Basaveshwar Engineering College, Bagalkot A Projct ON RATIO ANALYSIS

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.
K LTD
SL.NO 1
CONTE NTS PART I EXECUTIVE SUMMARY PART II
PAGE NO.
2 3
INDUSTRY PROFILE PART III INTRODUCTION OF COMPANY PART IV
RESEARCH METHDOLOGY OBJECTIVES OF THE STUDY PART V
WORKING CAPITAL MANAGEMENT PART VI
DATA ANALYSIS AND INTERPRETATION PART V II
FINDINGS SUGGESTIONS & CONCLUSIONS.
A NNEX URE
9 FINANCIAL STATEMENT. BIBILOGROPHY.
TABLE INDEX
BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 1
FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD
INDUSTRIAL PROFILE
ABOUT THE SUGAR INDUSTRY IN INDIA:India has been known as the original home of sugar & sugar cane. Indian Mythology supports the above facts ass it contains legends showing the origin of sugarcane India is the
second largest producer of sugarcane next to BRAZIL. Presently above 4 million Hectors land is under the sugarcane with an average yield of 70 tons per hectors. India is the largest single producer of the sugar including traditional trade Sugar sweeteners, Khandsari & gur equivalent to 26 million tonnes row value followed by Brazil in second place at 18.5 million tonnes. Even in respect of white crystal sugar. India has ranked No.1 position in 7 out of last 10 years
HISTORY OF SUGAR INDUSTRY IN INDIA:Traditional sweeteners gur & khandsary are consumed mostly by the rural population in India. In the early 1930s nearly 2/3rd of sugarcanes production of alternates sweeteners gur & khandsari. With better standard of living & higher incomes, the sweetener demand has shifted to white sugar. Currently about 1/3rd sugarcane production is utilized by the Gur & Khandsari sectors. Being in the small scale sector, these two sectors are completely free form controls & taxes which are applicable to sugar sector. The advent of the modern sugar processing industry in India began 1930 with grant of tariff to the Indian
sugar industry, The number of sugar mills increased from 30 in the year 1930-31 to 135 in the year 1935-36 &the production
during the same period in created form 1.20 lakh tonnes to 9.34 lakh tonnes under the dynamic leadership of private sector. The area of planning for industrial development began in 1950-51 & Government laid down targets of sugar production & consumption, licensed & installed capacity, Sugarcane production during each of Five year plan periods.
NEED FOR THE STUDY

The study has been conducted for gaining practical knowledge about Ratio analysis of Shri Halasidhnath Sahakari Sakhar Karkhana. Ltd. The study is undertaken as a part of the MBA curriculum from 1st July 2010 to 20th August 2010 in the form of summer in plant training for the fulfillment of the requirement of MBA degree.
TITLE OF THE PROJECT

This project A Study on ANALYSIS OF FINANCIAL PERFORMANCE ON The BASIS OF FINANCIAL RATIOS of Halsidhanath Sahakari Sakhar Karkhana Ltd
OBJECTIVES:To study the profitability of Halsidhanath Sahakari Sakhar Karkhana Ltd. Nipani. To study the liquidity position. To find activity turnover
To study operating efficiency of Halsidhanath Sahakari Sakhar Karkhana Ltd Nipani.
SCOPE OF THE STUDY

The scope of the study is identified after and during the study is conducted. The main scope of the study was to put into practical the theoretical aspect of the study into real life work experience. The study of Ratio analysis further the study is Shri Halasidhnath
based on last 5 years Annual Reports Sahakari Sakhar Karkhana. Ltd.
LIMITATIONS OF THE STUDY The analysis is limited to just five years of data study (from year 2005 to year 2009) for financial analysis. Limited interaction with the concerned heads due to their busy schedule. METHDOLOGY In preparing of this project the information collected from the following sources. Primary data:
The Primary data has been collected from Personal Interaction with Finance manager Mrs.S.M.Siragave and other staff members. Secondary data: The major source of data for this project was collected through Balance sheet of SSHSKL Profit and loss account of 5 year period from 2005-2009 SAMPLING DESIGN Sampling unit Sampling Size : Financial Statements. : Last five years financial statements.
Tools Used: MS-Excel has been used to create a Charts and calculation.
Findings
Gross profit and net profits are decreased during the period of study, which indicates that firms inefficient management in manufacturing and trading operations.
Gross profit and net profits are increased during the period of 2004-05 which indicates that firms efficient management in manufacturing and trading operations. Liquidity ratio of the firm is not better liquidity position in over the five years. It shows that the firm had not sufficient liquid assets.
The inventory of the firm in the first year has been sold very slow. And there is an increase in the movement of the inventories but it slightly decreased in the last year. This may be a sign not good to the firm.
The fixed assets turnover ratio of the firm has in 2004-05 the ratio is 0.85 and it increase in the next 3years continuously and it again decrease in 2008-09. The current assets turnover
ratio is increasing during the period of 2004-06 and again it decrease in the period of 2006-07. And again increase in next two year slithightlliy. Direct Material cost ratio of the firm is has less material cost during the period of 2004-05 & 2007-08 and it raised in the year of 2005-06 and 2008-09.
The cost of direct labour of the firm in the year of 2004-05 is 4.94%and it increasing slithightlliy up to 2007-08 and it decrease in the next year.
The
cost
of
manufacturing
overhead of the firm in the year of 2004-05 is 5.22% where it compare to the next 3year it increase rapidly.
SUGGESTIONS
The profit Of the Company Is not in a good Position For That company has to Take Alternative Actions such As Increasing in Procurement in sugarcane , Production, and Control in Expenses Like,
Administrative, selling Etc. The firms have low current ratio so it should increase its current ratio where it can meet its short term obligation smoothly. Liquidity ratio of the firm is not better liquidity position in over the five years. So I suggested that the firm maintain
proper liquid funds like cash and bank balance.
CONCLUSION
This project of Ratio analysis in the production concern is not merely a work of the project. But a brief knowledge and experience of that how to analyze the financial performance of the firm. The study undertaken has brought in to the light of the following
conclusions. According to this project I came to know that from the analysis of financial statements it is clear that SHSSK Ltd. Have
been incurring loss during the period of study. So the firm should focus on getting of profits in the coming years by taking care internal as well as external factors. And with regard to resources, the firm is take utilization of the assets properly. And also the firm has a maintained low inventory.
INTRODUCTION OF CONCEPTS
India is developing country in which more than 70% population is dependent upon agriculture. In India Wheat, Cotton, Rice, Tobacco & Sugarcane are the some main crops. But the sugar cane is one of the important agricultural productions. And or by using the sugar We produce sugar. Which is very important item of daily meals? Sugar is mainly used for tea, Coffee and so many food products. It is also important raw material for bakery industry. The Sugar is produced by so many co-operative and also private factories. The first scheme of sugar factory in co-operative society has been introduced byMr.G.N. Sahastrabudhe & R.N. Hiremath in 1912. But first Co-operative sugar factory started in 1918, by the Lallubhai Samaldas & G. N. Sahastrabudhe in baramati. But due to Lake Of sugar Cane the factory stopped its working in 1924. After that, in co-operative field, under the guidance of Vilnalirao patil, Dr Dhanjay Gudgil Tried to start second
co-operative sugar factory. He was started pravar -co-operative Sugar factory in 1950 at loni this factory got success in market
therefore some other sugar Factories were going to start in Pune, after, the late 1970 there was a rapid increase in trend of co-operative sugar factory.
INDUSTRIAL PROFILE
ABOUT THE SUGAR INDUSTRY IN INDIA:India has been known as the original home of sugar & sugar cane.indian Mythology supports the above facts as it contains legends showing the origin of sugarcane India is the second largest producer of sugarcane next to BRAZIL. Presently above 4 million Hectors land is under the sugarcane with an average yield of 70 tonnes per hectors. India is the largest single producer of the sugar including traditional trade Sugar sweeteners, Khandsari & gur equivalent to 26 million tonnes row value followed by Brazil in second place at 18.5 million tonnes. Even in respect of white crystal sugar. India has ranked No.1 position in 7 out of last 10 years
HISTORY OF SUGAR INDUSTRY IN INDIA:Traditional sweeteners gur & khandsary are consumed mostly by the rural population in India. In the early 1930s nearly 2/3rd of sugarcanes production of alternates sweeteners gur & khandsari. With better standard of living & higher incomes, the sweetener demand has shifted to white sugar. Currently about 1/3rd sugarcane production is utilized by the Gur & Khandsari sectors. Being in the small scale sector, these
two sectors are completely free form controls & taxes which are applicable to sugar sector. The advent of the modern sugar processing industry in India began 1930 with grant of tariff to the Indian
sugar industry, The number of sugar mills increased from 30 in the year 1930-31 to 135 in the year 1935-36 &the production during the same period in created form 1.20 lakh tonnes to 9.34 lakh tonnes under the dynamic leadership of private sector. The area of planning for industrial development began in 1950-51 & Government laid down targets of sugar production & consumption, licensed & installed capacity, Sugarcane production during each of Five year plan periods.
MANUFACTURING PROCESS & TECHNOLOGY:Sugar (sucrose) is a carbohydrate that occurs naturally in every fruit & vegetable is a major product of pirotosynthesis, the process by which plants transforms the suns energy into food. Sugar occurs in greatest quantities in sugarcane & sugar beets form which it is separated for commercial use. The natural sugar stored in the cal stalk or beet root is separated from rest of the plant material through a process known as refining For sugarcane the process of retaining is carried out in following steps. Pressing of sugarcane to extract the juice. Boiling the juice unit it begins to thicken & sugar begin to crystallize.
Spinning the crystal in a centrifuge to remote the syrup, producing raw sugar. Shipping the raw sugar to a refinery where it is wasted & filtered to remove Remaining non sugar ingredient & colour. Crystallizing, drying & packing the refined sugar.
Beet sugar processing is the similar but it is alone in one continuous process without the raw sugar stage. The sugar beets are washed sliced & soaked in hot water to separate the sugar containing juice from the beet fiber. The sugar laden juice is the purified, filtered,
For the sugar industry, capacity utilization is conceptually different from the applicable to industries in general. In depends on three crucial factors the actual numbers of ton sugarcane crushed in a day, the recovery rate which generally depends on the quality of the cane & actual length of the crushing season. Since cane is not transported to any great extent, the quality of the cane that a factory receiver on its location & it
outside its control. The length of the crushing season also depends upon location with the maximum being in south Indian. sugarcane in India is used to make either sugar, Khandsari or gur . However sugar products produced are divided into four Granulated, brown, liquid, sugar, and invert sugar. basic categories;
PFROFILE OF THE COMPANY
Name of the factory
Shree Halasidnath Sahakari Sakhar Karkhana LTD.
Address
Shree Halasidnath Sahakari Sakhar Karkhana LTD. Shankaranand Nipani. TAL:-Chikodi. DIST:-Belgaum PIN:-591237. nagar,
Year of Establishment
APRIL-1981.
1st Crushing Season
JANUARY-1983.
Register Number
DSK/REG-2/80-81.
Register Date
22-04-1981.
Phone Number
STD CODE (08338) Chairman-220355 Office-222090
FAX Number
(08338)221315
BACKGROUND & INCEPTION COMPANY.

