e-ISSN: 2582-5208

International Research Journal of Modernization in Engineering Technology and Science

( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:02/February-2023 Impact Factor- 6.752 www.irjmets.com

A STUDY ON RATIO ANALYSIS AT TIRUMALA MILK PRODUCT PVT LTD

Dr. K. Naga Sumalatha*1, S Nikethan Reddy*2, M Jyothish*3,
B Vijaya Krishna*4, K Madwanath*5
*1MBA, Ph.D., APSET, Professor, Sree Rama Engineering College, Tirupati, India.
*2,3,4,5Scholars In Master Of Business Administration, Sree Rama Engineering
College, Tirupati, India.
DOI : https://www.doi.org/10.56726/IRJMETS33675
ABSTRACT
Tirumala Milk Products Private Limited is a efficiently overseen business engaged with the manufactures of an
extensive variety of Dairy Products are includes Milk in sachet, Sweets, enhanced Milk, Curd in Cups and Sachet,
Milk Powder, Butter, Ghee and Butter oil both in gathering and in addition in consumer packs . The Study on
Ratio Analysis at Tirumala milk products Pvt Ltd to examine the finance situation of the firm. The firms funds
position in examined by using the instrument of yearly report from 2019-20 and 2020-21 The objectives of the
company analyze the short term liquidity position, analyze the efficiency in performance of the business
activities, analyze the long term solvency position of the company, find out the relationship between the fixed
assets & current assets with proprietors funds, give suggestions based on the study. The findings are The
Current and quick ratios are approximately up to the average requirement, overall long-term solvency of the
company. is good company is reducing the long term Debts, the Company should utilize the available large
marketing network and improve the Customer relation through the regular customer support and after sales
services The financial status of Tirumala Milk Products Pvt Ltd, the policies adopt for the management of
financial performance is improving. The company liquidity situation is satisfactory, the company must be care
taken by the firm not to invest more investment in current resources, on the whole the company policy on
financial performance analysis is sound. The company thus enjoys a good liquidity position. The overall
performance of the company is stable.
Keywords: Ratio Analysis, Performance, Solvency Position And Liquidity Position.
I. INTRODUCTION
The report basically deals with “Financial performance of Tirumala Milk Products Pvt. Ltd using ratio analysis”
the fund’s performance of Tirumala Milk Products Pvt. Ltd prepared in line with the guidelines of Tirumala
Dairy officers or executives in handling affaires relating to fund’s performance in disciplined way.
II. REVIEW OF LITERATURE
Subbanna (2020) Without right full analysis statement managing business can't accomplish its target and not
possible to primary keep financial soundness. So in this point of view present study in undertake to study
financial statement analysis through ratios study at Tirumala Milk products Pvt. Ltd
Nagendra (2021) The purpose behind this literature review is to represent financial statement concepts, to
outline presented financial statement execution estimation concepts and to recognize value drives that have
been famous, investigated, and tried one fundamental change has occurred concerning execution measurement,
funds statement is no further seen as a discipline whose opinion aim is to keep up adequate maintain adequate
liquidity in the occurrence liquidation .Maybe, its stimulus is presently to support an company's operating
cycle.
III. OBJECTIVES
 To anlyze the performance of Tirumala Milk Products Pvt. Ltd.
 To analyze the ratio analysis of the company.
 To find out the review of literature.
 To give suggestions based on the study.

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 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:02/February-2023 Impact Factor- 6.752 www.irjmets.com
IV. METHODOLOGY
TYPE OF RESEARCH: The kind of research utilized as a part of in this project is descriptive in nature.
Descriptive research: Descriptive research is the research, were we go describing the things as they are.
Research Tools:
Data required to study is collected through the published statements of annual reports, such as trading and
profit & loss report and accounting statement.
Methods of Analysis:
The analysis data is done by using various ratios which will helps us to identify the working capital conditions
of the company and also by using simple percentage method and bar diagrams.
Scope
 The study on ratio analysis of Tirumala Milk Products Pvt. Ltd for two years.
 Based on the past performance of the company.
 The scope is limited to financial statement like balance sheet.
 Income extracted is limited to the annual report of the company.
Limitations:
 Study is limited to short duration in the industry and thus will not provide a clear view of the topic.
 The analysis and interpretation of the concern in based on the past performance. There are standards
established by the company with which the actual performance.
V. DATA ANALYSIS
TABLE 1: Table Showing Current Ratio
YEAR CURRENT ASSETS CURRENT LIABILITIES CURRENT RATIO
2019– 20 196,276,448 177,462,814 1.10
2020– 21 229,234,223 196,842,781 1.16

