A Project Report On Cash and Fund Flow Analysis and Ratio Analysis of DKSSKN, Chikodi

CASH AND FUND FLOW ANALYSIS AND RATIO ANALYSIS OF DKSSKN, CHIKODI
Contents
Titles Chapter I Executive summary Chapter II Industrial profile Company profile Organization structure Product profile 3 7 16 17 Page No. 1
Chapter III Design of the study Statement of problem Objectives of the study Scope of the study Methodology of data collection Sources of data collection Limitations Chapter IV Financial analysis Financial statement Balance sheet Income statement Analysis of financial statement Significance of financial statement analysis Statement of changes in the financial statement Chapter V Data analysis and interpretation Comparative financial statement Common size financial statement Trend analysis financial statement Ratio analysis Fund flow statement Cash flow statement Chapter VI
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Babasabpatilfreepptmba.com
Findings and suggestions Chapter VII Conclusion Chapter VIII Bibliography Chapter IX Annexure 88 55 59 62 64 80 84
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LIST OF TABLES Table No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Name of the Table Comparative Balance sheet Comparative Income Statement Common-size Income Statement Common-size Balance Sheet Trend Income Statement Trend Balance Sheet Current Ratio Quick Ratio Proprietary Ratio Solvency Ratio Fixed Assets Turnover Ratio Working Capital Turnover Ratio Gross Profit Turnover Ratio Operating Cost Turnover Ratio Return On Investment Fund Flow Statement Cash Flow Statement Page No. 56 58 60 61 62 63 65 67 69 70 72 74 76 77 79 81 84
LIST OF CHARTS Chart No. 1 2 3 Name of the Chart Current Ratio Quick Ratio Proprietary Ratio
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Page No. 66 67 69
4 5 6 7 8 9 Solvency Ratio Fixed Assets Turnover Ratio Working Capital Turnover Ratio Gross Profit Turnover Ratio Operating Cost Turnover Ratio Return On Investment 71 73 74 76 78 79
CHAPTER- I EXECUTIVE SUMMARY Shree D.K.S.S.K.N. Chikodi is a co-operative unit. It is a situated near Nanadi village. By conducting the organization study it is found that All the departments were actively working towards the achievement of the goals of the company. My topic is
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Cash and fund flow analysis and ratio analysis of DKSSKN, Chikodi Financial statements summarizes that the financial position and operation of the company. Many companies are used comparative, ratio analysis, fund flow and cash flow analysis to know about the financial position of the firm. The comparative, ratio analysis, fund flow analysis and cash flow analysis are widely used for analyzing the financial statements. It is systematic use of ratio to interpret the financial statements so that the strength and weaknesses of a firm is determined. During my project the firm is not in good health and the company funds are used only for short term assets not for long term assets.
My Objectives are 1. To determine the operational efficiency of the company using ratio analysis. 2. 3. 4. To know the changes in financial statements for the past 3 years To conduct cash and fund flow statement for 2007- 2008 To identify the financial strength and weakness that the firm using trend analysis.
might have. Suggestions
1. 2. The firm should concentrate on enhancing the operating From the study it is found that the funds are used for short term
efficiency of the firm. assets which should be avoided. CONCLUSION By analyzing the topic of CASH AND FUND FLOW ANALYSIS AND RATIO ANALYSIS OF DKSSKN LTD. CHIKODI I conclude that the company liquidity position is not satisfactory due to more concentrate on raising the fixed assets rather than operating activities. which decreases working capital of the company. Which affects the operational efficiency of the company and also the liquidity position.
CHAPTER- II
INDUSTRIAL PROFILE
THE BRITISH AT FIRST
After the blockade and the landing of British troops superior in number than the French force of the General Decaen, the French capitulated in December 1810. From the Treaty of Paris of 1814, Mauritius and its dependencies became British, whereas Reunion even that it was captured was given back to France. Mauritius became British and got back the name the Dutch gave her, but stayed quite close to France as she kept the language, culture and French laws. Left on their own, under the same legal system, the ancient French colonist and their descendants was then able to live a French style as in the past, changing from a colony base on maritime trade to that of an agricultural one. Even that the sugar industry started under the French period, it was only during the British period that it developed in such a way that it became almost a mono-crop industry until some other crops were cultivated such as tea, tobacco and more recently small industries for food, textile and household products. ABOLITION OF SLAVERY. The most important event under the British.
Administration was the abolition of slavery in 1835 EMANCIPATION OF THE SLAVES. The emancipation of the slaves in 1835 was been opposed by the colonists same at those of other British colonies for economic reasons since the sugar industry in development needed man power. The colonists obtained a very high compensation. Then there were no trouble as expected since everything went on calmly, but to replace for the sudden lack of human resource, the country had to ask for free workers from India. The first importation of Indian human resource in
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Mauritius was in 1829. But it was only when the slaves were emancipated that it took importance. It resulted in an accelerated development of the sugar industry and brought prosperity as from 1850. That prosperity of 1850 was also due to a recovery in trade. Another development during the British period: the change in the constitution, which was slow at the start, but got speed after the second world war to bring independence in 1968. TOWODRS INDEPENDENCE It is as from 1937 with the requests of the workers and the establishment of the Labour Party that regrouped the colored people and certain intellectuals from Indian origin as well as the recognition of the workers unions that progress started to be done. There was also a new constitution after the elections of 1943 during which two forth of the population could vote. The elections of 1953 made democracy move ahead when the Labour party obtained more seats. It was in 1957, the year when the ministerial system started in Mauritius that Dr Ramgoolam took the leadership of the Labour party. PICTURE OF SUGAR MAKING
SUGAR INDUSTRY IN INDIA:
Mostly sugar industries are located in U.P, Bihar Maharashtra, A.P. Karnataka and T.N. The sugar industry is one of the largest organized industries with total capital investment of more than 500 crores. It employees more than 2.5 lakhs of workers besides creating extensive indirect employment over 25 to 30 million cultivators of sugar cane, dealers in sugar and confectioneries. When sugar industry was granted tariff protection the history of sugar industry started again before 1932 which gave limpet us (driving force) to growth of industry. Again the government in 1951 provided incentives by fixing minimum prices of cane and maximum prices of sugar. This incentive scheme increased the production of sugar but dis-couraged the cane production. We will see later on how contradictory government. Policies have adversely affected the growth of sugar industry. Unfortunately, government policy has been that of control and re-control from time to time creating an
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environment inimical (hostility, untrendly) to the growth of sugar industry. Up to 1957-58 both consumption and production of sugar rose to; 20 lakhs tones each. During 1969s production of sugar rose to 35lakshs tones and during 1970s it was in between 40 to 50 lakh tones. And during 2000-01 it was in-between 80 to 90 lakhs tonnes.
POLICY The present policy of partial decontrol 10% of production by each unit is supplied for public distribution system i.e. as levy sugar at Govt. notified prices admittedly below 20% of the actual cost of production. The levy sugar is I to the public irrespective of their economic status. The balance 90% is sold in the free market against monthly\issued by the Government. This policy has been continuing since 1967-68 except for brief periods of de-control me during the years of surplus production and accumulated sugar stocks. Government announces the Statutory Minimum Price (SMP) for sugarcane every year based on recommendations of the Commission for Agricultural Costs and Prices (CACP).
COMPANY PROFILE SHREE D.K.S.S.K.N.- CHIKODI, Taluka chikodi, dist.- Belgaum

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Name of the Organization Location : : Shree D.K.S.S.K.N.-Chikodi. Nanadi Village. Tal.-Chikodi, Dist.- Belgaum Karnataka. Regi .office : Chikodi. Ph. No. 08338-276931 To 35 Fax: 08338 276105 E-Mail dksugar@sancharnet.com Construction : Building Layout, Garden & Light Facilities. Capacity : 5500 tones sugar cane crashing / day. 20.7 M. W. Power Generation. 30 K.L.P.D. Restrified Spirit. Turnover Employees Work Shifts : : : 450 to 500 Crores / Annum. 756. 3 Shifts / 8 hours per shift (no Holiday)
BOARD OF DIRECTORS
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The following composition of directors on the board of Shree Doodhaganga Krishna Sahakari Sakkare Karkhane Niyamit, Chikodi. Name
1.
Designation Chairman Vice Chairman Director Director Director Director Director Director Director Director Director Director Director Director Director Director The Managing Director
Sri Mahantesh M Kavatagimath Sri Annasaheb S Jolle Sri Ashok A Patil Sri Prakash J Patil Sri Tatyasaheb D Kate Sri Mallikarjun G Kore Sri Kallappa K Maishale Sri Shantappa Y Miraji Sri Amit P Kore Sri Satappa N Saptasagar Sri Parasagouda I Patil Sri Bharatesh S Banawane Sri Subhash N Katrale Sri Mallikarjunayya V Hiremath Sri Nandakumar M Nashipudi
2. Sri Ajit S Desai

