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Introduction
Of
Mitchells Fruit Farm
Limited
1 Financial Analysis of Mitchells Food Farm

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INTRODUCTION
Mitchell's Fruit Farms Limited is the oldest and most trusted Food Company in
Pakistan. Since starting its operations in 1933, the Company has gone from
strength to strength. Modern high-volume industrial equipment, professional
management and a trained workforce all combine to ensure that Mitchell’s
continues its dominance as the innovator, market leader and trend setter. In this
regard a major step was taken in 1998, when Mitchell’s became the first food
company in Pakistan to achieve ISO 9001 ACCREDITATION, thus becoming more
competitive on the international stage also.
Today the Mitchell’s family continues to grow, reaching more and more households
worldwide with an ever-increasing array of farm-fresh products ranging from
 Thirst-quenching Squashes & Syrups;

 Fruity Jams, Jellies and Marmalade;
 Rich Tomato Ketchup & savory Sauces;
 Tasty Pickles; refreshingly nutritious Canned Fruits & Vegetables;
 And a wholesome assortment of Candies & Chocolate from its wide range of
confectionery products.
Institutional Clients
Mitchell’s has successfully catered to the demands of its prestigious clients such as
the Pakistan International Airlines (PIA), leading five star hotels and clubs, Utility
Stores Corporation, Canteen Stores Department, main stores and reputed
restaurants in major cities.

Foreign Licenses
In recognition of its dedication to quality and technical expertise, Mitchell’s was

also given proprietary rights by L. Rose and Company Ltd. of England in 1946 to
become the sole manufacturer and distributor of their world famous Rose’s brand
of Lime Juice Cordial and Lime Marmalade in Pakistan and Afghanistan.


History
Of
Limited

HISTORY
PHASE I: BEFORE INDEPENDENCE...
Francis J. Mitchell arrived in Bombay from Scotland at the end of World War I. He
had been invited by his brother who was already established in North Western
India as contractor to the government for construction of the railway network in
this part of the subcontinent. At that time, when Francis was already an old man of
over sixty years, an opportunity came his way in the form of the emerging
irrigation system being laid out in the canal colony districts of West Punjab. He
was successful in obtaining the lease of 720 acres of agricultural land in the then
Montgomery district. The area allotted to him extended for nearly seven miles from
Renala Khurd to Kissan, sandwiched between the arterial lower Bari Doab Canal
and the Lahore/Karachi railway.
He initiated the business of growing grapes for eventual sale as dried raisins and
sent his younger son Richard to Australia for training at Mildura which was well
known as a center of specialization in the field of horticulture.
The Company, with Francis Mitchell as its Governing Director and his two sons
Leonard and Richard as Directors, was incorporated in 1933 and given the name
Indian Mildura Fruit Farms Ltd. The North Western Railway had opened to traffic a
few years before the acquisition of the land by the Mitchell family. Francis Mitchell
was asked by the railway authorities to propose a name for the adjoining station.
Hence the word "Kissan" which subsequently became a familiar brand name.

The trial planting of grapes, which began in 1921 and lasted until 1924,
unfortunately did not prove to be a success. The vines suffered serious damage
from pests during the rainy season, just when the grapes needed dry weather for
ripening. The entire plantation was replaced with citrus, which, fortunately,
proved to be profitable. The elder son, Leonard, was sent specially to South Africa
to look for good rootstock, which was the foundation of Valencia orange trees these
are well established on the farms today. With the outbreak of World War II,
demand for canned fruits and vegetables for the allied troops, stationed in India,
began to grow rapidly. To cost-effectively cater to this growing demand, a factory
was established in Bangalore, South India. A new joint-stock company by the name
of Kissan Products Ltd. was registered.
PHASE II: AFTER INDEPENDENCE

As a sequel to Independence in 1947, Indian Mildura Fruit Farms Limited lost
nearly 75% of its Indian market. The company's name was changed to "Mitchell's
Fruit Farms (Pvt.) Ltd." and the brand name "MITCHELL'S" became the exclusive
property of the Pakistani company. Likewise, the Indian company acquired
exclusive use of the "KISSAN" brand name. Francis Mitchell died in 1933 and his
elder son, Leonard, became Chairman. After his brother's tragic death in an air
accident, Richard took over the chairmanship in 1949 and continued in this
capacity until his death in 1987. The family sold its shares gradually, having
inducted Pakistani shareholders in 1957, and retired to Eastbourne, U.K., in 1959.
Richard's wife, Betty, retained her links with the Company in the capacity of
Director until 1991. She died in 1995.


Vision &
Mission
Statements

VISION STATEMENT
MITCHELL's VISION is to provide its customer with

healthy, innovative and best quality food that will
tempt their appetite at all times. Above all, Mitchell’s
also promise convenience & variety at affordable
prices.

MISSION STATEMENT
 To be a leader in the markets we serve by providing quality products and

efficient services to our consumers while learning from their feedback to
set even higher standards for our products.
 To be a company that continuously enhances its superior technological

competence to provide innovative solutions and superior products as per
requirement of the market place.
 To be a company that attracts and retains outstanding people by

creating a culture that fosters openness and innovation, promotes
individual growth, and rewards initiative and performance.
 To be a company which combines its people, technology, management

systems, and market opportunities to achieve profitable growth while
providing fair returns to its investors.
 To be a company that endeavors to set the highest standards in

corporate ethics in serving society.

Corporate
Philosophy
The success of Mitchell’s brands is the result of the corporate emphasis

laid upon Quality Control reinforced by Research & Development. The R
& D section prepares new recipes and formulations whereas the QC
section ensures selection of the finest fruits and error free processing
and packaging, thus ensuring that all products live up to the
consumers’ high expectations.
Human Resource is also of the pivotal importance for the management

and employee skills are constantly being updated through training
courses and study tours both at home and abroad.


Departments
Of
Limited
Departments of Mitchells
Fruit Farm Limited
Following are departments at Mitchell’s food Farm limited
1. Human Resource Department

2. Commercial Department
3. System Department
4. Finance Department
5. Production Department
6. Planning and Stores Department
7. Technical Services Department
8. Quality Control Department
9. Marketing Department

Human
Resource
Department
Production
Department
Finance Marketing
Department Department
Planning Technical
and Stores Services
Quality
Control Commercial System
Department

Products
Of
Limited
Jam, Jellies & Marmalade:

Mitchell's ensures that you enjoy the delicate taste and flavour of the finest fruits of
nature the whole year round with its Jam, Jellies and Marmalade.
“No artificial colour and no artificial flavour is our motto!”
Therefore, our range of fruit preserves is made from the finest, most delicious,
sun soaked, freshly plucked apples, apricots, cherries, guavas, mangoes,
pineapples, raspberries, strawberries and black currant. Processed under strict
hygienic conditions and according to recipes perfected by experts over
decades - Mitchell's products retain the natural aroma, flavour and taste of fruits
and preserve the best in nature. With MITCHELL'S you get much more - both in
quality and in quantity!

