marginal and small farmers
in Punjab.
 Income from off-farm reassets has been recognized every other essential issue
contributing substantially to the disposable profits of those farm families. The have a
look at has advised to further make the most the capacity of off-farm reassets closer to
assembly the domestic expenditure. Also, the technical performance of crops and
dairy farming should be progressed to offer extra profits to farmers.

 Sintayehu Yigrem, (2008): studied approximately 240 dairy manufacturers. Both rural
and concrete manufacturers withinside the four predominant cities representing the
Shashemene-Dilla location in southern Ethipia, had been decided on the usage of a
multi-stage sampling technique, with the goal of characterizing dairy production,
processing/handling, advertising and marketing structures in addition to to prioritized
constraints and possibilities for dairy improvement withinside the location.

 Radha Krishnan, Nigam.S and Shantanu Kumar (2008): of their opinion developing
human populace, growing percentage capita profits and growing urbanization are
furling rapid increase withinside the call for meals and animal beginning in growing
countries. India possesses the most important farm animals’ populace withinside the
world. Contrary to the large populace of farm animals in India productiveness of
India farm animals is low in comparison to many growing countries.

 Waghmare P.R and Hedgre D.N(2007): opined that milk productions in India at some
stage in 1950-fifty-one changed into 17 million lots which has reaches seventy-eight
million tons in 1997-98. Presently India ranks first withinside the international in milk
production. The operation Flood Programmed changed into instrumental in dairy
improvement activities. These programmed are beneficial in upgrading the usual of
living of farmers.

 Karmakar K.G and Banerjee G.D(2006): pointed out that growth in milk production is
likely to continue at the present rate of 4.4% in the near future. Who is going to
handle this incremental milk? We must bear in mind both income and price elasticity
account for approximately 17% of the total expenditure of food. Demand for milk at
current rate of income growth steadily over the next two decades as the low income
rural and urban families who have higher expenditure elasticity would also increase
their income due to new economic environment.

 Dash H.K., Sadangi B.N and Pandey H (2006): evaluated “women Dairy Project-
Balasore and Bharak district of Orissa” backed via way of means of Ministry of
Women and child improvement, Government of India withinside the 12 months 2005.
The Women dairy funded under STEP envisaged formation of girl’s dairy co-
operative societies and supporting the societies and participants via way of means of
manner of making advertising infrastructure, imparting bodily inputs for dairy
improvement and arranging schooling for workplace bearers and participants.
 Eswaran (2009): studied on “client pleasure towards once more milk in Salem city” he
recounseled that; the extent of commercial may be accelerated in order that the
product may be advertised greater in rural areas. Brand involvement must be
progressed withinside the thoughts of customers. Customers may be influenced to
shop for the product via way of means of giving fee brought services. Awareness of
the product may be accelerated via way of means of giving programmed like avenue
indicates for the general public.

 Krishna Prasad Upadhyay (2004): “diverse varieties of budgetary proportions”. In this

exam he applied dissolvability share, liquidity share, effectiveness share,
productiveness share and valuation share. Various estimates like quantifiable income,
go back on value, go back on resources, obtaining according to share, income
according to offer, and aid use share are applied to assess the advantage of the
companies. He completed up his research expressing that the dissolvability role of the
2 companies isnt sound and credit score advent restrict is first-rate in both the
companies in total.

 Jagannadha Rao (1991): “economic overall performance of the company is the

cumulative results. This take a look at states that there may be bad situation of
economic overall performance of the agency is the cumulative end result of
unfavorable elements which include non-stop low ability usage of the units, fall in
sugar healing in a number of the units, bad operational overall performance, excessive
cane charge cautioned with the aid of using the State Government and paid up with
the aid of using the agency, low levy charge of sugar.

 Rachchh Minaxi (2012): "Execution he has pointed and guided that the monetary
document exam consists of breaking down the finances summaries to eliminate facts
that may assist fundamental leadership”. This investigation depicts the manner
towards assessing the relationship among location elements of the finances reviews to
get a comprehension of a factor’s role and execution.
 Pratheepkanth (2011): "effect amongst capital structure and groups execution or
position". Worldwide Journal of Financial Studies. The exam depending on optionally
available data became determined from the price range file revealed with the aid of
using enterprise. He applied exclusive authentic instruments like proportion,
connection, relapse exam ANOVA. He determined his exam that the enterprise
groups for the maximum component rely on the responsibility capital. In this way,
they want to pay extra intrigue costs.

 Neumann and Roberts (2008): “financial events are indicated more esteem", This
research portrays cash associated measures are given extra incentive over non-
budgetary measures and ROI is the single execution gauge to which administrators
deliver more weightage

 Krishna Prasad Upadhyay (2004): “assorted kinds of budgetary proportions”. In this

exam he applied dissolvability share, liquidity share, effectiveness share,
 productiveness share and valuation share. Various estimates like quantifiable
earnings, go back on value, go back on resources, obtaining in step with share,
earnings in step with offer, and aid use share are applied to assess the advantage of
the agencies. He completed up his research expressing that the dissolvability function
of the 2 agencies isnt sound and credit score advent restriction is splendid in both the
agencies in total.

 S.M. Tariq Zafar, (2012): The writer made study to explored the reality that the ratios
are calculated from the financial statements’ which might be organized as favored
through the control and policies followed on depreciation and inventory values and as
a result produce simplest a group of information expressed in economic time period
and cannot produce entire and authentic photo of the enterprise and additionally might
not spotlight different elements which affects performance. They observed that to
govern manager’s control regularly overuse ratio and listen greater on enhancing the
ratios and additionally regarded reality that ratio is straightforward contrast of
numerator and a denominator and in comparing ratios it grows to be tough to
adjudicate whether or not variations are because of change withinside the numerator
or denominator or in both. It is likewise observed that ratios are interconnected
however are regularly handled through control in isolation and additionally observed
that evaluation of ratios lack authenticity as records utilized in calculation are not
correct however manipulated presentation through the promoters

