Beruflich Dokumente
Kultur Dokumente
Flow of Presentation
Introduction of Industry Company Information Research Methodology Data Analysis and Interpretation Conclusion Recommendation Bibliography
Introduction of Industry
Dairy Industry is crucial importance to India. A lots development in the dairy business by co-operative ways . In India, the business of milk has become historical.
1971 : Established and registered of the Gandhinagar District Co-operative Milk Producers Union Ltd. Objective: Excellent quality, timely supplies, customer satisfaction To pay maximums milk producers Financial Planning Improving plant performs
1992 : first began movement of arranging village level meeting 1996 : Plant on capacity was expanded up to 60,000 LPD 2002-03 : Plant on capacity was more expanded 200,000 LPD
PUBLICATION : This union publication Madhur Patrika quarterly for his member. BRAND IMAGE : Product of M.D. famous in capital of Gujarat as a Testes of Capitals with the brand MADHUR. Steering : Name of managing Director: Mr.Rohit. Mehta Name of chairman: Dr. Shankarsinh R. Rana
Finance Department
The heart of any institute is the accounts of business lending is happened it the function of the account section is to prepare account at the end of the year, to prepare account of co-operative institution to present account of co-operative institute against the member and to show transparent business
Research Methodology
Primary objective: TO Know financial the financial position of madhur dairy through financial tools. Secondary Objectives : To Evaluation of Liquidity position and Profitability of Madhur Dairy. To analyze the relationship between working capital and profitability. To analyze the level of current assets with relation to current liabilities. To identify the financial strength & weakness of the dairy
Underline the need for investing in current assets and elaborate the concepts of operating cycle. Highlight the necessity of managing current assets and current liabilities.
To assess the significance of working capital by selecting few important parameters such as, working capital ratio, acid test ratio, current assets to total assets, total assets to sales ratio, age of inventory, debtors etc. To make item wise analysis of the elements or component of working capital to identify the item responsible for changes in working capital. To study liquidity position of the company by taking four measures at time namely, inventory to current assets, debtors, to current assets cash and bank to current assets and loan & advances and other assets to current assets.
The study is limited for the period . The data used in this study have been taken from published annual reports and auditors report only. As per the requirement and necessity some data are grouped and sub grouped. For making my study clear cut, I have used Ratio techniques of the financial management. There may be limitation to this study because the study duration (SIP) is very short and its not possible to observe every aspect of working capital management practices.
Analysis of liquidity ratio. Analysis of liquidity position. Analysis of operating cycle. Analysis of components of gross working capital.
Particular
Current assets Current liabilities
2009-10
17,69,56,593
2010-11 33,93,88,557
31,20,33,490
2011-2012 21,12,60,469
24,81,43,851
12,78,16,108
2,73,55,067
(36,88,33,82)
Current Assets
Current Liabilities Current Ratio
17,69,56,593
12,76,16,108 1.38:1
33,93,88,557
31,20,33,490 1.09:1
21,12,60,469
24,81,43,851 0.85
Current Ratio
1.6 1.4 1.2 Ratio 1 1.38 1.09 0.85
2. Liquid Ratio:
Liquid Ratio
1.4 1.2 1 0.8 0.6 0.4 0.2 0 1.17 0.93 0.78
Ratio
2009-10
210-11 Year
2011-12
3.Abslute Ratio
Years 2009-10 C.A. Inventory- 10,90,94,962 Debtors Current Liabilities 12,78,16,108 Absolute Test Ratio 0.85:1
0.6
0.4 0.2 0 2009-10 2010-11 Year 2011-12
4.Inventory to sales
Inventory to sales
0.035 0.03 0.025 0.02 0.015 0.01 0.005 0 0.03 0.02
0.03
Inventory to sales
2009-10
2010-11
2011-12
5.Debtor to sales
Years Debtors
sales
1279339009
1541895451 0.01
1,70,69,44,059 0.03
0.01
2009-10
2010-11
2011-12
TA 0.84
CA to TA Ratio
1 0.8 0.6 0.4 0.2 0 2009-10 2010-11 2011-12 0.84 0.86 0.51 CA to TA Ratio
CA to sales ratio
0.25 0.2 0.15 0.1 0.05 0 2009-10 2010-11 2011-12 0.14 0.12 CA to sales ratio 0.22
Cash Management
Introduction Evaluation 1. cash to current assets 2. cash turnover ratio 3. average cash of sales
Cash ratio
to
CA 0.33
4.80
3.90
Cash to CA ratio
6 5 4.8
4
3 2 Cash to CA ratio 0.33 2009-10 2010-11 0.22 2011-12
1
0
3
2.5 2 1.5 1 0.5 0 2009-10 2010-11 2.18 1.91
2.99
2011-12
Age of inventory
200 150 100 50 0 2009-10 2010-11 2011-12 165 189
120
Age of inventory
Conclusion
Current ratio, liquidity ratio etc. are declining as compare to previous years. Operating cycle of the company is less. Cash turnover ratio is declining. Raw material inventory turnover is also declining.
Recommendation
Company should increase the current ratio & liquid ratio by increasing the investment in the current assets. Company should try to make its operating cycle small. Company should try to increase the cash turn over Company should try to increase the turnover of the raw material inventory
Bibliography
Secondary information: Annual reports of the madhur dairy Books: Prasanna Chandra, 7th edition, Financial Management, Tata McGraw Hill, New Delhi. I. M. Pandey , Financial Management 8th Edition, Vikash publishing house Pvt Ltd, New Delhi Websites: www.madhurdiry.com www.working.com