AVAILABLE PRODUCTS IN JAM & JELLY:

 Apple jelly junior
 Apricot jam
 Mango jam
 Mixed fruit jam
 Plum jam
 Black currant jam
 Strawberry jam
 Pine apple jam
 Chocolate spread jam
 Pineapple jelly
 Raspberry jelly
 Rose's lime marmalade
 Strawberry jam junior
 Strawberry jelly
 Golden apple jam
 Golden mist marmalade
 Old English marmalade
TOTAL PRODUCTS: 20

Squashes & Syrups:

 Want a refreshing and natural drink?
 Tired of the same old sherbets?
“Get refreshed with Mitchell's squashes”
Just the right thirst quenchers for you and your family. Processed from fresh and sun
ripened fruits especially grown on our orchards in renala, we offer you a range of
energising natural fruit flavours that promise to liven up your day.
AVAILABLE PRODUCTS
IN SQUASHES & SYRUPS:
 Lemon squash
 Lime cordial kissan
 Mango squash
 Orange squash
 Pineapple squash
 Mixed fruit squash
 Strawberry squash
 Apple squash
 Banana squash
TOTAL PRODUCTS: 22

Ketchup & Sauces:

Prepared from selected, ripe, fresh tomatoes, chillies, garlic and ginger, under
strict hygienic conditions, our range of sauces is a culinary treat and includes a
host of great tasting concoctions from the ever popular, favourite of the young and
old, Tomato Ketchup to the hottest new addition - the Hot & Sweet Sauce. Our
sauces line is not only a local favourite but is also rapidly gaining a market abroad.
“SPICE UP YOUR LIFE

WITH MITCHELL'S
RICH SAUCES - JUST
WHAT EVERY SNACK
NEEDS!!”
Mitchell's has launched its
existing Green Chilli sauce in
800gms glass bottles for the
convenience and economy of its
consumers. Now you can have
even more chilli experience than
before.
Mitchell's has introduced a new

variant of Ketchup with the
name of
"MITCHELL'S YUM! KETCHUP"

The delicious ketchup will be an
excellent treat for the
consumers in economical price.

AVAILABLE PRODUCTS IN
KETCHU
P&
SAUCES:
TOTAL
PRODUCTS: 20

 Green chilli sauce
 Ginger paste
 Ginger garlic paste
 Garlic paste
 Cooking paste
 Chilli garlic sauce
 Mile sauce
 Mango chutney
 Mexican salsa
 Plum chutney
 Tomato ketchup
 Hot & sweet sauce
Canned Food
For those conscious of time and quality, our range of canned fruits & vegetables
remains the favourite. Our ready-to-use products bring convenience along with
taste to every kitchen. Mitchell's offers a pure and consistent quality throughout
the year whether it is the "in season" or not.

AVAILABLE PRODUCTS IN CANNED FOOD:

 Chick Peas
 Chick Peas Curry
 Fruit Cocktail
 Garden Peas
 Golden Sweet
Corn
 Sarson Ka Saag
 Spinach Puree
 Sweet Corn
 Tomato Puree
TOTAL
PRODUCTS
: 19

CANNED FOOD

Fruit Drinks:
Natural juices are enjoying steady demand, replacing traditional carbonated soft
drinks consumption. So seeing this phenomenon Mitchell's launched Fruit Drinks
(Ready-to-Drink) with pure fruits' pulp & concentrates to give its consumers
maximum satisfaction. It is a
good source of energy along
with refreshing taste.
AVAILABLE
PRODUCTS IN
FRUIT DRINKS:

 Mango Fruit Drink
 Lemon Fruit Drink
 Orange Fruit Drink
 Apple Fruit Drink
 Leeches Fruit Drink
TOTAL PRODUCTS: 13
Pickles & Vinegar:

We can safely vouch for the fact that no meal is complete without Mitchell's
Pickles!
Our pickles are a delicate assortment of fruits and vegetables matured through
natural processes, and carefully selected spices, made in a truly traditional way
and carrying an authentic homemade flavour. New, mouth watering recipes are
constantly being formulated to complement the existing range

sHyderabadI Pickles are a delicate assortment of fruits and vegetables matured

through natural processes, and carefully selected spices, made in a truly
traditional way and carrying an authentic homemade flavour. New, mouth
watering recipes are constantly being formulated to complement the existing
range.
AVAILABLE
PRODUCTS
IN PICKLES &
VINEGAR:

 Chilli & Lime Pickle
 Garlic Pickle
 Green Chilli Pickle
 Lime Pickle
 Mango Hyderabadi Pickle
 Mixed Hyderabadi Pickle
 Mixed Pickle
 Synthetic White Vinegar
 Carrot Pickle
 Garlic Pickle
TOTAL PRODUCTS:17
Bottled Water:
With changing needs of consumers and their shifting towards hygienic products,
like bottled drinking water, Mitchell's launched Natural Drinking Water, Balance

AVAILABLE PRODUCTS IN BOTTLED WATER:
Mitchell's Balance
1500 ml 500ml
CHOCOLA
TES
TOTAL PRODUCTS: 22


AVAILABLE PRODUCTS IN CHOCOLATES
 Anniversary
 Discoveree
 Festival
 Golden Hearts
 Jubilee (Maxi)
 TopMilk Fruit &
Nut
 Luxuree
 Unitee (Smart
Pack)
 Silver Hearts
TOTAL PRODUCTS:22

Sugar Confectionery:

AVAILABLE PRODUCTS IN SUGAR COATED

CONFECTIONARY:
 ButterScotch
 Coconut Affair
 Fresh n Cool
 Fruit Bon Bons
 Fruit Yum
 Milk Chocolate Eclairs
 MilkToffees
 Super MilkToffees
TOTAL PRODUCTS
:10

Fruit Punch
Extending its existing product line of Fruit Drinks, Mitchell's has introduced an
irresistible combination of Fruits in a drink as Mitchell's Fruit Punch. So, now can
enjoy the taste of not only one but many fruits in a single drink.
Fruitica Orange (Instant

Drink)
Keeping in view the
increasing demand of
powdered drinks, Mitchell's
has launched its powder
instant drinks range in 25gm
Sachets. The ideal thirst
quenchers will be available
in Orange flavour.

Fruitia Lime
(Instat
Drink):
Keeping in view the increasing demand
of powdered drinks, Mitchell's has
launched its powder instant drinks
range in 25gm Sachets. The ideal thirst
quenchers will be available in Lime
flavour.
Yum! Ketchup
Stand-up
Pouch:
Mitchell's has launched its existing Yum!
Ketchup in 500g stand-up pouch for the
convenience and economy of its
consumers.

Top Milk Fruit

& Nut:
A superb combination of Fruit & Nuts with
Milk Chocolate to indulge your sweet-tooth.
Luxuree 30g:
Enjoy a taste of the exotic tropical! Luxuree is a
wonderful treat consisting of a pure, white coconut
core
wrapped
in rich,
milky
smooth chocolate
Apple Jelly
Junior
Mitchell's has launched its classic
preserves in smaller packaging, i.e., 200g

Jars, so that you can enjoy more

flavours in lower price.
Golden Mist
Marmalade
Junior:
preserves in smaller packaging, i.e., 200g
Jars, so that you can enjoy more flavours in lower price.
Strawberry
Jam Junior:
preserves in smaller packaging, i.e.,
200g Jars, so that you can enjoy more
flavours in lower price.

