SUMMER TRAINING PROJECT REPORT ON

FINANCIAL & OPERATIONAL ANALYSIS of RANKO FREEZE CORPORATION

Submitted impartial fulfillment of the Requirement of award of the degree of

Master of business Administration

(Year 2011-13)

Under the Supervision of: Mr. Tapish Bohra Assistant Manager (Ranko Freeze Corp.)

Submitted by: Shreyas Pasricha 06716603911 MBA (General)

DECLARATION
I, Shreyas Pasricha, hereby state that this final evaluation report has been submitted to University School of Management Studies in partial fulfillment of the requirements of the Summer Internship Program in MBA (Masters of Business Administration) Program Class of 2011. The empirical information of this report is based on my experience in the Summer Internship Program. Any part of this project has not been reported or copied from any report of the University and others.

Date:

Shreyas Pasricha Enrollment No. 06716603911

ACKNOWLEDGEMENT I am writing this final evaluation report during the Summer Internship Program 2012 in the program of Master of Business Administration on Operations and Financial Analysis for University School of Management Studies, Guru Gobind Singh Indraprastha University. It has been a great challenge but a plenty of learning and opportunities to gain a huge amount of knowledge on the way of writing this report. I could not have completed my internship without the constant guidance of Mr.Sanjay, our amazing faculty guide, who helped me along the way and was always prepared to give me feedback and guidelines whenever I needed it. And one person, without his help and continuous support I couldnt have pursued my Summer Internship Program at Ranko Freeze Corporation is Mr. Tapish Kumar Bohra. I have learned a lot during these 6 weeks and I hope you will find my working as interesting and knowledge earning as I have and that this report is showing to all. And it will be useful for others wanting to learn about Summer Internship Program, my company Ranko Freeze Corporation, and the Logistics as well as Supply Chain Industry.

TABLE OF CONTENT
S. No. 1 1.1 1.2 1.3 2 2.1 2.2 2.3 3 3.1 3.2 3.3 3.4 4 4.1 4.2 4.3 TOPIC Executive Summary Chapter 1 Profile of the Company Industry Overview Company Profile Products Offered Chapter 2 Research Methodology and Design Objectives Scope Limitations Chapter 3 Data Analysis and Interpretation Objectives of the Analysis Financial/Ratio Analysis Operations Analysis SWOT Analysis Chapter 4 Conclusions and Recommendations Findings Recommendations Conclusion Bibliography Annexure PAGE NO

CHAPTER 1

PROFILE OF THE COMPANY

CHAPTER - 1 : INTRODUCTION

1.1 The Commercial Refrigeration Industry:

The commercial refrigeration industry includes the Air conditioning and refrigeration industry under it, but, excludes the Refrigerators, which forms a part of the white goods industry. It is a fragmented industry with many regional players and a few national players wherein the growth is dependent on rise in consumer spending. Market characteristics:

Commercial refrigeration products have a derived demand -that is, the demand is
dependent on the user industries performance. The products are used mostly in processed foods and beverage segments. Refrigeration components are mostly standardized; Customization occurs mainly in configuration of cold rooms / cold storage system, where the area to be cooled will determine the design of the equipment. Components are often sold on Cash and Carry basis. Seasonal demand for some categories such as Bottle Coolers, Ice Making Machines etc. Excise duty: 16 %; Import Duty - Basic: nil, surcharge : 2.5 %, countervailing : 16 % and special additional duty : 4 %. Channels: Direct selling of systems (except upcountry - through agents). Larger players sell components through dealers. Some regional players have tie-ups with national players for market sharing.

The following figure shows the size of the Air conditioning and Refrigeration Market in Indias per the latest data collected by a research company1 in this field.

Figure 1

Industry Structure:

Large number of players (> 1800); most with regional presence. Large presence of the small scale industries (SSIs). Refrigeration assembly units concentrated in West and North zones, which are also their major markets. Technology & Condensing Units:

Condensing unit consisting of compressors coils and thermostat - forms the `core of any commercial refrigeration system.

Condensing unit suppliers include Emerson Climate Technologies, Tecumseh, Danfoss, Voltas, Indfos & Alfa Laval.

Compressor is a key component in a condensing unit - accounts for around 70 % of the condensing unit cost. Commercial refrigeration compressors are usually imported.

System performance dependent on key components compressors. Components are usually standardized and they are merely assembled and commissioned on-site.

Type Bottle Coolers Market Rs. 35 crs. (US $ 8.1 mn)

Specification

Products offered: (Table 1) Usage

Players Profile 250 , (Bangalore); Ashwin Industries, (Ahmadabad); Freezking, (Bangalore); Imperial Refrigeration, (Calcutta); Freeze Tech, (Mumbai). -30 large players lore);Hikon, (Cal) Chetan Services, (Chennai); Krishna & Co.,(Mumbai). -25 players , (Bangalore) & Electron, (Chennai) are major players.