3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.
17.Sri S B Umarane
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BACKGROUND SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE
KARKHANE NIYAMIT, CHIKODI is a co-operative society registered under Karnataka co-operative societys Act in 1969. The industrial license number of the factory is L-25/N-250/-LC dated 16/10/1970. Shree D.K.S.S.K.N. Chikodi is a co-operative unit. It is a situated near Nandi village, at a distance of about 13Km from Chikodi town .and the factory at present has an attractive campus with magnificent buildings over it. Agriculture was continues to; be an extremely important sector in our country and cooperative system, as one of its main pillars providing vital support services, is crucial for the transformation of agriculture. It is how inspired our founder Late Sri. Chidanand B Kore, an agriculturist and a co-operator, to establish this factory during 1972-73 with the financial support from cane growers of this area and the State Government. With an initial crushing capacity 1250 TCD and as a stand alone sugar industry, lour factory had faced a lot of problems all these years in coming out as a viable unit. Though this factory had emerged in this area with a meager beginning, it had not only provided a source of income for forming community but also created a sustainable employment opportunity in this rural area.
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After a lot of dispute on location of plant, near Nandi village, the construction work started in year 1971 and comp elected in the year 1974. The factory was inaugurated by Vice-president Shri B.D Jatti on 6th November 1974. The regular production has been started from December 1974. The factory started on 5/3/1969 with initial Crushing capacity to the extent of 1250 TCD per day began during the year 1974 with total expenditure of Rs.337 lakhs. The area of operation covered 111 villages of which 102 villages are from chikodi talukas, 5 villages are from chikodi taluka, 5 villages are from Raibag taluka and 4 villages are from Athani taluka. At present total sugar cane supplied to this sugar industry is from 20,000 acres with average yield per acre of 25 MT. The entire plant and Machinery has been supplied by m/s National Heavy Engineering Co-operative Ltd. Pune, A co-operative institution has also been installed to meet the present requirement of the Crushing capacity. The DKSSK, at present is equipped with modern machines and skilled personals. Rs. 325 lakhs long term loan was borrowed from IFC, LIC, IDBI for original plant and First phase expansion and has been repaid as per their The crushing capacity was enhanced from 1250 TDC to 2000 in 1984-85 and from 2000 TCD to 3000 IN 1993-94. The factory house hold expenses of factory from 3500 to 5500 TCD. Every expansion was not easy and had created a financial set backs due to the lack of professionalism both in technical and financial managements.
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Thus over the period of two and half decades, the factory had grown only in sizes but not adopted the range of different bi-product activities and had suffered due to a weak governance on efficiency, effectiveness, adaptability and internal and external accountability in the management. These things have brought the factory almost to the brink of sickness. Besides resulting a huge negative net worth and ever-high accumulated losses. have to be prosperous. Nature of Business Sugar sector is one of the large scale industries in manufacturing sector. Now a day the competition in sugar sector is very high. SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT, CHIKODI is a co-operative society registered under Karnataka cooperative societys Act in 1969. The object of business is to encourage proper devolvement of agricultural industrial amongst members on co-operative lives by promotions of co-operative and joint forming methods so as to secure best merits of modern large scale agriculture production to the owners of the lands. The nature of business is to encourage self help, thrift and co-operate amongst members. Vision, mission and quality policy Vision Total customer satisfaction
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However this cooperative and rural
based industry must succeed if the poor farmers and the rural unemployed youths
Mission
Encourage agro-based co-operative industry.
To develop co-operative movement in rural sector. To encourage the farmers to grow sugar cane for production of sugar and its by-products. AIMS & OBJECTIVE OF THE COMPANY
The object of the society is to encourage proper development of Agricultural Industrial amongst members on Co-operative lives by promotions of principal and methods of Co-operative and joint forming methods so as to secure best merits of modern large scale agriculture production to the owners of lands and for this purpose. a) To encourage self-help, thrift and co-operate amongst members.
b)
To acquire lands either by way of purchase or otherwise for cultivation of sugar cane and other cost and for erection of building. Godawns staff quarters etc and for installations of machineries. To manufacture sugar jogger and their by products out of sugar-cane grown and supplied by members of the society and other and to sell the same to the best advantage. To under take such other activities as are identical and conductive to the development of the society etc.
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c)
d)
e) To acquire and install machinery for the utilization of the product and buy raw material and sell finished product is the course of utilizing and marketing the by products. OWNERSHIP PATTERN The authorized share capital of the Society shall be RS.15.20 crores divided in to total 38,000 shares of RS.4,000/-each as under. i) ii) iii) Rs.14,51,000/-dividend in to 36,275 shares of the face value of Rs.4,000/-each reserved for the grower members called as AClass. Rs.9,00,000/-dividend in to 225 shares of the face value of Rs.4000/each reserved for Co-operative Institutions. Called as BClass. Rs.20,00,000/-dividend in to 500 shares of Redeemable preference share iv) of Rs.4,000/-each to be issued to Government of Karnataka/Maharastra called as CClass. Rs.40,00,000/- dividend in to 1,000 shares of face value of Rs.4,000/each reserved for non grower members called as D Class. INFRASTRUCTURAL FACILITIES Nearer to raw materials. Good transportation facilities. Nearer to rivers place. (Krishna River) Good networking. Proper accommodation for its employees
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ACHIVEMENTS AND AWARDS ACHIEVEMENTS STAI, SISSTA & DSTA in their recent 8th annual convention at Hyderabad held on 13-08-2005 have honored with the most prestigious award as the THE BEST EFFICIENCY & PERFORMANCE SUGAR FACTORY in the country for the year 2004-05. The award was given by Honble Union Minister for agricultural, food & Civil Supplies, in presence of Honble Chief Minister of Andhra Pradesh. The Karnataka State Co-op Federation Ltd. had adjudged as The Best Cooperative Sugar Factory in the State and AWARD had been given to us through Honble Chief Minister of Karnataka, on 14/11/2004.
Energy Department of Government of Karnataka and KREDL awarded us
have
he excellence Award through Deputy Chief Minister of DIWAS ON
Karnataka for having developed efficiently 20.7 MW Co-gen Power Project on the occasion of RAJIV GANDHI AKSAYA URJA 20/8/2004 .
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The companies have the Honour of achieving the Highest Sugar Recovery @ 11.80% in Southern part of India for the year 2001-02. And 11.90% for 2002-03 also. Awards The Karnataka State Cooperative Sugar Factories Federation Ltd., Bangalore had honored the company with the following awards for the:1. Highest sugar recovery in South India during 2001-02. 2. The Best Administration Award to the Managing Director with a cash prize of Rs .10.000/- and a certificate.
3.
The Best chief Chemist Award with Rs.5,000/- Cash prize and a Certificate. certificate.
4. Best chief engineer with award worth of Rs.5,000/- cash prize and
ORGANISATION CHART
BOARD OF MANAGEMENT
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MANAGING DIRECT SECRETARY
GENERAL & MANAGER WARD
CIVIL ENG.
STORE KEEPER
MEDICAL
HEAD TIME
CHIEF
CHIEF A\C C.D.O.
OFFICE
L.W.O.
WATCH SPDT
OFFICER
KEEPER
OFFICER
TOOLROOM&DIESEL PUMP
CHIEF ENG.
CHIEF CHEMIST
DIST. CHEMIST
CO-GEN
CANE YARD
AGRIL DEVPT.
GODOWN SECTION
GENERAL A\C.
CANE SALES A\C. COMPUTER
CASH
GAD PURC. SECTION SECTION
EST SECTION
MEETING SECTION
INWARD & OUTWARD
SHARE SECTION
TYPING SECTION
GUEST HOUSE
LEGAL SECTION
PRODUCT PROFILE
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BYPRODUCTS OF SUGAR CANE The chief by products of sugar manufacturing are -
Bagasse Bagasse is the by product of sugar left behind after crushing of sugar cane. It is used as a fuel in the sugar factory boiler. Excess Bagasse finds use as raw materials in paper manufacturing industry. Molasses Molasses is a by product of Sugar refining chiefly used for alcohol production. The entire molasses output is routed to the distillers unit which is maintained by the organization. Pressmud Pressmud is the by product generated by cane juice filtration during sugar manufacture, currently Pressmud is used as a fertilizer in sugarcane cultivation. AREA OF OPERATION The area of operation of the society shall be confined to the following villages of chikodi, Athani, Raibag Talukas of Belgaum District and Jamakhandi Taluka of Bagalkot District of Karnataka State and villages of shirol, kagal Talukas of Kolhapur District Maharastra State only.
FLOW CHART OF SUGAR MANAFACTURING
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Weighed cane-hauled to crushing yard Cane unloaded on to the carrier Cane cut into pieces Crushed in successive mills Juice treated with line and surplus boilers & Heated Subsider Sucm Filter cake used As manure clear juice clear juice evaporates Concentrated syrup Surplus syrup to vacuum pans Boiler to mane cite Centrifugal Sugar Bagging Dispatching power alcohol portable alcohol molasses dry chaff fed into as fuel
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MC KINSEY 7 S MODEL
The first three element are strategy, structure and system are considered as hardware of success, the meet four elements are style, staff, skills and shared values / super ordinate goals are the software of any company. 1. Structure The general admission of the company is carried out by the following departments and these are downwards communication in the company. The information flows from the top level of management to the lower levels.
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2. System System refers to how the production system, distribution, information system and security system is maintained in its company.
a. Production System The process of production consisting of input of sugar come and output of the sugar.
b. Distribution System The distribution system of the products produced is in the following way: Direct sales are made with in the state and outside the state. Indirect sales are made outside the country and the depot sales are also made. The producers are also sold directly to the consumers or sold to the wholesales.
c. Information System Structure of information system
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CHAIRMAN
MANAGING DIRECTOR
SENIOR GENERAL MANAGER
HEAD OF THE DEPARTMENT
SECTION
d. Security System The DKSSK has strict security system. In the maintenance of accounts after the record have been closed, the records are kept in the room and closed the room is opened only with permission of higher authority. If the visitors went to inter they have to take prior permission with the authority and after entering they are not suppose to go any dept other then the department from whom they took the permission.
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3. Strategy The way in which a business aims to improve its position in relation to its competition is embodies in its strategy or the way of doing something in an organization. In DKSSK, introduce new technologies and products strategies importance in time with national objective to improve quality reliability of products there by attaining the international standards. 4. Skills Skills here refer to how the training will be given to the employees and employees. The training will be given in 2 months they are a) On the job This is one of the oldest method, under this method, the individual place is on the regular job and taught the skill necessary to perform that job on the job training has the advantage of giving first hand knowledge and experience under the actual working conditions. This training is given to employees. b) Off the job In this methods trainee is separated from the job situations and his attention is focused upon learning the material related to his future job performance. There is an opportunity for freedom of expression for the trainees.
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5. Style The style which is portrayed to outside world is derived from the style and behaviors exhibits inside organization. The internal style of the organization effects new staff feels thinks and does their jobs. Therefore an organization is reflection of its structure. a) Top down / Bottom up At the time of policy framing, the style flows from top to bottom. If the policy has to be framed then the policy has to be taken by upper level & it flows towards lower level. But when the opinion of the policy is to known, at that time the style flows from bottom to up. This is to know the attitudes of the employees about the policy which is framed by the upper level. b) Authoritarian / Participative Only the upper level is having the authority to make the decisions in the factory. Regarding policy matter Board of management will take the decision in case of policy making. Financial matter If the financial matter is within the amount of Rs 20,000/-, Managing Director will take the decision. And if financial matter is more than Rs 20,000/-, then the board will take the decision.
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6. Staff Good hard working citizen play essential role in the development of nation. The employees are responsible for the success or failure of company. The company has totally 778 workers are working in the company. They are divided as follows No. of Workers 1) Permanent worker 2) Seasonal workers 3) Consolidated worker 4) Daily wage worker 285 183 288 756
Company is paying salary of Rs. 55, 00, 000 per month to its workers.
7. Shared values Shared values are refers to company policies. In Mysore Sugar Company limited the following policies are maintained. Quality policies
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Environment policies T.P.M. policies (Total productivity management)
QUALITY POLICY
Total customer satisfaction is our goal. To achieve this we at S.D.K.S.S.K.N. committed to produce quality white crystal sugar as per the Indian sugar standard through continual Improvement in our process, people & stake holders.
ENVIRONMENT POLICY
The DKSSK is committed to comply with the requirement of relevant environment regulation and standards by implementing environment management system and the continually improve its effectiveness. TOTAL PRODUCTIVE MANAGEMENT The DKSSK is committed in maximizing limited is committed in maximizing overall plants effectiveness to make Mysore sugar company a world class company through total productive manufactured by
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Promoting automates maintenance culture. Involving all employees and building culture. Minimizing the losses and reduced the cost. PROCEDURE FOLLOWED IN SALE OF SUGAR, MOLASSES,
BAGASSE, RECTIFIED SPIRIT AND ARRACK SUGAR Domestic Sale of Sugar The free sale released by Government of India is sold in the domestic market through tender system. Sugar tenders will be called periodically from the various sugar traders. The traders will be called advance about the grade and quantity being offered in tender over telephone. The sugar tender are some time will be conducted at Karnataka Sugar Institute, Belgaum and also at this factory site. The offers of K.S.I will be present at the time of tenders. The rates will be collected over telephone from the various parties along with grade and quantity of sugar required by them. The committee will take decision on allotment of sugar to the parties who have offered higher price. Karkhana has maintained Sugar Sale Tender register for recording the offers received and allotment made to the parties. The parties who have purchased sugar in the tender will be sold against 100% payment. The rate of domestic price of sugar in the state and the rate of neighboring sugar factories will be compared while selling the sugar in tenders.
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Export of sugar When the international price of sugar is remunerative compared to domestic price of sugar, we do export some of the stock of sugar. The sugar export is mainly undertaken through the mercantile export or through EXIM Corporation New Delhi. The price for export sugar is negotiated taking into account, the prevailing international sugar price and the price being offered by various sugar factories for export of sugar. Once the rates are finalized, they will enter into agreement with the party. Then the party will obtain a release orders from the Chief Director of sugar, New Delhi and necessary excise bond from the concerned authority. After completing all the necessary formalities Sugar will be delivered to the party for export against full payment of the consignment. After the export shipmen are completed, necessary documents in proof of export of consignment will be collected from the parties. The same will be submitted to the excise department. Molasses Bagasses For sale of Molasses and Bagasses we use to make a vide publicity in the various news papers in Karnataka and Maharashtra and also floating the
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enquiries to the prospective purchasers in order to get competitive offers and better price realization.
PRODUCTION PROCESS The main raw material in the production of sugar is. Sugar cane.
The raw materials has to go through following stages before it become finished product. The process in each stage is as under:
STAGE: 1
SUGAR CANE SUPPLY.
The harvested and transported sugar can received is weighed on the weigh Bridge. It is unloaded and kept on the feeder tables. It is fed to the cane carrier as per the requirement.
STAGE: 2
MILLING OF CANE/ EXTRACTION OF JUICE.
This cane is passed through leveler and furzier by making the fine making the fine chips. It is crushed through series of mills. Imbibitions hot water is added
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prior to the last mill to extract more possible sugar. The bagasse from the last will is carried through bagasse conveyor and required quantity of bagasse is fed to the boilers and excess quality is sent for storage.
STAGE: 3
CLARIFICATION AND EVAPORATIONS.
The juice from all the mills is pumped to juice weighting scale. It is heated to about 70-77o c in the juice heaters. It is taken to continuous juice sulphitor in which milk of lime and sulphur dioxide gas are adjusted to maintain ph 7.0. It is again heated in juice heaters to about 100 to 105oc and sent to continuous clarifier. Clear juice is taken to multiple effect evaporators to concentrate up to 60oc Brix. The settled mud from the bottom of the clarifier is taken to mud mixer to mix with beguile and taken to continuous vaccum filer. The filtrate is transferred to raw juice receiving tank for treatment. The adhered mud on the screens is scraped and sent out as filter cake, which will be used for composting the manure. STAGE: 4 CRYSTALLIZATION PURGING AND SUGAR MANUFACTURE The concentrated syrup from evaporator is taken to syrup sulpthitor to adjust Ph 4.8 to 5.2. This is stored in the supply tanks and fed to A masscult boiling by taking B-seed as a footing. It is concentrated to 92o Brix and dropped to the
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crystallizes. This masscult is purged in the centrifugal machines. The adhered crystals are scraped to hopper and treated with hot air and cold air blower. It is sent to grader the size for gradation. stocking. This graded sugar is stared in SILOS. Weighed and bagged sugar bags are transferred to respective godowns for
STAGE: 5
FURTHER PROCESS
While purging A- massecuite the A-light molasses received is sent to supply tanks and fed to A- molasses is sent to supply tanks and fed to B- masscult boiling with b-grain as footing. This is purged in the centrifugals. This sugar is used as B- seed and excess is melted and fed to A- masscults. White purging low purity B- Heavy molasses obtained is used for boiling C- masscult with Cgrain as footing. This C- massecuite is taken for purging in C.F.W. Centrifugal machines. The final molasses is separated, weighed and sent to storage tanks. C.F.Magma is sent to melt supply tanks and fed to A massecuite boiling. C-light molasses obtained is tired in supply tanks and used for C- massecuite boiling and Cgraining also.0 FINANCE AND ACCOUNTS DEPARTMENT
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Finance plays a vital role in the functioning of all industrial units. Finance is the life blood of the organization. In sugar Industry Finance and accounts Department has very vital roles. The financial plan basically deals with raising and proper utilization of funds. The funds can be raised by issue of shares as well as by raising loans various sources. The finance manager supported with accountant manager and an accountant assistant looks finance department FUNCTIONS: 1. They look after the overall financial requirements of the company. 2. They see that a proper inflow and outflow of income and expenditure is maintained. 3. Costing and accounting is framed and maintained. 4. Yearly budget is framed so that each department can meet their cash requirements. 5. Budget prepared is based on sales forecasting, expenses forecasting, cost forecasting, purchase forecasting etc. which submitted by respective departments. Finance Department consists of following sub branches: 1. General Accounts Section 2. Cane Accounts Section 3. Sales Section
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4. Cash Section Accounts offices are the head of this department. Accountant sales manager, and head cashier assist him. Finance controlling repayment of term loans. Taking loans excepting and payment call deposits maintains all Accounts. Payment of all bills statutory and normal bills.
As functioning of each section is summarized follows 1. GENERAL ACCOUNTS SECTION: General Accounts are looking after the passing of bills and payments. Management is also done by General account section and preparation of financial statements i.e., Balance sheet, profit and loss account is attended by general accounts section.
2.
CANE ACCOUNTS SECTION:
The Bills and payment concerned to procurement of sugar cane, is attended by cane accounts section. Payments like cane bills, transport and harvesting bills etc., are prepared and passed in cane accounts section.
3.
SALES SECTION:
It is looking after sales of sugar and by products molasses, Rectified spirit and other scrap materials. It is keeping records of the concerned to all sales section. 4. CASH SECTION:
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It is looking after the payments of all general bills and salary bills apart from cane payment and it is also looking after receipt of cash and check payment.
All accounts are maintained in usual manner. Various records and books kept are:
a)
General ledger
b) Sub ledger c) Subsidiary d) Cash book e) Vouchers. Each branch prepares trading profits and loss account and Balance as on 31st March every year. And the government Auditors audits the accounts.
PURCHASE DEPARTMENT Purchase Department is headed by purchase officer is responsible for purchasing the spare parts required for the industry. The storekeeper is responsible for stacking quality maintaining and issuing to the concerned section.
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The important functions of the department are: Purchasing materials Calling quotations Preparing C.S.Q (comparative statement quotation) Placing before meeting for decision Placing orders for supply of materials. Passing bills to Accounts section for payment.
PURCHASE DEPARTMENT HIERARCHY PROCEDURE OF PURCHASING

