Comparative Statement Analysis of Vijaya Dairy

Introduction of company
COMPANY PROFILE
As the years passed Andhra pradesh District Dairy Co-operative Farmers (APDDCF)
built up the infrastructure needed to meet every requirement of dairying that is procurement of milk
from over 800,000 dairy farmers spread across Andhra Pradesh Or getting it ready for nation wide
distribution. It all happened within the vast Dairy plant network of Andhra Pradesh District Dairy
Co-operative Farmers Through extensive use of high technology and management acumen honed
to steer such a wide spread operation, and brought prosperity to the state many times . The
federation has drawn up more comprehensive systems for procurement and processing of milk.
A dedicated research cases is actively pursuing ways and means of bettering
quality.Collaboration with global experts are also being sought, all in attempt to remain at the
forefront of modern dairying in India where quality will be the watchword.
Reaching out to the world
Andhra pradesh District Dairy Co-operative Farmers began its exports efforts thirteen
year ago and has gained significant ground aboard. It has spread its marketing network in Gulf and
is exploring the possibility of exploring the possibility of exporting dairy products like butter,
Cheese, Cheese spread, UHT milk sterilized cream etc., to other countries. The federation has been
meeting the tastes of divergent cultures, while bringing back to the pleasures of home to Nonresident Indians.
Today, Andhra pradesh District Dairy Co-operative Farmers is in the process of
acquiring capabilities to join the big league in dairy technology from USA, UK, Australia,
NewZealand and the Netherlands.
Andhra Pradesh District Dairy Co-operative Farmers at a glance:

District Milk Unions
Milk sheds
Milk Product factories
District Dairies
Major Dairies
Milk chilling Centers
Chilling capacity
Processing Capacity
10
5
7
9
2
63
11.37
No.
No.
No.
No.
No.
No.
LLPD
Milk Products factories

District Dairies
Major Dairies
Total Processing Capacity
Milk collection routes
Milk Producers Co-Op societies
17.50
3.24
3.50
24.24
421
4270
LLPD
LLPD
LLPD
LLPD
No.
No.
Milk producers Associations

Milk collection centers
Turn over 2005-06 Rs .In cores
4958
9228
697.45
No.
No.
Cores
Dairy development activities in Nellore district

During the year 1969, The Nellore dairy was started with initial capacity of 12,000 liters per
day mostly to collect milk from surrounding villages.Afterwards Due to increase in procurement the
handling capacity was expanded to 40,000liters Per day during the year 1979.
The milk chilling centre at Kavali was started during the year 1977 with an initial Capacity at
Venkatagiri was started during the year 1981 with same capacity.
During the year 1985, due to the increase in milk procurement in the District, they handle
capacity of milk chilling center Kavali and Venkatagiri have Been increased from 6,000 liter to
12,000 per day. In the year 1986 the Nellore Milk Union was registered under AP Co-operation
societies Act 1964.
Due to the further increase in milk procurementthe present handling Capacity of Nellore
dairy expanded to 40,001Lts to 75,000Lts per day and milk Chilling centrekavali also expanded
from 12,000 liters to 20,000 liters per day .Another milk chilling center in the district at Duttalur
with handling capacity do 10,000 Its per day was started in month of October 1995 and subsequently
Expanded 20,000 liters per day during 1998.
At present there are nearly 57,360 milk producers supplying milk to Nellore Union. Out of
which there are small farmers 23,960 marginal farmers 15,030, Agricultural labourers 10,040 and
large farmers 8,300. The data related to the Above development of Nellore dairy has beenshown in
the following table.
Name of the Unit
Capacity
Day
per Present Per Day
Peak on any date of the year
Nellore Dairy
75000 Liters
36000 Liters
43000 Liters
Kavali Dairy
30000 Liters
12000 Liters
17000 Liters
Venkatagiri Dairy
12000 Liters
12000 Liters
12000 Liters
Duttalur Dairy
22000 Liters
20000 Liters
22000 Liters
The data related to the above development of Nellore dairy has been shown in the following table.
Name of the organization
The N.D.M.P.M.C.U ltd.
( The Nellore District milk products mutually aided co-operative Union Ltd., Nellore)Vijaya Dairy.
Established year
: 1969
Registered office & address: Nellore dairy

Venkateswarapuram
Pin-524005
Chairman& key persons: c. Sudheer Reddy

Managing director
: K.Krishna Mohan
Products of the company
: Whole milk Products of the toned Milk 3% fat 8.5

%S.N.F(said not Contained fat)butter milk,double Toned milk cream
milk ghee,flavored milk, doodhpeda.
Branches Of the Company

1. Nellore Dairy
2. Milk cooling centers-Kavali
3. Milk cooling centers-Duthalur
4. Bulk Milk cooling centers-Doravarisathram
5. Bulk Milk cooling centers-Nellore palem
6. Bulk Milk cooling centers-Adurupalli

7. Head office of the company:Lala pet, Hyderbed
8. Certificates, achievements&
Rewards: Milk products and milk sales with Vijaya brand highest to other brand.
PRODUCT PROFILE
TodayAndhra Pradesh District Dairy Co-operative Farmers offer the Widest spectrum of
milk products in India, under the brand name VIJAYA. TheseInclude ghee, butter, processed
cheddar cheese and cheese spread, flavoured milk (Merrimack), slim milk in tetra packs, sterilized.
Skim milk powder, dairy whitener, cooking butter and ice cream, several Among these carry
the mark AN attestation of quality by Government of India And the ISI mark of Bureau of Indian
standards.The Brand VIJAYA is name for Quality and quantity, which makes it atrusted name in
millions of households Across the country.
In addition, Andhra Pradesh District Dairy Co-operative Farmers also manufacturers
products such as sterilized flavoured milk,panner(indigenous cheese), Doodhpeda(Desiccated milk
sweet ) and Butter milk which are marketed through a network of vijaya dairy parlours and a chain
of retailers spread across Andhra Pradesh.
Milk
Contains 3.0% fat and 8.5% SNF

