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Verka ppt on ratio

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  • 1. Submitted to Prof. H.S Sidhu Submitted by JYOTI Roll No-12
  • 2.      The Punjab State Cooperative Milk Producers’ Federation Limited popularly known as MILKFED Punjab, came into existence in 1973 with a twin objective of providing remunerative milk market to the Milk Producers in the State by value addition and marketing of produce on one hand and to provide technical inputs to the milk producers for enhancement of milk production on the other hand. it came to real self in the year 1983
  • 3.        To bring the ‘White Revolution’in the state of Punjab by providing necessary inputs such as improved breeding,feeding,health care and management practices. To provide an assured market and remunerative price for every drop of surplus milk at village level through the year. To provide more job opportunities to farmers with a better standing and confidence so that they could move ahead in life. To provide fresh hygienic, good quality milk to urban consumers at reasonable rates. To modernize the exiting milk plants. To set up new milk plants for converting surplus milk into products and market these within and outside country. To implement socio economics program of Govt. to promote dairy for generating direct employment in rural areas.
  • 4.  The setup of the organization in a three tier system with 6000 milk producers co-operative societies at village level,11 milk unions at district level and federation as an apex body at the state level. The district unions are:  Ropar  Patiala  Ludhiana  Fardikot  Ferozpur  Sangrur  Bathinda  Gurdaspur  Hoshiarpur
  • 5.    Jalandhar Amritsar These unions are in 11 districts of the state carry out smooth functioning of marketing, procurement, cattle breeding programme through district co-opreative unions.
  • 6. Milkfed has formulated company specifications for its milk & milk products to provide standard and quality of Products to Consumers. Milk Cheese & Paneer Ghee 7 butter Ice cream & sweets
  • 7. LASSI:- CURD/DAHI:-
  • 8.  Today, verka has out stripped its own boundaries to reach our homes. Verka was there before it came to MILKFED. But then, it was the difference between being there and making it big. When we at milkfed took it on, we believed that it had potential to do a lot more. And it did. With little more of a consumer oriented approach, verka became a brand to reckon with. With its growing outlets and thus easier availability, it reached far and wide across the state and beyond. To people today, verka is a part of their daily lives.
  • 9. MILKFED is serving nationwide consumers through its net work of Regional Offices and very strong distribution channels. Milkfed markets a wide range variety of Verks products which include liquid milk, skimmed milk powder, whole milk powder , infant food , ghee, table butter, cheese lassi, SFM, Ice Cream, UHT milk , Dairy whitner, SFM , Raseela, Curd ,Paneer etc. the annual turnover of Milkfed has crossed Rs. 1255 crores. Verka is a premium price over powders manufactured by competitors which include multi-national as well as private trade and other Cooperative Federations. Now, Verka is known for its quality, freshness, purity and of course its home made taste
  • 10. After winning faith of innumerable consumers, Verka did not stop. Changing items brought new trends, needs, tastes and hopes. Verka, dynamic as ever too acquired newer forms of adding values to milk and milk products. A part from introducing new variants of UHT long shelf life milk. SFM is carry away bottles, cold Coffee and long shelf life curd. We are working on developing orange, pine apple and elaichi based drinks.Verka Ice Cream in different flavors and packaging is available in the market. Many new products are in pipe line. In true sense, milk had never meant so much before.
  • 11.      Making community based silage pits to fulfill shortage of green fodder in kandi areas. Providing milking machines to dairy cooperative societies and progressive dairy farms. Induction of more than 1200 commercial dairy farms in the fold of dairy cooperatives Women empowerment programme State dairy plan 2022
  • 12. AMUL Amul was formally registered on Dec 14,1946. It was suggested by a quality control expert in Anand. Some cite the origin as an arcronym to (Anand Milk Producers Union Limited). The Amul revolution was started as awareness among the farmers. It grew and matured into a protest movement that was channeled towards economic prosperity.
  • 13. NESTLE Nestle relationship with India dates back to 1912, when it began trading as The Nestle Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian Market. Nestle has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The company's activities in India have facilitated direct and indirect employement and provides livelihood to about one million people including farmers, suppliers of pacakaging materials, services and other goods.
  • 14. MOTHER DAIRY Since 1974 millions of consumers in Delhi have been walking up to the goodness and freshness of mother dairy milk. Mother Dairy has established itself as an integral part of their lives be it in terms of providing pure wholesome milk or rich, delicious milk products. The drop logo, used by coopratives across the country is a symbol of purity and freshness, qualities which Mother Dairy over the years has come to be closely associated with.