 Dr. Jothi, (2015): The writer made take a look at on monetary overall performance
evaluation of HONDA & TOYOTA corporations and made have discussed that each
corporation have comfortable short-time period liquidity role and consequently now
no longer probable to stumble upon to any primary problems in paying / discharging
their short-time period duties in time. As some distance as coins ratio is worried its
miles encouraging to word that the Honda is having sound coins control practice.
Toyota Company had made use of extra borrowed finances than the capital. From the
profitability angle it's miles observed that Honda Company has excessive incomes
potential. In end it seems secure to summarize that the Honda & Toyota appears to be
sound monetary control practice.
 CHAPTER 3

RESEARCH DESIGN
RESEARCH DESIGN
3.1 Statement of the problem:
The “life blood” for any corporation is Finance. It is stated to be the association of cash,
every project expects cash to start and do their business. So compelling the board of lower
back is especially important and assumes a essential process withinside the association. To
choose a financial choice the fiscal summaries are readied.
Topic decided on for the observe is “A study on financial overall performance analysis of
Karnataka milk federation”

3.2 Need for the study:

Financial overall performance analysis is used to identify the tendencies and relationship
among financial statements. Both internal control and outside customers together with
analysis, lenders and traders of financial want to assess companies’ profitability liquidity and
solvency the maximum common technique used for financial overall performance analysis
are comparative analysis and ratio analysis the ones technique consist of calculation and
compilation of the outcomes to historical company data competitors are enterprise average to
determine relative strength and overall performance of a company being analysis.
3.3 Objective of the study:
 To understand the profitability and liquidity of the company.
 To analyze the liquidity position of the firm using comparative balance sheet.
 To analyze the financial performance of the company using comparative balance sheet.
 To provide recommendation and valuable suggestions for the improvement of current
financial management.

3.4 Scope of the study:

 The study helps in strategic decisions making.
 The study also helps in forecasting future sales.
 The company’s performance study is compared for the period of 5years.

3.5 Research Methodology:

Research method refers back to the technique of solving research problem. It is the manner to
systematically resolve the research problem. In the methodology we taken into consideration
specific steps followed via way of means of an investigator in analyzing the look at problem
along with the logic behind it. An investigator now no longer only required to realize the
approach however additionally the methodology.
The course used to gather statistics in addition to facts for the purpose of creation business
decision. The technique can also additionally consist of magazine studies, interview, survey
and extra research approach and can consist of collectively present in addition to historical
statistics.
The research design refers to pre-making plans of what a research does in its look at the
design adoption withinside the study comes under exploratory and assessment research
because the facts accrued form the financial statement of the enterprise is analyzed under
various financial tools.
The secondary data can be collected through the following sources:
Data Collection: the study is based on data obtained from the financial statement of the company.

Data period: The data is collected for the period of five

years. Tools used for study
 Ratio analysis
 Comparative balance sheet
 Comparative profit and loss a/c
 Common size balance sheet

3.6 Limitation of the study:

 The study is based on the external report of the company
 Limited information available for the project
 Ratios of past are not true indicators of future.
 CHAPTER 4
ANALYSIS AND INTERPREATION
4.1 Financial performance based on ratio analysis
Ratio analysis is a way of analysis and interpretation of financial statements. It is the method
of organizing and decoding various ratios for supporting in making positive decisions. It is
only a mean of understanding of financial strengths and weakens of a firm. There are number
of ratios which may be calculated from the information given in the financial statements,
however the analyst has to pick out the right statistics and calculated only a few suitable
ratios. Ratio analysis is described as the systematic use of the ratio to interpret the financial
statements. So that the strengths and weaknesses of a firm, in addition to its historical overall
performance and current financial situations may be determined. Ratio reflects a quantitative
relationship allows to form a quantitative judgement.

NATURE OF RATIO ANALYSIS:

Ratio analysis is a method of analysis and interpretation of financial statements. It is the
process of organizing and interpreting various ratios for supporting in making positive
decisions. It is only a method of know-how of financial strength and weaknesses of a firm.
There are some of ratios which may be calculated from the facts given in the financial
statements, however the analyst has to select the appropriate data and calculated just a few
suitable ratios.
Steps in Ratio Analysis:
 The first task of the financial analysis is to select the information relevant to the
decision under consideration from the statement and calculate appropriate ratios.
 To compare the calculate ratios with the ratio of the firms relating to the past or with
the industry ratios, it facilitates in assessing success or failure of the firm.
 Third step to interpretation, drawing of inferences and report writing conclusions are
drawn after comparison in the shape of report or recommended course of action.

4.1: CURRENT RATIO

current ratio may be described as the relationship among current assets and current liabilities.
This ratio additionally referred to as working capital ratio, is a degree of general liquidity and
is
maximum widely used to make the analysis of short-term financial position or liquidity of a
firm. It is calculated through dividing total current assets through total current liabilities.
Current ratio = current assets
Current liabilities
Table1: calculation of current ratios:

Years Current assets Current liabilities Current ratio

2019-2020 2,91,20,99,156 1,64,77,18,698 1.76

2018-2019 2,74,19,61,243 2,45,85,76,018 1.11

2017-2018 2,80,85,97,546 2,15,58,44,762 1.30

2016-2017 2,46,73,69,666 2,15,77,56,273 1.14

 2015-2016 1,93,32,90,360 1,02,29,76,824 1.88

4.1Graph representing current ratio

1.88
1.76

1.14 1.3
1.11

2015-20162016-20172017-20182018-20192019-2020
current ratios

INTERPRETATION:
Higher the value of current ratio indicates more liquid of the firm’s ability to pay its current
obligation in time. In the above graph we can observe that in 2015-16 the ratio is 1.88 and in
the next year 2016-17 current ratio decreases to 1.14 and in the year 2017-18 again it
increases 1.30 and again it decreases in the year 2018-19 to 1.11 and it increases to 1.76 in
the year 2019-20. At the present the company can pay its debts on time.

