Escolar Documentos
Profissional Documentos
Cultura Documentos
3.1 FINDINGS 57
3.2 SUGGESTIONS 58
3.3 CONCLUSION 59
APPENDIX
BIBLIOGRAPHY
LIST OF TABLES
2.3.1 45
BREAK EVEN SALES
2.3.2 MARGIN OF SAFETY 49
2.4.1 45
BREAK EVEN SALES
2.4.2 MARGIN OF SAFETY 49
The study “Cost Volume Profit Analysis ” taken of AACHI MASALA SPICES
AND FOOD PRODUCTS PVT. LTD . The primary objective of the study is to study the
Cost Volume Profit Analysis of AACHI MASALA SPICES AND FOOD PRODUCTS .
This is an analytical research where secondary data are used for analysis for 2013 -2017.
Financial statements are taken after an in depth study on review of literature. For the study
five years financial statements are taken . The tools used in the study,
This study also helps to understand the sales, profit and operating leverage of
AACHI MASALA SP ICES AND FOOD PRODUCTS PVT.LTD .
1.1 INTRODUCTION
Cost Volume Profit analysis shows the relationship among the various
ingredients of profit planning, namely, unit sale price, variable cost, sales volume, sales
mix and the fixed cost. Cost Volume Profit (CVP) analysis general y defined as a planning
tool by which managers can evaluate the effect of a change(s) in price, volume, variable
cost or fixed cost on profit. Additionally, CVP analysis is the basis for understanding
contribution margin pricing, related short run decisions, target costing and transfer pricing.
In the marginal costing varies directly with the volume of production or output . In net
effects, if volume is changed, variable cost varies as per the changes in volume . In this
case, selling price remains fixed, fixed remains fixed and then there is a change in profit .
PRIMARY OBJECTIVE
To study the Cost Volume Profit analysis and its impact on AACHI
MASALA SPICES AND FOOD PRODUCTS Pvt.Ltd.
SECONDARY OBJECTIVE
To find out the break -even - point for the products of AACHI MASALA
SPICES AND FOOD PRODUCTS Pvt.Ltd.
To understand the level of sales needed to achieve a desired profit
To identify the margin of safety and its significance in AACHI MASALA SPICES
To analyze the degree of operating leverage of AACHI MASALA SPICES
AND FOOD PRODUCTS Pvt.Ltd.
1.1.4 SCOPE OF THE STUDY
India is the world's second largest producer of food next to China, and has
the potential of being the biggest with the food and agricultural sector. The total food
production in India is likely to double in the next ten years and there is an opportunity for
large investments in food and food processing technologies, skills and equipment,
especially in areas of Canning, Dairy and Food Processing, Specialty Processing,
Packaging, Frozen Food/Refrigeration and Thermo Processing. Fruits & Vegetables,
Fisheries, Milk & Milk Products, Meat & Poultry, Packaged/Convenience Foods,
Alcoholic Beverages & Soft Drinks and Grains are important sub - sectors of the food
processing industry. Health food and health food supplements are another rapidly rising
segment of this industry which is gaining vast popularity amongst the health conscious.
India is one of the world’s major food producers but accounts for less than
1.5 per cent of international food trade . This indicates vast scope for both investors and
exporters. Food exports in 1998 stood at US $5.8 billion whereas the world total was US
$438 billion. The Indian food industries sales turnover is Rs 140,000crore (1crore = 10
million) annually as at the start of year 2000.
The industry has the highest number of plants approved by the US Food and
Drug Administration (FDA) outside the USA
India's food processing sector covers fruit and vegetables; meat and poultry; milk and milk
products, alcoholic beverages, fisheries, plantation, grain processing and other consumer
product groups like confectionery, chocolates and cocoa products, Soya - based products,
mineral water, high protein foods etc . We cover an exhaustive database of an array of
suppliers, manufacturers, exporters and importers widely dealing in sectors like the - Food
Industry, Dairy processing, Indian beverage industry etc. We also cover sectors like dairy
plants, canning, bottling plants, packaging industries, process machinery etc.
India is the second largest producer of food and holds the potential to be the
biggest on global food and agriculture canvas, according to a Corporate Catalyst India
(CCI) survey. The food industry in India comprises the food production industry and the
food processing industry. The food processing industry is one of the largest in India – it is
ranked fifth in terms of production, consumption, export and expected growth.
Consumer food industry mainly consists of ready to eat and ready to cook
products, salted snacks, chips, pasta products, cocoa based products, bakery products,
biscuits, soft drinks etc.
