Contents

1
Chapter No. Description Page No.

Chapter – I Introduction 1-2

Industry profile 3-5

Company profile 6 - 10

Chapter – II Research Methodology 11 - 13

Need for the study

Objectives of the study

Sources of data

Scope & Limitations of the study

Chapter – III Data Analysis and Interpretation 14 – 54

Chapter – IV Findings & Suggestions 55 – 56

Conclusion 57

Annexure 58 – 59

Bibliography 60

2
 INTRODUCTION
Financial Management is that managerial activity which is concerned

3
with the planning and controlling of the firm’s finance. Finance is one of the

foundations of all kinds of economic activities. Finance is the life-blood of a

business. The financial management study deals with the process of

procuring necessary financial resource and their judicious use with a view to

maximizing the value of the firm and there by the value of the owners i.e.

equity share holders in a company. Practicing managers are interest in this

subject because among the most crucial decisions of the firm are those which

relate to finance, and an understanding of the theory of financial management

provides them with conceptual and analytical insights to make those decisions

skillfully.

FINANCIAL MANAGEMENT

Financial Management emerged as a distinct field of study at the turn

of this century many eminent persons defined it in the following ways.

DEFINITIONS: -

According the BONNEVILE AND DEWEY:” Financing consists in the

rising, providing and managing of all the money, capital or funds of any kind to

be used in connection with the business”.

According to Prof.EZRA SOLOMAN:”Financial Management is

concerned with the efficient use of any important economic resource, namely

capital funds”.

FINANCE FUNCTIONS: -

It may be difficult to separate the finance functions from production,

marketing and other functions, but the functions themselves can be readily

4
identified. The functions of raising funds investing them in assets and

distributing returns earned from assets to shareholders are respectively

known as.

1. Long – term assets-mix (or) Investment Decision

2. Capital – Mix (or) Financing Decision

3. Profit allocation (or) Dividend Decision

4. Short – term asset –Mix (or) Liquidity Decision

GOALS OF FINANCIAL MANAGEMENT:-

• Maximize the value of the firm to its equity shareholders.

• Maximization of profit

• Maximization of earnings per share.

• Maximization of return on equity (defined as equity earnings/net worth)

• Maintenance of liquid assets in the firm.

• Ensuring maximum operational efficiency through planning directing

and controlling of the utilization of the funds.

• Building up of adequate reserves for financing growth and expansion.

INDUSTRY PROFILE
Sugarcane is one of the important crops for the Indian Farmer. Sugar

and Jiggery are the main products that we get from sugarcane. Sugarcane

5
belongs to the genus SACCHARAM. The word Sugar is derived from the

Sanskrit word SHARKARAM from which the word SACCHARAM seems to

have been derived indicates the antiquity of knowledge of sugarcane in India.

Sugar Industry is the second largest agro-based industry in India, next to

textiles, producing an all time record of 186.22 lakh tones of direct plantation

sugar as on 30th Arial, 2003. It has emerged as the largest vacuum pan sugar

producer in the world.

Sugarcane is grown in about 102 countries in the world and India

occupies the first rank from the point of area followed by Brazil and Cuba.

Andhra Pradesh occupies the fifth place with regard to cane and cane

production in the country. There are around 490 sugar mills across the

country with an aggregate installed capacity of 16.2 million tones.

The history of sugar industry in India begins in 1903 when a sugar

factory was set up in Bihar and U.P each. In 1932 there were 32 factories

operating in the country. In India, the cultivation of sugarcane is 10,000 miles

tones. The average yield being 56 tones per acre of total cultivating land is

occupied by sugarcane cultivation. Sugarcane is grown in almost all part of

India, except in colder regions and extreme North Jammu& Kashmir,

Himachal Pradesh. The industry has developed at a fast rate in Maharashtra,

Andhra Pradesh, Karnataka and Tamil Nadu. In India U.P leads other States

in Sugarcane production, followed by T.N and Maharashtra.

Sugar comes under the Essential Commodities Act. Ipso facto, there

has been control on all facets of the sugar trade. The licensing regime that

regulates the installed capacity, the minimum support price for cane, the

6
 reservation of can area for mills and the control over price and movement of

sugar as well its byproduct molasses, have all triggered a situation totally out

of sync with market realities.

The Central Government will allot monthly sales sugar quota for each

factory based on the stock available in the concerned factory Godown. The

Central Government removed the controls imposed under the Essential

Commodities Act, 1955 on stocking and movement and requiring licensing of

dealers in respect of specified commodities with effect from 14th March, 2002

vide government of India’s Notification No. GSR 104(E), dated 15th February,

2002. With the coming into effect of the above order any dealer may freely

by, stock, sell, transport, distribute, dispose, acquire, use or consume any

quantity of wheat, paddy/rice, coarse grains, sugar, edible oil seeds and

edible oil and shall not require a permit or license therefore under any order

issued under the Essential Commodities Act, 1955.

Area wise distribution of sugar industry in A.P.

S.No Sector No. of Costal Rayalaseem Telangana

Industries Area a
1 Co-operative 18 12 4 2

7
2 Public sector 7 1 1 5
3 Private sector 11 8 2 1
Total 36 21 7 8

The list of Co-operative Sugar factories in A.P.

1. The Chittoor Co-operative sugars ltd, Chittoor.
2. The Chodavaram Co-operative sugars ltd, Chodavaram.
3. The Anakapalle Co-operative sugars ltd, Anakapalle.
4. The Etikuppaka Co-operative agricultural of industrial society ltd,
Ethikuppaka.
5. Sir Vijayarama Gajapathi Co-operative sugars ltd.
6. The Amadavalasa Co-operative agricultural industrial society ltd,
Srikakulam.
7. The West Godavari Co-operative sugars ltd, Eluru.
8. Palakollu Co-operative agricultural & industrial society ltd, Palakollu.
9. The Thandara Co-operative sugars ltd, Visakapatnam.
10. Nizamabad Co-operative sugars ltd, Nizamabad.
11. Sir Venkateswara Cooperative sugars ltd, Renigunta.
12. The Cuddapah Co-operative sugars ltd, Chennur.
13. The Nandyal Co-operative sugars ltd, Ponnapuram.
14. The Kovur Co-operative sugars ltd, Nellore.
15. Nagarjuna Co-operative sugars mills ltd, Gurzala.
16. Nampaneni Venkata Rao Co-operative sugars ltd, Hanuman
Junction.
17. Sri Hanuman Co-operative sugars ltd, Hanuman Junction.
18. Palair Co-operative sugars ltd, Ammagudem.