Hot & Sweet

Sauce
Neither too sweet nor too spicy,
Mitchell's has introduced a delicious
combination of Tomatoes and Chillies
with the name of Mitchell's Hot & Sweet
Sauce.
Synthetic
White
Vinegar:
In addition to its pure Fruit Vinegar,
Mitchell's is also launching Synthetic
White Vinegar, which can be taken with

soups and garnishing of salads. Moreover, it

can be used from being a food enhancer or
condiment, to meat tenderizer and natural food
preservative.
Lychee Fruit
Drink:
Mitchell's Fruit Drinks are made from real
fruits picked from its own gardens that will
refr
esh
your body and soul. Keeping in view
the increasing demand of fruit drinks
flavours, Mitchell's has launched
another refreshing flavour, Lychee
Fruit Drink, in its respective category.
Jaam-e-
Hayat:
Keeping in view the growing demand
of Red Syrups, Mitchell's has launched

New Red Syrup in 810ml and 1.5Litres Pet

Bottles. Be ready to taste the refreshing
experience.
Apple Fruit
Drink:
Mitchell's Fruit Drinks are made from real
fruits picked from its own gardens that will
refresh your body and soul. Keeping in view
the increasing demand of fruit drinks flavours, Mitchell's has launched another
refreshing flavour, Apple Fruit Drink, in its respective category.
Mixed
Hyderabadi
Pickle:
We can safely guarantee for the fact that no

meal is complete without Mitchell's Pickles!
Hyderabadi Pickles are a delicate assortment

of fruits and vegetables matured through
natural processes, and carefully selected
spices, made in a truly traditional way and
carrying an authentic homemade flavour.
New, mouth watering recipes are constantly
being formulated to complement the existing
range.
Spinach Puree:
Spinach Puree is made from the freshest
spinach leaves and packed in tin can. Open
the can to cook and prepare a delicious meal
with either vegetables like Potatoes, or with meat. You just need to add spices and
oil to cook. It can be eaten with Bread, Paratha or Rice.
“Spinach Puree is packed in 800gms cans

for the pure convenience of consumers.”
Anniversary:
To commemorate the company's
Platinum Jubilee, we take great pride in

the launch of Anniversary - a delectable

selection of chocolates especially created
for the discerning consumer - as our way of
saying "Thank You" to our loyal clientele
for their support and patronage spanning
three generations.
Super Milk Toffees:

Mitchell's new Super Milk Toffees are bigger in size and better in taste than

any other Milk Toffees, which will bring lots of fun and excitement for you to
share with your friends and family.
Mitchell's Milk Toffees are made with pure butter and creamy milk - umm
mouth watering! Which are immensely popular for their taste, texture and
flavour both with children and grown-ups alike for the last two decades

Marketing
Strategies
Of
Limited
MARKETING
STRATEGIES
The most interesting part of commerce is the marketing; this is the latter addition
of the business tools. starts with conceiving idea of presenting a product,
traditionally producers were interested in producing those goods only which has
existing pull, whereas now because of marketing tools they are producing with the
intention of pushing the product into consumer’s hand.
Marketers use numerous tools to elicit desired response from their target markets.
These tools constitute a marketing mix. Marketing Mix is the set of marketing tools
that the firm uses to pursue its marketing objectives in the target market.
McCarthy classified these tools into four broad groups that he called the four P's of
marketing:
 Product
 Price
 Place
 Promotion

Product
Defining the characteristics of your product or service to meet the customers'
needs.
Place or distribution
Looking at location (e.g. of a library) and where a service is delivered (e.g. are
search results delivered to the user's desktop, office, and pigeonhole - or do they
have to collect them).
Price
Deciding on a pricing strategy. Even if you decide not to charge for a service, it is
useful to realize that this is still a pricing strategy. Identifying the total cost to the
user (which is likely to be higher than the charge you make) is a part of the price
element.
Promotion
This includes advertising, personal selling (e.g. attending exhibitions), sales
promotions (e.g. special offers), and atmospherics (creating the right impression
through the working environment). Public Relations are included within
promotion by many marketing people.

MITCHELL’S MARKETING
STRATEGIES
1. Pricing Strategy:
Mitchells pricing goal is to increase sales volume and maintain or increase the
market share. In order to seek higher sales volume we often apply discounting
techniques or other aggressive pricing strategies.
Mitchells had charged premium price due to there brand image in the market for a
long time. But, due to shift in demand it has become almost to its competitors.They
cannot afford to fall below certain level of prices as they have to maintain certain
profit level.
Price Structure
The prices of Mitchell’s products are within the customer’s buying power. Mitchell’s
also give discounts to their regular customers. Mitchell’s has set prices in such a
way that it offers the most quality products with acceptable prices. Its prices are
very much comparable with its competitors. It also considers the fact that
Pakistani market is not as much economically viable as the other foreign markets.
So it keeps in mind all the below line factors while setting the prices of the
products.

2. PLACE STRATEGY
Mitchell’s adopted the channel-Structure Strategy for distribution. They believe
that product should be distributed directly from manufacturer to customer or
indirectly through one or more intermediaries. They sell their products sometimes
directly and sometimes they sell their products through retailers. Like in Lahore
they need to sell their products between the months of March till November where
as on the other side in Karachi the demand of the Squashes remain the same
throughout the year since there need to have other distribution channels as
compare to Lahore. Although Mitchell’s make use of the direct distribution strategy
and indirect distribution strategy and hence that is why the eye level is always
filled with the products of Squashes, which leads to a good result of increase in
sales.
As they have firm distribution network they follow the path
Producer----- Wholesaler ---- Retailer ---- Consumer
They also distribute directly to some retailers for example they supply directly to
the Airlines and Hotels like PIA and Pearl Continental.

3. Promotion Strategy
Target market:
In this particular add, the company has targeted a child of 6 years of age ranging
to 65 years old grandfather. As there are number of products shown in this ad
which are directed toward different age groups.
Core message of ad:

The core message of the ad is that the company wants to develop its corporate
image. They are celebrating there 75 years of farm freshness. That means that this
company is serving the customers from the last 75 years and they have been
consistent upon there quality and providing the customers fresh products which is
actually there USP. The first line of the ad “Bach pan ki kuch yadein hain”. We
remember our childhood when we grow up. So Mitchells is associated with the
child hood memories as it is a brand which is used by generation to generation.
There is an affiliation associated with it for years and the reason for this
relationship between the company and the customers is the fresh raw material
used for the products.
Sales Promotions:
Public Relations Mitchell's has joined hands with the village communities as well
as the British Council, the Department for International Development (UK) and
Voluntary Service Overseas (UK) in an effort to promote education in rural areas.

