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Heena Khatri
Heena Khatri

The document provides financial information for Saras Dairy (AZDUSS Ltd.) in Ajmer, India for the fiscal years 2008-2009. [1] It includes the balance sheet, profit and loss statement, and calculations of key financial ratios to analyze the company's profitability, assets, liquidity, solvency, and efficiency. [2] The ratios indicate steady growth as profit margin increased from 0.72% to 1.06%, return on assets grew from 0.4689% to 0.838%, and current ratio declined slightly from 3.92 to 3.11 over the period. [3] The analysis provides insights into the financial performance and position of Saras Dairy during the reported

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CORPORATE FINANCE PROJECT Comparative Analysis of Saras Dairy, Ajmer Submitted to: Section ¨C K Mrs. Shegorika Mam Submitted by: Heena Sanju Bharti
ACKNOWLEDGEMENT ¡° The pleasure that follows the successfull completion of an assingment would remain incomplete without a word of gratitude for the people and without whose cooperation the achievement would remain a distant dream. It is not a mere formality to place a record the tireless efforts, ceaseless cooperation, constant guidance and encouragement of the people closely associated with the assingment but a distinct necessity for the authencity and readibility of the project.¡± The management theories learnt in a year are brought into practice. We have tried to make best use of their opportunity. The work bears the imprint of many persons under whom we did this project. We are thankful to Mrs. Shegorika Mam, for her scholarly guidance, advice and encouragement and also for providing neseccary facilities to carry out the dissertion in prescribesd period. Finally, We are indebted to our family, friends and those people who had helped us in completing this project.
INTRODUCTION Ajmer Zila Dugdh Utpadak Sahakari Sangh Ltd. Ajmer is a cooperative registered organisation registered under Cooperative act with Registrar of Cooperative, Govt. of Rajasthan. AZDUSS Ltd. Ajmer was established in the year 1972 keeping in mind the interest of the cattle rearers to implement dairy development activities in the Ajmer district, under Operation Flood Program. The main objective of organisation are: 1. To eliminate the role of intermediaries and give cattle rearer's good value for the milk and prevent them from exploitation. 2. To help in financial development of the villages and cattle rearers. 3. To help in the social and financial development of the rural milk producers. 4. To increase the milk producing capacity of the cattle. 5. To make available pure, healthy and high quality milk products to constomers. AZDUSS recieves direction and assistance from Central Govt. , State Govt., RCDF Ltd. Jaipur and National Development Board, Anand from time to time. Presently the dairy plant has a capacity to process 1.50 lakh liter milk; prepare 10 M.T. milk powder and 9.0 M.T. ghee per day. Besides these the plant also prepares chhach, lassi, dahi, shrikhand, paneer and other milk products. The plant has a capacity to pack 2.50 lakh liter milk per day. The Ajmer plant of saras (AZDUSS Ltd. Ajmer) has been certified under internationally accepted quality and food. safety management systems in accordance with ISO 9001-2000 with HACCP.
Two categories of products produced by AZDUSS, Ajmer are: 1. Short term products: ? Milk Flavoured, Standard, Gold, Double Tond, Tond ? Chach- plain, chach- namkeen ? Lassi ? Curd 2. Long term products: ? Gulab- jammun ? Ghee ? Ras- gullah ? Sri- Khandh ? Panner It's competitors are: ? Amul ? Relaince dairy It is a government organised company which works for the welfare of rural people. It covers 65% market share in all over Ajmer district.