Highly nutritious
Pasteurized,standardized/toned/double toned milk
100% bacteria free and contained no preservatives and additives
Packed in poly sachets using sophisticated from, fill and seal machines.
INDUSTRY PROFILE
Dairy Scenario
Milk is an important nutritious food. It is more important to infants and old people. Large
Number of people depends upon milk as an important source of nourishment. India worth its vast
population gives sentimental attachment to milk as a good food. The government of India
encouraged Co-Operative societies for production of Milk and its products and setting up of process
of large milk units.
India is today the highest dairy products producer in the world. The production of milk in
India is 88 Million Tones per year. It may be seen that the milk procurement by the organized sector
is presently, a fraction of total milk available. With high Quality technology and expertise available
indigenously and with the milk and milk products order announce by the governments enabling the
private sector to deal directly with the farmer.
Organized handling of milk would lead to proper procurement measures, which would in
turn be beneficial to farmers. Enumerative price to farmers would lead to better care of cattle and
there by set kin motion a health cycle of increased availability of good milk.
World focus on Indian dairy
Indian dairy is emerging as a sunrise Industry India represents one of the worlds largest and
fastest growing markets for milk and milk products due to the increasing disposable income among
the 250 million strong classes. Two mail reasons for the world focus on India are one, the low cost
economy; and, two, the liberalization process initiated since 1991.Other important factor include:
low inflation rate, inexpensive labour the presence of the worlds third largest pool of technical man
power, the worlds largest democracy.
Efforts to increase milk production by dairy farmers are strongly influenced by the degree to
which demand signals are transmitted through the marketing system. Co-Operatives have played an
important role in transmitting the message of urban market demand to them.
Competitive advantages of Indian dairy
Intheemerging liberalized global scenario, trades distorting agricultural policies have been
the focus of the General Agreement on Trade & Tariffs (GATT) multilateral trade negotiation. With
the liberalization of agricultural trade under the new GATT regime, the heavy subsidies prevalent
the dairy sectors in the countries of the European Union as well as in the US will have to be brought
down in the next few years.
The competitive advantages of the Indians dairy Industry are then considered to be
substantial and continued investments in building up milk production, India can emerge as a major
exporter of dairy products at least by the early part of the next century, even though a prospect may
meet with considerable opposition from the advanced dairy nations and this opposition is likely to
focus significantly on quality issues.
It is therefore necessary to evolve a long term industry policy that will not only sustain but
also enhance production and productive levels. This would require ensuring remunerative and
increased returns. To the farmer while ensuring supply of increased fluid milk needs of the urban
population at reasonable prices.
Dairy industry in India
The dairy industry in India is going through major changes with the linearization policies of
the government and the restructuring of the Economy. These have brought greater participation of
the private sector.
This is also consistent with global trends which could hopefully lead greater integration at
Indian dairying with the world market for milk and milk product. After stagnating to 80 million tons
for 20 years between 1950 and 1970 Indian Milk production began to rise.Crossing 30 million tones
in 1980 and 59 million tones in 1992.Today India Ranks as the world second largest milk producer
after the U.S.
Review of dairying in India
The main study of Indian farmers has been agriculture and allied occupations, farm animals
especially cattle, have been an integral part of rural India for thousand of years.During the year 1920
military farms were established to supply adequate Raw Milk to the stators.These military farms
were well maintained and even their stages were raising improved animals.else were in urban areas,
dairying was largely left in handsat traditional producers, Middlemen, debates of private vendors.
1.4
Comparative Study Between Years 2015-2014:

During the current financial year, the management based on physical verification
of fixed assets and inventory and reconciliation of various heads of assets and liabilities in
the subsidiary and general ledgers which has resulted into increase/decrease in the
following assets and liabilities taken over as on 01st October 2000 amounting to net
reduction in the assets of Rs.5,910 lakh (P.Y. - Rs. 25,452 lakh):
Figures in Lakhs of Rupees
Particulars
Assets
up to
march 31,
up to
march 31,
Absolute
change
Percentag
e Change
(%)
Fixed Assets
5,417,921
5,416,697
(1,224)
-0.02
Capital WIP
503,112
502,631
(481)
-0.10
Inventory
188,647
188,681
34
0.02
Sundry Debtors
682,740
684,430
1,690
0.25
39,448
39,448
0.00
2,086
2,138
52
2.49
6,833,954
6,834,025
71
0.001
391,656
393,704
2,048
0.52
12,525
12,158
(367)
-2.93
29,454
29,099
(355)
-1.21
38,283
42,666
4,383
11.45
Advance to
Deposit with
Electricity
Total A
Liabilities
Customer Deposits
Earnest
Money
Security Deposit
from Contractors/
Working
Expense
Liability as on
Contractors
Bills payable
as on 1st
Net Assets taken
over by the
10,008
10,280
272
2.72
6,352,028
6,346,118
(5,910)
-0.09
Total B
6,833,954
6,834,025
71
0.001
Interpretation of Comparative Balance Sheet