Twenty-five girls' schools have been set up in the Okara district in an endeavour to
boost the levels of female literacy. Also a Teachers Training Institute has been set
up to provide quality teaching staff to the local schools
Advertisements
Advertisement plays very important role in promoting the image and name of the
company. Because you can give your massage and persuade the person (person
may be Customer, client etc) to buy your product, therefore effective advertisement
plays important role in the success of product.
They give full-page coverage in newspaper and also made advertisement in the
television. Also providing advertisements on online facility through creating Web
Page, giving all required information about the products. They also advertise in
weekly newspapers and magazine.
Promotional themes
It also uses other below line activities to promote its product like by using the
following techniques:
 Free sampling
 Door to selling
 Prizes

4.Product Strategy

SWOT Analysis
Of
Limited
Swot Analysis:
In SWOT Analysis we check the strengths, weaknesses, Opportunities and the
Threats of the organization which is helpful to make the proper strategies for the
organization. In short,

“It is a simple and powerful way to analyze the current market situation.”
S STRENGTHS
W WEAKNESSES
O OPPORTUNITIES
T THREATS

SWOT ANALYSIS OF MITCHELLS

FRUIT FARM LIMITED:
SWOT Analysis of “MITCHELLS FRUIT FARM LIMITED” involves two type of

analysis.
1. Internal Analysis
2. External Analysis
INTERNAL ANALYSIS:
While doing the Internal Analysis of “MITCHELLS FRUIT FARM LIMITED”
we will check their,
 Strengths
 Weaknesses
EXTERNAL ANALYSIS:
External Analysis involves the analysis of the External Environment Of the

organization. In the External Analysis Of “MITCHELLS FRUIT FARM LIMITED” we
will check the,
 Opportunities

 Threats
Strengths:

 Having its own growing and processing facilities
 Modern high-volume industrial equipment
 Professional management and a trained workforce
 A smooth distribution system with nationwide coverage
 Right products, quality and reliability.
 Management is committed and confident
Weaknesses

“MITCHELLS FRUIT FARM LIMITED” like all other organizations also

has some weak points. The detail description of the weaknesses is as
under:
 Customer lists not tested
 Some gaps in range for certain sectors
 Customer service staff needs training
 More budget needed for Human Resource Development
 A big deficiency is the high cost of the products
 Lack in promotional and advertising policies
 They have limited number of distribution channels in Pakistan.

Opportunities
“MITCHELLS FRUIT FARM LIMITED” has following opportunities in the
external and internal environment.
 Can maintain its position as market leader
 Can also continue to be a trend setter
 International and domestic market expansion
 Introducing new verities of food products
 Local competitors have poor products
 End-users respond to new ideas
 Can surprise competitors

Threats
 Political instability
 International Financial crises
 Challenge of work force diversity
 Changing technology and concept
 Legislation could impact
 Retention of key staff critical
 Possible negative publicity
 Market demand very seasonal

Ratio Analysis
Of
Limited

FINANCIAL
ANALYASIS
Analysis of
Financial
Statements:
While assessing the financial
position of any organization one
should be very careful about the
figures because mostly
organization based on its
financial structure and right
effective & efficient allocation of
money to different needs.
Best technique in this regard is

of , ratio analysis, which without
any complexities provides as an
increase look of company. For
the assessments of financial
resources Mitchell’s we also use
the ratio analysis in order to get
a clear vision with simple
interpretation.

RATIO:
“RATIO IS THE
MATHEMATICAL EXPRESSION
THAT WILL EXPLAIN THE

RELATIONSHIP
BETWEEN TWO VARIABLES.”
ACCOUNTING RATIO:
“THE RATIO WHICH WILL EXPLAIN THE RELATIONSHIP
AMONG THE VALUES OF DIFFERENT ITEMS
THOSE WILL APPEAR ON THE FINANCIAL
STATEMENT OF AN ENTERPRISE.”
For this purpose we analysis the financial statements following ways:

TYPES OF ACCOUNTING
RATIOS
There are five types of ratios. Those are

 Solvency ratio
 Liquidity ratio
 Activity ratio
 Profitability ratio
 Market ratio
Now we will explain these ratios briefly.

1- Liquidity ratio
Liquidity refers to the solvency of the firms overall financial position
_“the ease with which it can pays its bills”
“Ratio that will mere explains the ability of a business to fulfill its short
term obligations are called as liquidity ratio.”
Three basic measures of liquidity ratio are:
 Current Ratio = CURRENT ASSETS

Current Liabilities
 Quick Ratio = Quick Assets

Current Liabilities
 Absolute Liquid Ratio = Absolute Liquid Assets

Current Liabilities

2- Activity Ratio
Activity ratio are used to measure the speed with which various
account are converted into sales & cash . With regards to current account,
measure s of liquidity are inad equate
“These ratios will relate the efficiency of the management with the
utilization of the resources of the enterprise to generate profit.”
Five basic measures of Activity ratio are:
 Stock Turnover Ratio = Cost of goods Sold

Average Stock
 Debtors Turnover Ratio = Net Credit Sales

Avg. Account Receivables
 Creditor Turnover Ratio= Net Credit Purchases

Average Accounts Payable
 Working Capital Turnover Ratio=Cost of Sales

Net Working Capital
 Fixed Assets Turnover Ratio = Cost of Sales

Net Fixed Assets

3-Solvency Ratio
The debt position of a company indicates the amount of others people’s
money being used in generating profits in general financial analyst
most concerned with long term benefits.
“The ratios that will indicate the ability of an enterprise to fulfill its
long term obligation are called solvency ratio.”
Basic measures of Solvency ratio are:
 Debt Equity Ratio = External Debt

Internal Debt
 Total Long-Term To Shareholders Fund = Total Long-Term funds

Shareholders Fund
 Debt Service or Interest Coverage Ratio = N P B I T

Fixed Interest Charges
 Fixed Asset Ratio = Net Fixed Asset

Long Term Funds
 Capital Gearing Ratio = Equity

Total Long Term Debts
 Proprietary Ratio = Equity

Total Fixed Assets
 Fixed Assets To Net Worth Ratio = Net Fixed Assets

Equity
4- Profitability Ratio
There are many measures of profitability. Each related the return of the firm to
its sales, assets, equity, or share value. As a group, these measures allow the
analyst to evaluate the firm’s earnings with respect to a given level of sales a
certain level of assets, the owners’ investment, or share value. With out profit,
a firm could not attract outside capital.
“These ratios measure the performance of the company with reference

to its competitors are called profitability ratio.”
Basic measures of Profitability ratio are:
 Gross Profit Ratio= G.P *100

Net Sales
 Operating Profit Ratio = NPBIT *100

Net Sales

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5- Marketing Ratio
“These ratios relate to the enterprise market value as measured by its
current share price to certain accounting value.”
RATIO ANALYSIS BASED ON :