  • 15.        To bring the ‘White Revolution’in the state of Punjab by providing necessary inputs such as improved breeding,feeding,health care and management practices. To provide an assured market and remunerative price for every drop of surplus milk at village level through the year. To provide more job opportunities to farmers with a better standing and confidence so that they could move ahead in life. To provide fresh hygienic,good quality milk to urban consumers at reasonable rates. To modernize the exiting milk plants. To set up new milk plants for converting surplus milk into products and market these within and outside country. To implement socio economics program of Govt. to promote dairy for generating direct employment in rural areas
  • 16. There are various methods or techniques used in analyzing financial statements, such as comparative statement, trend analysis, common- size statement, schedule of changes in working capital, fund flow analysis, cost - volume profit analysis. The ratio analysis is one of the most powerful tools of financial analysis. It is the process of establishing and interpreting various ratios (quantitative relationship between figures and groups of figures). It is with the help of ratios that the financial statements can be analyzed more clearly and decision made for such analysis.
  • 17.     Simplifies financial statements: It simplifies the comprehension of financial statements. Ratios tell the whole story of changes in the financial condition of the business Facilitates inter-firm comparison: It provides data for inter-firm comparison. Ratios highlight the factors associated with with successful and unsuccessful firm. They also reveal strong firms and weak firms, overvalued and undervalued firms. Helps in planning: It helps in planning and forecasting. Ratios can assist management, in its basic functions of forecasting. Planning, co-ordination, control and communications. Help in investment decisions: It helps in investment decisions in the case of investors and lending decisions in the case of bankers etc.
  • 18. LIQUIDITY RATIOS Liquidity refers to the ability of a concern to meet its current obligations and when these become due. The short-term obligations are met by realizing amounts from current, floating or circulating assets. The current assets should either be liquid or near liquidity. These should be convertible into cash for paying obligations of short-term nature. To measure liquidity of a firm, following ratios can be calculated. Current Ratio  Quick or Acid Test or liquid Ratio  Absolute Liquid Ratio or cash position Ratio 
  • 19. FORMULA= Current Assets Current liabilities YEAR CURRENTASSETS CURRENT CURRENT RATIO LIABILITIES 2010-11 1958572667.95 244624749.63 8.006 2011-12 1918041919.23 280057575.94 6.86
  • 20. FORMULA= Quick or Liquid Assets Current Liabilities YEAR LIQUID ASSETS CURRENT CURRENT RATIO LIABILITIES 2010-11 1855801878.19 244624749.63 7.586 2011-12 1770655553.97 280057575.94 6.304
  • 21. FORMULA= Absolute Liquid Assets Current Liabilities Absolute Liquid Assets=Cash & Bank +Short-term Securities YEAR ABSOLUTE CURRENT CURRENT RATIO LIQUID ASSETS LIABILITIES 2010-11 21263764.76 244624749.63 0.0869 2011-12 7239782.59 280057575.94 0.0025
  • 22. ACTIVITY RATIOS Funds are invested in various assets in business to make sales and earn profits. The efficiency with which assets are managed directly affects the volume of sales. The better the management of assets, the larger is the amount of sales and the profits. Activity ratios measure the efficiency or effectiveness with which a firm manages its resources or assets. These ratios are also called turnover ratios because they indicate the speed with which assets are converted or turned over into sales..   Inventory/ Stock turnover Ratio Working Capital Turnover Ratio
  • 23. FORMULA= COGS AVERAGE STOCK AVERAGE STOCK =OP.STOCK+CL.STOCK 2 YEAR COGS AVERAGE STOCK ITR ( IN TIMES) 2010-11 592442191.05 244624749.63 8.575 2011-12 7239782.59 280057575.94 0.0025
