Praveen Kumar MCP

HANGYO ICECREAM PVT.
LTD
KARNATAK UNIVERSITY, DHARWAD
INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH

HUBLI.
Major Concurrent Project (MCP)

A report on
“A STUDY ON FINANCIAL PERFORMANCE BASED ON

RATIO ANALYSIS”
AT
HANGYO ICECREAM PVT.LTD
This Report
Submitted to
KARNATAK UNIVERSTIY, DHARWAD
In partial fulfillment of the requirement for the award of degree in
MASTER OF BUSINESSADMINISTRATION
Carried during the academic year 2014-2015
Submitted by:
(PRAVEEN KUMAR)
Registration No: MBA141261024
INTERNAL GUIDE: EXTERNAL GUIDE:
Prof. AMARUTHA Mr.V.K.PATIL(HR)

Asst. Professor HANGYO ICECREAM
IBMR, HUBLI PVT.LTD KIRWATTI
INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 1

CONTENTS
SI.
TOPICS PAGE NO
NO
1 Executive Summary 2-4
Industry Profile
Company Profile:
5- 37
2  Brief about the company
 Companies Vision, Mission and Objectives
 Brief about the organization structure

About the project 38-40
a)Objectives of the study
3
b)Scop of the study
c)Limitation of the study
Research Methodology of the project 41
a) Primary Data
4 b) Secondary Data
c) General Approach
Conceptual Framework
 A Review of Earlier Research studies conducted
5  Theoretical summary 42-47
 Literature Review
Analysis, Findings and suggestions 48-70

6 SWOT analysis
Conclusion 71-72
7
Bibliography 73
8
Annexure 74-76
9

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
Consumption of branded ice creams manufactured by organized sector is

restricted to metropolitan cities and other towns. The organized players have not been
able to extend their distribution chain to small villages and small towns, due to small
size of market and non-availability of cold chain. Presence of unorganized sector and
unbranded products is quite large in rural and semi urban areas. The unorganized sector
mainly self frozen milk candies. Quality of production is inconsistent and s often of
unacceptable hygiene standards.
Hangyo ice creams Pvt, Ltd incorporated in 2002 is a flagship company of Srikrishna
Group, which has turnover of more than Rs.100 Corers. Srikrishna Group is a first
organized private sector venture in milk industry in the State of Karnataka. Similarly
Hangyo ice creams pvt Ltd is a first private sector organized player of the state of
Karnataka in ice creams category.
The company’s present plant of ice creams manufacture and fully fledged
milk and milk products Dairy is based at No.52 Heror village in Udupi District. It has a
capacity of 10,000 Liters of ice creams production per day. Different novelties of ice
creams in 44 varieties consisting of Cones, candies, sundaes and ice creams cups of
different flavors are manufactured in the plant. The first plant was established in 2003
with all indigenous content. Dairy plant of Hangyo ice creams Pvt Ltd has a capacity of
50,000 ltr/day of processing and distribution of milk and milk products.
The following project gives us a clear understanding of the company’s detailed

information which includes nature, vision, products/service area of operation,
competitor’s information. The project also includes the regarding the achievements and
also their work flow their future growth and the SWOT Analysis.

THESUMMER INPLANT PROJECT‘ASTUDY OF RATIO ANALYSIS AT

HANGYO ICE CREAMS PVT LTD.’Deals to ascertain the efficiency of the company.
Ratio analysis is one of the powerful techniques which are widely used for interpreting
financial statements.
This research is on the basis of a study of RATIO ANALYSIS IN HANGYO

ICE CREMS PVT LTD. This was one of the primary objectives of the study apart from
the other objectives.
NEED OF THE STUDY
 The main purpose behind the study is to analyse the company financial position
 TO know how the company coordinates its managerial function by using ratio
analysis
 To know how the company to communicateswith all people is informed about

objectives, policies and performance.
 Andevaluating the performance of the company adapting ratios.

INDUSTRY PROFILE

INTRODUCTION
Hangyo Ice Creams Pvt. Ltd., is a flagship company of Srikrishna Group, which
is a Rs.100 crore entity with interests spanning various sectors like milk and milk
products, ice creams and fresh foods, restaurants and hospitality. Srikrishna Group has
the distinction of being the first organized private sector venture in milk industry in
Karnataka state. Continuing in the same pioneering tradition, Hangyo Ice Cream Pvt.
Ltd., is also Karnataka’s first private ice cream manufacturer in the organized sector.
Incorporated in 2002, Hangyo, is today a leading ice cream brand loved by consumers
across all segments of society in its rapidly growing market spanning the states of
Karnataka, Kerala and Goa.
ISO CERTIFICATION:
Hangyo Ice Cream Pvt. Ltd., is a ISO 22000:2005 certified company for both its
divisions - Dairy and Ice Cream. Hangyo is probably the first ISO certified company in
private sector in ice cream manufacture in the state.
MARKET REACH:
Hangyo ice creams are offered in a variety of presentations like cups, cones and
candies. At present 138 varieties of ice creams are available in these novelties and also
in larger take home family packs. Hangyo Ice Creams are presently marketed
throughout Coastal Karnataka from Mangalore to Karwar and in major cities of the
state like Bangalore, Mysore, Hubli, Dharwad, Belgaum, Haveri, Gulbarga, Bagalkot,
Bijapur. The small towns like Athani, Navalgund, Naragund, Ranebennur, Gadag are
also covered. Hangyo Ice Creams have already opened in Solapur and Kolhapur, in
southern Maharashtra.
RETAILING MODELS:

