A Project Report On Financial Ratio Analysis of Sri Halsidhnath S.S.K LTD Nipani

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

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

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

To find activity turnover
SCOPE OF THE STUDY

The scope of the study is identified after and during the study is conducted. The main scope
of the study was to put into practical the theoretical aspect of the study into real life work
experience. The study of
Ratio analysis further the study is based on last 5 years Annual
Reports Shri Halasidhnath Sahakari Sakhar Karkhana. Ltd.

LIMITATIONS OF THE STUDY
The analysis is limited to just five years of data study (from year 2005 to year 2009) for
financial analysis.
Limited interaction with the concerned heads due to their busy schedule.
Page 2
METHDOLOGY
In preparing of this project the information collected from the following sources.
Primary data:
The Primary data has been collected from Personal Interaction with Finance manager Mr.C.B
KARABE and other staff members.
Secondary data:
The major source of data for this project was collected through
Balance sheet of SSHSKL
Profit and loss account of 5 year period from 2005-2009
SAMPLING DESIGN
Sampling unit
: Financial Statements.
Sampling Size
: Last five years financial statements.
Tools Used: MS-Excel has been used to create a Charts and calculation.
Findings
Gross profit and net profits are decreased during the period of study, which indicates that
firms inefficient management in manufacturing and trading operations.
Gross profit and net profits are increased during the period of 2004-05 which indicates
that firms efficient management in manufacturing and trading operations.
Liquidity ratio of the firm is not better liquidity position in over the five years. It shows
that the firm had not sufficient liquid assets.
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The inventory of the firm in the first year has been sold very slow. And there is an
increase in the movement of the inventories but it slightly decreased in the last year. This
may be a sign not good to the firm.
The fixed assets turnover ratio of the firm has in 2004-05 the ratio is 0.85 and it increase
in the next 3years continuously and it again decrease in 2008-09.
The current assets turnover ratio is increasing during the period of 2004-06 and again it
decrease in the period of 2006-07. And again increase in next two year slithightlliy.
Direct Material cost ratio of the firm is has less material cost during the period of 200405 & 2007-08 and it raised in the year of 2005-06 and 2008-09.
The cost of direct labour of the firm in the year of 2004-05 is 4.94%and it increasing
slithightlliy up to 2007-08 and it decrease in the next year.
The cost of manufacturing overhead of the firm in the year of 2004-05 is 5.22% where it
compare to the next 3year it increase rapidly.
SUGGESTIONS
The profit Of the Company Is not in a good Position For That company has to Take
Alternative Actions such As
Increasing in Procurement in sugarcane ,
Production, and Control in Expenses Like, Administrative, selling Etc.
The firms have low current ratio so it should increase its current ratio where it can meet
its short term obligation smoothly.
Liquidity ratio of the firm is not better liquidity position in over the five years. So I
suggested that the firm maintain proper liquid funds like cash and bank balance.
It should enhance its employees efficiency, more training needed to its employees in
order to increase its production capacity and minimize mistakes while performing the
tasks, also more safety precaution need to implement to the employees who directly
working on sugar production process.
Page 4

The firm high inventory so I suggested that the firm must reduce the stock by increase
sales.
The direct material cost of the firm is very high so it is advisable to the firm that to
decrease the direct material cost by purchasing raw material from the other suppliers.
The firms should have proper check on the manufacturing process of the plant.
CONCLUSION
This project of Ratio analysis in the production concern is not merely a work of the project. But a
brief knowledge and experience of that how to analyze the financial performance of the firm.
The study undertaken has brought in to the light of the following conclusions. According to this
project I came to know that from the analysis of financial statements it is clear that SHSSK Ltd.
Have been incurring loss during the period of study. So the firm should focus on getting of
profits in the coming years by taking care internal as well as external factors. And with regard to
resources, the firm is take utilization of the assets properly. And also the firm has a maintained
low inventory.
Page 5
SL.NO
CONTENTS
PAGE
NO.
Page 6

1
PART I
INDUSTRY PROFILE
PART II
INTRODUCTION OF COMPANY
PART III
RESEARCH METHDOLOGY
OBJECTIVES OF THE STUDY

PART IV
RATIO ANALYSIS
FINANCIAL STATEMENT.
PART V
DATA ANALYSIS AND INTERPRETATION

PART VI
FINDINGS
SUGGESTIONS &
CONCLUSIONS
PART VII
. BIBILOGROPHY.
INTRODUCTION OF CONCEPTS
India is developing country in which more than 70% population is dependent upon
agriculture. In India Wheat, Cotton, Rice, Tobacco & Sugarcane are the some main crops. But
Page 7

the sugar cane is one of the important agricultural productions. And or by using the sugar We
produce sugar. Which is very important item of daily meals? Sugar is mainly used for tea, Coffee
and so many food products. It is also important raw material for bakery industry. The Sugar is
produced by so many co-operative and also private factories. The first scheme of sugar factory in
co-operative society has been introduced byMr.G.N. Sahastrabudhe & R.N. Hiremath in 1912.
But first Co-operative sugar factory started in 1918, by the Lallubhai Samaldas & G. N.
Sahastrabudhe in baramati. But due to Lake Of sugar Cane the factory stopped its working in
1924.
After that, in co-operative field, under the guidance of Vilnalirao patil, Dr Dhanjay
Gudgil Tried to start second co-operative sugar factory. He was started pravar -co-operative
Sugar factory in 1950 at loni this factory got success in market therefore some other sugar
Factories were going to start in Pune, after, the late 1970 there was a rapid increase in trend of
co-operative sugar factory.
INDUSTRIAL PROFILE
ABOUT THE SUGAR INDUSTRY IN INDIA:India has been known as the original home of sugar & sugar cane.indian Mythology
supports the above facts as it contains legends showing the origin of sugarcane
India is the
second largest producer of sugarcane next to BRAZIL. Presently above 4 million Hectors land is
under the sugarcane with an average yield of 70 tonnes per hectors. India is the largest single
producer of the sugar including traditional trade Sugar sweeteners, Khandsari & gur equivalent
to 26 million tonnes row value followed by Brazil in second place at 18.5 million tonnes. Even
in respect of white crystal sugar. India has ranked No.1 position in 7 out of last 10 years
HISTORY OF SUGAR INDUSTRY IN INDIA:-
Page 8

Traditional sweeteners gur & khandsary are consumed mostly by the rural population in
India. In the early 1930s nearly 2/3rd of sugarcanes production of alternates sweeteners gur &
khandsari. With better standard of living & higher incomes, the sweetener demand has shifted to
white sugar. Currently about 1/3rd sugarcane production is utilized by the Gur & Khandsari
sectors. Being in the small scale sector, these two sectors are completely free form controls &
taxes which are applicable to sugar sector.
The advent of the modern sugar processing industry in India began 1930 with grant of
tariff to the Indian sugar industry, The number of sugar mills increased from 30 in the year
1930-31 to 135 in the year 1935-36 &the production during the same period in created form 1.20
lakh tonnes to 9.34 lakh tonnes under the dynamic leadership of private sector.
The area of planning for industrial development began in 1950-51 & Government laid
down targets of sugar production & consumption, licensed & installed capacity, Sugarcane
production during each of Five year plan periods.
MANUFACTURING PROCESS & TECHNOLOGY:Sugar (sucrose) is a carbohydrate that occurs naturally in every fruit & vegetable is a major
product of pirotosynthesis, the process by which plants transforms the suns energy into food.
Sugar occurs in greatest quantities in sugarcane & sugar beets form which it is separated for
commercial use. The natural sugar stored in the cal stalk or beet root is separated from rest of the
plant material through a process known as refining
For sugarcane the process of retaining is carried out in following steps.
Pressing of sugarcane to extract the juice.
Boiling the juice unit it begins to thicken & sugar begin to crystallize.
Spinning the crystal in a centrifuge to remote the syrup, producing raw sugar.
Shipping the raw sugar to a refinery where it is wasted & filtered to remove Remaining
non sugar ingredient & colour.
Crystallizing, drying & packing the refined sugar.
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Beet sugar processing is the similar but it is alone in one continuous process without the raw sugar
stage. The sugar beets are washed sliced & soaked in hot water to separate the sugar containing juice
from the beet fiber. The sugar laden juice is the purified, filtered, For the sugar industry, capacity
utilization is conceptually different from the applicable to industries in general. In depends on

three crucial factors the actual numbers of ton sugarcane crushed in a day, the recovery rate
which generally depends on the quality of the cane & actual length of the crushing season.
Since cane is not transported to any great extent, the quality of the cane that a factory
receiver on its location & it outside its control. The length of the crushing season also depends
upon location with the maximum being in south Indian. sugarcane in India is used to make
either sugar, Khandsari or gur . However sugar products produced are divided into four basic
categories; Granulated, brown, liquid, sugar, and invert sugar.
PFROFILE OF THE COMPANY

Name of the factory
Shree Halasidnath Sahakari

Sakhar Karkhana LTD.
Address
Shree Halasidnath Sahakari

Sakhar Karkhana LTD.
Shankaranand nagar, Nipani.
TAL:-Chikodi. DIST:-Belgaum
PIN:-591237.
Year of Establishment
APRIL-1981.
1st Crushing Season
JANUARY-1983.
Register Number
DSK/REG-2/80-81.
Register Date
22-04-1981.
Phone Number
STD CODE (08338)

Chairman-220355
Office-222090
FAX Number
(08338)221315
Page 10
BACKGROUND & INCEPTION COMPANY.