- 1000 ltrs Fast moving : 100, 250, 350 ltrs cooling ed designing for individual customers 30T Fast moving - 1-5 T ed design for individual customer, depending on storage area to 40 T alone process

retail outlets

Cold Room/ Walkin-coolers Market :Rs. 75 crs (US $ 17.4 mn). Cold Storage

Meat and Ice cream storage

Volume storage and transportation

Water coolers Market : Rs.125 crs (US $ 29 mn) Commercial Freezer Market : Rs. 30 crs (US $ 7.0 mn) Deep Freezers Market : Rs. 25 crs (US $ 5.8 mn) Ice Cream/ Softie Vending Machines Market : Rs. 5 crs (US $ 1.2 mn) Display Cabinets Market :Rs. 25 crs (US $ 5.8 mn) Ice-Making Machine Market: Rs.10 crs. (US $ 2.3 mn) L Fast moving 250 ltrs

-300 ltrs cooling; Medium Temperature cooling -800 ltrs Fast moving - 500 ltrs dispensers Restaurants and retail outlets

-60 players Voltas, Bluestar, Usha, Sidwal are majors. -200 players market Tech, (Mumbai); Murali Refrigeration,(Cochin) - 200 players Air Frig, (Bangalore); Imperial Refrigeration, (Cal); Blue Star -20 players - small players Refrigeration, (Chennai) - 200 players eeze, (Bangalore) Freeze Tech, (Mumbai) players - 11 eration, (New Delhi) Acme Sales, (Bangalore); Air Frig, (Bangalore); Chetan Services, (Chennai);

- 600

Used for low temperature storage Small scale manufacture of ice creams and softies Restaurants and bakeries for display of cakes and ice cream For making ice for fish / meat transportation

-20 ltrs Fast Moving : 5 ltrs applications -120 ltrs Fast moving : 60 ltrs

- 5 TR

Table 2 SWOT analysis of the Commercial Refrigeration Industry

STRENGTHS:

WEAKNESS:

Components availability & prices. Regional - distribution strengths. National - large institutional strengths. Ability to customize refrigeration configurations quickly. Select products application due to engineering strengths.

Lack of adequate storage infrastructure few cold storages, refrigerated trucks. High level of wastage of food products. Low level of conversion of food products into processed foods. Seasonality of demand for equipment such as freezers, ice making machine, bottle coolers. Changes in excise and customs duties on refrigeration components affect their demand.

OPPORTUNITIES:

THREATS:
New entrants including Carrier Refrigeration with a wide product range of refrigeration components. The new environmental policies and the carbon emission norms may also pose a threat to the Industry as some of the existing products do produce gases that are harmful to the environment.

Industry expected to grow around 10% p.a. Growth in the retailing sector. Investments in cold store / refrigeration chains across the country. Increase in the demand for fresh fruits and vegetables (processed as well as unprocessed), milk and milk products, fish and meat products. Exports thrust, especially in processed fruits& vegetables, fish and meat products.

1.2 Company Overview Ranko Freeze Corporation is the leading wholesaler and supplier of Refrigeration and Air-conditioning spare parts. For more than Two Decades we have been serving the Indian Sub-Continent and have been able to carve out our own name in refrigeration industry. We are a one stop shop for all the Refrigeration and Air-conditioning spares, satisfying our customers entire requirement under one roof. It is known for dependability and reliability and presently in their trading activities, represent the leading icons, like VOLTAS, Celfrost, Vestfrost, O General, Polaris, CIBIN, Danfoss, Maneurop, EMERSON DuPont,

COPELAND,

Emkarate,

Chemplast,

BITZER,

LAE,

Rothenberger, Ranco Eliwell, Stefani, Jumby etc. etc. Their product range is well diversified and it maintain a ready stock base of all the product range in the industry. Their major clients are Retailers across India especially the Southern and Western Region, wholesalers, Mechanics and Industries outside Delhi. They believe in Quality and transparency towards our customers and offer our products at the most competitive prices and building relationships with their customers forever.

Table 3 Fact Sheet of Ranko Freeze Corporation Year of Establishment Legal Status of Firm Nature of Business 1988 Partnership Importer, Supplier, Distributor, Wholesaler, Retailer, Trader Number of Employees Turnover Upto 30 People Upto US$ 0.25 Million (or upto Rs. 1 Crore Approx.) Major Markets Trade Membership Indian Subcontinent Member of NIRATA (Norther India Refrigeration and Air conditioning Traders Association)

Since RFCs inception, quality has been the keyword for them. The products which are sourced from the trusted manufacturers of the markets are checked by our professionals in compliance with international quality standards. Their aim is to offer quality products as per the exact specification of our clients. RFCs range is supervised on the basis of following parameters: Durability, Corrosion, Resistance, Functionality, Effective performance, Low maintenance, Longer functional life.