There are around 60,000 bakeries, several pasta food units and 20,000
traditional food units and in India. The bakery industry is among the few processed foods
segments whose production has been increasing consistently in the country in the last few
years. Products of bakery include bread, biscuits, pastries, cakes, buns, Rusk etc. This
activity is mostly concentrated in the unorganized sector. Bread and biscuits constitute the
largest segment of consumer foods with annual production of around 4.00 million tones.
Bread manufacturing is reserved for the small -scale sector. Out of the total production of
bread, 40% is produced in the organized sector and remaining 60% in the unorganized
sector, in the production of biscuits the share of unorganized sector is about 80%.
Indian Food Processing Industry
Size of the Industry
Largest producer of milk in the world - 105 million tones per annum.
India is the largest in the livestock population about 485 million tones per annum.
It is second largest producer of fruits & vegetables which accounts for 150 million
tons per annum.
Geographical distribution
Delhi, Mumbai, Kolkata, Gujarat, Hyderabad, Pune, all the major cities in the
country
Output per annum
The Indian food industry sales turnover is Rs 140,000crore annually as at the start
of year 2000.
Percentage in world market
The value of the Indian food industry has increased from Rs. 3 .09 trillion in 1993 -
94 to Rs. 3.99 trillion in 2000 -01.
Market Capitalization
The country’s GDP growth rate had increase from 3 .5 % in 2002 -03 to 9 % in
2006 - 07
The Indian agriculture sector has come a long way since the time of independence.
With the emergence of green revolution, India agricultural Industries have
transformed itself from a country of shortages to a land of surpluses. With the rapid
growth of the Indian economy, a shift is also being seen in the consumption pattern
of the country, from cereals to m ore varied and nutritious diet of fruit and
vegetables, milk, fish, meat and poultry products. All these efforts have resulted in
the development of a sunrise industry namely the Food Processing Industries.
In Jul y 1988, The Ministry of Food Processing Industries (MFPI) was set up to
give an impetus to development of food processing sector in India. The Ministry
formulates and implements the policies & plans for the food processing industries
according to the overall national priorities and objectives. It acts as a catalyst for
bringing in greater investment into the sector while guiding and helping the industry
and even creating a conducive environment for healthy growth of the food
processing industry.
Strengths
Weaknesses
Opportunities
Large crop and material base offering a vast potential for agro processing activities
Setting of SEZ/AEZ and food parks for providing added incentive to develop
Greenfield projects
Rising income levels and changing consumption patterns
Favorable demographic profile and changing lifestyles
Integration of development in contemporary technologies such as electronics,
material science, bio -technology etc. offer vast scope for rapid improvement and
progress
Opening of global markets
THREATS
Largest producer of milk in the world (105 million tones per annum).
Largest livestock population (485 million tones per annum).
Second largest producer of fruits & vegetables (150 million tones per annum).
Third largest producer of food grain (230 million tones per annum).
Third largest producer of fish (7 million tones per annum).
52% cultivable land compared to 11% world average.
All 15 major climates in the world exist in India.
46 out of 60 soil types exist in India.
20 agric - climatic region
1.2.2 COMPANY PROFILE
Aachi Group was found in the year 1995 by Mr. A.D.Padmasingh Isaac, a first generation
entrepreneur with BBA and hailing from Nazareth in Tirunelveli District of Tamil Nadu.
Undoubtedly, Aachi has come to rule the kitchen today!
The Aachi Group comprises of the following companies.
Aachi Masala Foods Private Ltd
Aachi Spices & Foods Pvt Ltd
Aachi Special Foods Pvt Ltd
Aachi has become a household name because of its excellent quality products catering to the
common people. The product range is so wide that no household can afford to miss Aachi
products from its kitchen.
The success of Aachi can be attributed to the following: Excellent Quality products, Strong
resources & Marketing Network, Continuous market analysis and Survey of customer needs,
Standardization & upgradation of products as per international standards and Excellent Brand
Recall.
Aachi Group’s turnover has been increasing at CAGR of 30% over the last three years which is
higher than that of the national average of 15% for Food Processing Industries. AACHI’s
products reach the consumers through 4000 Agents and 12 Lakh Retailers. The product range is
classified to be 8 divisions for easy distribution. It is expected to strive the magical figure of
Rs.1200 Crores in turnover by March 2017!