Halsidhanath sahakari sakhar karkhana is placed 3 km away from Nipani in north side
at Shankaranandnagar , Tal:chikodi Dist: belgaum. Halsidhanath sahakari sakhar karkhana
is
the support pillar to the sugar cane producer farmes in the Nipani area. The karkhana wa started
by the some social workers in nipani area with a view to provide an good option to the former
in this area like sugarcane.
Mr. Baburao Budihalkar was the chief promoter in this project But, some other
The
foundation of karkhana building was held on 9-11-1982. The chief guest for this function was
Shri.Rajiv Gandhi who was the prime minister of India in that time. The Karkha started its
regular working on 30-9-1989. The delay was due to the changing political conditions in
Karnataka state.
The Karkhana developed a very good rapport with the farmers in this area and worked for their
progress
So,
the
karkhana
is
operating
in
entire
Chikkodi
taluka
andAlur,Bhairapur,Kanagala,Shippur,Karajaga,Rashing,Bad,Nangnur,Mattiwade,Hitani,Shekinh
asur,Konankeri, sadlaga thirteen(13) vill ges in Hukkeri taluka. Only Belgum in Belgum laluka
and Soudatti in Raibag Taluka all these part of Belgaum district in the Karnataka state. And
Arjuni, Chikhali, Gorambe, Shendur, Shankarwadi, Vandur all these eight (8) villages in Kagal
taluka is a part of Kholapur district in the Maharashtra state Thus, it will comprise of part of
Belgaum district and part of Kolhapur district, from two adjoining states.
OBJECTIVES AND FUNCTIONS: The principle object of the karkhana will be to promote the interests of all its members to
attain their social and economic betterment through self help and mutual aid in accordance
with the co-operative principles.
To prepare and implement the programme for harvesting and transportation of sugarcane
on behalf of the members from their field to factory in supply of sugarcane to factory for
crushing and to avoid probable losses of sugar in cane.
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To manufacture sugar, Jaggery and its allied by products from the sugarcane supplied by
the members and other and to sale these products at good price.
To install the factory for manufacture sugar on large scale basis and to take all necessary
steps to run it efficiently
To install the necessary machinery required for producing of bagasse, molasses, Press-mud
etc.
To ruchase the means of transportation and to run, to give and to take on hire basis.
To install research centers and to assist the existing research institutions and to undertake
research work helpful to sugarcane, sugar and allied industry.
NATURE OF THE BUSINESS CARRIED

S.H.S.S.K.LTD. is co-operative sector firm. It is a manufacturing company It produces
sugar, molasses And supplies sugar tp Nipani, Chikodi Taluka, Raibag Taluka, saudatti, and
Hukkeri Taluka. It operates within Karnataka as well as outside Karnataka.
Nature of business carried Shri Halasidhanath sahakari Sakhar Karakhana
Ltd is
involved in the activity of manufacturing white crystal sugar products which is the main product.
The process of production involves conversion of.
Raw sugar cane to sugar,
Raw sugar to refined sugar, Molasses, Bagasses are its by products.
MOLASSES:
Molasses
is
mainly
used
for
the
manufacture
of
ethyl
alcohol(ethanol)yeast and cattle feed.

BAGASSES: Bagasses is usually as a combustible in the furnaces to produce steam
which in turned is used to generate the power, it is also used as raw materials for the
production of paper and as feedstock for the cattle.
Page 12
PRODUCT PROFILE
Shri Halasidhanath Sahakar Sakhari Karakhana Ltd established for the purpose of sugar while
producing the sugar some raw juice and raw bagasses become molasses and some other byproduct
The Shri Halasidhanath Sahakar Sakhari Karakhana Ltd is producing following product
1) Sugar
A) Medium-30
B) Small-30
C) Levy
2) Molasses
3) Compost
4) Bagasse
AREA OF OPREATION
The Shri Halasidhanath Sahakar Sakhari Karakhana Ltd has wide range of area of
operation for continuous and regular flow of sugar cane from different authorized area within the
80 kms. Around the spot of plant includes some region of two states from Maharashtra and
Karanataka under.
SR.NO
NAME
OF DISTRICT
NUMBER
TALUKA
1
Chikodi
Belgaum
43
Hukkeri
Belgaum
05
Raibag
Belgaum
04
Belgaum
Belgaum
01
Jamkhandi
Baglkot
01
Page 13

6
Athani
Belgaum
05
Kagal
Kholapur
09
TOTAL
68
OWNERSHIP PATTERN
Shri Halasidhanath Sahakar Sakhari Karakhana Ltd established in the year 1981 at
Hala sugar gram of chikodi Taluka. It was resolved to collect the share of established this sugar
factory in co-operative basis. Let the late Baburao B patil Budhialkar and other social workers
and leader working in co-operative sector also come forward to assist team in the starting this
factory. It is joint venture with share capital of Rs. 104940000 contributed by
18990 share
holders. The company was established in the year April 1981 & started the crushing in January
1983. The company is registered under the provision of companies Act-1956.
THERE IS TOTALLY 15 BODS.
Grower member will elect 12 BODS
1 Director will be elected by the co-operative.
1 Director nominated by the principal of financial agency.
Apart from this 14 director, managing director will be deputed by the government
PRESENT BOARD OF DIRECTORS ELECTED DIRECTOR
Shri. D.A.Chougale
Managing Director
Shri. Babasaheb .S. Saasne
Chairman
Shri .Ramagounda .R. Patil
Vice- Chairman
Shri .Ganesh .P. Hukkeri
Director
Shri .Appasaheb .S. Jolle
Director
Shri. Annasaheb .A. Patil
Director
Shri. Vishawanath .S. Kamate
Director
Page 14

Shri. Malagounda .P. Patil
Director
Shri. Anand .D. Ginde
Director
Shri. Chandrakant .S. Kotiwale
Director
Shri. Ramagounda .B. Patil
Director
Shri. Ramagounda .Y. Patil
Director
Shri. Kanthinath .G. Chougale
Director
MEMBERSHIP OF SHARE CAPITAL:The membership of Shri Halsidhanath Sahakari Karakana Ltd has been accepted
by different individuals and firms categorized into three classes as under
A Class involves the grower (farmers of agriculturist)
B Class involves the institute and non-grower

These are:1. Co-operative Societies
2. The belgaum District Central Co-operative Bank Ltd.
3. Karnataka State Agro Industrias Co-operation, Bangalor.
C Class involves the state government of karnakata.

