05 Kiran Projectwe

RATIOS ON FIXED ASSETS
INTRODUCTION
Financial management is concerned with the planning and controlling of the firms financial resource. It is often said that the financial management has receives less emphasis as compared to topics like production and marketing. However the task of financial planning and on tolling will assume relative more important role than in the past due to certain changes that have taken place or will take place in economy
DEFINITION
Financial management is an area of financial decision making harmonizing individual motives and enterprise goals. western and brigham Accounting is often referred to as the language of business. It recoards prepare transaction taken place during the accounting period with a view to prepare financial statements. One of the important objectives of accounting is to measure the profit of the business and to ascertain the financial position of the business. At the former is done through the preparation of profit and Loss account and the letter on require the preparation of balance sheet. These statements provide vital information to several groups of affected parties like shareholders, creditors, employees and other like researches, economist and FINANCIAL ANALYSIS.
FIXED ASSETS
Fixed Assets are investments by an organization in an asset that are used to produce goods or provide services. Classification of Fixed Assets o Tangible o Intangible
FINANCIAL MANAGEMENT
Management emerged as a distinct financial field of study at the turn of this Century. Many eminent persons defined it in the following ways.
VCR INSTITUTE OF MANAGEMENT STUDIES, CHITTOOR
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DEFINITIONS
According to GUTHMANN AND DOUGHAL Business finance can broadly be defined as the activity concerned with planning, rising, controlling and administering of funds used in the business. According to 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
The word Finance comes directly from the latin word finis. Finance may be defined as the provision of money at that time it is wanted. For example recruitment of workers in a factory, is clearly a responsibility of the production department. In addition to this, finance may be required either for setting up a new unit or expansion or modernization of the present unit etc., these financial requirements may be broadly classified as short-term finance and long-term finance.
TYPES OF FINANCE
Finance is usually divided into two categories viz., public finance and business finance.
PUBLIC FINANCE
Public Finance is normally concern with the ways of securing money for the conduct of government and the administration of public funds.
BUSINESS FINANCE
It involves an analysis of various means of securing money for business enterprises and the administration of this money by individuals or voluntary association
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etc., business finance is the further sub divided into Personal Finance, Partnership Finance and Company Finance.
MEANING OF FINANCING
Financing is the process of organizing the flow of funds so that a business firm can carry out its objectives in the most efficient manner and meet its obligations as and when they fall due.
MEANING OF MANAGEMENT
Management is the Art of getting the things done through others. In other words Management is What the Managers does.
MEANING OF FINANCIAL MANAGEMENT

Financial Management is concerned with the proper Management of Financial Resources. Thus, the finance manager must see that the funds are procured in a manner that the risk, cost and control considerations are properly balanced in a given situation and there is optimum utilization of funds.
EVALUATION OF FINANCIAL MANAGEMENT

Financial Management emerged as a distinct field of study at the turn of the 20th Century. Its evaluation may be divided into three broad Phases: Traditional Phase Transititional Phase Modern Phase 1. THE TRADITIONAL PHASE The traditional phase was found its first manifestation in 1897 in the book corporate finance written by Thomas Greene. A. Typical work of the traditional phase is the Financial policy of corporations by Arthur S. Dewing. This book discusses types of securities, procedures used in issuing these securities etc. 2. THE TRANSITIONAL PHASE
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The transitional phase began around the early 1940s and continued through the early 1950s. Through the nature of Financial Management during this phase was similar to that of the transitional phase. In this phase greater emphasis was placed on the day-to-day problems faced by a Financial Manager in the areas of funds analysis, planning and control. A representative work of this phase is Essays on Business by Wilfred J. Witman etc., 3. THE MODERN PHASE The modern phase began in the 1950s. Since the beginning of this phase, many significant developments have occurred in the fields of capital budgeting, working capital management, capital structure theories etc.
FINANCIAL MANAGEMENTAND SCIENCE OR AN ART?

The Financial Management is neither a pure science nor an art. It deals with various methods and techniques which can be adopted depending on the situation of business and purpose of the decision. As a science it uses various statistical, mathematical models and computer applications for solving the financial problems relating to the firm, for example, capital investment appraisal, capital structure mix, portfolio management etc., Along with the above a Finance Manger is required to apply his analytical skills in decision making. Hence, Financial Management is both a science as well as an art.
NATURE OF FINANCIAL MANAGEMENT

Finance Management is now regarded both as a science and as an art. It is based on certain fundamental theories propounded by financial experts. As a science it heavily draws on related branches Acknowledge like economics, accounting, statistics, operations research and decision-making.
FINANCIAL MANAGEMENT AND ECONOMICS

Financial Management is in fact an integral part of managerial economics i.e., economics applied to decision making. Financial management draws heavily both from
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macro and microeconomics. Macroeconomics provides the finance manager with an insight into the general economic environment and the variables like national income, general price level etc., which influence the business activity. Microeconomics enables the finance manager to know how forces like elasticity of demand, supply and demand influences the economics of a firm and its pricing policy.
FINANCIAL MANAGEMENT AND ACCOUNTING

Financial Management and Accounting are closely related and are complimentary to each other. While accounting is concerned with recording, classifying and summarizing financial transactions and interpreting the results thereof, financial management is concerned with decision making and wealth maximization. In accounting revenue is recognized based on accrual method by matching expenses with sales. In financial management the focus is on cash flows and their timing. Accounting is historical in nature. It records past data and hence it is objective. Financial management looks to the future. It involves decision making in the face of uncertainty. Hence it is subjective in nature. In the following respects, both are complimentary to each other. Profit as determined under accounting forms the basis for computation of earning per share, which is of vital interest to the finance manager. Divided policy determined by the finance manager depends up on the figure of profits ascertained under financial accounting. Investment decision taken by the finance manager are based on information furnished by the accounts department.
FINANCIAL MANAGEMENT AND COST ACCOUNTING

Financial Management is concerned not only with procurement of funds but also with effective utilization. The cost data furnished by the costing department helps the finance manager to evaluate how effectively the funds are utilized and suggest measures to keep costs under control.
FINANCIAL MANAGEMENT AND STATISTICS

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Statistics provide detailed data for decision making. The probability theory of statistics offers the logic for dealing with the uncertainty of future events. It enables the finance manager to understand the variables affects decision making.
FINANCIAL MANAGEMENT AND OPERATION RESEARCH

This is a branch of quantitative science used to analyze a business situation to find an optimal solution. For example, problems like allocation of storage space, utilization of transport facilities, choice of inventory etc. Can be solved with the help of operation research. Linear programming is useful in making best of scarce resources.
FINANCIAL MANAGEMENT AND DECISION MAKING

Financial management involves decision-making. The theory of decision making deals with the processes by which expectations under conditions of uncertainty are formed. Finance is the life a blood of an organization it is all-pervasive in nature and affects all the activities in the organization. In fact, it is a service function to other departments. It is closely interlinked with the other functions of production, marketing and personal. These departments mutually exchange information for formulation of policies and decision making. The functional managers have the freedom to take decisions on matters pertaining to their line of activity, but they have to take into considerations the financial implication involved. In a firm with plenty of funds, financial considerations do not matter much in formulating policies regarding production, marketing and personnel. But in a firm facing financial difficulties, financial considerations must be given due weight in formulating policies. The linkage between financial management and other functional areas of management is explained below.
FINANCIAL MANAGEMENT AND PRODUCTION

Production of goods requires large amounts of working capital, for which funds have to be procured by the finance manager. Diversification of production, changes in production process necessitate capital expenditure, for which the finance manager should make funds available after proper evaluation.
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FINANCIAL MANAGEMENT AND MARKETING

The success of firm depends not only on the efficient utilization of funds, but also its marketing effort and pricing policy. The marketing manager provides the finance manager with information as to how different prices affect the demand for products, so that an appropriate pricing policy can be formulated based on costs estimated at different levels of production.
FINANCIAL MANAGEMENT AND PERSONNEL MANAGEMENT

Recruitment, training and placement of staff require finance. Decisions on these issues can only be taken after considering the financial implications involved. In the face of ever increasing competition, heavy investments have to be made on development of human resources. Revision of pay scales, schemes for voluntary retirement etc., require funds on a massive scale. Hence the finance manager should identify new sources to procure the funds required.
SCOPE OF FINANCIAL MANAGEMENT

The approach to the scope and functions of financial management is divided for
the purpose of exposition two broad categories. The Traditional Approach The Modern Approach
THE TRADITIONAL APPROACH

The traditional approach to the scope of Financial Management refers to its subject matter in academic literature, in the initial stages of its evolution as a separate branch of academic study. The term Corporation Finance was used to describe what is now known in the academic world as Financial Management.
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The traditional approach to the scope of finance function evolved during the 1920s and 1930s and dominated academic thinking during the 1940s and through the yearly 1950s now, it has been discarded as its suffers from serious limitations. The weakness of the traditional approach fall into two broad categories. Those relating to the treatment of the various topics and the emphasis attached to them. Those relating to the basic concepts and analytical frame work of the definitions and scope of finance function.
THE MODERN APPROACH

Under the modern concept, finance function is concerned with the financial activities of planning, raising, allocating, and controlling of funds and using them for generating returns. Thus, Finance Function according to modern experts may be classified into two groups. Executive Finance Function Incidental / Routine Finance Function
EXECUTIVE FINANCE FUNCTION

