COST ANALYSIS NIRANI SUGARS LTD,

Chapter I Introduction 1.1 EXECUTIVE SUMMARY

The Nirani sugar mill was originally established as a khandasri sugar factory of 1250 TCD in the year 1997-98. Subsequently making use of the govt of Indias liberalized policy. Govt of India notification DCS /S/ 14/ 97 dated 2-6-98, which conversion of khandasri sugar unit into vacuum pan sugar factories.

Cost accounting is an old as the human being itself. Since the financial accounting has some limitation. Cost accounting has its own importance being an important category of accounting system.

The cost accounting system is very helpful to sugar industry. After adopting cost accounting every business must analyze it cost accounting system very care fully

Material, labour, over heads are the main elements of the Nirani Sugars Ltd. These elements play very important role in the organization. The company giving more importance to this on the other hand well trained labour force working towards the company objectives. Various records are maintained by Nirani Sugars Ltd and each department has its own cost records.

COST ANALYSIS NIRANI SUGARS LTD,

The study of Cost Analysis of sugar industry with special reference to Nirani Sugars Ltd Mudhol: 1.2 Introduction of cost accounting
We have entered into an area of liberalization the development process has opened the doors of economy and in globalised economic environment it is necessary to protect the interest of consumers, investor, company and the country as a hole. In a liberalized economy, there is no role of traditional management in corporate world now only the professional management is required to control of the costs of the present day origination

Modern area is called the industrial area. Every where there is vast developing in the field of industry. On account of the development of the industries, the modern industries require minimum cost of production and such as maximization of profits. For this purpose, they depend on the financial statements such as trading profits and loss account and balance sheet but these financial statements give information as whole. It means the entire industry is treated as one unit. It is difficult task to locate the errors.

Cost account is recent development. It is the branch of financial accounting. It maintains the records unit wise, process wise, job wise, department wise. At the end, we can easily control are help in reduction of costs by preparation of the statements unit wise or job wise. So cost accounting is developed basically to remove the limitation of financial accounting

COST ANALYSIS NIRANI SUGARS LTD,

1.3 OBJECTIVE OF THE STUDY

The following are the objective of study

a) Ascertainment of cost. b) Determination of selling price. c) Cost control and cost reduction. d) Ascertaining the profit of each activity. e) Assisting management in decision making

COST ANALYSIS NIRANI SUGARS LTD,

Chapter II - COMPANY PROFILE Name of the company : M/S Nirani Sugars Ltd Kulali road MUDHOL Dist: Bagalkot M/s Nirani Sugars Lokapur road MUDHOL At: Bijapur Muragesh .R. Nirani Sole trading concern Registered under companies Act of 1956 Auditor of company M/s Bhattad & Company K.S.I.I. D.C K.S.F.C Sangli Bank Jamakhandi S.B.I. Mudhol Branch Indian Bank Lokapur Gramen bank of mudhol

Register Office

Branch Office Managing Director Status of the company Constitution of the firm

: : : :

Financial institution of the company Banker of the company

: :

COST ANALYSIS NIRANI SUGARS LTD,

2.1 VISION AND MISSION

We will provide products of superior quality at competitive price and ensure sustained profitability and growth. We will protect the interest of all concerned promoters, shareholders, customers, distributors, employees and community. We believe in fair trade practice, standards and strive for total customers satisfaction, keeping the environment eco friendly. We believe that our people are most valuable assets for personal and organizational growth. We will treat our people with dignity and look after the safety and welfare of individuals and there families. We provide sugar which is major necessity for the country. Sugar industries are providing ethanol which can be added in diesel and diesel is major requirement of the nation.

COST ANALYSIS NIRANI SUGARS LTD,

2.2 HISTORY OF NIRANI SUGARS LTD

1.