8
COMPANY PROFILE
INTRODUCTION: -
The Chittoor Co-operative Sugars Limited, Chittoor is the first agro-

based major Industry in Rayalaseema area. It was first registered on

22.08.1955 under the APCS Act. Its area of operation comprises of 192

villages in 21 Mandals. Factory is located along Cudalore - Kurnool National

High way No 18, 3 KM towards Kurnool from Chittoor town. It owns 85.96

acres of land. It was first commissioned on 18.1.1963 with a licensed and

installed capacity of 1000 tones cane crushing per a day. During 1974 its

cane crushing capacity has been expanded to 1600 tones a day. Since 1989

modernization is being done in phases. Presently factory is working at an

average cane crushing of 1800-2000 tones a day.

Capital Structure: -

Original project cost was RS.128.50 lakhs.

Present value of the Assets as on 31.3.2000

Rs.lakhs

a) Land 497.19

b) Buildings 423.85

c) Plant & Machinery 1155.70

d) Other Assets 34.73

e) Transport Vehicles 19.94

f) Total 2131.41

9
Management: -

At present the elected board has assumed charge on 06.04.2000.

The present board of Directors as detailed below:

President 1

Board of Directors 14

Employees Director 1

Total 16

Chief Executive & Functioning of various Departments: -

a) Chief executive of the society is Managing Director having a seat on

the Board.

b) There are five major departments:

1. Administrative

2. Engineering

3. Manufacturing

4. Agriculture

5. Accounts & finance

c) All aspects of Accounting, sugar cane weighment and laboratory

analysis reports are computerized during 1989-90. For better cane

regulation, wireless System was also introduced during 1989. At all 8

division Head Quarters and at Administrative Office Wireless Stations

and sets are installed.

d) All policy matter is decided by Board/person-in-charge.

10
Cane price: -

Before commencement of sugar cane crushing season, Government of

India notifies statutory minimum cane price payable by each sugar factory.

This is to be paid with in 14 days from the date of purchases. Over and above

the statutory minimum cane price state Government announces a State

advisory price payable by each Sugar Factory. This SAP is being paid by us.

We have crushed cane for the season 1999-2000 is 2, 82,202,592 Mts with

an average recovery 9.03%.

Sugar: -

Out of total sugar production of each season, 30% shall be delivered

to Government nominees for public distribution system at notified levy price.

For every season Government of India Notifies levy sugar price applicable to

each Sugar Factory. Every month. Open market sugar is sold on tender

system and is delivered against payment of cost plus duties.

Molasses: -

Molasses is a by product in the courses of manufacture of sugar. From

1993 June molasses prices are decontrolled. Molasses is sold by inviting

tenders on All India basis by publishing Tender notice.

Engineering & Manufacturing Departments: -

During off season engineering and manufacturing departments attend

to overhauling and preventive maintenance and keep ready the plant for Cane

Crushing. During season factory works round the Clock in three shifts.

11
Cane Department:-

Cane department is provided with sufficient executive staff. They

collect cane supply offers, from cane growers. Offers are being accepted

restricting the quantities to individual member's 5 years supply average. Crop

loans are sanctioned by Banks under tie up arrangements with factory. One

month before commencement of Cane crushing, prepares maturity survey is

conducted by drawing cane samples from agreement Cane fields. They are

analyzed in Factory’s laboratory. Based on the analysis, cane harvest &

supply permits are issued to cane supply members limiting to factories daily

cane crushing capacity. Factory provides about 60 to 80 hired Lorries to

needy growers. 50% of transport charges up to 40km distance are subsidized

by factory. Transport charges beyond 40 km are subsidized 100%.

Liaison Farm: -

Factory is having a sugar cane liaison farm in an extent 4.80 Hec.

Factory brings improved varieties from sugar Cane research stations

multiplies in its liaison farm and supplies seed to growers.

Total Strength of the Establishment:-

1. Permanent (Non Seasonal) 68

2. Seasonal Permanent 94

3. Consolidate Wages (Seasonal) 167

4. Daily Wager (NMR) 244

5. Total 573

12
Wage Structure: -

The Wages of workers are covered by "Sugar Wage Board"

recommendations at “All India level". The minimum monthly wage of an

unskilled worker at starting of timescale is Rs.3901/-.Sugar year (season) is

recorded from 1st Oct to 30th Sep next year. Generally cane crushing

operations are commenced during 3rd week of November and continued up to

end of April next year. From May to October is off-season.

13
14
RESEARCH METHODOLOGY

NEED OF THE STUDY

Financial statements are prepared for the purpose of presenting a

periodical review or report by the management and deal with the state of

investment in business and result achieved during the period under review.

They reflect a combination of recorded facts, accounting conventions and

personal judgments.

The Ratio Analysis is the most powerful tool of the financial analysis.

These people use rations to determine those financial characteristics of the

firm in which they are interested. With the help of ratios, one can determine:

1. The ability of the firm to meet its current obligations.

2. The extent to which the firm has used its along-term solvency by

borrowing funds.

3. The efficiency with which the firm is utilizing its assets ingenerating

sales revenue.

4. The overall operating efficiency and performance of the firm.

OBJECTIVES OF THE STUDY

The following are the objectives of the study:

• To assess the liquidity and profitability of CCS Ltd.

• To study financial position of the CCSL Ltd.

• To analyses the turn over efficiency of The CCS Ltd.

• To know the impact of liquidity solvency and turnover efficiency on the

shareholders of The CCS Ltd.

• To suggest feasible solution to improve the overall efficiency of The

15
 CCS Ltd.

SOURCES OF DATA

Primary Data

The primary data was collected mainly with the interactions and

discussions with the company’s executives.

Secondary Data

Most of the calculations are made on the financial statements of the

company and the company provided financial statements for 5 years.

Some of the information regarding to the theoretical aspects were

collected by referring standards texts and through internet.

SCOPE OF THE STUDY

• This project is as a reference guide or as a source of information. It

gives the idea about the financial analysis of a firm.

• The study aims to study the liquidity position of the firm. Ratio Analysis

has been used to analyses the financial position of a firm.

• It deals with analysis an interpretation of data collected through the

sources primary and secondary data. Graphs and diagrams and

tabulation method are used to analyze and interpret the data collected.

LIMITATIONS OF THE STUDY

• The information used is primarily from historical reports available to the

16
 public and the same doesn’t indicate the current situation of the firm.

• Detailed analysis could not be carried for the project work because of

the limited time span.