The executive finance function calls for administrative skills in planning and execution of finance function. It includes the following decisions. A. Investment Decisions B. Finance Decisions C. Dividend Decisions
A. INVESTMENT DECISIONS
It is concerned with the allocation of funds to both capital and current assets. Capital assets are financed through long term funds and the current assets are financed through short-term funds. Thus, it consists of the following.
A) CAPITAL BUDGETING
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Effective allocation of capital is one of the most important functions of the financial management in modern times. This function involves the firms decision to commit its funds in long-term assets. The investment in long-term assets (fixed assets) will be quite heavy and to be made immediately but the returns will be available after a certain period. The investment decisions of a company are commonly called as the capital budgeting decisions are capital expenditure decisions.
B) WORKING CAPITAL MANAGEMENT

The management of current assets is known as working capital management. Managing current assets requires more attention than managing fixed assets.
B. FINANCING DECISIONS
The second important decision to be performed by the Finance Manager is the financing decisions broadly speaking he must decide when, where and how to acquire funds to meet the firms investment needs. Generally, the finance manager obtained funds through primary markets, financial institutions and, commercial banks. A proper balance has to be kept between the fixed and non-fixed cost-bearing securities.
C. DIVIDENDS DECISIONS
The return on shareholders capital is known as Dividend. The decision of finance manager related to the distribution of earnings to the shareholders and the amount to be retained in the firms is termed as dividend decisions. This decisions has been considered through which a business firms performance is measured. The share-holders, govt., bankers and others will understand the soundness of the business through dividend decisions. There fore, the dividend decisions have been considered as another important decisions of the finance function. The investment, finance and dividend decisions are inter-related to each other and therefore, the finance manager while taking any decisions should consider the impact from all the three angles simultaneously.
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INCIDENTAL/ROUTINE FINANCE FUNCTION

It does not require a great managerial ability to carry put finance functions. These are chiefly clerical and are incident to the effective handling of managerial finance functions. Some of these functions are listed below: Supervision of cash receipts and payments. Safe custody of securities, insurance policies etc., Maintenance of records. Reporting to management etc.,
GOALS/OBJECTIVES OF FINANCIAL MANAGEMENT

The objectives of financial management are broadly classified into two categories. Basic Objectives Other Objectives
1. BASIC OBJECTIVES:Traditionally, the basic objectives of financial management are the maintenance of liquid assets and maximization of profitability. Maintenance of liquid assets means that the firm has adequate cash in hand to meet its obligations at all time. And maximization of profitability can be explained in the following lines.
PROFIT MAXIMIZATION:The financial objective of a firms is to maximize the owners economic welfare. There is a controversy as to how the economic welfare of owners can be maximized. According to this approach actions that increase profits should be undertaken and those that degrees profits should be avoided. Hence maximization of profits is regarded as an operational criterion for maximizing the owners economic welfare. Thus, profit is the central economic objective of any business enterprise. maximization is justified on account of the following reasons. The objective of profit
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A human being performing any economic activity rationally aims at utility maximization.Utility can be measured in terms of profits. maximization is justified on the ground of rationality. The firm by pursuing its objective of profit maximization also maximizes social economic welfare. Profit maximizatio9n will be a motive force to acquire monopoly in the imperfect capital markets. However, the objective of profit maximization is subject to criticize in recent years on the following counts: It is argued that profit maximization is the result of perfect competition. But, in modern markets, there exists no perfect competitions. In modern markets, it is regarded as immoral difficult and unrealistic. The precise meaning of profit maximization is not clear. There is a lack of unanimity regarding the concept of profit i.e., profit before tax or profit after tax. It does not specify the timing of expected returns. It does not consider the risk and uncertainty of prospective earnings. In view of the above reasons, the traditional theory of profit maximization has often been criticized. It has lost its relevance in the modern business environment. Hence, the modern financial experts are suggested the maximization of wealth as the objective of the firm. Thus, the profit
WEALTH MAXIMIZATION
Wealth maximization means maximizing the net present worth of a course of action. The net present worth of a course of action is the difference between the gross present worth of benefits and the amount of investment required to achieve those benefits.
OTHER OBJECTIVES
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Besides the above basic objectives, the following are the other objectives of financial management. Ensuring return on capital employed Value addition and profitability Growth in earning per share and price earning ratio Efficient utilization of short-term, medium and long-term finances Maximization of finance charges Ensuring financial discipline in the organization
FINANCIAL FUNCTIONS
The finance functions of raising funds, investing them in assets and distributing returns earned from assets to shareholders are respectively known as financing, investment and dividend decisions. While performing these functions, a firm attempts to balance cash inflows and outflows. This is called as liquidity decision. The finance functions can be divided into three broad categories. Investment or long-term asset mix decision Financing or capital mix decision Dividend or profit allocation decision Liquidity or short-term asset mix decision
INVESTMENT DECISION
Investment or capital budgeting involves the decisions of allocation of cash or commitment of funds to long-term assets, which would yield benefits in future. It involves measurement of future profitability, which involves risk, because of uncertain future. Investment proposal should therefore be evaluated in terms of both expected return and risk. Other major aspect of investment decision is the measurement of standard or hurdle rate against which the expected return of new investment can be compared.
FINANCING DECISIONS
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Financing decision is the second important function to be performed by the fir. Broadly, he must decide when, where, and how to acquire funds to meet the firms investment needs. He has to determine the proportion of debt and equity. This mix of debt and equity is known as the firms capital structure. The financial manager must strive to obtain the least financing mix or the optimum capital structure where the market value of share is maximized.
DIVIDEND DECISIONS
It is the third major financial decision. The financial manager decides whether the firm should distribute all profits, or return them, or distribute a portion and return the balance. The optimum dividend policy should be determined where is maximizes the markets value of the share.
LIQUIDITY DECISIONS
Current assets management, which affects firms liquidity, is yet another finance function in addition to the management of long-term assets. Current assets should be managed effectively safeguarding the firm against the dangers of liquidity and insolvency. Investment in current assets affects the profitability, liquidity, and risk. A conflict exists between profitability and liquidity while managing current assets. If the firm doesnt invest sufficient funds in current assets it may. Become illiquid. But it could lose profitability, as idle CA would not earn anything. Thus a proper takeoff must be achieved between profitability and liquidity.
GOALS OF FINANCIAL MANAGEMENT

Maximize the value of the firm to its equity shareholders. This means that represent the value of the firm to its equity shareholders) Investment Planning Financial Structure the
Goals of the firm should be to maximize the market value of its equity shares (Which
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Treasure Operations Foreign Exchange Investor Communication
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INDUSTRY PROFILE
India is the worlds second largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. The total food production in India is likely to double in the next ten years and there is an opportunity for large investments in food and food processing technology, skills and equipment, especially in the areas of canning, dairy and food processing, specialty processing, packaging, frozen food /refrigeration and thermo processing. Fruits and vegetables, fisheries, milk and milk products, meet and poultry, packaged/convenience foods, alcoholic beverages and soft drinks and grains are important sub sectors of the food processing industry. Health food and health food supplements are another rapidly rising segment of this industry which is gaining vast popularity amongst the health conscious. India is one of the worlds major food producers but accounts for less than 1.5 percent of international food trade. This indicates vast scope for both investors and exporters. Food exports in 1998 stood at US dollars 5.8 billion whereas the world total was US dollars 438billions. The Indian food industries sales turnover is Rs 140,000 crore (1crore=10 million) annually as at the start of year 2000. The industry has the highest number of plants approved by the US food and Drug Administration (FDA) outside the USA. Indias food processing sector covers fruit and vegetables; meat and poultry; milk and milk products alcoholic beverages, fisheries, plantation, grain processing and other consumer product groups like confectionery, chocolates and cocoa products, Soya-based products, mineral water, high protein foods etc. The most promising sub-sectors includes-soft-drink bottling, Confectionery manufacture, Fishing, Aquaculture, Grain-milling and grain-based products, Meat and poultry processing, Alcoholic beverages, Milk processing, Tomato paste, Fast-food, Ready-to-eat breakfast cereals, Food additives, flavors etc.
FOOD PROCESSING MARKET IN INDIA IN 2012-2013

