Pooja College

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A Project Study Report On Training Undertaken at Jaipur Dairy (production) Rajasthan Co-operative Dairy Federation, Jaipur “RATIO ANALYSIS’ Submitted in partial fulfillment for the Award of degree of Master of Business Administration

Submitted By:Pooja Solanki MBA IV SEM 2009-2011

Submitted To:Dr.Sonal Jain (H.O.D)

Deepshikha College of Technical Education

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Preface

Financial analysis of any organization is done through analysis of its financial statement. Financial statement provides valuable information of the past performance and present position of the company and are considered as ‘blue print of the company”. However financial statements in their traditional form, depicting data are of little use to those who are interested in drawing conclusions from these statements. In this study, a sincere attempt has been made to analysis the working of Jaipur Dairy by making use of different financial appraisal techniques like ratio analysis. The period of study was 2 years. The data for the studies were obtained from the published annual reports and balance sheet of the company. An effort has been made to appraise the overall financial performance and efficiency of management on the basis of ratio, but the scope and depth of study remained limited due to the limiting factors of time and resources.

POOJA SOLANKI MBA IV SEM

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ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Mr.R.N.Mittal, Designation – Finance Head, Dept - Finance, for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge them for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support they had provided to me with all stages of this project. I would also like to thank the supporting staff of Jaipur Dairy Finance Department, for their help and cooperation throughout my project.

(Signature of Student) Pooja Solanki

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Declaration

I, Pooja Solanki of M.B.A. IV Sem, Deepshikha College Technical education, Jaipur hereby declare that all the information facts and figures produced in this report is based on my own experience and study during my open research in analyzing the “Ratio Analysis”

I further declare that all the information and facts furnished in this project report are based on my intensive research findings. They are first hand and original in nature.

Pooja Solanki MBA IV Sem.

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Preface Acknowledgement Contents
1. Introduction of RCDF 2. Introduction of Jaipur Dairy 3. Research Methodology

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3.1 Title of the Study 3.2 Duration of the Project 3.3 Objective of Study 3.4 Type of Research 3.5 Method of selecting sample 3.6.Scopeof the Study 3.7 Limitation of Study 4. Facts and Finding 5. Analysis and Interpretation 6 SWOT Analysis 7. Conclusion 8. Recommendation and Suggestions 9. Appendix 10. Bibliography 72 73 74-80 81 58 59-66 67-71

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1. INTRODUCTION OF RCDF
Registered March Plant commissioned APS Coverage 1975 June 1981 April 1984 Jaipur & Dausa

Dairy development was initiated by the state government in the early seventies under the auspices of Rajasthan State Dairy Development Corporation (RSDDC) registered in 1975. Two years later RCDF assumed responsibility for many of the functions of RSDDC. It became the nodal agency for implementation of operation flood in the state. Rajasthan Cooperative Dairy Federation (RCDF) set up in 1977 as the implementing agency for dairy development programmes in Rajasthan is registered as a society under the Rajasthan cooperative societies act 1965. JAIPUR MILK SUPPLY SCHEME (JMSS) was the department of Govt. of Rajasthan the requirement of milk and milk products of the city of Jaipur. In early 1970 the Govt. accepted the co-operative as the model dairy development in the state and the financial assistance was obtained in 1975, from the world bank for the dairy development programmers’ in the state. The Rajasthan State dairy Development Co-operation was set up as the implementing agency for this programme. This function was subsequently handed over to the Rajasthan co-operative Dairy Federation (RCDF) when the state was covered under operation flood programmed. On April 1983, the JMSS was merged with RCDF. Thus the federation inherited the Jaipur Dairy along with the staff as well as the mandate to meet the demand of the milk product in the Jaipur city. It may be noted that Jaipur is the largest market for milk and milk product in Rajasthan and hence the Jaipur Dairy has predominantly milk marketing function. Subsequently, the RCDF handed over the Jaipur Dairy to the Jaipur milk union April on 1992.

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Organization Structure:
The Federation is a State level apex co-operative organization owned by its member unions each of which, in turn, is owned the dairy co-operative societies in its area of operation which are themselves owned by farmer members. The Federation has a board of directors, which has overall responsibility for the planning policies, financial resource mobilization and management, member and public relations as well as liaison with agencies of the state and central government, financing institutions etc. The Federation has a chief executive designated as Managing Director.

Objectives of RCDF:
• To carry out activities for promoting production, procurement, processing and marketing of milk & milk products for the economic development of animal husbandry/ farming community. • Development & expansion of such other allied activities as may be conducive for the promotion of the dairy industry, improvement & protection of milk animals and economic betterment of those engaged in milk production. • • • • • • • Organize and provide technical inputs. Erection of Dairy, chilling plant, cattle feed plants for unions. Study of problems of mutual interest of the Federation and milk unions. Impart training and orientation to dairy co-operative members. Advise, assist and guide milk unions Undertake audit and accounts supervision Encourage fodder production etc.

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Three Tier Structure:

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The dairy co-operative movement operates on three-tier system wherein farmer members own dairy co-operative societies producer's union. The unions (DCS), which own district milk collectively own the RCDF.

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It is a vertically integrated structure that establishes a direct linkage between those who produce the milk and those who consume it.

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Federation - Provides service & support to unions. Marketing within & outside state, Liaison with government and NGO agencies, resources& coordinating & planning projects. mobilization of

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Union - Develops village milk cooperative network, procures milk from DCS, processes & markets. Sale of cattle feed and related inputs, promotion of cross breeding through AI and NS, promotion of fodder development and general support & supervision to DCS.

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DCS - Provides input services (AH, AI) to its members and procurement of milk.

9 Source: Jaipur dairy

The dairy co-operatives depict the following institutional properties: • • Democratically elected board of DCS, milk unions & Federation from among principles • • • • their members. of cooperation. Adoption of such bye laws which ensure democratic process on the

Management & ownership of assets by the cooperatives. Autonomy in pricing, marketing & appointment of personnel. Employment of professional. Total control of the organization is in the hands of its members.

Technical Input:
In addition to provision of regular and remunerative market for milk to the farmers the dairy cooperative development programme also provides input and services for promoting animal health and production enhancement of milch animals. A. Animal Health Programme (AH) • • • • • Veterinary services like first aid, medical treatment and vaccinations are being provided to the members by the milk unions. First aid is provided at the village at the DCS. Regular scheduled services are provided by mobile units and at veterinary camps. Emergency services provide veterinary care at the farmer's doorstep. Progress under AH programmes.

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B. Breed Improvement 1. Artificial Insemination Programme (AI): Artificial Insemination Programme has been undertaken by RCDF. To supply the frozen semen to the AI Centre of Milk Unions as well as to A.H. Department, an ultramodern Frozen Semen Station is established at Bassi which supplies the Semen of high pedigree exotic and native breeds. Progress under AI programme 2. Natural Services (NS): Bulls of improved breeds are provided at dairy cooperative societies where AI activities are not much feasible. Progress under NS programme C. Cattle Feed Balanced cattle feed is being manufactured by four cattle feed plants viz. Ajmer, Bikaner, Jodhpur and Nadbai. The milk village cooperative unions make feed available to the farmers via

societies. The available range of cattle feed are balanced cattle feed, high energy feed, calf starter & Cattle feed supplements like Urea molasses bricks (UMB) and Mineral mixture. D. Fodder Development: Under the recent major input programme the fodder development activities have been taken by RCDF through which the major fodder crops and their seed is grown on Rojhri, Bassi and Pal Farms and seed is supplied to the dairy farmers on no profit-no loss basis. The major fodder crops are lucerne, oat, bajra, barseem Sorghum Sudan Grass etc. The federation also procures quality seeds from other agencies & provides them to the farmers.

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Training & Extension
Eight milk unions via Ajmer, Bhilwara, Bikaner, Ganganagar, Jaipur, Jodhpur, Kota and Udaipur are operating centers where training is provided for several area related to DCS operations viz DCS secretary, Management Committee member, AI workers, milk tester, first aid worker, chairman orientation, dairy animal management and various refresher courses etc. Organization is the structure framework of duties and responsibilities required of personal in performing various within the company. It is essentially a blueprint for action resulting in a mechanism for carrying out function to achieve the goals setup by the company. An organization structure shows the authority and responsibility relationship between various position in the organization and also clarifies who reports to whom. It is a set of planned relationship between groups of related functions and between physical factors. And personnel required for the achievement of organizational goals. The organizational structure is generally shown on organization chart. It represent authority relationship between various position in the organization by showing who reports to who me. It is a set of planned relationships between groups of related junctions and between physical factors and personnel required for the achievement of organizational goals. An organizational chart is a diagrammatical form which shows important aspects of an organization including the major function and their respective relationship.