• Since financial matters are sensitive in nature these same could not be

acquired easily.

17
 RATIO ANALYSIS

Ratio Analysis is one of the powerful tools of the financial analysis. A

ratio can be defined as “The indicated quotient of two mathematical

expressions” and as “the relationship between two or more things”. Ratio is

18
thus, the numerical or an arithmetical relationship between two figures”. Ratio

is, thus, the numerical or an arithmetical relationship between two figures. It

is expressed where on figure is divided by another. In finance analysis ratio is

used as a benchmark of a firm.

A ratio is the relationship between two accounting items expressed

mathematically. Ratio analysis helps the analyst to make quantitative

judgment with regard to concern’s financial position and performance. This

relationship can be expressed as a percentage or as quotient.

Ratio analysis is the systematic use of ratio to interpret the financial

statements so that the strengths and weakness of a firm as well as its

historical performance and current financial position can be determined.

Undisputedly the ratio analysis occupies place of prime importance.

DEFINITION:-

According to Prof. Spring field, Prof. Mass & Merrium, a ratio is defined

as “The indicated quotient of two mathematical impression” and as “The

relationship between two (or) more things”

SIGNIFICANCE OF RATIO ANALYSIS

Ratio analysis is of great help of commercial bankers, trade creditors

and institutional lenders. They judge the ability of borrowing enterprises by

observing various ratios like the current ratio, acid test ratio, and turnover of

19
receivables, inventory turnover, and coverage of interest by the level of

earnings.

Ratio analysis also helps long term creditors in knowing the ability of a

borrowing enterprises to pay interest principal in case earnings decline they

find valuable the ratios of total debt to equity and total debt to total assets.

Investors in shares judge the performance of the company by

observing the per share into ratios like earnings per share, book value per

share, market price per share, dividends per share etc.

Lastly, ratio analysis is of great use of the management of the firm.

Management of the firm is interested in every aspect of ratio analysis as it is

their over all responsibility to see that the resources of the firm are used most

efficiently and effectively and that the firms financial conditions is sound.

STANDARDS FOR COMPARISON

For making a proper use of ratios, it is essential to have fixed standard

for comparison. A ratio by itself has very little meaning unless it is compared

to some appropriate standard. Selection of proper standards of comparison is

a most important element is ratio analysis. The four most common standard

used in ratio analysis are as follows:

1. Absolute 2. Historical

3. Horizontal 4. Budgeted

1. Absolute: -

Absolute standards are those, which become generally recognized as

being desirable regardless of the type of the company, the time, stage of

business cycle, or the objectives of the analyst.

20
2. Historical: -

Historical standards involve comparing a company’s own past

performance as a standard for the present or future. But this standard may

not provide sound basis for judgment, as the historical figure a may not have

represented an acceptable standard.

3. Horizontal: -

Incase of horizontal standards one company is compared with another

or with average of other companies of the same nature. It is also called as

intra-firm comparison.

4. Budgeted: -

The budgeted standard is arrived at after preparing the budget for a

period. Ratios developed from actual performance are compared to the

planned ratios in the budget to examine the degree of accomplishment to the

anticipated targets of the firms.

ADVANTAGES OF RATIO ANALYSIS

1. It facilitate inter firm comparison. It reveals how well it serves. As a

useful aid in financial forecasting future trends can be known in

advance based on ratios relating to part sales, profits and financial

position.

2. It facilitates comparative study of the performance and, progress of a

firm over a period of years. Such a study will reveal the directions in

which the firm is moving.

3. It serves as a useful tool for cost control. It reveals now efficiently a

21
 firm is managed and how effectively its assets are utilized.

• It serves as a means of communication to report on the strength and

financial standing of a firm to the management and external parties.

• It facilitates trend analysis. It reveals the progress or decline of a firm over

the years.

• It serves as diagnostic too to assess the financial health of a firm. It

through light on its liquidity, solvency, profitability and capital gearing

position.

OBJECTIVES OF RATIO ANALYSIS

Ratio Analysis is the principal tool for analysis of financial statements.

Other conducts it not only by management but also like suppliers, banks

tending, and institutions, prospective investors etc.

The following are usually the objectives for which ratio analysis

is conducted.

I. To evaluate financial position and performance of a firm.

II. To indicate the trend or progress or down fall of a firm.

III. To assess the credit worthiness of a firm,

IV. To assess the efficiency with which working capital is being used in

a firm.

LIMITATIONS OF RATIO ANALYSIS

Standards for Comparison

Ratios of a company have meaning only when they are compared with

some standards and it is always a challenging job to find and adequate

22
standard.

Company Differences

Situations of two companies are never same. Similarly the factors

influencing the performance of a company in one year change in another

year. Thus, the comparison of the ratios of two companies becomes difficult

and meaning less when are operating in different situations.

Price Level Challenges

The interpretation and comparison of the ratios are also rendered

invalid by the changing value of money; a change in the price level can

seriously affect the validity of comparison of ratios computed for different time

periods.

A STUDY OF RATIO ANALYSIS

Several ratios, calculated from the accounting date, can be grouped

into various classes according to financial activity or function to be evaluated.

Ratios are complied and studied for profitability’s, assessment of financial

position sufficiency of working capital strategies perused by the organization

short term and long term solvency. Liquidity etc

TYPES OF RATIOS

Classification according to nature of accounting statements is divided

into three categories there are:

23
1. Balance sheet Ratios

2. Profit and Loss A/C Ratios

3. Combined Ratios

24
1. Balance sheet Ratios: -

These ratios are calculated to judge the financial position of the

concern from long-term as well as short-term solvency point of view. These

ratios can be divided into two broad categories.

A. Liquidity Ratios: -

If it is decided to study the liquidity position of the concerns, in order to

highlight the relative strength of the concerns in meeting their current

obligations to maintain sound liquidity and to pin point the difficulties if any in

it, then liquidity ratios are calculated. These ratios are used to measure the

firm’s ability to meet short-term obligations. The important liquidity ratios are:

CURRENT RATIO:-

This is the most widely used ratio. It is the ratio of current assets to

current liabilities. It shows a firm’s ability to cover its current liabilities with its

current assets. This is also known as Working Capital Ratio. It is expressed

as follows:

25
 Current Assets
Current Ratio =
Current Liabilities

Generally current ratio of 2:1 is considered ideal for a concern i.e.,

Current Assets should be twice of the Current Liabilities.

TABLE 4.1
Year Wise Total Current Assets and Current Liabilities of
The CCSL Ltd., Chittoor.

