Ratio Analysis

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.
K LTD
SL.NO
CONTENTS
PART I
EXECUTIVE SUMMARY
PART II
INDUSTRY PROFILE
PART III
INTRODUCTION OF COMPANY
PART IV
RESEARCH METHDOLOGY
OBJECTIVES OF THE STUDY

PART V
WORKING CAPITAL MANAGEMENT

PART VI
DATA ANALYSIS AND INTERPRETATION

PART VII
FINDINGS
SUGGESTIONS &
CONCLUSIONS.
BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 1
PAGE
NO.
FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD
ANNEXURE
9
FINANCIAL STATEMENT.
BIBILOGROPHY.
TABLE INDEX
INDUSTRIAL PROFILE
ABOUT THE SUGAR INDUSTRY IN INDIA:India has been known as the original home of sugar & sugar cane.
Indian Mythology supports the above facts ass it contains legends showing the
origin of sugarcane
India is the second largest producer of sugarcane next to
BRAZIL. Presently above 4 million Hectors land is under the sugarcane with an
average yield of 70 tons per hectors. India is the largest single producer of the
sugar including traditional trade Sugar sweeteners, Khandsari & gur equivalent to
26 million tonnes row value followed by Brazil in second place at 18.5 million
tonnes. Even in respect of white crystal sugar. India has ranked No.1 position in 7
out of last 10 years
HISTORY OF SUGAR INDUSTRY IN INDIA:Traditional sweeteners gur & khandsary are

consumed mostly by the rural population in India. In the early 1930s nearly 2/3rd
of sugarcanes production of alternates sweeteners gur & khandsari. With better
standard of living & higher incomes, the sweetener demand has shifted to white
sugar. Currently about 1/3rd sugarcane production is utilized by the Gur &
Khandsari sectors. Being in the small scale sector, these two sectors are
completely free form controls & taxes which are applicable to sugar sector.
The advent of the modern sugar processing industry in India
began 1930 with grant of tariff to the Indian sugar industry, The number of sugar
mills increased from 30 in the year 1930-31 to 135 in the year 1935-36 &the
production during the same period in created form 1.20 lakh tonnes to 9.34 lakh
tonnes under the dynamic leadership of private sector.
The area of planning for industrial development began in
1950-51 & Government laid down targets of sugar production & consumption,
licensed & installed capacity, Sugarcane production during each of Five year plan
periods.
NEED FOR THE STUDY
The study has been conducted for gaining practical knowledge about Ratio
analysis of Shri Halasidhnath Sahakari Sakhar Karkhana. Ltd.
The study is undertaken as a part of the MBA curriculum from 1st July
2010 to 20th August 2010 in the form of summer in plant training for the
fulfillment of the requirement of MBA degree.
TITLE OF THE PROJECT

This project A Study on ANALYSIS OF FINANCIAL
PERFORMANCE ON The BASIS OF FINANCIAL RATIOS of
Halsidhanath Sahakari Sakhar Karkhana Ltd
OBJECTIVES:-
To study the profitability of Halsidhanath Sahakari Sakhar Karkhana Ltd.
Nipani.
To study the liquidity position.
To find activity turnover

To study operating efficiency of Halsidhanath Sahakari Sakhar Karkhana Ltd
Nipani.
SCOPE OF THE STUDY

The scope of the study is identified after and during the study is conducted.
The main scope of the study was to put into practical the theoretical aspect of
the study into real life work experience. The study of Ratio analysis further
the study is based on last 5 years Annual Reports Shri Halasidhnath Sahakari
Sakhar Karkhana. Ltd.
LIMITATIONS OF THE STUDY