Strong retailing network is the key to win any retail market. Hangyo Ice Creams
has introduced an unique retail format which has enabled the brand to remain
consistently successful. This format relies on a chain of franchisees called
“HangyoParlours” and “Hangyo Shoppes” for the vending of ice creams and milk
products.
Hangyo Ice Creams Pvt. Ltd., presently has a network of over 6000 retailers in
its operational area. In larger cities, Hangyo Ice Creams also has valuable associations
with bigger Retailing giants like Big Bazaar, Metro, More and Reliance Fresh for
display and sales of its varieties of ice creams
INFRASTRUCTURE:
Maiden Unit : The company’s maiden full-fledged manufacturing plants are

situated in Heroor Village of Udupi District. This plant was established in 2003 with all
indigenous content.
The plant has production capacity of 10,000 litres of ice cream per day. All the
ice cream products of the company are manufactured in this plant in various
presentation like Cones, Candies, Sundaes and Ice Cream Cups.
The dairy unit of the plant has a capacity of 50,000 litres/day of processing and
distribution of milk and milk products.
New Plant : In view of overwhelming response from the channel partners and
also the consumers, Hangyo Ice Creams has embarked on a major expansion drive
which will result in increased capacity and bigger market share.
As a first step in this direction, a New Plant has been established by the
company at Hosalli Village, Kirwatti on National Highway 63 near Yellapur, Uttar
Kannada District. The plant is just 45 kms from Hubli.
The new imported automatic plant has a production capacity of 16,000

litres/day of ice creams and can produce ice cream mix too. The company had also
installed the continuous freezers to match the processing and manufacturing process;
compatible packing capacity is also available to support the production process.

NEW MARKETS:
Hangyo, which entered in the market as a regional player confining to the

Karnataka market is now poised for growth by venturing into other states.
The present infrastructure and the new addition would help the company to
reach out to the mar1
Gkets of Pune in Maharashtra and enter the Hyderabad City of Andhra Pradesh.
Sharing smiles, Hangyo is sure to earn a good Brand Equity in the new markets. The
variety of novelties, which would be produced in this plant would certainly entertain
the primary consumers of ice creams – children and youth. Hangyo’s vision is to
become a national brand in coming years.
HANGYO AND SOCIETY:
Hangyo is a committed corporate citizen and helps directly and indirectly

around 3500 families presently. With this new plant our contributions would be for
more than 5000 families in society directly or indirectly.
Hangyo Ice Creams conducts annual interschool cricket tournament in Mangalore,

whereby the winning team and those students who excel in academic performance in
their 10th standards are awarded scholarships. This has become a very popular feature
in the city of Mangalore.

COMPANY PROFILE

FIRST PLANT:-

SECOND PLANT:-

COMPANY ORGANISATION PROFILE
Name of company : HANGYO ICE CREAMS PVT LTD,
Name of proprietors : Mr. Dinesh Pai
Mr. PradeepPai (M.D)
Mr. JagdishPai (E.Director)
Started : 2011
Location : NH 63 Hosalli VillageKirwatti
Products : Ice creams
Brand : Hangyo
No. of Employees : 105
Turnover : 100 Cr (Whole Group)
Future Plans : Planning to run two shifts in 2014
New entrance in puneTamilnadu 2015
Email :www.hangyo.in

BACKGROUND:
Hangyo Ice Creams Pvt. Ltd., incorporated in 2002 is a flagship company of Srikrishna
Group, which has turnover of more than Rs.100 Crores. Srikrishna Group is a first
Organized Private Sector venture in Milk Industry in the State of Karnataka. Similarly
Hangyo Ice Creams Pvt. Ltd., is a first Private Sector organized player of the State of
Karnataka In Ice Cream category.
PRESENT INFRASTRUCTURE:
The Company’s present Plant of Ice Cream Manufacture and full fledged Milk
and Milk Products Dairy is based at No. 52, Heroor Village in Udupi District. It has a
capacity of 10,000 Litres of Ice Cream production per day. Different novelties of Ice
Creams in 34 varieties consisting of Cones, Candies, Sundaes and Ice Cream Cups of
different flavours are manufactured in the Plant. The First Plant was established in 2003
with all indigenous content.
Dairy Plant of Hangyo Ice Creams Pvt. Ltd., has a capacity of 50,000 litres/day of
processing and distribution of Milk and Milk Products

ISO CERTIFICATION:
Hangyo Ice Creams Pvt. Ltd., is a ISO 22000:2005 Certified Company for its
both divisions of Diary and Ice Cream. The Company is probably the first ISO Certified
Company in Private Sector in Ice Cream manufacture in the State
MARKET:
Hangyo Ice Creams are presently marketed in Coastal Karnataka from Mangalore to
Karwar and other major cities of the State like Bangalore, Mysore, Hubli, Dharward,
Belgaum, Haveri, Gulbarga, Bagalkot, Bijapur. The small towns like Athani,