 Comparative analysis
 Time Series Analysis
 Cross sectional analysis
Comparative Analysis:
THE ANALYSIS OF AN ENTERPRISE ON THE BASIS OF ITS FINANCIAL DATA OF ANY TWO
YEARS TO COMPARE ITS PERFORMANCE .
Time Series Analysis:
“THE RATIO ANALYSIS OF AN ENTERPRISE BY USING ITS FINANCIAL DATA OF MORE

THAN TWO YEARS TO FIND ITS AVERAGE TREND OF PERFORMANCE DURING THAT
PERIOD OF TIME .”
Cross sectional analysis:

“THE RATIO ANALYSIS OF TWO OR MORE ORGANIZATIONS HAVING THE SAME NATURE
OF BUSINESS BY USING THEIR FINANCIAL DATA OF THE SAME YEAR TO COMPARE
THEIR PERFORMANCE ”

Liquidity
Ratios

1- Liquidity Ratio
Current Ratio= Current Asset
Current liabilities
2007 = Rs.305, 663,238 = 1.21:1

Rs. 253025248
2008 = Rs.391, 583,837 = 0.97:1

Rs. 403,565,238
ANALYSIS:
 Comparison To Standard:
Current ratio of the company does not meet the required standard of 2:1.
 Comparison with previous year:

As compare to the previous year 2007 the current ratio has a decreasing trend .It
decrease by 24% which is unfavorable sign for the company.
Current Trend Rate(%) Required Comments

Ratio decreasing/ Standard
increasing
Short term financial position

0.97 Decreasing 24% 2:1 is unfavorable as quick ratio
decreased from last year and
not fulfills the required
standard.

Quick Ratio = Quick Assets

Current Liabilities
2007 = Rs. 83,502,124 = 0.33:1

Rs. 253,025,248
2008 = Rs.63,283,351 = 0.16:1

Rs.403, 565,238
Analysis:
Quick ratio of the company does not meet the required standard of 1.5:1.

As compare to the previous year 2007 the current ratio has a decreasing trend. It
decreases by 17% which is unfavorable sign for the company.
Quick Trend Rate(%) Required Comments

increasing

Short term financial position is

0.16 Decreasing 17% 1.5:1 unfavorable as quick ratio
decreased from last year and not
fulfills the required standard.
Absolute Liquid Ratio = Absolute Liquid Assets

Current Liabilities
2007 = Rs.26,665,574 = 0.11:1

Rs. 253,025,248
2008 = Rs. 10,909,851 = 0.03:1

Rs. 403,565,238
Analysis:
Quick ratio of the company does not meet the required standard of 0.5:1.

As compare to the previous year 2007 the current ratio has a decreasing trend. It
decreases by 8% which is unfavorable sign for the company.

Absolute Trend Rate(%) Required Comments

increasing
Short term financial position is

0.03 Decreasing 8% 0.5:1 unfavorable as current ratio
decreased from last year and not
fulfills the required standard.
Overall Analysis of Liquidity Position
Liquidity Ratios are showing that the short term financial position of MITCHELLS
Foods is unfavorable as all of the three Liquidity Ratios has decreasing trend and
are not up to required standard.
Liquidity 2007 2008 Trend Comments

Ratios
Current Ratio Company does not have enough

1.21 0.97 Decreasing current assets to pay its current
liability.
Quick Asset Company does not have enough ready

Ratio 0.33 0.16 Decreasing cash to pay its current liability.
Absolute Liquid Company does not have enough cash

Ratio 0.11 0.03 Decreasing to pay its current liability.
So, after complete analysis of liquidity ratios we conclude that Mitchells Food Farm
is not in a position to fulfill its short term obligations.
2007 2008

Liquidity Ratios
Absolute Liquid Ratio
Quick Asset Ratio
Current Ratio
0 0.2 0.4 0.6 0.8 1 1.2 1.4

ACTIVITY
RATIOS

2- Activity Ratio
Stock Turnover Ratio = Cost of goods Sold
Average Stock
2007 = Rs.706,265,864 = 3.82 times
Rs.185, 037,159
2008 = Rs.848, 823,705 = 3.58 times

Rs.236, 868,065.5
Analysis:
As compare to the previous year 2007 the stock turnover ratio has a decreasing
trend. It decreases by 24% which is unfavorable sign for the company.
Stock turnover ratio of the company does not meet the required standard of
increasing trend.
Stock Trend Required Rate(%) Comments

turnover trend decreasing/
Ratio increasing

As it is decreased from last year so it is

3.58 Decreasi increasin 24% unfavorable which shows that lesser time, stock is
ng g disposed of in to sales.
Inventory conversion = No. of days in a year

Period Inventory turn over ratio
2007 = 360 days = 90 days

3.82 times
2008 = 360 days = 90 days

3.58 times
Analysis:
As compare to the previous year 2007 the inventory conversion period remains
stable. It means that company’s stock take 90 days to be sold.
Although the Inventory conversion ratio of the company remain unchanged but it
is not fulfilling the required standard of increasing trend.

Inventory Trend Required Rate(%) Comments

conversion trend decreasing/
period increasing
As it remains the same so

90 days Stable increasing - management has stability in its
sale policies.
Debtors Turnover Ratio = Net Credit Sales

Avg. Account Receivables
2007 = Rs. 866,618,994 = 19 times

Rs. 45,932,040
2008 = Rs. 1,038,637,296 = 24 times

Rs.42, 499,889.5
Analysis:
As compare to the previous year 2007 the Debtors Turnover Ratio is increasing. It
means that company’s management has ability to create more debtors.

Debtors turnover ratio of the company has met the required standard of
increasing trend.
Debtors Trend Required Rate(%) Comments

ratio increasing
Debtors turnover ratio is increasing

24 times increasing increasing 79% so it is favorable for the company as it
shows that management create more
debtors.
Average collection period= No. of days in a year

Inventory turn over ratio
2007 = 360 days = 19 days

19 times
2008 = 360 days = 15 days

24 times
Analysis:

As compare to the previous year 2007 the Average collection period is decreasing.
It means that company’s management more efficiently recover cash from debtors
as compare to the previous year.
Average collection period of the company has met the required standard of
decreasing trend.
Average Trend Required Rate(%) Comments

collection trend decreasing/
period increasing
Average collection period is

15 days decreasing decreasing 79% decreasing so it is favorable for
the company as it shows that
management has ability to
recover cash from debtors in
lesser days.
Creditor Turnover Ratio= Net Credit Purchases

Average Accounts Payable
2007 = Rs.599,462,240 = 7 times

Rs.89,142,916
2008 = Rs.683,238,738 = 8 times

Rs.89,805,848

Analysis:
As compare to the previous year 2007 the Creditors Turnover Ratio is increasing. It
means that company bears good repute among creditors and has more credibility.
Creditors Trend Required Rate(%) Comments

ratio increasing
As it has increasing trend so it is

8 times increasing decreasing 87% favorable for the company
which shows that management
has more credibility as compare
to last year and efficiently
arrange fund from creditors.
Average Payment Period:

= No. of days in a Year
Creditors turnover Ratio
2007 = 360 = 51 Days

7

2008 = 360 = 45 Days

8
Analysis:
As compare to the previous year 2007 the Average payment period is decreasing. It
means that company’s management is not efficiently use public funds for more
time.
Average Trend Required Rate(%) Comments