The comparative balance sheet of the company reveals that during 2015there has been
on increase in final assets of Rs. 1224 lakh i.e. 0.02% while long term liabilities to
other side have relative increase by Rs. 4383 lakh and contractor bill pay has
increased by Rs 272 lakh. This fact depicts the policy of the company is to purchase
fixed assets from the long-term sources of finance there by not affect the working
capital.
Current assets have increased by Rs. 1261 lakh and advance of contractor not increased
on the other hand there has been an increase in inventories amount Rs. 34 lakh. The
current liabilities have increased by Rs. 4582 lakh i.e. 0.06%.
This further confirms that the company has revised long term finances.
The overall financial position of the company is satisfactory.
1.5
SWOT Analysis:
STRENGTHS:
Pan-India reach
Huge Resources (financial & technical pool)
Huge customer base
Most trusted brand
Transparency in billing
Easy deployment of new services
WEAKNESSES:
Poor marketing strategy
Bureaucratic organizational set up
Inflexibility in mindset (DOT period legacies)
Limited number of value added services
Poor franchisee network
Legacy of poor service image
Huge and aged manpower
Procedural delays
Lack of strategic alliances
Problems
associated
with incumbency
like outdated
technologies,
unproductive rural assets, social obligations, political interference,
OPPORTUNITIES
Tremendous market growing at 20 lac customers per month
Can capitalize on public sector image to grab governments
Diversification of business to turn-key projects
Leveraging the brand image to source funds
Fuller utilization of slack resources
Can make a kill through deep penetration and low cost advantage
Broaden market expected
THREATS
Competition from private operators
Keeping pace with fast technological changes
Market maturity
Manpower churning
Multinational eyeing
Private operators demand for sharing last mile
Decreasing per line revenues due to competitive pricing
Chapter 2
2.2
Research Design & Methodology:
Research
The research design of this project is exploratory. Though each research study has its own specific purpose
but the research design of this project on N.D.M.P.M.C.U LTD. is exploratory in nature as the objective
is the development of the hypothesis rather than their testing.
The research designs methods of financial analysis. Through of comparative balance sheet in
comparative statement, I am studying on balance sheet of N.D.M.P.M.C.U LTD. Of five year. So
taking comparative statement, I am going to analyzed of five years balance sheet of N.D.M.P.M.C.U
LTD.
Methodology
Every project work is based on certain methodology, which is a way to systematically solve the problem
or attain its objectives. It is a very important guideline and lead to completion of any project work
through observation, data collection and data analysis.
Research Methodology comprises of defining &
redefining problems, collecting, organizing & evaluating
data, making deductions & researching to conclusions.
According to Clifford Woody,
2.3
Sampling Technique Used:

This research has used convenience sampling technique.
2.4
Sampling technique: Convenience sampling is used in exploratory research where
the researcher is interested in getting an inexpensive approximation of the truth. As the
name implies, the sample is selected because they are convenient
2.5
Selection of Sample Size: Survey of each department.
2.6
Sources of Data Collection:

Research will be based on two sources:
1. Primary data
2. Secondary data
1) Primary Data:
Survey: Primary data was collected by departmental survey for N.D.M.P.M.C.U LTD. .
2) Secondary Data:
Secondary data will consist of different literatures like books which are published,
articles, internet, the company manuals and websites of company.
In order to reach relevant conclusion, research work needed to be designed in
a proper way.
This research methodology also includes:_ Familiarization with the concept of finance and its various merits, demerits.
_ Thorough study of the information collected.
_ Conclusions based on findings.
2.6
Statistical Tools Used

The main statistical tools used for the collection and analyses of data in this
project are:
_ Bar Diagrams
Line Charts
2.7
Limitations of Study
Financial analysis is a powerful mechanism of determining financial strengths and weaknesses of a firm
but, the analysis is based on the information available in the financial statements. We has also careful
about the impact of price level chances, windows-dressing of financial statements, changes in
accounting policies of N.D.M.P.M.C.U LTD. , accounting concepts and conventions, and personal
judgments etc.
Due to the following unavoidable and uncontrollable factors the factors, the result might not be accurate.
Some of the problems faced while conducting the survey are as follows:_ Chances of some biasness could not be eliminated.
_ A majority of respondents show lack of cooperation and are biased towards
their own opinions.
Some of the important Limitations of financial analysis are however, summed up as below:
_ It is only a study of interim reports.
_ Financial analysis is based upon only monetary information and non-monetary
factors are ignored.
_ As the financial statements are prepared on the basis of a going concern, it
does not give exact position. Thus accounting concepts and conventions cause
a serious limitation to financials analysis.
_ Changes in accounting procedure by a firm may often make financial analysis
misleading.
_ Analysis is only a means and not an end in itself. We has to make
interpretation and draw own conclusion
Different people may interpret the same analysis in different ways.
Chapter 3 Calculation of Data

Theoretical concept
Theoretical concept
3.1
Introduction
Financial statements are prepared primarily for decision making. They play a
dominant role in setting the framework of managerial decisions. But the information
provided in the financial statement is not an end in itself as no managerial can be
drawn from these statement alone. However, the information provided in the financial
statement is of immense use in making decision through analysis and interpretation of
financial statements. Financial analysis is the process of identifying the financial
strengths and weaknesses of the firm by properly establishing relationship between
the item of the balance sheet and the profit and loss account. There are various
methods used in analyzing financial statements, such as comparative statements, trend
analysis, common-size statement, schedule of change in working capital, funds flow
and cash flow analysis, cost-volume-profit analysis and ratio analysis.
The term financial analysis, also know as analysis and interpretation of
financial statement, refers to the process of determining financial strengths and
weaknesses of the firm of the firm by establishing strategic relationship between the
item the balance sheet, profit and loss account and other operative data.
Financial analysis is a process of evaluating the
relationship between component parts of a financial statement
to obtain a better understanding of a firms position and
performances
According to Matclf and Titard
Financial statement analysis is largely a study of
relationship among the various financial factors in a business
as disclosed by single set-of statements and a study of the
trend of these factors as shown in a series of statement.
According to Myers
The term financial statement analysis include both analysis and interpretation.
The analysis and interpretation of financial analysis statements is essential to bring
out the mystery behind the figure in financial statements. Financial statement is an
attempt to determine the significance and meaning of the financial statement data so
the forecast may be made of the future earning, ability to pay interest and maturities
and profitability of a sound dividend policy.