YEAR CURRENT ASSETS CURRENT LIABILITIES RATIO

IN %
2002-2003 28,77,42,756 18,91,05,178 1.52
2003-2004 17,58,61,331 14,23,09,387 1.20
2004-2005 20,80,30,364 14,87,32,016 1.40
2005-2006 38,19,73,121 18,96,05,315 2.00
2006-2007 37,30,29,183 27,31,27,341 1.40

(Source: Annual Reports of the CCSL)

26
RATIOS

2.5

2
2006-07
1.5 2005-06
2004-05
1 2003-04
2002-03
0.5
YEARS
0
2003 2004 2005 2006 2007

INTERPRETATION: -

Current ratio measures the firm’s short-term solvency. The standard

norm for current ratio is (2:1). It is evident that in the year 2005-06 Current

Ratio 2.00 is satisfactory. In remaining years current ratio is less then 2 is not

satisfactory. There fore it can be calculated that the liquidity performance of

the company is poor.

QUICK RATIO: -

It shows a firm’s ability to met current Liabilities with its most liquid

(quick) Assets. Liquid Assets are those assets, which are readily converted

27
into cash. This is also known as Liquid Ratio and Acid Test Ratio. It is

calculated as under;

Liquid Assets
LiquidRatio =
CurrentLiabilities

TABLE 4.2

Year Wise Liquid Assets and Current Liabilities of

The CCSL Ltd., Chittoor.

YEAR LIQUID ASSETS CURRENT RATIO

LIABILITIES
IN %

2002-2003 6,80,79,952 18,91,05,178 0.36

2003-2004 7,90,11,591 14,23,09,387 0.55

2004-2005 9,79,87,205 14,87,32,016 0.66

2005-2006 7,66,08,657 18,96,05,315 0.40
2006-2007 9,34,86,511 27,31,27,341 0.34

(Source: Annual Reports of the CCSL)

28
RATIOS YEARS

0.7
0.6
0.5 2006-07
2005-06
0.4
2004-05
0.3
2003-04
0.2 2002-03
0.1
0
2003 2004 2005 2006 2007

INTERPRETATION: -

This is the more penetrating test of liquidity than the current ratio.

Generally a quick ratio is 1:1 it considered to represent a satisfactory current

financial condition. The quick ratio has never exceeded the standard ratio.

Empirically the quick ratio has increased from 0.36 to 0.66 in 2002-03 to

2004-05 and declined from 0.40 to 0.34 in 2005-06 to 2006-07. Therefore it

can be concluded the liquidity performance of the company is absolutely poor.

CASH RATIO: -
Cash is most liquid Asset, a financial analyst may examine cash ratio

and it’s equivalent to current liabilities. Trade investment or marketable

29
securities are equivalent of cash; therefore, they may be included in the

computation of cash ratio. This Ratio also known as Absolute and Super

Quick Ratio.

CashandBank Balance + Short − termmarketable

SecuritiesCashRatio =
CurrentLiabilities

TABLE 4.3

Year Wise Cash and Bank Balance plus short term securities and

Current Liabilities of

The CCSL Ltd., Chittoor.

RATIO
YEAR CASH AND BANK CURRENT LIABILITIES
IN %
2002-2003 53,79,219 18,91,05,178 0.028
2003-2004 1,59,03,765 1,23,09,387 0.11

2004-2005 2,00,18,969 14,87,32,016 0.13

2005-2006 73,90,813 18,96,05,315 0.03
2006-2007 1,79,39,018 27,31,27,341 0.06

(Source: Annual Reports of the CCSL)

30
RATIOS YEARS

0.14
0.12
0.1 2006-07
0.08 2005-06
0.06 2004-05
2003-04
0.04
2002-03
0.02
0
2003 2004 2005 2006 2007

INTERPRETATION: -

The desirable norm for cash ratio is 1:2. The cash ratio is very low in

2002-03, 2005-06 and 2006-07 years. There after it is increased slightly that

is 0.028, 0.11 and 0.13 on the years 2002-03 to 2004-05 respectively and

declined in 2005-06 to 0.03 then increases in 2006-07 to 0.06. Anyway finally

the company failed in keeping sufficient cash and bank balance and

marketable securities.

B. CAPITAL STRUCTURE RATIOS: -

These ratios help in ascertaining the long term solvency of a firm which

depends on firm’s adequate resources. To meet its long term funds

31
requirements, appropriate debt equity mix to raise long term and earnings to

pay interest and installment of long term loans in time. The following ratios

can be calculated for this purpose:

DEBT EQUITY RATIO: -

This ratio is calculated to measure the relative proportions of outsider’s

funds and shareholders funds invested in the company. This ratio is

determined to ascertain the soundness of long-term financial policies of the

company and is also known as external equity ratio. It is calculated as

follows.

Term liabilities + Current Liabilities

Total Debt Ratio =
Equity

Debt to equity Ratio of 2:1 in case of (i) and 2:3 in cases (ii) are acceptable.

TABLE 4.6
Year Wise Fixed Assets and Capital Employed of
The CCSL Ltd., Chittoor.

SHAREHOLDERS RATIO
YEAR LONG TERM DEBTS
FUNDS IN %
2002-2003 26,44,52,746 36,03,55,888 0.73
2003-2004 25,26,34,919 36,96,88,184 0.68
2004-2005 29,52,27,768 38,90,49,404 0.76
2005-2006 43,53,64,852 39,30,37,111 1.10
2006-2007 44,09,04,310 39,81,47,818 1.10

(Source: Annual Reports of the CCSL)

32
 1.2
RATIOS

0.8 2006-07
2005-06
0.6
2004-05
0.4 2003-04
2002-03
0.2
YEARS
0
2003 2004 2005 2006 2007

INTERPRETATION: -

This ratio gives results relating to the capital structure of the firm. 2:3 is

the acceptable Debt Equity Ratio. Empirically the debt equity ratio declined

only in the year of 2003-04 (0.68) remaining that all years were increased

from 0.78 to 1.10. Therefore 1.10 means lenders have financed of CCSL

Capital Employed in 2006-07.

PROPRIETORY RATIO: -
A variant of debt to equity ratio is the proprietary ratio, which shows the

relationship between shareholders funds and total tangible assets. It focuses

the attention on the general financial strength of the business enterprise. This

ratio is worked out as follows:

33
 Shareholders Funds
Proprietary Ratio =
Total tangible Assets

TABLE 4.7
Year Wise Shareholders funds and Tangible Assets of
The CCSL Ltd., Chittoor.