India is one of the worlds major food producers but accounts for less than 1.5 per cent of international food trade. This indicates vast scope for both investors and Page 15
exporters. Food exporters in 1998 stood at US $ 5.8 billion whereas the world total was US $438billion. The Indian food industrys sales turnover is Rs 140,000crore (1crore=10 million) annually as at the start of year 2000. The industry requires about Rs 29,000 crore in investment over the next five years to 2005 to create necessary infrastructure, expand production facilities and state-of-theart-technology to match the international quality and standards. The office of the Agricultural Affairs of the USDA/Foreign Agricultural Services in New Delhi says that one of Indias proudest accomplishments has been achieving a tenuous self-sufficiency in food production and that the country produces a wide variety of agricultural products at prices that ate at or below world values in most cases. The Indian palate is accustomed to traditional foods, mostly wheat and rice based, rather than potato and corn-based western palate. In marketing perspective, this is considered an important factor for foreign marketers. The USDA reports says initials consumer-ready food products may have to be tailored to include Indian spices and traditional ingredients. In addition to traditional tastes, there are other social factors which affect consumption in India. Hindus account for approximately 80 per cent of Indias population, and while only 25 or 30 per cent are strict vegetarians, beef slaughter is prohibited in all but two states (Kerala and Bengal) and consumption of other meats is limited. Incidentally, India is the only country where the US-base Mac Donalds sells its burgers without any beef content and offers purely vegetarian burgers. Indias middle class segment will hold the key to success or failure of the processed food market in India. Of the countrys total population of one billion, the middle class segments account for about 350-370 million. Though a majority of families in this segment have non-working housewives or can afford hired domestic help and thus prepare foods of their taste in their own kitchens, the profile of the middle class is changing steadily and hired domestic help is becoming costlier. This is conducive to an expansion in demand for Ready-to-eat Indian-style foods..
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Indias food processing sector covers fruit and vegetables; meat and poultry; milk and milk products, alcoholic beverages, fisheries, plantation, grain processing and other consumer product groups like confectionery, chocolates and cocoa products, Soya-based products, mineral water, high protein foods etc. According to latest official statistics, India exported processed fruits and vegetables worth Rs 5240 million in 1997-98. The horticulture production is around 102 million tones. Foreign investment since 1991, when economic liberalization started, stood at Rs 8,800crore. Products that have growing demand, especially in the Middle East countries include pickles, chutneys, fruit pulps, canned fruits, and vegetables, concentrated pulps and juices, dehydrated vegetables and frozen fruits and vegetables. Another potential processed food product is meat and poultry products. India ranks first in world cattle population, 50 per cent of buffalo population and one-sixth of total goat population of the world. Buffalo meat is surplus in India. There is vast scope to set up modern slaughter facilities and cold store chains in meat and poultry processing sector. Indias current level of meat and meat-based exports is around Rs 8,000 million. In last six years foreign investment in this segment stood at Rs 5,000 million which is more than 50 per cent of the total investment made in this sector There are about 15 pure line and grandparent franchise projects in India. There are 115 layer and 280 broiler hatcheries producing 1.3 million layer parents and 280 million broiler parents. They in turn supply 95 million hybrid layer and 275 million broilers, day old chick. Presently there are only five egg powder plants in India which is considered insufficient in view of growing export demand for different kind of powderwhole egg, yolk and albumen. The scope of foreign investment and state-of-the-art technology in this field is therefore tremendous. Milk and milk products is rated as one of the most promising sectors which deserves foreign investment in big way. When the world milk production registered a negative growth of 2 per cent, India performed much better with 4 per cent growth. The total milk production is around 72 million tones and the demand for milk is estimated at around 80 million tones. By 2008, the value of the Indian dairy produce is expected to be Rs 1,000,000 million. In last six years foreign investment in this sector stood at Rs 3600
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million which is about one-fourth of total investment made in this sector. Manufacture of casein and lactose, largely being imported presently, has good scope. Exports of milk products have been decanalised. Grains could emerge as a major export earner for India in coming years. Indias food grains production is now at around 225-230 million tones. These include rice, jawar, bajra, maize, wheat, gram and pulses. Indian basmati rice enjoys command in the international market. Besides growing Middle East market for basmati rice, many other countries are showing interest for this food grains. In 1998-99 export of basmati and nonbasmati rice stood at Rs 6200 million. There is a total rice milling capacity of 186milliontones in the country. Among plantation, tea emerged as major foreign exchange earner. India is the largest producer and exporter of black tea. However, the most worrying factor for Indian tea industry is that form early next year with the implementation of tea imports into the country, India tea may face a stiff competition within the country as well, specially threat of SriLankas presence in the Indian market is looming large. The current years tea export prospect is not that very good in terms of forex earnings because international prices have fallen significantly this year. An India export between 150-170millionkilogramss of tea per annum. Of course, the scope of foreign investment in this sector is good and the multinational tea companies would either be trying for marketing joint ventures with the Indian producers or acquire stakes in Indian tea companies. There is strong possibility of third country exports through such joining ventures as quality wise still Indian teas are ruling the international market. Alcoholic beverages are another are where India witnessed substantial foreign investment. Foreign investment in this sector stood at Rs 7000 million which about 70 percent of the total investment made so far. The IMFL (Indian Made Foreign Liquor) primarily comprises wine, vodka, gin, whisky, rum and brandy. Draught beer is a comparatively recent introduction in the Indian market. The Indian beer market is estimated at Rs 7000 million a year. One of the major advantages for any investor eyeing
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the Indian liquor market is that India offers enough raw materials like molasses, barely, maize, potatoes, grapes, yeast and hops for the industry. Yet another catchy investment sector is fisheries. There is growing canned and processed fishes from India. The marine fish include prawns, shrimps, tuna, cuttlefish, squids, octopus, red snappers, ribbon fish mackerel, lobsters, cat fish etc. in last six years there was substantial investment is fisheries to the tune of Rs 30,0000 million of which foreign investments were of the order of Rs 7000 million. The potential could be gauged by the fact that against fish production potential in the Exclusive Economic Zone of 3.9 million tones, actual catch is to tune of 2.87 million tones. Harvesting from inland sources is around 2.7 million tones. The biggest bottleneck in expanding the food processing sector, in terms of both investment and exports, is lack of adequate infrastructure. Without a strong and dependable cold chain vital sector like food processing industry which is base mostly on perishable products cannot survive and grow. Even at current level of productions, farm produce valued at Rs 70,000 million is being wasted every year only because there is no adequate storage, transportation, cold chain facilities and Cold chain facilities are miserably inadequate to meet the increasing production of various perishable products like milk, fruits, vegetables, poultry, fisheries etc. Prevention of Food Adulteration laws is not only stringent one but time consuming also. It is considered as an archaic and no industry friendly food law. It substantial varies from Codex standard. Hormonization of multiple food laws is an urgent necessity.
Indian Food processing in the year of 2009

The Indian food processing market is one of the largest in terms of production, consumption, and export and import prospects. Since India is one of the major food producers worldwide, with new reforms, it presents exciting opportunities for commercial openings for a wide range of investors across the globe. RNCOS report, Indian Food Processing (2009), provides research and objective analysis on the Food Processing Industry in India. This report helps clients to analyze the opportunities critical to the success of the food processing industry in India.
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India Food Processing Industry

This section analyses the performance of the Indian food processing industry. Currently, processed food accounts for merely 2% of total food production in India, which is very low as compared to the western countries. Taking market forces such as rising income level and changing consumer behavior due to rapid economic growth into consideration, it is expected to reach a growth rate of 10% in 2010 and 25% in 2020. in food processing sector, dairy products (includes milk, Ethnic sweets etc) and packed food provides immense opportunities for investment.
Key Findings
Currently the Indian food processing industry is basically export oriented. Although domestic consumption of processed food is low but it is fast picking up with rising income levels and changing consumer behavior due to economic growth. Indian processed food industry provides competitive advantages over other countries due to cheap workforce, government initiatives (tax holidays) and availability of raw materials. Existence of untapped large consumer base with rising income levels. Indian food processing level as compared to countries like USA, France and Malaysia continues to remain very low. However, with the emerging positive market forces, it is all set to boom.
Food Processing Industries in India as per July 2013

The Indian food industry is estimated to be worth over US$ 200 million and according to the Confederation of Indian Industry (CII) is expected to grow to USS 310 billion by 2015. India is one of the worlds major food producers but accounts for less than 1.5 per cent of international food trade. This indicates vast scope for both investors and exporters. India is the worlds second largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. In this respect, the country is endowed with a large production base for a variety of raw materials covering food crops, commercial crops and fibers due to its varied agro-climate conditions.
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Also, India has the highest number of plants approved by the US Food and Drug Administration FDA) outside the USA. Important sub sectors in food processing industries are:- Fruit and Vegetable Processing. etc. Fish-processing, Milk processing, Meat and Poultry Processing, Packaged/Convenience Foods, Alcoholic beverages and Soft drinks and Grain processing
Policy Initiatives
The Government has formulated and implemented several schemes to provide financial assistance for setting up and modernizing of food processing units, creation of infrastructure, support for research and development and human resource development in addition to other promotional measures to encourage the growth of the processed food sector. The Centre has permitted under the Income Tax Act a deduction of 100 percent of profit for five years and 25 per cent of profit in the next five years in case of new agro processing industries set up to package and preserve fruits and vegetables. Excise Duty of 16 per cent on dairy machinery has been fully waived off and excise duty on meat, poultry and fish products has been reduced from 16 percent to 8 percent. Most of the processed food items have been exempted from the purview of licensing under the Industries (Development and regulation) Act, 1951, Food processing industries were included in the list of priority sector for bank lending in 1999. Automatic approval for foreign equity up to 100 per cent is available for most of the processed food items except alcohol, beer and those reserved for small scale sector subject to certain conditions. Complete exemption from duty to ready-to-eat packaged food. Reduction of excise duty on refrigerated motor vehicles from 16. The government has also enacted the Food Safety and standards Bill 2005 that seeks to create a regulatory body for the food-processing sector and set standards for manufacture and import of quality food.
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As can be seen, the present scenario of processing India consists of few large National Processors, many regional level Processors, and tiny sector level processors. In fact 90% of the processing industries are in the small scale and cottage/home scale. There are 32 units in the organized sector with an installed capacity of 1,08,000Mts per annum, representing 10% of the total installed capacity. They account for 30% of total production of processed fruits and vegetable in India. These national level processors having technology, marketing ability, procurement ability, extension rapport with framers. The kind of situation should have normally led to development of linkages between them. However the linkages have not developed because the setting processing infrastructure is not excess capacity and many sick units and very low.
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COMPANY PROFILE
INTRODUCTION
CHITTOOR CANNING PRIVATE LIMITED, CHITTOOR. (CCPL) is established in year 1991. The production facility is located as, Company address: CHITTOOR CANNING, PRIVATE LIMITED 100 Gollapalli, Puttur road, Chittoor.(AP).
HACCP TEAM
The management has identified and appointed suitably qualified personnel from different disciplines to form the HACCP team and to develop and maintain HACCP system. This responsibility is in addition to the regular day to day functional responsibilities of the individual member. The major responsibility of the team to manage, perform and verify the works relating to the food safety, quality and other key results are clearly identified and communicated to the members of the team. Selection criteria and required expertise of the team member is defined and documented.
HACCP COORDINATOR
A senior person Mr. M. Ganapathi of the management in the rank of gm plants has been identified as the HACCP coordinator. He, in addition to his normal functional responsibilities, is entrusted with the authority and responsibility to ensure that the HACCP system is implemented and maintained in accordance with the quality and food safety policy of the company. Specific responsibilities of HACCP coordinator for the effective implementation of the food safety program have been well defined.
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Management review
Apart from regular meetings, the top management at CCPL reviews the organizations HACCP system at planned intervals such as after every internal audit i.e. once in three months and also as per the necessity to ensure its continuing suitability, Adequacy and effectiveness of HACCP system. These reviews include assessing opportunities for improvement and the need for changes in the HACCP system, including the product safety, Food Safety policy and objectives. The minutes of management review are recorded.
The following members constitute the HACCP Team of the company

