INTRODUCTION

Every Financial Institute irrespective of its size is generally exposed to market liquidity and
interest rate risks in connection with the process of Asset Liability Management. Failure to
identify the risks associated with business and failure to take timely measures in giving a sense
of direction threatens the very existence of the institution. It is, therefore, important that the
strategic decision makers of an organization assume special care with regard to the Balance
Sheet Risk management and should ensure that the structure of the institute’s business and the
level of Balance Sheet risk it assumes are effectively managed, appropriate policies and
procedures are established to control the direction of the organization. The whole exercise is with
the objective of limiting these risks against the resources that are available for evaluating and
controlling liquidity and interest rate risk.

MEANING
Asset management in built environment is defined as “The set of disciplines, methods,
procedures & tools to optimize the Whole Life Business Impact of costs, performance and risk
exposures (associated with the availability, efficiency, quality, longevity and
regulatory/safety/environmental compliance) of the organization’s physical assets”.

Asset management based on whole lifecycle provides the means to ensure best value and returns
by managing each asset from design to demolition. It is the process of guiding the acquisition,
use and disposal of assets to make the most of their service delivery potential and manage the
related risks and costs over the entire life of the assets.

Definition of Assets management:

• It is a dynamic process of Planning, Organizing & Controlling of Assets & Liabilities-

their volumes, mixes, maturities, yields and costs in order to maintain liquidity and NII.
 ASSET

MANAGEMENT

Definition of Assets and Liability Management:

• Assets and Liabilities Management (ALM) is defined as, “the process of decision –
making to control risks of existence, stability and growth of a system through the
dynamic balances of its assets and liabilities.”

• The text book definition of ALM is “a risk management technique designed to earn an
adequate return while maintaining a comfortable surplus of assets beyond liabilities. It
takes into consideration interest rates, earning power and degree of willingness to take on
debt. It is also called surplus- management”.

• ALM is an integral part of the financial management process of any bank.

• ALM is concerned with strategic balance sheet management involving risks caused by
changes in the interest rates, exchange rates and the liquidity position of the bank.

• While managing these three risks forms the crux of ALM, credit risk and contingency
risk also form a part of the ALM

• ALM can be termed as a risk management technique designed to earn an adequate return
while maintaining a comfortable surplus of assets beyond liabilities.

• It takes into consideration interest rates, earning power, and degree of willingness to take
on debt and hence is also known as Surplus Management

• ALM is all about efficient management of balance sheet dynamics with regard to its size,
constituents and quality.

• It is the process of managing the Net Interest Margin (NIM) within the overall risk
bearing ability of a bank

• ALM process depends on the understanding of the balance sheet; the availability,
accuracy, adequacy and expediency of the data and the MIS system
 OBJECTIVES OF THE STUDY:

Primary objectives
1. To assess and identify the possible sources of risk in connection with the funding and
lending activities.
2. To assess the impact of risk on the business and financial performance of an organization.
3. To be familiarized with the qualitative and quantitative techniques needed to avert and or
minimize risk.
4. To evaluate the strength of existing risk management tools and improves it further.
5. To know the financial position of the company.

Secondary objective

6. To know the growth over the year.

7. To know company performance.
8. To know the different factors which influence in assets management.
9. To understand the financial problems faced by the company and to suggest
recommendations to overcome the problem.
10. To analyses varies possible regions for changes in the forms of assets & liabilities of the
company.
LIMITAITONS OF STUDY

1. LIMITED TIME:
The time available to conduct the study was only 2 months. It being a wide topic had a
limited time.

2. LIMITED RESOURCES:
Limited resources are available to collect the information about the commodity trading.

3. VOLATALITY:
Share market is so much volatile and it is difficult to forecast anything about it whether you
trade through online or offline
4. ASPECTS COVERAGE:
Some of the aspects may not be covered in my study.
 REVIEW OF LITERATURE

FINANCIAL MANAGEMENT

The roots of major management decisions revolve around financial information. A careful
scrutiny of alternative choices on the basis of projected information depicting the
comparative results of each is needed to arrive at the selection of most favorable decision
for eventual implementation. This brings us to the question what constitute financial
information? What information enables the finance manager to evaluate and plan the firm’s
earning ability?

The basic source covering financial information about a firm’s affairs is its annual financial
accounts. i.e. profit and loss statement for the last operating period(quarter, half year,
annually, etc) and the balance sheet as at the end of that period. Profit and loss accounts
reveal the operating results of the business activities of the firm and how they are put to
use. In other words the acquired assets at the disposal of the firm and liabilities that the firm
has incurred and remains indebted to others.

These sources however reveal only part of the necessary information and a considerable
gap. It is therefore necessary to further examine and break down the information in these
statements with a much greater elaboration and detail to translate the comparative strengths
and weakness of the firm. The finance manager, for this purpose employs certain analytical
tools and perceptive statements based on the source data from the balance sheet and profit
and loss account statements.

Before we enter into the methodology and procedure for financial analysis, it is desirable to
identify to whom such information is useful and how? Financial analysis serves the following
purposes to the concerned authorities/bodies.

 The shareholders as well as perspective investors desirous to know the present and
anticipated trends.
 The Government to take different projects and to study performance, growth etc.
  Banks, financial institutions and insurance who are interested with project to
ascertain the credit worthiness of the firm.