PURCHASE MANAGER
GODOWN
SUPERVISORS
STORE
KEEPERS
ASSISTANTS
1. DETERMINATION OF PURCHASE BUDGET:
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In the beginning of the year the purchase manager, with the help of production planning department, prepare a purchase budget. This budget quads him in knowing what when he has to buy and also quality, Size and quantity of purchase. 2. DETERMINATION OF QUANTITY: The stock availability in each location is determined and compared with the actual requirements. After receiving the sales order raw materials needed are scheduled according to these order level. The stock availability in each location is determined and compared with actual requirements these quantities to be purchased are determined. 3. PURCHASE ORDER:
After satisfy with the quantity of materials and reputation of the supplier, purchase order is send to the supplier. Purchase order contain includes the date of order, description of materials to be supplied made of supply. The companies of this send to the Head office, another to accounts departments and one copy send to the storekeeper. 4. RECEIVING AND ISSUING RAW MATERIALS: The storekeeper enters the details of
The department heads and the storekeeper check the quality and quantity of raw materials received respectively. purchased materials in the store receipt book store receipt after the details are entered in the stared receipt book, the materials from the part of inventory. Then the general manager passes the amount for payment.
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MECHANICAL DEPARTMENT
This department is headed by General Manager and Chief Engineer. Maintenance of the sugar machinery and plant over having of the some in off season and to run all the sugar machinery and their devices properly and smoothly in the season and to extract cane juice for the cane in respect of less losses of sugar content in fazes that is more extraction.
MANUFACTURE DEPARTMENT This department is headed by Chief Chemist. To manufacture the maximum quality the sugar from the cane juice of superior ISI. grade minimize the sugar losses in bye-products to maintain the register and calculations of sugar entering in the house and production submit day to day report of production and recoverable sugar and excise matters in the season. In the off season maintenance of the boiling house plant. WATCH AND WARD This department is headed by security officer. Security of factory and control on gates and supervision day and night all over the factory area from security point of view.,
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STORES DEPARTMENT This department is headed by store keeper. To keep the sores and required materials for the factory section wise in a proper way and to maintain their registers and big cards of indents (order goods) FUNCTIONS: 1> Receiving the materials 2> Unfolding the packing. 3> Takes entry in store receipt Book (SRB) 4> Preparing bills after receiving quality memo back. 5> Stacking the materials. 6> Issue of materials to concerned sections as per their indents.
TIME OFFICE DEPARTMENT This department is headed by head time keeper. To maintain the register of attendance of the factory staff to prepare the pay sheets and leave records and personal services register of the staff. ADMINISTRATIVE OFFICE The office time is from 10.30 to 5.30pm The lunch break is from 1.30 to 2.00 pm FACTORY PREMISES Inside: from 8:30am to 5:30pm
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The lunch break is from 12:30 to 1:30 pm AGRICULTURAL DEPARTMENT This department is headed by Cane development officer. Cane procurement, harvesting (to reap) and development of cane. To make the provision of proper seed of cane to the cultivators, soil testing and proper guideline for measuring etc. CIVIL DEPARTMENT This department is headed by civil engineer. Construction of the roads for proper transport of cane in the area, civil works of the factory, maintenance of the factory building etc.
LABOUR WELFARE This department is headed by labour welfare officer. To look into the welfare activities of the worker and solve the labour problems. The factory provides all the necessary facilities. The purpose of providing welfare amenities is to facilitate the development of total personality of working class for physical, mental, psychological, cultural, social, moral and intellectual development the factory provides well planned residential accommodation, medical facilities, educational facilities, drinking and washing water, canteen, cycle stand, library etc. In addition, the factory has following non-statutory schemes for workers welfare. Consumers society, uniforms to watchman production and engineering workers etc.
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OBJECTIVES 1) To secure for the worker fair wage. 2) To improve the working condition and express share in the increased profitability. 3) To ensure the workers security of employment and protect larger interest of the society. 4) To establish relationship between management and employees. FUNCTION: 1) To promote harmonious relation between the factory management and workers. 2) To bring to the notice of board of directors grievances of workers and to act as a liaison officer between management and labour. 3) To study and understand the point of view of labour in order to help the management to shape and formulate labour welfare policies. 4) To advice and assist the management in fulfillment of statutory and other obligations. 5) To encourage the formation of work joint production councils, co operative societies and welfare committee and supervise their work. 6) To secure the provision of amentias such as canteen, washing, first aid, shelter, rest rooms, launch rooms etc.
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7)
To suggest the measure which will serve to raise the standard of living of workers and in general to promote their well being.
SWOT- ANALYSISI have found some strengths and weaknesses, opportunities to the factory during my training period at this plant. Factory is facing some problems regarding sale of sugar under government restriction. How much government permits to sell the sugar that much only factory has to sell not more than that it sells through quotations. It covers small area only. Even there is no particular system for appointment of employees. STRENGHTS The major strength is crushing capacity and highest chimney and It is producing own electricity it reduces the cost of electric bills. It also sells electricity to the KPTCL. This factory has its own trucks and some other vehicles, which They have foreign customers too. Good Administration Healthy management labour relations Superior product quality
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packing of bags per day.
reduces transportation charges.
Skilled and efficient staff and labour force Maximum profitability due to various by products Well structured distribution channel. Improved infrastructure. In total this factory has a very good organization structure WEAKNESS It does not have separate HR department, so the selection of employees is not satisfactory and it creates lot of burden on labour welfare officer. Too much stock of sugar in godown. They purchased two wheeler vehicles and trucks on loan. During off-season they remain idle, but the interest of the loan is always shooting up. They dont have particular employee for particular work. Anybody can do any work assigned by their respective superiors. High cost of production. No control on minimizing the losses in process. Company cant sell as much as sugar in the market at any specific time, as sugar release mechanism is controlled by government of India. OPPORTUNITIES It is located in the best area. Here all the resources are available in less cost. Offer replacement of machinery to new machinery for good running of factory.
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Present production performance per tone is excellent. Non-establishment of the programs to motivate and develop effective manpower. Restricted market opportunities shirked a better price for finished products. Reducing the overhead expenditure. To provide comfort and convince to employees for doing the work. To facilitate the smooth running of the manufacturing process. THREATSThe production comes under hazardous activities, competition are updating latest technology. Due to uncertain rainfall procurement of raw material is being affected.
High competition in procurement of raw material. The main raw material sugarcane may not sufficiently be available in future. Change in various government policies.
CHAPTER- III DESIGN OF THE STUDY
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3.1 Statement of the problem Financial analysis being an integral part of overall corporate management and it is one of the powerful tools of financial performance analysis. The analysis of financial statement of SRSL is done in order to know the companys financial position. 3.2 Objectives of the study For the purpose of any research, objective is must. It shows the direction with which the task can be accomplished. The specific objectives of the study are a) To determine the operational efficiency of the company using ratio analysis. b) To know the changes in financial statements for the past 3 years using trend analysis. c) To conduct cash and fund flow statement for 2007- 2008 d) To identify the financial strength and weakness that the firm might have. 3.3 Scope of the study The scope of the study is to find out how assets and liabilities are maintained. It is done through the Balance sheet of the company, for the periods, 2004-2005, 2005-2006, 2006-2007 and 2007-2008.
3.4 Methodology
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This project is an analytical research where in the researcher has to use the available facts as information and analyze these to make a critical evaluation of materials. This is also an applied research with an aim to find a solution for immediate problems facing industry or the firm. The methodologies followed in the analysis of the financial statement are comparative statement, Common size statement, Trend analysis, ratio analysis, fund flow analysis and cash flow analysis. 3.5 Purpose of the study The purpose of doing this project is mainly to make a thorough study of the financial analysis of the company.
To access the companys trends for the last four years with regard to liquidity performance. The purpose also includes assessing the impact of financial analysis on liquidity strength of the company
3.6 Sources of data collection

