“ A Study of Financial Performance Through Ratio Analysis With special Reference to M N Pickles”

CHAPTER 1
INTRODUCTION

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CHAPTER 1
INTRODUCTION
Introduction

Organization is setup by objectives, Rules and Regulation, policies. The term organization
indicates that control the overall activities of the company. And it is the back bone of company
for running successfully. Plan, control, place and people are the elements of the organization. If
the organization going well in the company the above elements are reason for the successful
running of the company.

The organization builds good relationship in employees and company. As we know that the
employees are the basic elements of any company. If the company fail to maintain the
relationship with employees the company might be lose their business. So, that organization is a
basic aspect of any company.

The term organization can be used in different sense, It can be used as a group of persons
working together or as a structure of relationship or as a processes of management. Organization
study is a field that investigates the impact that individual, Group and structure have on behavior
within organization for the purpose of applying such knowledge towards improving
organizations effectiveness. Every organization consist of people. It is regarded as a collection of
interacting and interdependent individuals who work jointly under a group in order to achieve
certain common objectives.

Pickle plays a very important role in Indian cuisine. It doubles the taste of food adds a spicy
flavor and palatable to eat. It also play the role of appetizer, some dishes is incomplete without
pickle. Pickle serve as food flavorings adding desired piquancy through combined action of fruit
acid, salt and condiments (Shinde et al 2004). Generally, Pickle is making in two flavors: sweet
and sour. Fruit and vegetables are the raw material of pickle like mango, aonla, lemon and
karonda in fruits category. In vegetables, garlic, bitter gourd, radish, cauliflower and many more.
But in case of popularity, mango pickle is much popular in other pickles. In India mango is
distributed in wide way .so people are easily find it .Almost, people consider mango for making
pickle. In summer season, all household are busy in mango pickle. The process of making mango

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pickle has varied in all over India like southern people prefer sesame oil for preservation of
pickle while mustard oil in northern people . So many distinguishing features are also occurring
in making of mango pickle according to taste, oil and texture of fruit. Mango pickling is highly
demanding in all time. The process of pickling divided into three steps: preparation of pickle,
ingredient addition, storage.

Mango is the king of fruit in India, tropical fruits and is greatly relished for its succulence, exotic
flavour and delicious taste in most countries of the world (Bhatnagar and Subramanyam, 1973).
Apart from its delicacy, it is a nutritionally important fruit being a good source of vitamin A, B
and C and minerals. Large number of mango cultivars has been screened (Sadhu and Bose, 1976;
Gangopadhyay et al., 1976; Dhar et al., 1976; Rameshwar et al., 1979; Kalra et al., 1981) for
their physico-chemical characteristics, from which inference can be drawn for their suitability for
different product preparation. Succulent juicy varieties are popular for dessert purposes and
nonfibrous fleshy varieties are largely used for processing (Ravani et al., 2013). First of all, we
want to discuss the perfect features of mango which is use in pickling; the most important feature
of mango is their acidity .pickle is made by those cultivars of mango which are highly acidic and
rigid in texture. Some mango cultivars are only use for pickling purpose such as Rumani in
Maharastra (Dixit et al 2010) Khirsapath in Bangladesh (Islam 2013), Nakei, Kaliagaja,
Gajagachha, Nangalkantia, Rajbhog Kalia Goutmi, Kadalia, Kakudia in Urissa( Das et al 2007) ,
‘Keshar and ‘Local in Maharastra (Chalke et al 2012) Charan Achari, Gola Desi in Punjab
(Singh N.P et al 2012) konkan and so on. Some mango cultivar specifically grown for pickling
purposes like Konkanruchi in Maharastra (Shinde et al 2004), Achar pasand, Tellagulabi of
Nuzivid, Alipasand, Guddemar, Makkeri in Andhra Pradesh (Reddy et al., 2010) Achar pasand,
Tellagulabi of Nuzivid, Alipasand, Guddemar, Makkeri in Andhra Pradesh(Reddy et al 2010)

Amlette, Chandrakaran, Karania in Tamilnadu,(Karihaloo et al 2003)Bogadi and Sakkalli ,

Kashimidi, Isagoor Appe, Malange, Appemidi, Dantimamidi and Jeerige
Appimidi,Pathesh ,hannu, Hulikai,Doddamidi, MidiJirige midi in Karnataka (Bulla et al
2010).the different physicochemical parameter of mango for pickling purpose depends upon fruit
weight , acidity, maturity stage, firmness and strong flavor. Fruits use for pickling purposes vary
in their physic-chemical characteristics such as: size of fruit and size of stone , color, shape,

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firmness, latex flow ,dry matter, weight, TSS, pH, titrable acidity and ascorbic acid raw mango
flavor

According to preparation, pickle is divided in three types:

1. pickle in oil

2. pickle in brine

3. pickle in acidic media

Oil, Brine and acidic media are play the role of preservative in pickle .it gives long life. The
sunlight is very important for making any kind of pickle .it gives a proper heat and aroma. Pickle
also making by using oil or without oil.

Famous mango pickle recipe:

In India, mango pickle making started in a decade; pickles made in south India are rich in flavor
and taste in compare to north India. Their pickle ingredient also varies in region wise. Some of
the mango pickle recipes are Golkere, chhunda, grated mango pickles and gunda kere in Gujarat,
Gunda kere in Rajasthan, Spicy and hot Avvakai pickle in Andhra Pradesh, Whole mango pickle
in Karnataka, Stuffed mango and peeled mango pickles in Rajasthan (Bulla. R,Malagi.U et al
2012), Chhachha in Himachal Pradesh (Kapoor. A., et al 2010).

Best stage of mango fruit for pickle making

Unripe green mango fruits (80% maturity) were taken for pickle making. The best stage of
harvesting for pickling is just after the endocarp starts hardening (Ismail et al 1986). (Shinde et al
2004) in RFRS ,Vengurle , some hybrid cultivar of mango were selected and studied for
proximate analysis and suitability for pickle making .The tree is moderately vigorous, trunk is
medium and shoots thick, leaves are medium in size and intermediate. The tree started fruiting at
the age of 4th year .The fruits get matured and ready for pickle making in the month of May. The
fruit are of large size (436.5g).Mango fruits CV Ramkela were procured from orchard at
Gulabkhera .Unripe mature fruit were used for the preparation of pickle .The fruit were
thoroughly cleaned, washed in water and air dried .their pulp on analysis had a TSS 7.1%.acidity
2.5% Vitamin C 125mg /100g, moisture 79.5%, Ph 2.82, reducing sugars 0.78% and total sugars

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2.7 percent. (Gupta et al 1998).according to this research article, in the preparation of oil less
pickle, asafeotida (hing) were used found to be the most acceptable up to 9 months of storage.
Kanekar et al (1984) also observed that salt concentration of 15% protected from the mango
pickle.

1. Variation in cutting fruit for pickling of mango

Fruit cut into different form such as cube, grated and slice. The life of pickle depends upon the
cutting form of fruit, some famous recipes of pickle specific for mango pickle are Kannimanga
Achar recipe/ Tender mango recipe form Kerala, Mukkala Pacchadi | Mango Pickle with Small
Pieces Fruit cut in the form of cube from Andhra Pradesh, Instant jaggery mustard pickle ,Grated
fruit in Uttar Pradesh, Fruit cut in from of slices Chundu from Gujarat, Ambyche lonache Fruit is
chopped in fine small pieces from Maharastra and Stuffed fruit (Mango Stuffed) from Goa.

