Ppt on Krishna Milks

7/30/2019 Ppt on Krishna Milks

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INDUSTRY PROFILE India is said to be the worlds highest milk producer and all set to become the

worlds largest food factory.

Dairy is a place where handling of milk and milk products is done andtechnology refers to the application of scientific knowledge for practicalpurposes.

Presently there are around 70,000 village dairy cooperatives across thecountry.

Milk is India's number one farm commodity in terms of its contribution to thenational economy.

This production is expected to increase to 240 MT by 2020.

Milk production gives employment to more than 72mn dairy farmers.


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COMPANY PROFILE

Company name SriKrishna Milks Pvt.Ltd..

Plant address

Srikrishnagiri, NH-63

Kirwatti, Yellapur tq, Uttar Kannada dist

Karnataka

Registered office

# 38,2

2ndfloor

Eureka junction

Year of establishment 1989

Top management

Mr. Hanumanth Pai (Managing director)

Mr.Dinesh Pai (Joint Managing Director)

Mr.Ganesh Kamat (Executive Director)


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Company name SriKrishna Milks Pvt.Ltd..

Departments production ,ProductMaintenance,Stores ,

Packing ,HR Accounts

Total of employees 90

Machinery details Ammonia compressors, milk pasteurizer, boilers,

cream


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PRODUCT PROFILEMilk products:

Natural rich 7 AM Toned milk

Madhur standard madhur toned cold coffee


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PRODUCT PROFILETradable products:

Soan Papadi Mysore Pak Peda

cup curd pot curd khoa


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RESEARCH DESIGN

Importance of the study

With the help of ratio analysis conclusion can be drawn regarding the liquidity position of the firm.

The liquidity position of the firm is said to be satisfactory if it is able to meet current obligations

when they become due.

Ratio analysis is equally useful in assessing the long term financial viability of a firm.

Ratio analysis throws light on the degree of efficiency in the management and utilization of its

assets

Ratio analysis not only shows the financial position of the company but also serves as a stepping

stone to remedial measures.


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Objectives of the Study

To study organization in brief.

To measure the profitability of the company

To study departments of the organization.

To ascertain financial performance of the company using ratio analysis.

One way of determining the right mix of capital is to measure the impacts of

different financing plans on Earnings per Share (EPS).

The objective is to find the level of EBIT (Earnings before Interest Taxes) where EPS

does not change; i.e. the EBIT Breakeven. At the EBIT Breakeven, EPS will be the

same under each financing plan we have under consideration.


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DATA COLLECTION METHODSa) Primary data:

Primary data is collected during the training through discussions withdepartmental heads, Accountants, Assistants and officers

b) Secondary data:

Secondary data is collected from published annual reports of 5 years of

the company. The process of data collection is further supplemented by

going through companys website.

LIMITATIONS OF THE STUDY

The most important limitation of the study is that the study

depends on the published data and documents such as balancesheet and income statement. The time provided for the study is

limited.


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ANALYSIS AND INTERPRETATION

Interpretation:

From the above, it is justifiable that as the operating profit is continuously

fluctuating Over the years

6,734,790 6,882,782 6,405,2255,667,464

6,093,715

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

2007-08 2008-09 2009-10 2010-11 2011-12

EBIT


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NET PROFIT MARGIN

Interpretation:

From the analysis, it is evident that net profit margin is continuously increasing year by year as

compared to 2007-08 to 2011-12, from 3% to 22%

3

11

1719

22

0

5

10

15

20

25

2007-08 2008-09 2009-10 2010-11 2011-12

Net Profit Margin


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RETURN ON TOTAL ASSETS

Interpretation:

From the graph it shows that return on total assets has increased from 2007-08 to2011-12 which shows there is good return on investment to the company.

0.42

1.84

2.85

3.494.08

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

2007-08 2008-09 2009-10 2010-11 2011-12

Return on Total Assets


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OPERATING PROFIT

Interpretation:

From the above analysis it is evident that percentage of operating profit is

abnormally very less i.e. less than 2%

1.96 1.85 1.751.48 1.49

0

0.5

1

1.5

2

2.5

2007-08 2008-09 2009-10 2010-11 2011-12

Operating Profit


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RETURN ON CAPITAL EMPLOYED RATIO

Interpretation:

Return on capital employed of the firm keep on decreases as compared to 2007-08

but increasing as compared to 2010-11.