Payment trend decreasing/
period increasing
Average payment period is

45 days decreasing increasing 90% decreasing so it is unfavorable
for the company as it shows
that management does not
have ability to use funds for
more time.
Working Capital Turnover Ratio=Cost of Sales

Net Working Capital
2007 = Rs.706, 265,864 = 13 times

Rs.52, 637,990

2008 = Rs.848, 823,705 = 71 times

Rs. (11,981,401)
Analysis:
As compare to the previous year 2007 the Working Capital Turnover Ratio is
increasing. It means that company does not have enough working capital to pay
running finance.
Working Trend Required Rate(%) Comments

capital trend decreasing/
ratio increasing
As it has increasing trend so it is

71 times increasing decreasing 18% unfavorable for the company
which shows that company is
unable to pay its short term
expenses.
Fixed Assets Turnover Ratio = Cost of Sales

Net Fixed Assets
2007 = Rs.706, 265,864 =2.58 times

Rs.272, 725,302
2008 = Rs.848, 823,705 =2.57 times

Rs.329, 787,878
Analysis:
As compare to the previous year 2007 the Fixed Asset Turnover Ratio is almost
stable. It means that company has slightly same fixed assets to meet its running
expenses as in last year.
Fixed asset Trend Required Rate(%) Comments

turnover trend decreasing
ratio /
increasing
As it has stable trend so company is

2.57 times Stable decreasin 1% using its fund in maintain its fixed
g assets
Overall Findings of Activity

Ratios

After complete Analysis of Activity Ratios we find that over all the management
activities remains inefficient as there are many symptoms which show the lack of
effectiveness and efficiency in management’s policies and control.
Following Ratios shows the efficiency of management:
 Creditors Turnover Ratio

 Debtors Turnover Ratio
Following Ratios shows the inefficiency of management
 Stock Turnover Ratio

 Average Collection Period
 Working Capital Turnover Ratio

Activity Ratios 2007 2008 Trend Comments
Stock Turnover Decreasing Unfavorable as lesser times

Ratio 3.82 3.58 the stock has been made and
sold.
Inventory There is stability as stock is

Conversion Period 90 90 Stable sale out after regular period.
Debtors Turnover 19 Favorable as more debtors

Ratio 24 Increasing have been created.
Average Collection Decreasing Unfavorable as recovery is

Period 19 15 made in more days.
Creditors Turnover Increasing Favorable as credibility have

Ratio 7 8 been increased.
Average Collection Decreasing Unfavorable as lesser time is

Period 51 45 available to use the funds.
Increasing Unfavorable as there is not

Working Capital 13 71 enough working capital to
Turnover Ratio cover CGS.
Fixed Assets 2.58 2.57 Almost Stable Favorable `

Turnover Ratio

Activity Ratio
Fixed Assets Turnover Ratio
Working Capital Turnover Ratio
Average Collection Period
Creditors Turnover Ratio
Average Collection Period
Debtors Turnover Ratio
Inventory Conversion Period
Stock Turnover Ratio
0 10 20 30 40 50 60 70 80 90 100
2007 2008

SOLVENCY
RATIOS
3-Solvency ratio
Debt Equity Ratio = External Debt
Internal Debt
2007 = Rs.460, 541,469 =1.75:1

Rs.262, 572,706
2008 = Rs.848, 823,705 =3.25:1

Rs.260, 830,246
Analysis:
As compare to the previous year 2007 the Debt Equity Ratio is increasing which
shows that company obtains more debts in 2008.
Debt Trend Required Comments

equity trend
ratio
As it has increasing trend so it is unfavorable

3.25:1 increasing decreasing for the company which shows that company is
under the burden of extra debts.
Total Long-Term Debt to Shareholders Fund =

Total Long-Term funds
Shareholders Fund
2007 = Rs.62,790,586 = 0.24:1

Rs.262, 572,706
2008 = Rs.56,976,231 = 0.22:1

Rs.260, 830,246
Analysis:
As compare to the previous year 2007 the Long Term Debts to Shareholders Equity
Ratio is Decreasing which shows that company obtain more debts from internal
resources in 2008.

L/T debts Trend Required Comments

to Equity trend
As it has decreasing trend so it is favorable for

0.22:1 decreasing decreasing the company which shows that company’s
internal equity is increasing.
Debt Service or Interest Coverage Ratio
= N P B I T
Fixed Interest Charges
2007 = Rs.61,033,471 = 29 times

Rs.21,267,849
2008 = Rs.45,436,673 = 1 times

Rs.32,323,268
Analysis:

As compare to the previous year 2007 the Debts Service Ratio is decreasing which
shows that company earns a small profit which can cover its interest expense only
one time in 2008.
debts Trend Required Comments

service trend
ratio
As it has decreasing trend so it is unfavorable

1 time decreasing increasing for the company which shows that company’s
current year profit is not sufficient to pay its
interest charges.
Fixed Asset Ratio = Net Fixed Asset

Long Term Funds
2007 = Rs.272,725,302 = 4.3:1

Rs. 62,790,586
2008 = Rs.329,787,878 = 5.8:1

Rs.56,976,231
Analysis:

As compare to the previous year 2007 the Fixed Asset Ratio is increasing which
shows that company’s long term funds are used in purchase of fixed asset at a
higher rate in 2008 as compared to previous year.
Fixed Trend Required Comments

asset trend
ratio
As it has increasing trend so it is favorable

5.8:1 increasing increasing for the company which shows that
company’s current year long term funds are
used in an efficient way to purchase fixed
asset.
Capital Gearing Ratio = Equity

Total Long Term Debts
2007 = Rs. 262, 572,706 = 4 times

Rs. 62,790,586
2008 = Rs.260,830,246 = 5 times

Rs.56, 976,231

Analysis:
As compare to the previous year 2007 the Capital gearing Ratio is increasing
which shows that company’s shareholder equity has a lower proportion as
compared to fixed cost bearing securities in 2008.
Capital Trend Required Comments

bearing trend
ratio
As it has increasing trend so it is favorable for

5times increasing increasing the company .
Proprietary Ratio = Equity

Total Assets
2007 = Rs. 262, 572,706 = 0.45:1

Rs. 578,388,540
2008 = Rs.260,830,246 = 0.36:1

Rs.721, 371,715

Analysis:
As compare to the previous year 2007 the Proprietary Ratio is decreasing which
shows that in financing the total business of company 64% of funds have been
supplied by outside creditors in 2008 which is higher then 2007 and 36% are by
shareholders.
Proprietary Trend Required Comments

ratio trend
As it has decreasing trend so it is favorable

0,36:1 decreasing decreasing for the company.
Fixed Asset to Net worth Ratio

= Net Fixed Asset
Shareholders Fund
2007 = Rs.272, 725,302 = 1.04:1

Rs. 262,572,706

2008 = Rs.329,787,878 = 1.26 :1

Rs.260,830,246
Analysis:
As compare to the previous year 2007 the Fixed Asset to net worth Ratio is
increasing which shows worth of business of company is in 2008 increase as
compare to 2007.
F/A to Trend Required Comments

net trend
worth

0,36:1 increasing increasing the company showing greater worth of
business.
OVERALL FINDINGS OF
SOLVENCY RATIOS
After complete Analysis of Solvency Ratios we find that, on one side the equity and
the fixed assets have been increased due to which following ratios are showing
favorable signs for current year as compared to previous year :
 Capital gearing ratio