Sr. no 1 2 3 4 5 6 Name of person Mr.M.Ganapathi Mr.B. Madhu Mr.GR. Bhargav Designation General manager Production Manager Shift in charge Role in the HACCP Team HACCP Coordinator Team Coordinator Team coordinator Team member Team member Team member Qualifica tion B.E. B.Sc. B.Sc. B.Sc. B.Sc. Diploma Experience( yrs.) 15 12 7 4 4 8
Ms.S Monjula Microbiologist Mr.K.Lokesh Chemist Mr.G.Yugandhar Plant eng.
RESOURCES
Management examines and provides all the resources needed by the HACCP team to develop, implement and maintain HACCP system. Through corrective actions, verification procedures or customers, management carries out technology developments.
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In addition, resources needed are reviewed at the start of financial year. The strategic location of the facility provides easy access to the growing and harvesting area. CCPL has state of the art aseptic processing facility for fruit processing. The capacity of the plant is applicable.3 tones per hour for pulp and 1.5tonew per hour for concentrate. Competent and qualified professionals manage the production and administrative operations. It is manufacturing to various countries. The raw materials, processed in a fully integrated aseptic line totally eliminate the possibilities of the most severe microbiological hazards brought into the product. The current good manufacturing practices and other prerequisite programmers followed in the facility have been highly appreciated by many overseas buyers. This has opened up highly sophisticated markets to CCPL within the short period of its operation. Today company is supplying the aseptic fruit pulp and concentrates to all major buyers in the world and has got a very good brand image in the international market. CCPL has initiated the HACCP implementation Program me in their facility. The HACCP and Quality policy of the company highlights the companys the companys goal and expectations towards quality.
PRODUCTS AND PROCESS

The company is manufacturing aseptic mango pulp produced by processing the different varieties of mangos per the availability of raw material. The production process for all packages is carried out at the same location as addressed in the information sheet.
Following are the details of the product group

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Product group- 1: mango pulp and concentrate in aseptic packing Process Sr. No. Product name Raw materials Different 01 Mango pulp mangos, ascorbic preservatives varieties citric soused of Aseptic acid, process acid,
SOURCE OF RAW MATEREALS

The major sourcing of premium variety of fruits and vegetables is from ratnagiri, south Gujarat, Nasik, Mysore and Chittoor regions where companys qualified agronomists check the quality of raw materials procured and also assist farmers in their horticulture. The HACCP systems described in this manual are applicable to the CCPL, Chittoor for receiving of raw fruits, ripening, processing (pulping, preheating, decanting, desecration, sterilization, aseptic filling), stacking and dispatch of fruit pulp in aseptic bags in drums. All the manufacturing processes such as receipt of raw material and packaging materials, storage, ripening, processing which includes operations such as washing, pulping, preheating, decanting, sterilizations, aseptic filling, packaging and delivery are carried out in the same location. The scope of the HACCP systems includes above mentioned processes.
BANKING FACILITIES
Apart from availing working capital consisting of pre-shipment and post-shipment limit the company also availed term loan from SBI, Indian bank and EXIM for capital expenditure. Major portion of credit facilities is in foreign currency.
FUTURE PLANS
Development of the Indian market for CHITTOOR CANNING PVT LTD.
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Thrust of exports. Expansion in 4t aseptic manufacturing capacity. Use of it as a tool to further business goals. Setting up of a central R and D lab. Backward integration for improved quality of raw materials using contrctifarming organics cultivation.
DRAWING AND USAGE OF POTABLE WATER

The water is drawn from the approved source via ground water. The water is tested from an approved laboratory once in a year for chemical and microbial quality. Incase microbial quality is not satisfactory, water is chlorinated to the level of 2ppm. The overhead tank and ground water tank (if any are covered to product contamination due to birds, rodents, insects, animals, etc. These water tanks are cleaned and disinfected before commencement of productin during mango season. Hooks are provided where ever hose connections are provided. The water system is protected from any cross contamination from sewage water.
WASTE DISPOSAL PROCEDURE

The solid waste gets collected from the cutting hall, pulpers and bins is immediately disposed off on continuous basis. Other solid waste from the plant is collected from different sections, in separately identifiable closed containers kept in convenient locations. The collected wastes are disposed in trucks\trolleys specifically designed for the purpose. Exclusive waste collection and disposal is provided to avoid cross contamination. Waste collection tanks, Waste - carrying trucks are washed and disinfected daily at the end of production Hygienic supervisor ensures the continuous disposal of the so kid waste in order to avoid accumulation of the solid waste. The chemist at the end of every shift ensures the cleanliness of the waste disposal.
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The liquid wastes are disposed meeting the local municipal regulations.
BASIC INFORMATION
Company Name: Business type: Product \ service( we company sell) Product \ service(company buy) Number of employees CHITTOOR CANNING PVT LTD Manufacturer Mango pulp, guava pulp, papaya pulp Mango pulp, 25-75 people
TRADE AND MARKET

Main markets: North America South America Eastern Europe Southeast Asia Africa Oceania Mideast Eastern Asia Western Europe Total annual sales volume Export percentage: Total annual purchase volume: Us $ 10 million- us $50 million 81%-90% Below us $1 million
OWNERSHIP AND CAPITAL

Year established: Registered capital: Ownership type: Legal representative \ business owner: FACTORY INFORMATION Factory size: Factory location: No. of. Production lines: No. of. RandD Staff: No. of qc staff: 1991 Us$101 thousand Corporation \ limited Mr. A. Rama Krishana Reddy 10000-40000 square meters Chittoor, Andhra Pradesh 4 7-15 people 15-25 people Page 28
PRODUCT PROFILE
MANGO PUREES AND CONCENTRATES Alphorns Mango Puree Totapuri Mango Concentrate Totapuri Mango Puree
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Kesar Mango Puree Raspuri Mango Puree WHITE GUAVA PUREE AND CONCENTRATES White Guava Puree White Guava Concentrate PINK GUAVA PUREE Red Papaya Puree and Concentrate Papaya Puree(Red, Natural) Papaya Concentrate(Red, Natural) POWDER Spray Dried Ripe Mango Pulp Powder Spray Dried Alphorns Mango Powder Spray Dried Ripe Banana Pulp Powder Spray Dried Orange Juice Powder Spray Dried Pineapple Juice Powder Spray Dried Lemon Juice Powder.
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FRUIT PULP
We offer a wide range of fresh pulp to our clients which are highly demanded all across the world. Our range is extremely pure and fresh and is free from any sort of artificial flavor and taste. BANANA PULP We offer our clients a rich collection of sweet bananas that are fresh and without any spots and marks. These bananas are tasty and contain a rich amount of valuable nutrients such as vitamin B6, vitamin C and potassium. Also, these are vital part of our complete diet and can be dried and consumed as snack food Features:
Highly Fresh Tasty to eat Valuable nutrients Can be used in puddings Cost-effective in nature. GUAVA PULP We offer our wide range of fresh guava pulp which are obtained from matured and clean guavas and are ripened under controlled atmospheric conditions. Also, we provide utmost attention in the method of processing so as to procure natural flavor. These are also used for blending and in catering health drinks and other beverages.
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Features: Fresh stock Crunchy in taste Contain valuable nutrients Competitive pricing MANGO PULP The exclusive flavor of our mango pulp makes is delicious in taste and is demanded all over the world. Our range of mango pulps is exceptionally juicy and luscious with great flavor and taste. We also give utmost importance to grading of the packed range to ascertain their freshness. Our gamut of sweetened mango pulp is offered in different varieties of alphonso, totapuri and kesar and is one of the most favorite ranges amongst the other pulp products. All of these are extracted from fresh mangoes and are processed hygienically with the aid of advanced manufacturing plant, maintained in safe and clean conditions to ensure that the products are protected from contamination. Features: Rich in taste Contain valuable nutrients Available at competitive prices carefully packed
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PAPAYA PULP We obtain our delicious papaya pulp from a fresh variety of papayas through a series of process that includes washing, peeling, ripening, inspecting and thermally processing the selected ones. These pulps are rich in nutrients such as Vitamin A and other minerals and also used in cooking, pulp, jams and squashes. In catering our range, we take special care of temperature for sea transport has to be maintained at 7 to 9 and air transport 9 to 10 degrees. Also, it has a shelf life of two to three weeks when stored at 7-10 degrees C and RH 85-90%. Features: Delicious in taste Possess valuable vitamins Flavor and color of the fruit are retained
PINEAPPLE PULP We extract our high grade pineapple pulp from selected ripened pineapples through various procedures after proper inspection and processing. The pulp is converted to frozen juices, drinks, fruit cheese and is also extensively popular as an accompaniment with cream used in puddings, baby food items, yoghurt and other dessert mixes. The flavor and color are properly retained while processing. Features: Fresh stock luscious in taste
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Available in natural color Competitive pricing
NEED FOR THE STUDY

