1. PURPOSE OF THE STUDY
 To Know The Financial Position Of Hafed Ltd.
 To Know Company Has The Strengths To Fulfill its Obligations.
 Find Out Strengths & Weakness Of Hafed.
 Growth Rate of Hafed.
 Know The Liquidity Position Of Hafed.
 Know The Operation Efficiency Of Hafed.
 Know the Over All Profitability of Hafed.
METHODOLOGY
The research involved extensive & intensive study of HAFED in this project report a
sincere effort has been made to study the financial statement analysis of the
company. During this study, I studied the financial position & performance of the
company. At last, I have given interpretation & conclusion of the study.
DATA COLLECTION
The whole of my study is based on secondary data of HAFED. I have not taken any
primary data for my study because primary data would not have been helpful to my
study. During the tenure of my study I have taken help of the following secondary
data:
 Annual report of HAFED ltd.
 Annual audit report of HAFED ltd.
 Balance sheet of two years.
 P/L account of HAFE
STATISTICAL TOOL
 ACCOUNTING RATIOS

2. ACKNOWLEDGEMENT
The satisfaction & euphoria that accompanies the successful completion of any task
would be incomplete without mentioning the name of the people who made it possible
whose constant guidance & encouragement crown all efforts with success.
I am deeply indebted to all people who guided, inspired & helped me in the successful
completion of this project. I owe a debt of gratitude to all of them, who were so
generous with this time & expertise.
I am highly intended & extremely thankful to Dr. NN Sharma, COORDINATOR, who
as my external guide was a constant source of inspiration & encouragement to me.
The strong interest evinced by them has helped me in dealing with the problems I
faced during the course of project work. I express my profound sense of gratitude to
them for timely help & cooperation in completing the project.
I am indebted to S.K. GUPTA, G.M (F&A), HAFED, for allowing me to do this project
on HAFED. I am grateful to them for sparing their valuable time and sharing the
important details of their company which become base for completion of this project.
I am grateful to CA AMIT GAUR (DGM), Mr. VASU DEV GARG (AGM) and Mr. ANIL
KUMAR (ACCOUNTANT) HAFED, under whose guidance the present study was
conducted. They gave valuable suggestions, generous help at every juncture through
exchange of ideas, views on study and corrections during all phases of the project,
without which the efforts could not have been completed successfully. They devoted
considerable time in providing me guidance at every stage of the project.
I am thankful to all other staff at HAFED who has shown tremendous cooperation and
support throughout the stay at HAFED.

3. EXECUTIVE SUMMARY
Financial statements provide summarized view of the financial position and operation
of the company. Therefore, now a day it is necessary to all companies to know as well
as to show the financial soundness i.e. position and operation of company to their
stakeholders. It is also necessary to company to know their financial position and
operation of the company. In this report I made an effort to know the financial position
of the HAFED LTD by using the annual report of the company.
The financial analysis of this report will show the strengths and weakness of HAFED.
Financial analysis will help the company to take decisions. Thus we can say that,
financial analysis is a starting point for making plans using any sophisticated
forecasting & planning.

4. Companyoverview
Sector-Govt. sector
Chairman-Capt.Chattar Singh
MANAGING DIRECTOR-A.K Yadav
No. of employees-
Hafed website-www.hafed.gov.in
Deals with- live stock nutrition & consumerproducts
Major activities of Hafed-
 Supply of agricultural inputs fertilizers, pesticides, certified seeds etc.
 Procurement / purchase of food grains e.g. wheat, barley, gram, processing of
paddy, oil seeds etc...
Hafed is a state level apex organization in the cooperative sector in Haryana, it
came into existence on 1st Nov 1996 with formation of Haryana as a separate state,
with an annual turnover of more than 8000 crores engaged in other activities, in
manufacturing & marketing of famous products known for their excellent quality &
purity namely Hafed basmati rice, non basmati rice & their variants, Hafed kachchi
ghani mustard oil (Agmark Grade-1), refined soya bean oil, refined cottonseed oil,
Hafed desi wheat & its Atta, Hafed sugar, Hafed turmeric powder etc. plan to broad
base & strength its distribution & marketing network by appointing distributors in the
state.
Apart from sale of consumer products, Hafed has also been in the business of
manufacturing & supplying the quality cattle feed products to its customers well tested
high quality pesticides/insecticides both in powder & solution form to the farmers
through its large chain distributors.
VISION OF THE COMPANY
To continually enrich its leadership position as an agri-business cooperative of
Haryana.
MISSION OF THE COMPANY
To serve the economic interest of farmers of Haryana by providing viable & efficient
support in agriculture production, marketing & Agri processing.