1.
Primary data: The data required for the project was collected minor through primary data. That is through interviewing & discussion with concerned authorities in the company. Secondary data: The major source of data for this project was collected from annual reports, profit and loss account, manuals & some more information collected through the internet.
2.
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Plan of analysis This study is conducted with the help of statistics figures & techniques like Graphs & charts for better comparison and interpretation. Tools and techniques used for analysis The following are the methods of financial analysis used in general. 1. 2. 3. 4. 5. 6. Comparative financial statements Common-size financial statements Trend percentage analysis ratio analysis fund flow analysis cash flow analysis 3.7 Limitations 1. The study is done only on the Balance sheet and Profit and loss account. 1. Study is based on information provided by the company.
CHAPTER- IV FINANCIAL ANALYSIS
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Financial analysis is the selection, evaluation and interpretation of financial data, along with other pertinent information, to assist in investment and financial decision- making. Financial analysis may be used internally to evaluate issues such as employee performance, the efficiency of operations, and credit policies, and externally to evaluate potential investments and the credit-worthiness of borrowers, among other things. The analyst draws the financial data needed in financial analysis from many sources. The primary source is the data provided by the firm itself in its annual report and required disclosures. The annual report comprises the income statements, the balance sheet, and the statement of cash flows. Certain businesses are required by securities law to disclose additional information. The financial analyst must select the pertinent information, analyze it, and interpret the analysis, enabling judgments on the current and future financial condition and operating performance of the firm. In this reading, we introduce you to financial ratios------ the tool of financial analysis. In financial ratio analysis we select the relevant information---- primarily the financial statement data--- and evaluate it. We show how to incorporate market data and economic data in the analysis and interpretation of financial ratios and we show how to interpret financial ratio analysis.
4.1 FINANCIAL STATEMENTS The Financial statements are the end product of the financial accounting process. The financial statements are nothing but the financial information
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presented in concise and capsule form, and the financial information is the information relating to the financial position of any firm. Therefore the financial statements are the depiction of the financial position of firm. The basic source which provides the financial information is the annual report of the company, which is presented by the company to its shareholders at the annual general meeting. This annual report contains the chairmans report, the balance sheet, the income statement , the auditors report together with number of schedules, annexure etc. Though the presentation of annual report is a statutory requirement under the companies Act of 1956. Every firm prepares the following financial statement. 1. The Balance Sheet 2. The Income Statement 4.2 BALANCE SHEET The Balance sheet is regarded as the most significant and basic financial statement of any firm. The Balance sheet is prepared by a firm to present a summery of financial position at a given point of time, usually at the end of a financial year. It shows the statement of affairs of the firm and the contribution of the owners of the firm. The BS in fact balances the assets of firm against its financing i.e. the total value of the assets must be equal to the total claims against the firm and this can be stated as Total assets = Total claims (Debt + shareholders) = Liabilities + shareholders equity The Balance sheet includes:
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1. Assets 2. Liabilities ASSETS Assets are the monetary value of the resources that owned by the concern at a measurable cost. A resource is valuable if it is in form of the cash or convertible into cash or expected to benefit in the future operation of the business, an asset includes a) physical resources like land, machinery, plant, building, stocks etc. b) non physical resources like cash, securities, accounts receivables etc.) Intangible resources like goodwill, trademark and d) future benefit like expenses paid in advance. Some time some fictitious assets also show like as incorporation cost of the company discount on issue of debentures etc. Fixed assets Current assets Fixed assets Fixed assets are held in business for use not for sale. These assets provide longterm benefits to the concern. Fixed assets will be higher in manufacturing concern. The fixed assets involves Tangible assets includes land, building, machinery, equipment, furniture, fixtures etc. these assets are shown the balance sheet deducting the depreciation there on. a) Intangible fixed assets: These assets include the patents, copyright, trademarks, trade name goodwill etc.
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b) Long term investment: These assets represent the firms long term investments like investments in share, investments in debenture and bonds of other firms or government bodies. c) Other non current assets: These assets are those which represent the deferred charges etc.
d)
Current assets: Current assets consist of cash and other sources of cash which get
converted into cash during the period of operating cycle of the firm. These assets are owned for a short period of time. The other name of the current assets includes cash, debtors, bills receivables, stock of work in progress, bank balance, advance payment of expenses like taxes and insurance, loan and advances to customers and employees. LIABILITIES Liabilities are the obligations of the concern that is to pay the outsiders. CONTENS OF ANNUAL REPORT: The Shree Doodhaganga Krishna Sahakari Sakkare Karkhane Niyamit, Chikodi annual report for the year 2007-2008 contains a) Report of the board of directors b) Auditors report c) Accounting policies
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Report of the board of directors Directors report provides a summery of profits made and appropriated by the company and other relevant information such as industrial relations, investments, financing, reorganization, appointment of auditors and directors etc. the report of the SRSL board of directors gives a brief account of the company profit and dividend during the 2005-2006. Auditors report Auditors report to shareholders verifies whether the balance sheet and profit and loss account provides a true and fair view of the state of a companys affairs. Auditors should obtain all necessary informations and explanations and ensure that proper books of accounts as required by law have been prepared by the company. Accounting policies Companies adopt different accounting policies for preparing their balance sheet and profit and loss account. Annual reports incorporate major accounting policies as well as changes made in current year.
4.3 INCOME STATEMENTS Income statement is, also known as the profit and loss account or the statement of earnings, summarizes the revenues and expenses of the firm for an
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accounting period. It gives a detail of sources of income and expenses and thus it provides the summery of the operating results of the firm for a specific period. It matches the revenues with the costs that are incurred in generating the revenues, and shows the difference between the two as the net profit made or net loss incurred during the period. The IS shows the results of the operations of the firm during the period. The IS therefore, is a flow report against the BS which is a stock report or a status report. The IS depicts the earning capacity of the firm during the period under consideration. Profit and loss account presents the summery of revenues, expenses and net income of a firm. It serves as a measure of the firms profitability. Revenues are amount. The main content of the income statement are: Net sales Cost of goods sold Gross profit Operating expenses Operating income Non operating expenses Non operating income Profit Loss 4.4 ANALYSIS OF FINANCIAL STATEMENT
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AFS refers to the process of the critical examination of the financial information contained in the financial statement in order to understand and make decisions regarding the operations of the firm. The AFS is basically a study of the relationship among various financial facts and figures as given in a set of financial statements. The basic financial statements i.e. the BS and IS, already discussed in the preceding section contain a whole lot of historical data. It is very important to analysis the financial statement to know the different factors to see are behind the change in the figures of the financial statement. Analysis of financial statements contains comparison between different figures of different periods, comparison. Process of the analysis of the financial statements: Financial statement analysis contains the following steps: Analysis of all transaction one by one to determine the accounts to credited and debited evaluate all transactions to ascertain the amount involved in that.
Analysis of recording of the transactions in the journal, summaries that in ledger and preparation of trial balance.
Preparation of final accounts or financial statements. Get different information by analyzing these statements and provide the information to the interested parties like the bankers, investors, creditors and managerial personals. 4.5 Significance of the financial statement analysis:
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The analysis of financial statement is very important for the different parties related to the concern i.e. internal users and external users. The significance of the financial statement analysis will be clear from the following points: This analysis simplifies, summarizes and present the accounting figures in that way that they can provide more and more information to the different parties for taking the valuable decisions. Financial statement analysis is provide in valuable aid to management for complete the basic functions like forecasting, planning, directing, coordaining and control. This analysis diagnose the financial health of the concern by evaluating different facts of the business i.e. liquidity, solvency, profitability, capital gearing etc. The financial statement analysis involves the different ways of analysis and interpretation of the financial statements. So anyone can take the decision according to his/her requirement. The analysis of financial statements provides important and useful information to the management as well as other users. If this analysis does not make then it is difficult to take decision from the financial statements.
TECHNIQUES/TOOLS OF THE AFS