12 It is graphic portrayal of position in the enterprise and of the formal line of accountability among them. It provides a bird eye-view of the relationship between different departments or division of an enterprise as well as the relationship between the executives and the subordinates at various levels. An organization cannot work cutting a detents structure. The first step in designing the structure of an organization is to insetting and group the activities involved, whichs expressed as departmentation, because of the intimate connection between the felonry over time and cost accounts it is necessary into which the factories are usually divided the manner in which they are linked and way in which they are managed. In Paschimi Rajasthan Dugh Utpadak Sahakari Sangh Ltd. The overall management of these cones is under the control of the managing director Mr.R.K. Sangwa. The organization structure chart of this concern is given as under.

Critical Criteria of Developing a Pa System In order for performance appraisal information to be useful, the PA system must be able to consistently produce reliable and valid results. Measurement items in the performance appraisal system must be designed in such a way that the results of rating are consistent regardless of the raters and the timing of the assessment. Another critical criterion in developing a PA system is the validity of the measurements. It is important to make sure that the appraisal items are really measuring the intended performance or

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target behavior. If they are not, the PA system encourages the wrong kind of work behaviors and produces unintended, frequently negative, organizational outcomes. For instance, if the number of traffic violation tickets issued is an item in performance appraisal of police officers, it encourages them to sit on a corner of a street and pull over as many violators as possible during heavy traffic hours. The true purpose of a police force, which is public safety, may become secondary to issuing a large number of tickets for many officers.

What to Evaluate The first important step in developing a PA system is to determine which aspects of performance to evaluate. The most frequently used appraisal criteria are traits, behaviors, and task outcomes. Traits. Many employees are assessed according to their traits, such as personality, aptitudes, attitudes, skills, and abilities. Traits are relatively easy to assess once a rater gets to know ratees. But traits are not always directly related to job per formance. Trait-based assessment lacks validity and thus frequently raises legal questions. Behaviors. For many jobs, performance is so broadly defined or so conceptual in nature— such as ensuring public safety in the

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police de partment—that it is hard to come up with reliable performance measures. In such cases, desirable behaviors can be identified and assessed in the belief that such behaviors lead to successful performance. Such behavior-focused assessment encourages employees to adopt desirable behavioral patterns in the workplace. Task outcomes. When information about task outcomes is readily available, it is the most appropriate factor to use in evaluating performance. When an organization has a clear and measurable goal as in the case of a sales force, this approach is recommended.

However, it has its own pitfalls. There is a problem if employee behaviors are not directly related to the task out-come. Too narrow a focus on measuring out-come only sometimes results in unintended negative consequences. When sales staff narrowly focus on target sales figures to increase their performance measure, for example, they are encouraged to help a few large-volume customers and to ignore many smaller buyers. This may result in poor customer service on the floor. Who Evaluates? The most common raters of performance are employees' immediate supervisors, who are usually in the best position to

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know and observe the employees' job performance. They are also responsible for employees' work. Their evaluation is a powerful tool in motivating employees to achieve successful and timely completion of tasks. However, as a result of working together over a long time with the same employees, the immediate supervisor may build up a fixed impression about each employee and use it every time he or she has to evaluate performance.

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Some companies find that subordinates are in an excellent position to observe and evaluate their managers' performance, especially when it comes to measuring effective management of their department. While there is merit in asking subordinates to evaluate how they are managed, such evaluation may turn into a popularity contest. Accurate and objective assessment may not be obtained if employees are fearful of possible retaliation from their supervisors. Anonymity of the evaluators is key to the successful use of subordinates for objective evaluation. Other raters who are frequently used in some companies include peers, customers, and the employees themselves. Peer evaluation is particularly useful when teamwork and collegiality are important to successful task performance. Peer pressure is sometimes a powerful motivator in encouraging teamwork among members. Customer satisfaction is vital to a company's success and can be used in performance appraisal. Many companies systematically collect performance information from customers, typically through anonymous surveys and interviews. Self-assessment is also a useful means, especially when the performance appraisal is intended to identify the training and development needs of potential employees.

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Each of these raters contributes to assessing certain aspects of performance. Since job performance is multidimensional in nature, it is important to use different raters or a combination of multiple raters depending on the goal of a performance appraisal system. This multirater evaluation, or so-called 360-degree feedback system, is becoming increasingly popular among many American corporations, including General Electric, AT&T, Warner Lambert, and Mobil Oil. Performance Appraisal Methods To ensure the reliability and validity of a PA system, a company must design the evaluation process carefully and develop appropriate measuring scales. Among the many assessment methods developed by human resource management experts, commonly used ones include the Graphic Rating Scale, Behaviorally Anchored Rating Scale, Narrative Technique, Critical-Incident Method, Multiperson Comparison Method, Forced Choice Method, and Forced Distribution Method. The Graphic Rating Scale is the simplest and most popular method for performance appraisal. As shown on Figure 1, the Graphic Rating Scale offers a list of areas related to job performance. A manager rates each employee on the listed areas according to a numerical score.

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Although this method is relatively simple and quick to complete, some experts question its validity and reliability. Without elaborate description, appraisal items and scores are subject to various interpretations of raters. In order to overcome pitfalls of the Graphic Rating Scale, numerous other methods have been developed. The Behaviorally Anchored Rating Scale (BARS), illustrated in Figure 2, offers rating scales for actual behaviors that exemplify various levels of performance. Because raters check off specific behavior patterns of a ratee, PA results of BARS are more reliable and valid than those of the Graphic Rating Scale. Human resource managers must carefully analyze each job and develop behavior patterns pertinent to various levels of performance for the job before they use the BARS. The Narrative Technique is a written essay about an employee's job performance prepared by a rater. The essay typically describes the rate's job-related behaviors and performance. Without standard performance description, it is a cumbersome task for raters to write an essay for several employees. For example, a rater can be asked to describe the activities, achievements, and level of performance of the employee in a completely open-ended format (unstructured narration).

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Alternatively, the rater can be pro vided with some structure to use in the evaluation; for example, "Describe briefly the activities, achievements, and level of performance of the staff member in the following areas: (1) work habits, (2) planning and organizing the tasks, (3) management skills, communications, and

development of others." The performance review form at a college asks an evaluator to describe the activities, accomplishments, and creative works of the professors in the areas of (1) teaching and (2)

research/creative activity. A dean of the college writes about the professor's teaching performance: "Dr. Michael Johnson has been nominated by his students for the Outstanding Teacher Award several times during his service. He introduced many teaching innovations into his classes. His teaching record is exemplary." In the area of creative activity, the dean writes: "Dr. Johnson has a strong and productive research record with a defined focus in organizational leadership. His research has been recognized with several awards given by professional organizations. His creative activity is exemplary."

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Similar to the Narrative Technique is the Critical-Incident Method, which involves keeping a running log of effective and ineffective job performance. For example, the PA log of an employee, Mr. Campbell, contains Unsatisfactory Incidents as follows: 1/28/2000: "Refused to try a new work procedure," and 2/15/2000: "Argued with a customer about the origin of error in the paperwork." The log also contains Satisfactory Incidents as follows: 1/20/2000: "Volunteered to help Charlie complete his assignment in time"; 2/19/2000: "Trained new employees in safety regulations." The Multiperson Comparison Method asks raters to compare one person's performance with that of one or more others. It is intended to effectively eliminate the possibility of giving the same rating to all employees. In order to separate performance scores among multiple employees, the Forced Choice or Forced Distribution Methods are adopted. Raters must choose one high performer from the list of employees or distribute certain scores to employees at different ranks. For example, only one top

person will get 40 percent, two second-rank persons 20 percent, and the bottom one person 10 percent. The Paired Comparison Method is a special case of the Multiperson Comparison Method. Everyone in the evaluation pool is compared against everyone else as a pair and recorded "plus" or "minus" when the target ratee

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is better or worse, respectively, than his/her comparison. The final performance ranks are determined by the number of positives. Subjectivity and Objectivity Accuracy is critical to performance appraisal. In order to obtain accurate performance information, raters must provide objective and unbiased ratings of employees. But, because it is almost impossible to develop a perfectly accurate performance checklist, managers' subjective opinions are frequently called for. Many companies use some combination of subjective and objective assessment for actual performance appraisal. Yet there are numerous problems in the actual assessment of employee performance, mainly due to rater bias. Some raters tend to rate all employees at the positive end rather than to spread them throughout the performance scale; this is called "leniency." Alternatively, "central tendency", which places most employees in the middle of the scale, also raises concern about possible appraisal error. Another common error in performance appraisal is the halo effect. This occurs when a manager's general impression of an employee, after observing one aspect of performance, influences his/her judgment on other aspects of the employee's performance.