Navalgund, Naragund, Ranebennur, Gadag are also covered. Hangyo Ice Creams have
already opened in Sholapur &Kholapur, in Maharashtra,
PRODUCTS:
Hangyo has variety of Ice Creams in cups, cones and candies. The 44 varieties of Ice
Creams are being served in these novelties and also in take homes big family packs.
RETAILING:
Hangyo Ice Creams has introduced a Retail format called “HangyoParlours” and
“HangyoShoppees” These formats are vending variety of Ice Creams and Milk
Products.
Hangyo Ice Creams Pvt. Ltd., has a networking of 3400 Retailers in their operational
area. Hangyo Ice Creams has introduced another format called “Just Hangyo Exclusive
Dealer” (JHED) for the smaller towns. The momentum of this outlet is expected to be
rapid.
In retailing era, Hangyo Ice Creams have association with bigger Retail
Formats like Big Bazaar, Metro, More and Reliance Fresh for display and sales of its
varieties of Ice Creams.

THE NEED OF THE SECOND PLANT:
The overwhelming response from the Channel Partners and also the consumers, `
Hangyo Ice Creams needs more capacity to serve the existing consumers for their fuller
satisfaction. Moreover Hangyo being in the business of Spreading Happiness through
its Ice Creams, new enquiries from other geographical areas are compelling to enter the
new Markets.
NEW PLANT:
The New Plant has been established by the Company at Village Hosalli,
Kirwatti on National Highway 63 near Yellapur, Uttar Kannada District. The Plant is
just 45 K.M. away from Hubli. The new Plant has a capacity of producing 16,000
liters/day of Ice Creams in imported automatic Plant. The said Plant equality has
processing capacity of Ice Cream Mix. The company had also installed the Continuous
Freezers to match the Processing and manufacturing Process.

The compatible packing capacity to the manufacturing capacity is also

available. The automatic candy Plant of 6000 candies/hour capacity is installed thereby
having capacity of producing 1.00 Lakh candies of different varieties like choc-bar and
water candies is available now with Hangyo. This is the 8th Plant in India and the First
in Karnataka.
The other automated Machine is the Cup Filler having capacity of filling 10,000
cups of 50 ml/100ml per hour. The Company now can produce 1.00 Lakh cups Ice
Cream per day in the New Plant. The variety of cones and sundaes is the in thing to
today’s market. Hangyo has installed 5000/hour Cones/Sundaes filling automated
machine.

HANGYO STRATEGY:
Hangyo would thrust Ice Cream as a Dessert for its regular use in families. The family
segment in the Market is very large and taken home sector would increase in years to
come. The unorganized sector is dominating in Tier-3 cities and villages. Wherein
Hangyo would reach and spreads its wings to popularize Ice Cream in an effective way.
The concentration in Tier-2 cities would also give boost to the sales of Hangyo.
The existing markets also would be strengthened with new novelties in Ice
Creams and would attract more and younger generation for consumption of Ice Cream.

NEW MARKETS:
Hangyo, which entered in the market as a Regional player confining to the

Karnataka Market, Now poised for growth by entering other States
The present infrastructure and the new addition would help the company to reach up to
the markets of Pune in Maharashtra and enter the Hyderabad City of Andhra Pradesh.
We have a Mission of Spreading Happiness, hence are sure to earn a good Brand
Equity in the new markets. The variety of novelties, which would be produced in this
Plant, would certainly entertain the primary consumers of Ice Creams – Children and
youth. Hangyo’s vision is to become a National brand in Coming years.
HANGYO AND SOCIETY
Hangyo is a committed Corporate Citizen and helps directly and indirectly around 3500
families presently. With this new Plant our contributions would be for more than 5000
families in the society directly or indirectly.
Hangyo Ice Creams on yearly basis conduct interschool Cricket Tournament in

Mangalore and for a winning Team and those students who excel in Academic
performance in their 10th standards are awarded Scholarships. This has become a very
popular feature in the City of Mangalor.

AWARDS:

 Srikrishna Milks Pvt. Ltd., the pioneer enterprise of the Group got "Best Small
Scale Industry" Award from the Government of Karnataka in 1993.
 SrikrishnaDugdhaPrakalpa Ltd., the Group Company got"Best Small Scale

Industry" Award from the Government of Karnataka in 1997.
 Mr.Pradeep G. Pai, Managing Director, Hangyo Ice Creams Pvt.Ltd., received

"UdyogBharati" Award in 2003 from Indian Achievers Forum for Excellence in
Leadership, Innovation and commitment to values in enterprise.
 Hangyo Ice Creams Pvt. Ltd., got "ISO 22000:2005" Certification for its Dairy Unit
from JAS-ANZ Certification Agency in 2009.


OTHER FACILITIES FOR EMPLOYEES

 Leavers -Casual leaves 12 day/year

-Sick leaves 12 day/year
 Fringe Benefits - Morning Breakfast, lunch

-Canteen Facilities
-Medical Insurance
 Safety Provisions - Uniforms

- Shoes and socks
- Safety glosses
- First-aid-service
 Monetary Incentives -Yearly bonus fixed act

‘’minimum Bonus act’’
PRODUCTION IN DIFFERENT SEASONS

COMPETITORS
 Fantasky
 Amul
 Idel

DEFRENT TYPES OF OUR PRODUCTS
CUP ICE CREAMS

CANDIES

SHORT TREAT

CREAMY CANDIES

SRIKHAND
CONES


VISION, MISSION
AND
OBJECTIVES

VISION:-
Is to be major players in the state of Karnataka with the product folio
MISSION:
To improve quality of products and services by promoting healthy practices by

economical operation and with an aim to service ultimate consumers to their utmost
satisfaction price with an optimization of groups helps.
OBJECTIVES:
 Maintain on the delivery of product

 Reduce the inventory caring cost
 To increase the number of industries in the district and business out of
Karnataka.
 Increase the demand of the product.
 To use modern technology in maintaining the quality by increasing the
productivity.