Halsidhanath sahakari sakhar karkhana is placed 3 km away from Nipani in north side at Shankaranandnagar , Tal:chikodi Dist: belgaum. Halsidhanath sahakari sakhar karkhana is the
support pillar to the sugar cane producer farmes in the Nipani area. The karkhana wa started by the some social workers in nipani the former in this
area with a view to provide an good option to area like sugarcane.
Mr. Baburao Budihalkar was the chief promoter in this project But, some other The foundation of karkhana building was this function was
held on 9-11-1982. The chief guest for
Shri.Rajiv Gandhi who was the prime minister of India in that time. The Karkha started its regular working on 30-9-1989. The delay was due to the changing political conditions in Karnataka state. The Karkhana developed a very good rapport with the farmers in this area and worked for their progress . So, the karkhana is
operating
in
entire
Chikkodi
taluka
andAlur,Bhairapur,Kanagala,Shippur,Karajaga,Rashing,Bad,Nangnur, Mattiwade,Hitani,Shekinhasur,Konankeri, ges in Hukkeri taluka. sadlaga thirteen(13) vill
Only Belgum in Belgum laluka and Soudatti
in Raibag Taluka all these part of Belgaum district in the Karnataka state. And Arjuni, Chikhali, Gorambe, Shendur, Shankarwadi, Vandur all these eight (8) villages in Kagal taluka is a part of
Kholapur district in the Maharashtra state Thus, it will comprise of part of Belgaum district and part of Kolhapur district, from two adjoining states.
OBJECTIVES AND FUNCTIONS:The principle object of the karkhana will be to promote the interests of all its members to attain their social and economic betterment through self help and mutual aid in accordance with the co-operative principles. To prepare and implement the programme for harvesting and transportation of sugarcane on behalf of the members from their field to factory in supply of sugarcane to factory for crushing and to avoid probable losses of sugar in cane. To manufacture sugar, Jaggery and its allied by products from the sugarcane supplied by the members and other and to sale these products at good price. To install the factory for manufacture sugar on large scale basis and to take all necessary steps to run it efficiently
To install the necessary machinery required for producing of bagasse, molasses, Press-mud etc. To ruchase the means of transportation and to run, to give and to take on hire basis. To install research centers and to assist the existing research institutions and to undertake research work helpful to sugarcane, sugar and allied industry.
NATURE OF THE BUSINESS CARRIED:S.H.S.S.K.LTD. is co-operative sector firm. It is a manufacturing company It produces sugar, molasses And supplies sugar tp Nipani, Chikodi Taluka, Raibag Taluka, saudatti, and Hukkeri Taluka. It operates within Karnataka as well as outside Karnataka. Nature of business carried Shri Halasidhanath sahakari Sakhar Karakhana Ltd is involved in the activity of manufacturing white crystal sugar products which is the main product. The process of production involves conversion of. Raw sugar cane to sugar, Raw sugar to refined sugar, Molasses, Bagasses are its by products.
MOLASSES: Molasses is mainly used for the manufacture of ethyl alcohol(ethanol)yeast and cattle feed. BAGASSES: Bagasses is usually as a combustible in the furnaces to produce steam which in turned is used to generate the power, it is also used as raw materials for the production of paper and as feedstock for the cattle.
PRODUCT PROFILE
Shri Halasidhanath Sahakar Sakhari Karakhana Ltd established for the purpose of sugar while producing the sugar some raw juice and raw bagasses become molasses and some other by-product. The Shri Halasidhanath Sahakar Sakhari Karakhana Ltd is producing following product 1) Sugar A) Medium-30 B) Small-30 C) Levy 2) Molasses 3) Compost 4) Bagasses
AREA OF OPREATION
The Shri Halasidhanath Sahakar Sakhari Karakhana Ltd has wide range of area of operation for continuous and regular flow of sugar cane from different authorized area within the 80 kms. Around the spot of plant includes some region of two states from Maharashtra and Karanataka under. SR.NO NAME TALUKA 1 Chikodi Belgaum 43 OF DISTRICT NUMBER
2 3 4 5 6 7
Hukkeri Raibag Belgaum Jamkhandi Athani Kagal
Belgaum Belgaum Belgaum Baglkot Belgaum Kholapur TOTAL
05 04 01 01 05 09 68
OWNERSHIP PATTERN
Shri Halasidhanath Sahakar Sakhari Karakhana Ltd established in the year 1981 at Hala sugar gram of chikodi Taluka. It was resolved to collect the share of established this sugar factory in co-operative basis. Let the late Baburao B patil Budhialkar and other social workers and leader working in co-operative sector also come forward to assist team in the starting this factory. It is joint venture with share capital of Rs. 104940000 contributed by 18990 share holders. The company was established in the year April 1981 & started the crushing in January 1983. The company is registered under the provision of companies Act-1956.
THERE IS TOTALLY 15 BODS.
Grower member will elect 12 BODS 1 Director will be elected by the co-operative. 1 Director nominated by the principal of financial agency. Apart from this 14 director, managing director will be deputed by the government PRESENT BOARD OF DIRECTORS ELECTED DIRECTOR
Shri. D.A.Chougale
Managing Director
Shri. Babasaheb .S. Saasne Shri .Ramagounda .R. Patil Shri .Ganesh .P. Hukkeri Shri .Appasaheb .S. Jolle Shri. Annasaheb .A. Patil Shri. Vishawanath .S. Kamate Shri. Malagounda .P. Patil Shri. Anand .D. Ginde Shri. Chandrakant .S. Kotiwale Shri. Ramagounda .B. Patil Shri. Ramagounda .Y. Patil Shri. Kanthinath .G. Chougale
Chairman Vice- Chairman Director Director Director Director Director Director Director Director Director Director
MEMBERSHIP OF SHARE CAPITAL:The membership of Shri Halsidhanath Sahakari Karakana Ltd has been accepted by different individuals and firms categorized into three classes as under A Class involves the grower (farmers of agricukturist) B Class involves the institute and non-grower These are:1. Co-operative Societies 2. The belgaum District Central Co-operative Bank Ltd. 3. Karnataka Bangalor. C Class involves the state government of karnakata. The above said members born their share as share capital as Sr No 1 A Grower B co-operative society 15,924 Member class No of Shares Share capital 613.52 State Agro Industrias Co-operation,
2 3
Non-Grower C Government of
3065 1
60.06
Karanataka Total 18990
375.82
1049.40
COMPETITORS INFORMATION
The main competitors are as follows Doodh Ganga Shakari Sakhare Karkhane, Ltd Crashing capacity-5500 TCD Recovery -11.5% Sugar production -10000 Qtls (per day).
Venkateshwer Sugar Ltd