M/s Nirani Sugars Ltd,, set up in 1996 was promoted by Mr.Murugesh R

Nirani. B.E, D.B.M., a technical Graduate and local MLA of Bilagi and Minister of large and Medium Scale Industry, Govt of Karnataka. He comes from an agricultural family from Bilagi Taluk of Bagalkot Dt. He started as an industrialist with setting up of a modern Khandasari Unit at Mudhol. He is also very actively involved as a Managing Director of Badgandi Sugars Ltd, a new 2500 TCD sugar and Co-gen plant at his constituency Bilagi. The new unit has commenced commercial production in December 2005. He has also been recognized and awarded Bharat Udyog Ratna award from Govt of India. He has also taken over a sick mini cement plant of 100 TPD capacities at Mudhol area, which has now been put into commercial operation with a capacity of 200 TDP within a short span of time. He has also contributed his service in setting up residential school and D, Ed College at Mudhol.
2.

Nirani sugars Ltd. Is presently operating a sugar mill of 5000 tones cane

day (5000 TCD). This sugar mill was originally established as a khandasari sugar factory of 500 TCD in the year 1997-98. In fact this was the most modern khandasari sugar factory & was first in the country to have started with high pressure boiler, turbo generator set with captive power generation, multiple effect pressure evaporator system with falling film evaporators etc. it successfully produced goods quality white crystal sugar. But as khandasari unit, it had its own constraints due to technical limitations and govt policies. 6

COST ANALYSIS NIRANI SUGARS LTD, 3. Subsequently, making use of the govt. of Indias liberalized policy, vide govt of

India notification DCS /S/14/97 dated 2-6-98, which permitted conversion of khandsari sugar Readopting vacuum evaporation & vacuum pan boiling systems along with related changes. NSL did not lose time to expand the capacity to 5000 TCD, side by side taking development measures to increase cane area & cane availability. Today NSL is a regular sugar factory with 5000 TCD capacity with improved efficiencies. 4. Having regard to the above, the new sugar projects in the country, are coming up

with a capacity of 5000 TCD & more with the facility of cogeneration of power. A number of existing mills in the country are expanding to even bigger capacities like 7500 TCD, 10000 TCD & so on. 5. The cogeneration of power permits generation of surplus power, which is

encashable and thus helps augmentation of income to the industry substantially on a sustained basis. The profitability of the cogeneration plant increases with increase in the size of the plant. Bigger cogeneration plants are feasible only with bigger sugar mills, either as forward integration or with back up support for fuel. 6. The market and the price for the power produced is assured as the surplus power

so generated is under written by KPTCL through power purchase Agreement. The govt of Karnataka also shares the aforesaid viewpoint & encourages cogeneration of power by sugar factories using bagasse as a fuel. In support of this, the govt has announced a capital subsidy of Rs. 25 lakhs per MW of surplus power, for such cogen projects. 7. In fact NSL has already entered into an agreement with TATA power trading

company Ltd. For sale of power at a price of Rs3.61 per unit. 8. To match the sugar mill expansion from 5000 TCD to 10000 TCD, NSL proposes

to double its cogeneration capacity also from 16MW to 48MW.

COST ANALYSIS NIRANI SUGARS LTD,

Chapter III Cost Analysis 3.1 MEANING OF COST

Cost in simple words, means the total of all expenses. Cost is defined as the amount of expenditure incurred on a given thing. Thus it is that which is given or sacrificed to obtain something. ICMA London Cost is the amount of expenditure incurred on or attributable to a given thing. In a business where selling and distribution expenses are quite nominal, the cost of the article may be calculated without considering the selling and distribution overheads. While in a business, where the nature of the product requires heavy selling and distribution expenses calculation of cost without taking in to account selling and distribution expenses may prove very costly to the business. Then cost may be factory cost, office cost, cost of sales and even an item of expense is also termed as cost. Prime cost includes expenditure on direct material, direct labor and direct expenses. Money spent on materials is termed as cost of materials the spent on labor as cost of labor and so on. Thus, the used of term cost without qualification is also quite misleading. Again, different costs are found out for different purposes. To work-inprocess is valued at factory cost while stock of finished goods valued at office cost. Numerous other examples can be given to show the term cost des not mean the same thing under all circumstances and for all purposes. Many items of production are handled in an optional manner, which may give different costs for the same production or job without in any way of cost accounting.

3.2 ELEMENTS OF COST

COST ANALYSIS NIRANI SUGARS LTD, Elements of cost mean the essential parts or components of goods or service or jobs. In other words elements of cost are part of the total cost and include the main item of expenditure incurred for production of goods, services and jobs.