“Aachi products are now available in USA, Canada, U.K, Belgium, Holland, France, Denmark,
Sweden, Switzerland, Germany, Australia, New Zealand, Republic of South Africa, D.R. Congo,
Kenya, Tanzania, Papua New Guinea, Mozambique, Mauritius, Seychelles, United Arab
Emirates, Qatar, Kuwait, Kingdom of Saudi Arabia, Lebanon, Sri Lanka, Maldives, Singapore,
Malaysia, Thailand, Korea and Japan.“
Founder
MR. A. D. PADMASINGH ISAAC
CHAIRMAN & MANAGING DIRECTOR, AACHI GROUP OF COMPANIES, CHENNAI
A range of blended masalas adding an extraordinary flavour and taste to a million tongues is
what the (AACHI) MASALA KING crowns every ‘Queen of the Kitchen’ with. Aachi has made
a revolution in round masalas into tasty food. Yes, Mr.Isaac has made the lives of women easy
in the kitchen and brought ripples of happiness and satisfaction to all in the family.
The company, which has produced some items in curry powder at first, is
now producing and distributing a wide range of products including the pickles. The
amiable labour management relationship has helped to grow a dedicated labour culture in
the company. The growth of our products depends by its good quality.
The recognition from the public is the best achievement of our firm . The
Supernova has well established itself in the market due to its high quality. The inspiration
from this recognition has leaded the company in the production of other products also. We
can assure that we are vowed to care in obtaining more and more good qualities for our
products. The important products of the company are the following: -
Cut mango pickle
Gooseberry pickle
Mixed pickle
Ginger pickle
Bitter guard pickle
Green chill y pickle
Mango curry
Sambar powder
Chicken masala
Chill y powder
Turmeric powder
Meat masala
Pepper powder
Fish masala
Tender mango pickle
DEPARTMENT PROFILE
Supernova has the effort of a lot of efficient departments behind its
success in the food processing field. The main departments of Supernova are:
PRODUCTION DEPARTMENT
FINANCE DEPARTMENT
MARKETING DEPARTMENT
HUMAN RESOURCE DEPARTMENT
Advertisement copy includes broadly elements verbal and visual which are to be included
in the finished advertisement copy. Its main purpose is to attract attention, arose curiosity
and these by further reading. It presents message or appeal in gist at glance.
The main objective of the company through advertising is the following: -
To support personnel selling
For improving dealer relation
To outer a new graphic market
To reach product to the remote people
For the introduction of new product into the market
For building good will for the company
1.2.4 ORGANISATION STRUCTURE
MANAGING DIRECTOR
DIRECTOR
OFFICERS FOREMAN
WORKERS WORKERS
1.3. REVIEW OF LITERATURE
Cost -volume -profit (CVP) analysis as an important tool that provides the
management with useful information for managerial planning and decision -making. Profit
of a business firm is the results of interaction of many factors. Such factors influencing the
level of profits, the following are considered the key factors:
1. Selling price
2. Volume of sales
3. Variable costs on a per unit basis
4. Total fixed cost and
5. Sales mix
CVP analysis focuses on prices, revenues, volume, costs, profits and sales
mix and on the inter-relationship between them during the short-run. The short-run is
generally considered a period of one year or less than one year during which the production
of a business enterprise cannot be increased and is limited to the available current operating
capacity of the enterprise . During the short - run, the capacity of the plant and machinery
cannot be increased (this is possible during the long -term only) and therefore, production
is limited in terms of available plant facilities. Similarly, it takes time to reduce the
capacity of plant and machinery and therefore, a business enterprise should operate during
the short -run relatively on a constant quantity of production resources. Besides, no
changes in cost and prices data can be generally made during the short -term as they might
have already been determined. During the short-run, however, some resources like
materials and unskilled labour can be increased at a short notice. Thus during the short -
inn, sales volume and short-run profitability can be the only vital area which may be found
uncertain. CVP analysis herein reveals the effect of changes in sales volume on the level of
profits. CVP analysis, in this way, is an integral part of financial planning and managerial
decision - making.
In CVP analysis, all expenses are classified into fixed and variable. Semi -
Variable expenses have to be divided into their fixed and variable elements. Total variable
costs are considered to be those costs that vary as the production volume changes. In a
factory, production volume is considered to be the number of units produced, but in a
governmental organization with no assembly process, the units produced might refer.
These steps are important prerequisites to any CVP analysis and a proper
understanding of them is essential for reliable conclusions. Based upon a knowledge of
fixed and variable cost elements and CVP analysis, it is possible to determine break -even
sales volume, to compute the sales needed to generate desired profits and to supply answers
to man y questions that arise It the course of management planning and decision - making.
