FINANCIAL ANALYSIS

1. By: Prasenjit Deb
Enroll no.-17MSOM017
MBA 2nd Year
Guided By:
Faculty Mentor Company Mentor
Dr. Rajib Mallik Mrs. Jaya Majumder
Assistant Professor Accounts Assistant (F&A)
SOM, NIT Agartala GCMPUL, Agartala
A study on Financial Performance analysis
at
Gomati Co-operative Milk producers union Ltd.

2. OBJECTIVES OF THE STUDY
 To study the financial position of Gomati
Cooperatives Milk Producer Union Ltd. With the
help of Ratio analysis.
 To Study the trend analysis of balance sheet for
last 3 years.

3. RESEARCH METHODOLOGY
DATA COLLECTION:
 Sources of Data –
Balance Sheet provided by company, data from company website
 Types of Data Used – Secondary Data
 Tools Used in Data Analysis –
1. Ratio Analysis
2. Trend Analysis
3. Comparative balance sheet analysis

4. DATA INTERPRETATION
Fig.1: Current ratio
 Current ratio value is well above standard value of 2:1

5. DATA INTERPRETATION
Fig.2: Quick ratio
 Quick ratio value is irregular

6. DATA INTERPRETATION
Fig.3: Operating ratio
 Operating ratio value is gradually increasing

7. DATA INTERPRETATION
 Fig : 4 Working capital turnover ratio
 Decline in Working capital ratio value is observed here.

8.  Fig:5 overall Profitability Ratio
Irregular overall Profitability ratio Value

9. Fig.6: Trend Analysis of Current asset, Current Liability & Working Capital
DATA INTERPRETATION
100 101.12
99.56
100
71.82
21.81
100
115.28
93.42
0
20
40
60
80
100
120
140
2014-15 2015-16 2016-17
Trend Analysis
current asset current liability working capital

10. MAJOR FINDINGS
 Current ratio value is well above standard value of 2:1.
 Quick ratio value is fluctuating, and is below standard
value of 1:1, which means firm is facing difficulties to
meet their immediate obligations.
 Overall profitability ratio shows very less profit compared
to net sale.
 Operating ratio and fixed asset turnover ratio shows that
company is making very less sales compared to operating
cost and fixed asset.
 Trend analysis shows huge decrease in current liability.

11.  Company has some idle fixed assets, company should increase
their liquid assets to increase their liquidity.
 Company is processing milk in old outdated facilities, which
are financially doing more harm than good to the organisation.
Company should invest in updated equipment and modernise
their production facility to avoid excess operating cost.
 Company's procurement of milk is depended upon milk
farmers , and transportation of milk is done by 3rd party.
Company has the ability to do both of this activity on their
own, and should act in that manner.
 Company should go for sales promotion in Tripura along with
in neighbouring north-eastern states.

12. BIBLOGRAPHY
Websites
 http://en.wikipedia.org/
 http://www.investopedia.com/
 http://tutor2u.net/
 http://gomatimilkunion.in
Referred books
FINANCIAL MANAGEMENT- I.M. PANDEY
MANAGEMENT ACCOUNTANCY- PILLAI & BAGAVATI

13. THANK YOU