Financial data is to be analyzed with reference to the particular objectives of the person
concerned either external or internal as regards the firm. Before commencing analysis and
the type of information needed are to be ascertained as well as identification of source, data
and analytical tools to be employed.

Basically a financial analysis consists of a 3 step process as under:

1. Identify the source of information relevant to the decision to be made from the total pool
of data provided by the annual financial statements.
2. Rearrange the particular data selected to highlight significant relationship.
3. Study the analyzed information critically and draw pertinent conclusions

Statement of Research Objectives

The statement of the problem is “financial performance related to HDFC Standard

Life insurance scheme.” The study concentrate on understanding and analyzing the
various transaction of the company which were carried to attain its main objectives, to
evaluate the growth achieved in terms of finance and the problems involved in various
decision making.

The other objectives are as follows:

 To analyze the current financial position of the Company.

 To estimate the future profit of the Company.
 To know about the fund management of the company.
 To know about the past financial drawbacks.
 To analyze the financial statement of Company with others.
 To analyze about the products that were sold for the last five years.

Most Common Problems with Asset Management

Asset management is replete with issues or problems that arise, regardless of the generation
under which you are operating it. The good thing is that many people have already been open to
sharing their experiences on asset management, which saves newbie’s to asset management time
and energy from learning things the hard way. Here is a short list of the most common problems
pertaining to asset management that every asset manager must know of.

a. Lack of updates in the evaluation

When there is a bigger team asked to deal with the asset management of the company,
sometimes the updates are much more difficult to attribute to. This is because, while there is
rotation among the member, some parts may not be covered thoroughly. On the other hand, if too
many people are assigning tasks to individuals without the updates specifically communicated
among the different members, the updates will be much more difficult to establish.

b. Miscommunication among departments

This is the most common problem of asset management that involves human factors. The
miscommunication can go from as short as missing one decimal place to having questionable
discrepancies on file. The miscommunication is a great disadvantage because it involves lack of
proper use for the different instruments made available for asset management.

c. Incompetence to Manage Assets

The technical competence to mange assets is also equally important. If one of the team members
has not taken the time to train for the use of the equipment and the dynamics needed by the job
of managing assets, the incompetence will results to disasters in the managing of assets.
Inventory problems and management issues may arise, and in essence, it is still better to manage
with few high quality people than many below average ones.

d. Lack of Technology Demanded by the Company

For example, you have all the competent people you need. but you do not have the technology
that matches their qualifications for doing to job, you are still at a losing end. You may get an
above average performance, but it will still be much better if the technology matches the good
skills of the asset management team.

e. Lack of support

When there is lack of support in any given endeavor, it is bound to fail. The same goes with asset
management. The lack of support among departments may not be conducive for positive change
and objective or honest inventory of assets. Where there are ulterior motives being satisfied
among the ranks, the management of assets may not be as pure or clean as one would like. This
lack of support may be remedied by strengthening the ties of the team members via enriching
activities.

f. No balance in asset elements

The balance is the key to perfect asset management. A balance in the different categories and the
figures that represent them in the charts are the core outputs of a good management of assets in
an organization. A lack of balance means that there are some things that need to be modified, or
that some people are out of shape for this activity.

g. Too little risks taken for growth

When one's asset is much managed, there is also a tendency to eliminate all risks, even when in
fact these risks are contributory to the company's growth and yield good returns. Asset
management must also involve taking calculated risks.

Asset portfolio strategy

• An Asset portfolio strategy revolves around meeting customer needs in the most effective
and efficient way.

• Key asset portfolio strategy questions include:

a) Is the need for the service real?

b) What standard of service is required?

 c) Are the long-term costs of the current asset portfolio affordable?

d) Have non-asset solutions been explored?

e) What standard of service should new assets provide?

• Asset Management Toolbox

a) Asset register

b) Visual condition grade assessment

c) Asset valuation techniques

d) Asset creation and acquisition decision-making

e) Asset disposal decision-making

f) Whole-life cost management techniques

g) Auditing condition grade and expenditure

h) Training

5 core questions of Asset Management

 ASSET MANAGEMENT STRUCTURE

[ THE HOLISTIC APPROACH TO ASSETS MAINTENANCE

 KEY IMPLEMENTATION STEPS TO ACHIEVE ASSET MANAGEMENT

• RAISE AWARENESS of the site with THE CASE-FOR-CHANGE

• Communicate LONG TERM VISION & STRATEGY

• Form a STEERING COMMITTEE

• Appoint an IMPLEMENTATION MANAGER

• Steering Committee to give FREQUENT & VISIBLE SUPPORT

• Define ROLES and assign RESPONSIBILITIES for implementation

• Assign FULL TIME implementation focal points for key AFI’s

• Produce department / site level IMPLEMENTATION PLANS and monitor

• MEASURE BENEFITS and PROGRESS and publish

 • BUDGET according to identified BENEFITS and TARGETS

• MEASURE BENEFITS from progress and REMOVE FROM THE BUDGET

• COMMUNICATE regularly with site

Role of the Implementation Manager

• Facilitate planning & implementation

• Establish department level plans with Department Managers

• Provide facilitation and coaching for departments during implementation

• Monitor progress Vs plan

• Act as Co-ordinator to the Steering Committee

• Identify blockages to progress and report to the Steering Committee

• Measure and report actual benefits

• Ensure consistency across Site areas

• Regularly communicate progress and successes to Site

• Single point contact with client

 RESEARCH METHODOLOGY

To finding performance of Chittoor Cooperative Sugars Ltd., in the field of assets

management segments, this study is restricted to analyzing the financial statements of last 6
years.