AZDUSS, Ajmer Balance Sheet ending March 31,08,09
2008 2009 Sources of funds Shareholder's funds Share capital 1255477 1405477 Reserves and 10330723 11586200 11360807 12766284 Surplus Loan Funds Secured loans 15213175 13672040 Unsecured loans 6963200 22176375 7413353 21175393 TOTAL 33762575 33941677 Application of funds Fixed Assets Gross Block 22784260 25837493 Less Depreciation 11180547 12176557 Net Block 11603713 13660936 Capital WIP and 1565027 13168740 1872298 15533234 Advance against Capital Expentidure Investments 4387009 3214903 Current Assets, Loans and Advances Inventories 2811812 2664052 Sundry debtors 3372115 5073006
Cash and Bank 36446 39956 Balances Loans and Advances 15273303 21493676 14349296 22126310 Less Current Liabilities and Provisions Liabilities 5391109 7002059 Provisions 89664 110408 5480773 7112467 Net Current Assets 16012903 15013843 Miscellaneous 193923 179697 Expenditure Total 33762575 33941677
Profit and Loss Account- of AZDUSS, Ajmer for the Year ended March 31
2008(in cr) 2009(in cr) Income Sales and services 21952918 26677600 Other income 982022 400193 (schedule 12) 22934940 27117793 Expenditure Purchase of finished 3276680 7370452 goods(Net) Manufacturing and 16880780 17095192 other expenses Interest and 2144683 1806772 financial charges (Schedule- 14) Depreciation for the 1013201 943432 year Withdrawn from 539138 381781 revaluationReserve 474063 561651 22776206 26834067 Profit before 158734 283726 Taxation Provisions for - - taxation Profit after taxation 158743 283726 Investment - 46896 Allowance Written back Debenture - 20833 redemption reserve
written back Research and - 70000 development reserve written back Profit brought 253676 295185 forward Amount available 412410 716640 for appropriation Appropriations Transfer to: Debenture - 145833 Redemption reserve Capital Redemption 160000 10000 reserve Contigency Reserve - 70000 General Reserve - 50000 Dividends: Paid - preference -52371 -52459 Proposed- equity -88048 -105657 -140419 -158116 Tax on dividends -20817 -29015 -161236 -187131 Balance carried to 91174 253676 balance sheet Schedule- 12 other income Dividend from trade 6531 87850
investments Dividend from 888 100182 subsidiary companies Interest from non 612 1042 trade investment Profit on the sale of 9456 - assets Profit on sale of 730231 - investments Miscellaneous 234304 251119 982022 440193 Schedule-14 Interest and Financial charges On debentures 247440 153650 On other fixed 1065652 1111499 interest bearing loans On others 1822490 1549036 3135582 2814185 Less Interest during 8936 225614 contsruction Interest on advances 572645 438054 to companies Interest on deposits, 409318 990899 343745 1007413 BookDebts, loans and others 2144683 1806772
Profitability ratios and assets turnover ratios: 1. Profit margin 2. Asset turnover 3. Return on assets 4. Return on equity and 5. Earnings per share 1.Profit margin: PM=(profit after tax/ sales)*100 For 2008: Profit margin = 158734/21952918*100 = 0.72% For 2009: Profit after tax=283726/26677600*100 =1.06% 2.Asset turnover: ATO= sales/ average total assets For 2008: Asset turnover= 21952918/(33762575+33941677)/2 = .648 times For 2009: Asset turnover= 26677600/(33762575+33941677)/2 =.788 times 3.Return on assets or return on investment: ROI = (Profit after tax/average total assets)*100 For 2008 = (158734/33852126)*100 =.4689% For 2009 = (283726/33852126)*100 = .838% 4. Return on equity:
For 2008: ROE= (profit after tax/ average shareholder's equity)*100 = (158734/12176242)*100 = 1.3% For 2009: ROE= (283726/12176242)*100 = 2.33% 5.Earnings per share: For 2008: EPS= profit after tax/ weighted no. Of equity shares EPS = 158734/1255477 crore shares EPS = Rs. 0.1264 For 2009: EPS= 283726/1405477 EPS= Rs. 0.2019 Liquidity Ratios: 1. Current Ratio: current assets/ current liabilities For 2008: CR= 21493676/5480773 CR =3.92 For 2009: CR= 22126310/7112467 CR = 3.11 2. Quick ratio: QR: quick assets/ current liabilities quick assets = current assets- inventories For 2008: QR= 18681864/5480773 QR = 3.41 For 2009: QR= 19462258/7112467 QR = 2.736 3.Debtors turnover ratio: For 2008: DTR= sales/ average debtors = 21952918/4222560.5 = 5.19 For 2009:
DTR= 26677600/4222560.5 = 6.318 4.Average Debt collection period: For 2008: = average debtors/ Sales / 360 days = 4222560.5/21952918/360 = 69.24 days For 2009: = 4222560.5/26677600/360 days = 56.98 days 5.Inventory turnover ratio: For 2008: ITR= cost of goods sold/ average inventories = 22776206/2737932 = 8.32 times For 2009: = 26834067/2737932 = 9.8 times Solvency ratio: 1.Debt to equity ratio: For 2008: = (secured loans+ unsecured loans)/ shareholder's equity = 22176375/11586200 = 1.91 For 2009: = 21175393/12766284 = 1.65 2. Liabilities to equity ratio: For 2008: = (debt+ current liabilities)/shareholder's equity = 15213175+5480773/11586200 = 1.786 For 2009: = 13762040+7112467/12766284 = 1.635
CF Project

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CF Project

  • 1. CORPORATE FINANCE PROJECT Comparative Analysis of Saras Dairy, Ajmer Submitted to: Section ¨C K Mrs. Shegorika Mam Submitted by: Heena Sanju Bharti
  • 2. ACKNOWLEDGEMENT ¡° The pleasure that follows the successfull completion of an assingment would remain incomplete without a word of gratitude for the people and without whose cooperation the achievement would remain a distant dream. It is not a mere formality to place a record the tireless efforts, ceaseless cooperation, constant guidance and encouragement of the people closely associated with the assingment but a distinct necessity for the authencity and readibility of the project.¡± The management theories learnt in a year are brought into practice. We have tried to make best use of their opportunity. The work bears the imprint of many persons under whom we did this project. We are thankful to Mrs. Shegorika Mam, for her scholarly guidance, advice and encouragement and also for providing neseccary facilities to carry out the dissertion in prescribesd period. Finally, We are indebted to our family, friends and those people who had helped us in completing this project.