Types of Financial Analysis
I can classify various types of financial analysis into different categories
depending upon (i) the material used, and (ii) the method of operation followed in the
analysis or the modus operandi of analysis.
(i) On the basis of material used: According to material used, financial analysis
can be of two types (a) external analysis and (b) internal analysis.
a. External Analysis: This analysis is done by outsiders who do not have
access to the detailed internal accounting records of the business firm.
These outsiders include investors, potential investors, creditors,
potential creditors, government agencies, credit agencies and the
general public. For financial analysis, this external party to the firm
depends almost entirely on the published financial statement. External
analysis, thus serves only a limited purpose. However, the changes in
the government regulations requiring business firm makes available
more detailed information to the public through audited accounts have
considerably improved the position of the external analysis.
b. Internal Analysis: The analysis conducted by persons who have
access to the internal accounting records of a business firm is known as
internal analysis. Such an analysis can, therefore, be performed by
executive and employees of the organization as well as government
agencies which have statutory powers vested in them. Financial
analysis for managerial purpose is the internal type of analysis that can
be effected depending upon the purpose to be achieved.
(ii) On the basis of modus operandi: According to the method of operation
followed in the analysis financial can also be of two types: (a) horizontal
analysis (b) vertical analysis.
a. Horizontal Analysis: Horizontal analysis refers to the comparison of

financial data of a company for several years. Thus figure for this type
of analysis are presented horizontally over a number of columns. The
figures of the various years are compared with standard or base years.
A base year chosen as beginning point. This type of analysis is also
called Dynamic Analysis as it is based on the data from year to year
rather than on data of any one year. The horizontal analysis makes it
possible to focus attention on items that have changed significantly
during the period under review. Comparison of an item over several
periods with a base year may show a trend developing. Comparative
statement and trend percentages are two tools employed in horizontal
analysis.
b. Vertical Analysis: Vertical analysis refers to the study of relationship
of the various items in the financial statements of one accounting
period. In this types of analysis the figure from financial statement of a
year are compared with a base selected from the same years statement.
It is also knows as Static Analysis. Common-size financial analysis
statement and financial ratio are the tools employed in vertical
analysis. Since vertical analysis considers data for one time period
only, it is not conducive to a proper analysis of financial statements.
However, it may be used along with horizontal analysis to make it
more effective and meaningful.
Procedure of Financial Statements
There are three steps involved in the analysis of financial statements. These
are: (i) selection (ii) classification (iii) interpretation, the first step involves selection
of information (data) relevant to the purpose of analysis of financial statements. The
second step involved is the methodical classification of the data and the third step
include drawing and conclusions.
The following procedure is adopted for the analysis and interpretation of financial
statements:
1. The analysis should acquaint himself with the principal and postulates of
accounting. He should know the plans and policies of the management so that
he may be able to find out whether these plans properly executed or not.
2. The extent of analysis should be determined so that the sphere of work may be
decided. If the aim is to find out the earning capacity of the enterprise than
analysis of income statement will be undertaken. On the other hand. If
financial position is to be studied then balance sheet analysis will be
necessary.
3. The financial data given in the statement should be re-organized and rearranged. It will involve the grouping of similar data under same heads,
breaking done of individuals components of statements according to nature.
The data is reduced to a standard form.
4. A relationship is established among financial among financial statements with
the help tools and techniques of analysis such as ratio, trends, common size,
funds flow etc.
5. The information is interpreted in a simple and understandable way. The
significance and utility of financial data is explained for helping decisiontalking.
6. The conclusions drawn from interpretation are presented to the management in
the form if reports.
Methods or Devices of Financial Analysis

The analysis and interpretation of financial statements is used to determine the
financial position and result of operation as well. A number of methods or devices are
used to study the relationship between different statements. An effort is made to use
those devices which clearly analysis position of the enterprise.
The following methods of analysis are generally used:
_ Comparative Statement
_ Trend analysis
_ Common Size Statement
_ Cash Flow Analysis
_ Funds flows
_ Ratio analysis
_ Cost volume - Profit analysis
.
Comparative Statement: Comparative balance sheet analysis is the study of the
trend of the same items, group of item and computed item in two or more balance
sheets of the same business enterprise on different data.
Trend analysis: This method determines the direction upwards and involves the
computation of the percentage relationship that each statement item bears to the same
item in base year.
Common size Statement: The common size statements balance sheet statements are
shown in analytical percentages. The figures are shown as percentages of total assets,
total liabilities and total sales. Total assets are taken as 100 and different assets are
expressed as a percentage of the total, similarly various liabilities are taken as a part
of total liabilities.
Cash flow Statement: Cash flow statement is a statement which describes the inflow
(sources) and outflow (uses) of cash and cash equivalent in an enterprise during a
specified period of time.
Ratio Analysis: Ratio is a simple arithmetical expression of the relationship of one
number to another. It may be defined as the indicated quotient of two mathematical
expressions.
Cost Volume Profit Analysis: Cost Volume Profit Analysis is a technique for
studying the relationship between cost, volume and profit. Profit of an understanding
depend upon a large number of factors. But the most important of these factors are the
cost of manufacture, volume of sales and the selling prices of the product.
Comparative Statements
The comparative financial statements of the financial position at different
positions; at time. The elements of financial position are shown in a comparative form
so as to given an idea of financial position at two or more periods. Any statement
prepared in a comparative form will be covered in comparative statements. From
practical point of view , generally two financial statements (balance sheet and income
statement) are prepared in comparative form for financial analysis purpose. Not only
the comparison of the figures of two financial position and operative results. The
comparative statement show :
Absolute figures ( rupee amounts )
Changes in absolute figures i.e., increase or decrease in absolute figures.
Absolute data in terms of percentages.
Increase or decrease in terms of percentages.
The financial data will be comparative only when same accounting principles are used
in preparing these statements. In case of any deviation in the use of accounting
principles this fact must be mentioned at the foot of financial statements and the
analyst should be careful in using these statements. The two comparative statements
are (i) Balance sheet, and (ii) income statement.
Comparative Balance Sheet
The comparative balance sheet analysis is the study of the trend of the same
items, group of items and computed items in two or more balance sheet of the same
business enterprise on different dates. The changes in periodic balance sheet items
reflect the conduct of a business. The changes can be observed by comparison of the
balance sheet at the beginning at the end of period and these changes can help in
forming an opinion about the progress of an enterprise. The comparative balance
sheet has two columns for the data of original balance sheets. A third column is used
to show increases in figures. The fourth column may be added for added for giving
percentages of increases or decrease.
3.2
Comparative Balance Sheet of N.D.M.P.M.C.U LTD. 2015 & 2014
Table 3.1
Particular
SOURCES OF
FUNDS shareholder's
Funds Capital
Reserve and Surplus
Loan Funds
Unsecured Loans
Deferred Tax Liability net Total
APPLICATION OF
FUNDS Fixed Assets
gross block
Less:Deperecatio
n Net Block
Capital Work in
Progress
Decommissioned Assets
Investment
Current Assets,Loans and
Advances Inventories
Sundry Debtors
Cash and Bank Balances
Other Current Assets-Accrued
intrest Loan and Andvances
Less:Current Liabilities and
Provision Current Liabilities
Provision
Net Current Assets
Inter/Intra Circle
Remittance
Total
2015
2014 Incr./Decr. %
1250000
7562825
1250000
7444802
338887
131053
9282765
554366
124605
9373773
1245782
3
6987974
5469849
266562
389
5736800
20000
11864901
6071511
5793390
256860
6444
6056694
20000
322006
546551
4055158
137687
744441
5805843
1739788
606321
2346109
3459734
66231
928276
5
242847
558066
3745296
114148
714431
5374788
1667919
514858
2182777
3192011
105068
937377
3
0
118023
1.59
(215479)
-38.87 6448
5.17 (91008)
-0.97
592922
916463
5.00
15.09
(323541)
-5.58 9702
3.78 (6055)
-93.96 (319894)
-5.28 0
0
79159
32.60
(11515)
-2.06 309862
8.27 23539
20.62 30010
4.20 431055
8.02
71869
91463
163332
267723
(91008)
4.31
17.76
7.48
8.39
(38837)
-36.96
-0.97
Comparative Balance Sheet In Rs.

