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

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 the liquidity position.
To find activity turnover
To study operating efficiency of Halsidhanath Sahakari Sakhar Karkhana Ltd Nipani.
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.
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.
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 2004-
05 & 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.
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
NO.
SL.NO CONTENTS
1 PART I
INDUSTRY PROFILE
PART II
2 INTRODUCTION OF COMPANY
3 PART III
RESEARCH METHDOLOGY
OBJECTIVES OF THE STUDY
PART IV
4 RATIO ANALYSIS
FINANCIAL STATEMENT.
PART V
6 DATA ANALYSIS AND INTERPRETATION
PART VI
7 FINDINGS
SUGGESTIONS &
CONCLUSIONS
PART VII
8 . 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
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:-
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.
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
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.
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.
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 by-
product
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
2 Hukkeri Belgaum 05
3 Raibag Belgaum 04
4 Belgaum Belgaum 01
5 Jamkhandi Baglkot 01
6 Athani Belgaum 05
7 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
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 Share

No capital
1 A Grower 15,924 613.52
B co-operative society
2 Non-Grower 3065 60.06
3 C Government of Karanataka 1 375.82
Total 18990 1049.40
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
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 5 45.56 11 55 156.77
2 10 57.76 12 60 166.83
3 15 73.12 13 65 174.02
4 20 86.34 14 70 183.80
5 25 98.16 15 75 192.75
6 30 106.30 16 80 199.12
7 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.
WORKFLOW MODEL (END TO END MODEL )
CANE
PRIMARY LAST MILL BAGGASSE

JUICE JUICE
BOILAR
MIXED JUICE Heating 65 C->Lime +SO2 application

Heating 65 C->Lime +SO2 application
Elec -
CLEAR JUICE Generation
HEATING 100 C
SYRUP HEATING 100 C
A M/C B M/C C M/C
Sugar AH AH B SEED B HEAVY

100/50 kg Babasabpatilfreepptmba.com
Molasses Molasses MOLLASES Page 18
Gradation
Weighment
C SEED C.L Molasses F.M Class

Godowns
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
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 Time and Purchase Store Section Sales

Section labour Section Section
Security Cane Engineering Production

Security Cane Engineering Production

Section Development Section 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
Sr Member class No of Shares Share
No capital
1 A Grower 15,924 613.52

B co-operative society
2 Non-Grower 3065 60.06
3 C Government of Karanataka 1 375.82
Total 18990 1049.40
TIME OFFICE LABOUR WELFARE DEPARTMENT
NAME OF PERMA SEATION GOV CONSTR DAIL CONTR TOTA

THE NENT AL T U Y ACT L
DEPT CTUAL WAG
ES
Time 6 4 - - - 3 13
Office
Security 13 - - 6 - 3 22
Store 6 5 - 1 - 9 21
Civil 4 - - - - - 4
Environme 3 3 - 1 - 9 16
nt
Administra 15 3 1 5 - 6 30
tive HE
General 10 - - - - 3 13 AD
A/C
:-
Cane A/C 7 2 - 1 - 6 16
S.G
Vehicle 7 4 - - - - 11
.
Medical 1 - - 1 - - 2
MO
Agriculture 28 62 - 5 2 39 136
RE.
Engineer 90 70 - 3 3 41 207
8 99 - - 2 38 147
Manufactur
er
TOTAL 198 252 1 23 7 157 638
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.
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.
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 Ex:- Bush, rubber belt, wheel, ordinary material.
16. Library 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.
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.
Cane Development Section
Department-Structure
Chief of C.D.O For Manager
C.D.O 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.

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 Electrical Environmental Work-Shop Civil
Engineer Engineer Engineer Engineer Engineer
Supervisor Supervisor Supervisor Supervisor Supervisor
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
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

No
CAPITAL CRUSHING PRODUCTION RATE
A/C (In MT) (In qtl)
1 2004-05 837.13 141430.852 151480 10.71

2 2005-06 972.40 210556.428 239950 11.40
3 2006-07 241130.000 275240 11.41
1049.40
4 2007-08 113345.000 132920 11.82
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.
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 by-
product called bagasse.
Dorr:- The juice has come by- product 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)