4.2 QUICK RATIO:

It is also known as acid test ratio or liquid ratio is a more rigorous test of liquidity than the current
ratio. Quick ratio may be defined as the relationship between quick assets and quick liabilities. An
asset is said to be liquid if it can be converted into cash within short period without loss of value.
Inventories cannot be termed as liquid assets because they cannot be converted into cash
immediately without a sufficient loss of value. In the same manner prepaid expenses are also
excluded from the list of liquid assets.
Quick ratio = liquid assets
Liquid liabilities
Table 4.2: calculation of Quick ratio
LIQUID
YEARS LIQUID ASSETS QUICK RATIO
LIABILITIES

2015-2016 61,74,10,960 1,02,29,76,824 0.603

2016-2017 1,59,25,62,409 2,15,77,56,273 0.738

2017-2018 1,92,89,95,276 2,15,58,44,760 0.894

2018-2019 1,52,54,22,639 2,45,85,76,018 0.620

2019-2020 10,21,65,77,268 1,64,77,18,699 6.200

4.2 Graph showing Quick ratio

Quick ratios
8
6
4
2
0
2015-162016-172017-182018-192019-20

Quick ratios

Interpretation:
Quick ratio is very useful in measuring the liquidity position of a firm. It is used as a
complementary ratio to the current ratio. From 2015-16 to 2017-18 there is a increase in
quick ratio this shows that the firm is maintaining liquidity to meet its liabilities.
There is a slight low in the year 2018-19 of 0.620 and in the year 2019-2020 it is showing a
high ratio of 6.200.
4.3 STOCK TURNOVER RATIO:
Inventory turnover ratio also known as stock velocity. It would indicate whether inventory has been
efficiently used or not. The purpose is to see whether only the required minimum funds have been
locked up in inventory. Inventory turnover ratio indicates the number of times the stock has been
turned during the period and evaluates the efficiency with which a firm is able to manage its
inventory.
Stock turnover ratio = Net sales
Inventory
Table4.3: calculation of stock turnover ratio

YEARS Net Sales Inventory Stock Turnover Ratio

2015-2016 15,61,28,96,529 1,31,58,79,400 11.845

2016-2017 19,47,30,12,881 87,48,07,257 22.260

2017-2018 20,79,79,52,158 87,96,02,270 23.645

2018-2019 20,86,69,46,529 1,21,65,38,604 17.153

2019-2020 24,74,16,21,440 67,92,62,401 36.424

Graph4.3: prestation of stock turnover ratio

Stock Turnover
ratio 36.42
4
22.2 23.64
6 5 17.15
11.84 3
5

2015- 2016- 2017- 2018- 2019-

16 17 18 19 20
Stock Turnover ratio

Interpretation:
Inventory turnover / stock turnover ratio measures the velocity of conversion of stock into
sales. From the above table and graph, it clearly shows that there is a increase in stock
turnover ratio from 2015-16 to 2017-18. A high inventory turnover ratio indicates efficient
management of inventory. But there is a decrease in the ratio in 2018-19 and again there is a
increase in 2019-20.

4.4 DEBTOR’S TURNOVER RATIO:

A concern may sell goods on cash as well as on credit is one of the important elements of
sales promotion. The volume of sales can be increased by following a liberal credit policy.
Trade debtors are expected to be converted into cash within a short period and are included in
current assets. Hence, the liquidity position of a concern to pay its short-term obligations in
time depends upon the quality of its trade debtors. Debtors’ turnover ratio indicates the
velocity of debt collection of firms. It indicates the number of times average debtors
(receivables) are turned over during a year.
Debtors’ turnover ratio = net credit sales
Account receivables
Table4.4: debtors turnover ratio calculation

DEBTOR’S
NET CREDIT ACCOUNT
YEARS TURNOVER
SALES RECEIVABLES
RATIO

2015-2016 15612896529 318370011 49.040

2016-2017 19473012881 300985490 64.698

2017-2018 20797952158 412557825 50.412

2018-2019 24741621440 507423929 48.759

 2019-2020 20866946529 518391083 40.253

Graph4.4: representing debtor’s turnover ratio.

DEBTORS TURNOVER
RATIO
10
0 64.69
49.0 8 50.41 48.75 40.25
50 4 2 9 3

0
2015-162016-172017-182018-192019-20

Interpretation:
Debtors’ velocity indicates the number of times the debtors are turnover during a year.
Generally, the higher the value of debtor’s turnover the most efficient is the management of
debtors/ sales or more liquid are the debtors. Similarly, a low debtors turnover implies
inefficient management of debtors / sales and less liquid debtors.
There is increase in Debtors turnover ratio from 2015-16 to 2016-17 and there is continuous
decrease from 2017-18 to 2019-20.

4.5 CREDIT TURNOVER RATIO:

During the business operations, a firm has to make credit purchases and incur short term
liabilities. A supplier of goods, i.e., creditor, is naturally interested in finding out how much
time the firm is likely to take in repaying its trade creditors. The analysis for creditors
turnover is basically the same as a debtor’s turnover ratio except that in place of trade
debtors, the trade creditors are taken as a one of the components of the ratio and in place of
average daily sales, average daily purchases are taken as the other component of the ratio.
Creditors turnover ratio = net credit annual purchase

Account payables
Table4.5: calculation of credit turnover
ratio

CREDITORS
NET CREDIT ACCOUNT TURNOVER
YEARS
PURCHASE PAYABLES RATIO

2015-2016 13584708307 1022976824 13.28

2016-2017 15766440715 2323406088 6.79

2017-2018 17740572105 2155844762 8.23

2018-2019 17250448867 2458576018 7.02

 2019-2020 19832453970 1554977199 12.75

4.5 GRAPH REPRSENTING CREDIT TURNOVER RATIO

20 13.28 12.75
6.79 8.23 7.02
10

0
2015-16 2016-17 2017-18 2018-19 2019-20

CREDITORS TURNOVER RATIO

INTERPRETATION:
Creditors turnover ratio indicates the velocity with which the creditors are turned over in
relation to purchases. Generally higher the creditors velocity better it is or otherwise lower
the creditors velocity less favorable are the results.
From the above table and graph, we can see that there is a decrease in te ratio from 2016-17
to 2018-19. And there is a increase in the year 2019-2020. A high creditors turnover ratio
signifies
that the creditors are being paid promptly. Lower ratio indicates that the payments of
creditors are not paid in time.