Products Offered by Ranko Freeze Corporation :-

S.No. Product 1) Professional Brand Products: Charging Line Box Flaring Tool Wheel Bender Electrical Components: Videocon Relay Rotary OLP make Whirlpool 1340 Relay OLP Timer: BPL Melory Timer L.G 3 Pin Timer Godrej F.F Timer Videocon Small Timer Thermostat: Godrej, Whirlpool, Indfos, Annapurna Brass Fittings: DIJ, GM, PIM, BAP (All Sizes) Sheet Metal parts, Plastic Parts, Cooling, Coils, Condensors, Modular, Door Switch, Bulbs, Bulb Holders, PVC Door Seals, Readymade Gaskets Hydrocarbon Gas: Durocool, Godrej Smart, Blossom, Infinity Value Empty Cylinders: 1 kg, 2 kg, 3 kg, 5 kg, 10 kg Spray Paint: Black, White, Silver, Red, Yellow, Blue, Green, Golden and Chrome Spares: Teflon Tapes, Rubber Bush, Blades. Tube Cutters

2)

3)

4) 5) 6)

7) 8) 9)

10)

CHAPTER 2

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

3.1 Purpose of the study:

To find out the Problem is the First Stage of the Research Process. It represents translating the management problem into research problem. It is well said- A Problem well defined is a problem Half solved Ranko Freeze Corporation is one of the Businesses that provide Compressors and other needed equipments for all the Refrigeration and Air Conditioning units. The company wants to know that in spite of good quality products and a very large presence in the industry, what are the reasons that they are still not aware of the Industry/Company and which affect companys financial health.

3.2 Objectives of the study: The main objectives of the study are as follows:
To get a brief overview of the companys working. To conduct study on financial aspects of the Company. To find out the challenges for financial growth. To analyze the working of Ranko Freeze Corporation and give suggestions based on the analysis and research. To study about the operations analysis of the company regarding its operating cycle, the amount of receivables etc. To identify, understand and interpret the problems and put forward suggestions.

3.3 Research methodology:

As this type of study or the business was studied for the first time , this research can be termed as an exploratory research. Also the Company is new, the inputs from this study will give a more detailed discretion as to what factors need to be studied for a better understanding of the financial stability and to enhance operational ability of the organization.

The major parts of a research methodology are: Research methodThrough secondary data study, observation,

experimentation. Analysis plan (MS- Excel has been used for analysis of the data.)

3.3.1 Research Design:

Secondary data is any information we may use, but which has not been specifically collected for the current research. This includes published sources of data, periodicals, newspaper reports and the internet. In this report, secondary data has been used in the form of balance sheets and other financial statements. These statements were studied for the purpose of gaining an insight into the companys financial structure and also determining some of the factors thus associated with the operations of the company.

Primary research can be defined as a research which involves collecting information specifically for the study on hand, from the actual sources such as consumers, dealers or other entities involved in the research. The advantage of primary research is that it is timely, focused, and involves no unnecessary data collection, which could be a wasted effort. The disadvantage could be that it is expensive to collect primary data. But, when an information gap exists, the cost could be more than compensated by better decisions, which are taken with the collected data.

3.3.2 Data collection Techniques

For completing the research, describing the reason behind the problem and fulfilling the objectives, data has been collected from the secondary sources. The secondary sources information is taken mainly from the last three years annual reports of Ranko Freeze Corporation.

3.3.3 Methods of data collection

Methods of collecting primary data: There are various methods of data collection. A Method is different from a Tool. While a method refers to the way or mode of gathering data, a tool is an instrument

used for the method. The important methods are (a) observation, (b) interviewing, (c) mail survey, (d) experimentation, (e) simulation, and (f) projective technique. In this research project the method used for primary data collection is observation. OBSERVATION: Observation may be defined as a systematic viewing of a specific phenomenon in its proper setting or the specific purpose of gathering data for a particular study. Observation as a method includes both 'seeing' and 'hearing.' It is accompanied by perceiving as well.

Methods of collecting secondary data: A clear benefit of using secondary data is that much of the background work needed has been already been carried out, for example: literature reviews, case studies might have been carried out, published texts and statistic could have been already used elsewhere, media promotion and personal contacts have also been utilized. This wealth of background work means that secondary data generally have a preestablished degree of validity and reliability which need not be re-examined by the researcher who is re-using such data. In this research project undertaken, Ranko Freeze Corporations financial statements and annual reports for the last three years have been used.

3.3.4 Limitations
I came across certain limitations while preparing this internship report. They are stated below: It was impossible for me to collect some data because of the confidential issue. I had to depend on the data of the head office. As I am an intern, it was not possible for me to prepare the report as I intended due to time shortness. As Ranko Freeze Corporation was a relatively new company, I was made available only two years data on this company. Mediocre online presence of the company.

