SAHAKARI KHAND UDYOG MANDAL LTD.

:: GUIDED BY :: PROF.PIYUSH MARTHAK

: PREPARED BY: ANITA MANEK CHANDANI LALANI KINJAL BUTANI KOMAL VASANT MANISHA KISHOR MANSI KARAVADRA RINKU MARVANIYA SHITAL DHOLAKIYA

M.B.A. (SEM-1) SUBMITTED TO: Gujarat Technological University ACADEMIC YEAR: 2011-2012

PREFACE
Each and every activity starts with some predetermined goal and to achieve that goal, management plays and significant role. Sincere last few decades industrial activates enable us to use national and international products .for this, only theoretical knowledge is not sufficient because management is over expanding and dynamic field. Thus with a view to acquire practical knowledge, the students of MBA has to undergo industrial training for 15 days in an established unit. Here we have also to observe the day to day business practices and get all the information about the unit. There after report is prepared and submitted in the GTU. During the academic year 2011-2012 we have taken the industrial training at Sahakari Khand Udhyog Mandal LTD. Basically, we task training under financial department.

DECLARATION
We undersigned the students of MBA hereby declare that the project work presented in this report is own contribution. It has been carried out under the supervision of Prof. Piyush Marthak, T.N.Rao College Rajkot. This work has not been previously submitted to any other university for any other examination. We also promise not to allow any other person to copy from this report in any form.

ACKNOWLEDGEMENT

We are obliged to give our sincere thanks to all the personalities who spare their time for us on our project report. First of all we are grateful to authorities of. Who allowed us for training in their prestigious unit and providing us with all the necessary information? We also thank Prof. Piyush Marthak for guiding me in the project work. Last, but certainly not the least, we express our gratitude to our family& friend for their help and co-operation throughout our project work.

INDEX
1) Summary about study 2) Project at glance Objectives of study Methodology of study Limitation of study 3) General information 4) Introduction 5) Financial information 6) SWOT analysis 7) Suggestion 8) Finding 9) Conclusion 10)Bibliography

SUMMARY ABOUT STUDY

The project report is a comprehensive study on SAHAKARI KHAND UDYOG MANADAL LIMITED we were appearing of 21 days and after to make it. The project report has been emphasis information about various departments like general information, personnel management, marketing management, financial management. SAHAKARI KHAND UDYOG MANADAL LIMITED story is all grit, determination and accomplishment SAHAKARI KHAND UDYOG MANADAL LIMITED success story started in 1956 with Gandevi Dist Navsari via Bilimora. Today the group activities include sugar theses product innovation and qualities have found an ever ready domestic and export market. This group is a market leader in sugar product. After at all we keep out one thing it is monopolistic market leader in future almost that have catch them first position according to my thoughts.

PROJECT AT GLANCE

OBJECTIVE OF STUDY
The main objectives of the project report are as follows: 1 To get practical knowledge. 2 The student becomes aware about an individual environment. 3 The student can get practical knowledge. 4 To get an overall idea about the company. 5 To be aware of the practical aspect of the company. 6 To know about the financial management of the company. 7 Practical knowledge may be even on the job where we are having an opportunity to apply and develop these principles by practical. 8 The student can become aware about and industrial environment problem opportunities and also gives them chance to show their skills.

METHODOLOGY OF STUDY
The information used for the preparation this report has been collected through: Personal interview. Discussion with various department needs. Discussion with chief accountant Mr Jitendra N Nayak and managing director of the industry Mr Ganesh D Patil. Theoretical material available within the company.

After analysing information obtain from the above mentioned sources, I had presented this report.

LIMITATION OF STUDY
The limitations which are projected on preparing the project report are as follows: Due to busy schedule of various department manager and executives, they were unable to giving information much more in detail. To maintain secrecy, all the information was provided by the finance manager. The study was limited for short duration so, it was difficult to collect all information about the company.

GENERAL INFORMATION

GENERAL INFORMATION
Name of Organization Address :-SAHAKARI KHAND UDYOG MANADAL LTD :-SAHAKARI KHAND UDYOG MANADAL LTD GANDEVI VIA BILIMORA DIST- NAVSARI GUJRAT STATE PIN CODE 396360 :- (02634) 262344 (02634) 262346 (02634) 262348 :- (02634) 262384 :- Gandevi_sugar@sanchar.net.in : - KHAND UDYOG : - G-275of 1956 : - 1956 : - 15.5 ACRE : - Co-Operative : - Local : - All over India, abroad : - Large Scale industry : - Sugar :-State bank of India, Bank of Baroda (gandevi),
Dena bank, HDFC bank Investment No. of Staff : - 38, 81,508 : - 1044