Researchers have found that personal preferences, prejudices, appearances, first impressions, race, and gender can influence

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many performance appraisals. Sometimes raters' personal opinions or political motives creep into the performance appraisal process. They intentionally inflate or deflate performance ratings of certain employees as a way to punish them or promote them out of the department. Using unreliable and unvalidated performance appraisals may cause a legal problem. A number of court cases have ruled that the performance appraisal systems used by many companies were discriminatory and in violation of Title VII of the Civil Rights Act. In order to avoid legal problems, companies must develop an appraisal system based on careful job analysis and establish its reliability and validity. They must give clear written instructions to raters for completing evaluations and provide them adequate training if necessary. The company must allow employees to review the results of the appraisals. Human resources departments must play a key role in the development and implementation of an effective performance appraisal system.

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To enhance active participation of the producer members in the DCS, to create awareness about improved animal husbandry practices viz feeding, crossbreeding, animal management and stimulate fodder production, extension activities are carried out at DCS and at milk unions. Under farmer's induction & orientation programme, visits to the dairy plants are arranged to demonstrate the process & disposal of the milk collected from the producers. Producers also taken to visit the model Indian dairy cooperative-Anand Milk Cooperative Union (AMUL) in Gujarat and they in turn educate other milch animal owners in their area about the practices and benefits of cooperatives. Audio-visual aids, field demonstrations, extension camps are used to explain feeding, breeding , fodder development and clean milk production practices

Marketing Activities: The marketing activities of the Federation include providing support to the Milk Unions in milk and milk products within and outside the State. RCDF is presently marketing milk & milk products under Saras brand. Fresh milk of different compositions and long shelf life tetra pack milk is being marketed in rural and urban areas. The Federation is a major supplier of tetra pack milk (UHT) to the armed forces. RCDF is also marketing various fresh milk products in Saras brand, which are, Chhach, Lassi, Shrikhand, Flavoured Milk, Mawa, Paneer and Dahi. Long life products such as Cow ghee, Ghee, Table Butter, Dairy Whitener, Skim Milk Powder and Tetra Pack Milk (Cow Milk, Taza Milk and Fit and Fine) are also being marketed.

24 Saras Milk parlors serving a complete range of milk products are operational at 450 points in Rajasthan.Presently Saras brand is being marketed through a network of 17589 outlets. Rajasthan State dairy Development Co-operation was set up as the implementing agency for this programme. This function was subsequently handed over to the Rajasthan co-operative Dairy Federation (RCDF) when the state was covered under operation flood programmed. On April 1983, the JMSS was merged with RCDF. Thus the federation inherited the Jaipur Dairy along with the staff as well as the mandate to meet the demand of the milk product in the Jaipur city. It may be noted that Jaipur is the largest market for milk and milk product in Rajasthan and hence the Jaipur Dairy

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2. Introduction to Jaipur Dairy

Towards fulfillment of the national object of making India self sufficient in milk production a small steps was taken in March 1975 to work in the Jaipur district, initially this union did not have the processing facilities. It started with a model beginning of procuring 250 liter of milk per day. In June 1981, Jaipur dairy plant was commissioned as a unit of Rajasthan cooperative dairy federation lt. Jaipur for processing and manufacturing milk and milk products. The initial handling capacity of dairy plant was 1.5 lakh liters per day with a powder plant of 10 mt capacity. Processing facilities of the dairy presently include multifarious activities like chilling, pasteurization, standardization, sterilization, production of ghee, table butter, skimmed milk powder chhach, lassi, paneer, shrikhand., aseptic milk and powder. The dairy procures milk through its network of over 650 village level dairy cooperative societies spread in Jaipur & Dausa district. Dairy arranges transportation of milk from doorsteps of milk producers to the receiving point at a dairy plant and its chilling centers. Payment of milk is disbursed to the milk producers of ten days basis. Procreant and input activities include farmer’s organization, input services like animal’s health coverage and supply of balance cattle feed and improved fodder seeds to the members, cooperative development programme, training etc. In 1992, the Jaipur dairy plant was handed over to Zila Dugdh Utpadak Sahakari Sangh (Jaipur milk union) with the multiple increases in marketing of milk and milk product and also in mild procurement. The capacity of the plant was increased to 2.5 lakh liter per day in 1998 – 99. To improve the quality of milk the dairy has commissioned three chilling centers at Kaladera, Dudu & Shahapura apart form enhancing the capacity Dussa milk chilling center.

26 Over the years there has been not been looking back for Jaipur dairy and the significant growth has been achieved during the year 1998-99 , monthly average of the milk sale has been 143000liter per day with peak milk procurement during besides the near by sale milk unions like Sikar ,Tonk, Swaimadhopur and Bharatpur also send processing during peak flush season. Today Jaipur Dairy provides milk of four types namely: • • • • • Toned Double toned Standard and Gold (full cream) and Various product like ghee,paneer table butter, chhach, lassi, shrikhand in the district of Jaipur & Dausa and also contributes to the national grid. Its sale tetra packs milk throughout the country. The plant is managed and operated by well-qualified, competent and experienced managerial cadre and highly motivated work force to provide highest quality of product and best of services to its esteemed customers. To further improve the efficiency and effectiveness of the plant performance, Jaipur Zilla Dugdh Utpadak Sahakari Sangh Ltd. Jaipur has embarked on the implementation of ISO 9002 quality and hazard, analysis and critical control points (HACCP) system in the plant operation to eventually get international certificate. their milk to Jaipur dairy for

Objectives of Jaipur Dairy:
The primary concern of Jaipur dairy is to provide best quality and safe products and services: • • • Meet a well defined needs use and purpose of customer. Satisfy customer’s expectation for good and safe milk and milk products. Comply with applicable national and international standard.

27 • • • • Make available milk and milk product at competitive price. Enduring implementation of ISO 9002 quality management system. Application and adherence of HACC principles for food safety. Motivates employees for professional excellence and participation.

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Quality Policy:
The dairy believes that the delighted customer is the only key for overall development of the organization and their families. This is achieved by: • • • • • Educating milk producers for clean milk production. Manufacturing and supplying milk and milk products and services of consistent quality at comparative price. Adoptive innovative and modern technologies and system. Developing committed work force. Adoption of safety and environment friendly standards with help of application of HACCP principles. RCDF possesses a specialized central quality control laboratory which monitors adherence to quality standards through random sampling of milk, milk products, cattle feed, packing material etc. Each dairy plant has its own laboratory to which RCDF staff provides advice and technical support. Established in the year 1990 the Central Quality Control Laboratory in RCDF is engaged in monitoring the quality standards of milk and milk products, packaging material, cattle feed and effluent treatment so as to ensure their conformance with laid down respective standards of P.F.A., B.I.S., Ag-mark and Pollution Control Board. Ambit of activities cover all aspects right from collection of milk to finished products by programme such as clean milk production, ISO-9002 and HACCP-15000 certification. In addition to this all the major milk plants and cattle feed plants too have their own laboratories to ensure the QAP and TQM at first place. Commitment to production of quality products has resulted in the dairy plants at Ajmer, Alwar, Bhilwara, Bikaner, Ganganagar, Jaipur & Udaipur being registered under ISO-9002 and HACCP-15000 systems.

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Achievements:
• • • • Introduction of ‘IVRS’ System NATIONAL PRODUCTIVITY AWARD(1997) First in Rajasthan to get ISO – 9002 & 1500 HACCP CERTIFICATES Launch of mobile CART Scheme

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COMPANY’S PRODUCTS Information about the Products:

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Fresh Milk

& Long Shelf Life Milk Tetra pack

DTM Toned Standard Full Cream Skimmed Cow Milk Toned Milk (Taaza) & Camel milk Fresh Milk Products & Long Shelf Life Milk Products Chaach Lassi Dahi Paneer Shrikhand Icecream Rasgulla Flavored milk Mawa Ghee Cow Ghee Table Butter SMP WMP Cheese Dairy Whitener White Butter Kheer

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Fresh Milk

Double Toned Milk (DTM)

Composition: Fat % (Min.): 1.5 SNF % (Min.): 9.0 Pack Size: 1/2lt. & 1 Litre Shelf-Life / Best Before: 2 days from the date of packing when stored below 8 o C.