YEAR SHAREHOLDERS TOTAL TANGIBLE RATIO

FUNDS ASSETS IN %
2002-2003 36,03,55,888 44,71,78,755 0.80
2003-2004 36,96,88,184 33,48,90,237 1.19

2004-2005 38,90,49,404 35,26,39,909 1.10

2005-2006 39,30,37,111 53,78,62,810 0.73
2006-2007 39,81,47,818 51,71,71,520 0.76

(Source: Annual Reports of the CCSL)

34
RATIOS

1.2

0.8 2006-07
2005-06
0.6
2004-05
0.4 2003-04
2002-03
0.2 YEARS
0
2003 2004 2005 2006 2007

INTERPRETATION:-

The proprietary ratio is variant of Debt Equity ratio. The standard norm

for proprietary Ratio is 1:3. The shareholder funds are high then compare to

total tangible assets. Empirically in the years 2003-04 and 2004-05 it is very

high that is 1.19 and 1.10. Therefore the company having a poor proprietary

ratio.

2) PROFITABILITY RATIO: -
Profitability is the overall measure of the companies with regard to

efficient and effective utilization of resources at their command.

35
 A company should earn profits to survive and grow over a long period

of time. Profitability reflects the final result of business operation of the

business, to be able to funds from investors and for expansion and growth

and to contribute toward social overheads for the welfare of the society.

GROSS PROFIT RATIO: -

The gross profit should be adequate to cover fixed expenses dividends

and building up of reserves. Higher the ratio, the better it is. A low ratio

indicates unfavorable trend in the form of reduction in selling prices. This ratio

tells gross margin on trading and is calculated as under:

GrossPr ofit
GrossPr ofitRatio = × 100
Net Sales

TABLE 4.25
Year Wise Gross Profit and Net Sales of
The CCSL Ltd., Chittoor.

RATIO
YEAR GROSS PROFIT NET SALES
IN %
2002-2003 -3,76,45,558 20,14,86,573 -0.186
2003-2004 -2,50,57,043 13,05,17,437 -0.191
2004-2005 -53,23,482 6,99,20,394 -0.07
2005-2006 4,96,30,153 12,40,87,187 0.399
2006-2007 -3,64,74,371 36,88,53,567 -0.098

(Source: Annual Reports of the CCSL)

36
RATIOS

0.4

0.3

0.2 2006-07
2005-06
0.1
2004-05
0 2003-04
2002-03
-0.1
YEARS
-0.2
2003 2004 2005 2006 2007

INTERPRETATION: -

It expresses the relationship of gross profit on sales. A high gross

profit ratio indicates a sign of good management as it implies that the cost of

production is kept at low level. The GP Ratio seems negative balance accept

the year 2006-07 of 39.9. The CCSL is maintaining poor grass profit ratio.

OPERATING RATIO:-
This ratio indicates the proportion that the cost of sales bears to sales.

Cost of sales includes direct cost of goods sold as well as other operating

37
expenses (i.e., Administration, Selling and Distribution Expenses) which have

matching relationship with sales. It is calculated as Follows:

Cost of GoodsSold + OperatingExpenses

OperatingRatio = × 100
Net Sales

TABLE 4.26
Year Wise Cost of Goods Sold, Operating Expenses and Net Sales of
The CCSL Ltd., Chittoor.

COST OF GOODS SOLD + RATIO

YEAR NET SALES
OPERATING EXP., IN %
2002-2003 180854056 201486573 0.897
2003-2004 43149294 130517437 0.330

2004-2005 126380237 69920394 1.807

2005-2006 297068848 124087187 2.394
2006-2007 399471811 368853567 1.083

(Source: Annual Reports of the CCSL)

38
RATIOS

2.5

2
2006-07
1.5 2005-06
2004-05
1
2003-04
0.5 2002-03
YEARS
0
2003 2004 2005 2006 2007

INTERPRETATION: -

The lower ratio is better then higher the ratio, the less favourable it is

because it would have a smaller margin of operating profit for the payment of

dividends and the creation of reserves. The above table shows in the year

2005-06 is high operating ratio 239.4. The less operating ratio was recorded

in 2003-04 33. Therefore the poor performance of CCSL in Operating Ratio.

3) COMBINED RATIOS: -

NET WORKING CAPITAL RATIO: -

39
 The difference between Current Assets and Current Liabilities

excluding short-term bank borrowing in called Net Working Capital or Net

Current Assets. Net Working Capital is some times used as a measure of a

firm’s Liquidity.

Net WorkingCapital
Net WorkingCapitalRatio =
Net Assets

TABLE 4.5
Year Wise Net Working Capital and Net Assets of
The CCSL Ltd., Chittoor.

NET WORKING RATIO

YEAR NET ASSETS
CAPITAL IN %
2002-2003 9,86,37,579 62,48,08,634 0.158
2003-2004 3,35,51,944 6,22,32,103 0.54

2004-2005 5,92,98,349 68,42,77,172 0.86

2005-2006 19,23,69,866 82,84,01,963 0.23
2006-2007 9,99,01,841 83,53,54,221 0.20

(Source: Annual Reports of the CCSL)

40
RATIOS

0.9
0.8
0.7
0.6 2006-07
0.5 2005-06
0.4 2004-05
0.3 2003-04
0.2 2002-03

0.1 YEARS
0
2003 2004 2005 2006 2007

INTERPRETATION: -

The Net Working Capital Ratio declined from 0.86 in 2004-05 to 0.12 in

2006-07 and increased 0.16 in 2002-03 to 0.86 in 2006-07. The company has

not sufficient working capital. The lowest ratio in the year 2006-07 is 0.20 and

the highest ratio in the year 2004-05 is 0.86.

FIXED ASSETS TURNOVER RATIO: -

It measures the efficiency of the Assets use. The efficient use of

assets will generate greater sales per rupee invested in all the Assets of a

41
concern. This ratio shows how well the fixed assets are being used to

generate sales in the business.

The ratio expresses the number of times fixed assets are being

turnover in a stated period. It is calculated as under:

Sales
Fixed Assets Turnover Ratio =
NetFixed Assets

TABLE 4.11
Year Wise Sales and Net Fixed Assets of
The CCSL Ltd., Chittoor.