Other limitations regarding this internship research project are as follows:

Dependence on an Electronic Computer: O.R. techniques try to find out an optimal solution taking into account all the factors. In the modern society, these factors are enormous and expressing them in quantity and establishing relationships among these require voluminous calculations that can only be handled by computers. Non-Quantifiable Factors: O.R. techniques provide a solution only when all the elements related to a problem can be quantified. All relevant variables do not lend themselves to quantification. Factors that cannot be quantified find no place in O.R. models. Distance between Manager and Operations Researcher: O.R. being specialist's job requires a mathematician or a statistician, who might not be aware of the business problems. Similarly, a manager fails to understand the complex working of O.R. Thus, there is a gap between the two. Money and Time Costs: When the basic data are subjected to frequent changes, incorporating them into the O.R. models is a costly affair. Moreover, a fairly good solution at present may be more desirable than a perfect O.R. solution available after sometime. Implementation: Implementation of decisions is a delicate task. It must take into account the complexities of human relations and behaviour.

About the topic

The word analysis is generically defined as follows: The examination and evaluation of relevant information to select the best course of action from various alternatives. From the definition, we can clearly see that analysis is very closely linked to relevant information and decision making. Operational analysis is the study of the operation or service delivery process on which the entire business is built. There can neither be any operational analysis nor any financial analysis without the existence of this operation. Financial Analysis mainly deals with the financial statements and related reports that are generated on a monthly basis like the Profit and Loss Account, Balance Sheet, Cash Flow and Capital Expenditure Statement. Financial analysis looks at the end result or the output of any operation or service. By virtue of looking at the output, financial analysis may not reveal qualitative aspects of the operation or service. For instance, the monthly Profit and Loss Account may

show a good profit for the month, but it will not be able to say whether customers were happy with the product/service provided. It is conceivable that customers are unhappy with the product/service and decide not to patronize the organization in future. Operational analysis goes behind the financial statements and takes a look at the processes that contribute to the key elements in those statements, namely revenues and expenses. Often, they emphasize the qualitative aspect of a financial index which is related to revenues and expenses and may relate to functions like human resources, training, engineering, etc.,

CHAPTER 3

DATA ANALYSIS AND INTERPRETATION

Financial analysis refers to an assessment of the viability, stability and profitability of a business, sub-business or project. It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements and other reports. These reports are usually presented to top management as one of their bases in making business decisions. Based on these reports, management may:

Continue or discontinue its main operation or part of its business; Make or purchase certain materials in the manufacture of its product; Acquire or rent/lease certain machineries and equipment in the production of its goods; Issue stocks or negotiate for a bank loan to increase its working capital; Make decisions regarding investing or lending capital; Other decisions that allow management to make an informed selection on various alternatives in the conduct of its business.

Goals Financial analysts often assess the firm's: 1. Profitability - its ability to earn income and sustain growth in both short-term and long-term. A company's degree of profitability is usually based on the income statement, which reports on the company's results of operations; 2. Solvency - its ability to pay its obligation to creditors and other third parties in the long-term; 3. Liquidity - its ability to maintain positive cash flow, while satisfying immediate obligations; Both 2 and 3 are based on the company's balance sheet, which indicates the financial condition of a business as of a given point in time. 4. Stability- the firm's ability to remain in business in the long run, without having to sustain significant losses in the conduct of its business. Assessing a company's stability requires the use of both the income statement and the balance sheet, as well as other financial and non-financial indicators. Methods: Financial analysts often compare financial ratios (of solvency, profitability, growth, etc.):

Past Performance - Across historical time periods for the same firm (the last 5 years for example), Future Performance - Using historical figures and certain mathematical and statistical techniques, including present and future values, This extrapolation method is the main source of errors in financial analysis as past statistics can be poor predictors of future prospects. Comparative Performance - Comparison between similar firms.

Comparing financial ratios are merely one way of conducting financial analysis. Financial ratios face several theoretical challenges: 1) They say little about the firm's prospects in an absolute sense. Their insights about relative performance require a reference point from other time periods or similar firms. 2) One ratio holds little meaning. As indicators, ratios can be logically interpreted in at least two ways. One can partially overcome this problem by combining several related ratios to paint a more comprehensive picture of the firm's performance. 3) Seasonal factors may prevent year-end values from being representative. A ratio's values may be distorted as account balances change from the beginning to the end of an accounting period. Use average values for such accounts whenever possible. 4) Financial ratios are no more objective than the accounting methods employed. Changes in accounting policies or choices can yield drastically different ratio values.

OBJECTIVES OF ANALYSIS (viz. the financial aspect):

The analysis would enable the present & the future earning capacity & the profitability of the concern. The operational efficiency of the concern can be assessed. Hence, the management can easily locate the areas of efficiency and inefficiency. The solvency of the firm, both short-term & long term, can be determined with the help of the financial statements analysis including ratio analysis, which is beneficial to trade creditors and share & debenture holders. The comparative studying is possible by the analysis of financial statements.