ORGANISATION CHART

MARKETING STRATEGY

FINANCE DEPARTMENT
Finance department maintains many books of accounts mainly journal book,

profit & loss account, balance sheet.Whenever amount is paid to any department that
also record in the book of accounts they spend more amounts to purchasing the raw
milk butter cream etc, finance & accounting section in hangyo ice cream pvt ltd is just
like ministry f finance as its preparing budget every year & financial roles for receipts 7
payments are framed & also it maintain all the end of year its preparing financial
statements Mr.M.RajeshKini (C.A) of hangyo ice cream pvt ltd
.
CAPITAL STRUCTURE
Capital has been raised by
1:Shares
2:Deposit from members
3:Loan& advance
ACCOUNTS & RECORDS
They accounting year of the union shall be 1st June to 30th June the books of
accounts &Other record shall be maintained as prescribed in the rules & such other
records as may be found necessary.
The statement showing assets and liabilities and profit and loss account previous
year shall be prepared before 31 August

MARKETING DEPARTMENT
Marketing has been defined in various ways. The definition that serves our
purpose best is as follows
Marketing is social and managerial process by which individuals and group

obtained what they need and want to creating, offering and exchanging product of with
others marketing has a process of discovering and translating consumers need and want
into products and services specification creating demand for this products and then
interim expanding this demand. Marketing attempts to recognize the need and develop
products for meeting the activity. The consumers and his satisfaction is prominent in all
marketing decion of successful firms.
PRODUCTION DEPARTMENT
Meaning of production conversion of raw material to semi finished product

through finished product this process is called as production
Product is very important in every industry without this in department unit move.
In a production process department we have
 Storage tank capacity of 1000ltr
 Production Plant


ABOUT THE STUDY OF

PROJECT

TITTLE OF THE PROJECT:
“A STUDY ON RATIO ANALYSIS AT HANGYO ICECREAM PVT LTD

KIRWATTI”
OBJECTIVESOF THE STUDY:
 To understand and study the meaning and importance of ratio

analysis
 To understand the ongoing process and to suggest short comes, if
any
 To study different types of ratios
 To analyze the solvency ratios of HANGYO ICECREAM PVT
LTD
 To analyze the turnover and profitability ratio of HANGYO
- ICECREAM
SCOPE OF THE STUDY
This study is an attempt to study the organization as a whole and to study the different
department in detail, to get the detailed knowledge about an organization from different
aspects and to study the function of the different department which constitutes an
organization. So the attempt can make to suggest effective changes in that the
organization to achieve its objectives and the different department contribute
effectively towards the achievement of this organization goals.
LIMITATION OF THE STUDY:

This study was conducted to meet the academic

requirements and hence suffers from time constraint some of the findings of this study
may not directly reflect the management’s financial policies. These policies are
influenced by various and are beyond the scope this study.
The limitation was we have to study in single organization. There was a time limit for
the study and analyze the data.
 Only quantitative analysis: Ratios are often called quantitative tools because
their computations are based on only quantitative or numerical figures. The
qualitative aspects of the concerned numerals are totally ignored in the process
of ratio analysis. Ignoring qualitative aspect may mislead the users of ratios. For
example, a high current ratio indicates a satisfactory loan repayment capacity of
a firm. But if its current assets consist of a large quantity of obsolete stock or its
debtors are slow paying the satisfactory trend of loan repayment capacity as
indicated by the current ratio may prove to be only a paper jugglery.
 Dependence on financial statements: Ratios are always based on information

disclosed in basic financial statements like the Profit and Loss Account and the
Balance Sheet. Financial statements have their own limitations. So ratios
computed on the basis of information disclosed in those financial statements
cannot also be free from such limitations. For getting rid of these limitations
before computing ratios some adjustments are required to be ma-dc in the
information disclosed in financial statements. In reality it is not done and so
ratios always suffer from the limitations of the financial statements.

RESERCH METHODOLOGY
In order to make this project more efficient and valuable certain methods are
adopted with regard to collection of data and such is collected are analyzed in the form
of chart and table and evaluated to provide valuable and meaningful information.
DATA COLLECTION
There are two way of collecting data first one is direct method second one is in
direct method primary data are collected in the direct method and secondary data are
collected in direct method
PRIMARY DATA
If is collected by personal visit to the company frequently. By Direct data or

information collected from external guide employees of the company
SECONDRY DATA
Secondary data is collected trough annual, reportprofit and loss a/c ,balance
sheet and also by visiting the company’s website.