Analysis and classification of cost Cost is the amount of expenditure incurred for production of goods and services. Thus cost is composed of three elements, viz, material, labor, and expenses.

Classification of cost Cost classification is the process of grouping costs according to their common features or characteristics. Classification is essential to find out the cost of production.

Objective of classification of cost 1. 2. 3. It helps the management for implementing cost control and decision making. It helps for calculation of cost of production. It helps for valuation of work-in-progress.

Element wise classification

Cost classified on the basis of element wise is as follows 1. 2. 3. Material cost Labor cost Expenses

Material Cost:
9

COST ANALYSIS NIRANI SUGARS LTD, This is the cost of commodities supplied to an undertaking.(I.C.M.A) Materials are further divided in to two parts (1) Direct materials (2) Indirect materials.

1)

Direct materials: Direct materials are those materials which can enter into and form of the finished product. Direct materials cost is the which can be

conveniently identified and allocated to cost units.

2)

Indirect Materials:

Indirect materials are those materials which cannot be

conveniently identified with cost units.

Labor cost:
These are costs of remuneration, such as wages salaries, commission, bonus etc. Of the employees of an undertaking

1)

Direct wages: Wages paid to laborers who are directly engaged in converting raw materials into finished products. It is also called Direct Labor, Productive Labor, and Prime cost.

2)

Indirect Labor: Indirect labor is not directly engaged in the production of goods but only to assist or help in production of goods or services.

Expenses:

10

COST ANALYSIS NIRANI SUGARS LTD, The expenses means the cost of services provided to an undertaking and the notional cost of the use of owned assets. In other-words costs other than the material and labor are called expenses.

Direct Expenses: Direct expenses are those expenses which can be specifically incurred in connection with a cost unit. E.g. hire of special plant for a particular job.

Indirect expenses:

Indirect expenses are those expenses which cannot be directly

identified with a particular job.

Overheads:
An overhead includes indirect material, indirect labor, and indirect expenses. In general terms, overhead comprise all expenses incurred for in connection with the general organization of the whole or part of the undertaking that is the cost of operation supplies and services used by the undertaking and including the maintenance of capital assets. The main groups into overheads may sub divided are as follows.

1. 2. 3. 4. 5.

Manufacturing overheads Administration overheads Selling overheads Research and development overheads Distribution overheads.

Function wise Classification:11

COST ANALYSIS NIRANI SUGARS LTD, Costs classified on the basis of function wise are as follows: Production cost or manufacturing cost or work cost Administration cost Selling cost Distribution cost

1. Production cost: This is the cost which begins with supplying of materials, labor and service and ends with the completion of production other terms used in this connection are factory overhead. Examples: 1) 2) 3) 4) 5) Indirect labor Foremens salary Cleaners salary and wages Gatekeepers salary Salary of time keeping department Tools operators wages Store keeping department salary Factory rent and rates Insurance of factory Consumable stores Indirect materials cost such as cotton waste, nuts and bolts, lubricating oil, nails etc. 6) 7) Gas, fuel and water, stationery to the factory Depreciation on factory equipment, factory building, plant and machinery 12

COST ANALYSIS NIRANI SUGARS LTD, 8) 9) Repairs of factory equipment, factory building and machinery Depreciation on loose tools

10) Laboratory expenses

11) Labor welfare expenses 12) Canteen expenses 13) Over time wages 14) Contribution to workmens compensation fund

Administration cost: This consists of all expenses incurred in the direction control and administration

of an undertaking. Examples: 1) 2) 3) 4) 5) 6) 7) 8) 9) Salaries of office staff, accounts, MD, GM Directors fees Bank charges Postage stationery telephone Rent rates of office Insurance of office building and equipments Depreciation on office building equipment and furniture Printing charges of office Audit fees

10) Legal charges

13

COST ANALYSIS NIRANI SUGARS LTD,

Selling cost:
Other expenditures incurred for sales and stimulating demand and for securing

orders are known as selling cost. Examples: 1. Salaries and commission of salesmen 2. Show room expenses 3. Samples, free gifts 4. Commission to agents or distributors 5. Advertising and Publicity expense 6. Marketing expenses 7. Expenses incurred for recovering the bad debts 8. Subscription to trade Journals and commercial Journals 4 Distribution cost: It is an expenditure incurred for distributing the goods Examples: Packaging cost Carriage outwards Warehousing costs, such as repairs, depreciation lighting of warehouse Loading charges Dispatch expenses Shortage of finished goods in warehouse Finished goods damaged in transit

14

COST ANALYSIS NIRANI SUGARS LTD,

Classification according to Behavior:

Some costs are increased or decreased in production directly; some costs remain unaffected while others change but not in direct proportion to the change in volume of production.