METHODOLOGY

The objective of the present study can be accomplished by conducting a systematic analysis
of the balance sheet of the company. Analysis means detail collection, observation,
reporting of data, calculation and finding that are relevant to the company balance sheet.
This constitutes the secondary source of data which includes collection of annual report of
the company and many journals.

PRIMARY DATA

Primary data is the first hand data collected for the main and sole purpose of the study,
primary data was collected in the finance department of the company with the direct
interaction with the officials there.

SECONDARY DATA

 The secondary data was obtained through the company’s audit reports and
the annual books. Data was also collected from many newspapers and journals
for understanding in deep the company progress and achievements.
 Text books
 Internet
 Application forms
 DATA ANALYSIS AND INTERPRETATION

VALUATION OF LANDS, BUILDINGS, AC SHEET ROOF AND PLANT &

MACHINERY AT M/S

CHITTOOR COOPERATIVE SUGARS LIMITED

CHITTOOR (AP)

DATE OF INSPECTION : 06-12-2010

PURPOSE OF VALUATION:

The purpose of valuation is access the fair market value of the fixed assets comprising of
land, building, plant & machinery to furnish the bank loan purpose.

LOCATION:

M/S The chittoor cooperative sugars limited., chittoor is located in survey Nos. 204,
205,546,507/1,507/3 in No.74 Thimmasamudram revenue village, chittoor district, Andhra
Pradesh. The unit is located in Kadapa-Kurnool National Highway No.18 and 3km from
chittoor town.

VALUATION OF FIXED ASSETS

A) LAND

The unit is located on 84.23 acres of land as per records. In the total extent on 84.27
acres of land consisting of factory buildings, premises, residential quarters and other
vacant sites, 30.52 acres of land under cane be sold separately for developing as real
estate as there is good demand for house sites in this area. Enquiries are made in the
surrounding collected from the local people and also enquire made at the sub-register’s
office, chittoor for arriving the fair market value.

B. EXTENT OF THE LAND

 Sl.No Survey No Classification of land Extent
1 546 Dry land 38.07
2 545 Dry land 29.48
3 507 Dry land 04.75
4 126/2 Dry land 01.61
5 127 Dry land 00.88
6 217/b1 Dry land 00.24
7 217/n2 Dry land 01.60
8 216/b Dry land 00.78
9 218 Dry land 01.85
10 219/2 Dry land 01.15
11 218/2 Dry land 02.86
12 204 Dry land 00.01
13 205 Dry land 00.07
14 208/B1 Dry land 00.18
15 208/B2 Dry land 00.63
16 213*B Dry land 00.12
Total extent 84.27 Acres

Land value:

The registers office rates are adopted by the sub registrar is as per the agricultural land rares.
However the prevailing market rates applicable in the locality basing on the local conditions is
adopted. Through and discrete market enquiries are made at the time of valuation to ascertain the
fair market value.

1. Prevailing market rate : Rs.42 Lakhs per acre

2. United rate adopted in this valuation after considering the characteristics of the subject
land: : Rs.40 Lakhs per acre

3. Value of land “ 84.27 Acres X Rs.40 Lakhs per acre =Rs.33,70,80,000.00

SL.No Description Area Depreciated

Sq.ft value
4 FACTORY BUILDING
4.1 Fib riser and cane cutter shed-2 sides open gabled roof 1440 1,44,000.00
with side cladding and has high platform.size:43’X33’-6” Ls 60,000.00
and 16’ high Ls 1,50,000.00
Add for the platform and foundation
Add for fibriser foundation.
4.2 Cane gantry 6X6 MS columns and gantry girder and rails 7500 2,50,000.00
span 60’ and length 125’
4.03 Boiling house-60’ high, gable roof AC sheet building 17155 68,62,000.00
with side cladding and having heavy structure 17155 15,00,000.00
constructions. Size 73’ X 235’ Add for internal MS
structures and working platforms for over 50% area
4.04 Power house building to north of boiling house ,a single 5832 23,32,000.00
sloped cladded building of ht.60’/50’,size :54’X10 108’ 5832 4,00,000.00
Add for RCC platforms & mezzanine stage
4.05 Dyer hall-typical single slope AC roofed building with 3672 13,00,000.00
steel columns trusses etc of ht.35’/12’,size 51’X72’
4.06 North extension of ht.12’/20’,size31’X108’ 5022 10,00,000.00
4.07 South side extension as learn to with CRS wall on one 1400 4,00,000.00
side of ht.10’/13’-6” & size 20’X70’
4.08 Work shop building-AC sheet gabled roof building on 5600 11,00,000.00
MS columns, size 40’X140’
4.09 Open structure for black smithy and carpentry etc., 1935 1,00,000.00
size:21’-6”X90’
4.10 Mill house & boiler house 50’ high building of AC sheet 15040 60,16,000.00
gabled roof over heavy MS columns and trusses with
side wall cladding in top half and learners, size:64’X235’
4.11 East side extension to above by lean to of 35’-0” and 2520 3,50,000.00
20’ht , size 35’X72’-0”
4.12 South side extension-centrifugal house of size 25’X72’ 1800 3,00,000.00
and height 50’/60’ with MS processing platforms etc
4.13 Generator shed-16’ high AC sheet roofed building of 495 50,000.00
gable type with 3sides fully covered and one side open,
size 30’ 16’-6’,
TOTAL 2,23,147,000.00