2. Variation in ingredients used by respondents from different states for mango pickle
preparation

The ingredients play a vital role for making of mango pickle. It gives flavor, aroma and texture
to pickle .Due to this, pickle is easily digestible. The ingredient of pickle varies from state to
state in India like Crystal salt, sesame oil, garlic, ginger, Bengal gram, curry leaves in Andhra
Pradesh, Crystal salt, mustard oil, aniseed, cardamom ,cinnamon, cloves, coriander seeds,
nutmeg in Gujarat, Crystal salt, sesame and groundnut oil ,cinnamon, cloves, black pepper,
linseed in Karnataka Crystal salt, sesame oil, garlic, curry leaves ,vinegar in Kerala, Crystal salts,
sunflower and cotton seed oil, cumin seeds, garlic in Maharashtra ,Crystal and black salt,
mustard oil, aniseed, mango powder, black pepper, curry leaves, garam masala, onion seeds,
vinegar in Punjab in Crystal salt, sesame and ground nut oil, aniseeds, caraway seeds, cardamom,
ginger, mango powder, omum, black pepper, onion seeds.( Bulla et al 2012)

Statement of the problem:

The M N Pickles Limited is necessary to determine the current position, and the trend in
which way the company is moving. The study is important to analyze the financial condition to
know the present performance and overall financial stability of the firm. This project is taken

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 “ A Study of Financial Performance Through Ratio Analysis With special Reference to M N Pickles”

place to analyze the trend, and to study the financial performance. “A Study of financial
performance through Ratio analysis with special reference to of M N Pickles.

Objective of the Study

 To understand the concept of ratios and its application

 To understand the liquidity position of the firm
 To study the impact of ratios on profitability of the firm
 To evaluate the profitability of the organization over the time
 To evaluate the Strength, Weakness, Opportunities and Threats

Scope of the Study

The scope of the study is limited for studying of M N Pickles. For the period of Fifteen
days. From 02.09.20 13 to 17.09.20 13. and this study tells us an overall view of organization
and functions carried out by different departments like manufacturing, human resources, and
finance etc.

Methodology

In order to achieve the above stated objectives the data has been collected both from
primary and secondary sources.

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CHAPTER – 2

INDUSTRY PROFILE

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CHAPTER – 2
INDUSTRY PROFILE
Pickle industries are an AGRO BASED INDUSTRIES IN INDIA, The small scale and the
medium scale industries. The pickling industries are one of the very important rural areas
developing industries in India. These types of industries are making job opportunities to the
rural women labors and the main thing is developing the agriculture and increasing the
production of the agricultural products and develop the village and rural areas.

Agriculture and industry have traditionally been viewed as two separate sectors both in terms
of their characteristics and their role in economic growth. Agriculture has been considered the
hallmark of the first stage of development, while the degree of industrialization has been taken
to be the most relevant indicator of a country’s progress along the development path.
Moreover, the proper strategy for growth has often been conceived as one of a more or less
gradual shift from agriculture to industry, with the onus on agriculture to finance the shift in
the first stage.

This view, however, no longer appears to be appropriate. On the one hand, the role of
Agriculture in the process of development has been reappraised and re-valued from the point
of view of its contribution to industrialization and its importance for harmonious development
and political and economic stability. On the other hand, Agriculture itself has become a form
of industry, as technology, vertical integration, marketing and consumer preferences have
evolved along lines that closely follow the profile of comparable industrial sectors, often of
notable complexity and richness of variety and scope. This has meant that the deployment of
resources in agriculture has become increasingly responsive to market forces and increasingly
integrated in the network of industrial interdependencies.

Agro-industry, i.e. the processing, preservation and preparation of agricultural production for
intermediate and final consumption, performs a number of crucial functions that support

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development and poverty alleviation.

Agriculture in connection with industry needs to be recognized by senior-level policy makers

and industry leaders as a competitive, value-adding business sector that has a positive 30
development impact and contributes to economic growth. Rather than focusing on agricultural
productivity only, policy makers must consider the competitiveness of the entire agro-value
chain.

Pickle is one of the very popular items of every Indian house. This is one of the delicious item
and the people need it every day. The varieties of pickles in different Regions of India have
highly export potential and earn considerable foreign exchange. Many people are traditionally
expertise in making many types of pickle according to their tastes. In view of its popularity of
the products, the units engaged in this activity can get good market for the product. The unit
can extend their support to the nation by creating more employment generation in the rural
area.

Competitor information Local competitors

 Swasthik pickle
 A one pickle
 Avinash pickle
 M R pickle
 Malnad pickle

Domestic competitors

 M T R , Bangalore
 Nilons Enterprise Pvt Ltd, Pune
 Konark foods, Mumbai
 Arya farm Pvt. Ltd, Bangalore

International competitors

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 Gendney Pickle , Chaska, USA

 Mount Olive Pickles Company , USA
 Del Monte,San Francisco,USA

Types of the pickles

 coconut pickle
It is use in the south Indian breakfast. Mode of the raw coconuts

 Tomato pickle

This pickle most popular in India Spicy & testy prepared by the ripe tomatoes.

 Sweet mango pickle

It is also very popular pickle in India. Prepared by cutting mangoes & adding sugar
 Assorted pickle

It is also called mixed pickle. Prepared by the all vegetables and fruits

History of Pickles
It is rumored that they were on of Cleopatra’s prized beauty secrets. They make appearances in
the bible and in shakes pears writing. Pregnant women have been known to crave them along
with ice – Cream. Pickles have been around for thousands of years, dating as for back as 2030
BC when cucumbers from their native India view pickled in the Tigris vally. The word pickle
come from the Dutch or northern German pike meaning salt or brine, two very important
components in the pickling process. Throughout history pickling was necessity as it was the
best way to preserve food for a long time. As one of the earliest mobile foods, Pickles filled the
stomach of hungry sailors and travelers, while also providing families with a source of food
during the cold winters months.

Pickles are created by immersing fresh fruits or vegetables in an acidic liquid or salt water brine
until they are no longer considered raw or vulnerable to spoilage. When we think of pickles.
Cucumbers commonly come to mind. Pickled cucumber are often fermented in salt water brine.

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During this process lactic microbial organisms develop, which turn the naturally occurring
sugars of foods into lactic acdic quickly, making it impossible for any spoiling bacteria in
multiply cucumber pickles can also be made with a salt and vinegar brine a popular choice for
home cooks. The brine known as pickle juice is come times used by athletes to treat dehydration
through it has yet to be praven as a true remedy .

Kasher dills have a unique history of their own. In the book of jewish food, Claudia roden
explains that pickles vegetables were a dietary staple for Jews living in the Ukraine Poland,
Lithuani a Russia. The sharp addition to the bland bread and potato diet of these cold weather
countries for several generations it was an autumm custom for Ashkenazim to fill barrels with
cucumbers beets and shredded cabbage. The mixture was left to ferment in a warm place for
several weeks. Then relocated to cool dark cellars the pickles would last through the loan cold
winter until spring when new crops of fresh produce were available.

When a heavy influx of eastern europen jews arrived in new yark City during the late 1800s and
early 1900s. immigrants introduced ksher dill pickles to America. Cucumbers were washed
them piled in large wooden barrels along with dill, garlic, spices, kosher salt and clean water
they were to several months shorter fermenting time produced brighter green half sours. Pickles
were sold on push cares in the barrel began appearing in droves eventually, pickling became a
profit table business within the jews community today a plate of pickles is usually served
complimentary with a meal at the best jewish delis.

Home pickling was made much easier and more sanitary during the 1850s, when turo
essential cramming tools were invented. First a Scottish chemist by the name of james young
created paraffin wax, which helped to create a seal for food preserved in jars. A few years later
john nason developed and patented the first Mson jar. Masons jars were made from a heavy
weight glass that was able to tolerate the high temperatures used in canning and processing
pickles.