  • 3. INTRODUCTION Ajmer Zila Dugdh Utpadak Sahakari Sangh Ltd. Ajmer is a cooperative registered organisation registered under Cooperative act with Registrar of Cooperative, Govt. of Rajasthan. AZDUSS Ltd. Ajmer was established in the year 1972 keeping in mind the interest of the cattle rearers to implement dairy development activities in the Ajmer district, under Operation Flood Program. The main objective of organisation are: 1. To eliminate the role of intermediaries and give cattle rearer's good value for the milk and prevent them from exploitation. 2. To help in financial development of the villages and cattle rearers. 3. To help in the social and financial development of the rural milk producers. 4. To increase the milk producing capacity of the cattle. 5. To make available pure, healthy and high quality milk products to constomers. AZDUSS recieves direction and assistance from Central Govt. , State Govt., RCDF Ltd. Jaipur and National Development Board, Anand from time to time. Presently the dairy plant has a capacity to process 1.50 lakh liter milk; prepare 10 M.T. milk powder and 9.0 M.T. ghee per day. Besides these the plant also prepares chhach, lassi, dahi, shrikhand, paneer and other milk products. The plant has a capacity to pack 2.50 lakh liter milk per day. The Ajmer plant of saras (AZDUSS Ltd. Ajmer) has been certified under internationally accepted quality and food. safety management systems in accordance with ISO 9001-2000 with HACCP.
  • 4. Two categories of products produced by AZDUSS, Ajmer are: 1. Short term products: ? Milk Flavoured, Standard, Gold, Double Tond, Tond ? Chach- plain, chach- namkeen ? Lassi ? Curd 2. Long term products: ? Gulab- jammun ? Ghee ? Ras- gullah ? Sri- Khandh ? Panner It's competitors are: ? Amul ? Relaince dairy It is a government organised company which works for the welfare of rural people. It covers 65% market share in all over Ajmer district.
