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CHAPTER 1
INTRODUCTION
Finance is one of the basic foundations of all kinds of economic
activities. It is the master key which provides access to all the sources
for being employed in manufacturing and merchandising activities. It
has rightly being said that business needs money to make more
money. However it is also true that money generate more money, only
when it is properly managed. Hence, efficient management of every
business enterprise is closely linked with the efficient management of
its finance. Financing of a firm means providing money for
investment in the form of fixed assets and also in the form of working
capital for day to day operations.
Business finance mainly involves, rising of funds and thus effective
utilisation keeping in view the overall objective of the firm. This
requires great caution and wisdom on part of management. The
management makes use of various financial techniques, devices etc
for administering the financial affairs of the firm in most efficient
way.
CHAPTER 2
OBJECTIVES
To ascertain the liquidity of the company.
CHAPTER 3
THEORETICAL PERSPECTIVE
Financial Statements
The information generally expected from an accounting system is
presented through financial statements. Financial statements are the
result of accounting process, which starts with identification of
accounting information and recording thereof in the books of primary
entry. A financial statement is a collection of data organized according
to the logical and consistent accounting procedure. Financial
statements are prepared for the purpose of presenting a periodical
review or report on the progress by the management and deal with
(a)
(b)
2) Creditors
The creditors supply goods and services
on credit to the firm. They are interested in knowing firms
short term financial positions, i.e., whether firm will be able
to pay off their debts on demand.
3) Bankers
The banker is interested to see that the
loan amount is secure and the customer is also able to pay the
interest regularly. The bankers analyse the balance sheet to
determine the financial strength and profit earning positions
of the concern.
4) Employees
Employees are interested in the
financial position of a concern in which they work,
5) Investors
6) Government
7) Research Scholars
8) Consumers
9) Trade Association
10) Stock Exchange
Financial Analysis
Financial Statement analysis is the most important part of
Financial Analysis. It is based on statements, which are the end
product of accounting system. It is based on statement analysis. It is
largely a post-mortem of the transactional activities of a business
Sree Narayana College Of Technology and Research Centre
CHAPTER 4
INDUSTRY PROFILE
Sree Narayana College Of Technology and Research Centre
Most of the mills in central and state public sector are units taken
over from the private sector at different times, when they turned sick.
3) Lack of modernisation.
4) Non-availability of credit.
5) Increase in cost of production.
6) Low productivity.
7) Power problems.
Company Profile
Aleppey Co-operative Spinning Mills registered
on 21-7-1981 by number D/7934/81 was commissioned on 3110-1999 with capacity of 6000 spindles. The commissioning had
done after a long lapse of 18 years because of financial crisis.
The government acquired 7.9 hectare i.e., 19.5 c of land in
Pathiyoor Village, Kareelakulangara, Kayamkulam in Aleppey
District with an estimated value of 26.9 lakhs. The project report
was prepared by the All India Federation of Co-operative
Spinning Mills ltd Bombay with an ultimate capacity of 25000
spindles. The total cost of the project was Rs 1136 lakhs
(due to financial stringency the project has to be curtained to
of its proposed stage of its full fledged capacity). The second
stage towards commissioning of this mill for another 6048
spindles is in progress even though sluggishly. The third phase
towards coming of the balance 12000 and old spindles will be
launched only after the second phase is commissioned.
The initial membership if the society was 34 members
and was registered as a Public Ltd Company in the co-operative
sector.
At first mill was registered as a co-operative society under
Kerala Co-operative Societies Act 1969.
The board of Directors shall compete to delegate the power
and duties of the Chairman, General Managers or any other
officer of the mill for the efficient management of the business
of the mill.
Sree Narayana College Of Technology and Research Centre
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Methodology
Research Methodology
Research methodology means the scientific method of
conducting a research. It is the research which can be selected
for conducting a study according to nature and scope of the
subject. The result of the research is capable of being evaluated
either by the researcher himself or by others. Both primary and
secondary data are used for the project work.
Collection of Data
Primary Data: for this project work primary data are collected
through discussion with staff and conducting personal interview
with the higher level official especially with the financial
manager.
Sree Narayana College Of Technology and Research Centre
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