The above said members born their share as share capital as
Sr
Member class
No of Shares
No
1
Share
capital
A Grower
15,924
613.52
3065
60.06
B co-operative society
2
Non-Grower
C Government of Karanataka
Total
1
18990
375.82
1049.40
Page 15
COMPETITORS INFORMATION
The main competitors are as follows
Doodh Ganga Shakari Sakhare Karkhane, Ltd
Crashing capacity-5500 TCD
Recovery -11.5%
Sugar production -10000 Qtls (per day).
Venkateshwer Sugar Ltd

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

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

CANE
PRIMARY
JUICE
LAST MILL
JUICE
BAGGASSE
BOILAR
MIXED JUICE
Heating 65 C->Lime +SO2 application

Heating 65 C->Lime +SO2 application
Elec Generation
CLEAR JUICE
SYRUP
A M/C
HEATING 100 C
HEATING 100 C
B M/C
Sugar
AH
AH
B SEED
100/50 kg Babasabpatilfreepptmba.com
Molasses
Molasses
C M/C
B HEAVY
MOLLASES
Page 18
Gradation
Weighment
Godowns
C SEED
C.L Molasses
F.M Class
APPLICATION OF 7S MODEL
OF MC, KENSEYS
Strategic planning refer to the management processes in organization which helps in

management to determine the future impact of change and take the currentdecisions to reach
designed future. The management literature is replace which instance of organization which
have fade stress in strategic planning but not have
been phenomenally successfully.
Consultants at the Mc.Kensys company very well known management consultancy

firm the created states develop the 7 s frame work towards the end of 7 s diagnose the causes
Page 19

of organizational problems and to formulate problems for important. The following is the 7s
frame related to the Mc. Kennys 7s frame work
According to waterman organizational change is not simply matter of
structure although structure is a significant variable in the management of change. Again it is not
a simple relationship between strategy and structure although strategy is also critical as put.
In their view effective organizational change may be understood to be a complex
relationship between strategy, structure, system and style, skill, staff, and super ordinate goals.
The framework suggests that there is a multiplicity of factors that influence an organization and
ability to change and its proper mode of change.
STRUCTURE OF ORGNIGIATION
SHARE HOLDER
BOARD OF DIRECTOR
CHAIRMAN
MANAGING DIRECTOR
Share
Section
Time and
labour
Purchase
Section
Security
Cane
Store Section
Sales
Section
Page 20
Engineering
Production
Security
Section
Cane
Development
Engineering
Section
Production
Section
SHARE SECTION
Head: - M.T. PATIL
According to by-law, the factories authorized share capital is Rs 20 crores. Atresent the
number of shareholders is 18990 and capital collected from all the shareholders.
i.e. Rs
10,49,40,000/The membership of Shri Halsidhanath Sahakari Karakana Ltd has been accepted by
different individuals and firms categorized into three classes as under
A Class involves the grower (farmers of agricukturist)

B Class involves the institute and non-grower
1. Co-operative Societies
2. The belgaum District Central Co-operative Bank Ltd.
3. Karnataka State Agro Industrias Co-operation, Bangalor.
C Class involves the state government of karnakata.

The above said members born their share as share capital as
Page 21

Sr
Member class
No of Shares
Share
No
capital
A Grower
15,924
613.52
3065
60.06
B co-operative society
2
Non-Grower
C Government of Karanataka
Total
375.82
18990
1049.40
TIME OFFICE LABOUR WELFARE DEPARTMENT
NAME OF
PERMA
SEATION
GOV
CONSTR
DAIL
CONTR
TOTA
THE
NENT
AL
ACT
CTUAL
WAG
DEPT
ES
Time
13
Security
13
22
Store
21
Civil
Environme
16
15
30
Office
nt
Administra
Page 22

HE
tive
General
10
13
Cane A/C
16
Vehicle
11
Medical
Agriculture 28
62
39
136
Engineer
90
70
41
207
99
38
147
198
252
23
157
638
A/C
AD
:S.G
.
MO
RE.
Manufactur
er
TOTAL
Page 23
Time office is one of the main part of the factory because in time office all records
regarding many types of departments and about the details of their employees are recorded so it
must require in each and every organization.
There is no special department like HRD or Personal management in the factory time
and labour welfare office is there, in this office there is labour welfare officer & head time
keeper, shift time keeper and wage clerk is there.
WELFARE FACILITY
To take care of all the workers, the organization will provide the some following facility
those are:A. Bonus is 08.33%based on the worker salary.
B. Quarter, hospital etc. facility and allowances
C. Canteen facility
D. Promotion facility
E. Permanent employees get one increment every year.
F. School facility to the worker children.
G. And medical facility are available if any accident occurs.
PURCHASE SECTION
Purchasing plays an important and significant role in processing industry. Purchasing is
tough task, which is to be performed very carefully. It functions on the
principal of Money
saved in purchased is money gained in sales. Profit can also be earned in purchasing process
by the purchase manager by his knowledge about the entire market.
Page 24
STORE DEPARMENT:THE WORKING FLOW CHART SHOWN BELOW
ASSISTANT STORE
KEEPER
CLERKS
PEON
In this factory the store department in charge will be Shri Kadam sir under
their the information will be here.
Main Points:
The store keeper will check the supplier quantity and afterwards send to the respective
section wise. For ex.:- Cement, Belt etc After this the material verification will be taken
by under chief enginee
The store keeper will entry the purchased material in a book in systematic manner.
The daily transactions will be held in the books of power house main panel board.
Page 25
Store department is just like a godown because in department all materials
which are
needed to the factory are stored.
The store house which contains the 21 heads. They are follows:
Heads :1. Oil and lubricants Ex :- Bearing oil, Greece, etc being purpose machinery.
2. Manufacturing goods Ex:- Chemical, sulphur etc uses of sugar processing.
3. Hardware Ex:- Nutbolt, chain, MS bar etc uses of machinery maintenance.
4. Welding materials Ex:- Welding rod, screen, black glass uses of welding purpose.
5. Drawing materials Ex:- Ammonia paper, Dressing paper, etc machinery
maintenance of engineering department.
6. Electrical goods Ex:- Pressure gauge, vacuum gauge, temperature gauge etc for
machinery maintenance.
7. Tools and tackles Ex:- Spaner, screw driver etc.
8. Transmission of goods Ex:- Bearing oil, oil seal, bearing glue
9. Iron and steel These are used for machinery maintenance of engineering department.
10. Building materials
Ex:- Cement, steel, stone crystal, sand etc uses of concrete
foundation for machinery.

11. Machinery and machine spare Ex:- Bearing, coupling, nutbolt etc.
12. Pipe and pipe fitting Ex:- pipe, bend, flang etc
13. Furniture and fixtures Ex:- Chairs, tables etc
14. Stationary Ex:- Log book , indent book, bucket etc.
15. Rubber goods
16. Library
Ex:- Bush, rubber belt, wheel, ordinary material.
Ex:- Books.
17. Vehcle spare

18. Medical Ex:- Druds, tablets, syringe, salines etc.
19. Printing
Ex:- Log, book, store recipt book etc..
20. Computer spare
Ex:- Ribbon, cartridge, pen drive etc.
Page 26

SALES SECTION
The main product of H.S.S.K.Ltd is sugar and by-Bagasses, Molasses, and press
mud.
These all are sold by calling tenders. Because the factory has no right to sale these products
directly in the open market. The Office Superintendent does this work and sales
officer with
the help of sugar directors Bangalore Central Govt. fixes the selling quantity.
There are two types of sales:A. Free sale--------- 90% of the produced sugar.
B. Levy sale--------10% of the produced sugar.
The factories by-products like,
A. Bagasses-------used in paper industry.
B. Molasses-------used in distilleries.
C. Press-Mud-----used in fertilizer.
SECURITY SECTION
There are 22 security guards and their function are,
1) Checking in-out persons and vehicles.
2) Protecting and securing proper and best use of assets of the factory.
3) Maintaining the below mentioned registers,
A. Attendance registers.
B. Visitors register.
C. Vehicle register.
D. Workers get pass
E. Bagasse, Molasses, Press-Mud get pass.
Page 27
Cane Development Section

Department-Structure
Chief of C.D.O
C.D.O
For Manager
Assistants
AssistantC.D.O
Workers
Cane-Inspector
Field-Offices
The duty of C.D.O (Cane Development Officer) is to develop the growth of sugarcane
by providing training and seeds to the farmers.
Cane development process: Providing training to the farmers.
Page 28

Providing seeds on loan basis.
Seeds are developed in the firm and distributed to farmers.
Early detection and pests and crop decreases and providing solution
Cane-Verities: Karnataka Hybrid Seeds , Coimbatore Cadlar.
ENGINEERING-DEPARTMENT
HEAD:-M Umapati
It is very important department to any factory, because engineer only have capacity to
run the production smoothly. In this factory this section has217 employee The main functions
of this section as follows,
1. To take of all the divisions like boiler, mill, electricity etc.
2. To ensure that all machineries are in good condition.
3. They inform board of management about scares materials and make them to
purchase that material.
4. The repair the broken down machines and make them to work properly.
Department-Structure
Assistant
Engineer
Supervisor
Electrical
Environmental
Engineer
Supervisor
Engineer
Supervisor
Work-Shop
Civil
Engineer
Engineer
Supervisor
Supervisor
Page 29

Worker
Worker
Worker
Worker
worker
During off season their functions are,

1. Maintenance of all the machineries currently.
2. Overhauling of the machineries.
3.
Machinery erection.
PRODUCTION DEPARTMENT
The Chief Engineer, chief chemist and Civil engineer from the structure of the production
Page 30

The chief engineers work is to technical and mechanical works and
improve them to
increase the production capacity.