Cashing capacity -2500 TCD Recovery -10.5% Sugar production -3000 qtls (par day).
Renuka Sugar Ltd

Crashing capacity -10000 TCD Recovery -11.2%
Sugar production -14000 Qtls (par day).
INFRASTRUCTURAL FACILITY
CATEEN The management provides multi-purpose cooking range, utensils, working capital, and building expenditure towards installation of gas equipment free purchase of furniture. Actual
expenditure towards consumption of water, electricity and gas, annual subsidy. the rates of foodstuffs in the canteen are fixed on no no profit basis. The workers who are working in the
production department are entitled for Tea free at cost while they are on duty.
TRNSPORTATION Up to 40 km. three transportation facilities is provided to farmers rate structure of vehicles as per kilometres Sr. No 1 2 5 10 KM Rate km 45.56 57.76 11 12 55 60 per Sr No KM Rate per km 156.77 166.83
3 4 5 6 7
15 20 25 30 35
73.12 86.34 98.16 106.30 117.45
13 14 15 16 17
65 70 75 80 85
174.02 183.80 192.75 199.12 209.24
WATER
It is established the river Vedganga. there is sufficient supply of water required for production process.
POWER
There is provision electricity from KPTCL. & company generates its own power through boilers during crushing of sugarcane.
ACHIEVEMENTS
In 1996-97 from South Indian Sugar Technologists Association (SISTA) for best achievement award in cane development.
FATURE GROWTH AND PROSPECTUS

To undertake such activities as are identical and conductive to the development the society. To inn coverage for other crops where sugarcane not grown. To expand crushing capacity.
WORKFLOW MODEL (END TO END MODEL )
Heating 65 C->Lime +SO2 application
APPLICATION OF 7S MODEL OF MC, KENSEYS
Strategic planning refer to the management processes in organization which helps in management to determine the future impact of change and take the currentdecisions to reach designed future. The management literature is replace which instance have been phenomenally successfully. Consultants at the Mc.Kensys company very well known management consultancy firm the created states develop the 7 s frame work towards the end of 7 s diagnose the causes of organizational problems and to formulate problems for important. The following is the 7s frame related to the Mc. Kennys 7s frame work of
organization which have fade stress in strategic planning but not
According to waterman organizational change is not simply matter of structure although structure is a significant variable in the management of change. Again it is not a simple relationship between strategy and structure although strategy is also critical as put. In their view effective organizational change may be understood to be a complex relationship between strategy,
structure, system and style, skill, staff, and super ordinate goals. The framework suggests that there is a multiplicity of factors that influence an organization and mode of change. ability to change and its proper
STRUCTURE OF ORGNIGIATION SHARE HOLDER
BOARD OF DIRECTOR
CHAIRMAN
MANAGING DIRECTOR
SHARE SECTION Head: - M.T. PATIL

According to by-law, the factories authorized share capital is Rs 20 crores. Atresent the number of shareholders is 18990 and capital collected from all the shareholders. 10,49,40,000/The membership of Shri Halsidhanath Sahakari Karakana Ltd has been accepted by different individuals and firms categorized into three classes as under A Class involves the grower (farmers of agricukturist) B Class involves the institute and non-grower These are:4. Co-operative Societies 5. The belgaum District Central Co-operative Bank Ltd.
i.e. Rs
6. Karnataka Bangalor.
State
Agro
Industrias
Co-operation,
C Class involves the state government of karnakata. The above said members born their share as share capital as Sr No 1 A Grower B co-operative society 2 3 Non-Grower C Government of Karanataka Total 3065 1 18990 1049.40 60.06 375.82 15,924 Member class No of Shares Share capital 613.52
TIME OFFICE LABOUR WELFARE DEPARTMENT
NAME OF THE DEPT Time Office
PERMA NENT
SEATION AL
GOV T
CONSTR U CTUAL
DAILY CONTR WAGE S 3 ACT
TOTA L
13
Security Store Civil Environm ent Administ rative General A/C
13 6 4 3
5 3
6 1 1
3 9 9
22 21 4 16
15
30
10
13
Cane A/C 7 Vehicle Medical Agricultu re Engineer 90 8 Manufact urer TOTAL 198 7 1 28
2 4 62
1 1 5
6 39
16 11 2 136
70 99
3 -
3 2
41 38
207 147
252
23
157
638
HEAD: - S.G. MORE.

Time office is one of the main part of the factory because in time office all records regarding many types of
departments and about the details of their employees are recorded so it must require in each and every organization. There is no special department like HRD or Personal management in the factory time and labour welfare office is there, in this office there is labour welfare officer & head time keeper, shift time keeper and wage clerk is there.
WELFARE FACILITY
To take care of all the workers, the organization will provide the some following facility those are:A. worker salary. B. and allowances C. D. E. increment every year. F. children. G. if any accident occurs. And medical facility are available School facility to the worker Canteen facility Promotion facility Permanent employees get one Quarter, hospital etc. facility Bonus is 08.33%based on the
PURCHASE SECTION
Purchasing plays an important and significant role in processing industry. Purchasing is tough task, which is to be performed very carefully. It functions on the principal of Money
saved in purchased is money gained in sales. Profit can also be earned in purchasing process by the purchase manager by his
knowledge about the entire market.
STORE DEPARMENT:THE WORKING FLOW CHART SHOWN BELOW
In this factory the store department in charge will be Shri Kadam sir under their here. the information will be
Main Points:The store keeper will check the supplier quantity and afterwards send to the section wise. For ex.:- Cement, Belt etc respective
After this the
material verification will be taken by under chief enginee The store keeper will entry the purchased material in a book in systematic manner. The daily transactions will be held in the books of power house main panel board. Store department is just like a godown because in department all materials needed to the factory are stored. which are
The store house which contains the 21 heads. They are follows:-
Heads :1. 2. Oil and lubricants Ex :- Bearing oil, Greece, etc being purpose machinery. Manufacturing goods Ex:Chemical, sulphur etc uses of sugar processing. 3. Hardware Ex:- Nutbolt, chain, MS bar etc uses of machinery maintenance. 4. Welding materials Ex:Welding rod, screen, black glass uses of welding purpose. 5. Drawing materials Ex:Ammonia paper, Dressing paper, etc machinery maintenance of engineering department. 6. machinery maintenance. 7. screw driver etc. 8. 9. Transmission of goods Ex:Bearing oil, oil seal, bearing glue Iron and steel These are used for machinery maintenance of engineering department. 10. Building materials Ex:Cement, steel, stone crystal, sand etc uses of concrete foundation for machinery. Tools and tackles Ex:- Spaner, Electrical goods Ex:- Pressure gauge, vacuum gauge, temperature gauge etc for
11.
Machinery and machine spare
Ex:- Bearing, coupling, nutbolt etc. 12. pipe, bend, flang etc 13. Chairs, tables etc 14. indent book, bucket etc. 15. Rubber goods Ex:- Bush, Stationary Ex:- Log book , Furniture and fixtures Ex:Pipe and pipe fitting Ex:-
rubber belt, wheel, ordinary material. 16. 17. 18. syringe, salines etc. 19. store recipt book etc.. 20. Computer spare Ex:Printing Ex:- Log, book, Library Ex:- Books.
Vehcle spare Medical Ex:- Druds, tablets,
Ribbon, cartridge, pen drive etc.
SALES SECTION
The main product of H.S.S.K.Ltd is sugar and by-Bagasses, Molasses, and press mud. These all are sold by
calling tenders. Because the factory has no right to sale these products directly in the open market. The Office Superintendent does this work and sales officer with the help of sugar directors Bangalore Central Govt. fixes the selling quantity. There are two types of sales:A. produced sugar.
Free sale--------- 90% of the
B. produced sugar. The factories by-products like, A. industry. B. distilleries. C. fertilizer.
Levy sale--------10% of the
Bagasses-------used in paper
Molasses-------used Press-Mud-----used
in in
SECURITY SECTION
There are 22 security guards and their function are, 1) vehicles. 2) Protecting and securing proper and best use of assets of the factory. 3) mentioned registers, A. B. C. D. E. get pass. Attendance registers. Visitors register. Vehicle register. Workers get pass Bagasse, Molasses, Press-Mud Maintaining the below Checking in-out persons and
Cane Development Section