8000000
year 2015
6000000
year 2014
Inter/Intra Circle
Provision
Loan and
Cash and Bank
Inventories
Decommissione
Net Block
Capital
2000000
0
Unsecured
4000000
Figure 3.1: Comparative Balance Sheet Chart
Comparative Balance Sheet In %
Inter/Intra Circle
Provision
Loan and
Cash and Bank
Inventories
Net Block
(20)
(40)
(60)
Unsecured
Capital
20
Decommissione
40
(80)
(100)
(120)
Figure 3.2: Comparative Balance Sheet Chart in %
percentages
Procedure of Comparative Balance Sheet

1. The Comparative balance sheet has two columns for the data of original balance
sheet.
2. Third column is used to show increases in figures.
3. The Fourth column may be added for giving percentages of increase or decrease.
Interpretation of Comparative Balance Sheet (Table 3.1)
The comparative balance sheet of the company reveals that during 2015
there has been on decrease in fixed assets of Rs. 319894 lakh i.e. -5.28% while
long term liabilities to outsiders have relatively decrease by Rs. 91008 lakh i.e.
-0.97. This fact depicts the policy of the company is to not purchase fixed assets
from the long-term sources of finance there by not affect the working capital.
Current assets have increased by Rs. 163,332 lakh and cash and bank
balances also increased Rs. 309,862 i.e. 8.27%, investments not increased on the
other hand there has been an increase in inventories amount Rs. 79,159 lakh
i.e.32.60%. The current liabilities have increased by Rs. 163,332 lakh i.e. 7.84 %.
This further confirms that the company has revised long term finances.
2014
3.3

Table 3.2
Particular
SOURCES OF FUNDS
shareholder's Funds
Capital
Reserve and Surplus
Loan Funds
Unsecured Loans
Deferred Tax Liability - net
Tota
l APPLICATION OF FUNDS
Fixed Assets
gross block
Less: Deprecation
Net Block
Capital Work in Progress
Investment
Current Assets, Loans and
Advances
Inventories
Sundry Debtors
Cash and Bank Balances Other
Current Assets-Accrued
interest
Loan and Advances
Less:Current Liabilities
and Provision
Current
Liabilities
Provision
Net Current Assets
Inter/Intra Circle
Remittance
To
2013 Incr./Decr. %
1250000
7444802
1250000
6825651
0
619151
0
9.07
554366
124605
9373773
728393
170400
8974444
(174027)
(45795)
399329
-23.89
-26.88
4.45
11864901
6071511
5793390
256860
6444
6056694
20000
11169203
5150354
6018849
382048
7346
6408243
20000
695698
921157
(225459)
(125188)
(902)
(351549)
0
6.23
17.89
-3.75
-32.77
-12.28
-5.49
0
242847
558066
3745296
278922
630205
3057948
(36075)
(72139)
687348
-12.93
-11.45
22.48
114148
714431
5374788
63627
923207
4953909
50521
(208776)
420879
79.40
-22.61
8.50
1667919
514858
2182777
3192011
105068
1612324
888223
2500547
2453362
92839
8974444
55595
(373365)
(317770)
738649
12229
399329
3.45
-42.04
-12.71
30.11
13.17
4.45
9373773
Compararive Balance Sheet In Rs.

8000000
Inter/Intra Circle
Provision
Loan and
Cash and Bank
Inventories
2000000
0
Decommissione
year 2013
Net Block
4000000
Unsecured
year 2014
Capital
6000000

10
0
Inter/Intra Circle
Provision
Loan and
Inventories
Cash and Bank
-4
Decommissione
Net Block
-2
Capital
0
20
0
Unsecured
8
percentage
0

sheet.