The chief chemist work is to instruct how where & when to use chemical in the
production process.
The civil engineers work is to plan where to situate the machineries and also they advise
useful suggestions to make the production very easy and smooth.
COMPARATIVE STUDY OF PRODUCTION OF SUGAR

Sr.
YEAR
SHARE
SUGARCANE
SUGAR
RECOVERY
CAPITAL CRUSHING
PRODUCTION
RATE
A/C
(In qtl)
No
(In MT)
2004-05
837.13
141430.852
151480
10.71
2005-06
972.40
210556.428
239950
11.40
2006-07
241130.000
275240
11.41
113345.000
132920
11.82
1049.40
4
2007-08
1125.40
Cane Yard:- In this collect sugarcane from the farmers.

Cane weight:- In this they measure sugarcane including vehicle after unloading the cane.
they measure vehicle weight and they deduct that weight in the total weight. Thus they
get the actual weight of the cane. They prepare 3 weight receipts with the help of
computers, one goes to cane a/c, another goes to farmers and third one goes to transfot
office.
Page 31

Cane Carrier:- The unloaded cane is put down in carrier and carrier is driven by the
motor It is concerned to cane cutter.
Cane cutter:- there are two types cane cutter,
1) 1st cutter---In this cane cuts into 12 to 20 inches.
2) 2nd cutter---In this cane cuts into 12 to 20 inches.
After cutting cane is forwarded in fibriser. The fidrised cane is taken into mill section.
Mill Section: - In this section, the cane is squeezed. Whatever the quantity of juice
quizzed in the mill is pumped into clarification house. At this time they get the byproduct called bagasse.
Dorr:- The juice has come byproduct like press mud and bagasse before it is taken
stored in the Dorr. After storing in the Dorr these are separated and move down ward.
Evaporators:- After classification of the juice stored in Dorr. Then it is taken in to
Evaporators to evaporate that the water evaporation juice is taken into pan section.
Pan Section:- In this section again syrup (juice) is boiled or heated by the steam. In this
section they remove water, which is mixed in the syrup. After that make crystals.
Centrifugals:- This is last process in producing sugar in this section factory gets a
main by-product molasses and stores it in storage tank
They produce mainly 3 types of sugar,
1) L30: This is big crystal.
2) L30: This is medium crystal.
3) L20: This is small crystal.
GODOWN
After packing the sugar in the gunny, they are stored in the godown. In the godown they
maintain register consisting the records of stock, dispatch and closing balance.Factory has 4
large God owns and their capacity is given below,
STORE HOUSE
CSPSCITY (In qtl bags)
1lakhs
70000
Page 32
SKILL
Skill is the distinctive capabilities or competence of the organization
as a whole,
Skills developed are,

Product quality awareness.
Time management.
Result orientation.
Dedication.
This type of training also known as job instruction training is the most commonly used
method. Under this method, the individual is placed on a regular job though the skill necessary to
perform that job. The trainee learns under the supervision of a qualified worker of instructor. Onthe-job training has the advantage of giving firsthand knowledge and experience under the actual
working condition. While the trainee learns how to perform job, he is also a regular worker
rendering the services for which he paid. The problem of transfer of trainee is also minimized
as the person learns on-the job training methods includes job rotations, coaching job instruction
or training through step-by-step and committee assignment.
STYLE
Style includes two things, one management style and organizational culture.
Management style the way in which the managerial personnel behave and collectively spend
their time to achieve organizational goals, it consists the way of lending. motivating and the style
of leadership in the management. Here they usually use authoritative style means top to down
decision making parameter pertaining to day-to-day operation but they allow subordinates to
participate in the decisions affecting their interest and ask their suggestions for their decisions.
This makes organization more effective.
SRTATEGY
Page 33

Strategy means the actions which a company plans in to or anticipates of changes in its
external environment. In other words it is the determination of basis long term objectives or
courses of action and allocation of resources to achieve the organizational goals. They are as
follows,
Waste Elimination S.H.S.S.K. Ltd. Produces molasses and sell it to liquor
industries. And
it uses biogases boilers in order to generate energy for factory during crushing process.
Cost Reduction: They are reducing the intake of employees and reducing the number of
employees in order to reduce cost. They are not depending on K.P.T.C.L. for power while
crushing process is carrying on. They produce energy by boilers.
SYSTEM
A system includes formal and informal procedures that support the strategy and
structure. In other words, it is the processes and flows that shown how an company gets its dayto-day things done. This includes the procedures and the routines that will characterized how
important work to be done. i.e. financial system, hiring, promotion and performance appraisal
system and information system etc.
PRODUCTION PROCESS: Pressing of sugarcane to extract the juice.

Boiling the juice until it begins to thicken and sugar begins to crystallizes.
Spinning the crystals in a centrifuge to remove the syrup, producing raw sugar.
Shipping the raw sugar to a refinery where it is washed and filtered to remove remaining
non-sugar ingredients and color crystallizing, and drying packing the refined sugar.
INVENTORY CONTROL SYSTEM
Here in stored department the inventory control used FIFO. Here the method FIFO is
appropriate because the sugarcane is not a durable commodity it is better to crush the sugarcane
freshly. It is not stored for a long time because it turned in too dry sooner.
Page 34
STAFF
Staffs refer to the people in the enterprise and their socialization into the socialiseational
culture. Productive high performing employees are the companies
most valuable assets. The company follows a progressive policy taking keen interest in its
personnel and well beings and progress, which builds a strong sense of belongingness
Technical Department:A. Machine shop and maintenance quality assurance.
B. Laboratory
C. Tool room
D. Manufacturing engineering departments
E. Production planning and control
F. Research and development
Non-Technical Department:A. Administration
B. Clerical
DUTIES AND RESPONSIBILITIES:Technical Staff: Operators/Technicians: Carry out the work as per the instruction and job allocation.
In process inspection wherever applicable.
Maintenance in charge:1. Planning of preventing maintenance.
2. Attending breaks down maintenance.
3. Taking corrective action for reduce break down.
4. Planning spares and raising purchase intend.
Page 35

5. Maintaining the quality record.
SHARED VALUE
There are values shares by the members of the organization. It is the super ordinate goal
that is centrally responsible for providing a core mission to the organization Used as an umbrella,
which embraces all the other managerial activities. In short it says what does the organization
stands for and what is believes in. A devoted and sincere contribution to the mankind through the
various business activities of the company and compromise to the quality.
1. Continues growth is the main force behind the achievement of S.H.S.S.K ltd.
2.
Customer satisfaction through quality services.
3. Quick decision and execution with speed.
SWOT ANNALYSIS OF THE COMPANY
Page 36
STRENGHTS
Produces good quality of sugar.
Its near the river of the Vedganga so there is availability of the sufficient water.
SHSSK is not dependent of KPTCL for supply of power while production is carrying on
the generator through rower.
WEAKNESS: Since it is agro based industry monsoon effects its production.

Lack of good administration.
Lack of infrastructure.
Backward technology and complexity
OPPORTUNITIES: Possibility of willing co-operation by bank.

Arrangement for KPTCL grid.
THREATS:Babasabpatilfreepptmba.com
Page 37
Competition from the domestic player.
Due to unfavorable Govt. Polices, factory has to sell sugar below its production cost.
Page 38
RESEARCH ON
FINANCIAL
ANALYSI
.
NEED FOR THE STUDY
The study has been conducted for gaining practical knowledge about Ratio analysis of Shri
Halasidhnath Sahakari Sakhar Karkhana. Ltd.
The study is undertaken as a part of the MBA curriculum from 1st July 2010 to 20th August
2010 in the form of summer in plant training for the fulfillment of the requirement of MBA
degree.
TITLE OF THE PROJECT
Page 39

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

To find activity turnover
SCOPE OF THE STUDY

The scope of the study is identified after and during the study is conducted. The main scope
of the study was to put into practical the theoretical aspect of the study into real life work
experience. The study of
Ratio analysis further the study is based on last 5 years Annual
Reports Shri Halasidhnath Sahakari Sakhar Karkhana. Ltd.