These are: 1. 1. 2.

Variable cost Fixed costs. Semi-Variable or Semi-Fixed costs

Variable cost: These cost an in direct proportion to the volume of output. Cost per unit will remain the same. If output increases total variable cost also increases and if output decreases total variable cost also decreases. e.g.: Direct materials. Direct wages Power

Fixed cost:
The total fixed costs remain unaffected either with the increase or decreases in the output. But cost per unit goes on changing. Rent and rates of building. Depreciation of building. Insurance. Interest on capital. 15

COST ANALYSIS NIRANI SUGARS LTD, Municipal taxes.

Fixed cost can be further classified into 1) Committed fixed costs 2) Discretionary fixed costs

1) Committed fixed cost: Consist largely of those fixed costs that arise from the possession of plant, equipment & basic organizational structure. For example, once building is elected and plant is installed nothing much can be done to reduce the costs such as depreciation.

2) Discretionary cost: Are those which are set a fixed amount for specific time period by the management in the budgeting process. These costs directly reflect top management policies have no particular relationship with the volume of output. These cost

therefore be reduced or entirely eliminated, if the circumstances so require. Examples of such costs are Research & Development costs advertising & sales promotion costs, donation management consulting fees etc. These costs are also termed as managed of programmed costs.

16

COST ANALYSIS NIRANI SUGARS LTD,

Semi-Variable cost:
These costs are partly fixed and partly variable. These costs are thus partly affected by fluctuations in the level of activity. Examples: Depreciation, Repair & maintenance, Telephone expenses. Other type of costs:

Decision making costs: Decision making costs are special purpose costs that are applicable only in the situation in which they are complied they have no universal application. They need not tie into routine financial accounts to the accounting rules.

Controllable and uncontrollable cost:

Controllable costs are those which can be influenced by the action of a specific member of the understanding costs which cannot be so influenced are termed as uncontrollable cost. For example the expenditure incurred by the room is controllable by the foremen in- charge of that section but the hare of the tool room expenditure which is apportioned to a machine shop cannot be contracted by a machine shop forces.

17

COST ANALYSIS NIRANI SUGARS LTD,

Differential, Incremental or Decrement cost:

These are costs which do not involve cash outlay. They are not included in cost accounts but are important for taking into consideration while making management decisions. For example interest on capital is ignored in cost account through it is

considered in cost financial accounts. In case two projects require unequal outlay & cash the management must take into consideration interest on capital to judge the relative profitability of the projects. According to ICMA London Costing is the techniques & process of ascertaining costs These techniques are the rules & regulations to govern or regulate the process of ascertaining the costs or services. Therefore these rules & regulations are carried from unit to unit immediately to the industry & formation of policy. Thus costing is a routine work of cost ascertainment.

Objectives of cost accounting:

f) Ascertainment of cost. g) Determination of selling price. h) Cost control and cost reduction. i) Ascertaining the profit of each activity. j) Assisting management in decision making.

18

COST ANALYSIS NIRANI SUGARS LTD,

Advantages of cost accounting:

a) Discloses profitability of activities. b) It helps in cost control. c) It helps in formulating policies. d) It helps in decision making. e) It guides in fixed selecting prices. f) It helps for fixing the standard of efficiency of workers. g) It facilitates the assessment of tax. h) It helps to judge the financial position & credit worthiness of the business.

3.3 Cost reduction and cost control techniques used in Nirani Sugars
19

COST ANALYSIS NIRANI SUGARS LTD, 1) Avoiding of excessive overtime. 2) Reduced wastage in packaging of sugar. 3) Reduction in transportation cost of sugar cane. 4) Simplification of the process of production. 5) Suitable communication system with telephone intercom. 6) Purchase computer for accounting process. 7) Keeping minimum level of inventory. 8) Effective and economical purchases of materials.