Contribution margin is the excess of sales revenue over variable costs and
expenses. Under contribution margin concept, variable costs include all variable costs, i.e.
variable production costs and variable selling and administrative expenses, if any. From the
contribution margin, fixed costs and expenses are deducted giving finally operating income
or loss Contribution margin is thus used to recover/cover fixed costs. Once the fixed costs
are covered, any remaining contribution margin adds directly to the operating income of
the firm.
The use of P/V ratio in specific analysis is based on the assumption that
except sales volume, other factors such as the unit selling price, percentage of variable cost
to sales, amount of fixed costs remain constant. If there are changes in any of these factors,
the effect of such change should be considered in making the analysis involving the P/V
ratio).
UNIT CONTRIBUTION MARGIN
Unit contribution margin or contribution margin on per unit basis is equally
useful as it also indicates the profit potential of a product or activity. The unit contribution
margin is the money available from sale of each unit to cover fixed costs and provide
profits to a firm.
While the P/V ratio is most useful when the increase or decrease in sales
volume is measured in terms of Rupees, the unit contribution margin is most useful when
increase or decrease m sales volume is measured in sales unit (quantities). If a business
firm has been able to cover fixed costs, the net income of t he firm will increase by unit
contribution margin multiplied by additional sales units.
BREAK-EVEN CHARTS
A break -even chart is a graphical representation of the relationships between costs,
revenues and profits. It is developed by plotting the total cost curve and total revenue curve
on a piece of graph paper.
Equation for Break -even point in Sales Rupees: One method of computing
break -even in sales rupees is to compute break -even in units and multiply the number of
units by the sales price per unit. However, sometimes it may not be convenient or efficient
because of the way the data is given to first compute the break - even point in units. The
break - even point in sales rupees equal to fixed costs divided by the contribution margin
ratio.
Fixed costs
Break-even point in sales Rupees =
Contribution margin ratio
1. This is the same as assuming the variable expense per unit is constant. The total fixed
expenses, within a relevant range of volume, do not change as sales volume the
following are the important assumptions in break - even analysis and break - even
charts.
2. The total revenues of the enterprise change in direct proportion to changes in unit sales
volume. This is the same as assuming that the average selling price is constant.
3. All costs are classified as fixed and variables.
4. It is assumed that all other costs, such as mixed costs, can be broken in to fixed and
variable cost elements.
5. The total expenses can be separated into variable expenses and fixed expenses per year.
6. The total variable expenses vary in direct proportion to changes in sales volume
changes.
7. For a multi -product firm, the sales mix remain constant for all volume levels under
consideration.
8. Production volume and sales volume are equal; in other words, inventory changes do no
effect profit.
9. Inventory quantities remain unchanged during the year. The number of units in
beginning works -in -progress and finished goods equal to the number of units in these
ending inventories.
ADVANTAGES OF BREAK-EVEN ANALYSIS
1. Break - even analysis provides a useful tool in demonstrating the relationship and
interaction of cost, volume, and profit. If properly utilized, it aids in establishing realistic
profit objectives and operating budgets.
4. Management is often confronted with the decision to increase sales volume with an
optimistic view towards enhancing profit. Profit enhancing is a possibility, provided costs
are controlled within prescribed limits. The break - even technique can be an important tool
in establishing expenditure constraints and control by adequate supervision.
5. An important influence on profit is the product sales mix with variable gross
margins. The break even chart can highlight problem areas requiring corrective
management action.
DISADVANTAGES OF BREAK-EVEN ANALYSIS
1. Break - even analysis is not a remedy for all problems faced by a business firm. It
cannot be used usefully without a thorough understanding of its concept and limitations.
2. The break -even chart generally reflects a number of estimates and judgments, and
the resultant data developed and their implication can be misleading. For example,
measuring costs and sales volume at a particular output level may be an inaccurate method
of assessment, particularly when the volume approaches the break - even point, which can
change depending on operating circumstances.
3. Usually, the break - even is developed at a point that represents a static position.
Changes in relationship factors should be correctly and logically reflected in a revised chart
or a series of charts.
4. The improper understanding and usage of the charts can lead to inadequate
decision making, inaccurate planning assumptions and possibly detrimental control actions.