To draw the conclusions regarding the liquidity position of a firm. Lies in the fact that it resents facts on a comparative basis and enable the drawing of inferences regarding the performance of a firm. To measure long-term solvency by the leverage / capital structure and profitability ratios which focus on earning power and operating efficiency. To reveal the strengths and weakness of the firm. To throws light on the degree of efficiency in the management and utilization of its assets.
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OBJECTIVES OF THE STUDY

The overall objectives of this study in, CHITTOOR CANNING PVT LIMITED, CHITTOOR.Is to acquire knowledge about the Fixed Assets of the organization.
The other specific objectives are also as follows

To analyses the changes in the fixed assets of CHITTOOR CANNING PVT.LTD during year under review To analyses the funds flow position of CHITTOOR CANNING PVT LTD by using ratio analysis.
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To analyses the firm has to meet its statutory obligations or not. To identify the problems regarding to fixed assets management in the CHITTOOR CANNING PVT LTD and give possible suggestions for better management during the year under review. To gain the knowledge about the Fixed Assets from the company. To know different techniques used in maintaining cash receipts and payments
SCOPE OF THE STUDY

The current study under taken for the purpose of analyzing Fixed Assets management of the CHITTOOR CANNING PVT LIMITED, which is situated At Chittoor. The study concentrates on various techniques involved in maintaining an optimum level of Fixed Assets that involves maintaining of land and buildings, plant and machinery etc.
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The study of financial analysis would provide an in-depth view about how the net worths being raised by companies. The study helps in evaluating the financial position of concern. Our approach is straight forward and consists with in a well developed frame work for the further decision making. The scope of the present study is the analysis of Fixed Assets of CCPL by adapting Assets analysis, fund flow statement, simple percentage analysis, and correlation.
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STATEMENT OF THE PROBLEM

The fixed assets management is the traditional financial statement of a business enterprise. While they do furnish useful financial data regarding its operations, a serious limitation of these statements is that they do not provide information regarding changes in the firms financial position during a particular period of time. Have long-term sources been adequate to finance fixed assets purchase Does the firm posses adequate fixed assets Has the liquidity position of the firm improved Does the firm meet their requirements In the present study an attempt is made to Analyses fixed assets of THE CHITTOOR CANNING PVT LTD.
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LIMITATIONS
The Study is limited to only a particular company. It is difficult to analyze the overall information regarding the company because the analysis based for a specific period. The study is limited to preceding five years. The official did not reveal confidential aspects of the cash management of the company, as the project was academic purpose. Based on the analysis correct picture of efficiency of work cannot be determined. The values are estimated, so exact result cannot be drawn. `
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RESEARCH METHODOLOGY
Research is an act of objective, impartial, imperial and logical analysis and recording of controlled observation, principles. It involves activities of collecting, organizing and evaluating data, which leads to making deductions and reaching conclusions.
DEFINITION OF RESEARCH
C.V. Good defines the research as careful, critical, disciplined inquiry, varying in techniques and method according to the nature and conditions of the problem identified, directed towards the classification or resolution or both of a problem.
MEANING OF RESEARCH DESIGN

A research design is the conceptual structure with in which the research would be conducted. It informs what, where, when, how much, by what means a research study is to be conducted.
DEFINITION OF RESEARCH DESIGN

According to C.Sell tic and others A research design is the arrangement of conditions and analysis of data in a manner that aims to combine relevance to the research purpose with Assets in procedure.
WEAKNESS
The procurement process in the company is cumbersome and subject to auditing. Low exposure to the needs and dynamics of distribution business Role clarity on the requirement of being an equipment supplier or a solution provider Acceptance of customers to execute low value high volumes jobs Financing Capability
OPPORTUNITIES
Huge investment leading to greater demand of goods and services Page 40
Demand leading to industry operating at full and over capacity Early birds to learn faster and achieve repeat orders Formation of business groups and tie ups for joint bidding Healthier working environment and increased private sector participation in operation of distribution circles also.
THREATS
Purchase preference may be extended to distribution sector Increased in number of small contractors leading to price wars Emergence of new players in the market. Political pulls and pressures may jeopardize the hole process, raising alarm about the privatization and being anti-people
DATA SOURCES
Data is required for an analysis is obtained through primary sources and secondary sources. The primary data is collected through personal interview with the officer of the company. The secondary data is collected from schedules to Fixed Assets and various files of the company. This research methodology is the technique followed in social research on a subject.
DATA SOURCES Primary data:

Primary data collected through interaction with guide general and specific aspects regarding utilization of sources. to understand the
Secondary data:
It is collected annual reports from the company
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REVIEW OF THE LITERATURE

INTRODUCTION TO FIXED ASSETS FIXED ASSETS
Fixed assets are investments by an organization in assets that are used to produce goods or provide services. These assets represent a major source of future revenue potential to the enterprise, and may give some indication as to future cash flows. Fixed asset accounting has several objectives: to give investors, creditors, management, and tax and regulatory authorities accurate information about these assets; to account for the use and disposal of these assets; and to plan for new acquisitions through realistic budgeting. Accounting for the acquisition, depreciation, and disposal of fixed assets in the historical cost system is the primary focus of this chapter. Of late, many companies have started Intangible assets like revaluing their fixed assets so as to show them at their current values. The implications of this growing practice are examined. those engaged in providing services. goodwill and brands are of great importance to many enterprises, particularly
FIXED ASSETS IN PERSPECTIVE

Fixed assets are assets that are held by an enterprise for use in the production or supply of goods and services, and not intended for sale in the ordinary course of business. Whether an asset is affixed asset or not depends on the purpose for which it is held. For example, the land on which a companys factory is built is a fixed asset. However, if it plans to use land for property development, it will be a current asset. The intention of the owner in holding an asset determines its classification as a fixed or current asset. Fixed assets also referred to as long-lived assets or long-term assets are often divided into tangible and intangible categories. Tangible assets are fixed
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assets that have a physical existence and can be seen and felt, and include land, buildings, plant, equipment, and vehicles. Property, plant, and equipment are another term for tangible assets. Intangible assets, on the other land, have no physical existence. Rather, they represent legal rights or economic benefits. The cost concept has the advantage of bringing objectivity in the accounts. Value of fixed assets given in the balance sheet is not influenced by the personal bias or judgment of those who furnish such statements. In the absence of cost concept assets will be shown at their market values, which will depend on the subjective views of persons who furnish financial statements. The effects of inflation are more pronounced in case of fixed assets. Under the cost concept of accounting, depreciation calculated on the basis of historical costs of old assets is usually lower than that of those calculated at current value or replacement value. Under the cost concept of accounting depreciation is calculated on the original cost of the fixed asset with the result that only an amount equivalent to the original cost of the fixed asset is available for its replacement when its life is over. But the replacement cost of the asset will be more than the original cost on account of inflation so that the replacement provision made by way of depreciation charge on the original cost will be insufficient for the purpose. This explains the need for charging depreciation on current value and showing the fixed assets at the current values. Fixed assets are valued at cost less a reasonable depreciation written off and any fluctuation in their market. The utility of such assets is not in the least affected by their market value being high or low; so any fluctuation in their market price is not cared for. Thus, so far as business unit is a going concern, fixed assets are valued at cost less a reasonable depreciation written off to date, but when a business unit is not a going concern and is to be liquidated, current releasable value of fixed assets becomes relevant.
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Out of fixed assets, land is an exception to the principle of valuation of fixed asset at cost, less a reasonable depreciation written off. Land is usually valued at the price at which it was purchased including registration charges and brokerage paid. Depreciation is usually not provided on the land because it is not subjected to depletion in value by its use. The value of the land usually increases with the passage of time because of its limited availability so there is no need of ay provision for depreciation in case of land.
Need for valuation of Fixed Assets

Valuation of fixed assets is important in order to have fair measure of profit or loss and financial position of the concern. Fixed assets are meant for use for many years. The value of these assets decreases with their use or with time or for other reasons. A portion of fixed assets reduced by use is converted into cash though charging depreciation. For correct measurement of income proper measurement of depreciation is essential, as depreciation constitutes a part of the total cost of production.
Evaluation Criteria
This section discusses the important evaluation techniques for capital budgeting. A number of investment criteria (or capital budgeting techniques) are 1. Discounted Cash Flow (DCF) Criteria Net present value(NPV) Internal Rate Return(IRR) Profitability Index(PI)
2. Non-Discounted Cash Flow Criteria Accounting Rate Return(ARR) Payback Period(PBP)
Net present value method

The Net present value (NPV) method is the classic economic method of evaluating the investment proposals. recognizes the time value of money.
It is a DCF technique that explicitly
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The formula for the net present value can be written as follows: NPV = C1 (1+K)1 + C2 + C3 + ------ + Cn _ Co (1+K) 2 (1+K) 3 (1+K) n
I. Internal Rate of Return Method

The Internal rate return (IRR) method is another discounted cash flow technique, which takes account of the magnitude and timing of cash flows. Other terms used to describe the IRR timing of cash flows. IRR can be determined as follow IRR= r- PVco-PVcfat r PV
II. Profitability index method

Yet another time-adjusted method of evaluating the investment proposals is the benefit-cost ratio or profitability index. Profitability is the ratio of the present value of cash inflows, at the required rate of return, to the initial cash outflow of the investment. The formula for calculating benefit-cost ratio or profitability index as follows PI = Present value of cash inflows Initial cash outlay = PV(Ct) Co
III. Accounting rate of return method

The Accounting rate of return (ARR), also known as the Average rate of return, uses accounting information, as revealed by financial statements to measure the profitability of investment. There are number of alternative methods for calculating ARR the most common usage of the ARR determined by the following equation ARR = Average annual profits after taxes Average investment over the life of the project x100
IV. Pay Back Method