Department-Structure
Chief For Manager
of
C.D.O
C.D.O Assistants
AssistantC.D.O Workers
Cane-Inspector
Field-Offices
The duty of C.D.O (Cane Development Officer) is to develop the growth of sugarcane seeds to the farmers. by providing training and
Cane development process:Providing farmers. Providing seeds on loan basis. Seeds are developed in the firm and distributed to farmers. Early detection and pests and crop decreases and providing solution Cane-Verities:Karnataka Hybrid Seeds. Coimbatore Coimbatore Cadlar Coimbatore Melattur. training to the
ENGINEERING-DEPARTMENT
HEAD:-M Umapati It is very important department to any factory, because engineer only have capacity to run the production smoothly. In this factory this section has217 employee functions of this section as follows, 1. To take of all the divisions like boiler, mill, electricity etc. The main
2. are in good condition. 3.
To ensure that all machineries
They
inform
board
of
management about scares materials and make them to purchase that material. 4. The repair the broken down machines and make them to work properly.
Department-Structure
Assistant Civil Engineer Engineer
Electrical
Environmental
Work-Shop
Engineer
Engineer
Engineer
Supervisor Supervisor
Supervisor
Supervisor
Supervisor
Worker worker
Worker
Worker
Worker
During off season their functions are, 1. machineries currently. 2. 3. Overhauling of the machineries. Machinery erection. Maintenance of all the
PRODUCTION DEPARTMENT
The
Chief
Engineer,
chief
chemist and Civil engineer from the structure of the production The chief engineers work is to technical and mechanical works and increase the production capacity. The chief chemist work is to instruct how where & when to use chemical in the production process. The civil engineers work is to plan where to situate the machineries and also they advise useful suggestions to make the production very easy and smooth. improve them to
COMPARATIVE STUDY OF PRODUCTION OF SUGAR

Sr. No CAPITAL CRUSHING PRODUCTION RATE YEAR SHARE SUGARCANE SUGAR RECOVERY
A/C
(In MT)
(In qtl)
1 2004-05 2 2005-06 3 2006-07 4 2007-08 1125.40 113345.000 1049.40 241130.000 972.40 210556.428 837.13 141430.852
151480
10.71
239950
11.40
275240
11.41
132920
11.82
Cane sugarcane from the farmers. Cane
Yard:-
In
this
collect
weight:-
In
this
they
measure sugarcane including vehicle after unloading the cane. they measure vehicle weight and they deduct that weight in the total weight. Thus they get the actual weight of the cane. They prepare 3 weight receipts with the help of computers, one goes to cane a/c, another goes to farmers and third one goes to transfot office.
Cane Carrier:- The unloaded cane is put down in carrier and carrier is driven by the motor It is concerned to cane cutter. Cane cutter:- there are two types cane cutter, 1) into 12 to 20 inches. 2) into 12 to 20 inches. After cutting cane is forwarded in fibriser. The fidrised cane is taken into mill section. Mill Section: - In this section, the cane is squeezed. Whatever the quantity of juice quizzed in the mill is pumped into clarification house. At this time they get the by- product called bagasse. Dorr:- The juice has come byproduct like press mud and bagasse before it is taken stored in the Dorr. After storing in the Dorr these are separated and move down ward. Evaporators:After 2nd cutter---In this cane cuts 1st cutter---In this cane cuts
classification of the juice stored in Dorr. Then it is taken in to Evaporators to evaporate that the water evaporation juice is taken into pan section. Pan Section:- In this section again syrup (juice) is boiled or heated by the steam. In this section they remove water, which is mixed in the syrup. After that make crystals.
Centrifugals:-
This
is
last
process in producing sugar in this section factory gets a main by-product molasses and stores it in storage tank.
They produce mainly 3 types of sugar, 1) 2) 3) L30: This is big crystal. L30: This is medium crystal. L20: This is small crystal.
GODOWN
After packing the sugar in the gunny, they are stored in the godown. In the godown they maintain register consisting the records of stock, dispatch and closing balance.Factory has 4 large God owns and their capacity is given below, STORE HOUSE 2 2 1lakhs 70000 CSPSCITY (In qtl bags)
SKILL
Skill is the distinctive capabilities or competence of the organization as a whole, Skills developed are, Product quality awareness. Time management. Result orientation. Dedication.
This type of training also known as job instruction training is the most commonly used method. Under this method, the individual is placed on a regular job though the skill necessary to perform that job. The trainee learns under the supervision of a qualified worker of instructor. On-the-job training has the advantage of giving firsthand knowledge and experience under the actual working condition. While the trainee learns how to perform job, he is also a regular worker rendering the services for which he paid. The problem of transfer of trainee is also minimized as the
person learns on-the job training methods includes job rotations, coaching job instruction or training through step-by-step and committee assignment.
STYLE
Style includes two things, one management style and organizational culture. Management style the way in which the managerial personnel behave and collectively spend their time to achieve organizational goals, it consists the way of lending. motivating and the style of leadership in the management. Here
they usually use authoritative style means top to down decision making parameter pertaining to day-to-day operation but they allow subordinates to participate in the decisions affecting their interest and ask their suggestions for their decisions. This makes organization more effective.
SRTATEGY
Strategy means the actions which a company plans in to or anticipates of changes in its external environment. In other words it is the determination of basis long term objectives or courses of action and allocation of resources to achieve the organizational goals. They are as follows, Waste Elimination S.H.S.S.K. Ltd. Produces molasses and sell it to liquor industries. And it uses
biogases boilers in order to generate energy for factory during crushing process. Cost Reduction: They are reducing the intake of employees and reducing the number of employees in order to reduce cost. They are not depending on K.P.T.C.L. for power while crushing process is carrying on. They produce energy by boilers.
SYSTEM
A system includes formal and informal procedures that support the strategy and structure. In other words, it is the processes and flows that shown how an company gets its day-to-day things done. This includes the procedures and the routines that will characterized how important work to be done. i.e.
financial system, hiring, promotion system and information system etc.
and performance appraisal
PRODUCTION PROCESS:Pressing of sugarcane to extract the juice. Boiling the juice until it begins to thicken and sugar begins to crystallizes. Spinning the crystals in a
centrifuge to remove the syrup, producing raw sugar. Shipping the raw sugar to a refinery where it is washed and filtered to and drying packing the refined sugar. remove
remaining non-sugar ingredients and color crystallizing,
INVENTORY CONTROL SYSTEM