Analysis of past results in respect of earning & financial position of the enterprise is of great helping forecasting the future results. Hence, it helps in preparing budget.

Assets of the Company for 3 Years

Liabilities of the company for 3 years

Liabilities
6000000 5000000 4000000 3000000 2000000 1000000 0 2008 2009 2010 Liabilities

Opening and Closing Stock for 3 years

3500000 3000000 2500000 2000000 1500000 1000000 500000 0 2008 2009 2010 Year Opening Stock Closing Stock

RATIO ANALYSIS (For the years 2008,2009 and 2010) 1. Liquidity Ratios It includes Current ratio and Quick ratio. A) Current Ratio = Total Current Assets Total Current Liabilities

Ratio
2.1

2.05

1.95

Ratio

1.9

1.85

1.8 2008 2009 2010

The objective of calculating current ratio is to assess the ability of the enterprise to meet its short term liabilities promptly. It is also used to assess the short term solvency of the business enterprise since the ratio assumes that current assets can be converted into cash to meet its current liabilities. The current ratio of the company has been ideal in the year 2008 but came down to 1.90:1 in 2009 and again in 2010 came close to the ideal situation. Ideal current ratio states a proportion of 2:1 between the current assets and the current liabilities of the company. In this case, in all the 3 years, this ratio has been close to the ideal situation which indicates that both the current assets as well as the current liabilities were in a proper proportion in order to run the business and carry on the trading of goods.

2. Solvency Ratios A) Debt Equity Ratio = Total Debt Owners Funds

Ratio
1.4 1.2 1 0.8 0.6 0.4 0.2 0 2008 2009 2010 Ratio

The Debt-Equity ratio is computed to ascertain the soundness of the long term financial position of the firm. This ratio explains a relationship between debt and the equity. Debt means long term loans. Equity means shareholders funds or the owners capital. Here in this case, this ratio has been less than 2:1 in all the 3 years which indicates that there has been more use of owners capital rather than the debt in the form of long term loans. An ideal situation would be 2:1 but in 2008 this ratio was close to 1:1, in 2009 1.1:1 and in 2010 1.25:1. It shows that the proportion of total funds acquired by the firm by way of loans has been less when compared with the ideal situation.

3. Turnover Ratios It includes Stock Turnover Ratio, Working Capital Turnover Ratio, Total Assets to Debt Ratio and Fixed Assets Turnover Ratio. A) Stock Turnover Ratio = Cost Of Goods Sold Average Inventory

Ratio
2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2008 2009 2010 Ratio

Inventory Turnover Ratio establishes relationship between the cost of goods sold during a given period and the average amount of inventory carried during that period. It indicates whether the investment in stock has been effectively used or not. Higher ratio indicates that more sales are being produced by a unit of investment in stocks. In 2008, the stock turnover ratio was 1.18 times which indicates a lower ratio. But in 2009 this number rose to 1.99 times which

indicates that the company was producing more sales by a unit of investment in stocks. In 2010, this ratio again reduced and came to 1.23 times which indicates lower sales being made by the firm.

B)

Working Capital Turnover Ratio = Sales Working Capital (C.A C.L)

Ratio
2.1

2.05

1.95

Ratio

1.9

1.85

1.8 2008 2009 2010

This ratio indicates the number of times a unit invested in working capital produces sale. Working capital can be computed by deducting current liabilities from current assets. Higher the ratio, the better it is.

In the case of this company, the ratio was 2.07 times in 2008, 1.90 times in 2009 and 1.99 times in 2010. This shows that in these 3 years, the ratio was almost similar but since the ratio was on the lower side, it depicts that the company was not quite efficient in using the working capital properly which resulted in under-trading of goods.

C)

Total Assets to Debt Ratio = Total Assets Long Term Debts

Ratio
7 6 5 4 3 2 1 0 2008 2009 2010 Ratio

Total assets to debt ratio establishes a relationship between total assets and total long term debts of the company. An ideal situation arrives when this ratio is 2:1. In 2008, the companys total assets to debt ratio was 3.95:1, in 2009 it was 3.76:1 and in 2010 it was 3.05:1 which indicates that although this ratio was on the declining stage, still it was

much higher when compared with the ideal situation. Therefore, it can be said that the higher ratio in this case represents higher security to lenders for extending long term loans to the business.

D)

Debtors Turnover Ratio =

Net Sales Debtors + Bills Receivables

Ratio
7 6 5 4 3 2 1 0 2008 2009 2010 Ratio

This ratio establishes the relationship between net credit sales and average debtors of the year. It indicates the number of times the receivables are turned over in a year in relation to sales. It shows how quickly debtors are converted into cash. A high ratio is better since it would indicate that debts are being collected more promptly. In all the 3 years of comparison, this ratio was on the higher side as it was 6.89 times in 2008, 4.38 times in 2009 and 4.95 times in 2010. Though it declined in 2009 and 2010 but still it

indicated that the firm was quite efficient in collecting the debts and its operating cycle was moving quite nicely on the positive direction.