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The Pay back method is the most popular and widely recognized traditional method of evaluating investment proposals. Payback is the number of years requires recovering the original cash outlay invested in the project. If the project generates constant annual cash inflows, the payback period can be computed dividing cash outlay by the annual cash inflows. That is Pay Back period = = Initial Investment Annual cash flow Co C
MANAGEMENT OF FIXED ASSETS

The selection of various assets required to create the desired production facilities and the decision as regards determination of the level of fixed assets is primarily the task of the production people. However there are certain financial considerations also involved in the same. As the decision relating to fixed assets involve huge funds for a long period of time and are generally of irreversible nature affecting the long term profitability of a concern, an unsound investment decision may prove to be fatal to the every existence of the organization. Thus management of fixed assets is of vital importance to any organization. The process of fixed assets management involves. 1. Selection of most worthy projects or alternative of fixed assets 2. Arranging the requisite funds/capital for the same. However some important aspects of fixed assets management are The first important consideration to be kept in the mind is to acquire only that much amount of fixed assets which will be just sufficient to ensure smooth and efficient running of business. However in some cases it may be economical to buy certain assets in a lot size. 1) The another important consideration to be kept in mind is the possible increase in demand of the firms products necessitating expansion of its activities. Hence a firm should have that much amount of fixed assets which could adjust to the increased demand.
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2) The third aspect of fixed assets management is that firm must ensure buffer stocks of certain essentials equipments to ensure un-interrupted production in the event of emergencies. Some times there may be a break down in some of the equipments or services affecting the entire production. It is always better to have some alternative arrangement to deal with such situations. But at the same time the cost of carrying such buffer stocks should also be evaluated. 3) The fourth aspect of management of fixed assets is to consider the cost of capital to be invested.
Principles of Fixed Assets Management

The main objective of fixed assets management is to make sound investment in the fixed assets such as land, building, machinery etc. The following are the main principles in managing fixed assets. 1. Selection of most appropriate and suitable fixed assets. 2. Financing and acquisition of fixed assets. 3. Sound depreciation policy. 4. Proper accounting of fixed assets. 5. Periodical appraisal of fixed assets.
RATIO ANALYSIS
The ratio analysis is the most powerful tool of the financial analysis. Several ratios, calculated from the accounting data, can be grouped in to various classes according to financial activity or function to be evaluated.
Definition
The indicated quotient of two mathematical expressions and as The relationship between two or more things. It is evaluating the financial position and performance of the firm. As started in the beginning many diverse groups of people are interested in analyzing financial information to indicate the operating and financial efficiency, and growth of the firm. The ability of the firm to meet its current obligations.
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The extent to which the firm has used its long-term solvency by borrowings funds. The efficiency with which the firm is utilizing its assets in generating sales revenue. The overall operating efficiency and performance of the firm.
Stages of Ratio Analysis

The following procedure is generally followed, while analyzing the financial statements through ratio-analysis. A) Arrangement of data B) Classification of ratios C) Interpretation of Calculated ratios D) Projections through ratios
Expression of Ratios
The Ratios can be expressed in either of the following ways: a) In Proportion: In this form the amounts of the two items are being expressed of common denominator. The example of this form of expression is the relationship between connects and current liabilities as 2:1.
The Parties Interested in Ratio Analysis

The person interested in the analysis of financial statement can be grouped under three heads. (i) (ii) (iii) Owners of investors Creditors Financial executives
Although all these groups are interested in the financial conditions and operating results of an enterprise, the primary information that each seeks to obtain from these statement differs materially reflecting the purpose that the statement is to serve.
Limitations to Ratio Analysis

1. Standards for Comparison
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Ratios of a company have meaning only when they are compared with some standards and it is always a challenging job to find an adequate standard. 2. Company difference: Situation of two companies are never same. Similarly the factors influencing the performance of a company in one year may change in another year. Thus, the comparison of the ratios of two companies becomes different situations. 3. Price level change The interpretation and comparison of ratios are also rendered invalid by changing value of money. A change in the price level can seriously affect the validity of comparisons of ratios computed for different time periods.
4. Different definitions of variables

Comparisons are also made difficult due to definitions. The terms like gross profit, operating profit etc. have precise definitions and there is a considerable diversity in practice as to how they should be measured.
5. Changing situations
A balance sheet may fail to reflect the average or typical situation, as it is prepared as of one moment of time. 6. Differences in accounting methods Different companies, which valuing assets, writes-off, costs, expenses etc., differ from the company, find various differences among the accounting methods used.
Uses of Ratio Analysis

It helps in decision-making. Helps in financial forecasting and planning. Communicating coordinator and control. Unit of creditors Tax audit requirements Utility of creditors.
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Financial analysis is the process of identifies the financial strength and weakness of the firm by properly establishing the relationship between the Items of the balance sheet and the profit and loss account.
Types of Ratios
Ratios can be grouped into various classes according to financial activity or function to be evaluated. The parties interested in financial analysis are short and long term creditors, owners and management short-term creditors main interest is in the liquidity position or the short-term solvency of the firm. Long-term creditors on the other hand are more interested in the long-term solvency and profitability of the firm. In view of the requirement of the various users of ratios, the ratios are classified into four important categories. A. Liquidity Ratios B. Leverage Ratios C. Activity Ratios / Turnover ratio D. Profitability Ratio A. Liquidity Ratio or Financial Ratios: Current Ratio Quick Ratio Acid Quick Ratio B. Leverage Ratio or Long term Ratio: Debt Ratio Debt to equity Ratio Proprietary Ratio C. Activity Ratio or Performance or Turnover Ratio: Inventory Turnover Ratio Fixed assets turnover Ratio Currents assets turnover Ratio Capital Employed to net worth Ratio Total Assets turnover Ratio
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Working Capital Turnover Ratio Sales to Capital Employed Ratio D. Profitability Ratio Gross Operating Ratio Net profit Ratio
A. Liquidity Ratios
Liquidity Ratios means of the firm to meet its currents obligations. In fact analysis of liquidity needs the preparation of cash budgets and cash flow and funds flow statements but liquidity ratio by establishing a relationship between cased other assists to current obligations. Provide a quick measure of liquidity, a firm should ensure that it does not have excess liquidity. A very high degree is also bad idle assists earn nothing. The firms funds will be necessarily tiled up in current assets therefore it is necessary to strike a proper balance between high liquidity and lack of liquidity. The common Ratio which indicate the extent of liquidity or lack of it are Current Ratio Quick Ratio
Current Ratio
The current ratio is calculated by dividing current assets by liabilities. Curent ratio = Curent assents / Curent labilits Current assets include cash and those assets, which can be converted into cash within a year such as marketable securities debtors and inventories. Current liabilities include creditors, bills payable accrued expenses, short-term bank loan, income-tax liability and long-term debt maturing in the current year. Current ratios are measure of the firms short-term solvency. It indicates the availability of current assets in rupees for every one rupee of current liability. This rule is based on the logic that in a worst situation every if the value of current assets become help that firm will be able to meet its obligations this current ratio represents a margin of safety for creditors. The higher the current ratio the higher the margin of safety. The large the amount of currents assets in relation to current liabilities. The more firm ability to meet its current obligations. However an arbitrary stared of 2 to
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1 should not be blindly followed. Firms with less than 2 to 1 current ratio may be doing well, while firm with 2 to 1 or even higher current ratio may be struggling to meet their current obligations.
Quick Ratio
Quick Ratio established a relationship between quick or liquid assets and current liabilities. As assets is liquid if it can be converted into cash immediately or reasonable soon without loss of value. Cash is the most liquid asset other assets which are considered to be relatively liquid and include in quick assets and marketable securities (temporary quoted investments). The quick ratios are found out by dividing quick assets by current liabilities. Quick Ratio = Quick Assets / Current Liabilities (OR) Quick Ratio = Current Assets Inventories / Current Liabilities Generally a quick ratio of 1 to is considered to represent a satisfactory current financial condition. A quick ratio of 1 to 1 or more does not necessarily imply sound liquidity position.
B. Leverage Ratio
The short-term creditors like banker and suppliers of raw materials are more concerned with firms current debt-paying ability on the other hand long term creditors, like debenture holders financial position. To judge the long-term Financial position of the firm financial leverage is capital structure, ratio are calculated. These ratio indicated mix of debt and owners equity financing the firms assets. Leverage ratio may be calculated from the balance sheet items to determine the proportion of debt in total financing. Leverage ratios are also completed from the profit and loss items by determining the extent. The most common leverage ratio is Debt Ratio Debt- Equity Ratio Proprietary Ratio
Debt Ratio
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Debt Ratio may be used to analyses the long-term solvency of a firm. The firm erected in knowing the proposition of the interest bearing debt by capital employed. Total debenture / bonds employed include totals debt and net worth. Debt Ratio= Total Debt / (Total Debt Net Worth) (OR) Debt Ratio = Total Debt / Capital Employed Debt Ratio shows the extent to which debt financing has been used in the Business.The high ratio means that claims of creditors are greater than those of owners. A High level of debt introduces inflexibility in the firms operations due to the increasing inference and pressures from creditors.
Debt Equity Ratio