4.6 WORKING CAPITAL TURNOVER RATIO:

Working capital of a concern is directly related to sales. Working capital turnover ratio
indicates the number of times the working capital is turned over in the course of a year and
also indicates the velocity of the utilization of net working capital. It also measures the
efficiency with which the working capital is being used by a firm.
Working capital turnover ratio =
net sale

net working capital

Table4.6: calculation of working capital turnover ratio

WORKING CAPITAL TURNOVER

YEARS NET SALES WORKING CAPITAL
RATIO

2015-
15,61,28,96,529 91,03,13,536 17.151
2016

2016- 19,47,30,12,881 30,96,13,393 62.895

2017

2017-
20,79,79,52,158 652752784 31.862
2018

2018-
20,86,69,46,529 28,33,85,226 73.634
2019

2019-
24,74,16,21,440 1,26,43,80,459 19.568
2020

4.6 Graph representing working capital turnover ratio.

80
73.634
60 62.895

40
31.862
20 17.151 19.568
0
2015-162016-172017-182018-192019-20

WORKING CAPITAL TURNOVER RATIO

INTERPRTATION:
A higher working capital turnover ratio indicates efficient utlisation of working capital. High
working capital turnover ratio is not a good situation for any firm and hence care must be
taken while interpreting the ratio. From the above table we can notice that when we compare
to 2015- 16 there is an increase in 2016-17 but again there is a decrease in 2017-18 and there
is a increase in 2018-19 but there is a decrease in 2019-20.
4.7 NET PROFIT RATIO:
Net profit ratio establishes a relationship between net profit (after tax) and sales, and indicates
the efficiency of the management in manufacturing selling, administrative and other activities
of the firm. This ratio is overall measures of firm’s profitability.
Net profit ratio = net profit after tax / net sales * 100
The two basic elements of the ratio are net profits and sales. The net profits are obtained after
deducting income tax, and generally non-operating incomes and expenses are excluded from
the net profits for calculating the ratio.
Table 4.7: calculation of net profit ratio:

NET PROFIT NET PROFIT

YEARS NET SALES
AFTER TAX RATIO

2015-2016 11,95,28,520 15,61,28,96,529 0.765

 2016-2017 30,31,48,980 19,47,30,12,881 1.556

2017-2018 18,67,78,849 20,79,79,52,158 0.898

2018-2019 25,60,83,065 20,86,69,46,529 1.227

2019-2020 27,53,28,317 24,74,16,21,440 1.112

4.7 Graph showing net profit ratio.

NET PROFIT RATIO

1.556
1.227 1.112
0.765 0.898

2015-16 2016-17 2017-18 2018-19 2019-20

INTERPRETATION:
The ratio is very useful as if the profit is not sufficient, the firm shall not be able to achieve a
satisfactory return on its investments. This ratio also indicates the firm’s capacity to face the
adverse economic conditions such as price competition low demand. Obviously higher the
ratio the better is the profitability.
From the above table and graph, we can see that when we compare to 2015-16 there is an
increase in 2016-17 and again there is a decrease in 2017-18 but from 2018-19 there is an
increase in the net profit ratio.

4.8 RETURN ON INVESTMENT RATIO:

Return on shareholder’s investment popularly known as ROI or return on
shareholder/proprietor’s funds are the relationship between net profits (after interest and tax)
and the proprietors funds.
Return on investment = net profit / shares holders funds * 100
Shareholder’s fund = Equity share capital+ Preference share capital + Reserves and Surplus –
(accumulated losses)
Net profit = Net profits after payment of interest and taxes.
Table 4.8: calculation of ROI
 RETURN ON
SHARE HOLDERS
YEARS NET PROFIT INVESTMENT
FUND
RATIO

2015-2016 119528520 2040075410 5.859

2016-2017 303148980 3403528051 8.906

2017-2018 186778849 976193587 19.133

2018-2019 256083065 5374216273 4.765

2019-2020 275328317 2146366814 12.827

4.8 Graph showing ROI

20
12.827
15
8.906
10 5.859 4.765
5
0
2015-162016-172017-182018-192019-20

RETURN ON INVESTMENT RATIO

INTERPRETATION:
From the above table we can see that from the year 2015-16 there is a increase in return on
investment till 2017-2018. But there is a decrease in 2018-19 but again the company has
increased the ROI in 2019-2020. Higher ROI means there is a increase in sale with maximum
profits.

4.9 SOLVENCY RATIO:

This ratio is a small variant of equity ratio and can be simply calculated as 100-equity ratio.
The ratio indicates the relationship between the total liabilities to outsiders to total assets of a
firm. The solvency ratio is to measure the liabilities out of its total assets. The total assets
here include all assets like fixed assets and current assets whereas total liabilities include total
assets – shareholders equity.

Solvency ratio = total liabilities to outsiders

Total assets
Table 4.9: calculation of solvency ratio
YEARS TOTAL LIABILITIES TOTAL ASSETS SOLVENCY RATIO

2015-2016 3,46,47,28,186 38,74,43,06,510 0.089

2016-2017 6,26,20,52,444 6,73,63,56,842 0.929

2017-2018 7,00,76,63,809 7,66,01,39,754 0.914

2018-2019 8,97,00,74,613 9,71,10,74,193 0.923

2019-2020 5,47,47,25,258 10,28,45,03,669 0.532

Graph 4.9: showing solvency ratio

1
0.8
0.6
0.4
0.2
0
2015-16 2016-17 2017-18 2018-19 2019-20

SOLVENCY RATIO

INTERPRETATION:
From the above table we can observe that there is a increase in the ratio in 2016-17 when
compared to 2015-16 and a slight low in 2017-18 but again in 2018-19 there is an increase of
slight but again in the year 2019-20 there is a decrease in the ratio.