Sl.No Description Area sq.ft Depreciated

value
5.0 OTHER CIVIL ENGINEERS STRUCTURES
5.1 Cold water of masonry with cc floor-14’-0”dia 255 2,00,000.00
5.2 Shed over the tank –of AC gable roof on high plinth 4600 30,000.00
and one side open
5.3 Hot water tank -14’ depth with AC sheet roof over 1500 1,00,000.00
MSJ’s and CRS masonry etc size:60’X25’
5.4 Water softening plant-open size:20’X10’ 200 10,000.00
5.5 Weigh bridge-RCC roofed building with front 900 2,00,000.00
verandah-2 No’s 200 80,000.00
Add for machine pits
5.6 Open shed near Weigh bridge,size20’X40’ 800 20,000.00
5.7 Spray pond- a masonry –over ground with central 22500 5,00,000.00
pedestals etc., size 15X150
5.8 Pump house of RCC mill 200 15,000.00
5.9 Another house AC sheet roof 200 10,000.00
5.10 Hot and cold water channel 300 80,000.00
5.11 Base & foundation, enclosure and a room of RCC of 1500 30,000.00
10’X10’
5.13 Compound wall of CRS masonry in cement 8’ high 2025 7,00,000.00
and having barbed wire fence over top
5.14 Compound wall of brick work in cement 1566 2,50,000.00
5.15 Barbed wire fence on stone posts 2258 30,000.00
5.16 Bore wells of depth 315’ to 500’ with pumps of 15 5 NO’s 2,50,000.00
H.P
5.17 Add for pipeline 3” G.I other sizes LS 80,000.00
5.18 Allotment room-AC sheet roofed building of brick 200 20,000.00
wall, doors and window of size: 12’X10’ with lean to
veranda 10’X8’
5.19 Pump house –AC sheet building size 11’X11’ 121 10,000.00
5.20 Open wall -35’ dia 50’ depth with CRS steaming 20,000.00
with a pump shed etc
5.21 Effluent treatment plant
1.pump shed size:8’X12’ 50,000.00
2.settling tank-50’X60’X12’ Ls 5,00,000.00
3.open tank -15’deep with partition size:64’X120’ 7680 3,00,000.00
4.sludge pits filled with sand 2 stores Ls 50,000.00
size:35’X18’X4’
5.collection tank-open masonry of size:9’-6”X10’ 95 30,000.00
and 6’ above ground level
7.pump shed of size:10’X13’ 130 8,000.00
8.effluent drain –a masonry built drain of 3’ to5 wide
from mill house to ETP and power house to baggage
yard etc. 800’ 45,000.00
open 300’ 1,00,000.00
covered 100’ 15,000.00
pipe
5.22 Over head tank of 1,00,000Ltrs capacity of RCC over 5,00,000.00
9 Mtrs. High & dia 30’
5.23 Ground level tanks of size 75’X150’ and of depth 5’- 5,00,000.00
0’with CRS cement & floor
Total 49,53,000.00