11.61

11.4 11.34

10.48

11.35

9.8

10

10.2

10.4

10.6

10.8

11

11.2

11.4

11.6

11.8

2007-08 2008-09 2009-10 2010-11 2011-12

Return on Total Capital Employed


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RETURN ON INVESTMENT (ROI)

Interpretation:

From the above analysis it is clear evident that ROI of the company is continuously

increased year by year

0.18

0.76

1.26

1.64

2

0

0.5

1

1.5

2

2.5

2007-08 2008-09 2009-10 2010-11 2011-12

Return on Investment


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EARNINGS PER SHARE

Interpretation:

From the above analysis it is clear evident that EPS of the company is continuously

increased i.e. Rs0.19 per equity share to Rs 1.8 per equity share in 5 year

0.19

0.82

1.24

1.52

1.82

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

2007-08 2008-09 2009-10 2010-11 2011-12

EPS


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CASH POSITION RATIO

Interpretation:

From the above analysis, it is very clear that availability of cash to company is very

strong enough. As against Rs1 liability ready cash availability is Rs8 in the

organisation.

5

9 98 8

0

1

2

3

4

5

6

7

8

9

10

2007-08 2008-09 2009-10 2010-11 2011-12

Cash Position


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DEBT - EQUITY RATIO

Interpretation:

From the above graph, it indicate that debt equity keep on decreasing expecting

2008-09 i.e. 9.76%

9.239.76

8.858.24 8.08

0

2

4

6

8

10

12

2007-08 2008-09 2009-10 2010-11 2011-12

Debt Equity


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RESEARCH FINDINGS

The net profit margin is increasing continuously so company is more efficient in its financial

performance.

Return on total assets is quite impressive and acceptable.

As compared to acceptable industrial norm percentage of operating profit to net sale is very low

i.e. less than 2% in all year.

Return on capital employed is not healthy and also company not using the investment effectively.

Return on equity increasing year by year

EPS of the concern is quite healthy and acceptable in recent year i.e. Rs 1.80 per equity share(facevalue Rs10)

The company has not utilized debt properly.

Proprietary ratio of the firm is quite healthy i.e. average 22%

Liquidity position of the company is very strong as cash position against Rs 1 CL is Rs8, howeverheavy cash balance is more risk and losing of opportunity cost.


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SUGGESTION

To improve operating profit margin, company should take immediate serious step to controlover operating expenses.

Proper cost analysis should be made and cost must be classified into controllable anduncontrollable cost reduction.

Cost reduction scheme should be implemented very seriously, to improve overall reforms thecompany.

Management must improve proprietary ratio try to writing off factitious assets.

Company has to reduce payables to improve liquid assets.

Cash position of the company is quite and healthy company should Maintain the same incoming years.

Margin of Operating profits to net sales must be improved further, so as to meet otherfinancial charges.

Company is properly using its fixed assets to increase the production and company shouldmaintain the same in coming years.

Company should try to reduce its operating expenses


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CONCLUSION

From the study undertaken in stipulated 60 days it is concluded thatoverall performance of the company with reference to profitability, liquidity

and solvency is very weak and ineffectiveSpecific Conclusion:

Company overall profitability is very negligible because of lack of managementskill.

It is surprise that milk transaction and petrol pumps transaction are

considered hence accruable analysis not possible.

For improving operating profit, company has taken appropriate steps tocontrol the operating expenses.

Cost reduction schemes are not effectively implemented by the company.

Company has taken the proper steps for effective utilisation of the fixedassets.

EBIT position is justifiable in the current year; EPS will be the same under eachfinance plane.


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BIBLIOGRAPHY

BOOKS:

Khan M.Y and Jain P.K, Financial Management, 6th Edition, Tata Mc

Graw Hill Publication, New Delhi, 2010

COMPANY PUBLIC REPORT:

Annual reports i.e. 2007-08 to 2011-2012

URL:

www.hangyosrikrishna.com
http://www.hangyosrikrishna.com/http://www.hangyosrikrishna.com/


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