4.10 FIXED ASSETS TURNOVER RATIO:

This ratio is the relationship between sales or cost of goods sold and fixed/capital assets
employed in a business. It indicates the efficiency of assets management fixed assets turnover
ratio is used to measure the utilization of fixed assets.
Fixed assets turnover ratio = cost of goods sold

Fixed assets
Table 4.10: calculation of fixed assets turnover ratio

FIXED
COST OF GOODS
YEARS FIXED ASSETS TURNOVER
SOLD
RATIO

2015-2016 15,61,28,96,529 1,61,52,19,674 9.666

2016-2017 19,47,30,12,881 1,89,30,43,790 10.286

2017-2018 20,79,79,52,158 2,06,99,72,323 10.047

2018-2019 20,86,69,46,529 5,63,25,55,736 3.704

2019-2020 24,74,16,21,440 6,75,75,82,876 3.661

4.10 Graph representing of fixed assets turnover ratio.

12
10 10.286 10.047
9.666
8
6
4 3.704 3.661
2
0
2015-162016-172017-182018-192019-20

FIXED ASSETS TURNOVER RATIO

INTERPRETATION:
This ratio indicates the efficiency of assets management. Fixed assets turnover ratio is
showing company the utilization of fixed assets properly. There is a increase in the ratio till
2016-17 but then it started to have a continuous decrease in the ratio when the investment in
fixed assets are increased the fixed turnover ratio decreases. And when the cost of goods sold
increases the fixed asset turnover ratio also increases.
4.2. FINANCIAL PERFORMANCE BASED ON COMPARATIVE STAEMENTS
Comparative financial statements is a tool of financial analysis used to look at the
significance and path of adjustments withinside the financial role and overall performance of
a organization over a duration of time. The preparation of comparative is primarily based
totally on the premise that a statement covering a duration of several years is more
meaningful and significant than for a single 12 months only.
Comparative balance sheets
Comparative balance sheets of an corporation are prepared to expose different assets,
liabilities and capital as on more dates in order to evaluate and ascertain any growth or
decrease in absolute items and additionally percentages changes.
ADVANTAGES:
 More useful than a simple balance sheet as it shows data which may be used to study
the trend of the business.
 Helps in forming an opinion about the progress of the company.
 The emphasis is on change and it is dynamic statement.
 It can be used as a tool in analyzing and evaluation the financial position of a firm
over a period of number of years.

INTERPRETATION OF COMPARATIVE BALANCE SHEETS:

While interpreting comparative balance sheet the interpreter is expected to study the
following aspects:
 Current financial position and liquidity position
 Long term financial position
 Profitability of the concern

For studying current monetary position or short-time period financial position of a situation,
one ought to see the working capital in each the years. The excess of current liabilities will
provide the figures of working capital. The growth in working capital will suggest
development withinside the current financial position of the business, a growth in current
assets observed via way of means of the growth in current liabilities of the same amount will
now no longer display any improvement withinside the short-time period financial role. A
scholar needs to examine the growth or decrease withinside the current assets and current
labilities and this may be permitting them to analysis the current financial position.
The 2d aspect which ought to be studied in current financial role is the liquidity position of
the concern. If liquid assets display a growth over the preceding year, this will enhance the
liquidity position of the concern.
The long-time period financial function of the priority may be analyzed via way of means of
analyzing the modifications in the fixed assets, long term liabilities and capital. The right
financial policy of situation might be to finance fixed assets via way of means of the issue of
both long-term securities along with debentures, bonds, loans from financial establishments
or problem of recent share capital.
The subsequent step is to examine the profitability of the concern. The study of growth or
decrease in retained earnings, diverse resources and surpluses will permit the interpreter to
look whether or not the profitability had improved or not.
After studying numerous assets and labilities an opinion must be formed approximately the
financial position of the concern. One can't say if short term financial position is true then
long- term financial position can also be true or vice-versa. A concluding phrase
approximately the general financial position needs to receive on the end.

COMPARATIVE BALANCE SHEETS FOR THE YEAR ENDING 2017-2018 AND

2018-2019

INCREASE/
PARTICULARS 2017-2018 2018-2019 DECREASE
AMOUNT

SOURCES OF FUNDS

PAID UP SHARE CAPITAL 572692000 645919000 73227000

NOMINAL MEMBERSHIP 188800 210500 21700

SHARE SUPENSE 2546193 2562501 16308

GOVT. CAPITAL GAINS 77048952 92307578 15258626

RESERVES & SURPLUS 4007669594 4725524272 717854678

LOAN LIABILITY 657370604 1529891257 872520653

CURRENT LIABILITIES 2155844762 2458576018 302731256

PROVISIONS

PROFIT & LOSS A/C 186778849 256083064 69304215

GRAND TOTAL 7660139754 9711074191 2050934437

APPLICATION OF FUNDS

FIXED ASSETS 2069927323 5632555736 3562628413

WORK IN PROGRESS 2034402501 1210043532 (824358969)

INVESTMENTS 747212384 126513680 (620698704)

CURRENT ASSETS-LOANS
ADVANCES

INVENTORY 879602270 1216538604 336936334

SUNDRY DEBTORS 412557825 507423930 94866105

CASH AND BANK BALANCES 430781101 523434548 92653447

LOANS & ADVANCES 1085656350 165235199 (920421151)

SERVICE DEPOSITS - 30996373 30996373

OTHERS - 298332589 298332589

GRAND TOTAL 7660139754 9711074191 2050934437

INTERPRETATION:
 Current liabilities have been increased to 302731256 in 2018-2019 when compare to
previous year.
 Companies’ loans and Advances have been decreased in 2018-2019 when compared
to 2017-2018.
 The current assets are exceeding over current liabilities in 2018-2019
 Working capital = current assets - current liabilities
2741961243 - 2458576018
Working capital = 283385225
 Current assets like cash and bank balance inventory and have been increased in
2018- 2019 when compared to 2017-2018.
 Fixed assets have been increased to 3562628413 and even share capital have been
increased 73227000.
 Companies profit have also been increased in the year 2018-2019 with an increase of
69304215.
 Even BAMUL has increased their reserve and surplus 717854678.
  COMPARATIVE BALANCE SHEETS FOR THE YEAR ENDING 2018-2019
AND 2019-2020