3.4 Difficulties in installation of cost accounting system in Nirani Sugars Ltd:

Lack of support from top management: In existing system there is no time for top management to check the regular accounting process. In this case there is no additional work should be taken in the company.

Non-co-operation of supervisors: The sugar is the essential for day-to-day activities so the supervisors have no time to record the different things related to costs.

Heavy costs: 20

COST ANALYSIS NIRANI SUGARS LTD, For installation of cost accounting system is heavy cost to company. For the installation of cost accounting system in Nirani Sugars the separate department should be made.

Difficulties to calculate costs of work in progress in sugar:

There is a difficulty in calculation of work in progress in sugar industry.

Recommendation for installation of cost accounting system:

1) Divide the department according to the revenue producing and non revenue producing department this helpful in determining cost centers. 2) Simplify the working procedure in each cost center and design suitable and proper

forms and records for each of the departments. 3) 4) 5) Fix the procedure for collection of both cost and non cost data for each center. Fix the standard for incurrence of costs in cost center. Prepare forms, cards reports, and books etc for keeping cost records.

3.5 The following are the cost centers in Nirani Sugars Ltd:
1) Production Cost Center: a) Packing. b) Quality control. c) Boiler section. d) Storage section. e) Pan section. f) Mill section.

21

COST ANALYSIS NIRANI SUGARS LTD, g) Power generation.

2) Marketing Cost Center: a) Transportation cost center.

3) Administration Cost Centers: a) Security and maintenance of plant. b) Human Resource Development.

The following are the cost units of Nirani Sugars Ltd:

Name of the item Sugar cane Sugar Transportation Water charges Oil & diesel Canteen Electricity Boiler Cost unit Per Tone Per Quintal Per trip / per K.M Per thousand Liters Per liters Per person served Per K.W.H. Per thousand kilo grams of steam

Material costing
22

COST ANALYSIS NIRANI SUGARS LTD, Year 2006-2007 2007-2008 2008-2009 Tones consumed 136903.6842 202997.6470 215068 Rate per tone 950 850 1000 Amount 130058500 172548000 215068000

matrrial cost chart

250000000 200000000 150000000 Series1 100000000 50000000 0 2006-07 2007-08 2008-09

The raw material consumption from the year 2006-2007 - 2008-2009. In case of 20062007 the quantity of sugar cane consumed 136903.6842 tones and it is increased to 202997.6470 and 215068 respectively in the year 2007-2008 and 2008-2009.

Human resource department

23

COST ANALYSIS NIRANI SUGARS LTD, Departments Administration and HOD Manufacturing and engineering Cane department Security office Civil 2006 41 340 65 19 7 Total no of employees 2007 43 345 68 20 15 2008 44 351 70 22 19

Human Resourse department

400 350 300 250 200 150 100 50 0 Administrative Manufacturing & HOD and engineering Cane Security office Civil 2006-07 2007-08 2008-09

All the department the manufacturing and engineering department having more number of employees. This increasing trend indicates is a increasing production.

Department wise salary per annum

Departments

2006

2007

2008 24

COST ANALYSIS NIRANI SUGARS LTD, Administration and HOD Manufacturing and engineering Cane department Security office Civil 1,95,600 7,50,596 1,60,156 42,000 41,000 2,09,341 7,90,900 1,80,300 45,000 43,300 2,16,651 8,07,175 1,95,200 48,000 46,000

900000 800000 700000 600000 500000 400000 300000 200000 100000 0 Administrative Manufacturing & HOD and engineering Cane Security office Civil 2006 2007 2008

Over heads

Particulars
Factory overhead Administration and overheads Selling and distribution overheads Total

2006-2007
9,180,600 1,530,100 3,763,937 14,474,637

2007-2008
15,972,950 2,381,850 4,140,990 22,495,790

2008-2009
237,300,00 3,744,000 13,868,850 41,342,850

25

COST ANALYSIS NIRANI SUGARS LTD,

25000000

20000000

15000000

factory over head administrative over head selling & distribution over head

10000000

5000000

0 2006-07 2007-07 2008-09

Seeing the table the factory over heads increasing considerably it indicates growth in production. Since the manufacturing and engineering department constitutes major part in total number of employees and wages the factory overheads also forms major part in total overheads.