CONCEPTUAL FRAME WORK
CONCEPTUAL FRAME WORK
RATIO ANALYSIS

A Ratio is a relationship between two or more items expressed in

mathematical terms. It is an expression of quantitative relationship between two
amounts or items which is expressed in numbers or percentage. Say, there are 50
computers in an office where 200 employees are working. For identifying a quantitative
relationship between the number of employees working and the number of computers
used in the office, we should calculate Employee—Computer Ratio, which is 200: 50 =
4 : 1. Therefore, a ‘ratio’ is a quantitative expression which exhibits a comparative
relationship of one item with the other.
SOURCES OF DATA FOR FINANCIAL RATIOS
Values used in calculating financial ratios are taken from the balance
sheet, income statement, statement of cash flows or (sometimes) the statement of
retained earnings. These comprise the firm's "accounting statements" or financial
statements. The statements' data is based on the accounting method and accounting
standards used by the organization
RATIO ANALYSIS REQUIRES THREE STEPS
 Selection of relevant various Accounting Data from the Financial Statements

 Computation of related Accounting Ratios using those selected Accounting
Data
 Analysis and interpretation of those Accounting Ratios in a very significant,

logical and useful manner with an objective to obtain some conclusive financial
information of the enterprise. In the phase of Ratio Analysis, Computed Ratios
are generally compared with some predetermined standards to make any
comment as regards to the financial position of the enterprise.
NEED OF RATIO ANALYSIS

 Horizontal Analysis - the analysis is based on a year-to-year comparison of a

firm's ratios,
 Vertical Analysis - the comparison of Balance Sheet accounts either using

ratios or not, to get useful information and draw useful conclusions, and
 Cross-sectional Analysis - ratios are used and compared between several firms
of the same industry in order to draw conclusions about an entity's profitability
and financial performance. Inter-firm Analysis can be categorized under Cross-
sectional, as the analysis is done by using some basic ratios of the Industry in
which the firm under analysis belongs to (and specifically, the average of all the
firms of the industry) as benchmarks or the basis for our firm's overall
performance evaluation.
IMPORTANCE OF RATIO ANALYSIS
As Ratio Analysis is a very powerful tool of analyzing Financial Statements, it

plays a vital role to the facts of determining the financial strength and weakness of an
enterprise. Its importance lies in the fact that it presents various information as obtained
from the Financial Statements in a comparative way, and helps in analyzing the
performance of the enterprise. Ratio Analysis, as an analytical tool of Financial
Statement Analysis, plays the following role:
 It measures and evaluates the financial condition of an enterprise.
 It measures and evaluates liquidity, solvency, profitability, managerial

efficiency, Capital Structure and activity of an enterprise.
 It measures and evaluates the operating effectiveness of an enterprise.
ADVANTAGES OF RATIO ANALYSIS

 It is treated as the most powerful tool for measuring short-and long-term

solvency of a concern.
 It is also treated as an essential tool for measuring the profitability and

managerial efficiency of a concern.
 It is considered as the most important tool for measuring the operating
activity of a concern.
 It is treated as one of the most important tool for the Capital Structure
Analysis of a concern.
 It summarizes the large number of quantitative Accounting Data by

calculating the different Ratios.
 It relates the present accounting information with the past.
 It helps the management to prepare the necessary Budget and to formulate the
future policies.
 An effective inter- and intra-firm comparison of Accounting Data can be done

with the help of
LIMITATIONS OF RATIO ANALYSIS

 It depends on the data supplied from the process of Financial Accounting, and
if those data are incorrect, information obtained from the Ratio Analysis
cannot be relied upon.
 Ratio Analysis may tend to interpret the wrong direction if it is based on

unauthenticated data.
 As the Ratios are calculated on the basis of the past results, a proper
prediction for future may not always be dependable.
 A single Ratio calculated for any functional area of a business does not
convey its conclusive state. A series of Ratios is needed to get any conclusive
idea about that area of the business.
 It is formulated on the basis of historical figures as obtained from the

Financial Statements. Performance of a concern based on the historical data
does not always indicate its present real condition.

LITERATUREREVIEW
Review of Literature refers to the collection of the results of the various

researches relating to the present study. It takes into consideration the research of the
previous researchers which are related to the present research in any way. Here are the
reviews of the previous researches related with the present study:
AUTHOR
BOLLEN (1999)
Conducted a study on Ratio analysis on which he found three different uses

of ratio variables in aggregate data analysis: (1) as measures of theoretical concepts, (2)
as a means to control an extraneous factor, and (3) as a correction for
heteroscedasticity. In the use of ratios as indices of concepts, a problem can arise if it is
regressed on other indices or variables that contain a common component. For example,
the relationship between two per capita measures may be confounded with the common
population component in each variable. Regarding the second use of ratios, only under
exceptional conditions will ratio variables be a suitable means of controlling an
extraneous factor. Finally, the use of ratios to correct for heteroscedasticity is also often
misused. Only under special conditions will the common form forgers soon with ratio
variables correct for heteroscedasticity. Alternatives to ratios for each of these cases are
discussed and evaluated.
COOPER (2000)
Conducted a study on Financial Intermediation on which he observed that the

quantitative behaviour of business-cycle models in which the intermediation process
acts either as a source of fluctuations or as a propagator of real shocks. In neither case
do we find convincing evidence that the intermediation process is an important element
of aggregate fluctuations. For an economy driven by intermediation shocks,
consumption is not smoother than output, investment is negatively correlated with
output, variations in the capital stock are quite large, and interest rates are pro cyclical.
The model economy thus fails to match unconditional moments for the U.S. economy.
We also structurally estimate parameters of a model economy