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The methodology adopted for the AFS may be varying from one situation to another. However, the following are some of the common techniques of the AFS: 1. Comparative financial statements 2. Common-size financial statements 3. Trend percentage analysis 4. Ratio analysis 5. Fund flow analysis 6. Cash flow analysis The ratio analysis is the most common, comprehensive and powerful tool of the AFS. 4.6 STATEMENT OF CHANGES IN FINANCIAL POSITION Two basic financial statements of importance to owners, management and investors are Balance sheet and profit and loss account. Balance sheet gives a summery of firms resources(assets) and obligations ( liabilities and owners equity) at a point of time, the profit and loss account reflects the result of the business operations by summarizing revenues and expenses during a period of time. Both these statement fail to explain the changes in assets and liabilities and owners equity. This statement is intended to summaries. Changes in assets and liabilities resulting from financial and investment transactions during the period, as well as those changes which resulted due to change in owners equity. The statement of changes in financial position deals with the flow of funds during the year i.e., the funds coming in and going out of the firm.
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It summarizes the sources from where the funds might have been arranged by the firm and the uses for which the funds might have been used by the firm during the year. The following are the important concepts of funds. The term funds may be taken to refer to cash only. This is a general notation of the term funds and is used for expressing the liquidity of a firm. Therefore, a SCFP based on this concept of funds will report and include only those transaction which are affecting the cash balance, such SCFP will be just a summery of the cash transactions. Hence, nonmonetary transaction such as purchase of fixed assets by issue of debenture will not be reported in a SCFP. The term funds may also be used to denote the net working capital of the firm. The net working is the difference between the total current assets and total current liabilities. Since, cash is only one of the several current assets; this view of the term funds is broader than the preceding concept. A SCFP prepared on the basis of the net working capital concept of funds will include all those transactions which affect the net working capital of the firm. So, any transaction affecting current assets or current liabilities will find place in the SCFP. However, there may be different transaction which do not affect the net working capital and therefore, will be outside the scope of SCFP.
CHAPTER-V
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DATA ANALYSIS AND INTERPRETATION 5.1 COMPARATIVE FINANCIAL STATEMENL (CFS) In CFS, two or more BS and/ or the IS of a firm are presented simultaneously in columnar form. The financial data for two or more years are placed and presented in adjacent columns and thereby the financial data is provided a times perspective in order to facilitate periodic comparison. The preparation of the CFS is based on the premise that a statement covering a period of a number of years is more meaningful and significant than for a single year only, and that the financial statement for one period represent only 1 phase of the long and continuous history of the firm. The CFS can be prepared for both the BS and the IS. 5.1 a) COMPARATIVE BALANCE SHEET (CBS) The CBS shows the different assets and liabilities of the firm on different dates to make comparisons of absolute balances and also of changes if any, from one date of another. The CBS may be helpful in analyzing and evaluating the financial position of the firm over a period of number of years.
Table No. 1
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SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT, CHIKODI Comparative Balance Sheet (Amts in crores)
Particulars 2006-2007 2007-2008 INCREASE/ DECREASE(Amt) LIABILITIES Share Capital Reserves & Surpluses Term loan Working capital loan Bank O. D. payable Statutory and other deposits Suspense, sundries & other Total ASSETS Fixed assets Investments Current assets Loans and advances Debtors Cash in hand Cash at bank Profit and loss account Total 132.19 676.80 409.49 912.46 8.40 683.18 555.99 3378.51 1296.30 2.62 1242.47 48.55 272.93 0.32 158.33 356.99 3378.51 133.66 757.90 502.83 717.85 12.83 666.17 471.07 3262.31 1307.44 16.73 1039.87 101.44 274.33 0.30 132.40 389.80 3262.31 1.47 81.10 93.34 (194.61) 4.43 (17.01) (84.92) (116.20) 11.14 14.11 (202.6) 52.89 1.40 (0.02) (25.93) 32.81 (116.20) INCREASE / DECREASE (%tage) 1.12 11.99 22.80 21.33 52.74 2.49 15.28 3.44 0.86 583.55 16.31 108.94 0.52 6.25 16.38 9.19 3.44
INTERPRETATION Current assets The investments in the current assets are low and it has decreasing trend over the period under study. The current assets have decreased by Rs. 202.60 (crores) i.e., Rs.1242.47 in 2007 and Rs.1039.87 in 2008. So it is significantly
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effects on the liquidity position of the company and it also decrease the working capital of the company. Net fixed assets The net fixed assets increased by 11.14(crores) i.e., almost 1307.44 in 2008 when composed to 2007. So it is increased the financial performance of the company. Investments There is change in investments for comparing the previous year and the current year. For previous year it will be Rs. 2.62 (crores) and for current year it will be Rs. 16.73 (crores). Current liabilities Current liabilities include current liabilities and provisions. Current liabilities and provisions decreased by Rs.275.10(crores) i.e., about Rs.1476.85 in 2007 when composed to Rs.1201.75 in 2008. . Reserve and surplus The Reserve and Surplus has increased by Rs.81.10(crores) i.e, about Rs.676.80 in 2007 to Rs.757.90 in 2008. 5.1 b) COMPARATIVE INCOME STATEMENT (CIS) A CIS shows the figure of different items of the IS of the firm in absolute terms, the absolute changes from one period to another and if desired, the changes in percentage form. The CIS is helpful in deriving meaningful conclusions regarding changes in sales volume, cost of goods sold, different expenses items etc.
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from the CIS, a financial analyst can quickly ascertain whether sales are increasing or decreasing and by how much amount or by how much percentage. Table No. 2 SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT, CHIKODI COMPARATIVE INCOME STATEMENT (Amounts in crores)
2006-2007 Details Income Sales (Revenues) Other Income Total Expenditure Cost of goods sold Gross Profit Selling and Administration Expense(operating exp) Operating income Non operating exp Non operating income Loss 1640.81 10.48 1651.29 1517.95 133.34 40.23 42.35 124.37 7.13 18.22 1773.10 3.25 1776.35 1624.81 151.54 94.75 1.36 161.62 70.66 32.81 132.29 7.23 125.06 106.86 18.2 54.52 40.99 37.25 63.53 14.59 8.07 68.99 7.58 7.04 13.65 135.52 96.79 29.95 891.03 80.08 2007-2008 Increase/decrease AMOUNT Increase/decrease (%tage)
INTERPRETATION On the basis of comparative income statement it can be said that gross profit for the year 2006 has increased by Rs.18.20 over the profit for the year 2008. The Net sales during the same period have increased by Rs.132.29. The cost of goods sold increased by Rs.106.86.
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The selling and Administrative expenses increased by 135.52% Non operating income for the year 2008 is increased by 891.03%. The non operating expense is increased by 29.95% during the year 2008. The Net loss is increased 80.08%.
5.2 COMMON SIZE STATEMENT The CSS represents the relationship of different items of a financial statement with some common item by expressing each item as a percentage of the common item. In common size Balance sheet, each item of the Balance sheet is stated is stated as a percentage of the total of the Balance sheet. Similarly in common size income statement, each item is stated as percentage of the net sales. The percentage for different items is computed by dividing the absolute amount of that item by the common base and then multiplying by 100. The percentage so calculated can be easily compared with the corresponding percentages in some other period. Table No. 3 SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT, CHIKODI COMMON SIZE INCOME STATEMENT (Amts in crores)
Particulars 2005 2006 2007 2008
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Net sales less-cost of goods sold G.P. less-selling &administrative exp Add-operating income Less-Non operating exp Add-Non operating income Profit Loss
100 79.08 20.89 24.25 21.13 15.45 0.24 2.56
100 96.78 3.22 11.28 1.30 6.93 0.79 12.90
100 92.52 7.49 2.46 2.59 7.58 0.44 0.48
100 91.64 8.37 5.35 0.08 9.12 3.99 2.04
Table No. 4 SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT, CHIKODI COMMON SIZE BALANCE SHEET (Amts in crores)
Particulars LIABILITIES Share Capital Reserves & Surpluses Term loan 2004-05 3.91 16.74 19.25 2005-06 3.44 18.14 16.43 2006-07 3.92 20.02 12.12 2007-08 4.10 23.23 15.42
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Working capital loan Bank O. D. payable Statutory and other deposits Suspense, sundries & other Total ASSETS Fixed assets Investments Current assets Loans and advances Debtors Cash in hand Cash at bank Other assets Profit and loss account Total 22.75 0.96 27.24 9.15 100 40.18 0.05 45.71 1.80 8.79 0.05 2.97 0.45 100 25.23 0.18 23.73 12.85 100 39.31 0.07 48.67 1.55 7.95 0.04 1.97 0.44 100 27.01 0.25 20.23 16.45 100 38.37 0.08 36.78 1.44 8.08 0.01 4.67 10.57 100 22.01 0.40 20.41 14.43 100 40.08 0.52 3.11 31.86 8.41 0.01 4.06 11.95 100
5.3 TREND PERCENTAGE ANALYSIS The TPA is a technique of studying several financial statements over a series of years. In TPA the trend percentage are calculated for each item by taking the figure of that item for some base year as RS. 100. So, the trend percentage is the percentage relationship which each item of different years bears to the same item in the base year. Any year may be taken as the base year, but generally the starting/initial year is taken as the base year. So, each item for base year is taken as 100and then the same item for other years is expressed as a percentage of the base year. Table No. 5 SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT, CHIKODI TREND ANALYSIS INCOME STATEMENT
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(Amounts in crores)
Particulars Sales Less- cost of sales Gross profit Less- admin & selling exp. Add- operating income Less- Non operating exp Add- Non operating income Profit Loss Trend percentage (%) 2006 2007 100 120.17 100 114.87 100 279.49 100 26.14 100 238.73 100 135.53 100 0.33 100 66.64 100 2008 129.86 122.96 337.33 61.56 7.67 59.54 57.13 660.38