Of course, pickles aren’t limited to the dill and cucumber variety. They can be sweet, sour,
salty, hot or all of the above. Pickles can be made with cauliflower, radishes, onions, green
beans asparagus and seemingly endless variety of other vegetables and fruits. When the English
arrived in the new world.

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Leading Players of the Pickles :

Some of the key players operating in the packed pickles market include.

 ADF Food Pvt LTD

 Pinnacle Foods, Inc,
 The Kraft Heinz company.
 Del Monte foods, Inc
 Reitzel S.A
 M R alive Pickles
 Mitoke Company Ltd.
 Peter piper’s Pickle palace. Inc
 Orkla ASA ( MTR Foods)
 Nilons Enterprises Pvt Ltd.

Future Outlook

Focusing on taste: First, improved taste: capabilities in pickles is critical to the industry’s
ability to produce base products that are competitive nature.

Improvement in the metal pickle can be achieved by focusing on interrelated areas

 CNC machining and testing equipment will be upgraded to cater to the increasing
customer expectations.
 Capabilities to meet future needs and expectations of customers.
 Increase the revenue from overseas business segment substantially.
 To satisfy employee needs and improve taste facilities.
 Adopting proper plan of action at a right time

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Ratio Analysis :

The present study of the research entitled “ Financial performance by using ratio analysis
with special reference to M N Pickles , Shiralakoppa. The study is completely based on
secondary data which is collected from the annual reports of the society . Even through there are
different tools available for assessing of financial performance researches has used only ration
analysis for the purpose of analysis.

Ration analysis is the process assessing the financial strengths and cost efficiency of the
organization by creating relationship between the balance sheet and profit and all account.

Significance of ration analysis :

Importance ration analysis can presented as below :

 Instrument in assessing the financial conditions of the firm.

 Helps in stream line the financial analysis and assessment.
 Helps in easy assailment the operational performance of the firm.
 Helpful in estimating the future financial requirement.

Factors to be considered in Ration analysis :

Following are the factors to be considered in ratio analysis.

 Competence of the financial analyst.

 Goal of the financial analysis.
 Accuracy and reliability of the financial statement.

2.4 Classification of Ratio

There are different types of the ratios. Ratio can be classified into four broad categories.

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Classification of Ratio

There different types of the ratios. Ratio can be classified into four broad categories.

Ratio Analysis

Liquidity Ratios Leverage Activity Ratios Profitability

Ratios Ratios

They measure These Ratios They reflect the These ratio’s

the firm’s ability show the firm’s efficiency measure overall
to meet current proportion of in utilizing the performance
obligations debt and equity assets. effectives of the
in financing the firm
firm’s assets

Formulas of Different Ratios.

a. Current Ratio = Current assets / Current liability.

b. Quick Ratio = ( Current assets – Inventories ) Current liability.
c. Cash Ratio = Cash / Current liabilities.

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d. Account receivable turnover = Sales / Accounts receivables

e. Average Collection period = 360 days / accounts revivable turnover
f. Inventory turnover Ratio = Cost of goods sold / Average inventory
g. Accounts payable turnover = Sales Accounts payable.

Limitations of Ratio Analysis

 Different financial experts have different opinions on ratios.
 Completely based on the proper financial statements.
 Lack of reliable and confusing standards.

Literature Review

The review of literature helps the research for developing improved knowledge on subject
matter for the purpose of project different articles related to ratio analysis and co-operative
sectors collected through different secondary sources. Literature review of about twenty
articles presented as below.
1. Padma ( 2016) Has conducted ratio analysis and has concluded that APL Apollo steel
and tata steel financial performance is better than other industries in the same sector
author has calculated totally six ratios and identified in all ratio above mentioned
companies performing better than the other companies of same sector.
2. Ravichandran M & Venkata subranamuam ( 2016 ) Reported that ratios are not
creating any meaning, They opined that financial experts have to analyze properly to
definite meaning for it. They have suggested that more than calculation of ratios firms
should concentrate on improving the ratio’s they have identified that ratios considered
only few factors of financial performance and it leaves that any other factors which
contributes to the profitability of the firms.
3. S.Sabarithan V Jenifer ( 2016) Revealed that ratio analysis of the any firm should
satisfactory result. They have suggested that form should increase their performance for
facing the issues and using opportunities on future. They have concluded that any
projects of the firm are guided by the ratio analysis due to its accuracy and reliability.
4. Abdul Rehaman, Luman Jingdona Yuneng ( 2015 ) Reported financial position and
financial performance of organization any can be identified with the help of financial

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ratios financial ratios are crucial and important in identifying the present condition of any
firm. They have concluded that firms need to regularly calculate ratio to identify the
financial performance. In turn this makes them to proper managerial decisions.
5. Gowsalya R S, Mohammed Hassan M ( 2017 ) Have reported that solvency ratio of
commercial banks are much better and higher than the co-operative societies for the
purpose of the study they have considered only liquidity position of the firms. They have
opined that through the liquidity ratios, firms can understand the liquidity positions and
also helps them to know operational performance.
6. Mistry Pharendra S ( 2012 ) Has analyzed and identified the effect determents on the
profitability of the different firms author has used that debt equity ratio. He has opined
that organizational physical assets are crucial determents which they create positive and
negative impact on organizational profitability. He has suggested that firms need to
improve solving of the firm to reduce the financial.
7. Sharma Rashmi Pande Neeraj & Sing Avinash ( 2013 ) have opined that the
comparative analysis helps the firm the internal and external shareholders to understand
the financial performance of the firm as compared to previous year. They have opined
that comparative analysis is the best method for financial analysis as compared other
methods.
8. Nandhini M & Sivaslthi V ( 2015) Authors have reported that financial leverage in main
factors which affects the on the organizational profitability of TVS motor company. They
opined that financial leverage is major financial determine. Financial leverage of the firm
can be observed through the eppectivel ratio analysis.
9. Florenz C. Tugas ( 2012 ) Has opined that interpretation of financial data is depends on
now financial data is prepared for the ratio analysis. Executives need reliable accurate
data firms need to collect all needed information prepare financial statement. Proper
financial statement preparation helps in ratio analysis and it also helps in managerial
decision making.
10. Kaur Harpreet ( 2016) has analyzed the financial performance and operational
performance and operational performance for Maruti Suzuki co. Authors has done study
completely based on the secondary year. Author has opened that stock turnover ratio is
important for the firm. Since firm is in the automobile sector managing inventory is

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important. He has opined that in automobile sector firms need to calculate different ratios
of the inventory to manage the market demand of automobile.
11. Mathur Shivam & Subramanium M Venkata ( 2016 ) Authors have opined that ratio
analysis the excellent and scientific way to analyze the financial performance of any firm.
Study has concentrated on ratio analysis of automobile sector. Authors have opined that
stock turnover ratio is important for the firm.

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CHAPTER - 3

COMPANY PROFILE

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CHAPTER 2

COMPANY PROFILE

BACKGROUND

M N Pickles is a family owned business. The company has seen three decades of successful
operation and holds a special place in markets across Karnataka. It had a humble beginning in
1983 when its founder, Mr. Masur Narayanappa, began selling homemade pickles in
Shiralkoppa and adjoining markets in Shimoga. There was something special in the recipe that
made it an instant hit. So, thus was born the brand, “MN Pickles”.