  • 24. Working Capital Turnover Ratio= Cost Of Sales Average Working Capital Year Net Sales Average Working Working Capital Capital Turnover Ratio ( Times) 2010-11 1789729431.70 1713947918.32 1.044 2011-12 1789729431.70 1643027543.82 1.089
  • 25. The term ‘solvency’ refers to the ability of a concern to meet its long term obligations. The long term indebtedness of a firm includes debenture holders, financial institutions providing medium and long term loans and other credit selling goods on installment basis. Long term solvency ratios indicate a firm’s ability to meet the fixed interest and costs and repayment schedules associated with its long term borrowing. The following ratios serve the purpose of determining the solvency of the concern.      Debt-Equity Ratio Proprietary or Equity Ratio Solvency Ratio Fixed Assets to Proprietor’s Fund Ratio Fixed Assets to Total Long-Term Funds
  • 26. Debt-Equity Ratio= DEBT EQUITY DEBT= W.C.L+TERM LOAN EQUITY= EQUITY+RESERVE & SURPLUS +PROFIT Year DEBT EQUITY Debt-equity Ratio 2010-11 1034794874.67 820770877.41 1.26:1 2011-12 973159984 729754281.57 1.33:1
  • 27. Proprietory Ratio= Shareholder’s Fund Total Assets PROPRITORS FUNDS=EQUITY+PERFRENCE+RESERVE & SURPLUS TOTAL ASSESTS= FIXED ASSESTS + CURRENT ASSESTS Year PROPRIETORS Total Assets Ratio (%) FUND 2010-11 721251090.41 2088864118.24 34.52 2011-12 729754281.57 2043249667.97 35.71
  • 28. Fixed Assets Ratio= Fixed Assets Total Long Term Funds Long Term Funds= Shareholder’s Fund+ Long-Term Borrowings Year FIXED ASESSTS TOTAL LONG TERM Ratio FUND 2010-11 130291450.29 1855565752.08 0.070 2011-12 125207748.74 1702914265.57 0.073
  • 29. A business needs profits not only for its existence but also for expansion and diversification. Profits are, thus, a useful measure of overall efficiency of business. The various profitability ratios are discussed below: GENERAL PROFITABILITY RATIOS     GROSS PROFIT RATIO OPERATING PROFIT RATIO EXPENSES RATIO NET PROFIT RATIO
  • 30. Gross Profit Ratio= Gross Profit X 100 Net Sales YEAR GROSS PROFIT NET SALES Gross Profit Ratio (%) 2010-11 1196702099.15 1789144290.20 66.88 2011-12 332264636.4 1789729431.70 18.56
  • 31. Operating Ratio= Operating Cost X 100 Net Sales Operating Cost= Cost of goods sold+ operating expenses YEAR OPERATING COST NET SALES OPERATING COST RATO (%) 2010-11 861865672.43 1789144290.20 48.17 2011-12 827597656.57 1789729431.70 46.24
  • 32. Net Profit Ratio= Net Profit after tax X 100 Net Sales Net Profit Ratio=Net Operating Profit X 100 Net Sale YEAR NET PROFIT NET SALES Ratio (%) 2010-11 102584873.31 1789144290.20 5.73 2007-08 85031391.16 1789729431.70 4.75
  • 33.      Profits are measure of overall efficiency of a business. Overall profitability or efficiency of a business can be measured in terms of profits related to investments made in the business. Various overall profitability ratios are discussed below. Return on Shareholder’s Investment or Net worth Ratio Return on Equity Capital Earning per Share Return on Capital Employed Capital Turnover Ratio
  • 34. Return on Shareholders’ Investment= Net Profit (BEFORE interest & tax) CAPITAL EMPLOYED CAPITAL EMPLOYED= FIXED ASSETS+CURRENT ASSESTCURRENT LIABILTIES YEAR NET PROFIT CAPITAL Ratio (%) BEFORE INT & TAX EMPLOYED 2010-11 164485830.66 2333488867.87 7.048 2011-12 85031911.16 1763192092.03 4.822
  • 35. Return on Equity Capital = Net profit after tax- preference dividend Equity shareholder funds YEAR NET PROFIT AFTER EQUITY INT & TAX Ratio (%) SHAREHOLDER FUNDS 2010-11 102584873.31 656285046.75 15.63 2011-12 85031391.16 444733290.41 19.11
  • 36. Earnings per Share= Net Profit after tax- Preference Dividend No. of equity Shares YEAR NET PROFIT AFTER NO.OF EQUITY E.P.S INT & TAX SHARES 2010-11 102584873.31 500000 205.16 2011-12 85031391.16 500000 1700.6
  • 37. Capital Employed= Fixed Assets +Working Capital Capital Turnover Ratio= Cost of Goods Sold or Sales Capital employed Year Sales Capital Employed Ratio 2010-11 1789144290.20 2333488867.87 0.7667 2011-12 1789729431.70 1763192092.03 10.15

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