Table No. 6 SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT, CHIKODI TREND ANALYASIS BALANCE SHEET (Amounts in crores)
Particulars LIABILITIES Share Capital Reserves & Surpluses Term loan Working capital loan Bank O. D. payable Statutory and other deposits Suspense, sundries & other Total ASSETS Fixed assets Investments Current assets Loans and advances Debtors Cash in hand Cash at bank Other assets Profit and loss account 2005-2006 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 2006-07 1206.93 117.22 96.13 113.62 139.07 90.44 135.88 106.12 103.60 103.98 80.18 98.41 107.83 28.31 251.79 2007-08 1220.30 131.27 78.28 89.39 212.41 88.19 115.12 102.47 104.50 666.53 67.10 205.63 108.38 26.54 210.55 -
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Total 100 106.12 102.47
INTERPRETATION: Current Assets and Current Liabilities Current assets and current liabilities have declined in current year. It affected the liquidity of a company. Current assets are 67.10% in 2008 and Current Liabilities are 128.08% in 2008. Net fixed assets The net fixed assets increased in 2008 by 104.50% and 103.60 in 2007. It shows the company is more invested in fixed assets. Investments There is change in investments for comparing the base year and the current year. For previous year it will be 103.98% and for current year it will be 666.53%.
5.4 RATIO ANALYSIS MEANING Ratio analysis is a widely-used tool of financial analysis. It is defined as the systematic use of ratio to interpret the financial statements to that the strength and weaknesses of a firm as well as its historical performance and current financial condition can be determined. A ratio is relationship expressed in mathematical terms between two individual and groups of figures connected with each other in some logical manner. The relationship between two or more accounting figures/groups is called financial ratio. A financial ratio helps to summarize a large
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mass of financial data into a concise form and to make meaningful interpretation and conclusion about the performance and positions of a firm. TYPES OF RATIO Ratio can be classified into four broad groups: LIQUIDITY RATIOS LEVERAGE RATIOS ACTIVITY RATIOS PROFITABILITY RATIOS LIQUIDITY RATIO Liquidity ratio measures the ability of the firm to meet its current obligation. In fact, analysis of liquidity needs the preparation of cash budgets and cash and fund flow statements; but liquidity ratio, by establishing a relationship between cash and other current assets to current obligation, provide a quick measure of liquidity. The most common ratios which indicate the extent of liquidity are: Current ratio Quick ratio Current ratio The current ratio is calculated by dividing current assets by current liabilities: Current ratio = current assets _______________________ Current liabilities
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Current assets include cash and those assets which can be converted into cash within a year, such as marketable securities, debtors and inventories. The standard ratio is 2:1. Table No. 7 CHART SHOWING CURRENT ASSETS TO CURENT LIABILITIES 2004Details 1. CURRENT RATIO Current Assets Current Liabilities 05 1.51 1402.8 8 932.47 200506 1.25 1521.0 200607 1.41 200708 1.21
7 1673.74 1446.92 1216.5 0 1472.95 1200.52
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Chart No. 1
CURRENT RATIO
3500 3000 2500 2000 1500 1000 500 0
Current Liabilities Current Assets 2004- 2005- 2006- 200705 06 07 08 YEAR
INTERPRETATION As a matter of policy or as referred to as bankers rule of thumb, the current ratio of 2:1 is considered to be satisfactory. The analysis is proved that the current ratio position of the DKSSK is not fully satisfactory. That is 1.51 times in 2005, 1.25 times in 2006, 1.14 times in 2007, 1.21 times in 2008. Quick ratio Quick ratio establishes a relationship between quick, or liquid, assets and current liabilities. An asset is liquid if it can be converted into cash immediately or reasonably soon without a loss of value. Inventories are considered to be less
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liquid. The quick ratio is found out by dividing quick asset by current liabilities. The standard ratio is 1:1. Quick ratio = liquid assets _______________________ liquid liabilities Table No. 8 CHART SHOWING LIQUID ASSETS TO LIQUID LIABILITIES 2004Details 2. QUICK RATIO Liquid assets Liquid Liabilities 05 0.50 450.60 905.20 Chart No. 2 200506 0.38 454.32 1210.4 5 200607 0.41 595.45 1464.5 200708 0.46 535.79
5 1187.68
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QUICK RATIO
2500 2000 1500 1000 500 0 2004- 2005- 2006- 200705 06 07 08 YEAR Liquid Liabilities Liquid assets
INTERPRETATION The quick ratio of 1:1 is considered satisfactory. The company is not having a good liquidity. That is in the years 2005, 2006, 2007 and 2008 the quick conversion ratio is 0.50, 0.38, 0.41, and 0.46 times respectively of the current liabilities. SOLVANCY RATIO These ratios are used in analyzing long term solvency of a firm. These ratios indicate the pattern of financing i.e. whether long term requirements have been met out of long term funds or not. Proprietary ratio Solvency ratio Proprietary ratio
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It is the ratio of proprietors funds to tangible assets. The standard is 75% to 85%.
Proprietary ratio =
Share holders funds _______________________ Total tangible assets
Table No.9 CHART SHOWING SHARE HOLDERS TO TANGIBLE ASSETS 2004Details 3. PROPRIETARY RATIO Share holders funds Total tangible assets 05 0.40 533.89 1349.90 Chart No. 3 200506 0.44 631.98 1466.1 8 200607 0.47 754.11 1618.8 200708 0.61 836.68
5 1392.03
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PROPRIETARY RATIO
2500 2000 1500 1000 500 0 2004- 2005- 2006- 200705 06 07 08 YEAR Total tangible assets Share holders funds
INTERPRETATION This ratio shows the risk means, high ratio shows the lesser risk to the creditors. In 2005 it is 0.40, 2006 it is 0.44, 2007 it is 0.47 and 2008 it is 0.61. The proprietary ratio will be satisfactory. Solvency ratio It refers to the ability of the firm to pay both short term and long term liabilities. A co is solvent, if it can meet its outside liability out of its total assets. Solvency ratio = Total assets
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Out side liabilities _______________________* 100
Table No. 10 CHART SHOWING OUT SIDE LIABILITY TO TOTAL ASSETS 2004Details 4. SOLVENCY RATIO Out side liabilities Total assets 05 0.62 828.09 1349.90 200506 0.64 935.63 1466.1 8 200607 0.60 969.12 1618.8 200708 0.71 984.61
5 1392.03
Chart No. 4
SOLVENCY RATIO
3000 2500 2000 1500 1000 500 0 2004- 2005- 2006- 200705 06 07 08 YEAR Total assets Out side liabilities
76
INTERPRETATION The company cannot meet solvency because there is high solvency ratio. High solvency ratio shows insolvent. The company cannot pay both short term and long term liabilities. i.e. 2005, 2006, 2007 and 2008 are 0.62, 0.64, 0.62 and 0.71 respectively. EFFICIENCY RATIO Efficiency ratios measures efficiency with which the assets are managed in the business. High ratio indicates efficient management of assets and low ratio depicts inefficient management of assets. Fixed assets turn over ratio Working capital turnover ratio
Fixed assets turnover ratio This ratio indicates the extent to which the investment in fixed assets contribute towards sales. Fixed assets turnover ratio = Fixed assets Table No. 11 CHART SHOWING NET SALES
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Net sales _______________________
TO FIXED ASSETS 2004Details 5. ASSETS TURNOVER ROTIO Net sales Fixed assets 1.00 1.10 1.27 1640.8 1.36 05 FIXED 200506 200607 200708
1143.15 1365.47 1142.1 1251.1 1
1 1773.10
5 1296.30 1307.44
Chart No.5
FIXED ASSETS TURNOVER RATIO
3500 3000 2500 2000 1500 1000 500 0
Fixed assets Net sales 2004- 2005- 2006- 200705 06 07 08 YEAR
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INTERPRETATION There is a more investment in fixed assets. All fixed assets are contributed towards sales. In 2005 it is 1.00, 2006 it is 1.10, 2007 it is 1.27 and 2008 it is 1.36 there is increase in fixed assets. Working capital turnover ratio This ratio shows whether working capital has been efficiency used in making sales. High ratio indicates higher operating efficiency of a firm. Working capital turnover ratio = Net sales _______________________ Working capital
Table No. 12 CHART SHOWING NET SALES TO WORKING CAPITAL 2004Details 6.WORKING CAPITAL TURNOVER RATIO Net sales 4.64 6.80 1143.15 1365.47 5.39 3.77 1640.8 1773.10 05 200506 200607 200708
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1 304.56
Working capital
246.40
200.78
470.40
Chart No. 6
WORKING CAPITAL TURNOVER RATIO
2500 2000 1500 1000 500 0 2004- 2005- 2006- 200705 06 07 08 YEAR Working capital Net sales
INTERPRETATION Decrease in working capital turnover ratio.i.e. 4.46, 6.80, 5.39 and 3.77 in 2005, 2006, 2007 and 2008 respectively. It shows the working capital does not efficiently used in making sales. PROFITABILITY RATIO Profitability is an indicator of efficiency with which the operations of the business are performed. Profitability ratios are used to know how efficiently operations are carried out. Gross profit ratio
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Operating cost ratio Return on investment Gross profit ratio It is ratio of gross profit to net sales expressed as a percentage. It shows the relationship between gross profit and sales. Gross profit ratio = Gross profit _______________________* 100 Net sales
Table No. 13 CHART SHOWING GROSS PROFIT TO NET SALES 2004Details 7. 05 GROSS 0.21 238.75 0.04 43.96 0.08 122.86 1640.8 0.09 148.29 200506 200607 200708
PROFIT Gross profit Net sales
1143.15 1365.47
1 1773.10
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Chart No. 7
GROSS PROFIT RATIO
2000 1500 1000 Net sales 500 0 Gross profit 2004- 2005- 2006- 200705 06 07 08 YEAR
INTERPRETATION The gross profit ratio will be slightly increased from 2006 to 2008. i.e. 0.04, 0.08 and 0.09 respectively. It helps to ascertain the average gross margin to be maintained on sales. Operating cost ratio This is the ratio of net profit to net sales. It indicates whether the cost component in the sales is higher or low. Operating cost ratio = operating cost _______________________* 100
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Net sales Table No. 14 CHART SHOWING OPERATING COST TO NET SALES 2004Details 8.OPERATING RATIO Operating cost Net sales 05 COST 103.37 1181.5 9 14.50 197.88 9.94 163.09 1640.8 13.71 243.04 200506 200607 200708
1143.15 1365.47
1 1773.10
Chart no. 8
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OPERATING COST RATIO