The comparative balance sheet of the company reveals that during 2014there
has been a decrease in fixed assets of 351,549 i.e. -5.49% while long term liabilities to
outsiders have increased by Rs. 399329 i.e. 4.45%. There has also been increase of
Rs. 619151 lakhs, i.e. 9.07% in reserves and surplus of the company. Thus, the
company has used long-term resources to finance additional working capital.
The current assets have increased by Rs. 420879 lakhs, i.e. 8.50% and cash
and bank balance has increased by Rs. 687348 lakhs, on the other hand , The current
liabilities have increased only by Rs. 55595 lakhs, i.e. 3.45%.
Inventories have decreased from Rs. 278922 iakhs to Rs. 242847 lakhs, i.e.
12.93% which shows that there have increased in demand. It is better for business.
3.4
Comparative balance sheet of N.D.M.P.M.C.U LTD. 2013 & 2012

Table 3.3
Particular
SOURCES OF FUNDS
shareholder's Funds
Capital
Reserve and Surplus
Loan Funds
Unsecured Loans
2013
Tota
l APPLICATION OF FUNDS
Fixed Assets
gross block
Less: Deprecation
Net Block
Capital Work in Progress
Investment
Current Assets, Loans and
Advances
Inventories
Sundry Debtors
Cash and Bank Balances Other
Current Assets-Accrued
interest
Loan and Advances
Less: Current Liabilities
and Provision
Current
Liabilities
Provision
Net Current Assets
Inter/Intra Circle
Remittance
Total
2012 Incr./Decr. %
1250000
6825651
1250000
6027911
0
797740
0
13.23
728393
170400
8974444
822089
304402
8404402
(93696)
(134002)
570042
-11.40
-44.02
6.78
11169203
5150354
6018849
382048
7346
6408243
20000
10410216
4233309
6176907
457226
8045
6642178
20000
758987
917045
(158058)
(75178)
(699)
(233935)
0
7.29
21.66
-2.56
-16.44
-8.69
-3.52
0
278922
630205
3057948
224535
663703
2193113
54387
(33498)
864835
24.22
-5.05
39.43
63627
923207
4953909
14368
752160
3847879
49259
171047
1106030
342.84
22.74
28.74
1612324
888223
2500547
2453362
92839
8974444
1461541
738616
2200157
1647722
94502
8404402
150783
149607
300390
805640
(1663)
570042
10.32
20.26
13.65
48.89
-1.76
6.78

8000000
Inter/Intra Circle
Provision
Loan and
Cash and Bank
Capital
2000000
Inventories
year 2012
Decommissione
4000000
Net Block
year 2013
Unsecured
6000000
Inter/Intra Circle
Provision
Loan and
Cash and Bank
Net Block
Unsecured
Capital
percentages 100
50
0
-50
-10
0
Inventories
40
0
35
0
30
0
25
0
20
0
150
Decommissione
Comparative Balance Sheet in %

sheet.

The comparative balance sheet of the company reveals that during 2006 there
has been a decrease in fixed assets of Rs. 233935 lakhs, i.e. 3.52% while long-term
liabilities to outsiders have increased by Rs. 570042 lakhs, i.e.6.78%. There has also
been increase by Rs. 797740 lakhs, i.e. 13.23% in reserve and surplus of the company.
Thus, the company has used long term resources to finance additional working
capital.
The current assets have increased by Rs. 1106030 lakhs, i.e. 28.74% and cash
has increased by Rs. 864835 lakhs. On the other hand, there has been increased in
inventories amounting to Rs. 54387 lakhs. The current liabilities have increased only
by Rs. 150783 lakhs, i.e. 10.32%. These further confirm that the company has raised
long term finance even for the current assets resulting into an improvement in the
liquidity position of the company.
3.5
Table 3.4
2012
Particular
SOURCES OF FUNDS
shareholder's Funds
Capital
Reserve and Surplus
Deferred Government Grant
Loan Funds
Secured Loans
Unsecured Loans
Deferred Tax
Liability
Tota
l APPLICATION OF FUND
Fixed Assets
Gross Block
Less: Depreciation
Net Block
Capital Work-in-Progress
Investments
Current Assets, Loans and Advances
Inventories
Sundry Debtors
Cash and Bank Balance
interest
Loans and Advances
and Provision
Liabilitie
s
Provision
Net Current Assets
Intra/Inter Circle
Remittance
Total
2011 Incr./Decr.
1250000
6027911
125000000
505183259
7200000
(123750000)
(499155348)
(7200000)
-99.00
-98.81
-100.00
822089
304402
8404402
75376842
48033540
760793641
(74554753)
(47729138)
(752389239)
-98.91
-99.37
-98.90
10410216
4233309
6176907
457226
8045
6642178
20000
952878982
324262136
628616846
58549917
1477395
688644158
2000000
(942468766)
(320028827)
(622439939)
(58092691)
(1469350)
(682001980)
(1980000)
-98.91
-98.69
-99.02
-99.22
-99.46
-99.04
-99.00
224535
663703
2193113
23437496
39794505
115574751
(23212961)
(39130802)
(113381638)
-99.04
-98.33
-98.10
14368
752160
3847879
97040202
275846954
14368
(96288042)
(271999075)
-99.22
-98.61
1461541
738616
2200157
1647722
94502
8404402
149280684
58866140
208146824
67700130
2449353
760793641
(147819143)
(58127524)
(205946667)
(66052408)
(2354851)
(752389239)
-99.02
-98.75
-98.94
-97.57
-96.14
-98.90
year 2012
Net Current
Liabilities
Other
Sundory
Investments
Capital
Deferred Tax
Deferred
Capital
year 2011
-97.00
es -98.00
Net Current
Liabilities
Other
Sundory
Capital
Investments
-96.00
Deferred Tax
-95.00
Deferred
-94.00
Capital
percentag
-99.00
-100.00
-101.00