Telephone No

Fax No E-mail Telegram Regd. No of Factory Establishment Year Area Covered Form of Organization Labour Availability Major Market Size Main Product Bankers

Weekly Off Sales Turnover No of Shift Profit of Last Year Name of Promoter

: - Sunday : - Approx. 300 to 400 CRORE :-3 : - 2, 17,815 : - Jayantilal B. Patel Ganesh D. Patil

INTRODUCTION OF COMPANY
A group of enterprising businessment with keen interest and year of experience in manufacturing sugar industry came together and formed a industry at Gandevi district navsari in the state of Gujarat, India. SAHAKARI KHAND UDYOG MANADAL LIMITED is one of the oldest industries in India engaged in the manufacture of sugar. SAHAKARI KHAND UDYOG MANADAL LIMITED story is all about grit, determination and accomplished. It goes on prove that Co-operative and dedication pays soon they embarked on their first industrial venture with their modern project. Today the group activities include sugar these products by virtue of product innovation and quality have found an ever ready domestic and export market.

FINANCIAL INFORMATION

FINANCIAL INFORMATION
Introduction:Finance is the lifeblood of business. No company or firm can survive long without sufficient finance. In the money oriented economy of today finance is one of the functions of economic activity of mankind. Finance is required to bring the business into existed to keep it alive and to see it growing. Financial management is concerned with the efficient use of an important economic resource namely capital funds

ORGANIZATION CHART OF FINANACE DEPARTMENT

Head of the department

Finance Manager

Accounting Operation

Special Auditor

Production Department

Chief Accountant

Marketing Department

Staff

H.R. Department

RATIO ANALYSIS

INDEX 1) Introduction 2) Accounting Ratio 3) Interpretation Ratio 4) Method and Purchase of analysis 5) Classification of accounting Ratioal a) Traditional classification i) Revenue statement ratio ii) Balance sheet ratio iii) Composite ratio b) Functional classification i) Liquidity ratio ii) Profitability ratio iii) Leverage ratio iv) Activity ratio 6) Calculation of different Ratio 7) Advantages of ratio analysis 8) Limitation of ratio analysis

INTRODUCTION

INTRODUCTION
The financial statements as prepared and presented annually are of little use for guidance of prospective investors, creditors and even management. If relationship between various related items in these financial statement are established, they can provide useful clues to gauge accurfully the financial health and ability of business to make profit this relation between two relate items of financial statement is known as ratio. An investors is interested in information regarding the exact financial position of the business its earning capacity, the present the position with regarded to profitability and the future possibility. He has only the published accounts of the company before him which would enable him to take any decision with respect to investing his money. The published accounts contain profit and loss A/c, balance sheet, directors report, auditors report could be ascertained from profit and loss account. An idea about the financial position can be had from the balance sheet. The ratio analysis is most important to know about the company financial position.

ACCOUNTING RATIO
A ratio is customarily expired in three different ways. It may be expired as a proportion between two figures. For example, if the current assets are twice the currents liabilities it can be said that the current ratio 2:1. Second methods is to express it in the form of percentage E.g. the rate of return on capital employee is 30% Third method is to express it as rates. E.g. stock turnover is 6 stocks turns over 6 times a year. The use of ratio has become increasing popular during last few years. Only originally the bankers used the current ratio to judge the capacity of the borrowing business enterprises to repay the loan and make regular interest payment today it has assumed such an important that anybody connected with the business turns ratio for measuring the financial strength and earning capacity of the business. A supplier of funds in the form of share capital would like to analyses the accounts to ascertain its earning capacity and future prospects. A bankers or other creditor will measure the repaying capacity and financial strength on the basis of accounts ratio.

INTERPRETATION THROUGH RATIO

Only calculating ratio is of no use unless it is interpreted so as to be useful management in making policy decision the following method are used for this purpose. Comparison with ideal ratio Comparison with past ratio Help a some related ratio Comparison with ratio of other firms 1) Comparison with ideal ratio:It should be compared with some generally accepted ideals ratio e.g. the current ratio of a firm is found to be 1.5:1. this ratio does not guide the management as regarded its liquid position there are some ideals ratio in every types of business with which the individual firm ratio are compared so that useful conclusions can be drawn 2) Comparison with past ratio:If the present ratio of a company are compared with its past ratio. This will help the management in lacking corrective measure. If necessary the firm can also arrive its average ratio for its last three to five year can compare it with industry average. 3) Help of some related ratio:The analysis and interpretations of some ratio may be made more meaningful if some related are also considered ti may happen that the current ratio may show a good position because of large stock continued in the currents assets but it suggestion that the sale is very slow and the liquid position is not as comfortable as it appears. 4) Comparison with ratio of other firm:Comparison of firms ratio with those of other firms in the same industry is useful and indicated strength or weakness of the firms position & preference e.g. if the gross ratio of textile industry as a whole is 20% the ratio of a persecuted firm is 15% reveals an understanding position.