Chapter IV - Cost Statements

4.1 STATEMENT OF COST SHEET OF NIRANI SUGARS LTD

Particulars Purchase of raw material Closing raw material Raw material consumed Freight inwards Prime cost Factory over heads

2006-2007 130,0585,00 130,058,500 13,005,850 143,064,350 9,180,600

2007-2008 172,548,000 172,548,000 18,395,725 190,943,725 15,972,950

2008-2009 215,068,000 215,068,000 24,032,400 239,100,400 23,730,000 26

COST ANALYSIS NIRANI SUGARS LTD, Depreciation on building Depreciation on machinery Depreciation on electricals Work cost Office over heads Depreciation on computer Depreciation on office equipments Cost of production Opening stock of finished goods Less :closing stock of finished goods Cost of goods sold Selling over heads Cost of sales 1,000,000 1,200,000 250,000 154,694,950 1,530,100 50,000 150,000 156,485,050 1,534,065 4,090,840 153,928,275 3,763,937 157,692,212 1,5000,00 1,7000,00 300,000 210,416,675 2,381,850 60,000 2000,00 213,058,525 3,928,720 8,839,620 208,147,625 4,140,990 212,288,615 2,000,00 2,200,000 350,000 267,380,400 3,744,000 70,000 300,000 271,494,400 4,149,800 17,337,000 258,307,200 13,868,850 272,176,050

Analysis of cost sheet:

Prime cost: The prime cost in 2006-2007 143,064,350 and in 2007-2008 it was increased to 190,943,725 and 2008-2009 it was increased to 239,100,400 .This cost is increase to year by year .

Work cost: The work cost in 2006-2007 154,694,950 and in 2007-2008 it was increased to 210,416,675 and 2008-2009 it was increased to 267,380,400.

Cost of production: The cost of production in 2006-2007 156,485,050 and in

2007-

2008 it was increased to 213,058,525 and 2008-2009 it was increased to 213,058,525.

27

COST ANALYSIS NIRANI SUGARS LTD, Cost of goods sold: The cost of goods sold in 2006-2007 153,928,275 and in 2007-

2008 it was increased to 208,147,625 and 2008-2009 it was increased to 258,307,200.

Cost of sales: The cost of sales in 2006-2007 157,692,212 and in 2007-2008 it was increased to and in 212,288,615 2008-2009 it was increased to 272,176,050.

Findings: 1. The increasing prime cost is because of is increasing material consumed by the company.

2. The work cost is increasing by year to year because in factory over heads also increasing.

3. The cost of production is to increasing because office overheads and depreciation of office equipments.

4. The cost of goods sold is high increasing in year to year.

5. The cost of sales year by year due to increasing in sales.

28

COST ANALYSIS NIRANI SUGARS LTD,

4.2 Marginal income statement

Particulars Sales Less: variable cost Contribution Less: fixed cost E.B.I.T. Total cost

2006-2007 58063755 45818596 12245159 1988986 10256173 47807582

2007-2008 159273632 130849400 28424232 3128956 25295276 133978356

2008-2009 260120510 183355675 76764835 4355859 72408976 187711534

29

COST ANALYSIS NIRANI SUGARS LTD,

sales cost analysis

300000000 250000000 200000000 150000000 100000000 50000000 0 1 2 3 187711534 159273632 133978356 sales total cost 260120510

58063755 47807582

The EBIT for the year 2006-2007 was 10256173, in the year was 2007-2008 was

25295276, and in the year 2008-2009 was 72408976. It shows the increasing in EBIT
year to year

Findings of the study

Raw material consumption is increasing. The increase in sugar cane consumption from the year 2006-07 to 2007-08 was 75.37% and that from the year 2007-08 to2008-09 was 80.22%

Over head of the firm was increasing from the year 2006-07 to 2007-08 was 57.47% and from the year 2007-08 to 2008-09 was 65.20%

30

COST ANALYSIS NIRANI SUGARS LTD, Prime cost of the firm was increasing from the year 2006-07 to 2007-08 was 74.92% and from the year 2007-08 to 2008-09 was 79.85%