Toned milk (TM)

Composition: Fat % (Min.): 3.0 SNF % (Min.): 8.5 Pack Size: 1/2 & 1 Litre Shelf-Life / Best Before: 2 days from the date of packing when stored below 8 o C.

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Standard Milk:

Composition : Fat % (Min.): 4.5 SNF % (Min.): 8.5 Pack Size: 1/2 & 1 Litre Shelf-Life / Best Before: 2 days from the date of packing when stored below 8 o C. Full Cream Milk

Composition: Fat % (Min.): 6.0 SNF % (Min.): 9.0 Pack Size: 1/2 & 1 Litre Shelf-Life / Best Before: 2 days from the date of packing when stored below 8 o C.

Skimmed Milk Composition:

35 Fat % (Min.): 0.5 SNF % (Min.): 8.7 Pack Size: 1/2 & 1 Litre Shelf-Life / Best Before: 2 days from the date of packing when stored below 8 o C.

Cow Milk

Composition: Fat % (Min.): 3.5 SNF % (Min.): 8.5 Pack Size: 1/2 and 1 Litre Shelf-Life / Best Before: 120 days Needs no refrigeration unless opened.

Toned Milk Taaza

Composition: Fat %: 3.0 SNF %: 8.5

36 Pack Size: 1 Litre Shelf-Life / Best Before: 120 Days Needs no refrigeration unless opened.

Long Shelf Life Milk Products
Chaach

Composition: Fat % (Min.) : 2.0 Salt : 0.75 T.S. % : 6-7% Pack Size: 250 ml, 500 ml, 1 Liter Pouch Shelf-Life / Best Before: 7 days from date of packaging when stored under refrigeration below 8 oC.

Lassi

37 Composition: Fat % (Min.) : 2.0 Acidity% (Max.): 0.5 Added Sugar : 8-10 % T.S.% : 16-17%

Pack Size: 250 ml. Shelf-Life / Best Before: 7days from date of packing when stored under refrigeration below 8 oC. Dahi

Composition: FAT% (Min.): 3.0 SNF% (Min.): 8.5 Pack Size: 200gm. cups. Shelf-Life / Best Before: 7 days from date of packing when stored under refrigeration below 8 oC. Paneer

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Composition: FAT % : 50 on dry matters Moisture% (Max.): 60 Packing Size : 200 gram Shelf-Life / Best Before: 15 days from the date of packing below 8 oC. Shrikhand

Composition: FAT% (Min.): 6.0 Acidity % (Max.): 1 Added sugar % (Max.): 70% on dry matter basis. Pack Size: 100 & 500 Gms cups. Flavors: Elaichi & Kesar Pista. Shelf-Life / Best Before: Best before 15 days from the date of packing when stored below 8 oC Ice Cream

Composition: Fat %: 12.0±0.5%(Min 10.0%) % Protein( Min) 3.5% % TS( Min.) 36.0% Shelf life/Best before: 6 months from the date of packing when stored below -20°C.

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Canned Rasgulla

Moisture% : Wt.Max 55.0% Fat % by Wt. Min. 5.0 Proteins, % Wt. Min. 5.0 Shelf life/Best before: 6 months from the date of packing when stored under cool and dry place.

Flavored Milk

Composition: FAT% (Min.): 1.5 SNF % (Min.): 9.0 Added sugar and permitted flavors. Pack Size: 200 ml. bottle & Tetra Pak. Flavors: Elaichi, Coffee, Straw Berry & Chocolate. Shelf-Life / Best Before: 3 months from the date of packing.

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Mawa

Composition: Fat % : 30 on dry matter basis. Moisture% (Max.): 30-35 Pack Size: 200 gm. Shelf-Life / Best Before: 20 days from the date of packing when stored below 8 oC. Ghee

Composition: Moisture% (Max.): 0.3 FFA % (Max.): 0.3 Meets Agmark Standards.

41 Pack Size: 1/2 & 1 Liter Polypack in duplex board carton. 1 Liter & 15 Kg. in tin. Shelf-Life / Best Before: 9 Months from date of packing for tin, 6 months for poly pack.

Cow Ghee

Composition: Moisture% (Max.) : 0.3 FFA % (Max.) : 0.3 Meets Agmark Standards. Pack Size: 1 Litre Polypack in duplex board carton Shelf-Life / Best Before: 6 Months from date of packing. Table Butter

Composition: Fat % (Min.): 80.0 Moisture % (Max.): 16 Salt: 2.3 + - .02% Curd% (Max.): 1.0 Meets Agmark Standards. Pack Size: 100, 500gm.

42 Shelf-Life / Best Before: 12 Months from date of packaging when stored under refrigeration below -20 C.

Skimmed Milk Powder

Composition: Fat % (Max.): 1.25 Moisture% (Max.): 3.5 Meets ISI Standards. Pack Size: 1kg. Polypack Shelf-Life / Best Before: 12 Months from date of packing.

Whole Milk Powder Composition: Fat % (Min.): 26 Moisture% (Max.): 3 Meets ISI Standards. Pack Size: 10 kg. Shelf-Life / Best Before: 12 Months from date of packing. Cheese

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Composition: Fat % (Min.): 40 on dry matter basis. Moisture% (Max.): 47 added Salts (Max.): 2.5 Pack Size: 400 Gms. in metal cans. Shelf-Life / Best Before: 12 Months from date of packing under refrigeration at 4 oC.

White Butter

Composition: Fat % (Min.): 83 Curd% (Max.): 1.0 Meets Agmark Standards. Pack Size: 500gm. duplex board carton. Shelf-Life / Best Before: 6 Months from date of packaging when stored under refrigeration below -20 C.

44

3. RESEARCH METHODOLOGY 3.1 Title of the Study Ratio Analysis
Accounting ratios are relationship expressed in mathematical terms, between figures which have a cause and effect relationship or which are connected, with each other in some manner or the other. To quote Wixon Keil and Bedford, “a ration is an expression of the quantitative relationship between two numbers.” Ratio analysis of statements is “the process of determining and presenting relationship of items and groups of items in the statements”. According to Kohler,”A ratio is the relation of one integer, decimal, fraction or percentage

3.2 Duration of the Project
The duration of the project training was 15 days undertaken to accomplish the title and objective.

3.3 Objective of Study

Conceptual:
To prepare a report after analysis and interpretation of finding from balance sheet as well profit and loss account through applying various mathematical and financial tool and techniques.

Functional
The present earning capacity or profitability of the Jaipur Dairy . The operational efficiency of Jaipur Dairy. The short term and long term solvency.

45 The financial stability of a business. The possibility of development in the future by making forecasts and preparing budget.

3.4Type of Research
Research is a common work refers to a search of knowledge. One can also define research as a scientific and systematic search for pertinent knowledge or information on specific topic. According to ‘Redman and Mary’ • “Research is a systematized effort to gain new knowledge”.

As far as this project is concern it is a observation type of research work Because according to “C.R. Kothari Observation research includes fact finding activities and requires special efforts from research side. Approach of the research According to “Kothari” there are two approaches in research Methodology. a) Qualitative approach b) Quantitative approach This project work has quantitative approach, which is more reliable and beneficial in this type of project.

46

3.5.Method of Selecting Sample
Actual fact finding data from previous year’s annual report is used as a sample in the project which was allotted to me by project guide. Methodology: 1. Prepare the list of information needed. 2. Collect information. 3. Convert information into data and graph. 4. Analyze and interpretation. Data Collection: The data collection is done with 2 method:1. Primary Data Primary Data may be described as those data that have been observed to their knowledge and recorded by the researchers for the first time to their knowledge. 2. Secondary Data: Apart from the primary data sources the secondary data is also collected from Magazines and Journals. Through the internet we have obtained the information about the relative and some other meaningful information. Apart from it some data also taken from company office. The secondary data was collected through various publications and report of the company itself as annual report & balance sheet.