Debt Equity Ratio is directly computed by dividing total debt by total equity. Debt Equity Ratio = Total Equity A low ratio implies a greater clime of owners than creditors from the point of view of creditors. It represents a satisfactory situation since a high proportion of quality providers a larger margin of safety for them. The higher the debt-equity ration the larger the shareholder earnings. When the cost debt is less than the firms overall rate of return on investment. .
Proprietary Ratio
The total share holders tend net worth is compared with the total tangible assets of this company. This ratio is calculated on the basis of the following formula. It expresses the relationship between bet worth and total assets. Proprietary Ratio = Net Worth / Total Assets Net Worth = Equity Share capital + Preference + Share Capital + Reserve Factious assets Total Assets = Fixed Assets + Current Assets A high proprietary ratio is indicative of strong financial position.
C. Activity Ratios
Turnover ratios also referred to as activity ratios or asset management ratios, measure how efficiently the assets are employed by a firm. These ratios are based on the
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relationship between the level of activity, represented by sales or cost of goods sold, and levels of various assets. The improvement turnover ratios are: inventory turnover, average collection period, receivables turnover, fixed assets turnover, and total assets turnover. Activity ratios are employed to evaluate the efficiency with which the firm manages and utilizes its assets. These ratios are also called turnover ratios because they indicate the speed with which assets are being converted or turned over into sales. Activity ratios thus involve a relationship between sales and assets. A proper balance between sales and assets generally reflects that assets are managed well. Activity ratios help to judge the effectiveness of asset utilization.
Activity ratios can be divided into five types

1. Inventory Turnover Ratio 2. Fixed Asset Turnover Ratio 3. Current Asset Turnover Ratio 4. Working Capital Turnover Ratio 5. Sales to Capital Employed Ratio
Inventory Turnover Ratio

Inventory Turnover Ratio indicates the efficiency or the firm in producing and selling its product. It is calculated by dividing the cost of goods sold by the average inventory. It measures how fast the inventory is moving through the firm and generating sales. The inventory turnover reflects the efficiency of inventory management.The higher the ratio, the more efficient the management of inventories and vice versa. However, this may not always be true. A low level of inventory, which may result in frequent stock, outs and loss of sales and customer goodwill, may cause a high inventory turnover. Cost of Goods sold Inventory Turnover Ratio = Average Inventory
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Opening Inv + Closing Inv
Average Inventory
=
2
Fixed Asset Turnover Ratio

It is also known as Sales to Fixed Asset Ratio. This ratio measures the effectively and profit earning capacity of the firm. Higher the ratio, greater is the intensive utilization of fixed assets. Lower ratio means under-utilization of fixed assets. Cost of Sales Fixed Asset Turnover Ratio = Net Fixed Assets
Working Capital turnover Ratio

The ratio shows the no of times the working capital in on sales this ratio indicates the velocity of utilization net worth is turned over in course of a year. A higher ratio cover the efficient utilization of the working capital and low ratio indicated otherwise. But a very working capital turnover ratio is not a good prospect for any firm and hence the company must take by the company. Working capital turnover ratio = Sales / Working capital turnover ratio
Sales to Capital Employed Ratio

The ratio is ascertained by dividing sales with capital employed. This ratio indicated efficiency in utilization of capital employed generating revenue. This ratio shows the absolute value of raw material consumed absolute value of sales in each year along with the proportion of raw material consumed in relation with sales expressed as percentages. Sales to capital employed Ratio = Sales / Capital Employed
D. Profitability Ratios
Profit is the difference between revenue and expenses over a period of time (usually on year) Profit is the ultimate output of company and it will have to no feature if it fails to make sufficient profits. Therefore the financial manager should continuously evaluate the efficiency of the company in the term of profits. The profitability ratio is
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calculated to measure the term of profits. The profitability ratio is calculated to measure the operating efficiency of the company. Besides management of the company creditors and owners are interested in the profitability of the firm. Generally two manager types of profitability ratios are calculated: Profitability in relation to sales, Profitability in relation to investment Profitability Ratios are: 1. Gross Profit Ratio 2. Net Profit Ratio 3. Debtor Turnover Ratio 4. Total Asset Turnover Ratio 5. Return on Investment Ratio 6. Operating Expenses Ratio
Gross Profit Ratio

Gross profit margin reflects the efficiency with which management produces each unit of product. This ratio indicates the average spread between the cost of goods sold and the sales revenue. When we subtract the gross profit margin from 100%, we obtain the ratio of cost of goods sold to sales. A high gross profit margin ratio relative to the industry average implies that the firm is able to produce at relative lower cost. A high is a sign of goods management. A gross margin ratio may increase due to any of the following factors. Higher sales prices cost of goods sold remaining constant. Lower cost of the goods sold sales prices remains constant. Combination variations in sales prices and cost the margin winding. An increase in the proportionate value of higher margin items. The analysis of the factors will reveal to the management how a depressed gross profit margin can be improved.
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A low gross profit margin may reflect higher cost of goods sold due to the firms inability to purchase raw materials at favorable terms in efficient utilization of plant and machinery or over investment in plant and machine resulting in higher cost of production. Gross Profit Ratio is calculated as follows: Gross profit Ratio = Gross profit / Net sales * 100 Where gross profit = Sales Cost of goods sold
Net Profit Margin Ratio

Net profit is derived at when operating expenses, interest and taxes are subtracted from the gross profit. The net profit margin ratio is measured by dividing after tax by sales. Net Profit Margin= Profit after tax / Sales The ratio establishes a relationship between net profit and sales and indicated managements efficiency in manufacturing administering and Selling the products. This ratio is the overall measures of the firms ability to turn each rupee sales in to wet profit. If the net margin is inadequate, the firm will fail to achieve satisfactory return on owners equity. The ratio also indicated the firms capacity to which stand adverse economical conditions.
Return on Investment Ratio

This is turn, measures the profitability of equity funds invested in the firm and shows the share holders how efficiently their investment have been utilized. It is calculated as. Profit after tax / Net worth
Operating Expenses Ratio

The operating expenses ratio explains the changes in profit margin ratio. This ration is computed by dividing operating expenses i.e., cost of goods sold plus selling expenses and general and administrative expenses (excluding interest) by sales. Operating Expenses ratio = Operating expenses / Sales * 100 A higher operating expense is unfavorable since it will leave a small amount of operating income to meet interest, divided etc.
Earnings per share
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The final ratio employed in this analysis is earning per share. This is one of the most important ratios from the share holders point of view as it measures the profitability of the share holders investment in a direct manner. It is calculated as. profit after tax / Number of Equity shares. In conclusion, it may be said that although ratios when interpreted properly would throw a good deal of lights on the way the company in question has been operating, it would always be better if they were studies in conjunction with absolute figure.
Return on Investment
The term investment refers to total assets or net assets. Net assets equal to net fixed asset plus current assets minus current liabilities. It is calculated as = EBIT / total Asset Total Asset = (N.F.A + C.A) Where EBIT = Earnings before interest and Tax N.F.A = Net fixed assets
Dividend per share

Dividend per share is the earnings distributed to ordinary share holders divided by the number of ordinary share outstanding. DPS = Earnings paid to share holder / no of ordinary shares outstanding
Dividend payout Ratio

The dividend payout ratio (or simply payout ratio) DPS (or total dividend by the EPS) (or profit after tax) Payout Ratio = DPS / EPS
Fixed Assets Ratios

The main objective of providing this chapter is just to bring out certain ratios regarding to fixed assets and to provide satisfactory norms thereon to GOPALAKRISHNA TEXTILE MILLS Pvt Ltd. Hence, the wide coverage of ratio analysis not discussed and maintained for GTMPL. Certain ratios provided for GTMPL will enhance the efficiency and effectiveness of fixed assets management in the firm. Normally a ratio is the
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indicated quotient of two mathematical expressions or the relationship between two or more things. The following are the different ratios: 1. Fixed assets to Net worth ratio 2. Fixed assets ratio 3. Fixed assets turnover ratio 4. Fixed assets to funded debt ratio 5. Fixed assets to capital ratio 6. Fixed assets to networking capital ratio 7. Fixed assets to Current assets ratio.
DATA ANALYSIS AND INTERPRETATION

TABLE-1
FIXED ASSETS TO NET WORTH RATIO
=
fixed assets Share holders fund
Year
Fixed assets
Shareholders funds
Ratio
2009 2010 2011 2012 2013
4350.62 13236.37 18525.70 24158.08 26388.35
5577.21 6136.54 7969.42 9085.00 35767.06
0.75 2.16 2.32 2.66 0.74
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FIXED ASSETS TO NET WORTH RATIO CHART-1
INTERPRETATION
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The Ratios are gradually increasing year by year from 2009 to 2012at the range from 0.78 to 2.66 so implies the owners fund is sufficient to finance fixed assets is abut in the year 2013 it has been gradually decreased to 0.74, so in this year i.e. in 2009 the firm depends on the outsiders to finance fixed assets.
TABLE-2 FIXED ASSETS RATIO

The Ratio establishes the relationship between fixed assets and total long funds. = Fixed Assets Total long term funds Total long term funds=Shareholders funds +Long term borrowings.
Year
Fixed Assets
Long term funds
Ratios
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2009 2010 2011 2012 2013
4350.62 13236.37 18525.70 24158.08 26388.35
10258.67 22264.36 32901.40 40386.36 65870.71
0.42 0.59 0.56 0.60 0.40
CHART -2
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INTERPRETATION
The fixed assets ratio is 0.42 in the year 2009, later it increased to 0.59 in the year 2010 and in the next year i.e, 2011 it decreased to 0.56. This fixed assets ratios are gradually fluctuating year by year. In all the years the total long term funds are more than the fixed assets, it implies that the part of working capital requirements is meet out long term funds of the firm.
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TABLE-3 FIXED ASSETS TURN OVER RATIO