LIMITATIONS OF THE STUDY
The study duration (summer in plant) is short.
The analysis is limited to just five years of data study (from year 2005 to year 2009) for
financial analysis.
Limited interaction with the concerned heads due to their busy schedule.
METHDOLOGY
In preparing of this project the information collected from the following sources.
Primary data:
The Primary data has been collected from Personal Interaction with Finance manager Mr.C .B
Karabe and other staff members.
Secondary data:
Page 40

The major source of data for this project was collected through
Balance sheet of SSHSKL
Profit and loss account of 5 year period from 2005-2009
SAMPLING DESIGN
Sampling unit
: Financial Statements.
Sampling Size
: Last five years financial statements.
Tools Used: MS-Excel has been used for calculations.
THEORETICAL FRAME WORK

INTRODCTION:Finance is life blood of the business. The financial management is the study about the
process of procuring and judicious use of financial resources is a view to maximize the value of
the firm. There by the value of the owners i.e. the example of equity share holders in a company
is maximized. The traditional view of financial management looks into the following function
that a finance manager of a business firm will perform.
Page 41

1. Arrangement of short-term and long-term funds from the financial institutions.
2. Mobilization of funds through financial instruments like equity shares, bond Preference
shares, debentures etc.
3. Orientation of finance with the accounting function and compliance of legal provisions
relating to funds procurement, use and distribution. With increase in complexity of modern
business situation, the role of the financial manager is not just confirmed to procurement of
funds, but his area of functioning is extended to judicious and efficient use of funds
available to the firm, keeping in view the objectives of the firm and expectations of
providers of funds.
DIFINATION:Financial Management has been defined differently by different scholars.
1) Howard and Upton:-
Financial Management is the application of the planning
and control function to the finance functions

2) Bringham:- Financial Management is an area of financial decision making
harmonizing, individual motives and enterprise goals
MEANING OF RATIOS
Financial Statement contains a wealth of information which, if properly analyzed and
interpreted, can provide valuable insights into a firms performance and position. Analysis Soft
financial statements is of interest to (short terms well as long term) investors, security analysts,
managers, and others financial statement analysis may be done for a variety of purpose, which
may range from a simple analysis of the short -term liquidity position of the firm to a
comprehensive assessment of the strengths and weaknesses of the firm in various areas.
Page 42

The principal tool of financial statement analysis is financial ratio analysis. An absolute
figure does not convey much meaning. Ti, there for, become necessary to study a certain figure
in relation to some other relevant figure to arrive at certain conclusion e.g. If we give the figure
of only gross profit earned by certain firm, we cannot say
whether the gross profit is heavy, reasonable or sufficient for this purpose we must take
into consideration the figure of sales. Thus, the gross profit to is required to be studied
in
relation to the sales to decide the percentage of gross profit to sale on the basis of percentage we
can conclude whether the gross profit earned is reasonable or otherwise. Thus the relationship
between the two figures expressed mathematically is called a ratio.
OBJECTIVES OF RATIO ANALYSIS: The study of financial statement of any corporate will help in knowing its present and future
earning capacity.
The study of financial resources can help in knowing whether a company can pay its longterm or short-term liabilities.
Its very use full to know how much working capital is employed in business and same
effectively used.
Its use full to measure earning capacity and its comparison to other competitive units.
Help full to known marginal efficiency.
Use full to future planning.
INTERPRETATION OF RATIOS
The benefit of the ratio analysis depends to great extent upon their correct interpretation.
Interpretation requires considerable ability on the part of the analyst. He has to decide whether
the relationship disclosed by the ratio is satisfactory or not. He has to base his decision on
experience, or on comparison may be interpreted in any one of the following ways.
1) BASED ON SINGLE RATIO AND GROUP RATIOS:-
Page 43

The interpretation may be based on individual ratio e.g. If current ratio persistently falls and
goes below one, it can be interpreted as an indication of short-term insolvency. However, one
cannot get the position corrected by studying individual ratio in isolation. It is therefore a
common practice to study and interpret a set of several related ratios e.g. for short-term solvency
both the ratios, whose significance is not fully understood , are made more meaningful by the
computing and study of additional relevant ratios.
2) COMPARISON OVERTIME:Ratio analysis is primarily useful for studying trends, indicating rise, decline or stability
over a period of time. For this purpose, ratios by themselves are of no particular significance. For
reveling such trends, the same ratio or a group of ratios is studied over period of years. Thus the
movements in the ratios, rather than the ratios themselves, are important.
3) INTER-FIRM COMPARISON:Ratios of undertakings are compared with the respective ratios of other firm in the same
industry and with the industry on average An immense benefit is likely to from such comparison
as the concerns similarly situated are as a matter of fact , to sail in the same boat.
PROCEDURE OF ANALYSIS:First or all the depth, object and extent of analysis must be determined, so that necessary
information can collect. The analysis is required to go through various financial statements of the
business and collect other required information from the management. The analysis is required to
rearrange the data given in the financial statements in a manner, which will help the to analysis
the statements easily and conveniently. After analyzing the statement the interpretation is made
and the conclusions are drawn.
TYPES OF RATIOS:- Classification of ratios is done in two ways.

A. According to nature of items.
B. According to purpose of the function.
A) According to nature of items:-
Page 44

1) Balance Sheet Ratios:- The ratios exhibiting the relationship between two item or
group of items in the balance sheet e.r. Relation between current Assets and Current
Liabilities.
2) Revenue Statement or Profit and loss account ratios:- The ratios disclosing the
relationship between two items or group of items in the profit and loss account it.
Relationship between Sales and Gross profit.
3) Inter Statement or Composite Ratio:- The ratios indicating the relationship of certain
items in the balance sheet with some figures in the revenue statements i.e. Net Profit
and Capital or Sales and Fixed Assets.
B) Functional Classification:-
1)
Liquidity Ratios; - These ratios measure the liquid position of the enterprise i.e.
whether the current assets to pay current liabilities as and when they mature. Thus,
these ratios indicates short-term solvency of the business
2)
Leverage Ratios; - They indicate the relative use of debt and equity in financing
assets of the firm. The extent, to which the practice of trading on equity can be
carried on safety, can be known through these ratios.
3)
Activity Ratios:- These ratios measure the efficiency in the employment of funds in
the business operations. They respect the companys level of activities in relation to
its turnover.
4)
Profitability Ratios:-
There ratios measure overall performance. And profits
earning Capacity of the business. They reveal the effect of the business transaction
on the profit position of the enterprise.
PROFITABILITY RATIO:1) Gross Profit Ratio:- This ratio reflects the efficiency with which the management
produces each unit product. The ratio is calculated as under:
Gross Profit Ratio=
Profit
Page 45

Sales
It is the ratio which is most commonly employed by accountants for comparing the
earnings of business for one period with those of other or earnings of one concern with of
another in the same industry. It indicates the degree to which selling prices goods per unit may
decline without in losses on operations for the firm.
2) Net Profit Ratio:-Net Profit is that proportion of net sales which remains to the owners
or the shareholders after all costs. Charges and expenses including income-tax have been
deducted. It is calculated as under.
Net profit (after tax)

Sales
It differs from the ratio of operating profit is to net sales in as much as it is calculated after
adding non-operating incomes, like interest, dividends on investment etc. To operating profit and
deducting non-operating expenses such as loss on sale of old assets, provisions for legal damages
etc. from such profits.
LIQUIDITY/SOLVENCY RATIO:1) Current Ratio or working capital Ratio or 2:1 Ratio:- It is a ratio of current assets to
current liabilities. The ratio is calculated by dividing the current assets by the current
liabilities.
Page 46

Current Assets
Current liabilities
Certain authorities have suggested that in order to ensure solvency of a concern. Current assets
should be at least twice the liabilities and therefore. his ration is known as 2:1 ratio.
2) Liquid Ratio or Acid Test Ratio or Quick Ratio:- The current Ratio fails to serve as a
realistic guide to the solvency of the concern, as the major portion on the current assets may
comprise of such assets which cannot be converted immediately cash (e.g. stock) to meet
the immediate liabilities. It this ratio is 1:1, it is considered that all claims will be met when
they arise.
Quick / Liquid Assets
Current liabilities
ACTIVITY RATIO
1) Inventory Turnover Ratio:- The term Inventory Turnover refers to the number of times
in a year inventories are sold and replaced.
Inventory Turnover Ratio:-
Cost of Goods Sold or sales

Average Inventory at cost
It is Indication of the velocity with which merchandize moves through the business. This is a
test of inventory to discover possible trouble in the form of over stocking or over valuation. It
assists the financial manager in evaluating inventory policy.
2) Operating Ratio:- The ratio shows the percentage of net sales i.e. observed by the cost of
goods sold operating. Naturally higher the ratio, the less favorable it is. Because it would
leave a small margin to meet interest, dividends and other corporate needs.
Operating Ratio
Cost Goods Sold + Operating Expenses