INCREASE/
PARTICULARS 2018-2019 2019-2020 DECREASE
AMOUNT

SOURCES OF FUNDS

PAID UP SHARE CAPITAL 645919000 746300000 100381000

NOMINAL MEMBERSHIP 210500 227500 17000

SHARE SUPENSE 2562501 2585063 22562

GOVT. CAPITAL GAINS 92307578 4060665848 3968358270

RESERVES & SURPLUS 4725524272 1397254252 (3328270020)

LOAN LIABILITY 1529891257 2066173181 536281924

Scheme fund - 88250809 88250809

CURRENT LIABILITIES 2458576018 1647718698 (810857320)

PROVISIONS

PROFIT & LOSS A/C 256083064 275328317 19245253

GRAND TOTAL 9711074191 10284503669 573429478

APPLICATION OF FUNDS

FIXED ASSETS 5632555736 6757582876 1125027140

WORK IN PROGRESS 1210043532 462493492 (747550040)

INVESTMENTS 126513680 152328143 25814463

CURRENT ASSETS-LOANS
ADVANCES

INVENTORY 1216538604 679262401 (537276203)

SUNDRY DEBTORS 507423930 518391089 10967159

CASH AND BANK BALANCES 523434548 1475719091 952284543

LOANS & ADVANCES 165235199 2387726580 2222491381

SERVICE DEPOSITS 30996373 - 30996373

OTHERS 298332589 - 298332589

GRAND TOTAL 9711074191 10284503669 573429478

INTERPRETATION:
 Share capital have been increased to 100381000 in 2019-20 compared to 2018-2019.
 Reserves and Surplus have been decreased to (3328270020) in 2019-2020.
 Loan liabilities have been increased by 536281924. And current liabilities have also
been decreased.
 Current year profit has been increased by 19245253.
 Fixed assets have been increased by 1125027140 in 2019-2020. Even investments are
increased by 25814463.
 Cash balance have been increased by 952284543.
 Over all even total profits are also increased by 573429478.
B) COMPARATIVE INCOME/ PROFIT AND LOSS ACCOUNT
The income statement offers the outcomes of the operations of the enterprise. It shows the net
income or net loss attributable to business operations. The comparative income statement
offers an concept of the development of a enterprise over a duration of time. The
modifications in absolute information in money values and percentages can be decided to
analyze the profitability of the business.
OBJECTIVES:
 To analyze and evaluate the operating results of a business.
 To indicate the trend and direction of incomes and expenditure in terms of absolute
money values and percentages.
 To enhance the usefulness of an income statements.
 To help management in planning and forecasting the profits.

INTERPRETATION OF INCOME STATEMENTS:

 To increase and decrease in sales should be compared with increase and decrease in
cost goods sold.
 The second step of analysis should be the study of operational profits. The operating
expenses should be deducted from gross profit to find out the operating profits.
 The increase or decrease in net profit will give an idea about overall profitability of
the concern.
 An opinion should be formed about profitability of the concern and it should be given
at the end. It would be mentioned whether the overall profitability is good or not.
COMPARATIVE PROFIT AND LOSS A/C FOR THE YEAR 2017-2018 AND 2018-2019

SL.NO PARTICULARS 2018-2019 2019-2020 ABSOLUTE

CHANGE

MANUFACTURING
1 EXPENSES

OPENING STOCK- MILK 78,12,43,414 1,12,32,65,277 34,20,21,863

& MILK PRODUCTS
OPENING STOCK- P&I 4,13,14,990 3,01,93,221 (1,11,21,769)
WING
PURCHASES-MILK & 15,39,56,18,273 17,34,63,79,387 1,95,07,61,114
MILK PRODUCTS
PURCHASES- P& I WING 1,85,48,30,594 2,48,60,74,583 63,12,43,989

PROCURMENT & 26,78,21,259 28,39,51,804 1,61,30,545

TRAN.CONTRACT EXP
PROCESSING & 1,54,19,88,043 1,59,93,45,916 5,73,57,873
CONVERSION EXP
GROSS PROFIT 2,13,75,88,455 2,45,32,34,451 31,56,45,996
(CARRIED DOWN)

TOTOAL – 1 22,02,04,05,027 25,32,24,44,640 3,30,20,39,613

2 SALES INCOME

TURN OVER 20,86,69,46,529 24,74,16,21,440 3,87,46,74,911

CLOSING STOCK- MILK 1,12,32,65,277 54,08,60,604 (58,24,04,673)

& MILK PRODUCTS
CLOSING STOCK- P & I 3,01,93,221 3,99,62,596 97,69,375
WING
TOTAL-2
22,02,04,05,027 25,32,24,44,640 3,30,20,39,613

3 PROFIT AND LOSS A/C

EXPENSES

STAFF EXPENSES 81,08,99,935 77,57,29,833 (3,51,70,102)

ADMINISTRATIVE 9,79,00,475 25,21,68,648 15,42,68,173

EXPENSES
PROVISION FOR TRADE 3,80,42,650 4,28,75,700 48,33,050
FLUTUATION FUND
 PROVISION FOR 4,73,78,500 5,55,75,000 81,96,500
INFRASTRUCTURE
FUND
RATES AND TAXES 2,26,700 6,51,725 4,25,025

SELLING AND 29,69,03,526 38,17,52,368 8,48,48,842

DISTRIBUTION
INTEREST AND BANK 5,93,19,288 7,52,71,671 1,59,52,383
CHARGES
PROCUREMENT AND 37,86,92,104 37,40,79,493 (46,12,611)
INPUT EXPENSES

DEPRECIATION 22,20,03,954 36,51,31,974 14,31,28,020

PROVISION FOR 38,04,678 4,94,64,910 4,56,60,232

INCOME TAX

NET PROFIT 25,60,83,065 27,53,28,317 1,92,45,252

TOTAL – 3
2,21,12,54,875 2,64,80,29,640 43,67,74,765

4 PROFIT AND LOSS A/C:

OTHER INCOME

GROSS 2,13,75,88,455 2,45,32,54,451 31,56,65,996

PROFIT(BROUGHT
FORWARD)
OTHER INCOME 5,00,67,800 16,67,99,015 11,67,31,215

P AND I WING INCOME 79,04,000 78,87,000 (17,000)