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3.6 Scope of Study Financial Analysis
Financial accounting involve recording transaction and preparing report and financial statement that can be used by management, owners, creditor, government agencies and others to understand what is happening in the business or non profit organization. “Accounting is the process of identifying, measuring and communicating economic information to permit informed judgment and decision by users of the information.”

Concept of Financial Statement:
Financial statement are the major means employed by firm to present their financial situation to stockholders creditors and the general public a financial statement is a collection of data organized according to logical and consistent accounting procedure. Its purpose is to convey an understanding of some financial aspects of a business firm. The end product of financial accounting is financial statement consisting of the balance sheet, profit, and loss account and statement of changes in financial position. Financial statements are the major means employed by a firm to present their financial situation to stockholders, creditors, and the general public, accounting reports on the result of operation and the current status of a business enterprise by a financial statement. The balance sheet and income statement. Since the balance sheet and income statement are of limited interest the annual report of the company are supplemented by a third statement the change in financial position and by foot notes which explain and amplify the reported numerical data. Financial analysis of any organization is done through analysis of its financial statement. Financial statement provides valuable information of the past performance and present position of the company and are considered as ‘blue print of the company”. However financial statements in their traditional form, depicting data are of little use to those who are interested in drawing conclusions from these statements.

48 In this study, a sincere attempt has been made to analysis the working of Jaipur Dairy by making use of different financial appraisal techniques like ratio analysis. The period of study was 2 years. The data for the studies were obtained from the published annual reports and balance sheet of the company. An effort has been made to appraise the overall financial performance and efficiency of management on the basis of ratio, but the scope and depth of study remained limited due to the limiting factors of time and resources

Objective of Financial Statement: Financial statement serves as horoscopes of a business as they enable readers to measure financial position o a concern. Such statements contain sufficient valuable information about various aspects of business that can be useful for business decisions. As stated by the Accounting Standards Board of India that “ the objective of financial statements is to provide information about the financial position, performance and cash flows of an enterprise that is useful to a wide range of users in making economic decisions.” The various objectives of such statements are summarized below: • • To provide financial data on economic resources and obligations of a concern. To provide sufficient and relevant information to various parties interested in • • financial statements.

To present true and fair view of the business To serve as the basis of future operations.

A. The Balance Sheet: The balance sheet is called a fundamental accounting report. It provides information about the financial standing dor position of a firm a t a given instant. The balance sheet can be visualized as a snapshot of the financial

49 status of a company is a valid for only one day the reference day. The position of the firm on a preceding day is bound to be different. “The balance sheet of a company indicates to management the financial status of a company as on a given moment. Form an analyst point of view a balance sheet is a written representation of the resources and liabilities of an individual partnership firm an association of a corporation”. The contents of balance sheet can be divided in to three divisions. Assets: Assets are valuable resources owned by a business. Which are acquired at a measurable money cost these are economic resources of a firm which provide economic benefits to the company? Liabilities: Liabilities are claim of creditor against the enterprises arising out of past activities that are to be satisfied by the disbursement of utilization of corporate resources. They are the economic obligation of the firm. Owner’s Equity: The owner’s equity is the owner’s current investment in the assets of the company. The entire system of recording business transaction is based on accounting equation. The accounting equation is an accounting formula expressing equivalence of the two expressions of assets and liabilities.

Accounting Equation

ASSETS OR OWNER’S EQUITY OR LIABILITIES

=

LIABILITIES + OWNER’S EQUITY

=

ASSETS – LIABILITIES

=

ASSETS –OWNER’S EQUITY

50

B. The Income Statement:
The balance sheet, as discussed above, is considered a very significant statement form the view point of bankers, and other lenders , because it indicates the firm’s financial position and strength, as measured by its resources and obligation, however,. Creditors and financial analysis have recently started paying more attention to the firm’s earning capacity as a measure of it financial strength. It income statement reveals the earning potential of the firm. An income statement is a financial statement summarizing the result of a company’s income (profit) making activities for a specific time period. It summarizes revenues and expenses in a manner that discloses whether a company’s activities in a particular fiscal period have resulted in profit or a loss. The income statement is a scoreboard of the firm’s performance during a particular period of time , “ The profit and loss account is the condensed and classified record of the gains and losses posing change in the downer’s interest in the business for a period of time “. The income statement or the profit and loss account presents the summary of revenues, expenses and net income (or net loss) of a firm for a period of time. Thus, it serves as measure of the film’s profit ability. It’s a systematic array of the data of the revenues, revenues deductions (expenses, the of the revenues, revenue deductions (expenses, losses, taxes etc.).Net income and distribution or assignment of the net income to creditors and property investors of a particular period. The balance sheet shows the financial status of a company as of a given date where as the statement of income shows the profit earned or the loss sustained by a company over a period of time. The balance sheet resembles a snapshot of a business whereas the statement of income resembles moving picture.

51

C. Statement of Changes in Financial Position :
Until 1960, the income statement and the balance sheet constituted the two major financial statements. However, management traditionally made use of a wide variety of statement and reports in apprising internal company performance. One popular report for management could extract valuable information about where working capital and cash come from and how they were used. If these past events could be projected in future, management would have a useful tool for budgeting. Today, the statement of changes of financial position represents a third financial statement.

Parties Interested
According to the a American institute of certified public accountants, financial statement reflects, “a combination a recorded facts, accounting conventions and personal judgments and the judgments and conventions applied, affect them materially.” Following are interested in financial statement: • • • • • • • • Creditors, suppliers and others are having business with the company. Debenture holders Credit institutions and banks Potential lenders and investors Trade unions and employees Economists and analyst Economists and analyst Members of parliament, the public committee in respect in government companies thers departments dealing with the industry in which the company engaged cooperative. • The company law board

52

Financial Appraisal:
A company’s financial statements are intended to summarize the results of its operations and it’s ending financial condition. The information in the statement is studied and related to other information by external user for several reasons. Current shareholders, for example are concerned about their invested income, as well as the company’s overall profitability and stability. Some indicate stable earnings and dividends with little growth in operations. Other prefers companies whose financial statements indicate trend for rapid growth in different lines of business. Short-term creditors are interested in a company’s short run solvency, its ability to pay current obligation as they become due. Long-term creditors are concerned about the safety of their interest, income and company’s ability to continue earning and ash flow to meet its financial commitments. And these are only few of the users, and uses of financial statements. But the numerical data in the financial statement dare quit calm. They cannot speak Analytical data are not ending in themselves, but they are meant to an end. Financial appraisal is an attempt to determine the significance, and meaning of the financial statement data so that forecast may be made of the prospects for future earnings, ability to pay interest, debts maturities both current as well as long term profitability of a sound dividend policy. Financial appraisal involves the assessment of firm’s past, present and anticipated future financial condition. Financial appraisal is a scientific evaluation if the profitability and financial strength of a business concern. In fact financial appraisal and analysis of financial statement have nearly the same meaning. Financial statement analysis is used for the purpose of financial appraisal. Financial appraisal is the process of making a scientific of making a scientific proper, critical and comparative evaluation of the profitability and financial statement analysis is a preliminary step to ward the evaluation of result dawn by the analyst or management accountant. Appraisal or evaluation of such results is made thereafter. Financial appraisal begins where financial analysis ends, and financial analysis starts where the summarization of financial data

53 in the form of profit and loss account and balance sheet ends, in the words for Kennedy and Macmillan, “financial statement analysis attempts to unveil the meaning and significance of the items composed in profit and loss account and balance sheet so as to assist the management in the formation of sound operating financial policies. The appraisal or analyses of financial statements spotlight the significant facts and relationships concerning managerial performance, corporate efficiency, financial strength or weakness and credit worthiness, that would have otherwise been buries in the maze of details.” The technique of financial appraisal is frequently applied to the study of accounting data with a view to determining continuity or discontinuity of the operation policies and investment value of business. Everybody interested in the affairs of the company is interested in finding answer to the following searching questions:• • • Does the company earn adequate profit? Does the company process enough funds to meet its obligation as and when mature? Is investment in the company safe? Appraisal of financial statement alone can answer such queries. It’s true that statement analysis merely revels what has taken place in the past, but past events given some indication of what may be expected in future unless some drastic changes take place in business it will continue to move in the same direction in the past. Roy A.Faulke is very correct to say ‘if a train is moving forward at a known rate of speed, it is reasonable to assume that it will continue to move at approximately the same rate unless some obstacle interrupts it progress abruptly or the motive power is increased or decreased”, similarly it is a reasonable to assume that unless some realistic change take places in the places in the business, it will continue to move in the same general direction as indicated by its comparative trends.