The M N pickles a rural industry is located in Shiralkoppa , at Shikaripur taluk in Shivamogga

district. Shiralkoppa is 2Okms, from Shikaripur and 7Okms from Shivamogga, Which is
surrounded by? Coconut estate, forests and also surrounded by Mangoes estates, where the raw
materials are available in this area. Therefore, the industry need not produce their raw materials
from distant places, which may incur additional transportation expenses Delay in setting the
supplies etc

Founder of the M N Pickles,

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Mr. MASUR NARAYANAPPA

The M N Pickle in rural industry was established in the year 1983. Mr. Masur Narayanappa
The industry is located in a place where is abundant availability of the raw materials like, red
chili, mango, lemon etc., Which are easily available in the season at economical rate i.e., at
Reasonable rate in the market and in the surrounding places.
When the industry started in 1983-1985 they were manufacturing only two types of pickles i.e.,
mango lemon. But after sometimes they also started to manufacture different types of pickles
using armana.

Nellikai. Challakai, etc., which are also easily available in the region at reasonable rates. In the
initial stages, our organization a rural industry faced many problems like Labor, Raw-materials
etc., which a small-scale Industry is bound to be faced. But after some time it succeeded in
overcoming all the hindrances, which came one after -one, across in its progress. And the
industry today is famous in manufacturing pickles in the name M N pickles which are in
qualities and in reasonable price. M N Pickles, are available all over Karnataka and also have
got the permission to sell the pickles to other states of the country and abroad.

Started this business as a small scale industry. He is responsible for overall development of the
business, the primary aim is to manufacture and market pickles of various types with the brand
name M N Pickles.

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INCEPTION OF THE COMPANY

Way back in 1982, our founder Shri Masur Narayanappa started it right from home with
humble 200 kilos of pickles having a great vision to reach people of India with mouthwatering,
lip smacking pickles. Now reaching its best and growing further our annual production has
crossed 1200 tons. Situated at Siralakoppa, Shikaripur taluk of Shimoga district in Karnataka,
we manufacture all the products hygienically using advanced machinery and technology. We
stand by our motto, procuring raw materials, locally grown fruits and vegetables from local
farmers, employing local people, and manufacturing quality products. We’ve outsourced export
of our products to USA, Canada, Britain, Malaysia, Singapore, and Austria, UAE, New
Zealand and various other countries.

NATURE OF THE BUSINESS

 A pickles is specialties of the India and assumes important position in the Indian
cuisine.

 Pickles enhance the tastes of the meal and increase the satisfaction after every meal.

 They are an integral part of any Indian diet.

 Pickles are prepared from fruits and vegetables and they supplement the food with
vitamins and minerals.

 They are generally spicy but some are sweets also. They are table enriches.

VISION, MISSION & QUALITY POLICY

VISION:

 To Become Smart Spices Manufacturing Company.

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MISSION:

 To serve customers with good quality products

manufactured with good manufacturing practices.
 To give justice to farmers by giving right value to their agricultural products.

 To generate rural labor and women empowerment.

 To procure locally available rare fruits and vegetables.

Tag line

Khao Ek Baar….! Maango Baar Baar….!

QUALITY POLICY

M N Pickles register under the FSSAI license: 1001204300178.

(FSSAI it means “FOOD SAFETY and STANDERD AUTHORITY OF INDIA”.)

In M N PICKLES at every stage, core is taken to ensure that the customer gets the products,
which have a very high quality hence there is a separate department called quality department
cohere the quality testing is done there is a separate laboratory for this quality control is very
essential as to maintain the fresh of food, all the containers, pipes and other equipment’s in QC
are washed with hot water before starting off with new quality check. There are many tests
conducted here

PRODUCTS/SERVICES PROFILE

At all leading wholesalers and retailers.

MN Pickles products are sold through a strong and well-knit network of distributors,
wholesalers and retailers across the state of Karnataka. Most of these sales associates have been
our loyal business partners for years. We also have our own flagship retail outlets under the

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brand name “MN Pickles” at district and taluk headquarters across the state.

You will also come across our mobile sales vans promoting our products at important market
places in every district. We also have plans to expand our marketing and distribution network
to other states in South India. 25 Omni cargo vans 4 Canter Vehicle TATA Ace TATA 407
Mobile sales mopeds and bicycles.

PRODUCTION PROCESS AS FOLLOWS.

Raw Material

Dumping

Chopping

Storage Him

Batching

Mixing

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 Raw material godown (RMG):- raw material godown is an area which has storage
facility for all types of raw materials which are required for production of pickle and
spices production.

 Dumping: - Dumping the raw materials for purification through the electronic chain
conveyer system, two materials can flow for purification through electronic chain
conveyer at a time.

 Chopping: - The fresh vegetables and mangos are chopped by the labors.

 Storage Bins: - Bins are the systematic part of the production where the chopped
materials are stored.

 Batching: - Batching is the process where the raw materials are stored separately in bins.

 Mixing :- After completion of batching the chopped raw materials will be mixed
thoroughly as per requirement,

 Sample test: - sample test has been conducted after the clearance from quality control
department the materials are taken for cooling and storing.

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 Packaging: - The packaging is a process where the final products will be weighted for
200g, 1/2kgs, 1kg, and 5kg and packed through into packing machine and manually.

 Storage: - The packed pickles are stored in the warehouses.

 Distribution: - The loaded boxes are stored in warehouses and they are dispatching
through various vehicles for final distribution to customer and retailers.

Product

M N Pickle is famous for pickles. It produces 42 varieties of pickles and different type
of chutneys, masala items and different type of kashaya powders.

 Mango pickle

 Gongura pickle

 Cabbage pickle

 Tamato pickle

 Cucumber pickle

 Fried pickle

 Swede pickle

 Beetroot pickle

 Nellikai chutney

 Red chilies

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 Tamarinde pickle

 Green soubrette

 Yerate pickle

 Goni pickle

 Appe midi pickle

 Bamboo pickle

 Dried mango pickle

 Shredded mango pickle

 Challkai pickle

 Nellikai pickle

 Green tamarind pickle

 Lemon pickle

 Mixed pickle

 Tender pickle

 Armana pickle

 Garli pickle

 Garlic pickle

 Green tamarind

 Mangali root pickle

Masala, Herbal, Beverages and Spicy Powder

 Rassam powder

 Samber powder

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 Curry leaves powder

 Kashaya powder

 Garam masala powder

 Pepper powder.

 Chili powder

 Mixed chutney

 Fried garam

 Lin seedagase

 Groundnut powder

 Gurellu powder.etc

Ownership Pattern

MN Pickles is a family owned business. The company has seen three decades of successful
operation and holds a special place in markets across Karnataka. It had a humble beginning in
1983 when its founder, Mr. Masur Narayanappa, began selling homemade pickles in
Shiralakoppa and adjoining markets in Shimoga. There was something special in the recipe that
made it an instant hit. So, thus was born the brand, “MN Pickles”.

HIERARCHY

FOUNDER

MANAGING
PARTNER
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FOUNDER

Shri Masur Narayanappa (MN)

Managing Partner

Shri. M N Ramachandra Shetty

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Partner 1

Smt. M R Manjula

Partner - 2
Shri. M R Sathish

Partner 3

Shri. M R Girish

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AWARDS AND ACHIEVEMENTS

Sir M VISVESHVARAYYA award for excellence by Shimoga District Chamber of Commerce

FUTURE GROWTH AND PROSPECTS

 To establish the varieties of new spices and pickles to fulfill consumers tastes
preferences.

 Betterment of infrastructure and expansion.

 To increase the production and sales of our product towards international level.

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SWOT ANALYSIS

Strengths Weaknesses

1. Groups are homogenous. 1. Group’s overdepend- ence on facilitator.

2. Illiteracy level high

2. Groups save regularly.
3. No participation
3. Enterprise issues discussed in group.
4. No skills
4. Skill levels of group members high.
5. No resources
5. Dependence on money -lenders declining

Opportunities Threats

1. Availability of Government funds, cooperation 1. Inter-group cooperation low

low
2. Training Centre exists in 2. Enterprise work increases burden on
neighbourhood women

Training and capacity building not given importance

3. Demand for product Group formation not strong
Existence of competitors

No competitors
Easy access to market. Enterprise work increases burden on women
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MCKINSKY 7’S FRAMEWORK

The McKinsey 7S Framework is a management model developed by well-known business

consultants Robert H. Waterman, Jr. and Tom Peters in the 1980s. This was a strategic vision
for groups, to include businesses, business units, and teams. The 7 Ss’ are structure, strategy,
systems, skills, style, staff and shared values.