2500 2000 1500 1000 500 0 2004- 2005- 2006- 200705 06 07 08 YEAR Net sales Operating cost
INTERPRETATION The operating cost ratio shows the operating efficiency of a firm. There is a standard up to 75% to 85%.i.e 103.37, 14.50, 9.94 and 13.71 in 2005, 20006, 2007 and 2008 respectively. Return on investment ratio This is the ratio which indicates percentage of return on capital invested in the business. It shows the efficiency of the business as a whole. Operating profit ROI ratio = _______________________* 100 Capital employed
Table No. 15
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CHART SHOWING OPERATING PROFIT TO CAPITAL EMPLOYED 2004Details 1.RETURN RATIO Operating profit Capital employed 05 ON - 0.03 - 38.44 1134.0 - 0.09 109.66 0.07 82.63 1218.4 0.04 53.54 200506 200607 200708
INVESTMENT
4 1209.93 Chart No. 9
9 1394.40
RETURN ON INVESTMENT RATIO

1600 1400 1200 1000 800 600 400 200 0 -200
Capital employed Operating profit
2004-05 2005-06 2006-07 2007-08 YEAR
INTERPRETATION
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Return on investment shows the capital is fruitfully employed in the business or not. The ROI ratio will be low compare to 2007 i.e. 0.07 and 0.04 in 2008.there is no ROI in 2005 and 2006.
5.5 FUND FLOW STATEMENT
MEANING Fund flow statement is a statement of sources and application of funds. According to Robert Anthony, the funds flow statement describes the sources from which funds were derived and the uses to which these funds were put. In other words of Smith and Brown, A funds flow statement is prepared in summary form to indicate changes occurring in terms of financial condition between two different balance sheets. In short, it is a statement which shows how the working capital is obtained and how it is put to use.
Table No. 16
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SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT, CHIKODI SCHEDULE OF CHANGES IN WORKING CAPITAL (Amounts in crores)
Particulars Current assets Current assets Loans & advances Receivables Cash Bank (A) Current liabilities Short term loan B.O.D. Suspense, sundries payables (B) Working capital (A-B) Increase or decrease in w.c. 1476.85 245.75 100.84 346.59 1201.75 346.59 346.59 333.80 100.84 333.80 Previous year 1242.47 48.55 272.93 0.32 158.33 1722.60 912.46 8.40 555.99 Current year 1039.87 101.44 274.33 0.30 132.40 1548.34 717.85 12.83 471.07 Increases in w.c. 52.87 1.40 0.02 194.61 84.92 Decreases in w.c. 202.60 25.93 4.43 -
&
cane
SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT, CHIKODI FUNDS FROM OPERATIONS (Amounts in crores)
87
Loss from p&l a\c Add non fund items debited to p&l a\c Interest paid Management expenses Rates and taxes Tot al 152.20 Less non operating incomes credited to p&l a\c Interest on dividend Funds from operations 1.36 150.84 - 32.96 161.62 1.17 22.37 185.16
SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT, CHIKODI FUND FLOW STATEMENT FOR THE YEAR ENDING 31-03-2008 (Amounts in crores) Sources of funds Issue of funds Amount Application of funds 1.47 Paid to statutory & other
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Amount 17.00
deposits 93.30 Purchases of fixed assets 150.84 Purchases of investment Reserve & surplus Tax paid Increase in w.c. 246.00
Long term loans Funds from operations
11.00 14.00 81.00 22.16 100.84 246.00
INTERPRETATION The fund flow statement shows the increase in working capital because there is increase in current assets and the sources of funds are hugely used in purchasing fixed assets and investment.
5.6 CASH FLOW STATEMENT MEANING A cash flow statement is a statement, which shows the changes in cash position of a firm from one period to another. It is a statement indicating inflow and out flow of cash during a financial period. In other words it is a statement which provides information about the cash receipt and payments of a firm for a given period. The Institute of Cost and Works Accountants of India has defined cash flow of statement as a statement setting out the flow of cash under distinct heads
89
of sources of funds and their utilization to determining the requirements of cash during the given period and to prepare for its adequate provision Table No. 17 SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT, CHIKODI STATEMENT OF CASH FROM OPERATIONS (Amounts in crores)
Funds from operations Add notional cash received Decrease in current assets Less notional cash paid Decrease in current liabilities Cash from operations 150.84 174.26 325.10 275.10 50.00
SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT, CHIKODI CASH FLOW STATEMENT FOR THE YEAR ENDING 31- 3- 2008 (Amounts in crores)
Opening balance (Cash) Add sources of cash Issue of shares Long term loans Cash from operations Less application of cash Purchase of fixed assets Purchase of investment Paid to statutory & other deposits Reserve and surplus Tax paid 158.65 1.46 93.30 50.00 11.14 14.12 17.00 81.10 22.35
144.76 303.41
90
Non trading payments Closing balance (cash) 25.00 170.71 132.70
INTERPRETATION In cash flow statement the application of cash is more compare to sources of cash and it is also helpful in planning for immediate future to avoid cash shortages.
FINANCIAL STRENGTH AND WEAKNESSES OF THE COMPANY STRENGTH On the basis of comparative income statement it can be said that gross profit for the year 2008 has increased by Rs.13.65% over the profit for the year 2007. The Net sales during the same period have increased by Rs.8.07%. In comparative balance sheet the fixed assets, investments and reserve and surplus are increases i.e. 0.86%, 583.55% and 11.99% respectively. Current liabilities are decrease by 18.63%. Based on common size income statement the gross profit is gradually increases i.e. 20.89% in 2005, 3.22% in 2006, 7.49% in 2007 and 8.37% in 2008. In common size balance sheet the share capital, reserve and surplus, fixed assets and investments are increases in 2008 i.e. 4.10%, 23.23%, 40.08% and 0.52% respectively.
91
On the basis of trend income statement the sales are increased by 129.86% in 2008 to 120.17 in 2007. The gross profit is also increase by 20.70%. In trend balance sheet the share capital, reserve and surplus, fixed assets and investments are increases i.e. 120.30, 159.31, 114.48 and 1186.53. Based on ratio analysis the current ratio, liquidity ratio and gross profit ratio slightly increases. It shows the company liquidity. Based on fund flow statement it shows the sources from which funds were derived and the uses to which these funds were put. On the basis of cash flow statement it shows the inflow and out flow of cash. WEAKNESSES Based on comparative income statement the selling and Administrative expenses increased by 135.52% Non operating income for the year 2008 is increased by 891.03%. The non operating expense is increased by 29.95% during the year 2008. The Net loss is increased 80.08%. In comparative balance sheet the current assets are decrease by 16.31%. And cash & bank balance also decrease by 22.65%. On the basis of common size income statement the cost of goods sold is high i.e. 79.08% in 2005, 96.78% in 2006, 92.52% in 2007 and 91.64% in 2008 on total sales. In common size balance sheet the current assets are decreased by 3.11%. The current liabilities are also increased by 36.84%.
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Based on trend income statement the cost of goods sold are increase in 2007114.87 and 2008 -122.96. In trend balance sheet the current assets are decreased by 80.04 and the current liabilities are increased by 314.39. Based on ratio analysis the solvency ratio shows the insolvent of the company and return on investment shows the capital is not fruitfully employed in the business. Based on fund flow statement there is a decrease in working capital and it shows the sources of funds are hugely used in purchasing fixed assets. On the basis of cash flow statement the application of cash is more compare to sources of cash. CHAPTER VI FINDINGS AND SUGGESTIONS FINDINGS:
a)
The current ratio and quick ratio are not satisfactory because the current ratio is not up to the standard limit for efficient utilization of current assets. In quick ratio the liquid liabilities are more than liquid assets. The proprietary ratio is good because the share holders funds are up to the standard limit. It shows lesser risk but solvency ratio is not satisfactory due to increases in out side liability.
b) c)
d) The fixed assets turnover ratio indicates the efficient management of assets. In working capital turnover ratio the working capital is not efficiently used in making sales.
93
e) The gross profit ratio and operating cost ratio are satisfactory because the gross profit is high towards sales and operating cost is less compare to last two years.
f)
Return on investment and gross profit also is found to be very very low i.e. negative in the year 2005-2006 and it is slightly positive in 2006 and 2007.
g) The major application of fund is decrease of working capital and not purchase of long term assets.
SUGGESTIONS 1. Ratio analysis indicates the firm is not in good health none of the ratios are reaching the ideal ratios necessary for enhancement of share holders wealth. Hence the firm should concentrate on enhancing the operating efficiency of the firm. 2. From the study it is found that the funds are used for short term assets which should be avoided. The long term sources of fund should be used for long term assets and not short term assets.
CHAPTER VII
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CONCLUSION By analyzing the topic of CASH AND FUND FLOW ANALYSIS AND RATIO ANALYSIS OF DKSSKN LTD. CHIKODI I conclude that the company is more concentrate on raising the fixed assets rather than operating activities which decreases working capital of the company. Which affects the operational efficiency of the company and also the liquidity position is not satisfactory due to these reasons. This project report helped me to get the good knowledge on to improve the liquidity position for better maintenance of the company.
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CHAPTER IX
ANNEXURE SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT, CHIKODI BALANCESHEET AS AT MARCH 31st - 2005, 2006, 2007 AND 2008 (All amounts in crores of Indian rupees unless otherwise stated)
PARTICULARS LIABILITIES Share Capital Reserves & Surpluses Term loan Working capital loan Bank O. D. payable Statutory and other deposits Suspense, sundries & other Total ASSETS Fixed assets Investments Current assets Loans and advances Debtors Cash in hand Cash at bank Other assets Profit and loss account Total 2004-2005 111.11 475.75 547.17 647.04 27.26 774.01 259.91 2842.25 1142.11 1.41 1299.18 51.04 249.58 1.52 84.31 13.10 2842.25 2005-2006 109.53 577.33 523.06 803.01 6.04 755.33 409.17 3183.47 1251.15 2.52 1549.60 49.34 253.11 1.13 62.88 13.74 3183.47 2006-2007 132.19 676.80 409.49 912.46 8.40 683.18 555.99 3378.51 1296.30 2.62 1242.47 48.55 272.93 0.32 158.33 356.99 3378.51 2007-2008 133.66 757.90 502.83 717.85 12.83 666.17 471.07 3262.31 1307.44 16.73 1039.87 101.44 274.33 0.30 132.40 389.80 3262.31
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH 2005, 2006, 2007 AND 2008
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(All amounts in crores of Indian rupees unless otherwise stated) PARTICULARS Income Sales (Net revenue) Other Income Total Expenditure Less - Cost of goods sold Gross Profit Less - Selling & Administration Expense (0perating exp) Operating profit/loss Add - Operating income Less - Non operating expense Add - Non operating income Profit Loss 2004-05 1143.15 1143.15 904.40 238.75 277.19 -38.44 241.49 176.55 2.72 29.22 2005-06 1365.47 62.16 1427.63 1321.51 106.12 153.92 -47.80 17.74 94.59 10.70 113.94 2006-07 1640.81 10.48 1651.29 1517.95 133.34 40.23 93.11 42.35 124.37 7.13 18.22 2007-08 1773.10 3.25 1776.35 1624.81 151.54 94.75 56.79 70.66 161.62 1.36 32.81
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A Project Report On Cash and Fund Flow Analysis and Ratio Analysis of DKSSKN, Chikodi