1. The Comparative balance sheet has two columns for the data of original balance sheet.
3. The Fourth column may be added for giving percentages of increase or decrease
The comparative balance sheet of the company reveals that during 2012there
has been a decrease in fixed assets i.e. 99.46 % while long term liabilities to
outsiders have decreased by i.e. 98.94%. In this year company face profit decrease
problem but company having profit
The overall financial position of the company is satisfactory but compare 2011
company profit are not satisfactory.
3.6

Table 3.5
Particular
SOURCES OF FUNDS
shareholder's Funds
Capital
Reserve and Surplus
Loan Funds
Secured Loans
Unsecured Loans
Deferred Tax
Liability
2011
Tota
l APPLICATION OF FUND
Fixed Assets
Gross Block
Less: Depreciation
Net Block
Capital Work-in-Progress
Investments
Current Assets, Loans and Advances
Inventories
Sundry Debtors
Cash and Bank Balance
Loans and Advances
and Provision
Liabilitie
s
Provision
Net Current Assets
Intra/Inter Circle
Remittance
Total
2010 Incr./Decr.
125000000
505183259
7200000
125000000
434218011
7200000
0
70965248
0
0
16.34
0
75376842
48033540
760793641
5100000
78864381
38289125
688671517
(5100000)
(3487539)
9744415
72122124
-100.00
-4.42
25.45
10.47
952878982
324262136
628616846
58549917
1477395
688644158
2000000
853406778
223305948
630100830
92650554
1170342
723921726
2000000
99472204
100956188
(1483984)
(34100637)
307053
(35277568)
0
11.66
45.21
-0.24
-36.81
26.24
-4.87
0
23437496
39794505
115574751
97040202
275846954
30532810
29451975
34396844
68085928
162467557
(7095314)
10342530
81177907
28954274
113379397
-23.24
35.12
236.00
42.53
69.79
149280684
58866140
208146824
67700130
2449353
760793641
173100827
33898939
206999766
(44532209)
7282002
688671519
(23820143)
24967201
1147058
112232339
(4832649)
72122122
-13.76
73.65
0.55
-252.03
-66.36
10
100
0
-100
Net Block
Unsecured
Deferred
Net Current
Liabilities
Cash and Bank
Inventories
Decommissione
-200
Capital
300
200
percentage
-300
Net Current
Liabilities
Cash and Bank
Inventories
Decommissione
Net Block
Unsecured
Deferred
Capital

1. The Comparative balance sheet has two columns for the data of original balance sheet.
3. The Fourth column may be added for giving percentages of increase or decrease

The comparative balance sheet of the company reveals that during 2011 there has
been decrease in fixed assets of Rs. 35277568 lakhs, i.e. 4.87% while long-term
liabilities to outsiders have increased Rs. 72122122 lakhs, i.e. 10.00%. There has also
been increase of Rs. 70965248 lakhs, i.e. 16.34% in reserve and surplus of the
company. Thus, the company has used long-term resources to finance additional
working capital.
The current assets have increased by Rs. 113379397 lakhs, i.e. 69.79%. There has
been increased in cash by Rs. 81177907 lakhs, i.e. 35.12%.
There has been decreased in inventories amounting to 7095314 lakhs, i.e.23.24% and
there has also been decreased liabilities amounting to 23820145 lakhs, i.e. 13.37%.
which shows that the company is going on profit.
3.7
Common Sheet of N.D.M.P.M.C.U LTD.

Table 3.6
2015
1250000
7562825
0
338887
0
131053
5736800
20000
322006
546551
4055158
137687
744441
2346109
3459734
66231
Capital
Reserve and Surplus
Unsecured Loans
Secured Loans
Fixed Assets
Investment
Inventories
Sundry Debtors
Cash and Bank Balances
Loan and Andvances
Current Liabilities
Net Current Assets
Inter/Intra Circle Remittance
2014
1250000
7444802
0
554366
0
124605
6056694
20000
242847
558066
3745296
114148
714431
2182777
3192011
105068
2013
1250000
6825651
0
728393
0
170400
6408243
20000
278922
630205
3057948
63627
923207
2500547
2453362
92839
2012
1250000
6027911
0
822089
0
304402
6642178
20000
224535
663703
2193113
14368
752160
2200157
1647722
94502
2011
125000000
505183259
7200000
75376842
0
48033540
688644158
2000000
23437496
39794505
115574751
0
97040202
208146824
67700130
2449353
800000000
700000000
2010
0
-100000000
Figure 3.11: Common Chart
Net Current
2011
100000000
Loan and
2012
200000000
Cash and
300000000
Inventories
2013
Fixed
2014
400000000
Secured
500000000
Deferred
2015
Capital
600000000
2010
125000000
434218011
7200000
78864381
5100000
38289125
723921726
2000000
30532810
29451975
34396844
0
68085928
206999766
-44532209
7282002
Chapter
4 Conclusion and Suggestions
4.1
Finding:
According to my survey and calculating the important points are:

Financial position of N.D.M.P.M.C.U LTD. is not much good.
The comparative balance sheet of N.D.M.P.M.C.U LTD. reveals that after year 2011,
decrease the capital in year 2012 and same capital continue to year 2015 yet.
Financial position of N.D.M.P.M.C.U LTD. was much better in 2011 compression to all
year.
There are not good coordination in departments of N.D.M.P.M.C.U LTD. .
Working process of N.D.M.P.M.C.U LTD. take long time.