The model is most often used as an organizational analysis tool to assess and monitor changes
in the internal situation of an organization.

The model is based on the theory that, for an organization to perform well, these seven
elements need to be aligned and mutually reinforcing. So, the model can be used to help
identify what needs to be realigned to improve performance, or to maintain alignment (and
performance) during other types of change. The basic premise of the model is that there are
seven internal aspects of an organization that need to be aligned if it is to be successful.

Structure

Strategy system

Shared Values
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1. STRUCTURE:-

The way in which the organization’s units relate to each other: centralized, functional divisions
(top-down); decentralized; a matrix, a network, a holding, etc.

Structure is a basic framework within which managers decision making behavior take place.
Structure basically deals with relationships. The organization structure can be viewed as an
established pattern of relationship among the components of the organization. Design of basic
structure involves such as issues as how the work of the organization will be divided and
assigned among various positions, groups, etc.

Managing partner
Partner 01
Partner 02
Partner 03

General Manager
AdministrationFinance Purchase DepartmentStores Department Production Department
Quality control
DepartmentDepartment

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The M N PICKLES is directly controlled by the family owned business. The functional
structure of M N PICKLES is appropriate for an organization with several product lines.

The M N PICKLES has the following department structure as follows:-

 Administration department

 Finance department

 Purchase department

 Stores department

 Quality control department

ADMINISTRATION DEPARTMENT

The administration department controls the overall functioning of the organization. The

organization consists of the following 3 levels.

 Managerial level includes managing Director, Deputy Manager, and Assistance manager.

 Supervisory level included technical officers and supervisors.

 Workers level includes labors and helpers.

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The Administration Department Has The Following Structure

data entry operator

admin assistant 1

helpers

general manager
time keeper

canteen
admin assistant 2

security

transportatio n

The administration department also handles canteen, security and time keeping machine.

1) Time keeper: - this department records the working hours of the employees. Time
machine shows the entry time and exist time of each employees the workers decided
into different shifts control the working of the department. Each employee are
authorized for MACHINE, whenever an employee enters the promise he has to punch
finger in the time machine and before living the premise he has to do the same based on
this attendance, canteen bills are charged, wages are fixed and deduction are made

.
2) Canteen: - there is a canteen in the premises itself. The employees are provided lunch,
tea, etc... At reasonable rates. The canteen is handled by the canteen in charge.

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3) Security department: - the M N PICKLES occupies 03 acres of land the whole premise
is been guarded by the security persons. The security people work in 2shifts, all the
vehicle are checked before entering the premise, the department is also maintains
separate registers like store-in register attendance register etc.

The structure of finance department is as shown.

General Manager

Account officer

Account assistant

Helpers

This department is responsible for keeping all the inward and outward flow of money of union.
It prepares budget every year and financial rules for receipts and payments are framed. The
functions of these departments are;

 To provide monthly account (receipts and payments account profit and loss account and
balance sheet).

To prepare quarterly financial statement

 To prepare integrated business plan.

 To get accounts audited from statutory books of accounts. M N PICKLES follows two
types of auditing.

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1. Pre-audit system done by finance and Accounts department every year.

2. Statutory system done by private charted accounts every year.

STORES DEPARTMENT
The structure of this department is as shown.

General manager

Stores officers

Stores superintend

Assistants

Helpers

Stores department helps the production by supplying adequate raw materials purchased under
E-procurement of Government of Karnataka. The stores department maintains the records of
purchased raw materials and sold finished goods. Store department has large and cleanly
maintained go downs which are used for storing the raw materials and finished products.

• It tries to maintain maximum and minimum level of inventory so as to avoid blockage of

capital and storage.

• Ordinary and local available commodities are maintained at minimum possible level.
• Items of urgent and not easily available are stored sufficiently for further demand.

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PURCHASE DEPARTMENT

The structure of purchase department is as follows

General Manager

Purchase officer

Assistants

Helpers

The main work of this department is to purchase various materials required by different
department, after ascertaining the stock position by stores department and indent is sent by
different department duly approval by the purchase officer. This department act to purchase
materials.

PRODUCTION AND PROCESS DEPARTMENT

The production staff chart is as follows

The main objectives of this department is to follow up production schedule as per plan and to
maintain close and co-ordinate relationship with other department and ensures to upgrade the
technical efficiency of production Pickle and spices. Production department is well equipped
and has various types of highly sophisticated machines imported from other countries once the
required raw materials are collected from farmers those will be tested and cleaned for better
quality

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QUALITY CONTROL DEPARTMENT

In M N PICKLES at every stage, core is taken to ensure that the customer gets the products,
which have a very high quality hence there is a separate department called quality department
cohere the quality testing is done there is a separate laboratory for this quality control is very
essential as to maintain the fresh of food, all the containers, pipes and other equipment’s in QC
are washed with hot water before starting off with new quality check. There are many tests
conducted here

SYSTEM:-

Day to day management systems at the managerial level procedural measures to be set in place
along with frequent feedback and reports given at the subordinate level to provide knowledge of
results. Along with rewards and incentives to tie in performance to alignment to objectives

STYLE:-

The cultural style of the organization and how key managers behave in achieving the
organization’s goals Culture of M N Pickles - Forward looking and driven, emphasizing
oneness. One company. One team. One passion.

As One Company, meaningful and accelerated learning opportunities are provided to staff to
contribute to the greater good of M N Pickles.

One Team, M N pickles ties in relationships built to career success.

One Passion goes farther than the portfolio of brands, to sustainability, and supporting the
communities and preserving and protecting the planet.

 The M N PICKLES has follows top to bottom or top down style system.

 The styles of the organization is said to follow the participative type that is the

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management cadre follow the participative type of administration. The fact is that for a

manufacturing firm like the M N PICKLES this type of administration is necessary.

The indicators of the style are:-

i) Follows orders, rules and procedure.

ii) Is always reliable, dependable. iii) A watch details / prefers to write out
communication.

STAFF:-

The staffs are nothing but the human resource which is working in our organization, there are
different levels of peoples working in different department they are:-

Training system

The plant emphasizes on training the employees, most of the training given to the employees
here are on-the-job training and few off-the-job training.

i) Basic computer applications

ii) Data base administrator

iii) Finance training for non-finance officers

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SKILLS:-

 Top management

 Middle management

 Supervision

To Import skills, the M N PICKLES conducting training programs which increases the
knowledge and skill of an employees for doing jobs, those are:- 1.on the job training off the job
training, coaching, visible training

Designation Qualification

General manager B.Sc

Assistant manager B.com, M.com

Technical support managers Engineering (B Tech)

Technical helpers ITI

Helpers SSLC,PUC& Uneducated

STRATAGY:-

Formulating appropriate strategies in order to meet the challenges and to develop and
strengthen pickles movements on the following thrust namely:

1. Procurement, processing and marketing

2. Quality assurance program
3. Reasonable pricing

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Pricing decisions are subject to an incredibly complete array of environmental and competitive
forces, we set not to single price, but rather a pricing structure that covers different item in its
line, this pricing structure changes over time as products move through their life cycle, the
organization adjusts product prices to reflect changes in costs and demand and to account for
variation in buyers in any situations. As the competitive environment changes company
considers when to initiated price changes and how to respond to them.