Net Sales
Page 47

3) Fixed Assets Turnover Ratio:-The ratio measures the efficiency in the utilization of fixed
assets. This ratio indicates whether the fixed assets are being fully unitized A high ratio is an
index of the vestment in fixed asset. Normally standard ratio taken as five times.
Fixed Assets Turnover Ratio
Sales
Net Fixed Assets
4) Total Assets Turnover Ratio:- The ratio is arrived at by dividing sales by the total assets
Sales
Total Assets
The ratio indicates the sales generated per rupee of investment in total assets. Thus, it aims to
point out the efficiency or inefficiency in the used of total assets or capital employed. Increase in
ratio indicates that more revenue is generated per rupee of total investment in assets
LEAVERGE RATIO:1) Debt Equity Ratio:- It measure of the relative claims of creditors and owners against the
assets of the firm.
Total Debts
Net worth owners Equity
The term total debt includes all debts i. e. long term, short term mortgages. Bills, debentures
etc. whereas the term net worth means equity share capital, reserves and surplus i.e. proprietors.
Funds or equity 1:1 ratio is acceptable.
2) Fixed Assets to worth Ratio:Fixed assets
Net worth
Page 48

It indicates that the company has used short term funds for acquiring fixed assets, which
policy is not desirable. To the extent fixed assets exceed the amount of capital and reserves, the
working capital are depleted. When the amount of proprietors fund exceeds the value of fixed
Assets i.e. when the percentage is less than 100, a part of the working capital is supplies by the
shareholders. Provided that there are no other non-current assets.
PROVISIONAL BALANCE SHEET AS AT 31st MARCH, 2005
LIABILITY
AMOUNT
ASSETS
AMOUNT
Page 49

SOURCES OF FUNDS
Share capital
Reserves and surplus
FIXED ASSETS
88846018.59 Gross block
350064970.09
274191573.34 Less: Depreciation

Net Block
CURRENT LIABILITIES
Working capital
350064970.09
Investment
1.
CURRENT ASSETS
2.
6975000.00
279908387.08 Inventories
198297089.91
Statuary deposits
4508406.18 Cash in hand
374639.72
Deposit
7217637.93 Cash at bank
2879292.96
Suspense
14373128.04 Advances
Sundries
84028.25 Other assets
Other Sundries
loan funds
Cane bills and other
payables
TOTAL
60423970.91
46346877.80
3239794.41 Accumulated loss
152726340.15
118309456.47
26653751.52
818088181.81
TOTAL
818088181.81
TRADING AND PROFIT & LOSS ACCOUNT AS ON 31-3-2005
Expenditure
AMOUNT
Incomes
AMOUNT
Page 50

Opening stock
Cost of production
Gross profit
201471850.00 Sugar sales
270160956.16
Other sales
30841547.90
212750813.48 Closing stock
183235461.00
70015301.58
Total
484237965.06 Total
Establishment charges
484237965.06
7247138.80 By gross profit
70015301.58
Travelling expenses
661534.60 Other income
2071499.26
Exp .on vehicle
762054.92
Printing and stationery
575316.06
Meetings &AGM Expenses
299139.58
Interest
charges
&Insurance
35111966.31
Govt Tax & Other
121490.67
Social Expenses
198765.78
Rent rates & Taxes
1257774.92
Other
Expenses
1001874.80
management
Bonus for the year 2005
1600000.00
Depreciation
8680733.00
Net profit
14569011.39
TOTAL
72086800.84 TOTAL
72086800.84

LIABILITY
AMOUNT
ASSETS
AMOUNT
Page 51

SOURCES OF FUNDS
Share capital
FIXED ASSETS
LOAN FUNDS
Net Block
Loans
Investment
CURRENT LIABILITIES
CURRENT ASSETS
Working capital
Statuary deposits
Deposit
Suspense
Sundries
Other Sundries
Cane bills and other
payables
TOTAL
361712835.66
361712835.66
1. -
587259.00
303308585.53
717669.52
16549209.47
49015066.50
120071494.29 Other assets
37433717.42
161706973.23
65201661.09
931031316.33
TOTAL
931031316.33
Page 52

Expenditure
Opening stock
Cost of production
Gross profit
Total
AMOUNT
281761927.50
Other sales
205428665.25
589195771.75 Total
41317359.41
11971545.7
1547647.76
385579.30
29539180.87
Govt Tax & Other
573.00
Social Expenses
435704.22
1978687.76
Other management Exp
605143.20
1700000.00
Bonus & Incentive paid- 05
1618790.00
Depreciation
2053862.00
Net profit
4053781.26
TOTAL
589195771.75
683769.76
Rent rates & Taxes
286890978.00
41317359.41
Interest &Insurance
charges
AMOUNT
Travelling expenses
Exp .on vehicle
Incomes
53288905.10 TOTAL
53288905.10
Page 53

LIABILITY
AMOUNT
SOURCES OF FUNDS
ASSETS
FIXED ASSETS
Share capital
LOAN FUNDS
Net Block
Loans
Investment
CURRENT LIABILITIES
CURRENT ASSETS
Working capital
363487965.66
--------------363487965.66
587259.00
378981986.28
327612.88
3238097.38
Statuary deposits
Other funds
AMOUNT
Deposit payable
8619351.89 Advances
47810043.43
Advance from debtors
6317241.93 Receivables
45279858.83
Provisions for expenses

Other
Creditor
TOTAL
liability
160527056.44
2037609.50
101250338.13
1000239879.90
TOTAL
1000239879.90
Page 54

Expenditure
Opening stock
Cost of production
Gross profit
Total
AMOUNT
Incomes
AMOUNT
321102204.05
Other sales
16883368.02
362688371.00
37903469.81
700673937.07 Total
700673937.07
Administration Employee
cost
37903469.81
Administration Expenses
11835306.34
Financial Expenses
29337549.35 Other Misc income
Depreciation
2041283.00
Net profit
1179916.79
TOTAL
51140600.15 TOTAL
1401824.00
51140600.15
Page 55

LIABILITY
AMOUNT
SOURCES OF FUNDS
ASSETS
AMOUNT
FIXED ASSETS
Share capital
371470849.66
---------------------
LOAN FUNDS
Loans
Net Block
26729775.00
CURRENT LIABILITIES
INVESTMENT
371470849.66
1087259.00
CURRENT ASSETS
Working capital
277252952.20 Investment
Statuary deposits
343915871.14
Suspense
1446247.76
Deposit
5289323.68
Sundries
Other sundries
Cane bills and Other
payable
Creditor
TOTAL
120856075.80 Advances
61753564.01 other assets
73676864.17
Accumulated loss
1087259.00
44575300.80
50884269.05
158348240.34
------------------977017361.43
TOTAL
977017361.43
Page 56

Expenditure
Opening stock
Cost of production
Gross profit
Total
AMOUNT
334738255.94
Other sales
14808045.10
249243488.47 Work in progress

672923481.04 Total
1893561.00
321483619.00
672923481.04
60991621.57
10365431.00
1668460.99
834305.94
374096.00
Interest &Insurance
charges
AMOUNT
Travelling expenses
Exp .on vehicle
Incomes
42150121.77
Govt Tax & Other
239482.00
Social Expenses
233234.86
Rent rates & Taxes
1945779.45
3513408.60
---------------
Bonus & Incentive paid- 07
3873572.00
Depreciation
2158779.00
Net profit
2178816.10
Page 57

TOTAL
71357052.57 TOTAL
71357052.57

LIABILITY
AMOUNT
SOURCES OF FUNDS
ASSETS
FIXED ASSETS
Share capital
537014300.20
LOAN FUNDS
Loans
Statuary deposits
Suspense
Less: Depreciation
Net Block
85915406.30
CURRENT LIABILITIES
Working capital
AMOUNT
INVESTMENT
647506096.70
--------------------647506096.70
600259.00
CURRENT ASSETS
308720081.37
531803.69
61187786.16
Deposit
49701553.25
sundries
121366173.13 other assets
51695225.44
Other sundries
Cane bills and Other
payable
Creditor
TOTAL
156695096.46
32326689.23
------------------977017361.43
TOTAL
977017361.43
Page 58
Expenditure
Opening stock
Cost of production
Gross profit
Total
AMOUNT
389224030.42
Other sales
41319463.70
340402697.98 Work in progress