INTEREST ON 1,56,94,621 2,01,09,173 44,14,552

DEPOSITS AND STAFF
LOANS

TOTAL – 4 2,21,12,54,875 2,64,80,29,640 43,67,74,765

INTERPRETATION:
  Opening stock of Milk and Milk products have been increased by 342021863 in the
year 2019-2020.
 Purchases of milk and milk products are also increased been increased.
 Overall Gross profits have been increased when compare to 2018-2019. There is a
increase of 315645996 in 2019-2020. There is a total increase in the manufacturing
expenses.
 Sales turnover have also been increased by 3874674911. But over all there is an
increase in the sales income in the year 219-2020.
 Staff expenses have been decreased in 2019-2020 by 35170102.
 Selling and Distribution have also been increased and procurement and input
expenses have been decreased in the year 2019-2020 by 4612611.
 Profit and Loss a/c have been decreased in 2019-2020 by 17000.
 Other incomes have been increased in 2019-2020 by 116731215.
 Overall there is an increase in Net Profit in 2019-2020 by 19245254.

4.3 FIANCIAL PERFORAMNCE ANALYSIS BASED ON TREND ANALYSIS

The financial statements can be analyzed via way of means of computing trends of collection
of data. This technique determines the course upwards or downwards and includes the
computation of the chances relationship that every statement items bears to the identical
items in base year. The statistics for some of years is taken up and one year, is taken as one
hundred and trends ratios for different years are calculated on the basis of base year.
PROCEDURE FOR CALCULATION TRENDS:
 One year is taken as base year. Generally, the first or last is taken as base year.
 The figures of base year are taken as 100.
 Trend percentages are calculated in relation to base year. If a figure in other year is
less than the figure in base year the trend percentages will be less than 100 and it will
be more than 100 if figure is more than base year figure. Each year’s figure is divided
by the base year’s figure.

TREND PERCENTAGES:
BASE YEAR 2015 = 100

SALES NET PROFIT

YEARS TREND TREND
AMOUNT AMOUNT
(%) (%)
15,61,28,96,535 100 11,95,28,520 100
2015-2016
19,47,30,12,882 124.72 30,31,48,980 253.62
2016-2017
20,79,79,52,158 133.21 18,67,78,849 156.26
2017-2018
20,86,69,46,529 133.65 25.60.83,065 214.24
2018-2019
24,74,16,21,440 158.46 27.53.28.317 230.34
2019-2020

INTERPRETATION:
  The interpretation of trend analysis involves a caution study. The more increase or
decrease in trend percentage may be give misleading results. The base period should
be carefully selected.
 The sales have continuously increased in all the years. The percentage in 2019-2020 is
158.46 as compared to 100 in 2015-2016. The sales is satisfactory.
 The net profit has substantially increased but in the year 2017-2018 there is a
decrease in the net profit percentage when compare to its previous year 2016-2017.
And again, it started to increase from 2018-2019.
 The profit percentage have increased to 230.34 in the year 2019-2020 as compared to
100 in 2015-2016. The profit is satisfactory.
4.4 FINANCIAL PERFORMANCE BASED ON COMMON SIZE STATEMENTS:
A common size financial statement shows all objects as percentages of a common base
figure. This type of financial statements permits for smooth analysis among organizations or
among time intervals of a organization.
The values on the common size statement are expressed as percentages of a statement’s
component, along with revenue. While maximum companies don’t report their statements in
common size format, it is useful to compute in case you need to analyses or more
organizations of various size in opposition to every other.
Formatting financial statements on this manner reduces the bias that may arise and lets in for
the analysis of the organization over numerous time intervals, revealing for example, what
percent of income is price of products bought and the way that price has modified over time.

TYPES OF COMMON-SIZE BALANCE STATEMENTS:

(i) Common -Size Balance Sheet:
A statement wherein balance sheet items are expressed because the ratio of every asset to
total asset and the ratio of every liability is expressed as a ratio of total liabilities is referred
to as common size balance sheet.
(ii) Common Size Income Statement:
The object in income statement may be proven as percent of income to expose the relation of
every item to income. A significant relationship may be set up among objects of income
statement and quantity of sales. The growth in income will definitely increase promoting
expenses and now no longer administrative or financial charges.
In case the volume of sales growth to a significant extent, administrative and financial prices
may work up. In case the income is figuring out the promoting, prices ought to be decreased
at once. So, a relationship is established among sales and other objects in profits statement
and this relationship is useful in evaluating operational activities of the enterprise.
COMMON SIZE BALANCE SHEET FOR THE YEAR 2017-2018 AND 2018-20191
Liabilities
1 Sources of Fund

Paid-up Capital 572692000 7.476 645919000 6.651

Nominal members 188800 0.002 210500 0.002
Share suspense 2546193 0.033 2562501 0.026
Capital grants 77048952 1.005 92307578 0.951
Reserves and Surplus 4007669594 52.318 4725524272 48.661
Loan Liability 657370604 8.58 1529891257 15.754
Current Liability 2155844762 28.144 2458576018 25.318
Profit & Loss 186778849 2.439 256083064 2.637
Total Liabilities 7660139754 100 9711074191 100
2 Assets
Fixed assets 2069927323 26.936 5632555736 58.001
Work-in-progress 2034402501 26.558 1210043532 12.460
Investments 747212384 9.755 126513680 1.303
Inventory 879602270 11.483 1216538604 12.523
Sundry Debtors 412557825 5.386 507423930 5.226
Cash-Bank balance 430781101 5.624 523434548 5.390
Loans & Advance 1085656350 14.173 165235199 1.701
Service Deposits - - 30996373 0.319
Others - - 298332589 3.072

Total Assets 7660139754 100 9711074191 100

INTERPRETATION:
 Paid up capital has decreased in 2018-2019 when compare to 2017-2018.
 Reserves and Surplus have been decreased in 2018-2019 by 3.657%.
 Loan liabilities have been increased in 2018-2019 by 7.174%
 Companies’ current liabilities have been decreased in 2018-19 by 2.826%.
 Profits have been increased by 0.198% in 2018-19.
 Fixed assets have been increased by 31.065 in 2018-19.
 Investments have been decreased in 2018-19 and inventories have increased by 1.04%
in 2018-19.
 Cash and bank balance have been decreased in 2018-19 by 0.234.