Sl.No Description Area sq.ft Depreciate

d value
6.0 NON-FACTORY BUILDINGS
6.1 sugar godowns –twin buildings of CRS super 47125 1,88,50,000.
structures, glabed roofed and with MS trusses, CC 00
floor & rolling shutters of height 25’-0’,size :
72’6”X325’
6.2 New-godown 13200 52,80,000.0
0
6.3 Godown office: An RCC roofed building of brick 525 1,20,000.00
wall, CRS masonry in foundation and plinth with
wooden doors and windows has an open verandah,
size:18’9”X28’-0”
6.4 Gunny-godown A gable roofed building with 992 50,000.00
brick walls, rolling shutter & CC flooring etc., size:
31’-6”X31’-6”
6.5 Lime shed A gable roofed building similar to above 714 20,000.00
of size 51’X14’
6.6 Transporter office A brick masonry building with 1173 1,75,000.00
RCC roof built above the compound wall of stone
masonry size 51’-0”X23”ad of ht:12’
6.7 Lorry garage & storage etc. A gable roofed building 9300 13,95,000.0
in stone masonry of the transporter office building. A 0
long row of building with open shed in the middle
size:31’X300 of ht 12’/16’
6.8 Vehicle washing & inspection facilities with two 500 30,000.00
platform and ramp with facility of inspection etc.,
size: 50’X10’-4’ height
6.9 Manure godown An AC sheet gable roofed building 5920 8,88,000.00
with verandah MS trusses wooden doors and
windows, CC floor etc of size 37’X160 and of ht
12’/16’
6.10 Extension to manure godown and verandah of size 3709 3,70,900.00
37’X69’ and 16’9”X69’
6.11 Verandah of RCC roof open of size 9’X21’ and 371 10,000.00
13’X14’
6.12 Main store building, gable roofed building with MS 4334 7,58,450.00
trusses wooden, door, windows, CC floor etc and of
height 18’/24 and span 45’-3” and size 45’-3”X96’
6.13 Lean to extension to above now used as workshop 2064 1,50,000.00
and CE’s office of size 21’-6”X 96’ and of ht 12’/16’
6.14 Laboratory and CE’ office 720 2,16,000.00
A double storied RCC roofed building with all
facilities for an office and laboratory size:36’X20’
6.15 Office block 6279 18,83,700.0
an RCC framed signal stored building with aluminum 0
windows and doors with projected roof and tile
flooring size:36’X20’
6.16 Employees Res room 778 77,800.00
A gable roofed brick wall building was hard board
falls roof ceiling size:37’-6”X20’-9”
6.17 Time office and security 559 1,39,750.00
An RCC roofed building of size 37’-3”X15’
6.18 Verandah and front extension of AC sheet roof 894 10,000.00
6.19 Old office building
A composite building of AC sheet roof and RCC roof
Size:36’-6’X70’ (single slope)
Size: 17’-6’X70’ gable 2135 1,50,000.00
Size:13’-6’X70’ RCC 1225 70,000.00
945 30,000.00
6.20 Cycle stand
A Simple umbrella type open structure with three
sides covered
Size:16’-3’X38’ 618 5000.00
 Size:15’-0’X87’-6’ 1313 15,000.00
6.21 Canteen building-an RCC roofed bricks ,wall 1584 3,64,320.00
building of normal height size:22’X72’
6.22 Lean to shed of AC sheet roof size:9’X48’ 432 10,000.00
6.23 Sugar sales room 480 48,000.00
An AC sheet roofed building with of size:20’X16’ &
open verandah of 16’X10
6.24 Soil testing room-A gable roofed building with lean 2028 1,00,000.00
to extension with brick walls, wooden doors and
window CC floor and false roof ceiling etc ,of size
39’X52’
6.25 Sulphur house –AC sheet roofed building of 18’ span 1944 3,00,000.00
and 30’ height size:18’X108’
6.26 Dorr clarifier shed open type -50’ height with top 1998 5,00,000.00
cladding size: 37’X54’
6.27 Foundation & base to door tank with RCC circular 1000 3,50,000.00
heavy frame
6.28 Toilet block and service room of lean to AC sheet 368 50,000.00
roof -3 sides open with wooden doors and windows
etc., size 32’X11’-6”
6.29 Crusher sample room-a lean to building with brick 341 5,000.00
walls fully covered size:31’X11’
6.30 Sulphur godown – a gable roofed AC sheet building 1953 1,50,000.00
over brick walls etc., size:2X31’X31’X-6”
6.31 Feed mixing plant and godown: 20’high AC sheet 7826 17,21,720.0
gabled roofed buildings of 43’ span and 182’ length 0
with brick walls high plinth etc.,
6.32 Toilet block- near administrative office with out 1953 1,50,000.00
RCC tank and septic tank 20’X13’-6”
6.33 Cane office and member waiting hall-an AC sheet 3255 1,00,000.00
roof gable building of size:124’X26’-3”
6.34 Union office building – same as above size 49’- 1349 20,000.00
6’X27’-3’
6.35 New toilet block:- AC sheet roof size 18’X7’-6’ 135 5000.00
6.36 Token office:- RCC roofed building size: 15’X13’-6” 203 20,000.00
6.37 Staff toilet block of RCC roof and having water 1240 2,48,000.00
supply & drainage facility
3,47,86,640.
00

Sl.No Description Area sq ft Depreciated

value
7.0 RESIDENTIAL ACCOMADATION
7.1 Chief engineer quarters with RCC roof and also of 1500 4,50,000.00
Mangalore tiled
7.2 PA’s quarters- RCC 30’X43’ 1290 3,54,750.00
7.3 Club AC sheet roofed building 1260 1,26,000.00
 7.4 Employed club AC sheet roofed building 800 80,000.00
7.5 Security officers quarters an RCC roofed 1014 3,04,200.00
building26’X33’
7.6 Guest house –an RCC double storied building 2273 7,95,550.00
7.7 Managing directors bunglaw two storied building 1875 6,56,250.00
7.8 C type quarters of RCC 17 Nos 938 sft 15946 47,83,800.00
7.9 Staff quarters – 8 quarters of 44’-9”X25’-3” 9040 20,34,000.00
Total 96,46,550.00