Work cost of the firm was increasing from the year 2006-07 to 2007-08 was 73.51% and from the year 2007-08 to 2008-09 was 78.69%

Cost of production of the firm was increasing from the year 2006-07 to 2007-08 was 73.44% and from the year 2007-08 to 2008-09 was 78.47%

Cost of goods sold of the firm was increasing from the year 2006-07to2007-08 was 73.95% and from the year 2007-08 to 2008-09 was 80.58%

Cost of sales of the firm was increasing from the year 2006-07 to 2007-08 was 74.28% and from the year 2007-08 to 2008-09 was 78%

Suggestion:
1. As prime cost, cost of production are increasing in the firm exercise cost reduction and cost control techniques like material control, labor control, over head control, capital expenditure control. 2. As the raw material cost is increasing the firm should using new techniques to reduce it. 1) Like the firm allowed near to the sources of raw material. 2) Reducing raw material usage in production down time.

31

COST ANALYSIS NIRANI SUGARS LTD,

Chapter V - Conclusion

The goal of this primer has been to describe the major principals, concepts and methods for doing economic analysis of sugar industries. The coverage of these subjects has been necessary brief. In this study is attempt to made analyze the cost analysis of the sample unit .Since the Nirani Sugars Ltd is facing heavy competition in an around area of the region, It is essential to focus on the aspect of cost, profitability etc First and foremost, economic analysis provides valuable information to the planning, design, construction, preservation, and operation of the sugar industry 32

COST ANALYSIS NIRANI SUGARS LTD, infrastructure. The limited supply of transportation rupees must be invested in a manner that gives the greatest return to the public .The most objective way to accomplish this is to compare the benefits and costs of transportation projects through the standard unit of the discounted rupee over the life cycle of projects. Benefit cost analysis is the most comprehensive method to evaluate the reasonableness of sugar projects in economic terms. In some cases, when it is clear that a project must be undertaken regardless of its cost. Cost accounting is a recent development. It is the branch of financial accounting. It maintains the records unit wise, process wise, job wise department wise, we can easily control in reduction of costs by preparation of the statement unit wise or job wise.

Bibliography G.B.Baligar cost accounting, ashok prakshan, 2004

for ... by M. Sandra Wood - Medical libraries - 268 pages Benefit-cost Analysis: Financial and Economic Appraisal Using Spreadsheets by Harry F. Campbell, Richard P. C. Brown - Business & Economics - 2003 - 345 pages Throughout the text of this introduction to benefit cost analysis, emphasis is on applications, and a worked case study is progressively undertaken as Limited preview - About this book - Add to my shared library 33 Cost Analysis, Cost Recovery, Marketing, and Fee-based Services: A Guide

COST ANALYSIS NIRANI SUGARS LTD, Cost-Benefit Analysis and Health Care Evaluations by Robert J. Brent - Health & Fitness - 2004 - 400 pages This book attempts to build a bridge between cost-benefit analysis, as developed by economists, and the health care evaluation literature which relies on other... Cost-benefit Analysis: Theory and Application by Tevfik F. Nas - Political Science - 1996 - 220 pages This book has been designed specifically with the non-economist in mind, for example, students in public administration, urban studies and health care who may Probability Methods for Cost Uncertainty Analysis: A Systems Engineering by Paul R. Garvey - Technology & Engineering - 2000 - 401 pages "How much could cost overrun!" "What are the uncertainties and how do they drive cost!" Cost uncertainty analysis provides decision-makers insight into ... Limited preview - About this book - Add to my shared library

Cost-benefit Analysis by Richard Layard, Stephen Glaister - Business & Economics - 1994 497 pages Covering all the main problems that arise in a typical cost-benefit exercise, this second edition reflects the most recent research in the area. Cost Analysis Applications of Economics and Operations Research: Proceedings by Institute of Cost Analysis. National Conference, Thomas R. Gulledge, Lewis A. Litteral - Business & Economics - 1989 - 422 pages Literaturangaben

Cost-benefit Analysis: An Informal Introduction by Edward J. Mishan - Business & Economics - 1988 - 461 pages

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COST ANALYSIS NIRANI SUGARS LTD,

35