COMMON SIZE BALANCE SHEET FOR THE YEAR 2018-2019 AND 2019-2020

SL.NO PARTICULARS 2018-2019 PERCENTAGE 2019-2020 PERCENTAGE

(%) (%)

1 LIABILITIES

SOURCES OF
FUNDS
PAID UP SHARE 645919000 6.651 746300000 7.257
CAPITAL
NOMINAL 210500 0.002 227500 0.002
MEMBERSHIP
SHARE SUPENSE 2562501 0.026 2585063 0.025
GOVT. CAPITAL 92307578 0.950 4060665848 39.483
GAINS
RESERVES & 4725524272 48.661 1397254252 1.359
SURPLUS
LOAN LIABILITY 1529891257 15.754 2066173181 20.090
Scheme fund - - 88250809 0.858

CURRENT 2458576018 25.317 1647718698 16.021

LIABILITIES
PROVISIONS
PROFIT & LOSS 256083064 2.637 275328317 2.677
A/C
TOTAL 9711074191 100 10284503669 100
LIABILITIES

2 ASSETS
 FIXED ASSETS 5632555736 58.001 6757582876 65.706
WORK IN 1210043532 12.460 462493492 4.497
PROGRESS
INVESTMENTS 126513680 1.302 152328143 1.481
INVENTORY 1216538604 12.527 679262401 6.605
SUNDRY 507423930 5.225 518391089 5.041
DEBTORS
CASH AND BANK 523434548 5.390 1475719091 14.349
BALANCES
LOANS & 165235199 1.702 2387726580 23.217
ADVANCES
SERVICE 30996373 0.319 - -
DEPOSITS
OTHERS 298332589 3.072 - -
TOTAL ASSETS 9711074191 100 10284503669 100

INTERPRETATION:
 Share capital have been increased in 2019-2020 by 0.606% when compared to 2018-
2019.
 Loan labilities have been also increased in 2019-2020.
 Current liabilities have been decreased when compared to 2018-2019. In 2019-2020
current labilities have been decreased by 9.296%.
 Even profits of the company are increased.
 Fixed assets have been increased in 2019-2020. Even investment are increased in
2019- 2020.
 Companies’ inventories are decreased in the year 2019-2020. But the cash and bank
balances are increased in 2019-2020 by 8.959%
 CHAPTER 5
FINDINGS, CONCULSION AND SUGGESTIONS
FINDING’S:

 The current ratio of the firm has increased so that the company signifies that the creditors are
being paid promptly.
 From the comparative balance sheet, we can observe that the profit and loss a/c has increased.
 Fixed assets are also increased.
 The company is having a good inventory turnover ratio and they have to maintain the same for
gaining the profits.
 The company should look after the debtors because there is a decrease in debtors’ turnover ratio.
 They have to look after the working capital and have to maintain the working capital properly for
the smooth functioning of the company.
 They have to concentrate on the Net profits because even that is decreasing.
 At present the companies ROI is increasing when compare to last year so they have to make sure
that they maintain the same level without decreasing or they can try to increase the ROI.
 Cash and bank balance have also increased in 2019-2020.
 Investments have decreased so that company should take care of that.

SUGGESTIONS:

 Providing discount for customers.

 When compare from 2015-16 there is a increase in the both liabilities and assets
 Since BAMUL is making profit on milk products they should also aim to make profits in
milk.
 The brand Nandini is well know only Karnataka, hence measures should be taken to enter
other state markets. To get the popularity in those states.
 There is a scope for the company to advertise their services to increase the market share.
 They can introduce new products to attract the customers towards BAMUL and increase their
profit level
 The company should concentrate on the inventory part.
 If the company should like to increase the current assets, as the position of the company is in
all the years. Which will improve the short- term solvency position.
 Working capital analysis is the one of the important financial functions, So the company
should maintain the minimum working capital. For the further it is helpful.
CONCLUSION:

BAMUL is one of the biggest co-operatives managed by the milk producers of Bangalore rural,
urban and Ramanagara district milk producers’ societies union limited. Every activity of
BAMUL revolves around meeting one basic objective, achieve economies of scale to ensure
maximum returns to the milk producers, at same time facilities wholesale of milk at reasonable
prices. Organization should build between masses of rural producers and millions of urban
consumers and in the process achieve a socio-economies revolution in every hinterland of the
state. A study of financial performance was to analyze the financial position of the organization.
This organization is “Non-profit” organization. This service sector undertaken by Government,
finally it can be found that the company current financial position of the concern is good
compare to previous years.

After the analysis and interpretation of financial performance of KMF (BAMUL) is that
performance of the company is satisfactory through the exposure to the project work. I could get
clear understanding of various features of the firm’s performance and I found the reason for the
good or poor performance of the company and through the suggestions given by the author. Firm
can improve it performance in the future. BAMUL’s financial position is satisfactory and needs
betterment towards certain aspects which will be covered up in the future due to continue efforts
in the underneath by the management most of the ratio analyzed in the project illustrate a
positive effect and favorable to the performance of the company.

The company is able to meet its short-term obligation in time and also to manage its day-to-day
operations well. The other techniques used like comparative statements, common size statement
and trend analysis also shows that company financial position is satisfactory.
BIBLIOGRAPHY:
 WWW.bamulnandini.coop/AboutUs/visionmission,aspx
 www.bamulnandini.coop
 Primary data by interaction with the officers and the employees.
 https://www.investopedia.com/terms/i/interestcoverageratio.asp
 Financial management book by M Y KHAN AND P K JAIN
 Management Accounting book by SHASHI K GUPTA , R K SHARMA AND NEETI
GUPTA .
 https://en.wikipedia.org/wiki/Financial management
 www.google scholar.com
 www.://accountingexplained.com/financial/ratio
 https://en.wikipedia.org/wiki/financial performance
 https://www.investopedia.com/terms/i/interestcoverageratiio.asp
 https://www.kmfnandini.coop/
 https://financial-dictionary.the freedictionary.com