SHARED VALUES:-

Shared values are what engender trust values are the identity by which a company Is known
throughout its business areas. These values bust be explicitly stated as both corporate objectives
and individual values, these are the company level benefits, mindsets and assumptions that
shape how an organization behaves.

The shared values of M N PICKLES are

i) Providing quality products to rural area consumers.

ii)To build competitive environment in retail sector.

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Statement of the Problem

The study has been undertaken in M N Pickles for the purpose of studying its
financial activities to understand and determine the strength and weakness of the
organization and its past performance and present financial condition.

Hence the topic chosen is stated as : “ A study on analysis of the financial performance
by using ratio analysis with special reference to M N Pickles , Shiralakoppa Taluk,
Shivamogga District”.

Need for the Study

Financial statement analysis helps in ascertaining the strengths and weakness in the
operational and financial position of an enterprise. The goal of financial states and
health of the firm.

Objectives of the study.

1. To Know the industry and organizational background of M N Pickles and it financial

highlights.
2. To study the various activities of M N Pickles.
3. To have the practical knowledge about various financial aspects if the organization.
4. The evaluate nature & pattern of society’s liquidity, profitability and solvency.

Scope of the study.

1. The study covers the financial operations of M N Pickles.

2. The study covers the period of 2017-18 and 2019.
3. The study is undertaken at the head office of M N Pickles situated at Shiralakoppa
and not at its branch offices.

Research methodology

 Sources of Data : Project has been completed with the use of various sources of
information as under.
1. Primary Data Source : Primary data was gathered through direct discussion
with concerned people like finance manager and staff of the society.

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2. Secondary data source : This includes the information collected from annual
reports of the society its manuals and financial statements and also collected
information for reports / records, management books, websites, magazines,
etc.

Methods of Data collection :

Personal interview method by following unstructured questionnaire method, is

adopted in this study, for collection of primary data.

Tools and techniques of data analysis:

Few financial tools have been used in this work such as ratio analysis only.

Limitations of the study :

1. This project work is concerned to only one organization, i.e.., M N Pickles

Shivamoga.
2. The study covers only aspects relating to financial performance of the society.
3. They study is based on data pertaining to only past 3 years ending 31 st March
2019.
4. Analysis done here may differ from the analysis done by the society.
5. The study carries the usual limitations of ratio analysis technique.

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CHAPTER - 4

DATA ANALYSIS AND INTERPRETATION

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CHAPTER -4

DATA ANALYSIS AND INTERPRETATION

Financial Ratio Analysis

Liquidity Ratio:

1. Current Ratio:

The current ratio of a unit measures firm’s short-term solvency, that is, its ability to meet short-
term obligations. It is the ratio of total current to the current liabilities. The current ratio
measures the ability of the firm to meet its current liabilities-current assets get converted into
cash in the operating cycle of the firm and provides the funds needed to pay current liabilities.

Current Assets
Formula :CR=
Current Liabilities

Inventories +Sundry D ebtors+Cash∧Bank Balance+ Loans∧ Advances

Current Liabilities+ Provisions

Table : 4.1 Table Showing analysis of current ratio

Year 2017 2018 2019

Current Assets 33058519 31334045 34705679

Current Liabilities 14004720 15914154 17505461

Current Ratio 2.361 1.96 1.98

Source : Annual Report

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Graph No : 4. 1 Graph Showing analysis of current ratio

2.361
2.5

1.96 1.98
2

1.5
Current Ratio

0.5

0
2017 2018 2019

Source : Table No 4.1

Interpretation :-

The above table shows the current assets & liabilities position. When the ratio compared
between the three years in 2017 3.36 ,in 2018 1.96 & in 2019 1.98 there is decrease in the current
ratio year by year. The reason for this may be the liquidity position is not impose.

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2. Quick Ratio

Liquid ratio is also known as acid test ratio or quick ratio. Liquid ratio compares the quick assets
with the quick liabilities. It is expressed in the form of pure ratio. E.g. 1:1 Quick Ratio (QR) is
the ratio between quick current assets (QA) and CL. QA refers to those current assets that can be
converted into cash immediately without any value strength. QA includes cash and bank
balances, short-term marketable securities, and sundry debtors. Inventory and prepaid expenses
are excluded since these cannot be turned into cash as and when required.

Quick Assets
Formula :QR=
Quick Liabilities

Current Assets−Inventories
¿
Current Liabilities

Table : 4.2 Table Showing analysis of Quick ratio

Year 2017 2018 2019

Quick Assets 22553044 23102210 25770923

Quick Liabilities 14004720 15914154 17505461

Quick Ratio 1.61:1 1.46:1 1.48:1

Source : Annual Report

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Graph No : 4. 2 Graph Showing analysis of Quick Ratio

1.65
1.61

1.6

1.55

1.48 Quick Ratio

1.5
1.46

1.45

1.4

1.35
2017 2018 2019

Source : Table No 4.2

Interpretation :-

The above table shows the relationship between Quick assets to Quick liability. Liquidity ratio
are used as indicators of a firm’s ability to meet its short term obligations. From the above table
it is clear that quick ratio of the firm 1.61 the year 2017 and 1.45 in the year 2018.It can be
possible to cover the firms current obligations.

Ideal quick ratio is 1:1 Here the quick ratio of the firm is less than the standard ratio. Hence it
can be concluded that liquidity of the firm is not good compared to previous year.

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3. Profitability Ratios :
i) Gross Profit Ratio :

Gross Profit
Formula :GPR= x 100
Sales

Table : 4.3 Table Showing analysis of Gross Profit ratio

Year 2017 2018 2019

Gross Profit 13545493 15933749 17527134

Sales 50177704 55197475 60817323

Gross Profit Ratio 26.99% 28.86% 29.01%

Source : Annual Report

Graph No : 4. 3 Graph Showing analysis of Gross Profit ratio

29.50%
29.01%
29.00% 28.86%

28.50%
28.00%
27.50%
Gross Profit Ratio
26.99%
27.00%
26.50%
26.00%
25.50%
2017 2018 2019

Interpretation:

From the above analysis of data in the year 2017 the percentage of profit is 26.9% but in 2018
it’s increases 28.8% & in 2019 29.10. So it shows that the gross profit ratio is increased as
compared to the previous year. It is a good sign to the company.

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ii) Net Profit Ratio :

` Net Profit ratio indicates the relationship between the net profit & the sales it is usually
expressed in the form of a percentage. This ratio shows the net earnings (to be distributed to both
equity and preference shareholders) as a percentage of net sales. It measures the overall
efficiency of production, administration, selling, financing, pricing and tax management. Jointly
considered, the gross and net profit margin ratios provide an understanding of the cost and profit
structure of a firm.

Net Profit
Formul a : NPR= x 100
Sales

Table : 4.4 Table Showing analysis of Net Profit ratio

Year 2017 2018 2019

Net Profit 3003129 2371863 2609049

Sales 50177704 55197475 60817323

Net Profit Ratio 5.98% 4.29% 4.59%

Source : Annual Report

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Graph No : 4. 4 Graph Showing analysis of Net Profit ratio

5.98%
6.00%

4.59%
5.00% 4.29%

4.00%

3.00%

2.00%

1.00%

0.00%
2017 2018 2019

Source : Table No 4.4

Interpretation

The net profit margin is indicative of management’s ability to operate the business with
sufficient success not only to recover from revenues of the period. It establishes the relationship
between net profit and sales high ratio indicates the better position of the company. The above
table shows that positive impact on the business net profit ratio is increased from 4.29% to
4.59%.

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iii) Operating Profit Ratio.

EBIT
Formula :Operating Profit Ratio= x 100
Sales

Table No : 4.5 Table Showing analysis of operating Profit Ratio.