Here in stored department the inventory control used FIFO. Here the method FIFO is appropriate because the sugarcane is not a durable commodity it is better to crush the sugarcane freshly. It is not stored for a long time because it turned in too dry sooner.
STAFF
Staffs refer to the people in the enterprise and their socialization into the socialiseational culture. Productive high performing employees are the companies
most valuable assets. The company follows a progressive policy taking keen interest in its personnel and well beings and progress, which builds a strong sense of belongingness.
Technical Department:A. quality assurance. B. C. D. departments E. F. Production planning and control Research and development Laboratory Tool room Manufacturing engineering Machine shop and maintenance
Non-Technical Department:A. B. Administration Clerical
DUTIES AND RESPONSIBILITIES:Technical Staff:Operators/Technicians:Carry out the work as per the instruction and job allocation. In process inspection wherever applicable.
Maintenance in charge:1.
maintenance. Planning of preventing
2.
maintenance.
Attending
breaks
down
3.
reduce break down.
Taking
corrective
action
for
4.
purchase intend.
Planning
spares
and
raising
5.
Maintaining the quality record.
SHARED VALUE
There are values shares by the members of the organization. It is the super ordinate goal that is centrally responsible for providing a core mission to the organization Used as an umbrella, which embraces all the other managerial activities. In short it says what does the organization stands for and what is believes in. A devoted and sincere contribution to the mankind through the various business activities of the company and compromise to the quality. 1. Continues growth is the main force behind the achievement of S.H.S.S.K ltd. 2. quality services. 3. with speed. Quick decision and execution Customer satisfaction through
SWOT ANNALYSIS OF THE COMPANY
STRENGHTS
Produces good quality of sugar. Its near the river of the
Vedganga so there is availability of the sufficient water. SHSSK is not dependent of
KPTCL for supply of power while production is carrying on the generator through rower.
WEAKNESS:Since it is agro based industry monsoon effects its production. Lack of good administration. Lack of infrastructure. Backward complexity technology and
OPPORTUNITIES:Possibility co-operation by bank. Arrangement for KPTCL grid. of willing
THREATS:Competition from the domestic player.
Due to unfavorable Govt. Polices, factory has to sell sugar below its production cost.
RESEA RCH ON FI NA NCI A L A NA L Y SI

NEED FOR THE STUDY

The study has been conducted for gaining practical knowledge about Ratio analysis of Shri Halasidhnath Sahakari Sakhar Karkhana. Ltd. The study is undertaken as a part of the MBA curriculum from 1st July 2010 to 20th August 2010 in the form of summer in plant training for the fulfillment of the requirement of MBA degree.
TITLE OF THE PROJECT

This project A Study on RATIO ANALYSIS of Halsidhanath Sahakari Sakhar Karkhana Ltd is considered as an analytical research
OBJECTIVES
To study the profitability of Halsidhanath Sahakari Sakhar Karkhana Ltd. Nipani. To study the liquidity position. To find activity turnover
To study operating efficiency of Halsidhanath Sahakari Sakhar Karkhana Ltd Nipani.
SCOPE OF THE STUDY

The scope of the study is identified after and during the study is conducted. The main scope of the study was to put into practical the theoretical aspect of the study into real life work experience. The study of Ratio analysis further the study is Shri Halasidhnath
based on last 5 years Annual Reports Sahakari Sakhar Karkhana. Ltd. LIMITATIONS OF THE STUDY The study duration (summer in plant) is short.
The analysis is limited to just five years of data study (from year 2005 to year 2009) for financial analysis. Limited interaction with the concerned heads due to their busy schedule. METHDOLOGY In preparing of this project the information collected from the following sources. Primary data: The Primary data has been collected from Personal Interaction with Finance manager Mrs.S.M.Siragave and other staff members. Secondary data: The major source of data for this project was collected through Balance sheet of SSHSKL Profit and loss account of 5 year period from 2005-2009
SAMPLING DESIGN Sampling unit Sampling Size : Financial Statements. : Last five years financial statements.
Tools Used: MS-Excel has been used for calculations.
THEORETICAL FRAME WORK

INTRODCTION:Finance is life blood of the business. The
financial management is the study about the process of procuring and judicious use of financial resources is a view to maximize the
value of the firm. There by the value of the owners i.e. the example of equity share holders in a company is maximized. The traditional view of financial management looks into the following function that a finance manager of a business firm will perform. 1. Arrangement of short-term and long-term funds from the financial institutions.
2.
Mobilization of funds
through
financial instruments like equity shares, bond Preference shares, debentures etc. 3. Orientation of finance with the accounting function and compliance of legal provisions relating to funds procurement, use and distribution. With increase in complexity of modern business situation, the role of the financial manager is not just confirmed to procurement of funds, but his area of functioning is extended to judicious and efficient use of funds available to the firm, keeping in view the objectives of the firm and expectations of providers of funds. DIFINATION:Financial Management has been defined differently by different scholars. 1)
Howard
and
Upton:-
Financial Management is the application of the planning

and control function to the finance functions 2)
Bringham:-
Financial
Management is an area of financial decision making harmonizing, individual motives and enterprise goals
MEANING OF RATIOS
Financial Statement contains a wealth of information which, if properly analyzed and interpreted, can provide valuable insights into a firms performance and position. Analysis Soft financial statements is of interest to (short terms well as long term)
investors,
security
analysts,
managers,
and
others
financial
statement analysis may be
done for a variety of purpose, which
may range from a simple analysis of the short -term liquidity position of the firm to a comprehensive assessment of the strengths and weaknesses of the firm in various areas. The principal tool of financial statement analysis is financial ratio analysis. An absolute figure does not convey much meaning. Ti, there for, become necessary to study a
certain figure in relation to some other relevant figure to arrive at certain conclusion e.g. If we give the figure of only gross profit earned by certain firm, we cannot say whether the gross profit is heavy, reasonable or sufficient for this purpose we must take into consideration the figure of sales. Thus, the gross profit to is required to be studied basis of in relation to
the sales to decide the percentage of gross profit to sale on the percentage we can conclude whether the gross profit
earned is reasonable or otherwise. Thus the relationship between the two figures expressed mathematically is called a ratio.
OBJECTIVES OF RATIO ANALYSIS:The study of financial statement of any corporate will help in knowing its present and future earning capacity. The study of financial resources can help in knowing whether a company can pay its long-term or short-term liabilities.
Its very use full to know how much working capital is employed in business and same effectively used. Its use full to measure earning capacity and its comparison to other competitive units. Help full to known marginal efficiency. Use full to future planning.
INTERPRETATION OF RATIOS
The benefit of the ratio analysis depends to great extent upon their correct interpretation. Interpretation requires
considerable ability on the part of the analyst. He has to decide whether the relationship disclosed by the ratio is satisfactory or not. He has to base his decision on experience, or on comparison be interpreted in any one of the following ways. 1) may
BASED ON SINGLE RATIO AND GROUP RATIOS:-
The interpretation may be based on individual ratio e.g. If current ratio persistently falls and goes below one, it can be interpreted as an indication of short-term insolvency. However, one cannot get the position corrected by studying individual ratio in isolation. It is therefore a common practice to study and interpret a set of several related ratios e.g. for short-term solvency both the
ratios, whose significance is not fully understood , are made more meaningful by the computing and study of additional relevant ratios. 2)
COMPARISON OVERTIME:Ratio analysis is primarily useful for studying trends,
indicating rise, decline or stability over a period of time. For this purpose, ratios by themselves are of no particular significance. For reveling such trends, the same ratio or a group of ratios is studied over period of years. Thus the movements in the ratios, rather than the ratios themselves, are important. 3)
INTER-FIRM COMPARISON:Ratios of undertakings are compared with the respective
ratios of other firm in the same industry and with the industry on average An immense benefit is likely to from such comparison as the concerns similarly situated are as a matter of fact , to sail in the same boat.
PROCEDURE OF ANALYSIS:First or all the depth, object and extent of analysis must be determined, so that necessary information can collect. The analysis is required to go through various financial statements of the business and collect other required information from the management. The analysis is required to rearrange the data given
in the financial statements in a manner, which will help the to analysis the statements easily and conveniently. After analyzing the statement the interpretation is made and the conclusions are drawn.
TYPES OF RATIOS:Classification of ratios is done in two ways. A. B. function. According to nature of items. According to purpose of the
A) 1) ratios exhibiting the
According to nature of items:Balance Sheet Ratios:The
relationship between two item or
group of items in the balance sheet e.r. Relation between current Assets and Current Liabilities. 2) Revenue Statement or Profit and loss account ratios:- The ratios disclosing the relationship between two items or group of items in the profit and loss account it. Relationship between Sales and Gross profit. 3) Inter Statement or Composite Ratio:- The ratios indicating the relationship of certain items in the balance sheet with some figures in the revenue statements i.e. and Fixed Assets. B) Functional Classification:Liquidity Ratios; - These ratios measure the liquid position of the enterprise i.e. whether the current assets to pay current liabilities as and when Net Profit and Capital or Sales
they mature. Thus, these ratios indicates short-term solvency of the business Leverage Ratios; They
indicate the relative use of debt and equity in financing assets of the firm. The extent, to which the practice of trading on equity can be carried on safety, can be known through these ratios. Activity Ratios:- These ratios measure the efficiency in the employment of funds in the business operations. They respect the companys level of activities in relation to its turnover. Profitability Ratios:There
ratios measure overall performance. And profits earning Capacity of the business. They reveal the effect of the business transaction on the profit position of the enterprise.
PROFITABILITY RATIO:1)
Gross Profit Ratio:- This ratio reflects the efficiency with which the management produces each unit product. The ratio is calculated as under: Gross Profit Ratio= Profit Sales It is the ratio which is most commonly employed by accountants for comparing the earnings of business for one period with those of other or earnings of one concern with of another in the same
industry. It indicates the degree to which selling prices goods per unit may decline without in losses on operations for the firm.
2) Net Profit Ratio:-Net Profit is that proportion of net sales