 Long term debt to equity
 Proprietary ratio
 Fixed assets ratio
 Fixed Asset Ratio
On the other hand interest expense and total debt have also been increased due to
which following ratios are showing unfavorable signs for the concern:
 Debt equity ratio

 Debt ratio
 Debt service ratio
Solvency Ratios 2007 2008 Trend Comments
Unfavorable, as debts have

Debt Equity Ratio 1.75 3.25 Increasing increased in 2008

Long Debt to Favorable, as it shows that

Shareholders Fund 0.24 0.22 Decreasing internal equity is increasing.
Unfavorable due to increase

Debt Service Ratio 29 1 Decreasing in interest expenses as
compare to profit.
Favorable, as it shows the

Capital Gearing Ratio 4 5 Increasing equity is increasing as
compare to last year.
Favorable as internal
Proprietary Ratio 0.45 0.36 decreasing liabilities are decreasing as
compared to fixed assets.
Favorable, company’s
Fixed Asset Ratio 4.3 5.8 Increasing current year long term funds
are used in an efficient way
to purchase fixed asset at a
higher rate.
Favorable as it shows the

Fixed Assets to Long 1.04 1.26 increasing funds are being properly
Term Funds Ratio utilized in long term benefit
of business at a higher rate.
2007 2008

Solvency Ratio
Fixed Assets to Long Term
Funds Ratio
Fixed Asset Ratio
Proprietary Ratio
Capital Gearing Ratio
Debt Service Ratio
Long Debt to Shareholders Fund
Debt Equity Ratio
0 5 10 15 20 25 30 35

PROFITABILITY
RATIOS

4- Profitability Ratios
Gross Profit Ratio= gross profit * 100

Net sales
2007 = RS.160, 353,130 * 100 = 18.5%
RS.866, 618,994
2008 = RS.189, 813,591 * 100 = 18.3%

RS.1, 038, 637,296
ANALYSIS;
As compare to the previous year 2007 the Gross Profit Ratio is decreasing which
shows less gross profit as compare to 2007.
Gross Trend Required Comments

Profit trend
Ratio

18.3% decreasing increasing for the company showing lesser gross profit as
compare to previous year.

Operating Profit Ratio
= operating profit * 100

Net Sales
2007 = RS.61, 033, 471 * 100 = 7.0%

RS.866, 618,994
2008 = RS.45, 436, 673 * 100 = 4.4%

RS.1, 038, 637,296
ANALYSIS:
As compare to the previous year 2007 the Operating Profit Ratio is also decreasing
which shows less operating profit in 2008 as compare to 2007.
Operating Trend Required Comments

Profit trend
Ratio

4.4% decreasing increasing for the company showing lesser operating
profit as compare to previous year.

Operating Ratio = CGS+Operating Exp * 100

Net Sales
2007 = RS.809, 597, 370 * 100 = 93.4%

RS.866, 618,994
2008 = RS.45, 436, 673 * 100 = 96.2%

RS.1, 038, 637,296
ANALYSIS:
As compare to the previous year 2007 the Operating Ratio is increasing which
shows less operating profit and higher operating expenses in 2008 as compare to
2007.
Operating Trend Required Comments

Ratio trend
As it has increasing trend so it is unfavorable

for the company showing less profitability

96.2% increasing decreasing inefficiency of management
Net Profit Ratio = Net Profit 100

Net Sales
2007 = RS.25, 665, 622 * 100 = 2.96%

RS.866, 618,994
2008 = RS.8, 337, 540 * 100 = 0.8%

RS.1, 038, 637,296
ANALYSIS:
As compare to the previous year 2007 the Net Profit Ratio is decreasing at a higher
rate which is alarming for company as it shows that overall profitability is very
lowing 2008 as compare to 2007.
Net Trend Required Comments

Profit trend
Ratio


0.8% decreasing increasing for the company showing less portion of net
sales is left for the owners after all expenses
have been met.
Return on shareholder fund/equity

= Net Profit After Interest & Tax * 100
Shareholder Equity
2007 = RS.25, 665, 622 * 100 = 9.8%

RS.262, 572, 706
2008 = RS.8, 337, 540 * 100 = 3.2%

RS.260, 830, 246
ANALYSIS:

As compare to the previous year 2007 the Return on equity Ratio is decreasing at a
higher rate as it shows that overall net profit is very low in 2008 to pay to
shareholders, as compare to 2007.
Return Trend Required Comments

on trend
equity

3.2% decreasing increasing for the company showing net profit available
for shareholder is very small.
Return on Gross Capital Employed
= Net Profit After Interest & Tax 100

Gross Capital Employed
22000077 == RS.25, 665, 622 * 100 = 7.9%

RS.325, 363, 292
2008 = RS.8, 337, 540 * 100 = 2.6%

RS.317, 806, 477

ANALYSIS:
As compare to the previous year 2007 the Return on Gross capital employed is
decreasing at a higher rate as it shows that profit available to total investment
including investment outside the business is very low in 2008, as compare to 2007.

on GCE trend

2.6% decreasing increasing for the company showing profit available is
very small.
Return on net capital employed
= Net Profit before Interest and Tax 100

Net capital employed
2007 = RS. 61, 033, 471 * 100 = 18.8%

RS.325, 363, 292

2008 = RS. 45, 436, 673 * 100 = 14.3%

RS.317, 806, 477
ANALYSIS:
As compare to the previous year 2007 the Return on Net capital employed is
decreasing at a higher rate .It shows that profit available to total investment
excluding investment in fixed asset outside the business is very low in 2008, as
compare to 2007.

on NCE trend

14.3% decreasing increasing for the company showing poor profitability.
Earnings per share:

= Net Profit 100
No of equity shares

22000077 == RS.25, 665, 622 100 = 5.09%

RS.5, 040,000
2008 = RS.8, 337, 540 100 = 1.65%

RS.5, 040,000
ANALYSIS:
As compare to the previous year 2007 the Earnings per Share is decreasing at a
higher rate .It shows that per share dividend available to each share holder is very
low in 2008, as compare to 2007.
Earnings Trend Required Comments

per trend
Share

1.65% decreasing increasing for the company showing poor profitability.

OVERALL FINDINGS OF
PROFITABILITY RATIOS
After complete Analysis of Profitability Ratios we find that overall profitability
ratios of Mitchells Foods have been decreased. We find that company made a very
low profit in year 2008 due to which:
 Operating expenses are more than profit of company.

 Return on gross and net capital has also been decreased in 2008.
 Per Share Earning is also decrease at a very high Rate.