Year 2017 2018 2019

EBIT 3030482 2401950 2642106

Sales 50177704 55197470 60817323

Operating Profit
6.03% 4.30% 4.95%
Ratio
Source : Annual Report

Graph No : 4. 5 Graph Showing analysis of Operating Profit ratio

7.00%
6.00%
5.00%
4.00% 6.03%
4.95%
3.00% 4.30%
2.00%
1.00%
0.00%
2017 2018 2019

Interpretation :

This ratio shows the relationship between operating profit and sales. It can be concluded that the
operating profit is increased from 4 .3 % to 4.9 %. It is a good sign of the company. It means the
company has made more profit when compared 2017 & 2018 there is a increase of 0.6%.

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4. Turnover Ratio :

1. Asset Turnover Ratio.

Sales
Formula : Assets Turnover Ratio= x 100
Total Assets

Table - 4.6 Table Showing analysis of assets turnover ratio

Year 2017 2018 2019

Sales 50177704 55197475 60817323

Total Assets 42734065 40970042 42817215

Asset Turnover ratio 1.17 1.34 1.41
Source : Annual report

Graph No : 4. 6 Graph Showing analysis of assets turnover ratio

1.6
1.41
1.4 1.34

1.2 1.17

1
0.8
0.6
0.4
0.2
0
2017 2018 2019

Source : Table No : 4.6

Interpretation :

The above table shows that asset turnover ratio is 1.17 times in the year 2017,1.34 times in the
year 2018 & 1.41 times in the year 2019.In this case the asset turnover ratio is more than one
times of total assets. It is satisfactory to the firm & it generate sales of 1.41 times.

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2. Fixed Asset Turnover Ratio:

This ratio measures the efficiency with which fixed assets are employed. A high ratio indicates a
high degree of efficiency in asset utilization while a low ratio reflects an inefficient use of assets.
However, this ratio should be used with caution because when the fixed assets of a firm are old
and substantially depreciated, the fixed assets turnover ratio tends to be high (because the
denominator of the ratio is very low).

Sales
Formula :¿ Assets Turnover Ratio= Assets ¿
Net ¿

Table No : 4.7 Table Showing analysis of Fixed assets turnover ratio

Year 2017 2018 2019

Sales 50177704 55197475 60817323

Net Fixed Assets 9675546 963599 8111536

Fixed Asset Turnover

5.18 5.72 7.48
Ratio

Source : Annual report

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Graph No : 4. 7 Graph Showing analysis Fixed assets turnover ratio

8
7.48

6 5.72
5.18
5

0
2017 2018 2019

Interpretation :

The ratio measures the efficiency with which fixed assets are employed. A High ratio indicated a
high degree of efficiency in asset utilization while a low ratio reflects an in efficient use of
assets. The fixed asset turnover ratio in the year 2018 5.72:1 & 2019 7.48:1 the company
turnover ratio of fixed asset’s compare to previous year this ratio is satisfactory & fixed asset
contributes more on sales.

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 “ A Study of Financial Performance Through Ratio Analysis With special Reference to M N Pickles”

3. Current Asset Turnover Ratio :

This ratio reveals the relationship between cost of goods sold & current assets. The higher
ratio, the better is the condition of the firm in utilizing its current assets. The higher ratio, the
better is the condition of the firm in utilizing its current assets. The lower ratio indicates that
the investment in the current asset has not bought commensurate gain to the firm.

Net Sales
Formula :Current Assets Turnover Ratio=
Current Asset

Table No : 4.8 Table Showing analysis of Current Asset Turnover Ratio

Year 2017 2018 2019

Net Sales 50177704 55197475 60817323

Current Assets 33058519 31334045 34705679

Current Asset
1.51 1.762 1.84
Turnover ratio

Source : Annual report

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 “ A Study of Financial Performance Through Ratio Analysis With special Reference to M N Pickles”

Table No : 4.8 Graph Showing analysis of Current Asset Turnover Ratio

2
1.84
1.8 1.76

1.6 1.51

1.4

1.2

0.8

0.6

0.4

0.2

0
2017 2018 2019

Interpretation :

In the above table shows the Current Assets turnover ratio is 1.76 in the year 2018 & 1.84 in the
year 2019. It is satisfactory because current asset are contributing more to sales when compared
to previous year.

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 “ A Study of Financial Performance Through Ratio Analysis With special Reference to M N Pickles”

4. Working Capital Turnover Ratio:

This ratio indicates whether the working capital has been properly utilized in making sales or
not. This ratio measures the efficiency with the working capital. It is taken as one of the
short-term solvency of the business. It establishes the relation with the net sales. This ratio
represents the number of times the working capital is turned over in course of the year i.e. it
measures the efficiency with which the working capital is being used by the firm.

Sales
Formula :WorkingCapital Turnover Ratio=
Working Capital

Working Capital=Current Asset =Current Liabilities

Table No : 4.9 Table Showing analysis of Working Capital Turnover Ratio

Year 2017 2018 2019

Sales 50177704 55197475 60817323

Working Capital 19053799 15419891 17200218

Working Capital
2.63 3.579 3.8
Turnover ratio

Source : Annual report

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 “ A Study of Financial Performance Through Ratio Analysis With special Reference to M N Pickles”

Graph No : 4.9 Graph Showing analysis of Working Capital Turnover Ratio

3.79 3.8
4

3.5

3 2.63

2.5

1.5

0.5

0
2017 2018 2019

Interpretation :

In the above table shows that Working capital turnover ratio of the firm was 3.82 in the year
2019 & 3.57 in the year 2018 because the company generates more sales in the year 2019
compare to previous year . So it is satisfactory to the company.

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 “ A Study of Financial Performance Through Ratio Analysis With special Reference to M N Pickles”

5. Inventory Related Ratios :

1) Inventory to Working Capital Ratio

Inventory
Formula : Inventory ¿ Working Capital Ratio=
WorkingCapital

Table No : 4.10 Table Showing analysis of Inventory to Working Capital Ratio

Year 2017 2018 2019

Inventory 10505475 8231835 8944756

Working Capital 19053799 15419891 17200218

Inventory to Working
0.55 0.53 0.61
Capital Ratio

Source : Annual report

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 “ A Study of Financial Performance Through Ratio Analysis With special Reference to M N Pickles”

4.10 Graph Showing analysis of Inventory to Working Capital Ratio

0.6100000000000
01
0.62

0.6

0.58
0.55
0.56
0.53
0.54

0.52

0.5

0.48
2017 2018 2019

Interpretation :

The analysis shows that the inventory to working capital ratio is increased by 0.61 as compare to
previous year the reason for such increases is due to increase in the inventory & decrease in the
working capital.

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 “ A Study of Financial Performance Through Ratio Analysis With special Reference to M N Pickles”

2. Net Working Capital

Formula : Net Working Capital = ( Current Assets – Current Liabilities

Table No – 4.11 Table Showing analysis of Inventory to Net Working Capital

Year 2017 2018 2019

Current Assets 33058519 31334045 34705679

Current Liabilities 14004720 15914154 17505461

Net Working Capital 19053799 15419891 17200218

Source : Annual report

19053799
20000000 17200218
18000000 15419891
16000000
14000000
12000000
10000000
8000000
6000000
4000000
2000000
0
2017 2018 2019

Interpretation :

In the above table shows the net working capital in the year 2019 is Rs. 17200218 & in the year
2018 is Rs 15419891. So when compared to previous year working capital is better in the year
2019.