VALUATION OF PLANT & MACHINERIES

SL.NO DESCRIPTION Qty & Depreciated

year value
8.0 MILLING PLANT 2,21,00,000.00
8.1 Cane unloader
Type single tandom 3motion type 2
Cap:5 Ton with two bridges EOT crane with 22M 1978
spanX38 m bay length
8.2 Came carroer
Type: split type carrier 1st carrier
Feeding to mill 6” pitch
2 stand chain
56”width ,24.5M length with variable
Speed drive of 40 HP-2nd carrier
6” pitch, 3 strand chain with horizontal length of
30M width of 1540M inclined with 18 deg angle 6M
and 8 Deg angle,9M with variable speed drive of
50HP
Speed:3M to 10M
8.3 Cane cutter 2 sets 8977421095
Cane knives 1974
No of blades;60
RPM:583
HP:200
Cane leveler clearance:200m+100m adjustable
Other cane equipments 1
-fibrizer 1963
-16 hammers of 20 kgs secrecd in hubs with arrest 1
plate serrated type 1994
-opening 10mm discharge
-fibriser drive
-steam turbine 700BHP with reduction gear
-maker :kesels India
8.4 Cane crusher 11963
-3 rollers each
-762 (30”)X1422mm(56”)
8.5 Bagasse elevator Set 1963
 Chain no 903
1220 mm wideX15200
15HP motor with 720RPM
8.6 Mills-6 Nos 4 1963
Mills of three rollers each of transplate complete 2 1974
with hadraulic system.
Size:30”X56” with under feed roller of 16” dia for 5
mills and with 735 mm dia under feed roller for
crusher
1 Cane crusher of 29” dia X 56” long roller having
journal 14” dia X 17” long with circumferential
groove of 550 angle
2 Mills with three roller mills having 28’X50’ long
roller having Roller having 14’X17’ long journal
with circumferential groove of 55 deg angle, make :
Binny Eng. Ltd Madras
8.7 Drive of mill
a. Turbine of mill 1 &2 1
Make: Bellies Morcam 1974
Rating :500HP
b. Turbine of mill 3 &4 1
Make: Mirlis woston 1963
Rating :500HP
c. Turbine of mill 5 &6 1
Make: Mirlis woston 1963
Rating :500HP
d. Reduction gear box for above drivers 3
-turbine speed :4000RPM 1963
-reduction gear output:100RPM
8.8 Automatic water weighing scale for maceration 1
-capacity 1.5MT per tip 1995
-receiving tank 3tons capacity with all accessories;
stroke counter arrangements
-make: M/s Ray Iron Works Pvt.,Ltd.,
ii CLASSIFICATION PLANT
1. Weighing scales
a. Cap:35 to 40 qts 2
Types: KCP 1963
Automatic counter with check weighing by a very
scale
b. Cap:6.5 tons per tip 2 90,00,000.00
Including check weighing system with automatic 1994
counter recording
2.juice heaters -7Nos
Type vertical high velocity juice heaters
a. -3 Nos 1500 ft heating surface each 3
1-raw juice 1974
2-sulphured juice
 3-spare
b. -3 Nos 1900 ft heating surface each 3
1-raw juice 1995
2-sulphured juice
3-spare
c. 1 No. 1900 ft heating surface 1
1995
3 juice sulphuring tanks 1
Cap: 160 kL 1963
Continuous type sulphitor
4 setters 1
-30 ft dia or rapidor with 4 compartments 1990
-cap: 400M.T.
Height :20 ft

5 sulphur gas plate 2

1963
a. Sulphur furnaces
0.56 sq.mt tray continuous type
b. Air compressors
Make: kirloskar
Type: EH 245
Cap:500 cu. F1 per minte against 1.05 kg/sq.cm
pressure
7 milk of lime plant
Lime slaker: lime korem classifier
Rotary drup type, length 43.8 mm
Dia: 101.6mm
i EVAPORATION AND BOILING PLANT 2,00,50,000.00
i
i
.
1.Evaporators
a Body1 1
. Heater surface:650 sq.m 1963
Height of the body:3050mm
b Body2 1
. Heater surface:650 sq.m 1963
Height of the body:3050mm
c Body3 1
. Heater surface:650 sq.m 1963
Height of the body:3050mm
d Body4 1
. Heater surface:650 sq.m 1990
Height of the body:3660mm
1 Pre evaporator 1
. Heating surface 800 sq.m. 1985
2.syrup treatment plant 1
 Sulphuring tanks with filters 1985
Continuous syrup sulphitator of 60 kl working
capacity
3.syrup storage cap:20.4 mt 3
1963
4. Molasses storage 7
cap 20.4 cm 1963
Heavy molasses storage tanks 4
Heavy molasses storage tanks 2
Light molasses storage tanks 1
4.pans with accessories 7
Type : calandira low head vaccume pan
Massecute – 3 Nos 2 1963
40 T capacity
35 T capacity
Brass tube od 101.60mmX1076.5mm L 1 1974
Massecute – 2 Nos 1 1963
35 T capacity
Heating surface: 139.sq.m
Brass tube od 101.60mmX1076.5mm L 1 1974