DATA ANALYSIS

DATA ANALYSISN AND INTERPRETATION
This project is regarding the Ratio analysis and its management of the
HANGYO ICE CREAMS PVT LTD IN KIRWATTI. This study is also limited to the
Ratio management. The data and information collated from the Sir V.K.Patil and
through discussion with personal interview and other persons relating to the other
department of HANGYO ICE CREAMS PVT LTD, In addition to these to annual
reports of various financial years the company.
THUS, THE ANALYSIS AND INTERPRETATION OF DATA

WERE MADE BY TAKING
 PROFIT AND LOSS
 BALANCE SHEET

CURRENT RATIO
The current ratio is an indication of a firm's market liquidity and ability to

meet creditor's demands. Acceptable current ratios vary from industry to industry and
are generally between 1.5 and 3 for healthy businesses. If a company's current ratio is
in this range, then it generally indicates good short-term financial strength. If current
liabilities exceed current assets, then the company may have problems meeting its
short-term obligations. If the current ratio is too high, then the company may not be
efficiently using its current assets or its short-term financing facilities. This may also
indicate problems in working capital management.
Year Current asset Current liabilities Ratio
2013 49520182 45578357 1.09
2014 62776913 52368263 1.19
2015 67607734 66624010 1.01

GRAPHICAL REPRESENTATION
CURRENT RATIO
1.2
1.15
1.1
1.05 1.19 CURRENT RATIO
1 1.09
1.01
0.95
0.9
2013 2014 2015
INTERPRETATION
Conventional rule of current ratio is 2:1. In the year 2013 current ratio increased
1.09. in the year 2014 current ratio level of last year 1.19. In the year 2015 also level of
a ratio 1.01 totally company ratio is level.

RETURN ON EQUITY
Return on equity (ROE) measures the rate of return on the ownership interest
(shareholders' equity) of the common stock owners. It measures a firm's efficiency at
generating profits from every unit of shareholders' equity (also known as net assets or
assets minus liabilities). ROE shows how well a company uses investment funds to
generate earnings growth. ROEs between 15% and 20% are generally considered good
Year Profit after tax Net worth Ratio
2013 2052954 41859453 0.05
2014 2378522 51188608 0.04
2015 2668980 57867588 0.04

return on equity
0.05
0.045
0.04
0.035
0.03
0.025 return on equity
0.02
0.015
0.01
0.005
0
2013 2014 2015
INTERPRETATION
In the year return on equity ratio increased 0.05 net worth is increased and in
the year 2014ratio is decreased 0.04. In 2015 of ratios also decreased 0.04 of this year.
The company ratio is decreasing way.

RETURN ON ASSETS RATIO
Return on assets ratio is the concept of an investment of some resource yielding

a benefit to the investor. A high ROI means the investment gains compare favorably to
investment cost. As a performance measure, ROI is used to evaluate the efficiency of
an investment or to compare the efficiency of a number of different investments. In
purely economic terms, it is one way of considering profits in relation to capital
invested.
Year Profit after tax Fixed asset Ratio
2013 2052954 79294531 0.02
2014 2378522 128979686 0.01
2015 2668980 142545956 0.02

return on assets ratio
0.02
0.015
0.01 return on assets ratio
0.005
0
2013 2014 2015
INTERPRETATION
In the year 2013 return on assets ratio is increased 0.02 and in the year 2014
ratio is decreased 0.01 of this year and in 2014 of ratio is increased by 0.02 of 2013
year level ratio of 2015 ratio.

FIXED ASSETS TURNOVER RATIO
A financial ratio of net sales to fixed assets. The fixed-asset turnover ratio
measures a company's ability to generate net sales from fixed-asset investments -
specifically property, plant and equipment (PP&E) - net of depreciation. A higher
fixed-asset turnover ratio shows that the company has been more effective in using the
investment in fixed assets to generate revenues.
Year Sales Fixed assets Ratio
2013 327374835 79294531 4.1
2014 379690317 128979686 2.9
2015 478398098 142545956 3.3

FIXED ASSETS TURNOVER RATIO
4.5
4
3.5
3
2.5 FIXED ASSETS TURNOVER
RATIO
2
1.5
1
0.5
0
2013 2014 2015
INTERPRETATION
The table that the totalassets was 4.1 in the year 2013 and it is decreased 2.9
in the year 2014. Due to recession occurred during the year 2015 it has increased 3.3
however it is recovered in the very next year and very high signify that the firm has an
excessive investment in total assets.

NET PROFIT RATIO
The two basic components of the net profit ratio are the net profit and sales.
The net profits are obtained after deducting income-tax and, generally, non-operating
expenses and incomes are excluded from the net profits for calculating this ratio.
Thus, incomes such as interest on investments outside the business, profit on sales of
fixed assets and losses on sales of fixed assets, etc are excluded.
Year Net profit Sales Ratio
2013 2052954 327374835 0.62
2014 2378522 379690317 0.63
2015 2668980 478398098 0.55

NET PROFIT RATION
0.64
0.62
0.6
0.58
0.63 NET PROFIT RATION
0.62
0.56
0.54
0.55
0.52
0.5
2013 2014 2015
INTERPRETATION
This ratio is the overall of the firm’s ability to turn each rupee of sales into
net profit. The ratio of the company for three years are 0.62 , 0.63, 0.55 respectively.
By analyzing the above ratios it clearly shoes that the company s profitability is not so
satisfactory. But among the three years ratios it is found that in the year 2014 it was
good ratio.