5. PRODUCTS OF HAFEDS

6. OBJECTIVESOF THE STUDY
 Main objective is to study the different ratios used in Hafed.
 To know the Hafed financial performance based on ratios.
 To find out companies efficiency based on past and present profitability
ratios.
 To study the liquidity position of the company.
 To improve the future performance by analyzing its financial statements.
SCOPE OF THE STUDY
The scope of the study is conducted is only for the organizational level. It is done
through balance sheet of company. For a period 2012-13, 2013-14.

7. INTRODUCTION
In our present day economy, finance is defined as the provision of money at the time
when it is required. Every enterprise whether big or small, needs finance to carry its
operations & to achieve its targets. In fact, finance is so indispensable today that it is
rightly said to be the lifeblood of an enterprise without adequate finance no enterprise
can possibly accomplish its objectives.
When we observed the financial statement comprising the
balance sheet and profit and loss account is that they do not give all the information
related to financial operations of firm, they can provide some extremely information to
the extent that balance sheet shows financial position on a particular date in terms of
structure of assets, liabilities and owners equity and profit and loss account shows the
result of operations during the year. Thus the financial statements will provide a
summarized view of the firm. Therefore in order to learn about the firm the careful
examination of a valuable reports and statements through financial analysis or ratio is
required.
MEANING AND DEFINITION
“Financial analysis” is the process of identifying the financial strength and weakness of
the firm by properly establishing the relationship between the items of the balance
sheet and profit and loss account.
In other words, financial analysis is the process of evaluating the relationship between
components of financial statements.

9. PERFORMANCESINCE2008-09
FINANCIAL YEAR TURNOVER IN CRORES NET PROFIT
2008-09 3092.00 33.78
2009-10 4253.55 43.45
2010-11 5489.00 40.80
2011-12 4690.74 41.04
2012-13 7120.37 43.38
2013-14

10. SOURCES OF FUNDS
1. CAPITAL
The share capital of Hafed as on 31.3.2014 is Rs. 16.14 crore and it includes
Government equity of Rs.18.75 lac.
2. RESERVE AND SURPLUS
0.00
2000.00
4000.00
6000.00
8000.00
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Turnover
Turnov…
0
10
20
30
40
50
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Net Profit
Net Profit
YEAR ENDING AMOUNT (in crores)
31.3.2008 397.50
31.3.2009 579.38

11. The reserve & surplus of the
federation increased from
Rs397.50 crore (as on
31.03.2008) to Rs 718.99
crore (as on 31.03.2012). Year
wise position of reserve & surplus of the last five years is as under:
INVESTMENTS
Investments of the federation in various cooperatives and other institutions increased
to Rs.137.55 crore (as on 31.3.2013). Hafed has invested in the equity in the of
IFFCO, KRIBHO, NAFED, IPL, NCMSL, ACE DERIVATIVES & Commodity exchange
ltd., cooperative sugar mill, Gohana and cooperative sugar mill, Sirsa etc..
0.00
100.00
200.00
300.00
400.00
500.00
600.00
700.00
800.00
900.00
2008 2009 2010 2011 2012 2013 2014
RESERVE & SURPLUS
RESERVE & SURPLUS
31.3.2010 631.90
31.3.2011 676.79
31.3.2012 718.99
31.3.2013 764.47
YEAR ENDING AMOUNT (in crores)

12. PROCUREMENT
 Wheat procurement on support price.
 Procurement of Bajra on support price.
 Procurement /purchase of mustard seed.
 Purchase of sunflower over seed.
105.00
110.00
115.00
120.00
125.00
130.00
135.00
140.00
2008 2009 2010 2011 2012 2013
INVESTMENTS
INVESTMENTS
31.3.2008 116.60
31.3.2009 116.60
31.3.2010 117.61
31.3.2011 133.92
31.3.2012 137.72
31.3.2013 137.55

13.  Procurement/purchase of paddy.
INPUTS
 Fertilizers
 Certified seeds
 Pesticides
 Marketing
PROCESSING
 Hafed oil mills, Rawari
 Hafed oil mills,
 Hafed cattle feed plant, Rohtak
 Hafed turmeric plant
 Hafed sugar mill
RATIO ANALYSIS/ ACCOUNTING RATIO
A Ratio is defined as the indicated quotient of two mathematically expression & as the
relationship between two or more things.
In financial analysis, a ratio is used as benchmark for evaluating the
financial position and performance of a firm.