54

Need of Financial Appraisal:
The need of financial appraisal varies accounting to type of users. For management it serves as a means of “self evaluation” as it is like a report of its managerial skills and competence a banker can judge the liquidity position a creditor can plan buying and selling of shares of a concern on the basis of safety of principal and its capital appearances as warranted by the past record of earning. A debenture holder of a concern can as certain whether its income generates sufficient margin to pay the interest? Answers to different question are provided by financial appraisal. By using this technique an economist can study the extent of “concentration of economic power” and pitfalls in the financial policies pursued, while a planer can ascertain if the pattern of investment reveals the company’s position in relation to labor and its welfare, legislation concerning licensing, control of cost, fixing of prices ceiling of profit, dividend freeze tax subsidy and other regulation desirable in the socio economic interested may be based on statement analysis. Tools and Techniques Financial Appraisal Financial appraisal tools and techniques are the measurement of performance of business and soundness of financial position. They are one of the most inevitable steps required for financial appraisal. They can be divided in to three parts:

• • •

Accounting technique Statistical techniques and Mathematical technique

In this study ratio analysis has been used as a tool, hence only accounting technique has been discussed in detail.

55

Accounting Techniques:
To appraise the financial strength as well performance of a business concern various accounting technique are applied. The object of these techniques is to simplify to collected and rearranged and data by which they can be made easy to understand. These techniques are summarized as under: • • • • • Ratio analysis Trend percentage Common size and comparative statement Fund flow analysis Break even analysis

Ratios can be classified on two bases:

Structural Classification:
On this basis ratios can be divided as under: 1. Balance Sheet Ratios: These types of ratios are calculated by figures given in the balance sheet. 2. Income Statement Ratios: Ratios calculated from figures derived from profit and loss accounts are included in this type of ratios. 3. Inter – Statement Ratios: The ratios, which are computed from figures of both the financial statements, are called inter-statement ratios.

Functional Classifications:
On this basis ratios can be divided as under: 1. Profitability Ratios: Ratios, which measure the profitability of a concern, are termed as profitability ratios. 2. Turnover or Activity Ratios: Ratios used to measure the effectiveness of the use of capital or assets are called activity ratios.

56 3. Solvency Ratios: This type of ratios denotes the financial position concern; Solvency can be divided in to two types. a. Short-term solvency or liquidity: The capacity of firm to meet its current obligations is called liquidity. Ratios to measure liquidity are called liquidity ratios. b. Long term solvency: It is a measurement of the firm’s overall strength to measure this term is specified as long term solvency ratios.

Trend Percentage:
A horizontal comparison of various items of one along with their percentage to the total can bow made to know the trend of that PARTICULAR ITEM OVER A PERIOD OF YEARS. The study of trend will indicate the direction of movement over a long time. One can get a better view of things unaffected by short-term influences by the study of long term trend percentage. Another type of the comparison by trend percentage can be termed as index numbers index numbers can be computed by taking common base.

COMPARATIVE AND COMMON SIZE STATEMENTS (A)Comparative Statements: Comparison of tow or more years of a concern and comparison facilitated if the relevant dates are laid side by side in statement in single column from.

(B) Common-Size Statement : The proportion, which a single time represents within a total group or subgroup if calculated, will give an idea about the relative importance of items components expressed as a percentage of the total, which has common size (i.e. 100 ), the financial statements are known as common-size statements. This is in facts a vertical analysis of financial statements. The statements are known as comparative common-size statements, if comparative actual data are also placed side by side.

57 However, under this technique individual items of profit and loss account and balance sheet are reduced to a common base, which us treated as a equivalent to one hundred, In case of profit and loss account, sales are taken as hundred and all item are expressed with reference to sales. In a balance sheet the ratio of each asset to total assets and ratio of each Liability and capital item to total liabilities and capital (which is the same amount as total assets) is computed. These vertical percentages serve as indicators of the significant relationship, which exist between the expenses and the sales.

Funds Flow Analysis:
A statement of changes in financial position can be prepared to analysis the reason, which has laid to such changes. “Funds flow statement is a statement either prospective or retrospective setting out the sources and application of the funds of an enterprises”. The purpose of the statement is to indicate clearly the requirement of funds and how they are proposed to be raised and the efficient utilization and application of the same.

Break Even Analysis:
• The narrower interpretation of the term break even analysis tells us that it is a system of determinations of that level of activity where total cost equals total revenue of setting price. The broader interpretation refers to that analysis which determines the provable profit at any level of activity. As stated by Weston and Briahman , “ Break even analysis is useful in studying the relations among volume prices and cost structure, it is thus helpful in pricing, cost control and other financial decision.” There it is very crucial tool to measure profitability of business . “It magnifies a set of interrelationships of fixed costs, variable costs, level of activity of the profitability of the concern.” says Kulsrestha. Thus it is a tool of financial analysis in a specific way of

58 presenting and studying the interrelationships among costs, volume and profits

Rajasthan State dairy Development Co-operation was set up as the implementing agency for this programme. This function was subsequently handed over to the Rajasthan co-operative Dairy Federation (RCDF) when the state was covered under operation flood programmed. On April 1983, the JMSS was merged with RCDF. Thus the federation inherited the Jaipur Dairy along with the staff as well as the mandate to meet the demand of the milk product in the Jaipur city. It may be noted that Jaipur is the largest market for milk and milk product in Rajasthan and hence the Jaipur Dairy

3.7Limitation of study
Every research faces some obstacle. So I had also bound with some limitation during this project time. In research work I found out the essence of collected part and figures but limited resources caught my legs to find out whole truth. Those limitations are as follows:1. Lack of time. 2. In calculation of ratio, I face the problem of gathering information of previous data because of the confidentialness of the company.

59

FACTS AND FINDING
In SARAS, I found: 1. That the industry offering its best services and opportunities in every sphere, 2. That the employees working in, are satisfied with their jobs as well as treatment of the superior organizational members, 3. That employees are loyal towards the organization resulting enriched and considerable working experience. 4. That despite being simply graduated, by maintaining their healthier working experience many of them have been promoted by their hard work and creative expertise. 5. That the management control over the lower management and supervisory section is medium and not high because of the fact that employees are enough to handle their tasks and responsibilities fairly and honestly. 6. that the Daily reporting to the Superior by the corresponding subordinate employee of maintained so as to judge the comparative performance of the

60

5. ANALYSIS and INTERPRETATION JAIPUR DAIRY Current Ratio:
Current Ratio = Current Assets / Current Liabilities

Year Current (Rs.) Current (Rs.)

2008-2009 Assets 488731488 Liabilities 407276240

2009-2010 677539612 507278241

On the basis of above table, we can calculate Current Ratio:

Current Ratio

2008-2009 = 1.34 2009-2010 = 1.2

Current Ratio 1.4 1.35 1.3 1.25 1.2 1.15 1.1

1.34

2008-2009 2009-2010

1.2

o i a R t n e r u C

Year

Interpretation: Current ratio may be defined as the relation between current assets and current liabilities. It is generally good as 2:1.The higher current ratio the larger the amount of rupees available per rupees of current liabilities the more the firm’s ability to meet current obligations and the greater the safety of funds to short term creditors.

61

Liquidity Ratio:

Liquidity Ratio = Liquid Assets / Current Liabilities

Year Liquid Assets Current Liabilities

2008-2009 287830270 407276240

2009-2010 4216506847 507278241

On the basis of above table, we can calculate Liquidity Ratio:

Liquidity Ratio

2008-2009 = 0.706 2009-2010 = 0.83

Liquidity Ratio 0.85 0.8 0.75 0.7 0.65 0.6 Year 0.83

2008-2009 2009-2010

0.706

Interpretation: Ideal is 1.5:1. Ratio of more than one reveals that long-term fund has
been employed to finance current assets. And ratio of less than one Indicates that a part of fixed assets is financed by short term funds.