which remains to the owners or the shareholders after all costs. Charges and expenses including income-tax have been deducted. It is calculated as under.
Net profit (after tax) Sales

It differs from the ratio of operating profit is to net sales in as much as it is calculated after adding non-operating incomes, like interest, dividends on investment etc. To operating profit and deducting non-operating expenses such as loss on sale of old assets, provisions for legal damages etc. from such profits.
LIQUIDITY/SOLVENCY RATIO:1)
Current Ratio or working
capital Ratio or 2:1 Ratio:- It is a ratio of current assets to current liabilities. The ratio is calculated by dividing the current assets by the current liabilities.
Current Assets Current liabilities Certain authorities have suggested that in order to ensure solvency of a concern. Current assets should be at least twice the liabilities and therefore. his ration is known as 2:1 ratio.
2)
or Quick Ratio:-
Liquid Ratio or Acid Test Ratio The current Ratio fails to serve as a realistic
guide to the solvency of the concern, as the major portion on the current assets may comprise of such assets which cannot be converted immediately cash (e.g. stock) to meet the immediate liabilities. It this ratio is 1:1, it is considered that all claims will be met when Quick / Liquid Assets Current liabilities they arise.
ACTIVITY RATIO
1) Inventory Turnover Ratio:- The term Inventory Turnover refers to the number of times in a year inventories are sold and replaced. Inventory Turnover Ratio:Cost of Goods Sold or sales Average Inventory at cost It is Indication of the velocity with which merchandize moves through the business. This is a test of inventory to discover possible trouble in the form of over stocking or over valuation. It assists the financial manager in evaluating inventory policy. 2) Operating Ratio:The ratio
shows the percentage of net sales i.e. observed by the cost of goods sold operating. Naturally higher the ratio, the less favorable it is. Because it would leave a small margin to meet interest, dividends and other corporate needs.
Operating Ratio
Cost Goods Sold + Operating Expenses Net Sales
3)
Fixed Assets Turnover Ratio:-The ratio measures the efficiency in the utilization of fixed assets. This ratio indicates whether the fixed assets are being fully unitized A high ratio is an index of the vestment in fixed asset. Normally standard ratio taken as five times.
Fixed Assets Turnover Ratio
Sales Net Fixed Assets
4)
Total Assets Turnover Ratio:The ratio is arrived at by dividing sales by the total assets i.e. Sales Total Assets
The ratio indicates the sales generated per rupee of investment in total assets. Thus, it aims to point out the efficiency or inefficiency in the used of total assets or capital employed. Increase in ratio indicates that more revenue is generated per rupee of total investment in assets.
LEAVERGE RATIO:-
1)
of the firm.
Debt Equity Ratio:- It measure of the relative claims of creditors and owners against the assets
Total Debts Net worth owners Equity The term total debt includes all debts i. e. long term, short term mortgages. Bills, debentures etc. whereas the term net worth means equity share capital, reserves and surplus i.e. proprietors. Funds or equity 1:1 ratio is acceptable. 2) Fixed Assets to worth Ratio:Fixed assets Net worth
It indicates that the company has used short term funds for acquiring fixed assets, which policy is not desirable. To the extent fixed assets exceed the amount of capital and reserves, the working capital are depleted. When the amount of proprietors
fund exceeds the value of fixed Assets i.e. when the percentage is less than 100, a part of the working capital is supplies by the shareholders. Provided that there are no other non-current assets.
DATA ANALIYSIS AND INTERPRETATION
1)
PROFITABILITY RATIO:Gross Profit
Gross Profit Ratio = Sales YEAR GROSS PROFIT SALES
X 100
GROSS PROFIT RATIO 23.26
2004-05
7,00,15,301.58
301002504.06 13.66
2005-06
41317359.41
302304793.75
11.02 2006-07 3,79,03,469.81 337985566.07 17.44 2007-08 6,09,91,621.57 349546301.04 12.63 2008-09 5,44,14,256.14 430543494.12
INTERPRETATION:The Gross-Profit Margin ratio of SHSSKL has ups and down in these five years period. The gross profit measures the relation between the sales and profits. The gross-profit ratio in the year 2004-05 is 23.26 and next year 2005-06 is 13.66 and in 2006-07 its 11.22 then in 2008its become 17.44 and in 2008-09 it is 12.63.
C)
Net Profit Margin Ratio:Net Profit Net Profit Ratio = Sales YEAR NET PROFIT SALES GROSS-NET RATIO X 100
2004-05
14569011.39
301002504.06
4.84
2005-06
4053781.26
302304793.75
1.34
2006-07
1179916.79
337985566.07
0.34
2007-08
2178816.70
349546301.04
0.62
2008-09
1653143.88
430543494.12
0.38
INTERPRETATION
The net profit is the indicative of the managements ability to operate the business with sufficient success. In the above bar diagram it shows that the net profit ratio of SHSSKL has increased 4.84 in 2004-05 but it decreased in the next years 1.34
in 2004-05 and it again decreased in 2006-07.then it increased 0.62 and it again decreased 0.38.in 2008-09.
LIQUIDITY RATIO
CURRENT RATIO:Current Ratio = Current Assets
Current Liabilities YEAR Current Assets Current Liabilities 454294589.7 RATIO
308321871.3 2004-05 265422636.1 2005-06 875637598.7 2006-07 446111012.4 2007-08 471836449.8 2008-09
0.67
563620481.6
0.47
623087336.2
1.40
565628200.9
0.78
542837550.5
0.86
S INTERPRETATION:An ideal current ratio is 2: 1 Thus 2 is the considered as a safe margin from the above diagram it determines that the firm has safe margin in1.4 2006-07 and in 2004-06 it has 0.67&0.47 moreover it has not safe margin 2007-09 e.i to 0.78& 0.86
Liquidity Ratio
Liquidity Ratio = Liquid Assets Liquid Liabilities Liquid Assets= Current Assets-Inventories Liquid-Liabilities = Current Liabilities - Bank-overdraft Years 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Liquid assets Liquid Liabilities 110024781.8 454294589.7 37885949.4 496655612.5 102195141.3 163116368.5 563620481.6 623087336.2 565628200.9 542837550.5 Ratio 0.24 0.067 0.79 0.18 0.30
INTERPRETATION:Usually, a high acid test ratio is an indication of that firm s better liquidity position. From the above table it determines that
the firm has 0.24 &0.067 in the year 2004-06 and it increased 0.79 in 2006-07 and it again decreased 0.18 in 2007-08 then again raised0.30 in 2008-09
ACTIVITY RATIO
INVENTORY TURN-OVER RATIO
Sales
Inventory Turn-Over ratio= Average Inventory Opening-Stock + Closing-Stock Average Inventory = 2
Years
Average Inventory
Sales
Inventory Turn-Over ratio 1.56
192353685.5 2004-2005 301002504.06
2005-2006
234674943.5 302304793.75
1.28
2006-2007
324789674.5 337985566.07
1.04
2007-2008
342085995.0 349546301.04
1.02
2008-2009
305513910.0 430543494.12
1.40
INTERPRETATION: This means that the inventory in the first year has been sold1.56 very slow in 2004-05 And it again increase in 2005-08 e.i 1.28, 1.04, 1.02.and in last year it again decreased 1.4 in 2008-09
FIXED ASSETS TURN-OVER RATIO