718194134.12 Total
----------287650640.00
718194134.12
54414256.14
24316580.24
1830501.57
672343.25
484440.00
Interest &Insurance
charges
AMOUNT
Travelling expenses
Exp .on vehicle
Incomes
43032479.08
Govt Tax & Other
1616986.78
Social Expenses
223744.90
Rent rates & Taxes
4227787.22
1367794.55
Bonus & Incentive 2008-09
4700000.00
Bonus & Incentive paid
5015552.80
Depreciation
298796.00
Page 59

Net profit
TOTAL
1653143.88
78730836,38 TOTAL
78730836,38
DATA ANALIYSIS
AND
INTERPRETATION
Page 60
1) PROFITABILITY RATIO:Gross Profit

Gross Profit Ratio =
X 100
Sales
YEAR
GROSS PROFIT
SALES
GROSS PROFIT
RATIO
23.26
2004-05
7,00,15,301.58
301002504.06
2005-06
41317359.41
302304793.75
2006-07
3,79,03,469.81
337985566.07
2007-08
6,09,91,621.57
349546301.04
2008-09
5,44,14,256.14
430543494.12
13.66
11.02
17.44
12.63
GROSS PROFIT RATIO

25
23.26
17.44
20
13.66
15
12.63
11.22
10
5
0
2004-05
2005-06
2006-07
2007-08
2008-09
INTERPRETATION:The Gross-Profit Margin ratio of SHSSKL has ups and down in these five years period.
The gross profit measures the relation between the sales and profits. The gross-profit ratio in the
Page 61

year 2004-05 is 23.26 and next year 2005-06 is 13.66 and in 2006-07 its 11.22 then in 2008its
become 17.44 and in 2008-09 it is 12.63.
ANALYSIS:- From the above calculation the gross profit margin ratio in 2004-05 it is high so it
good to the firm. As compare to other year its not up to mark able.
C) Net Profit Margin Ratio:Net Profit

Net Profit Ratio =
X 100
Sales
YEAR
NET PROFIT
SALES
GROSS-NET
RATIO
2004-05
14569011.39
301002504.06
4.84
2005-06
4053781.26
302304793.75
1.34
2006-07
1179916.79
337985566.07
0.34
2007-08
2178816.70
349546301.04
0.62
2008-09
1653143.88
430543494.12
0.38
NET PROFIT RATIO

6
5
4.84
4
3
2
1.34
0.34
0.62
0.38
0
2004-05
2005-06
2006-07
2007-08
2008-09
INTERPRETATION
Page 62

The net profit is the indicative of the managements ability to operate the business
with sufficient success. In the above bar diagram it shows that the net profit ratio of SHSSKL
has increased 4.84 in 2004-05 but it decreased in the next years 1.34 in 2004-05 and it again
decreased in 2006-07.then it increased 0.62 and it again decreased 0.38.in 2008-09.
ANALYSIS:- from the above diagram it shows that the firm has efficient utilization of assets
in 2004-05 compare to other years
LIQUIDITY RATIO
CURRENT RATIO:Current Ratio =
Current Assets
Current Liabilities
YEAR
Current Assets
308321871.3
Current Liabilities
454294589.7
RATIO
0.67
265422636.1
563620481.6
0.47
875637598.7
623087336.2
1.40
446111012.4
565628200.9
0.78
471836449.8
542837550.5
0.86
2004-05
2005-06
2006-07
2007-08
2008-09
CURRENT RATIO
1.4
1.5
0.78
0.67
0.86
0.47
0.5
0
2004-05
2005-06
2006-07
2007-08
2008-09
INTERPRETATION:-
Page 63

An ideal current ratio is 2: 1 Thus 2 is the considered as a safe margin from the
above diagram it determines that the firm has safe margin in1.4 2006-07 and in 2004-06 it has
0.67&0.47 moreover it has not safe margin 2007-09 e.i to 0.78& 0.86
ANALYSIS:-From the diagram it shows that the firm has safe margin in 2006-07. Compare to
other years it has not safety margin.
Liquidity Ratio
Liquidity Ratio =
Liquid Assets
Liquid Liabilities
Liquid Assets= Current Assets-Inventories

Liquid-Liabilities = Current Liabilities - Bank-overdraft
Years
Liquid assets
Liquid Liabilities
Ratio
2004-2005
110024781.8
454294589.7
0.24
2005-2006
37885949.4
563620481.6
0.067
2006-2007
496655612.5
623087336.2
0.79
2007-2008
102195141.3
565628200.9
0.18
2008-2009
163116368.5
542837550.5
0.30
Page 64
LIQUIDITY RATIO
1
0.79
0.8
0.6
0.4
0.3
0.24
0.2
0.18
0.067
0
2004-05
2005-06
2006-07
2007-08
2008-09
INTERPRETATION:From the above table it determines that the firm has 0.24 &0.067 in the year 2004-06
and it increased 0.79 in 2006-07 and it again decreased 0.18 in 2007-08 then again raised0.30 in
2008-09
ANALYSIS:- Usually, a high acid test ratio is an indication of that firms better liquidity
position. So the firm has better liquidity position in 2006-07.
ACTIVITY RATIO
INVENTORY TURN-OVER RATIO
Sales
Inventory Turn-Over ratio=
Average Inventory
Opening-Stock + Closing-Stock
Average Inventory =
2
Years
Average Inventory
2004-2005
192353685.5
Sales
301002504.06
I Turn-Over ratio
1.56
Page 65

2005-2006
234674943.5
302304793.75
1.28
2006-2007
324789674.5
337985566.07
1.04
2007-2008
342085995.0
349546301.04
1.02
2008-2009
305513910.0
430543494.12
1.40
INVENTORY TURNOVER RATIO

2
1.56
1.5
1.4
1.28
1.04
1.02
1
0.5
0
2004-05
2005-06
2006-07
2007-08
2008-09
INTERPRETATION: This means that the inventory in the first year has been sold1.56 very slow in 2004-05 And it
again increase in 2005-08 e.i 1.28, 1.04, 1.02.and in last year it again decreased 1.4 in 2008-09
ANALYSIS:- The inventory in the 2004-05 has been sell 1.56 and in the year 2008-09 it shows
that the firm has sufficient inventory of sugar.
FIXED ASSETS TURN-OVER RATIO

Sales
Page 66

Fixed assets turn-over ratio =
Fixed-Assets
YEARS
SALES
FIXED-ASSETS
FIXED ASSETS
TURN-OVER
RATIO
2004-05
301002504.06
350064970.91
0.85
2005-06
302304793.75
361712835.66
0.83
2006-07
337985566.07
363487965.66
0.92
2007-08
349546301.04
371470849.66
0.94
2008-09
430543494.12
647506096.70
0.66
FIXED ASSETS TURN OVER RATIO

1
0.85
0.83
0.92
0.94
0.8
0.66
0.6
0.4
0.2
0
2004-05
2005-06
2006-07
2007-08
2008-09
INTERPRETATION:The ratio indicates the extent to which the investment in fixed assets contributed towards
to sales. As the figure shows, in 2004-05 the fixed assets turnover ratio is 0.85 and it increase in
the next 3years continuously with 0.83, 0.92, 0.94. And it again decreases in 2008-09 e.i to 0.66.
ANALYSIS:- By analyzing this ratio it shows that the firms fixed assets utilized efficiently .
CURRENT ASSETS TURN-OVER RATIO

Sales
Page 67

Current assets turn-over ratio
=
Current Assets
YEARS
SALES
CURRENT
ASSETS
CURRENT ASSETS
TURN-OVER RATIO
2004-2005
301002504.06
308321871.3
0.97
2005-2006
302304793.75
265422636.1
1.13
2006-2007
337985566.07
875637598.7
0.38
2007-2008
349546301.04
446111012.4
0.78
2008-2009
430543494.12
471836449.8
0.91
CURRENT ASSET TURNOVER RATIO

1.13
1.2
1
0.97
0.91
0.78
0.8
0.6
0.38
0.4
0.2
0
2004-05
2005-06
2006-07
2007-08
2008-09
INTERPRETATION:In the following graph it is shown that there is increasing0.97, 1.13 in 2004-06 current
assets turnover ratio. And it falls0.38 in 2006-07 and it increase slightly0.78 to 0.91 in 2007-09.
ANALYSIS:- The current assets turnover ratio measures that how quickly the short term
obligations can be met. It shows that the current assets are promptly invested towards making sales.
Page 68