4. Operating Ratio = Cost of Goods Sold + Operating Expenses x 100 Net Sales

Ratio
97.00% 96.00% 95.00% 94.00% 93.00% 92.00% 91.00% 90.00% 2008 2009 2010 Ratio

The operating ratio is computed to establish relationship between operating costs and net sales. This ratio indicates the proportion that the cost of sales or operating cost bears to sales. Cost of sales includes direct cost of goods sold as well as other operating expenses, administration, selling and distribution expenses which have matching relationship with sales. Operating ratio plus net profit ratio is 100. In the year 2008, the operating ratio of the company was 96.9% which indicates decline in efficiency. Similarly in 2009, it was 96.39% and in 2010 it was 92.5%. This indicates that the ratio

was gradually declining and with time it indicated increase in efficiency of the company.

SWOT ANALYSIS

STRENGTHS: 1. Company having experience of about two decades, is confident of providing almost all kinds of goods to its customers whatever may be the season. 2. Company is regularly trying to enter into new areas of operation so that it can expand the area of trading of its goods and capture a big amount of market.

WEAKNESS: 1. Voluminous data makes working of company slow. 2. Limitation of data collection leads to delay in updating the new connections. 3. Company is not upgrading to new technology and opting for computerized stock verification which is leading to mismanagement of inventory resulting in losses.

OPPORTUNITIES: 1. Adequate training to the staff to manage the operating cycle. 2. An opportunity to grow by working systematically. 3. Good personal growth of the staff as well as the management. 4. .

THREATS: 1. Increasing competition. 2. Complacency and arrogance.

CHAPTER 4

CONCLUSIONS AND RECOMMENDATIONS

Conclusions

Recommendations

ANNEXURES

RANKO FREEZE CORPORATION 1571/72, Kucha Dhakhni Rai Street, Daryaganj, New Delhi 110002 Balance Sheet As On 31st March, 2008

Liabilities Partners Capital A/c Mr. Kamal Kumar Ranka Mr. Prakash Chandra Bohra Unsecured Loans

Amount

Assets Fixed Assets Current Assets Closing Stock Sundry Debtors

Amount 105,821

8,92,744.52 62,477.87

3,098,786.03 5,47,818.35

9,72,738 Loans & Advances Security Deposit with MTNL Prepaid Insurance Security Deposit with Reliance Sales Tax Refundable Cash & Bank Balances 58,798.25 19,120.38 16,270.43 3,837,899.42 3,837,899.41 7,200 2,219 2,000 15,256.78

Current Liabilities Sundry Creditors Advances Received from Clients Expenses Payable Bank of Baroda 1,867,998.97 6,543

RANKO FREEZE CORPORATION 1571/72, Kucha Dhakhni Rai Street, Daryaganj, New Delhi 110002 Balance Sheet As On 31st March, 2009 Liabilities Partners Capital A/c Mr. Kamal Kumar Ranka Mr. Prakash Chandra Bohra Unsecured Loans Amount Assets Fixed Assets Current Assets Closing Stock 70,405.77 Sundry Debtors 1,193,421 Loans & Advances Security Deposit with MTNL Security Deposit with Reliance VAT/CST Receivable Blowtech Air Device Boulton Trading Corporation D.D Motors Cash & Bank Balances Cash in Hand Bank of Baroda 9,23,542.95 3,025,650 Amount 98,696

9,29,196.42

7,200 2,000 48,049.55 2,483 5,265 10,000

Current Liabilities Sundry Creditors Advances Received from Clients Expenses Payable Bank of Baroda 2,214,022.08 7,454

32,678 16,270.43

39,771.75 3,35,203.27

4,497,861.52

4,497,861.52

RANKO FREEZE CORPORATION 1571/72, Kucha Dhakhni Rai Street, Daryaganj, New Delhi 110002 Balance Sheet As On 31st March, 2010 Liabilities Partners Capital A/c Mr. Kamal Kumar Ranka Mr. Prakash Chandra Bohra Secured Loans Unsecured Loans Amount Assets Fixed Assets Current Assets Closing Stock 2,48,182.22 Sundry Debtors 3,27,075.40 1,322,310 9,20,823.40 2,998,652.42 Amount 637,362

1,022,017.87

Loans & Advances Security Deposit with 7,200 MTNL Security Deposit with 2,000 Reliance VAT/CST Receivable 1,18,462.41

Current Liabilities Sundry Creditors Expenses Payable 2,089,303.59 31,877 Cash & Bank Balances Cash in Hand Bank of Baroda