Sales
Fixed assets turn-over ratio =

Fixed-Assets
YEARS
SALES
FIXED-ASSETS
FIXED ASSETS TURN-OVER RATIO 0.85 0.83 0.92 0.94 0.66
2004-05 2005-06 2006-07 2007-08 2008-09
301002504.06 302304793.75 337985566.07 349546301.04 430543494.12
350064970.91 361712835.66 363487965.66 371470849.66 647506096.70
INTERPRETATION:The ratio indicates the extent to which the investment in fixed assets contributed towards to sales. As the figure shows, in 2004-05 the fixed assets turnover ratio is 0.85 and it increase in the next 3years continuously with 0.83, 0.92, 0.94. And it again decreases in 2008-09 e.i to 0.66.
CURRENT ASSETS TURN-OVER RATIO

Sales
Current assets turn-over ratio

Assets YEARS SALES CURRENT ASSETS
=
Current
CURRENT ASSETS TURN-OVER RATIO

0.97 1.13 0.38 0.78 0.91
2004-2005 301002504.06 308321871.3 2005-2006 302304793.75 265422636.1 2006-2007 337985566.07 875637598.7 2007-2008 349546301.04 446111012.4 2008-2009 430543494.12 471836449.8
INTERPRETATION:The current assets turnover ratio measures that how quickly the short term obligations can be met. In the following graph it is shown that there is increasing0.97, 1.13 in 2004-06 current assets
turnover ratio. And it falls0.38 in 2006-07 and it increase slightly0.78 to 0.91 in 2007-09.
Operating-Efficiency Ratio:1) = Direct Material cost to sales Direct Material cost *100
Net-sales YEARS
Direct Material
200389076.8 219224160.5
SALES
Percentage (%)
66.57 72.51 71.43 64.23 71.86
2004-2005 2005-2006
301002504.06 302304793.75 337985566.07 349546301.04 430543494.12
2006-2007 241453980.32 2007-2008 224546979.08 2008-2009 309403524.5
INTERPRETATION:- Direct Material cost to sales should be low enough to leave portion of sales to give fair return to investors from the above table show that 66.57 & 64.23 in the year 2004-05
and 2007-08 it give the fair to the investors where as72.51, 71.43 and 71.86. 2005-07and 2008-09 are not up to mark able .
2) =
Direct Labour cost to sales Direct Labour cost *100 Net-sales
YEARS
Direct Labour
14885365.90 16958271.40 27661900.24 34862365.60 35562670.05
SALES
Percentage (%)
4.94 5.60 8.18 9.97 8.25
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
301002504.06 302304793.75 337985566.07 349546301.04 430543494.12
INTERPRETATION:- From the above table shows that the cost of direct labour of the firm in the year of 2004-05 is 4.94% where it compare to the next 3year it increase5.60, 8.18 & 9.97. Slithightlliy. And it again decreases in the year of 2008-09. It shows that the firm efficient utilized the labour in the year of 2004-05 and 2005-06.
Factory Overhead to Sales:BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 76
3)
Factory Overhead to Sales = Factory Overhead cost *100 Net-sales
YEARS
Factory Overhead
15712759.79 25581554.35 30966215.70 32038895.00 29269482.40
Net-SALES
Percentage (%)
5.22 8.46 9.16 9.16 6.79
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
301002504.06 302304793.75 337985566.07 349546301.04 430543494.12
INTERPRETATION: - From the above table shows that the cost of manufacturing overhead of the firm in the year of 2004-05 is 5.22% where it compare to the next 3year it increase 8.46,9.16,& 9.16 in 2005-08. And it again decreases 6.79 in the year of 2008-09.
Findings
Gross profit and net profits are decreased during the period of study, which indicates that firms inefficient management in manufacturing and trading operations.
Gross profit and net profits are increased during the period of 2004-05 which indicates that firms efficient management in manufacturing and trading operations. Liquidity ratio of the firm is not better liquidity position in over the five years. It shows that the firm had not sufficient liquid assets.
The inventory of the firm in the first year has been sold very slow. And there is an increase in the movement of the inventories but it slightly decreased in the last year. This may be a sign not good to the firm.
The fixed assets turnover ratio of the firm has in 2004-05 the ratio is 0.85 and it increase in
the next 3years continuously and it again decrease in 2008-09. The current assets turnover
ratio is increasing during the period of 2004-06 and again it decrease in the period of 2006-07. And again increase in next two year slithightlliy. Direct Material cost ratio of the firm is has less material cost during the period of 2004-05 & 2007-08 and it raised in the year of 2005-06 and 2008-09.
The cost of direct labour of the firm in the year of 2004-05 is 4.94%and it increasing slithightlliy up to 2007-08 and it decrease in the next year. The cost of manufacturing
overhead of the firm in the year of 2004-05 is 5.22% where it compare to the next 3year it increase rapidly.
SUGGESTIONS
The profit Of the Company Is not in a good Position For That company has to Take Alternative Actions such As Increasing in Procurement in sugarcane , Production, and Control in Expenses Like, Administrative, selling Etc. The firms have low current ratio so it should increase its current ratio where it can meet its short term obligation smoothly.
Liquidity ratio of the firm is not better liquidity position in over the five years. So I suggested that the firm maintain
proper liquid funds like cash and bank balance. It should enhance its employees efficiency, more training needed to its employees in order to increase its production capacity and minimize mistakes while performing the tasks, also more safety precaution need to implement to the employees who directly working on process sugar production
CONCLUSION
This project of Ratio analysis in the production concern is not merely a work of the project. But a brief knowledge and experience of that how to analyze the financial performance of the firm. The study undertaken has brought in to the light of the following conclusions. According to this project I came to know that from the
analysis of financial statements it is clear that SHSSK Ltd.
Have
been incurring loss during the period of study. So the firm should focus on getting of profits in the coming years by taking care internal as well as external factors. And with regard to resources, the firm is take utilization of the assets properly. And also the firm has a maintained low inventory.
PROVISIONAL BALANCE SHEET AS AT 31st MARCH, 2005
LIABILITY SOURCES OF FUNDS Share capital
AMOUNT
ASSETS FIXED ASSETS
AMOUNT
88846018.59 Gross block
350064970.
FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD 09 Reserves and surplus 274191573.3 Less: 4 Depreciation Net Block 350064970. 09 6975000.00
Investment CURRENT LIABILITIES Working capital CURRENT ASSETS 279908387.0 Inventories 8 4508406.18 Cash in hand 7217637.93 Cash at bank 14373128.04 Advances
198297089. 91 374639.72 2879292.96 60423970.9 1 46346877.8 0 152726340. 15
Statuary deposits Deposit Suspense
Sundries
84028.25 Other assets
Other
Sundries
3239794.41 Profit &loss Account 118309456.4 7 26653751.52
loan funds
Cane bills and other payables TOTAL
818088181.8 1
TOTAL
818088181. 81
TRADING AND PROFIT & LOSS ACCOUNT AS ON 31-3-2005
Expenditure Opening stock
AMOUNT
Incomes
AMOUNT 270160956.1 6 30841547.90 183235461.0 0
201471850.0 Sugar sales 0 Other sales
Cost of production
212750813.4 Closing stock 8 70015301.58
Gross profit
Total
484237965.0 Total 6 7247138.80 By gross profit 661534.60 Other income 762054.92 and 575316.06
484237965.0 6 70015301.58 2071499.26
Establishment charges Travelling expenses Exp .on vehicle Printing stationery Meetings Expenses Interest charges
&AGM
299139.58
&Insurance
35111966.31
Govt Tax & Other Social Expenses Rent rates & Taxes Other management Expenses Bonus for the year 2005 Depreciation
121490.67 198765.78 1257774.92 1001874.80
1600000.00
8680733.00
FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD Net profit TOTAL 14569011.39 72086800.84 TOTAL 72086800.84