2 1lakhs
2 70000
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. On-
the-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
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 day-
to-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.
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.
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
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:-
Competition from the domestic player.
Due to unfavorable Govt. Polices, factory has to sell sugar below its production cost.
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
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 the liquidity position.
To find activity turnover
To study operating efficiency of Halsidhanath Sahakari Sakhar Karkhana Ltd Nipani.
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:
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.
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.
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 long-
term 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:-
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:-
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
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.
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
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
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
SOURCES OF FUNDS FIXED ASSETS
Share capital 88846018.59 Gross block 350064970.09
Reserves and surplus 274191573.34 Less: Depreciation
Net Block 350064970.09
Investment 1. 6975000.00
CURRENT LIABILITIES CURRENT ASSETS 2.
Working capital 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 60423970.91
Sundries 84028.25 Other assets 46346877.80
Other Sundries 3239794.41 Accumulated loss 152726340.15
loan funds 118309456.47
Cane bills and other 26653751.52

payables
TOTAL 818088181.81 TOTAL 818088181.81
TRADING AND PROFIT & LOSS ACCOUNT AS ON 31-3-2005
Expenditure AMOUNT Incomes AMOUNT
Opening stock 201471850.00 Sugar sales 270160956.16
Other sales 30841547.90
Cost of production 212750813.48 Closing stock 183235461.00
Gross profit 70015301.58
Total 484237965.06 Total 484237965.06
Establishment charges 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 &Insurance 35111966.31

charges
Govt Tax & Other 121490.67
Social Expenses 198765.78
Rent rates & Taxes 1257774.92
Other management 1001874.80

Expenses
Bonus for the year 2005 1600000.00
Depreciation 8680733.00
Net profit 14569011.39
TOTAL 72086800.84 TOTAL 72086800.84
Reserves and surplus 270171150.60 Less: Depreciation
LOAN FUNDS Net Block 361712835.66
Loans Investment 1. - 587259.00
CURRENT LIABILITIES CURRENT ASSETS
Suspense 29044436.06 Advances 49015066.50
Sundries 120071494.29 Other assets 37433717.42
Other Sundries 9966024.46 Accumulated loss 161706973.23
Cane bills and other 65201661.09

payables
TOTAL 931031316.33 TOTAL 931031316.33
Total 589195771.75 Total 589195771.75

charges
Other management Exp 605143.20
Bonus for the year 2006 1700000.00
Bonus & Incentive paid- 05 1618790.00
TOTAL 53288905.10 TOTAL 53288905.10
Reserves and surplus 272212433.62 Less: Depreciation ---------------
Loans Investment - 587259.00
Other funds 13747634.18 Cash at bank 3238097.38
Deposit payable 8619351.89 Advances 47810043.43
Advance from debtors 6317241.93 Receivables 45279858.83
Provisions for expenses 164768060.10 Accumulated loss 160527056.44
Other liability 2037609.50
Creditor 101250338.13
TOTAL 1000239879.90 TOTAL 1000239879.90
Total 700673937.07 Total 700673937.07
Administration Employee 10876604.35 By gross profit 37903469.81

cost
Administration Expenses 7705246.66 Other income 11835306.34
Financial Expenses 29337549.35 Other Misc income 1401824.00
TOTAL 51140600.15 TOTAL 51140600.15
Reserves and surplus 274371212.60 Less: Depreciation ---------------------
Loans 26729775.00 INVESTMENT 1087259.00
Working capital 277252952.20 Investment 1087259.00
Statuary deposits 160307605.18 Inventories 343915871.14
Suspense 7820327.58 Cash in hand 1446247.76
Sundries 120856075.80 Advances 44575300.80
Other sundries 61753564.01 other assets 50884269.05
Cane bills and Other 73676864.17 Accumulated loss 158348240.34

payable
Creditor -------------------
TOTAL 977017361.43 TOTAL 977017361.43
Cost of production 249243488.47 Work in progress 1893561.00
Gross profit 60991621.57 Closing stock 321483619.00
Total 672923481.04 Total 672923481.04

charges
Bonus for the year 2007 ---------------
Bonus & Incentive paid- 07 3873572.00
TOTAL 71357052.57 TOTAL 71357052.57
Reserves and surplus 537014300.20 Less: Depreciation ---------------------
Loans 85915406.30 INVESTMENT 600259.00
Suspense 3444808.93 Cash at bank 61187786.16
Deposit 8613186.089 Advances 49701553.25
sundries 121366173.13 other assets 51695225.44
Other sundries 65532462.01 Accumulated loss 156695096.46
Cane bills and Other 32326689.23

payable
Creditor -------------------
TOTAL 977017361.43 TOTAL 977017361.43
Cost of production 340402697.98 Work in progress -----------
Gross profit 54414256.14 Closing stock 287650640.00
Total 718194134.12 Total 718194134.12

charges
Bonus & Incentive 2008-09 4700000.00
Bonus & Incentive paid 5015552.80
TOTAL 78730836,38 TOTAL 78730836,38
DATA ANALIYSIS
AND
INTERPRETATION
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
13.66
2005-06 41317359.41 302304793.75
11.02
2006-07 3,79,03,469.81 337985566.07
17.44
2007-08 6,09,91,621.57 349546301.04
12.63
2008-09 5,44,14,256.14 430543494.12
GROSS PROFIT RATIO