38,970.50 3,17,301.59

50,40,772.32

50,40,772.32

RANKO FREEZE CORPORATION 1571/72, Kucha Dhakhni Rai Street, Daryaganj, New Delhi 110002 Trading and Profit & Loss A/c As On 31st March, 2008
Particulars To Opening Stock To Purchases To Carriage Inward To Gross Profit C/d To Rent To Salary To Printing & Stationery To Shop Expenses To Conveyance Expenses To Travelling Charges To Packing & Forwarding Charges To Staff Welfare & Sales Promotion To Postage & Stamps Expenses To Interest Paid To Accounting Charges To Bank Charges To Membership & Subscription Expenses To Telephone Expenses To Insurance Charges To Vehicle Oil & Maintenance To Legal & Professional Expenses To Additional Sales Tax To Depreciation To Net Profit Carried Forward Total Amount 2388941.51 3957638.74 5168 522464.88 Particulars By Sales (Net) By Closing Stock Amount 3775427 3098786.03

5760 72000 4377 45459 5610 45927 10703 4906 1406 81000 18000 11161.50 1200 49895.38 2617 21180 5500 3297 16769 116700.03 523467.91

By Gross Profit B/d By Short & Excess By Rebate & Discount

522464.88 0.03 1003

Total

523467.91

RANKO FREEZE CORPORATION 1571/72, Kucha Dhakhni Rai Street, Daryaganj, New Delhi 110002 Trading and Profit & Loss A/c As On 31st March, 2009
Particulars To Opening Stock To Purchases To Carriage Inward To Gross Profit C/d To Rent To Salary To Printing & Stationery To Shop Expenses To Conveyance Expenses To Travelling Charges To Packing & Forwarding Charges To Staff Welfare & Sales Promotion To Postage & Stamps Expenses To Interest Paid To Accounting Charges To Bank Charges To Membership & Subscription Expenses To Telephone Expenses To Audit Fees To Vehicle Oil & Maintenance To Legal & Professional Expenses To Rebate & Discount To Electricity Charges To Depreciation To Net Profit Carried Forward Amount 3186445 3304707.29 12809 569470.91 6120 78000 5785 9569 5165 29366 12265 4134 2044 129294 18000 6394 1000 35817 5045 23736 11000 484.13 24240 15563 146449.78 569470.91 Particulars By Sales (Net) By Closing Stock Amount 4047782.20 3025650

By Gross Profit B/d

569470.91

569470.91

RANKO FREEZE CORPORATION 1571/72, Kucha Dhakhni Rai Street, Daryaganj, New Delhi 110002 Trading and Profit & Loss A/c As On 31st March, 2010
Particulars To Opening Stock To Purchases To Carriage Inward To Gross Profit C/d Amount 3025650 3674088.76 12325 844785.66 Particulars By Sales (Net) By Closing Stock Amount 4558197 2998652.42

To Rent To Salary To Printing & Stationery To Shop Expenses To Conveyance Expenses To Travelling Charges To Packing & Forwarding Charges To Staff Welfare & Sales Promotion To Postage & Stamps Expenses To Interest Paid To Accounting Charges To Bank Charges To Telephone Expenses To Audit Fees To Vehicle Oil & Maintenance To Legal & Professional Expenses To Rebate & Discount To Electricity Charges To Depreciation To Interest on Car Loan To Net Profit Carried Forward

12000 82800 5693 22462 5630 54031 1293 4361 2554 143210 19800 7641 37179 5500 23453 11000 562.12 22340 110806 42495 341611.89

By Gross Profit B/d By Balance Written Off

844785.66 119358.25

964143.91

964143.91

RANKO FREEZE CORPORATION 1571/72, Kucha Dhakhni Rai Street, Daryaganj, New Delhi 110002 Sundry Creditors for the year 2007-08 S.No. 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) 20) 21) 22) Name of The Party M/s. Bhartia Metal Components M/s. B.K Industries M/s. Blackcat Industries M/s. Boulton Trading Corporation M/s. Classic Enterprises M/s. Cold-Gold Refrigeration M/s. Deepika Plastics M/s. Duomatic Electric Corporation M/s. Gagan Engineering Works M/s. Galaxy International M/s. Hi-Tech Industries M/s. Indus Engg. Co. M/s. Jain Engg. Works M/s. J.K Industries M/s. Jyotee Refrigeration M/s. Malhotra Engineering Works M/s. Peeco Metal Industries M/s. Pulsar Instruments, Gujarat M/s. Real Polymers M/s. Sanjay Refrigeration Co. M/s. Sartaj Machine Tools M/s. Technical Industries Amount 119,686 48,284 24,975 18,281 28,391 56,312 71,146 35,539 258,516 89,191 84,897 399,658 51,336 48,952 46,649 74,395 14,182 20,000 28,720 13,109 22,539 4,500 15,39,258