Handwriting work is more than computerizing work.
Qualification of employees is not match his posts.
Salary of employees is much better.
At present time, investment of N.D.M.P.M.C.U LTD. is less than compression year 2011.
4.2 Analysis:
From the calculation it was found that amongst year 2011 to 2015,
In year 2011, financial position of N.D.M.P.M.C.U LTD. is good based on year 2010.
In year 2013, financial position of N.D.M.P.M.C.U LTD. is not good based on year
2010, because in year 2012, capital has decreased and also investment.
In year 2013, financial condition of N.D.M.P.M.C.U LTD. is improved based on year
2012 not year 2010.
In year 2014, financial position of N.D.M.P.M.C.U LTD. is satisfactory based on year
2012 and 2013 but not improved based on year 2010 and 2011.
In year 2015, financial position of N.D.M.P.M.C.U LTD. is good based on year 2012 ,
2013 and 201 even than is not improved based on year 2010 and 2011.
In year 2011, inventories are decreased based on year 2010. which, we can see in graph.
This is better. But in year 2015, inventories are increased based on year 2012 , 2013 , 2014.
this is not good of N.D.M.P.M.C.U LTD. because increase in inventories than decrease in
demand.
4.3 Conclusion:
After overhauling the five years balance sheet of N.D.M.P.M.C.U LTD. and all condition, I
have to reached this conclusion that;
There was much good financial position of N.D.M.P.M.C.U LTD. in year 2011
comparison 2010 and present year.
There was more investment in year 2011 because of this, year 2011 have earn more profit
based on year 2010 and compare the present year. If there are more investment than financial
position of N.D.M.P.M.C.U LTD. may be improved and earn more profit at present time.
Working process of N.D.M.P.M.C.U LTD. is take very long time because of which,
N.D.M.P.M.C.U LTD. Is not being able to progress. So improved the working process.
N.D.M.P.M.C.U LTD. are facing the capital problem because of which financial
position of N.D.M.P.M.C.U LTD. are affected.
N.D.M.P.M.C.U LTD. are paying more taxes. Because of paying more taxes,
financial position of N.D.M.P.M.C.U LTD. are affected.
Overall at present time, financial position of N.D.M.P.M.C.U LTD. is not good based on
year 2010 2011.
There was earned more profit in year 2011 but year by year N.D.M.P.M.C.U LTD. is on
loss.
4.5
Suggestion:
The study has provided with the useful data from the respondents. There has a lot to
be recommended. Following are the recommendations:
There should be increase in investment of N.D.M.P.M.C.U LTD. . So that could be
earned more profit. Because, if investment will be high than profit will be earned high.
There should be improved the working process of N.D.M.P.M.C.U LTD. . Because
working process of N.D.M.P.M.C.U LTD. is take more time.
Departments of N.D.M.P.M.C.U LTD. do not have good coordination. So there should
be good coordination in departments of N.D.M.P.M.C.U LTD. . If coordination will have
good in departments, than there will not has to face any problem in proper work.
Time to time, there should be provided training of employee. So that they could take
information about the new technology of them proper working process.
There should be good communication between each departments of N.D.M.P.M.C.U LTD. .
There should be computerized work in N.D.M.P.M.C.U LTD. . But also at this time,
paper work are continue to see in many department.
Appendix
BALANCE SHEET AS AT 31ST MARCH 2015.

SCHEDULE
2014
2015

SCHEDULE
2012
2013

SCHEDULE
2010
2011
Bibliography
Bibliography
Management Accounting Shashi K. Gupta & R.K. Sharma
Financial Management I.M. Pandey.
Research Paper: Financial Analysis Hampton John J. Financial Decision
Making, Second Ed p.75
Web sites
o www.google.com
Annual Reports of N.D.M.P.M.C.U.LTD. 2011-2015.

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Introduction of company

Andhra Pradesh District Dairy Co-operative Farmers at a glance:

Milk Products factories

Milk producers Associations

Dairy development activities in Nellore district

Name of the Unit

per Present Per Day

Peak on any date of the year

The N.D.M.P.M.C.U ltd.

Registered office & address: Nellore dairy

Chairman& key persons: c. Sudheer Reddy

Products of the company

: Whole milk Products of the toned Milk 3% fat 8.5

Branches Of the Company

6. Bulk Milk cooling centers-Adurupalli

Contains 3.0% fat and 8.5% SNF

Comparative Study Between Years 2015-2014:

Interpretation of Comparative Balance Sheet

Huge Resources (financial & technical pool)

Huge customer base

Most trusted brand

Easy deployment of new services

Poor marketing strategy

Bureaucratic organizational set up

Inflexibility in mindset (DOT period legacies)

Limited number of value added services

Poor franchisee network

Legacy of poor service image

Huge and aged manpower

Lack of strategic alliances

unproductive rural assets, social obligations, political interference,

Tremendous market growing at 20 lac customers per month

Can capitalize on public sector image to grab governments

Diversification of business to turn-key projects

Leveraging the brand image to source funds

Fuller utilization of slack resources

Broaden market expected

Competition from private operators

Keeping pace with fast technological changes

Private operators demand for sharing last mile

Decreasing per line revenues due to competitive pricing

Research Design & Methodology:

Sampling Technique Used:

Selection of Sample Size: Survey of each department.

Sources of Data Collection:

Statistical Tools Used

Chapter 3 Calculation of Data

and profitability of a sound dividend policy.

a. Horizontal Analysis: Horizontal analysis refers to the comparison of

Methods or Devices of Financial Analysis

Comparative Balance Sheet of N.D.M.P.M.C.U LTD. 2015 & 2014

Comparative Balance Sheet In Rs.

Cash and Bank

Figure 3.1: Comparative Balance Sheet Chart

Comparative Balance Sheet In %

Cash and Bank

Procedure of Comparative Balance Sheet

Comparative Balance Sheet of N.D.M.P.M.C.U LTD. 2014 & 2013

Compararive Balance Sheet In Rs.

Cash and Bank

Figure 3.3: Comparative Balance Sheet Chart

Comparative Balance Sheet In %

Cash and Bank

Procedure of Comparative Balance Sheet