METHOD & PURPOSES OF ANALYSIS

Accounting ratio is generally classified as follows: Traditional classification Functional classification Traditional classification: The ratios are grouped into these categories on the basis of the statement from which the figures are taken for company the ratio. The ratios according to this classification are: Revenue statement ratio: These are the ratio compared on the basis of items taken from revenue statement i.e. profit & loss account e.g. net profit ratio is compared by dividing net profit by sales. Balance sheet ratio: When two items or group of items appearing in the balance sheet are compared the ratio so obtained is a balance sheet ratio. Composite ratio: A ratio sawing the relationship between one items taken from balance sheet and another taken from profit and loss A/c is a composite ratio or a combined ratio known as balance sheet & revenue statement ratio

Functional classification:
There are four categories of ratio. Liquidity ratio: These ratios indicate the position of liquidity. They are computed to ascertain which the company is capable of meeting its short term obligation from its short term resource. For example, current ratio shown the capacity of a firm to meet its current liabilities as a when they material. e.g. 1) Current ratio 2) Liquidity ratio 3) Acid test ratio 1) Profitability ratio:

A number of ratios are designed to indicate the profitability of the business and are grouped into the category of profitability ratio for example: - return on capital employee is an example of profitability ratio. E.g. (1) gross profit ratio (2) net profit ratio (3) expense ratio (4) operating ratio (5) return on capital employee ratio (6) return on shareholders funds (7) debts service average ratio. 2) Average ratio:The composition of capital of business the preparations of owner capital & capital provide by outside are reflected by leverage ratio For example, gearing ratio showing the relationship between the preference capital & ordinary capital is a leverage ratio e.g. (1) proprietary ratio (2) debt-equity ratio (3) gearing ratio (4) fixed capital fixed assets ratio 3) Activity or efficiency ratio:These are the ratio showing the effectiveness with which the resources of the business are employed. It significant the efficiency of the management for example stock turnover is an activity ratio showing the number of times the average stock is turned over during the year. E.g. debtors ratio or turnover creditor ratio or turnover, total assets turnover, fixed assets, turnover etc.

CLASSIFIATION OF ACCOUNTING RATIO

In order to easily understand the ratio the traditional classification is more useful. Hence, the ratio has been discussed according to this classification: {1} Revenue statement ratio:The ratio computed showing relationship between the two items of profit and loss A/c are enumerated bellows: For 2010 (1) Gross profit ratio:G.P = 32, 65, 63,556

SALES = 2,95,30,80,754 Gross profit ratio = G.P Sales = X 100

326563556 X 100 2953082754

11.05 %

For 2009
Gross Profit = 286099089 Sales = 2391577343 Gross Profit = G.P Sales

X 100

286099089 X 100 2391577343

11.96 %

(2) Net Profit Ratio

For 2010 Net profit Sales Net Profit = 217815 = 2953080754 = N.P Sales

X 100

= 217815 2953080754 = 0.0074 % For 2009 Net Profit = 223428 Sales = 2391577943 Net Profit = N.P Sales 223428 = 2391577943

X 100

X 100

X 100

= 0.0093 %

(3) Stock Turnover Ratio For 2010 Stock turnover ratio = Cost of goods sold = Sales G.P = 2391577343 286099089 = 2626517198 = 466003982 = Cost of Sales Average Stock 2626517198 1466003982 2 times

Average Stock

Stock Turn Over Ratio

= For 2009

Cost of goods sold Average stock

= 2105478254 = 1206527128

= 2105478254 1206527128 = 1.745 = 2 times

Balance Sheet Ratio For 2010 (1) Current Ratio = Current Assets Current Liability

Current Assets = 2728816120 Current Liability= 162048222

2728816120 162048222 16.84: 1

= For 2009

Current Assets = 1948643765 Current Liability= 149630117 = 1948643765 149630117 13.02: 1

For 2010

(2) Liquid Ratio =

Liquid Assets Liquid Liability

1139079242 162048222 7.03: 1

For 2009 Liquid Ratio = 603586944 149630117

4.03: 1

Composite Ratio
(1) Debtors Ratio For 2010 Debtors = 3258286 Credit Sales = 2953080754