CURRENT RATIO
1.18

1.16

1.14

1.12
CURRENT RATIO
1.1

1.08

1.06
2019– 20 2020– 21

Graph 1: Graph Showing Current Ratio

Interpretation:
The table and graph showing current ratio in the year 2019-20(1.10) and 2020-21 the current is (1.16).

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 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:02/February-2023 Impact Factor- 6.752 www.irjmets.com
TABLE 2: Table Showing Quick Ratios
YEAR CURRENT ASSETS-INVENTORIES CURRENT LIABILITIES QUICK RATIO
2019-20 952,754,183 177,462,814 5.4
2020-21 547,228,634 196,842,781 2.8

QUICK RATIO
6

0
2019-20 2020-21

GRAPH 2: Graph Showing Quick Ratio

Interpretation:
The table showing Quick Ratio in the year 2019-20 the ratio is 5.4 and in the year 2020-2021 It has been
reduced to 2.8.
TABLE 3: Table Showing Debtors Turnover Ratio
YEAR TOTALSALES DEBTORS DEBTORS TURN OVERRATIO
2019-20 2,990,245,792 108,168,199 27.64
2020-21 2,549,927,050 101,803,211 25.04

DEBTORS TURN OVERRATIO

28
27.5
27
26.5
26
DEBTORS TURN
25.5 OVERRATIO
25
24.5
24
23.5
2019-20 2020-21

GRAPH 3: Graph Showing Debt Or Turnover Ratio

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 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:02/February-2023 Impact Factor- 6.752 www.irjmets.com
Interpretation :
The table showing Debtors Turnover Ratio in the year 2019-20 the ratio is 27.64 and in the 2020-21 it has been
decreased to the ratio is 25.04
TABLE 4: Table Showing Average Collection Period (Days)
DEBTORS TURN AVG COLLECTION
YEAR NO.OF WORKING DAYS
OVERRATIO PERIOD
2019-20 365 27.64 13.49
2020-21 365 25.04 14.57

GRAPH 4: Graph Showing Average Collection Period(Days)

Interpretation
The showing Average Collection Period in the year 2019-20 the is 13.49 and in the year 2020-21 it has been
increased to the ratio is 14.57.
TABLE 5: Table Showing Inventory Turnover Ratio
YEAR NETSALES AVGINVENTORY INVENTORY TURN OVERRATIO
2019-20 402,829,593 196,276,448 2.05
2020-21 309,714,712 229,234,223 1.35

INVENTORY TURN OVERRATIO

2.5

1.5
INVENTORY TURN
1 OVERRATIO

0.5

0
2019-20 2020-21

GRAPH 5: Graph Showing Inventory Turnover Ratio

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 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:02/February-2023 Impact Factor- 6.752 www.irjmets.com
Interpretation:
The table shows Inventory Turnover Ratio in the year 2019-20 the ratio is 2.05 and in years 2020-21 it has
decreased to the ratio is 1.35.
VI. CONCLUSION
The study on Ratio Analysis conducts in the Tirumala milk products Pvt Ltd to examine the finance situation of
the firm. The firms funds position in examined by using the instrument of yearly report from 2019-20 and
2020-21.
The present status of Tirumala Milk Products Pvt Ltd. the policies adopt for the management performance is
improving. The company liquidity situation is satisfactory with observe to investment in current resources
nearby are sufficient finance provide in it. Care must be taken by the firm not to invest more investment in
current resources, as it would abstract the finance which might or else be efficiently utilized for several
productive purposes. It is noticed that the firm has reduced its current liabilities, which is good sign for the
company. Period adequate provisions are created for meeting its figure contingencies.
On the whole the company policy on analysis is sound. The company thus enjoys a good liquidity position .The
overall performance of the company is stable.
VII. REFERENCE
[1] Subbanna, Financial Management
[2] Nagendra, Financial Management
[3] WWW.Google.com
[4] www.thirumala milk Pvt ltd.com

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