RATIO
YEAR SALES NET FIXED ASSETS
IN %
2002-2003 20,14,86,573 22,21,36,732 0.91
2003-2004 13,05,17,437 22,21,36,732 0.59

2004-2005 6,99,20,394 22,25,77,781 0.31

2005-2006 12,40,87,187 22,51,07,533 0.55
2006-2007 36,88,53,567 23,58,34,849 1.56

(Source: Annual Reports of the CCSL)

42
RATIOS

1.8
1.6
1.4
2006-07
1.2
2005-06
1
2004-05
0.8
2003-04
0.6
2002-03
0.4
0.2 YEARS
0
2003 2004 2005 2006 2007

INTERPRETATION: -

This ratio measures the efficiency of the assets use. The high ratio is

the better performance. On the other hand, a low ratio indicates that fixed

assets are not being efficiently utilized. Therefore the CCSL did not utilize

well. Only in the years 2002-03 and 2006-07 utilized the fixed Assets

effectually.

TOTAL ASSETS TURNOVER RATIO: -

This ratio is calculated by dividing the net sales by the value of total

assets. A higher ratio is an indicator of over-trading of total assets while a low

43
reveals idle capacitor. The traditional standard for the ratio is two times.

Net Sales
Total Assets Turnover Ratio =
Total Assets

TABLE 4.12
Year Wise Net Sales and Total Assets of
The CCSL Ltd., Chittoor.

RATIO
YEAR SALES TOTAL ASSETS
IN %
2002-2003 20,14,86,573 51,46,60,808 0.39
2003-2004 13,05,17,437 40,27,85,783 0.32

2004-2005 6,99,20,394 43,59,05,864 0.16

2005-2006 12,40,87,187 60,98,74,373 0.20
2006-2007 36,88,53,567 61,16,60,751 0.60

(Source: Annual Reports of the CCSL)

44
RATIOS

0.7
0.6

0.5 2006-07
0.4 2005-06
2004-05
0.3
2003-04
0.2 2002-03
0.1
YEARS
0
2003 2004 2005 2006 2007

INTERPRETATION: -

The traditional standard for the ratio is two times. In the year 2006-07

got the higher total Assets Turnover ratio 0.60 on other hand lower ratio got in

the year 2004-05 of 0.16. Therefore the CCSL indicates idle capacity of total

Assets.

CURRENT ASSETS TURNOVER RATIO: -

By calculating this ratio we can that, for generating a sale of one rupee

45
we can know how much they company invested in current assets.

Sales
Current Assets Turnover Ratio =
Current Assets

TABLE 4.13
Year Wise Sales and Current Assets of
The CCSL Ltd., Chittoor.

RATIO
YEAR SALES CURRENT ASSETS
IN %
2002-2003 20,14,86,573 28,77,42,756 0.70`
2003-2004 13,05,17,437 17,58,61,331 0.74

2004-2005 6,99,20,394 20,80,30,364 0.34

2005-2006 12,40,87,187 38,19,73,121 0.32
2006-2007 36,88,53,567 37,30,29,183 0.99

(Source: Annual Reports of the CCSL)

46
RATIOS

1.2

1
2006-07
0.8
2005-06
0.6 2004-05
2003-04
0.4
2002-03
0.2
YEARS
0
2003 2004 2005 2006 2007

INTERPRETATION: -

The higher CATR more efficient in management and utilization of

assets. Empirically the current asset turnover ratio is declined from 0.74 to

0.32 in years 2003-04 to 20005-06. The higher turnover recorded in the year

2006-07 i.e. 0.99. Therefore we conclude that the current Asset turnover ratio

of company shows poor results.

INVENTORY TURNOVER RATIO: -

It denotes the speed at which the inventory will be converted into sales,

thereby contributing for the profits of the concern. When all other factors

remain constant, greater the turnover of inventory more will be efficiency of its

47
management. This ratio is calculated as follows:

Cost of GoodsSold
Inventory Turnover Ratio =
Average Stock heldduring thePeriod

TABLE 4.14

Year Wise Cost of Goods Sold and Average Stock held during

the period of

The CCSL Ltd., Chittoor.

COST OF GOODS RATIO

YEAR AVERAGE STOCK
SOLD IN %
2002-2003 16,82,44,221 23,41,47,891 0.718
2003-2004 3,26,16,707 13,75,97,982 0.237

2004-2005 1,15,24,675 8,28,84,312 0.139

2005-2006 26,08,49,917 18,27,22,687 1.427
2006-2007 38,23,18,650 26,48,82,289 1.443

(Source: Annual Reports of the CCSL)

48
RATIOS

1.6
1.4
1.2 2006-07
1 2005-06
0.8 2004-05
0.6 2003-04
0.4 2002-03
0.2 YEARS
0
2003 2004 2005 2006 2007

INTERIPRETATION: -

The inventory turnover ratio indicates the efficiency of the firm in

producing and selling its products. A low inventory turnover implies excessive

inventory levels than required for production. The company have high ratio of

inventory except in the 2005-06 i.e. 0.139 it is not good. That is all stock

stored in god owns.

CAPITAL TURNOVER RATIO: -

It shows the efficiency of capital employed in the business by

49
computing how many times capital employed is turned-over in a stated period.

The ratio is ascertained as follows:-

Sales
CapitalTurnover Ratio =
CapitalEmployed

TABLE 4.15
Year Wise Sales and Capital Employed of
The CCSL Ltd., Chittoor.

RATIO
YEAR SALES CAPITAL EMPLOYED
IN %
2002-2003 20,14,86,573 62,48,08,634 0.32
2003-2004 13,05,17,437 62,23,23,103 0.21

2004-2005 9,69,20,394 68,42,77,172 0.14

2005-2006 12,40,87,187 82,84,01,963 0.15
2006-2007 36,88,53,567 83,90,52,028 0.44

(Source: Annual Reports of the CCSL)

50
 0.5
RATIOS

0.45
0.4
0.35 2006-07
0.3 2005-06
0.25 2004-05
0.2 2003-04
0.15 2002-03
0.1
0.05 YEARS
0
2003 2004 2005 2006 2007

INTERPRETATION: -

The high capital turnover ratio it indicates greater profit on other hand

when it is low it indicates sufficient sales are not being made and profits and

lower. Empirically, the actual capital turnover ratio has declined from 0.32 to

0.14 and increased from 0.15 to 0.44 in 2005-06 to 2006-07. Finally the CCSL

capital Turnover Ratio is not Satisfactory. In the year 2006-07 is 0.44 the

CTR recorded.

WORKING CAPITAL TURNOVER RATIO: -

This ratio is also known as Sales to Working Capital. It shows the

number of times working capital is turned-over in a stated period. The higher

51
is the ratio, the lower is the investment in working capital and the greater are

the profits. It is calculated as follows.