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Debt Equity Ratio:
Debt Equity Ratio=Total Debts / Net Worth Year Total Debts(Rs.) Net Worth(Rs.) 2008-2009 265723207 251723830 2009-2010 442872013 453882427

On the basis of above table, we can calculate Debt Equity Ratio: Debt Equity Ratio 2008-2009 = 0.59 2009-2010 = 0.55
Debt Equity Ratio

2008-2009

o a R y i u q E t b e D

2009-2010

0.6 0.59 0.58 0.57 0.56 0.55 0.54 0.53

0.59 0.55

Year

Interpretation: This ratio indicates the relative proportion of debt and equity in financing the assets of a firm. Debt Equity ratio reveals the relationship between internal and external source of funds of a firm. It indicates the firm's capacity to pay long-term Debts and procure additional loan and informs whether the firm is following the policy of trading on equity. A low ratio provides sufficient safety margin to creditors due to high stake of owners in the capital of the company A High ratio shows that the claims of creditors are greater than those of owners

63

Solvency Ratio:
Solvency ratio = Total Debts / Total Assets

Year Total Debts(Rs.) Total Assets(Rs.)

2008-2009 858912549 1292494849

2009-2010 759002071 1292494849

On the basis of above table, we can calculate Solvency Ratio:

Solvency Ratio

2008-2009 = 0.66 2009-2010 = 0.58

Solvency Ratio
0.7
2008-2009 2009-2010

0.66 0.58

0.65 0.6 0.55

i t a R y c n e v l o S

0.5 Year

Interpretation: It expresses the relation between total debts and total assets. If total assets are more than total debts; the firm is treated as solvent. The higher the ratio, the greater is the amount of creditors. That is being used to generate profits for the owners of the firm.

64

Fixed Assets Ratio:
Fixed Assets Ratio = Fixed Assets / Long Term Funds

Year Fixed Assets(Rs.) LongTerm Funds(Rs.)

2008-2009
703854896 139363269

2009-2010
704641526 285728250

On the basis of above table, we can calculate Fixed Asset Ratio:

Fixed Asset Ratio

2008-2009 = 5.05

2009-2010 = 4.05

Fixed Assets Ratio
6 5 4 3 2 1 0 5.05 4.05

2008-2009 2009-2010

o a R t s A d e x i F

Year

Interpretation: Ideal is 1.5:1. Ratio of more than one reveals that long-term fund has
been employed to finance current assets. And ratio of less than one Indicates that a part of fixed assets is financed by short term funds.

65

Stock Turn Over Ratio:
Stock Turn Over Ratio = Cost of Goods Sold / Average Stock

Year 2008-2009 Cost of Goods Sold 248411651 Average Stock 860514.2
On the basis of above table, we can calculate Stock Turn over Ratio:

2009-2010 259142346 830551.5

Stock Turn Over Ratio

2008-2009 = 288 times 2009-2010 = 312 times
Stock Velocity is 365/288 days = 1.267 days (2006-07) Stock Velocity is 365/312 days = 1.169 days (2007-08)

Stock Turn Over Ratio
315 310 305 300 295 290 285 280 275 312

2008-2009 2009-2010

288

i a R e v O n r u T k c o t S

Year

Interpretation: A high ratio reflects efficient business activities and is an indication of under investment in inventory. A low ratio reflects dull business over investment in inventory wrong valuation of stock and stock of unsaleable and obsolete goods. The inventory turn over ratio is also index of profitability as a high ratio indicates more profits.

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Fixed Assets Turn Over Ratio:
Fixed Assets Turn over Ratio = Total Sales / Fixed assets

Year Total Sales(Rs.) Fixed Assets(Rs.)

2008-2009 498969052 703854896

2009-2010 505933027 704641526

On the basis of above table, we can calculate Fixed Asset Turn over Ratio:

Fixed Assets Turn Over Ratio

2008-2009 = 0.708 2009-2010 = 0.718

Fixed Assets Turn Over Ratio
0.72
2008-2009 2009-2010

0.718 0.708

0.715 0.71 0.705

o i t a R r e v O n r u T t s A d e x i F

0.7

Year

Interpretation: The higher the ratio, the greater is the intensive utilization of fixed assets. Lower ratio means under utilization of fixed assets and excessive investment in these assets.

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Total Assets Turn Over Ratio:
Total Assets Turn Over Ratio = Net Sales / Total Assets

Year Net Sales(Rs.) Total Assets(Rs.)

2008-2009
498969052 885542501

2009-2010
505933027 895665887

On the basis of above table, we can calculate

Total Assets Turn Over Ratio: 2008-2009 = 0.56 2009-2010 = 0.56

Total Assets Turn Over Ratio

Total Assets Turn Over Ratio

2008-2009 2009-2010

0.6 0.5 0.4 0.3 0.2 0.1 0

0.56

0.56

Interpretation: This ratio indicates the number of times the assets are turned Over in a year in relation to sales. A higher total assets turn over ratio is the indicator of effective utilization of investment in assets, whereas lower assets turn over ratio indicates that assets are not properly utilized in comparison to sales.

o i a R v O n r u T t e s A

Year

68

6. SWOT ANALYSIS

S = Strength

W = Weakness

O = Opportunities

T = Threats

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Established Brand Established Brand Name Name Maximum Market Maximum Market Control Control Easy Availability ofof Easy Availability Milk from Other Milk from Other Cooperatives Cooperatives High Milk High Milk Production && Production Marketing Marketing Potential Potential

Autonomy inin Autonomy Decision Making Decision Making

STRENGTH STRENGTH

Extensive Extensive Marketing Marketing &Procurement &Procurement network network

Reasonable Reasonable Products Price Products Price

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High Fixed Costs High Fixed Costs

Milk Perceived Milk Perceived Unfit for Bulk Unfit for Bulk Buyers Buyers

WEAKNESS WEAKNESS

Weak Home Weak Home Delivery Delivery Infrastructure Infrastructure

High Interknits High Interknits Milk Purchase Milk Purchase Price Price

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Vast Tapped Vast Tapped Rural Market Rural Market

Capacity ofof Capacity Market Growth Market Growth
OPPORTUNITIES OPPORTUNITIES

Scope for Further Scope for Further Improvement inin Improvement Quality Quality

Scope for Scope for Improvement inin Improvement Home Delivery Home Delivery System System

Scope for Product Scope for Product Diversification Diversification

72

Excellent Policy ofof Excellent Policy itsits Competitors Competitors

THREATS THREATS Better After Sales Better After Sales Service Service No Large Private No Large Private Suppliers Suppliers

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7. CONCLUSION
Basically Saras contains 3 main parts as follows. Operation (Controlled by RCDF) Production (Controlled by Jaipur dairy) Marketing (Controlled by Both)

Saras provides a various variety of products like milk in different-2 packs, rasgulla, lassi, dahi etc. Beneficial part of the company is his distribution/collection channel and availability of products in the area. Products are very familiar and company provides the quality to the public. Saras keeps eyes open for taking sponsorship. There are lot of examples of social working activities … like drawing competition, race etc. There are many companies like Amul, Goraas etc. available in market for milk and milk products. So it is very important to make aware the consumer about newly introduce products. Company is handling a continuous daily process. Therefore company is maintaining the quality as well as the system best.

The financial position of saras is going upward. But the thing to be matter is that it should not be stopped. Yearly profit is regularly going up. So we can say after a period of time saras can lead the market all over India . Ratio shows the real status of the company and it is better than the previous year.

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8. RECOMMENDATION and SUGGESTIONS

•

Saras (jaipur Dairy) should hold more Liquidity in hand for the short time period.

•

Saras (Jaipur Dairy) should also emphasize his debt equity ratio because its shows the creditors claim are greater.

•

Saras (Jaipur Dairy) should introduce customer relationship management (CRM) system to be in touch with customer and to know their grievances. And invest some amount of money for it.

• • •

Saras has good condition as shown in solvency ratio. Long term fund have been employed in fixed assets. Saras has stock turn over ratio as 1.2 & 1.1 It should be maintained by the efficient management

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9. APPENDIX
Some doubt of public or consumer about Saras Milk and products ……………As follows…………..
Q1: What is milk? Q2: How Jaipur Dairy is different than the other dairies? Q3: Is it true that dairy milk is made of powder? Q4: How and from where i can get milk & milk products? Q5: What are the products being manufactured and marketed by Jaipur Dairy? Q6: I am having cow / buffalo at my home. Can i give milk to dairy directly? Q7: Formation of DCSS and interrelation ship with Jaipur Dairy? Q8: Why Pasteurized milk is better then vendor milk? Q9: What are the contents of milk?