Operating-Efficiency Ratio:1) Direct Material cost to sales =
Direct Material cost *100

Net-sales
YEARS
Direct
Material
SALES
Percentage (%)
2004-2005
200389076.8
301002504.06
66.57
2005-2006
219224160.5
302304793.75
72.51
2006-2007
241453980.32
337985566.07
71.43
2007-2008
224546979.08
349546301.04
64.23
2008-2009
309403524.5
430543494.12
71.86
72.51
74
71.86
71.43
72
70
68
66.57
64.23
66
64
62
60
2004-05
2005-06
2006-07
2007-08
2008-09
INTERPRETATION:Direct Material cost to sales should be low enough to leave portion of sales to give fair return to
investors from the above table show that 66.57 & 64.23 in the year 2004-05 and 2007-08 it give
the fair to the investors where as72.51, 71.43 and 71.86. 2005-07and 2008-09 are not up to mark
able .
Page 69

ANALYSIS:- By analyzing the above ratios it clearly shows that, the companys profitability is
not satisfactory in the year of 2005-07&2008-09.campare to other years.
2) Direct Labour cost to sales = Direct Labour cost *100

Net-sales
YEARS
Direct Labour
SALES
Percentage (%)
2004-2005
14885365.90
301002504.06
4.94
2005-2006
16958271.40
302304793.75
5.60
2006-2007
27661900.24
337985566.07
8.18
2007-2008
34862365.60
349546301.04
9.97
2008-2009
35562670.05
430543494.12
8.25
Direct Labour cost to Sales

12.00%
9.97%
10.00%
8.25%
8.18%
8.00%
6.00%
4.94%
5.60%
4.00%
2.00%
0.00%
2004-05
2005-06
2006-07
2007-08
2008-09
INTERPRETATION:From the above table shows that the cost of direct labour of the firm in the year of 2004-05 is
4.94% where it compare to the next 3year it increase5.60, 8.18 & 9.97. Slithightlliy. And it again
Page 70

decreases in the year of 2008-09. It shows that the firm efficient utilized the labour in the year of
2004-05 and 2005-06.
ANALYSIS:- By analyzing the above table shows that the cost of direct labour of the firm in
the year is increased in 2006-08 compare to other years.
Factory Overhead to Sales:3) Factory Overhead to Sales = Factory Overhead cost *100
Net-sales
YEARS
Factory
Overhead
Net-SALES
Percentage (%)
2004-2005
15712759.79
301002504.06
5.22
2005-2006
25581554.35
302304793.75
8.46
2006-2007
30966215.70
337985566.07
9.16
2007-2008
32038895.00
349546301.04
9.16
2008-2009
29269482.40
430543494.12
6.79
FACTORY O.H TO SALES

10
8
6
4
8.46
9.16
9.16
6.79
5.22
2
0
2004-05
2005-06
2006-07
2007-08
2008-09
INTERPRETATION: -
Page 71

From the above table shows that the cost of manufacturing overhead of the firm in the year of
2004-05 is 5.22% where it compare to the next 3year it increase 8.46,9.16,& 9.16 in 2005-08.
And it again decreases 6.79 in the year of 2008-09.
ANALYSIS:- By analyzing the above table it shows that the firm has high cost of manufacturing
overhead in the year 2005-08 it s unfavorable to the company.
Findings
Gross profit and net profits are decreased during the period of study, which indicates that
firms inefficient management in manufacturing and trading operations.
Gross profit and net profits are increased during the period of 2004-05 which indicates
that firms efficient management in manufacturing and trading operations.
Liquidity ratio of the firm is not better liquidity position in over the five years. It shows
that the firm had not sufficient liquid assets.
The inventory of the firm in the first year has been sold very slow. And there is an
increase in the movement of the inventories but it slightly decreased in the last year. This
may be a sign not good to the firm.
Page 72

The fixed assets turnover ratio of the firm has in 2004-05 the ratio is 0.85 and it increase
in the next 3years continuously and it again decrease in 2008-09.
The current assets turnover ratio is increasing during the period of 2004-06 and again it
decrease in the period of 2006-07. And again increase in next two year slithightlliy.
Direct Material cost ratio of the firm is has less material cost during the period of 200405 & 2007-08 and it raised in the year of 2005-06 and 2008-09.
The cost of direct labour of the firm in the year of 2004-05 is 4.94%and it increasing
slithightlliy up to 2007-08 and it decrease in the next year.
The cost of manufacturing overhead of the firm in the year of 2004-05 is 5.22% where it
compare to the next 3year it increase rapidly.
SUGGESTIONS
The profit Of the Company Is not in a good Position For That company has to Take
Alternative Actions such As
Increasing in Procurement in sugarcane ,
Production, and Control in Expenses Like, Administrative, selling Etc.
The firms have low current ratio so it should increase its current ratio where it can meet
its short term obligation smoothly.
Liquidity ratio of the firm is not better liquidity position in over the five years. So I
suggested that the firm maintain proper liquid funds like cash and bank balance.
It should enhance its employees efficiency, more training needed to its employees in
order to increase its production capacity and minimize mistakes while performing the
Page 73

tasks, also more safety precaution need to implement to the employees who directly
working on sugar production process.
The firm high inventory so I suggested that the firm must reduce the stock by increase
sales.
The direct material cost of the firm is very high so its my advice to the firm that to
decrease the direct material cost by purchasing raw material from the other suppliers.
The firms should have proper check on the manufacturing process of the plant.
CONCLUSION
This project of Ratio analysis in the production concern is not merely a work of the
project. But a brief knowledge and experience of that how to analyze the financial performance
of the firm. The study undertaken has brought in to the light of the following conclusions.
According to this project I came to know that from the analysis of financial statements it is clear
that SHSSK Ltd. Have been incurring loss during the period of study. So the firm should focus
on getting of profits in the coming years by taking care internal as well as external factors. And
with regard to resources, the firm is take utilization of the assets properly. And also the firm has
a maintained low inventory.
Page 74
BIBLOGRAPHY
BOOKS:
1.
M.Y. KHAN, P.K.JAIN (1981), Financial Management, and Cost Accounting
(third
edition) New Delhi: McGraw Hill publishing company limited.

2.
I.M.PANDEY.Financial Management New Delhi Vikas publishing house private Ltd

ninth addition 2004
3.
Financial Statement
Page 75

WEBSITES
www.google.com
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FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.

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

TITLE OF THE PROJECT

To study the profitability of Halsidhanath Sahakari Sakhar Karkhana Ltd. Nipani.

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

To study the liquidity position.

SCOPE OF THE STUDY

Ratio analysis further the study is based on last 5 years Annual

Reports Shri Halasidhnath Sahakari Sakhar Karkhana. Ltd.

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

: Last five years financial statements.

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

Increasing in Procurement in sugarcane ,

Production, and Control in Expenses Like, Administrative, selling Etc.

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

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

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

OBJECTIVES OF THE STUDY

DATA ANALYSIS AND INTERPRETATION

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

HISTORY OF SUGAR INDUSTRY IN INDIA:-

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

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

utilization is conceptually different from the applicable to industries in general. In depends on

PFROFILE OF THE COMPANY

Shree Halasidnath Sahakari

Shree Halasidnath Sahakari

1st Crushing Season

STD CODE (08338)

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

BACKGROUND & INCEPTION COMPANY.

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

NATURE OF THE BUSINESS CARRIED

alcohol(ethanol)yeast and cattle feed.

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

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

Grower member will elect 12 BODS

1 Director will be elected by the co-operative.

1 Director nominated by the principal of financial agency.

PRESENT BOARD OF DIRECTORS ELECTED DIRECTOR

Shri. Babasaheb .S. Saasne

Shri .Ramagounda .R. Patil

Shri .Ganesh .P. Hukkeri

Shri .Appasaheb .S. Jolle

Shri. Annasaheb .A. Patil

Shri. Vishawanath .S. Kamate

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

Shri. Anand .D. Ginde

Shri. Chandrakant .S. Kotiwale

Shri. Ramagounda .B. Patil

Shri. Ramagounda .Y. Patil

Shri. Kanthinath .G. Chougale

A Class involves the grower (farmers of agriculturist)

B Class involves the institute and non-grower

C Class involves the state government of karnakata.

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

Venkateshwer Sugar Ltd

Renuka Sugar Ltd

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

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

WORKFLOW MODEL (END TO END MODEL )

Heating 65 C->Lime +SO2 application

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