Sales
WorkingCapitalTurnover Ratio =
Net WorkingCapital

TABLE 4.16
Year Wise Sales and Net Working Capital of
The CCSL Ltd., Chittoor.

NET WORKING RATIO

YEAR SALES
CAPITAL IN %
2002-2003 20,14,86,573 9,86,37,578 2.04
2003-2004 13,05,17,437 3,35,51,944 3.89

2004-2005 6,99,20,394 5,92,98,348 1.18

2005-2006 12,40,87,187 19,23,67,806 0.64
2006-2007 36,88,53,567 9,99,01,842 3.69

(Source: Annual Reports of the CCSL)

52
RATIOS

4.5
4
3.5
2006-07
3
2005-06
2.5
2004-05
2
2003-04
1.5
2002-03
1
0.5 YEARS
0
2003 2004 2005 2006 2007

INTERPRETATION: -

This ratio measures the relationship between sales and net working

capital. In the years2003-04 and 2006-07 recorded as the highest working

capital turnover ratio i.e. 3.89 and 3.69 respectively. In the year 2005-06

recorded as the lowest working capital turnover ratio. The higher indicates

more favorable it is for the company. In CCSL WCTR is highly fluctuating in

the ratios

DEBTORS TURNOVER RATIO: -

It indicates the number of times on the average the receivable is turn

over in each year. The higher the value of ratio, the more is the efficient

53
management of debtors. It measures the accounts receivables in terms of

number of days of credit sales during a particular period. It is calculated as

follows;

Credit Sales
Debtors Turnover Ratio =
AverageDebtors

TABLE 4.18
Year Wise Credit Sales and Average Debtors of
The CCSL Ltd., Chittoor.

RATIO
YEAR SALES AVERAGE DEBTORS
IN %
2002-2003 20,14,86,573 5,38,40,312 3.74
2003-2004 13,05,17,437 5,46,53,535 2.39
2004-2005 6,99,20,394 6,09,75,610 1.15
2005-2006 12,40,87,187 6,28,32,487 1.97
2006-2007 36,88,53,567 5,90,67,738 6.24

(Source: Annual Reports of the CCSL)

54
 7
RATIOS

5 2006-07
4 2005-06
2004-05
3
2003-04
2 2002-03

1
YEARS
0
2003 2004 2005 2006 2007

INTERPRETATION: -

The debtor’s turnover ratio indicates the rate of which cash is

generated by turnover of debtors. The debtor turnover ratio indicates a non-

satisfactory collection program. Empirically the debtor’s turnover ratio was

declined from 3.74 to 1.15 in the years 2002-03 to 2004-05. Then it is

increased form 1.97 to 6.24 in the years 2005-06 and 2006-07 respectively.

The high value of DTR was more efficient in management of credit. Therefore

we conclude that there is being poor debtor’s turnover ratio maintained by

CCSL.

DEBTORS COLLECTION PERIOD:-

It indicates on an average that credit sales are pending uncollected by

55
the concern. The also reflects the credit policy and terms of the concern. It

shows the quality of debtors since it ventilates the speed at which debtors are

collected. The collection period will be calculated as under.

Daysina year
CollectionPeriod =
Debtors Turnover Ratio

TABLE 4.19
Year Wise Days in a year and Debtors Turnover Ratio of
The CCSL Ltd., Chittoor.

DEBTORS TURNOVER RATIO

YEAR DAYS IN A YEAR
RATIO

2002-2003 365 0.74 97.59

2003-2004 365 2.39 152.72

2004-2005 365 1.15 317.39

2005-2006 365 1.97 185.28
2006-2007 365 6.24 58.49

(Source: Annual Reports of the CCSL)

56
RATIOS

350

300
250 2006-07
200 2005-06
150 2004-05
2003-04
100
2002-03
50 YEARS
0
2003 2004 2005 2006 2007

INTERPRETATION: -

Collection period measures the rapidity or slowness with which money

is collected from them. The average number of days for which the debtors

remain outstanding. Empirically the average collection period rose from 97.9

to 317.39 in the years from 2002-03 to 2004-05. Then reduced slightly from

185.28 to 58.49 in the years from 2005-06 to 2006-07

CREDITORS TURNOVER RATIO:-

This ratio gives the Average Credit period enjoyed from the creditors. A

low ratio indicates that creditors are not paid in time while a high ratio gives an

57
 idea that the business is not taking full advantages of credit period allowed by

the creditors.
2
RATIOS

1.5 CreditPurchases
Creditors Turnover Ratio =
2006-07
Aberage AccountsPayable
2005-06
1
2004-05
TABLE 4.20 2003-04
0.5 2002-03
Year Wise Credit Purchases and Average Account Payable of
YEARS
The CCSL Ltd., Chittoor.
0
2003 2004 2005 2006 2007 RATIO
Average Accounts
YEAR PURCHASES
Payable IN %
2002-2003 10,57,81,021 9,45,03,276 1.12
2003-2004 4,74,68,010 7,11,05,381 0.66

2004-2005 5,68,36,705 7,43,16,695 0.80

2005-2006 17,43,54,860 9,47,53,345 1.84
2006-2007 24,08,95,871 13,65,14,358 1.76

(Source: Annual Reports of the CCSL)

INTERPRETATION: -

The creditor’s turnover ratio on the basis of credit purchases. Low ratio

indicates that creditors are not paid in time. In the period of 2003-04 company

did not purchase raw material so in that period the creditor’s ratio is nil. In

58
2004-05 recorded low ratio i.e. 0.80 it is not good. In the year 2005-06 and

2006-07 recorded high ratio 1.84 and 1.76 respectively

59
 FINDINGS

 The standard cash ratio is 0.50:1. The company is not able to maintain

sufficient cash at bank and cash in hand. In 2005-06 company is

having the ratio 0.07 only.

 The CCSL is not maintaining the sufficient working capital. It is more

fluctuating in net working capital ratio.

 Lenders have contributed more funds then owners. Lenders

contribution is 1.10 times of owner contribution.

 Total Liabilities have increased year by year except in 2004-05. The

total Liability is 1.65 times more than the total asset.

 The current Assets are used very will in the year 2006-07 is 0.99. And

the year‘s from 2004-05 to 2005-06 is decreased to 0.32. Remaining

that two years current Assets utilization is satisfied.

 The Inventory turnover ratio has increased in this study but it has

declined to 0.139 in 2004-05. The company failed to maintain the

efficiency of selling and producing its products.

 The Gross Profit margin is in very poor position in this study and it was

60
 increased to 39.90 in 2005-06, but it was not sufficient to the company.