14. RATIO ANALYSIS
It is defined as systematic use of ratio to interpret the financial statements so that
strength and weakness of firm as well as historical performance and current financial
condition can be determined
A Ratio is an aid to management in making decisions. The ratio is discriminately
and wisely interpreted be useful tool of financial analysis.
ADVANTAGES OF RATIO ANALYSIS
 Simplifies financial statements
 Facilitates interfirm comparison
 Make intrafirm comparison possible
 Helps in planning
 Liquidity position
 Long term solvency
DISADVANTAGES OF RATIO ANALYSIS
If companies ignores the impact of inflation or price level changes in the financial
statements or if financial statements are based on historical costs. Then it becomes
limitation of ratio analysis. Another problem is it depends upon the quality of financial
statements. For example if there are no transparency/ disclosure of real things in the
statements it becomes problem to analyst. But now days it doesn’t hold well because
every company has to disclose its information according to accounting standard, in the
annual reports.
THE HARYANA STATE COOPERATIVE SUPPLY AND MARKETING
FEDERATIONLIMITED
BALANCE SHEET
LIABILITIES 2013 2014 ASSETS 2013 2014
SHARE CAPITAL 18,22,08,027 FIXED ASSETS 5,74,22,35,466
RESERVE & SURPLUS 7,64,46,89,346 INVESTMENTS 1,37,55,78,246

15. NET PROFIT 43,38,69,884 DETORS & OTHER
RECOVERABLES
5,39,56,52,154
LONG TERM
BORROWINGS
40,53,23,350 CLOSING STOCK 52,32,68,20,748
CURRENT
LIABILITIES
57,14,65,65,058 LOANS &
ADVANCES
8,45,67,814
PROVIOSIONS 21,36,02,827 FIXED DEPOSITS 1,96,25,317
CASH & BANK 15,91,38,962
TOTAL 66,02,62,58,492 TOTAL 66,02,62,58,492
 LIQUIDITY RATIOS
1. CURRENTRATIO=CURRENTASSESTS/CURRENT
The ratio is an indicator of firm’s commitment to meet its short term liabilities. Higher the
ratio, better the coverage, 2:1 is treat as standard ratio. Higher the current ratio the larger the
amount of rupees available per rupee of current liability and greater the safety of short term
creditors. Thus current ratio represents the short term liquidity “Buffer”.
2. FINANCIAL LEVERAGE=TOTAL ASSETS/SHAREHOLDERS EQUITY
PARTICULAR TOTAL ASSETS SHAREHOLDERS
EQUITY
RATIO
2012-13 66026258492 8260767257
2013-14
PARTICULAR CURRENT
ASSETS
CURRENT
LIABILITIES
RATIO
2012-13 57722472904 57146565058 1.01
2013-14

16. 2. NET WORKING CAPITAL RATIO=NETWORKING CAPITAL/NET ASSETS
PARTICULAR NET WORKING CAPITAL NET ASSETS RATIO
2012-13
2013-14
 ACTIVITY RATIOS
1. INVENTORY TURNOVER RATIO =COST OF GOODS SOLD/AVERAGE
INVENTORY
PARTICULAR COGS AVERAGE
INVENTORY
RATIO
2012-13
2013-14
2. DEBTORS TURNOVER RATIO=SALES/TOTAL DEBTORS
PARTICULAR SALES TOTAL DEBTORS RATIO
2012-13 71203740619 5395652154 13.19
2013-14
Debtors constitute an important constituent of current assets and therefore the quality of
debtors to great extent determines that firm’s liquidity.
Higher the debtor’s turnover ratiois better, since it indicate that debts are being collected
more promptly.
3. AVERAGECOLLECTION PERIOD = DEBTORS/SALES *360
PARTICULAR DEBTORS SALES RATIO
2012-13 5395652154 712037406619 27.27
2013-14