It is the relationship between the sales and fixed assets. = Sales / fixed assets Year sales Fixed Assets Ratios
2009 2010 2011 2012 2013
9333.97 23858.36 31587.36 41045.08 49472.02
4350.62 13236.37 18525.70 24158.08 26388.35
2.15 1.80 1.71 1.70 1.87
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CHART- 3
INTERPRETATION Fixed assets turnover ratio is 2.15 in the year 2009 and then it is continuously decreased to 1.80,1.71 and 1.70 from the year 2010 to 2012and in the next year i.e, in 2013 it increase slightly to 1.87 By this interpretation it indicates that the fixed assets ratio is increased in the year 2009 to 2013 in this year it indicates the efficiency of fixed assets by the form
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TABLE 4 FIXED ASSETS TO FUNDED DEBT RATIO

fixed assets/funded debt = Funded debt=long term loans
Year
Fixed Assets
Funded debt
Ratios
2009 2010 2011 2012 2013
4350.62 13236.37 18525.70 24158.08 26388.35
2855.27 10723.23 15069.11 13733.65 17832.33
1.52 1.23 1.23 1.76 1.48
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CHART - 4
INTERPRETATION In the year 2009 the ratio is 1.52 and in next year 2010and2011 the ratio the year 2013. are constant 1.23 and in next year 2012 it increased to 1.76 and then it decreased to 1.48 in
TABLE - 5
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TOTAL ASSETS TO TOTAL CURRENT ASSETS RATIOS

The relationship between the fixed assets and current assets = Year Total fixed assets / total current assets Current assets Ratios
Fixed Assets
2009 2010 2011 2012 2013
4350.62 13236.37 18525.70 24158.08 26388.35
4408.31 10855.47 18321.76 26196.83 26616.98
0.98 1.22 1.01 0.92 0.99
CHART - 5
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INTERPRETATION
In the year 2009, total assets ton total current Assets ratios are 0.99 in The previous year in 2010 it increased to 1.22 and later on it frequently and fluctuates year by year i.e; it increases
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TABLE -6 FIXED ASSETS TO CAPITAL RATIO

The ratio measures the relationship between fixed assets and total capital .the ratio can be calculated as follows = Total fixed assets / total capital
Year
Fixed Assets
Total capital
Ratios
2009 2010 2011 2012 2013
4350.62 13236.37 18525.70 24158.08 26388.35
9908.68 22264.36 32901.40 40386.36 43836.66
0.44 0.59 0.56 0.60 0.60
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CHART-6
INTERPRETATION
The capital ratios are better up to 2 years i.e: from 2005to2006 because it increase to 0.44 to 0.59, but all of a sudden in the previous year i.e: 2007 it decreases to 0.56 and later on it increases to 0.60 in the next two years and then it become constant for last two years i.e; in 2008and2009, the constant ratios are 0.60.
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TABLE-7 FIXED ASSETS TO WORKING CAPITAL RATIO

The ratios show the relationship between the fixed assets and net working capital. The ratio can be calculated as follows as, = Total fixed assets/net working capital Year Fixed Assets Net working Capitl Ratios
2009 2010 2011 2012 2013
4350.62 13236.37 18525.70 24158.08 26388.35
1277.65 5667.67 9556.53 10726.59 10030.68
3.41 2.34 1.94 2.25 2.63
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CHART-7
INTERPRETATION In the starting year in 2009 the working capital ratio has a good position the ratio is 3.41andthen the previous years it constantly changes it ratio with certain increases and decreases.
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FINDINGS
Fixed assets Ratio of the company for the year 2009-2010 which indicates good financial policy. The Fixed Assets of the company id increased in the year 2009-2010 to 20122013. The company sales has increased in the year 2009-2010 to 2010-2011,then decreased in next years. The entire department in the company is computerized. There is no discount in this company. Because of computerization there is cost reduction in the form of reduction in paper work and also quickness of action. There is a slight fluctuation in the un secured loans for year to year. Due to increased % of secured loan of the firm. The firm is highly depends on secured loan an unsecured loan.
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SUGGESTIONS
The company can utilize the reserves and surplus by either capitalizing or can invest the money somewhere as investment to get benefit. The company can also increase the share holders fund to finance fixed assets. The company can also improve the effective utilization of fixed assets to increase sales. By creating more reserves, the net worth can be further increased. Increase or decrease in current assets liabilities should be rightfully labeled. Items consisting of cash flows from different activities should be clarified in the notes of accounting section and related number can be included for cross references. To decrease sundry debtors, it is better to increase the sales by offering liberal credit facilities to customers.
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CONCLUSION
` The fixed assets management is required for every organization. The organization which managers it fixed assets effectively proves to be successful to increase production and sales. Hence maintaining fixed assets management is should deals the proper utilization of fixed assets in the organization. It was great experience in this company according to my experience the company has to concentrate. To increase the funds they should take prepare steps to maintain tax needed assets I would like to thank CCPL for allowing to undertake dissertation in the company.
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BIBLIOGRAPHY
BOOKS
I.m pandy, financial management M.y. khan and p.k.jain, financial management Prasannachandra, financial management R.narayana swamy, financial accounting S.n. maheswari, financial management
WEBSITE
http/:www.google.com www.wikipedia.com
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CHITTOOR CANNING PVT LTD BALANSHEETS OF RATIO ANALYSIS FIXED ASSETS For the year ended 31st March,2009,2010,20111 ,2012 AND 2013
PARTICULARS Source of funds 1.Share Holders funds a) Share Capital b) Reserves and Surplus 2.Loan Funds a) Secured Loans b) Unsecured Loans Total Application of funds 1. Fixed Assets a) Gross Block b) Less : Depreciation c) Net Block d) Capital Work in Progress Investments a) Inventories b) Sundry debtors c) Cash and Bank balances d) Loans 5191.24 385.97 3976.36 2160.18 3976.36 3,993.06 9,244.81 15,069.11 618.06 32,901.40 25,035.99 6,510.29 18,525.70 5,604.02 9,194.08 6,706.59 350.67 2,070.42 3,976.36 5,108.64 16,382.92 13,733.65 1,184.79 40,386.36 31,824.32 7,666.24 24,158.08 754.45 10,636.86 7,667.92 2,650.37 5,241.68 3,976.36 71,790.70 2009 2010 2011 2012 2013
2855.27 1826.19 9908.68 7069.47 2718.85 4350.62 719.09 235.54 1193.26 2011.67 629.03
10723.23 5404.59 22264.36 17884.47 4648.10 13236.37 2652.95 5294.05 4098.66 1462.76
17,832.33 12,271.32 43,836.66 35,516.23 9,127.88 26,388.35 862.01 12,092.91 8,814.31 420.10 5,289.66
and 338.81
Advances Less: Current Liabilities 4172.77 and Provisions a) Current liabilities b) Provisions Net Current Assets (Deferred tax Assets) Miscellaneous 2828.57 66.55 1277.65 11.15
11302.96 5052.57 572.72 5667.67 683.48 13.89
18,321.76 9,202.11 354.42 9,556.53 8,765.23
26,196.83 10,188.34 538.25 10,726.59 3.59 9,319.38 711.30 10030.68 Page 78
expenditure Profit Account Total and loss 3314.63 9908.68 22264.36 32,901.40 40,386.36 1242.48 43,836.66
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CHITTOOR CANNING PVT LTD PROFIT AND LOSS A/C OF RATIO ANALYSIS FIXED ASSETS Profit and loss Account for the year ended 31st March 2009 to 2013
Particulars Income Sales(gross) 2009 9333.9 7 Less: Excise duty Sales(net) Other Income Increase/decrease In stocks Total expenditure Raw 21.88 383.84 8972.0 2834.21 21024.15 102.15 197.41 21323.17 9148.72 4050.96 13.65 872.5 1881.65 1331.15 807.04 18105.67 3218.04 164.17 449.26 933.08 2604.61 1107.66 2094.17 566.73 1,580.80 1392.16 2591.74 Page 80 2979.54 28607.79 62.34 897.63 27772.5 15484.93 4481.62 954.95 1534.57 989.59 852.59 24298.25 3474.25 272.42 2010 23858.36 2011 31587.33 2012 41,045.0 8 4,108.43 36936.65 33.59 471.24 37441.48 19232.45 8,629.04 2013 49472.02 3106.39 46365.63 93.21 14.16 46473 24779.93 8874.8
1 materials 5600.6
Consumed 8 Manufacturing Expenses 1272.9 (excise duty paid) Cost of Material Sold Salaries wages and Allowances Other Expenses Financial Charges Depreciation Total Profit Before Tax Provision for TaxCurrent Less:MAT Entitlement provision for defamed Tax Profit After Tax Credit 2 -1309.1 6.48 353.78 697.86 314.83 349.42 9905.0 8 933.08
644.45 8,629.04 2331.7 1832.36 1156.89 35276.74 2164.74 242.93 52.78
659.16 1862.53 2479.56 2302.59 1512.99 42471.56 4001.44 453.41 453.41
Balance brought forward 2731.5 from previous year Profit available appropriation Transfer to 5 for
51.81 2552.8 1500
604.21 2698.38 1500 397.64 51.97 2698.38 5.27 3976359 5
837.09 93.75 1000 397.64 67.58 858.92 3.98 3976359 5
858.92 187.5 1500 397.64 67.58 1242.48 6.55 39763595
general 350
reserves Proposed dividend Tax on dividend Balance carried
to 3314.6
397.64 50.95 2552.8 6.55 3976359 5
balance sheet 3 Basic and diluted eps. (Rs.) No. of shares used in computing diluted eps. basic and
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SCHEDULE OF FIXED ASSETS

(Rs In Lakes)
pariculars 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013
building Plant and machinery Plant and machinery on lease Furnitures and fittings Motor vehicle total
134810 8914895
102036 12643231
200412 30482410
26845 31965284
76543 3795680
4143134
5578061
2815603
1382695
1674210
70112
62404
31622
34219
23567
1823 13264144
233 18385965
1246 33531293
7250 33416293
4321 5574321
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