2.1 RESERCH METHODOLOGY
The Break even analysis indicates at what level cost and revenue an in
equilibrium. It is a simple and easily understandable method of presenting to management
the effect of changes in volume on profit detailed analysis of breakeven data will reveal to
management the alternative decision which reduce or increase cost and which increase
sales and income. It is a device which portrays the effects of ant type of future planning by
evaluating alternative course of action.
BREAK EVEN POINT
Fixed cost
Breakeven Sales = *100
Total Contribution
MARGIN OF SAFETY
This is the difference between the sales and the breakeven point. If the
distance is relatively short it indicates that a small drop in production or sales will reduces
profit considerably. If the distance is long it means that the business can still making profit
even after a serious drop in production. It is important that there should be a reasonable
margin of safety otherwise reduces the level of production may prove dangerous.
Margin of safety = Sales- Break Even Sales
Operating leverage is determined by the firm's sales revenue and its earnings before
interest and tax (EBIT). The earnings before interest and taxes are called as operating profit
(EBIT). While financial leverage can be quite significant for the earning available to
ordinary shareholders.
Operating Leverage = Contribution
EBIT
2.1.2 LIMITATIONS
For this analysis last five years financial statement alone taken.
This study is confines only with cost volume profit analysis of AACHI MASALA
Fixed Cost
Break even sales (in Rupees ) = PV Ratio
Particulars Rs.
Sales : 41,760,979.59
Fixed cost:
Selling and other expenses : 6,898,217.18
Variable Cost:
Consumption of Materials : 30,472,943.34
Contribution:
Sales : 41,760,979.59
(-) Variable Cost : 30,472,943.34
Contribution : 11,288,036.25
The Break Even Sales for the year MARCH-2013 is Rs. 25,520,596.30
BREAK EVEN POINT OF MARCH-2014:
Fixed Cost
Break Even Sales (in Rupees) = PV Ratio
Particulars Rs.
Sales : 57,351,783.26
Fixed cost:
Selling and other expenses : 8,187,873.13
Fixed Cost : 8,187,873.13
Variable Cost:
Consumption of Materials : 40,748,969.09
Variable Cost : 40,748,969.09
Contribution:
Sales : 57,351,783.26
(-) Variable Cost : 40,748,969.09
Contribution : 16,602,814.17
The Break Even Sales for the year MARCH-2014 is Rs. 28,292,581.65
BREAK EVEN POINT OF MARCH-2015:
Fixed Cost
Break even sales (in Rupees ) = PV Ratio
Particulars Rs.
Sales : 76,839,874.88
Fixed cost:
Selling and other expenses : 12,927,325.71
Fixed cost : 12,927,325.71
Variable Cost:
Consumption of Materials : 57,391,254.65
Variable Cost : 57,391,254.65
Contribution:
Sales : 76,839,874.88
(-) Variable Cost : 57,391,254.65
Contribution : 19,448,620.23
25.31%
The Break Even Sales for the year MARCH-2015 is Rs. 51,075,960.92
BREAK EVEN POINT OF MARCH-2016:
Fixed Cost
Break even sales (in Rupees) = PV Ratio
Particulars Rs.
Sales : 97,619,705.02
Fixed cost:
Selling and other expenses : 18,216,410.50
Fixed Cost : 18,216,410.50
Variable Cost:
Consumption of Materials : 70,204,027.46
Variable Cost : 70,204,027.46
Contribution:
Sales : 97,619,705.02
(-) Variable Cost : 70,204,027.46
Contribution : 27,415,677.56
The Break Even Sales for the year MARCH-2016 is Rs. 64,873,256.76
BREAK EVEN POINT OF MARCH-2017:
Fixed Cost
Break even sales (in Rupees) = PV Ratio
Particulars Rs.
Sales : 10,99,99,623.00
Fixed cost:
Selling and other expenses : 16,153,609.94
Fixed Cost : 16,153,609.94
Variable Cost:
Consumption of Materials : 86,209,960.28
Variable Cost : 86,209,960.28
Contribution:
Sales : 10,99,99,623.00
(-) Variable Cost : 86,209,960.28
Contribution : 23,789,662.28
The Break Even Sales for the year MARCH-2017 is Rs. 74,716,049.67
TABLE NO.2.3.1
BREAK EVEN POINT
S.NO YEAR BREAK EVEVN SALES
1 2013 65562502552
6 2014 62606521525
5 2015 51225022506
7 2016 27225652522
5 2017 27212270522
FIGURE NO.2.4.1
BREAK EVEN SALES
INTERPRETATION
Break Even Point is increasing year by year up to 74716049. 67
The variable cost is also increasing.