Profitability 2007 2008 Trend Comments

Ratio
Gross Profit 18.5% 18.3% Decreasing Unfavorable as gross profit is

Ratio decreasing.
Operating Profit 4.4% decreasing Unfavorable as operating

Ratio 7% profit is decreasing.
Net Profit Ratio Decreasing Unfavorable as more interest

2.96% 0.8% expenses have been paid.
Return on Decreasing Unfavorable as profits are not

Shareholders 9.8% 3.2% increasing with reference to
fund funds.
Return On Gross Decreasing Unfavorable as profit not

Capital 7.9% 2.6% increase to total investment.
Employed
Return on Net Decreasing Unfavorable as profit not

Capital 18.8% 14.3% increase to the net investment
Employed in business.
Earnings Per Rs.5.09 Rs.1.65 decreasing Unfavorable as EPS has

Share decreased than 2007.

2007 2008
Return on Net Capital Employed
Return On Gross Capital Employed
Return on Shareholders fund
Net Profit Ratio
Operating Profit Ratio
Gross Profit Ratio
0.00% 2.00% 4.00% 6.00% 8.00%10.00%12.00%14.00%16.00%18.00%20.00%

Marketing
Ratios
5- Marketing Ratio
Price Earning Ratio:
= Market price per share of common stock
Earning per share
2007 == RS.10 =1.96%

RS.5.09
2008 = RS.10 =6.06%

RS.1.65
ANALYSIS:
As compare to the previous year 2007 the Price Earnings Ratio is increasing in
2008, as compare to 2007.
Price Trend Required Comments

Earnings trend
Ratio

6.06% increasing increasing the company showing increase in worth of
shares.

Market to book value ratio:
= Market price per share of common stock

Book value per share
2007 == RS.10 =1%

RS.10
2008 = RS.10 =1%

RS.10
ANALYSIS:
As compare to the previous year 2007 the Market to book Value Ratio is remain
stable in 2008 and 2009.
Market Trend Required Comments

to book trend
Value

As it has stable trend so it is favorable for the

6.06% stable increasing company.
OVERALL FINDINGS OF MARKETING

RATIOS
Marketing 2007 2008 Trend Comments
Ratio
Price Earnings 1.96% 6.06% As it has increasing trend so it

Ratio increasing is favorable for the company
showing increase in worth of
shares.
Market to book 6.06% 6.06% As it has stable trend so it is

Value increasing favorable for the company.

Price Earnings Ratio

Market to book Value
0.00% 5.00% 10.00% 15.00%
Recommendations

&
Conclusion

RECOMMENDATIONS
 Management of Mitchells Fruit Farm Limited should take steps in increasing

its current assets because its Short term financial position is unfavorable as
quick ratio decreased from last year and not fulfills the required standard
 Long term debts are increasing with the passage of time, so there must be
sufficient control on debts.
 Cost of goods has been increasing so steps must be taken to have control on
these expenses.
 Proper and efficient steps must be taken to reduce the operating expenses.
 Management of Mitchells Fruit Farm Limited must take some steps to

increase the its sales with the help of proper and effective marketing.
 Proper terms and conditions must be settled for collection from debtors

CONCLUSION
Mitchell’s is very much conscious and careful about its sales and about the
customer level satisfaction and since 1933 they tried to maintain a same graph of
satisfaction level and give customer a quality, fresh farm products direct from
their own farms. Mitchell’s is very much concerned about its SWOT analysis and
keeping a closer eye on every action it can take for the better of its products.
Every SBU has its own strategies to make and to implement and here at SBU level
business strategy focus more narrowly on their own products. The MD plays an
important and central role for the strategic planning to be more effective not just
as a MD but also as a strategic thinker and corporate culture leader.
Mitchell’s management deals with developing a marketing mix to serve a

designated market. Their main focus is on the strategies at SBU level where
Mitchell’s make their strategies considering three forces:
 Customer
 Competition
 Corporation

And in addition to this internal and external factors also play an important role to
develop strategy.
Mitchell’s is concerned about the external information pertains o social, economic,

political and technological trends and product/market environment. The
information is analyzed to identify the SBU’s strengths and weaknesses, which
together with competition and customer define the objective of SBU.
Mitchell’s is also very concerned about the Corporate Appraisal and for this they
keep a closer interact with all the groups of corporate publics having a stake in the
organization. In this context Mitchell’s is very much concerned about the Financial
Position of the company. And they evaluate this factor very closely for the further
decision making of their products.


Accountancy: The profession of accounting

Accountant: A person who is involved in the profession of accountancy.

Accounting Policies: The accounting principles that will be followed by an enterprise for the

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1 Financial Analysis of Mitchells Food Farm

 Thirst-quenching Squashes & Syrups;

2 Financial Analysis of Mitchells Food Farm

In recognition of its dedication to quality and technical expertise, Mitchell’s was

3 Financial Analysis of Mitchells Food Farm

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6 Financial Analysis of Mitchells Food Farm

PHASE II: AFTER INDEPENDENCE

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MITCHELL's VISION is to provide its customer with

10 Financial Analysis of Mitchells Food Farm

 To be a leader in the markets we serve by providing quality products and

 To be a company that continuously enhances its superior technological

 To be a company that attracts and retains outstanding people by

 To be a company which combines its people, technology, management

 To be a company that endeavors to set the highest standards in

11 Financial Analysis of Mitchells Food Farm

The success of Mitchell’s brands is the result of the corporate emphasis

Human Resource is also of the pivotal importance for the management

12 Financial Analysis of Mitchells Food Farm

13 Financial Analysis of Mitchells Food Farm

Following are departments at Mitchell’s food Farm limited

1. Human Resource Department

15 Financial Analysis of Mitchells Food Farm

16 Financial Analysis of Mitchells Food Farm

Jam, Jellies & Marmalade:

“No artificial colour and no artificial flavour is our motto!”

18 Financial Analysis of Mitchells Food Farm

AVAILABLE PRODUCTS IN JAM & JELLY:

19 Financial Analysis of Mitchells Food Farm

 Apple jelly junior

 Mixed fruit jam

 Black currant jam

 Pine apple jam

 Chocolate spread jam

 Rose's lime marmalade

 Strawberry jam junior

 Golden apple jam

 Golden mist marmalade

 Old English marmalade

20 Financial Analysis of Mitchells Food Farm

Squashes & Syrups:

“Get refreshed with Mitchell's squashes”

 Lime cordial kissan

 Mixed fruit squash

21 Financial Analysis of Mitchells Food Farm

Ketchup & Sauces:

“SPICE UP YOUR LIFE

Mitchell's has introduced a new

"MITCHELL'S YUM! KETCHUP"

22 Financial Analysis of Mitchells Food Farm

23 Financial Analysis of Mitchells Food Farm

 Green chilli sauce

 Ginger garlic paste

 Chilli garlic sauce

 Hot & sweet sauce

24 Financial Analysis of Mitchells Food Farm

AVAILABLE PRODUCTS IN CANNED FOOD:

 Chick Peas Curry