17. This ratio indicates the extent to which the debt has been collected in time. It gives the
average debt collection period. The higher the turnover ratio and the shorter is the debt
collection period the better is the trade credit management and the better is the liquidity of
debtors., as short collection period and high turnover ratio imply prompt on the part of
debtors. On the other hand, low turnover ratio and long collection period reflects that
payment by debtors are delayed.
4. NET ASSESTTURNOVER RATIO = SALES / AVERAGETOTAL ASSETS
A Firms ability to produce large volume of sales of a given amount of net assets is the most
important aspects of its operating performance.
Underutilized assets increases the firm’s need for costly financing as well as expenses for
maintains and upkeep.
 PROFITABILITTY RATIOS
1. GROSS PROFITRATIO = GROSS PROFIT/NETSALES
PARTICULAR GROSS PROFIT NET SALES RATIO
2012-13 7 650005993 71203740619 10.74%
2013-14
This ratio reflects the efficiency with which management produces each unit of product. This
ratio indicates the average speed between the cost of goods sold & sales revenue.
2. NET PROFITRATIO = NET PROFIT/NET SALES
This ratio indicates company’s capacity to withstand adverse economic conditions.
PARTICULAR SALES AVERAGETOTAL
ASSETS
RATIO
2012-13 71203740619 66026258492
2013-14
PARTICULAR NET PROFIT NET SALES RATIO
2012-13 4338 69884 71203740619
2013-14

18. 3. DEBTEQUITY RATIO = TOTAL LIABILITIES/SHAREHOLDERS EQUITY
THE HARYANA STATE COOPERATIVE SUPPLY AND MARKETING
FEDERATIONLIMITED
TRADING & MANUFACTURING A/C
THE HARYANA STATE COOPERATIVE SUPPLY AND MARKETING
FEDERATIONLIMITED
PROFIT & LOSS A/C
PARTICULARS 2012-13 2013-14 PARTICULARS 2012-13 2013-14
TO ADMINISTRATIVE
EXP
61,79,11492 BY GROSS PROFIT 7,65,00,05,993
TO OFFICE 8,24,56,552 BY STORAGE 1,14,50,30,350
PARTICULAR ssTOTAL
LIABILITIES
SHAREHOLDERS
EQUITY
RATIO
2012-13 66026258492 8260767257
2013-14
PARTICULARS 2012-13 2013-14 PARICULARS 2012-13 2013-14
TO OPENING
STOCK
36,62,83,45,215 BY SALES 71,20,37,40,619
TO PURCHASES 77,52,33,62,797 BY TRADING INCOME 1,18,17,45,126
TO PACKING
MATERIAL
6,68,61,978 BY CLOSING STOCK 52,32,68,20,748
TO STORES &
SPARES
4,28,97,695
TO TRADING &
MANUFACTURING
2,80,08,32,815
TO GROSS
PROFIT
7,65,00,05,993
TOTAL 1,24,71,23,06,493 TOTAL 1,24,71,23,06,493

19. OVERHEADS INCOME
TO FINANCIAL
EXPENSES
7,18,18,30,698 BY MISCELLANEOUS
INCOME
13,98,06,032
TO SALES
OVERHEADS
10,92,82,837
TO DEPRECIATION 32,66,90,912
TO PROVISION FOR
AUDIT FEES
1,42,00,000
TO PROVISION FOR
INCOME TAX
16,86,00,000
TO NET PROFIT 43,38,69,884
TOTAL 8,93,48,42,375 TOTAL 8,93,48,42,375
CONCLUSION
Ratio analysis is defined as systematic use of ratio to interpret the financial statements
so that strengths & weakness of firm as well as historical performance & current
financial condition can be determined.
The ratio is an add to management in making decisions. The ratio if discriminately &
wisely interpreted be useful tool of financial analysis.

20. According to analysis of ratios of two years, I came to know that the company made a
good effort to increase the profit.
Hafed is well known for their quality products & it has maintained a good relation
between customers. And it can increase its profit still better by concentrating the
above given suggestion.