RANKO FREEZE CORPORATION 1571/72, Kucha Dhakhni Rai Street, Daryaganj, New Delhi 110002 Sundry Creditors for the year 2008-09 S.No. 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) Name of The Party M/s. Bhartia Metal Components M/s. B.K Industries M/s. Chandan Industries M/s. Chaman Lal & Sons M/s. Cold-Gold Refrigeration M/s. Deepika Plastics M/s. Duomatic Electric Corporation M/s. Gagan Engineering Works M/s. Galaxy International M/s. Hi-Tech Industries M/s. Indus Engg. Co. M/s. Jain Engg. Works M/s. Jyotee Refrigeration M/s. Malhotra Engineering Works M/s. Patel Packers M/s. Sanjay Refrigeration Co. Amount 161,556 21,219 111,831 12,240 29,012 103,783 35,539 689,739 98,975 73,397 506,177 93,240 35,149 14,601 11,024 9,878 20,07,360

RANKO FREEZE CORPORATION 1571/72, Kucha Dhakhni Rai Street, Daryaganj, New Delhi 110002 Sundry Creditors for the year 2009-10 S.No. 1) 2) 3) 4) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) Name of The Party M/s. Allied Industries M/s. B.K Industries M/s. Bhartia Metal Components M/s. Chaman Lal & Sons M/s. Deepika Plastics M/s. Elin Electronics Ltd. M/s. Gagan Engineering Works M/s. Galaxy International M/s. Hi-Tech Industries M/s. Indus Engg. Co. M/s. Jain Engg. Works M/s. Laxmi Spare Parts M/s. Mittal Refrigeration M/s. Patton Refrigeration India M/s. Sanjay Refrigeration Co. Amount 2,520 28,464 1,82,914 26,724 1,57,052 20,847 6,63,315 166,739 63,397 379,683 101,616 56,963 44,550 25,368 5,852 19,26,004

RANKO FREEZE CORPORATION 1571/72, Kucha Dhakhni Rai Street, Daryaganj, New Delhi 110002 Sundry Debtors for the year 2007-08 S.No. 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) 20) Name of The Party M/s. Acme Refrigeration M/s. Acme Sales M/s. Air Conditioning Components M/s. Best Refrigeration M/s. Chandra Industries M/s. Cool Point M/s. Cool Sales M/s. Cool Tech M/s. Durga Trading Co. M/s. Flowertech Products Co. M/s. Golden Refrigeration M/s. Intercool Refrigeration M/s. Jupiter Refrigeration M/s. New Swastik Refrigeration M/s. Precision Components M/s. Rise Refrigeration Co. M/s. R.K. Trading Coporation M/s. Royal Refrigeration M/s. Saurashtra Refrigeration M/s. Shrijan Export Amount 14,148 46,993 308 43,264 10,730 6,677 19,838 6,655 9,562 4,500 5,479 111,649 5,876 10,577 7,875 74,298 6,650 9,578 9,391 15,132 4,19,180

RANKO FREEZE CORPORATION 1571/72, Kucha Dhakhni Rai Street, Daryaganj, New Delhi 110002 Sundry Debtors for the year 2008-09 S.No. 1) 2) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) Name of The Party M/s. Acme Refrigeration M/s. Acme Sales M/s. Best Refrigeration M/s. Chandra Industries M/s. Cool Point M/s. Cool Sales M/s. Cool Tech M/s. Durga Trading Co. M/s. Golden Refrigeration M/s. Intercool Refrigeration M/s. New Swastik Refrigeration M/s. Rise Refrigeration Co. M/s. R.K. Trading Coporation M/s. Royal Refrigeration M/s. Saurashtra Refrigeration M/s. Shrijan Export Amount 9,701 46,578 26,394 10,694 29,781 104,393 10,271 37,179 16,851 28,458 3,060 160,242 8,100 26,850 39,051 8,770 5,66,343

RANKO FREEZE CORPORATION 1571/72, Kucha Dhakhni Rai Street, Daryaganj, New Delhi 110002 Sundry Debtors for the year 2009-10 S.No. 1) 2) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) Name of The Party M/s. Acme Refrigeration M/s. Acme Sales M/s. Best Refrigeration M/s. Chandra Industries M/s. Cool Point M/s. Cool Sales M/s. Cool Tech M/s. Durga Trading Co. M/s. Golden Refrigeration M/s. Intercool Refrigeration M/s. New Swastik Refrigeration M/s. Rise Refrigeration Co. M/s. R.K. Trading Coporation M/s. Royal Refrigeration M/s. Saurashtra Refrigeration M/s. Shrijan Export Amount 8,915 17,381 31,161 10,694 12,161 60,600 29,847 5,600 44,937 15,142 64,660 53,713 12,097 14,988 17,105 19,442 4,18,443

BIBLIOGRAPHY
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