RETURN ON INVESTMENT
Return on investment (ROI) is the concept of an investment of some resource yielding a

benefit to the investor. A high ROI means the investment gains compare favorably to
investment cost. As a performance measure, ROI is used to evaluate the efficiency of
an investment or to compare the efficiency of a number of different investments.In
purely economic terms, it is one way of considering profits in relation to capital
invested
Year Net profit Total assets Ratio
2013 2052954 128814713 1.59
2014 2378522 191756599 1.24
2015 2668980 210153690 1.27

RETURN ON INVESTMENT
1.6
1.4
1.2
1
1.59 RETURN ON INVESTMENT
0.8
1.24 1.27
0.6
0.4
0.2
0
2013 2014 2015
INTERPRETATION
In the year 2013 return on investment ratio increase in 1.59.In the year 2014
ratio is decreased on 1.24 of this year and in year 2015 ratio is increased 1.27 of this
year.

PROPEITORY or EQUITY RATIO
The equityratio is a financialratio indicating the relative proportion

of equity used to finance a company's assets. The two components are often taken from
the firm's balance sheet or statement of financial position (so-called book value), but
the ratio may also be calculated using market values for both, if the company's equities
are publicly traded.
Year S.holder fund Total assets Ratio
2013 41859453 128814713 32.5
2014 51188608 191756599 26.5
2015 57867588 210153690 27.5

PROPEITORY RATIO
35
30
25
20
PROPEITORY RATIO
15
10
0
2013 2014 2015
INTERPRETATION
The table propeitory equity is 32.5 in the tear 2013. It has decreased 26.5 in
the year 2014. During the year 2015 it has increased 27.5 and therefore it indicates the
good return to the proprietor

DEBT EQUITY RATIO
The debt-to-equity ratio (D/E) is a financial ratio indicating the relative

proportion of shareholders' equity and debt used to finance a company's
assets.[1] Closely related to leveraging, the ratio is also known
as Risk, Gearing or Leverage. The two components are often taken from the
firm's balance sheet or statement of financial position (so-called book value), but the
ratio may also be calculated using market values for both, if the company's debt and
equity are publicly traded, or using a combination of book value for debt and market
value for equity financially
Year l.t.Debt S.holder fund Ratio
2013 41376903 41859453 0.98
2014 85199729 51188608 1.66
2015 85462091 57867588 1.47

DEBT EQUITY RATIO
1.8
1.6
1.4
1.2
1 DEBT EQUITY RATIO
1.66
0.8 1.47
0.6 0.98
0.4
0.2
0
2013 2014 2015
INTERPRETATION
The table debt equity ratio is 0.98 in the year 2013. The risk level has
increased 1.66 in the year 2014. In 2015 the debt equity ratio observed was 1.47 which
shows the company has increased much on the debt

FINDING AND SUGGESTION

FINDINGS
 The company is well equipped
 The current ratios of the company are as follows, for the year 2013 is 1.09 for
the year 2014 is 1.19 and for the year 2015 is 1.01Current ratios of the company
are decreasing compared to 1.19
 Fixed assets turnover ratio is decreased compare to previews 2013 year.
 The net profit ratio of the company for three years are in 2013 it was 0.62, in the
year 2014 it was 0.63,and the year 2015 it was 0.55 respectively. But among the
three years ratio, it is found that in the year 2012 it was good.
 The debt equity ratios are in 2013 it was 0.98, in 2014 it was1.66, and in the
year 2015 it was 1.47 respectively. But good ratio is 1.66 of 2013 but now going
on decreasing way.
 The company is well equipped.
SUGGESTION
 The company should maintain its current ratio
 Company should maintain proper ratio analysis as per requirements of the

company
 Company has to maintain proper ratio analysis or should not cross to negative
values.

 The company should adopt new techniques for production.

 A company is going on well and maintains the well way.
SWOT ANALYSIS OF HANGYO

ICECREAM

SWOT ANALYSIS
STRENGTH:-
 It has a good financial position with growth n profits in south.
 Procurement of milk is so no problems for which constitutes the main ingredient

in ice creams.
 Has a good brand image in south Indian market.
 A Hangyo ice cream has very good taste and high quality and flavor when
compared to other companies.
WEAKNESS:-
 They need to create awareness about their brand neither in nor than part in the
Karnataka.
 Improper roads and inadequate transportation facility make pure procurement

problematic.
 Lack in advertisement, publicity at national level.

OPPORTUNITIES:-
 It can target more number of hotels and cinema houses and malls where people
gather in masses.
 A good opportunity to expand hangyoparlor in twins states of Karnataka, Goa,

Maharashtra and Tamilnadu.
THREATS:-
 Threat from unorganized sector such as famila, fancy, kulfi etc.
 Threat from new entrant in industry due to the huge opportunity in the market.