Debtors Ratio

= Debtors + Bills receivable Credit Sales

X 365

= 3258286 X 365 2953080754

= 1 day For 2009

Debtors Credit Sales

= 4548436 = 2391577343

Debtors Ratio

4548436 X 365 2391577343

1 day

(2) Creditors Ratio For 2010 Creditors Ratio Credit Purchase = 15809685 = 2847814862

Creditors Ratio

Creditors + Bills Payable Credit Purchase

X 365

15809685 2847814862

X 365

2 days

For 2009 Creditors Credit Purchase = = 12931457 2267053797

Creditors Ratio

12931457 2267053797

X 365

2 days

(3) Return on Capital Employed 2009 P.B.I.T +Interest 223428 64599990 64823418 Reserve 457657660 2010 217815 61007760 61225575 474419468

2010

P.B.I.T Capital Employed 61225575 474419468 12.90 %

X 100

X 100

2009

64823418 457657660

X 100

14.16 %

Revenue Statement Ratio Operating Ratio Cost of sales + operating expense Sales 2009 C.O.G.S Operating Exp. 2105478254 100593040 220671294 X 100 2010 2626517198 104960186 2731477384

Sales 2010

2391577343

2953080754

2731477384 2953080754 92.49 %

X 100

2009 = 2206071294 2391577343 92.24 % X 100

INTERPRETATION
PARTICULA R
G.P ratio N.P ratio

2009
11.95% 0.0074%

2010 Ideal ratio

11.05% 0.0093% 25% 18%

Interpretation
There are the GP ratio is lower to cover its operating expanses There are the higher the ratio better will be profitability, the ratio is very much low. The higher the turn over more profitable to the business, the ratio is decrease from past. It means that either inventory is growing or sales are dropping. Ratio shows that current assets should be twice then current liability shows the comfortable working capital. More quick assets more the liquidity Ex.enough cash, bank etc. are in the company. The company is not giving goods on credit if company will provide goods on credit, companys sales will be increase It good for the company The ratio of 2009 is quite good then 2010.The higher the ratio better will be profitability. There are the companys profitability is not good. The lower the ratio better will be profitability.

Stock turnover ratio

2 times

2times

7-8 days

Current ratio

13:1

16:1

2:1

Liquid ratio

4:1

7:1

1:1

Debtors ratio

1day

1day

30-40days

Creditor ratio Return on capital employee Operating ratio

2days 14.16%

2days 12.90%

50days 15%

92.49%

92.24%

60-65%

SOWT ANALYSIS

SWOT ANALYSIS
SWOT analysis is very important for marketing. S: Strengths W: Weakness O: Opportunities T: Threats 1. Strengths of the SAHAKARI KHAND UDYOG MANADAL LIMITED is: Better management of the firm. Good quality product. Good prestige of the firm. Best location. 2. Weakness of the SAHAKARI KHAND UDYOG MANADAL LIMITED is: Many time productions are become low. Raw-material is not available. 3. Opportunisms to SAHAKARI KHAND UDYOG MANADAL LIMITED are: Using modern technology produce more quantity 4. Threats of the SAHAKARI KHAND UDYOG MANADAL LIMITED are : Tough of market competition. In season shortage of the workers.

SUGGESTION

SUGGESTION
We feel very happy to visit the industry name SAHAKARI KHAND UDYOG MANADAL LIMITED that is development with its hard work and has reached at a great height of success in few years and go up and up. Now a day SAHAKARI KHAND UDYOG MANADAL LIMITED whose product are spreading all India. We would like to give some suggestion as per our opinion and they are as under. The company should increase in the workers strength. The company should advertise for its product. It should provide more facilities to its workers. The company should maintain good communication from top to bottom. The company should give discount to their regularly customers. Company should share its strategies among the employees. Company should also to increase the exports to the other countries to increase its market share in the international market.

CONCLUSION

CONCLUSION
We are very lucky so that we had chance to visit this industry sahakari khand udyog manadal limited is very executives it is very excellent industry it very nice for its products. From the study of sahakari khand udyog manadal limited We became to give conclusion that its very bright future of the firm. It will progress more and more because of hard work of workers and directors the management also very good. In coming years it will have its goals. During this project we also learnt the different between theoretical & practical knowledge there is vast different between two in life theoretical knowledge plays an important role in taking practical decision. The industry relation of these units employee, customers and other industries are very good so they can get more and more progress. Our best compliment for this company for its progress and prosperity. we will all the best for their progress.

BIBLOGRAPHY

BIBLOGRAPHY
In preparing this one project report I have used mainly following books and some material which are as below: Books: 1) Annual report 2009-2010 3) Financial management ii. Khan & Jain

4) Journal of financial research

Material provide by the company like price list grocers and other material. We would like to thanks to help us in project report prof. Piyush Marthak.