LIABILITY SOURCES OF FUNDS Share capital AMOUNT ASSETS FIXED ASSETS 97239684.00 Gross block 361712835.6 6 AMOUNT
Reserves and surplus
270171150.6 Less: 0 Depreciation Net Block 361712835.6 6 587259.00
LOAN FUNDS
Loans CURRENT LIABILITIES Working capital
Investment CURRENT ASSETS 321283573.1 Inventories 6 10513761.18 Cash in hand 7539531.49 Cash at bank 29044436.06 Advances 120071494.2 Other assets 9 9966024.46 Profit &loss Account
303308585.5 3 717669.52 16549209.47 49015066.50 37433717.42
Statuary deposits Deposit suspense Sundries
Other
Sundries
161706973.2 3
FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD Cane bills and other payables 65201661.09
TOTAL
931031316.3 3
TOTAL
931031316.3 3
AMOUNT
Incomes
AMOUNT 281761927.5 0 205428665.2 5 286890978.0 0
Cost of production
365419503.3 Closing stock 4 41317359.41
Gross profit
Total
589195771.7 Total 5 8198563.96 By gross profit 487622.01 Other income 1547647.76 683769.76
589195771.7 5 41317359.41 11971545.7
Establishment charges Travelling expenses Exp .on vehicle Printing and
FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD stationery Meetings &AGM Expenses Interest &Insurance charges Govt Tax & Other Social Expenses Rent rates & Taxes Other management Exp Bonus for the year 2006 Bonus & paid- 05 Depreciation Net profit TOTAL Incentive 385579.30
29539180.87
573.00 435704.22 1978687.76 605143.20
1700000.00
1618790.00
2053862.00 4053781.26 53288905.10 TOTAL 53288905.10

LIABILITY SOURCES OF FUNDS Share capital AMOUNT ASSETS FIXED ASSETS 104940110.0 Gross block 0 272212433.6 Less: 363487965.6 6 -----------AMOUNT
FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD 2 Depreciation LOAN FUNDS Net Block --363487965.6 6 587259.00
Investment CURRENT ASSETS 3261620.57 Inventories 187080.00 Cash in hand 13747634.18 Cash at bank 8619351.89 Advances 6317241.93 Receivables 164768060.1 Profit &loss 0 Account 2037609.50 101250338.1 3 1000239879. 90 TOTAL
378981986.2 8 327612.88 3238097.38 47810043.43 45279858.83 160527056.4 4
Statuary deposits Other funds Deposit payable Advance from debtors Provisions for expenses Other Creditor liability
TOTAL
1000239879. 90
AMOUNT
Incomes
AMOUNT 321102204.0 5 16883368.02 362688371.0 0
Cost of production
375879489.2 Closing stock 6 37903469.81
Gross profit
Total
700673937.0 Total 7 10876604.35 By gross profit 7705246.66 Other income 29337549.35 Other Misc
700673937.0 7 37903469.81
Administration Employee cost Administration Expenses Financial Expenses
11835306.34
1401824.00
income
Depreciation Net profit TOTAL 2041283.00 1179916.79 51140600.15 TOTAL 51140600.15

LIABILITY SOURCES OF FUNDS Share capital AMOUNT ASSETS FIXED ASSETS 110288173.0 Gross block 0 274371212.6 Less: 0 Depreciation Net Block 371470849.6 6 -------------------371470849.6 6 1087259.00 AMOUNT
LOAN FUNDS
26729775.00
INVESTMENT CURRENT ASSETS
277252952.2 Inventories 0 160307605.1 Cash in hand 8 7820327.58 Cash at bank 8237656.89 Advances 120856075.8 other assets 0 61753564.01 Profit &loss
343915871.1 4 1446247.76
Statuary deposits
Suspense Deposit Sundries
5289323.68 44575300.80 50884269.05
Other sundries
158348240.3
FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD Account Cane bills and Other payable Creditor 73676864.17 investment 1087259.00 4
-----------------977017361.4 3 TOTAL 977017361.4 3
TOTAL
AMOUNT
Incomes
AMOUNT 334738255.9 4 14808045.10 1893561.00
Cost of production
249243488.4 Work in progress 7 60991621.57 Closing stock
Gross profit
321483619.0 0
Total
672923481.0 Total 4
672923481.0 4
FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD Establishment charges Travelling expenses Exp .on vehicle Printing and stationery Meetings &AGM Expenses Interest &Insurance charges Govt Tax & Other Social Expenses Rent rates & Taxes Other management Exp Bonus for the year 2007 Bonus & paid- 07 Depreciation Net profit TOTAL Incentive 11233553.20 By gross profit 953442.66 Other income 1668460.99 834305.94 60991621.57 10365431.00
374096.00
42150121.77
239482.00 233234.86 1945779.45 3513408.60
-------------3873572.00
2158779.00 2178816.10 71357052.57 TOTAL 71357052.57

LIABILITY SOURCES OF FUNDS Share capital AMOUNT ASSETS FIXED ASSETS 110870645.0 Gross block 647506096.7 AMOUNT
FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD 0 Reserves and surplus 537014300 .20 Less: Depreciation Net Block 0 -------------------647506096.7 0 600259.00
LOAN FUNDS
85915406.30
INVESTMENT CURRENT ASSETS
290699121.2 Inventories 0 20855108.18 Cash in hand 3444808.93 Cash at bank 8613186.089 Advances 121366173.1 other assets 3 65532462.01 Profit &loss Account 32326689.23
308720081.3 7 531803.69 61187786.16 49701553.25 51695225.44
Statuary deposits Suspense Deposit sundries
Other sundries
156695096.4 6
Cane bills and Other payable Creditor
-----------------977017361.4 3 TOTAL 977017361.4 3
TOTAL
AMOUNT
Incomes
AMOUNT 389224030.4 2 41319463.70 -----------
Cost of production
340402697.9 Work in progress 8 54414256.14 Closing stock
Gross profit
287650640.0 0
Total
718194134.1 Total 2 12621652.10 By gross profit 985614.25 Other income 1830501.57 672343.25
718194134.1 2 54414256.14 24316580.24
Establishment charges Travelling expenses Exp .on vehicle Printing and stationery Meetings &AGM Expenses Interest &Insurance charges Govt Tax & Other Social Expenses Rent rates & Taxes Other management Exp Bonus & Incentive
484440.00
43032479.08
1616986.78 223744.90 4227787.22 1367794.55
4700000.00
FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD 2008-09 Bonus paid & Incentive 5015552.80
Depreciation Net profit TOTAL
298796.00 1653143.88 78730836,38 TOTAL 78730836,38

Basaveshwar Engineering College, Bagalkot A Projct ON RATIO ANALYSIS

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Basaveshwar Engineering College, Bagalkot A Projct ON RATIO ANALYSIS

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FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.

CONTE NTS PART I EXECUTIVE SUMMARY PART II

INDUSTRY PROFILE PART III INTRODUCTION OF COMPANY PART IV

RESEARCH METHDOLOGY OBJECTIVES OF THE STUDY PART V

WORKING CAPITAL MANAGEMENT PART VI

DATA ANALYSIS AND INTERPRETATION PART V II

FINDINGS SUGGESTIONS & CONCLUSIONS.

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 2

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 3

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

NEED FOR THE STUDY

TITLE OF THE PROJECT

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 4

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

To study operating efficiency of Halsidhanath Sahakari Sakhar Karkhana Ltd Nipani.

SCOPE OF THE STUDY

based on last 5 years Annual Reports Sahakari Sakhar Karkhana. Ltd.

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 5

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 6

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 7

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

proper liquid funds like cash and bank balance.

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 8

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 10

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 11

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

PFROFILE OF THE COMPANY

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 12

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

Name of the factory

Shree Halasidnath Sahakari Sakhar Karkhana LTD.

1st Crushing Season

STD CODE (08338) Chairman-220355 Office-222090

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 13

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

BACKGROUND & INCEPTION COMPANY.

area with a view to provide an good option to area like sugarcane.

held on 9-11-1982. The chief guest for

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

andAlur,Bhairapur,Kanagala,Shippur,Karajaga,Rashing,Bad,Nangnur, Mattiwade,Hitani,Shekinhasur,Konankeri, ges in Hukkeri taluka. sadlaga thirteen(13) vill

Only Belgum in Belgum laluka and Soudatti

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 16

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 17

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

Hukkeri Raibag Belgaum Jamkhandi Athani Kagal

Belgaum Belgaum Belgaum Baglkot Belgaum Kholapur TOTAL

THERE IS TOTALLY 15 BODS.

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 18

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 19

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 20

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

Karanataka Total 18990