CONCLUSION

CONCLUSION
 HANGYO ICE CREAMS PVT PLD is one of the good company. It

manufactures the different ice creams products and milk products. The products
manufactured are good quality and standards. The company is handled the good
management.
 All the department of company perform well and the production functions
efficient by following modern business practice.
 I am grateful to the management of HANGYO ICE CREAMS PVT LTD

KIRWATTI for their esteemed co-operation and for furnishing me valuable data
information and their guidance. I have learnt all practical aspects of working
capital with the co-operation of company accountant. My completion of project
report and its success without any doubt or second opinion are due to valuable
guidance, co-operation and instruction.

BIBLOGRAPHY BOOKS
 Financial Management - M.Y.Khan and jain
 Financial Management – I.M.Pandey
 Company Hand Book
 Company Document

ANNEXURE




BALANCE SHEET AS ON 2013, 2014 & 2015
PARTICULARS 31-03-2013 31-03-2014 31-03-2015

LIABILITIES
1.share holders fund 41859453 51188608 57867588
2.non current asset
Long term borrowings 31076855 75607065 72773897
Other long term liabilities 1722574 1987574 1872617
Deferred tax liability 8577474 7605089 10815577
3. current assets
Short term borrowings 30111487 27629375 27898703
Trade payable 11583708 18144325 33704465
Other current liabilities 2027436 2796621 3631504
Short term provisions 1855726 3797941 1389339
4. share application money -
pending allotment 3000000 200000
TOTAL 128814713 188756599 209953690
ASSETS
1.non current assets
A. Fixed assets
Tangible assets 71508531 69562681 134755056
Capital work in progress - 51601005 -
Noncurrent investment 7786000 7786000 7790900
2.current assets
Inventories 28662782 29786189 36751898
Trade receivables 5114706 4763137 9918612
Cash and cash equivalents 2606487 6095476 4979145
Short term loans and advances 13236206 22132111 15958079
TOTAL 128814713 191756599 210153690

PARTICULARS 2013 2014 2015
PROFIT & LOSS STATEMENT FOR THE YEAR ENDED 2013-2014 AND 2015

Revenue from operations(Net) 377273762 326482951 472553567
Other income 1160179 891885 3294231
- 2550300
TOTAL REVENUE 378433941 327374835 478398098
Expenses
Cost of materials consumed 269895317 234920956 318299840

Processing Expenses 15966846 14499531 25533719
Inventory of goods 1256376 165735 29578031
Transportation expenses 24333769 22793904 30468743
Employee benefit expenses 18770512 14547084 39779020
Administrative cost 29280599 21547647 13405053
Depreciation 8000008 6465367 14064885
Depreciation 9778554 9602545
TOTAL EXPENSES 374769230 324211298 471129292
PROFIT BEFORE TAX 366471 3163537 7268807
Current tax 2258574 1855726 1389339
Deferred tax 972385 745143 3210488
PROFIT OFTER TAX 2378522 2052954 2668980

Praveen Kumar MCP

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HANGYO ICECREAM PVT.

KARNATAK UNIVERSITY, DHARWAD

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH

Major Concurrent Project (MCP)

“A STUDY ON FINANCIAL PERFORMANCE BASED ON

In partial fulfillment of the requirement for the award of degree in

INTERNAL GUIDE: EXTERNAL GUIDE:

Prof. AMARUTHA Mr.V.K.PATIL(HR)

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 1

 Companies Vision, Mission and Objectives

 Brief about the organization structure

Analysis, Findings and suggestions 48-70

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 2

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 3

Consumption of branded ice creams manufactured by organized sector is

The following project gives us a clear understanding of the company’s detailed

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 4

THESUMMER INPLANT PROJECT‘ASTUDY OF RATIO ANALYSIS AT

This research is on the basis of a study of RATIO ANALYSIS IN HANGYO

NEED OF THE STUDY

 To know how the company to communicateswith all people is informed about

 Andevaluating the performance of the company adapting ratios.

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 5

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 6

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 7

Maiden Unit : The company’s maiden full-fledged manufacturing plants are

The new imported automatic plant has a production capacity of 16,000

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 8

Hangyo, which entered in the market as a regional player confining to the

HANGYO AND SOCIETY:

Hangyo is a committed corporate citizen and helps directly and indirectly

Hangyo Ice Creams conducts annual interschool cricket tournament in Mangalore,

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 9

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 10

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 11

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 12

COMPANY ORGANISATION PROFILE

Name of company : HANGYO ICE CREAMS PVT LTD,

Name of proprietors : Mr. Dinesh Pai

Mr. PradeepPai (M.D)

Mr. JagdishPai (E.Director)

Location : NH 63 Hosalli VillageKirwatti

Products : Ice creams

No. of Employees : 105

Turnover : 100 Cr (Whole Group)

Future Plans : Planning to run two shifts in 2014

New entrance in puneTamilnadu 2015

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 13

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 14

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 15

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 16

THE NEED OF THE SECOND PLANT:

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 17

The compatible packing capacity to the manufacturing capacity is also

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 18

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 19

Hangyo, which entered in the market as a Regional player confining to the

HANGYO AND SOCIETY

Hangyo Ice Creams on yearly basis conduct interschool Cricket Tournament in

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 20

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH HUBLI Page 21

 SrikrishnaDugdhaPrakalpa Ltd., the Group Company got"Best Small Scale