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CASH AND FUND FLOW ANALYSIS AND RATIO ANALYSIS OF DKSSKN, CHIKODI

might have. Suggestions

THE BRITISH AT FIRST

SUGAR INDUSTRY IN INDIA:

COMPANY PROFILE SHREE D.K.S.S.K.N.- CHIKODI, Taluka chikodi, dist.- Belgaum

2. Sri Ajit S Desai

However this cooperative and rural

Encourage agro-based co-operative industry.

Energy Department of Government of Karnataka and KREDL awarded us

he excellence Award through Deputy Chief Minister of DIWAS ON

GENERAL & MANAGER WARD

CHIEF A\C C.D.O.

CANE SALES A\C. COMPUTER

GAD PURC. SECTION SECTION

INWARD & OUTWARD

BYPRODUCTS OF SUGAR CANE The chief by products of sugar manufacturing are -

FLOW CHART OF SUGAR MANAFACTURING

c. Information System Structure of information system

SENIOR GENERAL MANAGER

HEAD OF THE DEPARTMENT

SUGAR CANE SUPPLY.

MILLING OF CANE/ EXTRACTION OF JUICE.

CLARIFICATION AND EVAPORATIONS.

CANE ACCOUNTS SECTION:

PURCHASE DEPARTMENT HIERARCHY PROCEDURE OF PURCHASING

1. DETERMINATION OF PURCHASE BUDGET:

packing of bags per day.

reduces transportation charges.

CHAPTER- III DESIGN OF THE STUDY

3.6 Sources of data collection

CHAPTER- IV FINANCIAL ANALYSIS

TECHNIQUES/TOOLS OF THE AFS

100 79.08 20.89 24.25 21.13 15.45 0.24 2.56

100 96.78 3.22 11.28 1.30 6.93 0.79 12.90

100 92.52 7.49 2.46 2.59 7.58 0.44 0.48

100 91.64 8.37 5.35 0.08 9.12 3.99 2.04

7 1673.74 1446.92 1216.5 0 1472.95 1200.52

Current Liabilities Current Assets 2004- 2005- 2006- 200705 06 07 08 YEAR

Share holders funds _______________________ Total tangible assets

Out side liabilities _______________________* 100

Net sales _______________________

1143.15 1365.47 1142.1 1251.1 1

Fixed assets Net sales 2004- 2005- 2006- 200705 06 07 08 YEAR

PROFIT Gross profit Net sales

OPERATING COST RATIO

4 1209.93 Chart No. 9

RETURN ON INVESTMENT RATIO

Capital employed Operating profit

2004-05 2005-06 2006-07 2007-08 YEAR

5.5 FUND FLOW STATEMENT

Long term loans Funds from operations

11.00 14.00 81.00 22.16 100.84 246.00

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