Ans 1:

76 As per the standard definition, “milk is a lacteal secretion from the mammary glands of a healthy milky animal free from colostrums".

Ans 2: Jaipur Dairy is a dairy registered under Rajasthan cooperative act and is owned by thousands of its milk producer’s members. It works on world famous Amul pattern. As all other cooperative dairies, Jaipur Dairy is a part of three tier structure i.e. Dairy cooperative society at village level which form district level milk producer union which is further federated in state level federation. All three entities are autonomous and linked to each other by provisions of their byelaws.

Ans 3: Milk has got mainly three constituents – fat (3 to 6%, snf comprising of proteins, lactose, minerals etc (8 – 9%) and water (85%). Due to the calving cycle, cow / buffalo remain in milk for 8-9 months in a year. The high yielding and low yielding period is different in case of cow or buffalo, but generally winters are called flush season due to high production of milk whereas summers are called lean season when production is less. On the other hand, the demand is almost constant through out the year. Hence during flush season, fat part of milk is preserved in form of white butter and snf in form of powder after evaporating water. These two contituents are mixed and processed during lean season to meet the demand. So powder is nothing but preserved snf / fat of milk.

Ans 4: Jaipur Dairy for its esteemed consumers has developed a network of over

77 1600 retailers. One can meet all his demand by contacting the nearest retailer. In case of any problem you can contact us. The list of Saras Milk Parlors is as below:--S. Parior No. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 5001 5002 5003 5004 5005 5006 5007 5008 5009 5010 5011 5012 5014 5015 5016 5017 5018 5019 5020 5021 5023 5024

Name of Owner Address

Ph.No.

Sh.Ravindra S-6 Joshi Colony, Barkat 2593812 Joshi nagar Smt.Anjana B-117,Mangal marg, 2704493 Vijay Bapu nagar Smt.Preeti B-4,Shiv marg Bani park 5108846 Agarwal Sh.Arvind 74/173,Shipra path, 5178209 Bhatnagar Mansarovar Sh.Rahul A-23,Amaneeshah road, 5128179 Sharma Shastri nagar Smt. Rakhi New Sanganer Road 2292036 Daga Sh. Indarnath S.No.57-58, Gurunanak 5104260 Bhatia pura, Rajapark Sh. G.R. 13,ojha hi ka bagh, 2700766 Chaudhary Gandhi nagar mod Sh.Sampat Llal C-35, pratap marg, Tilak 2620812 joshi nagar M/S G.N.Bilders Hotel Baggichi, M.I. Road 2379219 Sh.Kushlesh 66-67, Vishveshvarya 5145842(pp) Sharma Nagar Ex. Sh.Pradeep B-50, Ganesh marg, 2704214 Joshi Bapu nagar Sh.Rajendra D.C.M.,Ajmer Road 3106133 Yadav M/S Pink City 54, Narayan Singh Circle 2571678 Press Club Sh. B.S. Sapra C-28, Baraf khana 2669297 Sh. K.K. Mehta 3 ta 31. Jawahar nagar 3128267 Sh.Hanuman Mandara bus 5178413 Sharma stand,V.T.Road Sh.Sanjay 14-A, Tanaji marg, 2321898 Sharma Brahampuri 500,Surya nagar, Sh. Manish Jain 3104546 Gopalpurabyepass Sh. 28 AB, Shriram colony, Ramswaroop 2236379 Vidhydharnagar Soni Sh. Anil Garg 1kha 25, Jawaharnagar 2653908 Sh. Pratap 1899, Kothari bhawan 2381994

78 Singh Smt. Meena Agarwal Sh.Manohar Singh Sh. Piyush Shah Smt. Rajkumari Jain Sh. Dinesh Gaud M/S Sevayatan Hospital

23 24 25 26 27 28 29 30 31

5025 5026 5027 5028 5029

32/10, Swarn path shopping centre

2070915

S.no.139, Himmat nagar 9288012380 122/57,Madhyam marg ,Mansarover S.no.15 ,Gangori Bazar 5063360 2317077 2501947 2220240 3952005 5123983 5140487

A-179, 80 Ft.Road, Mahesh nagar Ajmer Road ,Sodala, 5031 Jaipur 112/26, Agrawal Farm, 5032 Smt. Anju Jindal Mansarovor Surya Resort ,Bagru, H.parlor Sh. J.S. Gehlot Ajmer Road Sh.Shankar Lal Dayarampura, Agra H.parlor Sharma Road

Ans5:As shown in the above pages

. Ans 6: Saras take milk through it’s member village dairy cooperative societies only. Please pour milk to any one of it’s dairy cooperative societies. You can contact the zonal in charges or manager (field operation) for further queries.

79

Ans 7: Milk producers of villages

Management committee of dcs (9 members, out of which two from weaker section and one for woman)

Chairman of DCSS

Board of directors of Jaipur Dairy (total 14 member, including 9 elected members amongst chairmen of DCSS, out of which 6 from general category, two form weaker section (bpl, sc/ st etc.) And one from women chairpersons. Rest are nominated)

Chairman of bod of Jaipur Dairy (out of elected members)

Ans 8 INSIST ON SARAS MILK ONLY Milk is “nature’s perfect food” for all ages. It has almost all the vital nutrients needs for growth and well being of human body.

80 Milk is the richest natural source of calcium and essential amino acids. It is good for bone formation. It is particularly beneficial for people recovering from sickness, for sportsmen, for old people, for pregnant women and for growing children. The doctor recommends a minimum daily intake of 250 ml. Or one and a half glass of milk for every person. Normal cow milk has 4%fat and buffalo milk 6% fat. There is another important constituent of milk- solids not fats these solids – not – fat. (Or SNF, as it is commonly called) comprise of proteins, minerals, carbohydrates and vitamins. For milk to be nutritionally balanced, it has to contain both fat and solids- not- fat in right proportion. FAT 6.0% 4.5% 3.0% 1.5% SNF 9.0% Min. 8.5% Min. 8.5% Min. 9.0% Min.

FULL CREAM MILK STANDARDIZED MILK TONED MILK DOUBLE TONED MILK

GOLD SHAKTI TAAZA SMART

Milk is available in jaipur city in Gold Shakti, Taaza and smart varities. Milk strictly conforms to PFA standards to comply with the legal requirement and to provide wholesome nutritive food to our consumers. This means when you are buying Saras milk, you are sure you are getting value for your money. You are sure you are getting the “nature’s perfect food” your family you are sure you are getting your full 500 ml in every pack. You are sure you of getting a milk which has longer life because of its superior bacteriological quality. The loose milk available from local vendors in jaipur city often does not conform to pfa standards. It has fat and less solid-not-fat than required. Remember that if your milk contains 0.5% less fat or SNF, you are paying up to 60 paise per pouch extra. Besides, it is not uncommon to find artificial preservatives, not permitted by law being added to loose milk. This has been authenticated in a recent campaign run by this Sangh, in which it was found that more than 60% to 70% of milk sold by private traders and loose milk think again! By compromising on the quality of milk you may be depriving your children of essential life building proteins and nutrients that only pure, high quality milk offers. That is why: “INSIST ON MILK ONLY!

81 BECAUSE ONLY SARAS MILK GIVES YOU TRUE VALUE FOR YOUR MONEY MILK-PURE, FRESH & CREAMY

Ans. 9 Sr. Milk No. 1 2 3 4 5 6 Pour Bafeelo Milk Pour Cow Milk Saras Tond Milk of Jaipur dairy Saras Stardared Milk of Jaipur dairy Saras Gold Milk of Jaipur dairy Saras Smart Milk of Jaipur dairy

Fat (%) S.N.F.(%) Lactose 5 to 7 3.5 to 4.5 3.1 4.6 6.1 1.6 4.6 4.3 4.4 4.4 4.5 4.5 Protein 4.3 3.4 3.8 3.8 4.2 4.2 Other 0.4 0.5 0.4 0.4 0.4 0.4 Total 8.5 to 9.5 8.0 to 9.0 8.6 8.6 9.1 9.1

10. BIBLIOGRAPHY

REFERENCE BOOKS: -

82 Philip Kotler Kothari C.R publishers Maheshwari S.N. Edition Agarwal M.R. WEBSITES: • www.wikipedia.com/jaipurdairy • • • www.sarasdairy.com www.jaipurdairy.com www.milkfed.com/saras - Management Accounting 13th - Management Accounting - Marketing Management - Research Methodology New age International