25 23.26
20 17.44
13.66 12.63
15 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
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
4.84
5
4
3
2 1.34
1 0.62 0.38
0.34
0
2004-05 2005-06 2006-07 2007-08 2008-09
INTERPRETATION
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 Current Liabilities RATIO

308321871.3 454294589.7 0.67
2004-05
265422636.1 563620481.6 0.47
2005-06
875637598.7 623087336.2 1.40
2006-07
446111012.4 565628200.9 0.78
2007-08
471836449.8 542837550.5 0.86
2008-09
CURRENT RATIO
1.5 1.4
1 0.86
0.78
0.67
0.47
0.5
0
2004-05 2005-06 2006-07 2007-08 2008-09
INTERPRETATION:-
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
LIQUIDITY RATIO
1
0.79
0.8
0.6
0.4 0.3
0.24
0.18
0.2 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 =
Years Average Inventory Sales I Turn-Over ratio
2004-2005 192353685.5 301002504.06 1.56
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
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 0.92 0.94
0.85 0.83
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
Current assets turn-over ratio =
Current Assets
YEARS SALES CURRENT CURRENT ASSETS

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

1.2 1.13
0.97
1 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.
Operating-Efficiency Ratio:-
1) Direct Material cost to sales = Direct Material cost *100

Net-sales
YEARS Direct SALES Percentage (%)

Material
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
74 72.51
71.86
71.43
72
70
68 66.57
66 64.23
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 .
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%
8.18% 8.25%
8.00%
5.60%
6.00% 4.94%
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
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 Net-SALES Percentage (%)

Overhead
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 8.46 9.16 9.16
6.79
4 5.22
2
0
2004-05 2005-06 2006-07 2007-08 2008-09
INTERPRETATION: -
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.
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 2004-
05 & 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.
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.
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
WEBSITES
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FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.

HISTORY OF SUGAR INDUSTRY IN INDIA:-

The area of planning for industrial development began in 1950-51 &

This project A Study on ANALYSIS OF FINANCIAL PERFORMANCE ON The BASIS OF

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

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

SCOPE OF THE STUDY

Balance sheet of SSHSKL

Sampling unit : Financial Statements.

OBJECTIVES OF THE STUDY

6 DATA ANALYSIS AND INTERPRETATION

HISTORY OF SUGAR INDUSTRY IN INDIA:-

MANUFACTURING PROCESS & TECHNOLOGY:-

For sugarcane the process of retaining is carried out in following steps.

Pressing of sugarcane to extract the juice.

PFROFILE OF THE COMPANY

Address Shree Halasidnath Sahakari

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)

FAX Number (08338)221315

BACKGROUND & INCEPTION COMPANY.

OBJECTIVES AND FUNCTIONS:-

NATURE OF THE BUSINESS CARRIED

S.H.S.S.K.LTD. is co-operative sector firm. It is a manufacturing company It produces

Nature of business carried Shri Halasidhanath sahakari Sakhar Karakhana Ltd is

Raw sugar cane to sugar,

SR.NO NAME OF DISTRICT NUMBER

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.

PRESENT BOARD OF DIRECTORS ELECTED DIRECTOR

Shri. D.A.Chougale Managing Director

Shri. Babasaheb .S. Saasne Chairman

Shri .Ramagounda .R. Patil Vice- Chairman

Shri .Appasaheb .S. Jolle Director

Shri. Annasaheb .A. Patil Director

Shri. Vishawanath .S. Kamate Director

Shri. Anand .D. Ginde Director

Shri. Ramagounda .Y. Patil Director

MEMBERSHIP OF SHARE CAPITAL:-

A Class involves the grower (farmers of agriculturist)

B Class involves the institute and non-grower

Sr Member class No of Shares Share

The main competitors are as follows

Up to 40 km. three transportation facilities is provided to farmers rate structure of

Sr. No KM Rate per km Sr No KM Rate per

It is established the river Vedganga. there is sufficient supply of water required

WORKFLOW MODEL (END TO END MODEL )

PRIMARY LAST MILL BAGGASSE

MIXED JUICE Heating 65 C->Lime +SO2 application

SYRUP HEATING 100 C

A M/C B M/C C M/C

Sugar AH AH B SEED B HEAVY

C SEED C.L Molasses F.M Class

Strategic planning refer to the management processes in organization which helps in

Consultants at the Mc.Kensys company very well known management consultancy

According to waterman organizational change is not simply matter of

In their view effective organizational change may be understood to be a complex

Share Time and Purchase Store Section Sales