Massecute-2Nos 1 1963
50 capacity 1 1995
35 T capacity
Condensation plant
A Mirrless barometer multijet condensers 1 1963
a. Cap :11350kgs/hr 2 1963
b. cap:6180kgs/hr 3 1963
c. Fan vapour condenser
B Condenser water pump:split casing centrifugal
type 2 1963
Cap:2500 GPM 5 1963
Cap:125lts/sec 1 1963
Cap:500lts/sec 1 1963
Cap:2500 GPM
c Water cooling system 2 1963
. Split casign centrifugal pump 1 1963
Spray pond with 405 nozzles of 22 mm dia
I COOLING,CURING & DRYING PLANT 2,50,00,000.00
V
1.SEED CRYSTALLISERS 1 1963
MASSECUTES footing crystallieser(A)
35 tonne capacity
Grain vacum crystallieser(B) 1 1963
35 tonne capacity
Seed storage crystallieser(B) 1 1974
160 HL capacity
Seed storage crystallieser© 1 1963
25 tonne capacity
Crystallieser 9 1963
Supplier : Binny Engg,works, Madras
Air cooled open type-4 Nos
Type U shaped open type
Cap: 35 MTS
‘A’ massecuite
Air cooled open type-3 Nos
Type U shaped open type
Cap: 35 MTS
‘B’ massecuite
Air cooled open type-2 Nos
Type U shaped open type
Cap: 35 MTS
‘C’ massecuite
Mono vertical crystallizer 1 No
Cap:200 tonnes
Heating surface: 155sq.m
Diameter:4000mm
Holding cap:120 cu.M
‘c’ Massecuite
2.centrifugal Machines
Single curing system centrifugals 4 1986
Make:N.H.E.C
Batch type, flat bottom, plough discharge
30”X48” size centrifugal machine of minimum
700 kgs per charge
A’Massecuite
Each machine having 16 cycles per hour at
1500RPM and fully automatic and recycling
type form single ‘A’massecuite
Drive motors of Bharath Bijilee make with
THYRESTER control system
Continuous centrifugal machines of NHEC-NK-
1100 make with drive and all other accessories
2 Nos for’C’ foreworker machines for a capacity
of 6 to 10 MTs per hour for the massecuite
condition 45 purity,100-104 brix to cure at 40
deg c curing temp at normal viscosity. The
machine is drive by 75 HP 55KW , 2000
RPM,electrical motor of kirlosker make with
electrical control panel of Siemens make
C’ massecuite
1 Nos for’C’ afterworker machines for a 1 1994
capacity of 16MTs per hour. The machine is
driven by 75 HP 55KW , 1800 RPM, sq cage
electrical motor of kirlosker make with electrical
control panel of Siemens make
 2 Nos for’C’ foreworker machines for a capacity 2 1994
of 16MTs per hour. The machine is drive by 75
HP 55KW , 1400 RPM, sq cage electrical motor
of kirlosker make with electrical control panel of
Siemens make
C’ massecuite
3 Air compressor
Make: kirloskar 1 1985
Model:TC 200M
Vertical water cooled air compressor for
centrifugal machines. Air compressor of single
stage, single acting, reciprocating stationary,
non-lubricated discharge pressure (8.8 kg/cm 2g)
130 PSL 2.26 cu.M/min(80cfm)(oil from air) at
250RPM lubricating with all accessories
1 No kirloskar make 1 1985
Vertical reciprocating water cooled lubricant
compressor
Model:LM 200M
No. of cylinders:2
Displacement:13.3cu.m
Motor:37KW
4 sugar drier
Sugar hoppers 3 194
1 No. single tray gross hopper
Size:1.5M wideX12M longX350M depth
Connecting rods:2 nos
Electrically driven
2 Nos multi – tray
Size:1.5M wideX12M longX350M depth
Connecting rods:2 nos
Electrically driven
Sugar elevator 1 1994
Cap:20 tonn/hr
With two stands chain with G.1 buckets Ht:11M
Electrically driven
Sugar grade with bagging and stitching 1 1994
Cap: 20Tonn/hr
Having 4 ducks with screens
Electrically driven
V STEAM GENERATION PLANT 2,45,00,0000.0
0
1.Boilers
a. Steam generating capacity 16 to 16MT/hr 1 1963
Working pressure:14.5kgs/sq.m
Heating surface: 696.75 sq.m
Super heating 100 Deg.F
Make:Temaco VW-20
 Steam generating capacity 21MT/hr 1 1974
Working pressure:14.5kgs/sq.m
Heating surface: 793 sq.m
Super heating 100 Deg.F
Make:Temaco VW-20
Steam generating capacity 25.5MT/hr 1 1963
Working pressure:14.5kgs/sq.m
Heating surface: 1035 sq.m
Super heating 100 Deg.F
Make:ISGEC john Thomson
b. Feed water treatment 1 1963
Caustic soda 2.5kgs/shift
Make:indion 1462
Alkaline builder
Water tanks – vertical
Cap:12KL,make ION Exchange India
c. Chimney 1 1963
Mild steel of 2.44 MTs dia & 30.48m forced and
induced drought
d. Fly ash arrestors 3
1 No 25 MT capacity
Make:ISGEC boiler
2 Nos 20 MT capacity
Make:Texmaco boiler

e. Auxilar fuel system 1 1963

Oil burner and oil preheaters
Fuel oil tanks
1.Horizontal steam storage tank 12540 ltrs
2. Horizontal steam storage tank 9806 ltrs
3. Horizontal steam storage tank 22750 ltrs
4. Horizontal steam storage tank 22750 ltrs
VI POWER GENERATION PLANT 2,50,00,000.00
1.Diesel generator set 1 1994
Cap:625 KVA
Make:kirloskar Cummins Ltd
No. of cylinders:12
RPM:1500 at N.T.P
HP:750
2.steam turbine 1 1963
Cap: 1250KW-1 No.
Make: English electric
Steam intel ressure:180Psl
Steam exhaust pressure:10Pslg
Turbine speed :8000RPM
Alternator speed:1500RPM
Steam temp:491Deg.F-4stage
3. steam turbine 1 1994
 Cap: 750KW-1 No.
Make: Riveni English electric
Steam intel ressure:180Pls
Steam exhaust pressure:15Pslg
Turbine speed :1500RPM
Steam temp:48Deg.F-stage
4.a steam turbine with alternator 1 1999
Cap:3MW
Make:Triveni
a.EOT crean 1 1999
cap:20T
5.Electric generators-Ac 1 1994