It is shows very poor performance of the company. Remaining years

are shows loss.

 The operating expenses are too high in this study. The operating

expenses are very large than the sales. The position is very danger to

the CCSL.

SUGGESTIONS

 The CCSL has to increase its current asset such as cash in hand and cash

at bank etc. By disposing off the unutilized assets such as old machinery

and there by increase its liquidity position. The company has to maintain

standard liquidity ratios to meet the liquidity obligation.

 The company is maintaining the lower equity fund. But, the CCSL having

the insolvency position for increasing the debt fund. It is suggest that the

company has to convert the reserves to assets.

 The Debtor Turnover Ratio has decreased from 5.07 times to 1.98 times.

Generally, the higher the value of Debtor Turnover, the more efficient to

the management of credit. The CCSL has to improve the debt collection

ratio.

 The lower gross profit margin might reflect higher cost of goods sold due

to the firm’s inability to purchase raw material (can etc.,) at favorable term,

inefficient utilization of plant and machinery of over investment in plant and

machinery, resulting in higher cost of production. It suggests the Chief

Account Officer has detected the causes of a falling Gross margin and

initiate action to improve the Gross Margin.

61
 The CCSL has the higher operating Expenses. A higher Operating

Expenses Ratio is unfavorable. The Operating Expenses are more than

the sales are danger to the company; the CCSL must decrease the

operating expenses.

62
 CONCLUSION
The Preponderance of current liabilities over the current assets has

escalated the net working capital requirement of CCSL. Substantial amount

capital is blocked in the inventory sugar of longer period partially due to

policies of government and partially associated with tender quotations. CCSL

turns its fixed assets faster than current assets. In fact it is because of such a

relative faster turnover of fixed assets that it becomes break even long ago.

Despite the company’s lifetime sourcing strategy where by its purchases

sugar cane from the farmer in the vicinity of CCSL on ensured long term basis

so as to have smooth inflow of raw materials sugar as quite prequel for its

assistance to farmers such as finance and provision of agricultural inputs such

as fertilizers seeds and pesticide profit of CCSL escalated because of

excessive overhead and polling up interest on. Remain due to erection of

new sugar factories in the vicinity of CCSL, there has been a shortage of

sugar cane and as a result a significant chunk of its capacity unutilized.

63
64
 BALANCE SHEET OF THE CHITTOOR COOPERATIVE SUGARS

LTD.,

AS ON 31ST MARCH 2003 TO 1ST APRIL 2007.

Liabilities 2003 2004 2005 2006 2007

Share Capital 14,09,58,700 14,09,60,300 14,09,61,400 14,11,40700 14,25,53,600

Deposits &
Borrowings
2,88,36,536 2.88.12.457 2,91,54,180 3,10,24,046 3,52,01,887
Deposits
23,56,12,210 .22,38,22,462 26,60,73,588 40,43,40,806, 405702423
Borrowings
Outstanding
Interest Payable
60,94,478 2,71,90,688 4,05,25,798 4,90,24,989 4,69,27,852
Adjusting Heads
“Due by”
18,29,12,074 11,50,20,074 10,81,07,592 14,04,81,701 22,61,00,864
Reserves 21,93,57,188 22,87,27,884 24,80,88,004 2,51,896,411 25,55,94,218
Undistributed 64,227 64,227 64,227 64,227 64,227
Profits
Audit Fund 9,695 9,695 9,695 9,695 9,695
Reserve Fund yet
to be Invested
24,703 24,703 24,703 24,703 24,703
Difference between
Assets & Liabilities

29,92,13,004 36,18,46,708 39,71,03,323 40,81,32,905 50,05,18,718

Total 51,46,60,807 40,27,85,782 43,59,05,864 60,98,74,373 611660751

Assets 2003 2004 2005 2006 2007

65
Cash on Hand 12,83,980 22,575 18,78,931 141,219 95,083
Balance with Bank:-
Current Account 17,15,099 13,49,422 91,72,861 1,66,827 33,68,313
Saving Account 23,80,140 1,45,31,768 89,67,176 70,82,767
Shares in other Co-
operative Institutions 2,28,550 2,28,550 2,28,550 2,28,550 2,28,550
Deposits with various
Agencies 12,54,826 12,61,226 12,71,226 12,67,226 12,67,226
Fixed Deposits with Banks
2,50,000 22,50,000 27,50,000 2,50,000 2,50,000
Loan’s & Advances to
Members 64,61,883 63,86,630 90,85,236 87,82,893 1,41,93,990
Loans to other Co-op.,
Sugar Factories 30,00,000 10,00,000 10,00,000 10,00,000 10,00,000
Adjusting Heads “Due to”
5,44,12,361 5,48,94,708 6,70,56,512 586,08,462 5,95,27,013
Interest Receivable 18,26,489 18,26,489 18,26,489 18,26,489 18,26,489
Value of Assets 12,62,06,460 12,62,06,460 1266,47,509 12,91,77,261 13,99,04,578
Value of Closing Stock
1. Stores Stocks 2,02,69,709 2,01,00,2 2,00,46,5 200,66,210 1,88,
2. Packing Material 1,78,240 65 21 6,85,016 22,314
3. Stationery 26,375 1,78,240 93,100 28,366 22,784
4. Sugar 19,19,96,948 18,671 43,727 26,77,46,257 40,809
5. Sugar in Process 2,54,382 7,60,05,445 7,88,6,404 82,93,497 24,67,11,289
6. Molasses 69,07,475 2,34,802 00 82,22,629 62,98,461
7. Molasses in 2,86,092 1,06,60,683 66,19,003
Process 3,02,613
8. FMP Raw Material 9,200 5,7 8,01,5
& Feed 50 00 20,474 97
9. Pesticides 20,474 00 20,4
10. Fertilizers 00 20,474 20,474 00 74
00 00 362250 00
00 00 205940

Deficits 47,944 47,944 47,944 47,944 47,944

Total 51,46,60,807 40,27,85,782 43,59,05,864 60,98,74,333 611660751

66
 BIBLIOGRAPHY

1. Pandey I.M, FINANCIAL MANAGEMENT, Vikas Publishing House

Pvt., Ltd., New Delhi, 9th Edition

2. Jain S.P & Narang K.L, FINANCIAL ACCOUNTING & ANALYSIS,

67
 kalyani Publishers, Ludhiana.

3. Prasanna Chandra, FUNDAMENTALS OF FINANCIAL

MANAGEMENT, Tata Mc Graw-Hill Publishing Company Ltd.,

New Delhi.

68