So the sales volume is rapid y increasing.
Thus the volume of profit is also higher.
MARGIN OF SAFETY
= 16,240,383.29
*100
41,760,979.59
=38.88 %
= 57,351,783.26-28,292,581.65
= 29,059,201.61
= 29,059,201.61
*100
57,351,783.26
=50.66 %
= 25763913.96
*100
76,839,874.88
=35.52 %
A
MARGIN OF SAFETY MARCH-2016
= 97,619,705.02-64,873,256.76
= 32,746,448.26
= 32,746,448.26
*100
97,619,705.02
=33.54 %
= 35,283,573.33
= 35,283,573.33
*100
10, 99, 99,623.00
=30.07 %
1 2013 38.88
2 2014 50.66
3 2015 35.52
4 2016 33.54
5 2017 30.07
FIGURE NO.2.4.2
MARGIN OF SAFETY
INTERPRETATION
PV Ratio of March-2013:
41,760,979.59
PV Ratio : 27.03%
PV Ratio of March-2014:
57,351,783.26
PV Ratio : 28.94%
PV Ratio of March-2015:
76,839,874.88
PV Ratio : 25.31%
97,619,705.02
PV Ratio : 28.08%
PV Ratio of March-2017:
10,99,623.00
PV Ratio : 21.62%
1 2013 62525
6 2014 62507
5 2015 65551
7 2016 62522
5 2017 61526
FIGURE NO.2.4.3
PROFIT VOLUME RATIO
INTERPRETATION
o The volume of profit is increasing in the year 2014 to 28. 94% and decreased in
the year 2015 to 25 .31% again it increased to 28.08%.
OPERATING LEVERAGE
= 11,288,036.25
344,219.62
= 32.79%
= 16,602,819.17
352,590.35
= 47.08%
OPERATING LEVERAGE
= 19,448,620.23
676,285.83
= 28.75%
= 27,415,677.56
1,762,473.25
= 15.55%
OPERATING LEVERAGE
= 23,789,662.28
1,650,143.75
= 14.41%
1 2013 32.79%
2 2014 47.08%
3 2015 28.75%
4 2016 15.55%
5 2017 14.41%
FIGURE NO.2.4.4
OPERATING LEVERAGE
INTERPRETATION
It is indicated that from the financial statements 41,760,975. 59, 57,315,783 .26,
76,839,874.88, 97,619,705 .02 and 10,99,99,623 .00 are the net sales for the year 2013,
2014, 2015, 2016 and 2017 respectively.
It is found that 221,731.62, 236,098.35, 443,976. 83, 1,208,032 .25 and 1,104,989. 97 are
the net profit for the year 2013, 2014, 2015, 2016 and 2017 respectively.
It is inferred that from the above table 27.03%, 28. 94%, 25.31%, 28.08% and 21 .62%
are the Profit Volume ratio for the years of 2013, 2014, 2015, 2016 and 2017
respectively.
It is found that 32 .79%, 47.08%, 28. 75%, 15.55% and 14.41% are the operating
leverage for the years of 2013, 2014, 2015, 2016 and 2017 respectively.
3.2 SUGGESTIONS
The level of breakeven point is increased year by year from the analysis. The company is
not able to manage the breakeven point of the company. So it should take necessary steps
in cost of sales.
The level of profit volume ratio is in a variable manner, there is increase and decrease in
profit volume ration year by year. So the company should make high sales with reduced
cost to improve profit.
The fixed costs need to be reduced and cost control techniques can be adopted
which will increase the earnings.
The company can improve capital turnover in the way of sales at reasonable price.
The company can take necessary steps to invest certain amount into working capital. It will
very useful to maximize the profit .
Comparing the current assets and current liabilities there was a increase in the current asset
and also the in cu rrent liabilities, the company should manage to improve current asset and
decrease in liabilit y by increasing sales and high profit .
3.3 CONCLUSION
The study makes evident that the overall performance of the company with
regard to profitability is average but still, the performance of the company can be
maximized through careful measures of cost control which will enhance the operating
efficiency of the company. The company can reduce their costs, thereby the sales get
increase due to their qu alit y and also the performance will be improved in future.
The financial statements shows a sign of sickness in future, the company has
to undergo an improvements in several areas of management in the near future, the
company has to take some precautions t o prevent the sickness, and if the company applies
recommendations of this study towards its management, the company will be back on to a
higher profitable position within short time.