  • 5. AZDUSS, Ajmer Balance Sheet ending March 31,08,09
  • 6. 2008 2009 Sources of funds Shareholder's funds Share capital 1255477 1405477 Reserves and 10330723 11586200 11360807 12766284 Surplus Loan Funds Secured loans 15213175 13672040 Unsecured loans 6963200 22176375 7413353 21175393 TOTAL 33762575 33941677 Application of funds Fixed Assets Gross Block 22784260 25837493 Less Depreciation 11180547 12176557 Net Block 11603713 13660936 Capital WIP and 1565027 13168740 1872298 15533234 Advance against Capital Expentidure Investments 4387009 3214903 Current Assets, Loans and Advances Inventories 2811812 2664052 Sundry debtors 3372115 5073006
  • 7. Cash and Bank 36446 39956 Balances Loans and Advances 15273303 21493676 14349296 22126310 Less Current Liabilities and Provisions Liabilities 5391109 7002059 Provisions 89664 110408 5480773 7112467 Net Current Assets 16012903 15013843 Miscellaneous 193923 179697 Expenditure Total 33762575 33941677
  • 8. Profit and Loss Account- of AZDUSS, Ajmer for the Year ended March 31
  • 9. 2008(in cr) 2009(in cr) Income Sales and services 21952918 26677600 Other income 982022 400193 (schedule 12) 22934940 27117793 Expenditure Purchase of finished 3276680 7370452 goods(Net) Manufacturing and 16880780 17095192 other expenses Interest and 2144683 1806772 financial charges (Schedule- 14) Depreciation for the 1013201 943432 year Withdrawn from 539138 381781 revaluationReserve 474063 561651 22776206 26834067 Profit before 158734 283726 Taxation Provisions for - - taxation Profit after taxation 158743 283726 Investment - 46896 Allowance Written back Debenture - 20833 redemption reserve
  • 10. written back Research and - 70000 development reserve written back Profit brought 253676 295185 forward Amount available 412410 716640 for appropriation Appropriations Transfer to: Debenture - 145833 Redemption reserve Capital Redemption 160000 10000 reserve Contigency Reserve - 70000 General Reserve - 50000 Dividends: Paid - preference -52371 -52459 Proposed- equity -88048 -105657 -140419 -158116 Tax on dividends -20817 -29015 -161236 -187131 Balance carried to 91174 253676 balance sheet Schedule- 12 other income Dividend from trade 6531 87850
  • 11. investments Dividend from 888 100182 subsidiary companies Interest from non 612 1042 trade investment Profit on the sale of 9456 - assets Profit on sale of 730231 - investments Miscellaneous 234304 251119 982022 440193 Schedule-14 Interest and Financial charges On debentures 247440 153650 On other fixed 1065652 1111499 interest bearing loans On others 1822490 1549036 3135582 2814185 Less Interest during 8936 225614 contsruction Interest on advances 572645 438054 to companies Interest on deposits, 409318 990899 343745 1007413 BookDebts, loans and others 2144683 1806772
  • 12. Profitability ratios and assets turnover ratios: 1. Profit margin 2. Asset turnover 3. Return on assets 4. Return on equity and 5. Earnings per share 1.Profit margin: PM=(profit after tax/ sales)*100 For 2008: Profit margin = 158734/21952918*100 = 0.72% For 2009: Profit after tax=283726/26677600*100 =1.06% 2.Asset turnover: ATO= sales/ average total assets For 2008: Asset turnover= 21952918/(33762575+33941677)/2 = .648 times For 2009: Asset turnover= 26677600/(33762575+33941677)/2 =.788 times 3.Return on assets or return on investment: ROI = (Profit after tax/average total assets)*100 For 2008 = (158734/33852126)*100 =.4689% For 2009 = (283726/33852126)*100 = .838% 4. Return on equity:
  • 13. For 2008: ROE= (profit after tax/ average shareholder's equity)*100 = (158734/12176242)*100 = 1.3% For 2009: ROE= (283726/12176242)*100 = 2.33% 5.Earnings per share: For 2008: EPS= profit after tax/ weighted no. Of equity shares EPS = 158734/1255477 crore shares EPS = Rs. 0.1264 For 2009: EPS= 283726/1405477 EPS= Rs. 0.2019 Liquidity Ratios: 1. Current Ratio: current assets/ current liabilities For 2008: CR= 21493676/5480773 CR =3.92 For 2009: CR= 22126310/7112467 CR = 3.11 2. Quick ratio: QR: quick assets/ current liabilities quick assets = current assets- inventories For 2008: QR= 18681864/5480773 QR = 3.41 For 2009: QR= 19462258/7112467 QR = 2.736 3.Debtors turnover ratio: For 2008: DTR= sales/ average debtors = 21952918/4222560.5 = 5.19 For 2009:
  • 14. DTR= 26677600/4222560.5 = 6.318 4.Average Debt collection period: For 2008: = average debtors/ Sales / 360 days = 4222560.5/21952918/360 = 69.24 days For 2009: = 4222560.5/26677600/360 days = 56.98 days 5.Inventory turnover ratio: For 2008: ITR= cost of goods sold/ average inventories = 22776206/2737932 = 8.32 times For 2009: = 26834067/2737932 = 9.8 times Solvency ratio: 1.Debt to equity ratio: For 2008: = (secured loans+ unsecured loans)/ shareholder's equity = 22176375/11586200 = 1.91 For 2009: = 21175393/12766284 = 1.65 2. Liabilities to equity ratio: For 2008: = (debt+ current liabilities)/shareholder's equity = 15213175+5480773/11586200 = 1.786 For 2009: = 13762040+7112467/12766284 = 1.635