3. Inventory Turnover Ratio.

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 “ A Study of Financial Performance Through Ratio Analysis With special Reference to M N Pickles”

Every firm has to maintain certain level of inventory of finished goods, so as be meeting the
requirements of the business. The inventory turnover reflects the efficiency of inventory
management. The higher ratio reflects more efficient the management of inventories and vice
versa’. This ratio establishes relationship between cost of goods sold during a given period of
time and average amount of inventory held during that period.

Cost of Goods Sold

Formula : Inventory Turnover Ratio=
Average Inventory

Table No – 4.12 Table Showing analysis of Inventory Turnover Ratio.

Year 2017 2018 2019

Cost of goods sold 36632211 39263726 43290099

Average Inventory 10867721 12986199 14184819

Inventory Turnover
3.37:1 3.02:1 3.92:1
Ratio

Source : Annual report

4.12 Graph Showing analysis of Inventory to Working Capital Ratio

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 “ A Study of Financial Performance Through Ratio Analysis With special Reference to M N Pickles”

3.92
4
3.37
3.5 3.02

2.5

1.5

0.5

0
2017 2018 2019

Interpretation :

In the above table shows that in the year 2017 the inventory has been turned out 3.37 times & in
the year 2018 decreases to 3.02 times because in an average inventory has been increased to 3.92
times in the year 2019 because of increases in average inventory.

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 “ A Study of Financial Performance Through Ratio Analysis With special Reference to M N Pickles”

CHAPTER – 5

FINDINGS, SUGGESTIONS AND CONCLUSION

CHAPTER – 5

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 “ A Study of Financial Performance Through Ratio Analysis With special Reference to M N Pickles”

FINDINGS AND SUGGESTIONS

This chapter present the summary of Observations made during the study. Further the
suggestions in this chapter for improvement of “A Study of financial performance through Ratio
analysis with special reference to M N Pickles.

the chapter also present say formal conclusion.

The Chapter deals with analysis and interpretation of secondary data collected M N Pickles , the
objective of the chapter is to examines effective and efficiently of using ratio analysis in M N
Pickles costing ltd. The following are details of analysis and interpretation of data.

 Current ratio shows that it has increased by 0.02 as compared to previous year.
 Quick ratio shows that it has increased by 0.02 as compared to previous year.
 Error profit ratio is by increased 28.8 % to 29.8 % from 2018 to 2019.due to increase in
sales.
 Net profit ratio is increased by 4.29 % to 4.59 % from 20178 to 2019.due to increase in
net sales.
 Operating profit ratio is increased from 4.30 % to 4.95 % from 2018 to 2019. It means the
company has made more profit when compared between 2018 & 2019. There is a
increase of 0.65%.
 Asset turnover ratio is increased from, 1.34 times to 1.41 times. It indicated the efficiency
in the use of total assets.
 Fixed asset turnover ratio is increases 5.27 to 7.48 from 2018 to 2019 due to increase in
sales every year (income more than 11 lakh).
 Current asset turnover ratio is increased from 1.765 to 1.84 from 2018 to 2019 & it is
satisfactory the reason for such increase is due to more contribution by the current assets
in the year 2019.
 The working capital turnover ratio has increased from 3.82 to 3.57 from 2019 to 2018.
Due to increase in sales.
 Inventory to WCR increase from 0.53 to 0.61 from 2018 to 2019 due to increase in
working capital & decrease in inventory.
 Net working capital is increased from 15419891 to 17200278 from 2018 to 2019.

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 “ A Study of Financial Performance Through Ratio Analysis With special Reference to M N Pickles”

 Inventory turnover ratio is increased from 3.02 to 3.91 compare to 2018 to 2019. Due to
decrease in cost goods sold in the year 2019.
 Inventory holding period has increased from 2.96 to 3.96, the month from 2018 to 2019.

CONCLUSION

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 “ A Study of Financial Performance Through Ratio Analysis With special Reference to M N Pickles”

The Pickles -manufactured in India often incorporate the most advanced features of technology
from all over the world, which are effectively engineered to deliver the required functional
capabilities to the customer.

M N Pickles Industry, it is the profitable product manufacturing company. This company has
great future in both national and international level. Materials constitute an important, ingredient
inputs to the activities of several types of organizations. Industries required raw materials,
components and equipments for their production, service organization requires supplies, and
spare parts are required for maintenance operations, and so on. In most of the organizations, the
value of raw materials as compared to other inputs to the system is high.

With the increasing complexities in materials characteristics and their usage vis-à-vis increasing
competition, the purchasing function has emerged as a specialized organizational activity. In
many organizations, it is regarded supportive functions.

A analysis of financial statements with ratio analysis helps in a way to monitor and improve the
performance of the company. By analyzing the overall performance of the company with the
help of financial statements it can be said the company is efficiently working and has met its
financial strength.

Even though it is very difficult to identify and analyze some of the factors contributions to the
difference in ratios, the performance of the company can be understood and well help on
knowing the strategies which in turn well help the company to improve its market share.

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 “ A Study of Financial Performance Through Ratio Analysis With special Reference to M N Pickles”

ANNEXURE

 FINANCIAL STATEMENT

 BIBLIOGRAPHY

P&L A/C for the year ended as on 31//3/17 to 31/3/19

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 “ A Study of Financial Performance Through Ratio Analysis With special Reference to M N Pickles”

Particulars 31/3/17 31/3/18 31/3/19

Income:

Sales 49664317 54630749 65193924

Other income 513387 566726 6233399

1. Net sales 50177704 55197475 60817323

a) Direct materials:
Opening stock 9721381 10693519 11762874
Purchase 2193260 2412586 2653845
(-) Closing Stock 1146340 2292680 25211948
Total direct Materials 10768301 10813425 11894768
R.M consumed 25863910 28450301 3129533
Cost of Production 36632211 39263726 4319009
GROSS PROFIT 13545493 15933749 17527124
b) Expenses
Salary expn 1786623 1965285 2161814
Factory &G.Expn 2223378 4411001 4852101
Elections repairs Power 893312 982643 1080907
charges 2679936 2947930 3242723
Office expn& Salary 1339967 1473964 162160
Deprecation 1591795 1750975 19216073
Total expenses. 10515011 13531798 14884978

2. Total cost [a+b] 47147222 52795524 5807507

Profit before tax [1-2 ] 3030482 2401951 2642146

(-)Tax 27353 30088 33097
NetProfit [After tax] 3003129 2371863 260904
Amt available for approach (9900) (10890) 11979
Bal carried to balance 2993229 2360973 2597070
Sheet

Balance sheet as on 31/3/17 to 31/3/19

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Particulars 31/3/17 31/3/18 31/3/19

A. Equality & liability
1. Share holder fund 9689900 9706400 9706400
a) Share capital total
2. Loan fund
a) Secured loan 16198472 21007333 17969954
b) Unsecured loan 6657458 1823186 1290760

Total 32545830 32536919 28967114

B. Assets
1. Fixed assets 9675546 9635997 8111536
2. Current assets :
a) Inventories 10505475 8231835 8934756
b) Investment &deposit 1541269 2171650 1529350
c) Sundry debtor 8404710 8372224 9696630
d) Cash at bank 12607065 12558336 14544943

Total current asset 33058519 31334045 34705679

(-)current liability:
a. sundry creditor 5601888 63365661 7002185
b. salary payable 3501180 3978539 4376366
c. tax payable 4901652 5569954 6126910

Total current liability 14004720 15914154 17200218

Net working capital 19053799 15419891 17200218

Miscellaneous expn 217573 2324763.5 267658

Differed tax asset 605683 2795294.5 790632
P& L A/C 2993229 2360973 2597070
Total 32545830 32536919 28967114

BIBLIOGRAPHY

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 “ A Study of Financial Performance Through Ratio Analysis With special Reference to M N Pickles”

 www.mnpickles.in

 [email protected]

 Facebook – mnpickles

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