A. Electric generator -1 No 1 1963

Cap:415V,750KW(output)
Make:Jothi Baroda

B. Electric generator -1 No
Cap:440V,1250KW(output)
Make: English Electric, England

C.Cap:420V,625KW(output) 1 1994
Make:kirloskar
VII OTHER PLANT ASSESTS 50,00,000.00
1.a.MS steel tank for storage of molasses 1 1965
Cap:4000MT
1.b.MS steel tank for storage of molasses 1 1990
Cap:4000MT
2.cane seed treatment plant 1 1995
Cap:0.75 MT
Cane seed hot water treatment plant with both
electrical and team operating unit
3.effluent disposal 1 1974
Machines for effluent disposal plant comprising
of pumps, filters, pipes etc.,
VIII WORK SHOP EQUIPMENT 25,00,000.00
1.lathes & their sizes
a.jayamas Engg.Co.5.9 Mtr,18ft length 1 1963
b.kirloskar,2,624Mtr 8 ft length 1 1963
c.kirloskar ,3,936 Mtr 12ft length 1 1963
d. Mcleans,2,624 Mtr 8ft length 1 1963
e.Master ,3.34M(Length)X500mm center height 1 1963
lathe
2.shaping machine,18” stroke,2HP 1 1963
3.plamnning machine and size No.1.968M 1 1963
stroke:6’3hp
4.Tilting type oil furnace 200Kgs 1 1963
IX PLANT ELECTRICALS INSLUDING TRAN:LS 1963 6,00,000.00
 SWITCH GEARS, MAIN &SUB CONTROL
PANELS,CABLES,CAPACITORS ETC.,
X WEIGH BRIDGE 7,50,000.00
a. Weigh bridge-Mechanical 1 1963 4,00,000.00
Make: Avery
Cap:25MT
b. Weigh bridge-Electric 2 1994 4,00,000.00
Make: Avery
Cap:25T
Total 13,53,00,000.0
0

SUMMARY

VALUATION REPORT OF LAND, BUILDINGS, OTHER CIVIL WORKS, PLANT AND

MACHINERY AT THE FACTORY PRIMESES OF M/S CHITTOOR CO-OPERATIVE
SUGARS LIMITED., AT CHITTOOR-517 003.A.P.

SL.No DESCRIPTION DEPRECIATED VALUE

1. Land 33,70,80,00.00
2. Factory building 2,23,14,000.00
3. Other civil structures 49,53,00.00
4. Non – factory buildings 3,47,86,640.00
5. Residential accommodation 96,46,550.00
6. Machinery value 13,53,00,00.00
Grand total 54,40,00,000.00

THE TOTAL ASSESSED FAIR MARKET VALUE OF THE ABOVE FIXED ASSETS OF
M/S, CHITTOOR CO-OPERATIVE SUGARS LIMITED. CHITTOOR-517003.A.P. ON AS IS
WHERE IS BASIS AS ON DECEMBER 2008 IS

(Rupees Fifty four crores and forty lakhs only) Rs.54, 40, 00,000.00

CERTIFICATE

1. It is hereby certified that in my opinion the present market value of the property by
adopting prevailing market rates fro land, buildings, sheds, plant and machinery is
Rs.54, 40, 00,000.00 (Rupees Fifty four crores and forty lakhs only)

2. The property was inspected on 06.12.2008 in the presence of Chief Engineer and General
Accountant of Chittoor Co-operative Sugars Ltd.Chittoor.

3. The information furnished above is true to the best of my knowledge and belief.
 4. I have no direct and indirect interest in the property valued above.

5. I have not been found guilty for misconduct in my professional capacity.

6. The legal aspects were not considered in this valuation.

7. This valuation work is undertaken by the valuer based upon the request from the
managing director, The Chittoor Co-operative Sugars Ltd.Chittoor.

RECOMMENDATION AND CONCLUSION

RECOMMENDATION

• Increase accountability:

Make socialization and informative training about asset management report. As we know
asset management affected by accrual accounting. In Indonesia implementation accrual
accounting not yet fully implemented, but policy to implement accrual base have been
mandate constitution and wait readiness of all part entity.

• Incentive and good monitoring

This report indicates there is weakness in internal organization. So in this case, internal
monitoring and internal compliment isn’t running well. Good solution for this problem is
give incentive and good monitoring, as recommended. His opinion is incentive and
efficiency management can give ensuring managerial responsibility and flexibility in
activity in asset management.

• Life-cost analysis as tool to generate reinvestment in asset management

To give good decision in asset management policy, we must develop an analysis tool as
like life-costing guide. This analysis give us information about what capacity, capital
 cost, alternative product option and disposal option in the right time to minimize
decreasing value asset.

• Make implementation rule to create evaluate and gap analysis tools that generate
good performance in asset management

In current condition about asset management we don’t realize about a model or system
that can be recognize what resource that we have and what asset that important to build. It
can be done by gap analysis.

CONCLUSION

• Asset management reform needs a more time to develop approximately about 15-20
years. Company has made a fundamental framework and makes some adjustment
what next should be done to get good practice in asset management.

• To encourage this effort system and model should be support by good qualify human
resource that understand the philosophy asset management, cycle process and get
three point of management asset (efficiency, clearness, optimal).