The analysis is limited to just five years of data study (from year 2005 to year
2009) for financial analysis.
Limited interaction with the concerned heads due to their busy schedule.
METHDOLOGY
In preparing of this project the information collected from the following sources.
Primary data:
The Primary data has been collected from Personal Interaction with Finance
manager Mrs.S.M.Siragave and other staff members.
Secondary data:
The major source of data for this project was collected through
Balance sheet of SSHSKL
Profit and loss account of 5 year period from 2005-2009
SAMPLING DESIGN
Sampling unit
: Financial Statements.
Sampling Size
: Last five years financial statements.
2
Tools Used: MS-Excel has been used to create a Charts and calculation.
Findings
Gross profit and net profits are decreased during the period of study,
which indicates that firms inefficient management in manufacturing and
trading operations.
Gross profit and net profits are increased during the period of 2004-05
which indicates that firms efficient management in manufacturing and
trading operations.
Liquidity ratio of the firm is not better liquidity position in over the five
years. It shows that the firm had not sufficient liquid assets.
The inventory of the firm in the first year has been sold very slow. And
there is an increase in the movement of the inventories but it slightly
decreased in the last year. This may be a sign not good to the firm.
The fixed assets turnover ratio of the firm has in 2004-05 the ratio is 0.85
and it increase in the next 3years continuously and it again decrease in
2008-09.
The current assets turnover ratio is increasing during the period of 200406 and again it decrease in the period of 2006-07. And again increase in
next two year slithightlliy.
Direct Material cost ratio of the firm is has less material cost during the
period of 2004-05 & 2007-08 and it raised in the year of 2005-06 and
2008-09.
The cost of direct labour of the firm in the year of 2004-05 is 4.94%and it
increasing slithightlliy up to 2007-08 and it decrease in the next year.
The cost of manufacturing overhead of the firm in the year of 2004-05 is
5.22% where it compare to the next 3year it increase rapidly.
SUGGESTIONS
The profit Of the Company Is not in a good Position For That company
has to Take Alternative Actions such As
Increasing in Procurement in sugarcane ,
Production, and Control in Expenses Like, Administrative,
selling Etc.
The firms have low current ratio so it should increase its current ratio
where it can meet its short term obligation smoothly.
years. So I suggested that the firm maintain proper liquid funds like cash
and bank balance.
CONCLUSION
This project of Ratio analysis in the production concern is not merely a work of
the project. But a brief knowledge and experience of that how to analyze the
financial performance of the firm. The study undertaken has brought in to the
light of the following conclusions. According to this project I came to know that
from the analysis of financial statements it is clear that SHSSK Ltd. Have been
incurring loss during the period of study. So the firm should focus on getting of
profits in the coming years by taking care internal as well as external factors. And
with regard to resources, the firm is take utilization of the assets properly. And
also the firm has a maintained low inventory.
INTRODUCTION OF CONCEPTS
India is developing country in which more than 70% population is
dependent upon agriculture. In India Wheat, Cotton, Rice, Tobacco & Sugarcane
are the some main crops. But the sugar cane is one of the important agricultural
productions. And or by using the sugar We produce sugar. Which is very
important item of daily meals? Sugar is mainly used for tea, Coffee and so many
food products. It is also important raw material for bakery industry. The Sugar is
produced by so many co-operative and also private factories. The first scheme of
sugar factory in co-operative society has been introduced byMr.G.N.
Sahastrabudhe & R.N. Hiremath in 1912. But first Co-operative sugar factory
started in 1918, by the Lallubhai Samaldas & G. N. Sahastrabudhe in baramati.
But due to Lake Of sugar Cane the factory stopped its working in 1924.
After that, in co-operative field, under the guidance of Vilnalirao patil,
Dr Dhanjay Gudgil Tried to start second co-operative sugar factory. He was
started pravar -co-operative Sugar factory in 1950 at loni this factory got success
in market therefore some other sugar Factories were going to start in Pune, after,
the late 1970 there was a rapid increase in trend of co-operative sugar factory.
INDUSTRIAL PROFILE
ABOUT THE SUGAR INDUSTRY IN INDIA:India has been known as the original home of sugar & sugar
cane.indian Mythology supports the above facts as it contains legends showing
the origin of sugarcane India is the second largest producer of sugarcane next to
BRAZIL. Presently above 4 million Hectors land is under the sugarcane with an
average yield of 70 tonnes per hectors. India is the largest single producer of the
sugar including traditional trade Sugar sweeteners, Khandsari & gur equivalent to
26 million tonnes row value followed by Brazil in second place at 18.5 million
tonnes. Even in respect of white crystal sugar. India has ranked No.1 position in 7
out of last 10 years
HISTORY OF SUGAR INDUSTRY IN INDIA:Traditional sweeteners gur & khandsary are

consumed mostly by the rural population in India. In the early 1930s nearly 2/3rd
of sugarcanes production of alternates sweeteners gur & khandsari. With better
standard of living & higher incomes, the sweetener demand has shifted to white
sugar. Currently about 1/3rd sugarcane production is utilized by the Gur &
Khandsari sectors. Being in the small scale sector, these two sectors are
completely free form controls & taxes which are applicable to sugar sector.
The advent of the modern sugar processing industry in India
began 1930 with grant of tariff to the Indian sugar industry, The number of sugar
mills increased from 30 in the year 1930-31 to 135 in the year 1935-36 &the
production during the same period in created form 1.20 lakh tonnes to 9.34 lakh
tonnes under the dynamic leadership of private sector.
The area of planning for industrial development began in
1950-51 & Government laid down targets of sugar production & consumption,
licensed & installed capacity, Sugarcane production during each of Five year plan
periods.
MANUFACTURING PROCESS & TECHNOLOGY:Sugar (sucrose) is a carbohydrate that occurs naturally in

every fruit & vegetable is a major product of pirotosynthesis, the process by
which plants transforms the suns energy into food. Sugar occurs in greatest
quantities in sugarcane & sugar beets form which it is separated for commercial
use. The natural sugar stored in the cal stalk or beet root is separated from rest of
the plant material through a process known as refining
For sugarcane the process of retaining is carried out in following steps.
Pressing of sugarcane to extract the juice.
Boiling the juice unit it begins to thicken & sugar begin to crystallize.
Spinning the crystal in a centrifuge to remote the syrup, producing raw
sugar.
Shipping the raw sugar to a refinery where it is wasted & filtered to
remove Remaining non sugar ingredient & colour.
Crystallizing, drying & packing the refined sugar.
Beet sugar processing is the similar but it is alone in one continuous process
without the raw sugar stage. The sugar beets are washed sliced & soaked in hot water to
separate the sugar containing juice from the beet fiber. The sugar laden juice is the
purified, filtered, For the sugar industry, capacity utilization is conceptually
different from the applicable to industries in general. In depends on three crucial

factors the actual numbers of ton sugarcane crushed in a day, the recovery rate
which generally depends on the quality of the cane & actual length of the
crushing season.
Since cane is not transported to any great extent, the quality of the cane
that a factory receiver on its location & it outside its control. The length of the
crushing season also depends upon location with the maximum being in south
Indian. sugarcane in India is used to make either sugar, Khandsari or gur .
However sugar products produced are divided into four
basic categories;
Granulated, brown, liquid, sugar, and invert sugar.
PFROFILE OF THE COMPANY
Name of the factory
Shree Halasidnath Sahakari

Sakhar Karkhana LTD.
Address
Shree Halasidnath Sahakari

Sakhar Karkhana LTD.
Shankaranand nagar, Nipani.
TAL:-Chikodi. DIST:-Belgaum
PIN:-591237.
Year of Establishment
APRIL-1981.
1st Crushing Season
JANUARY-1983.
Register Number
DSK/REG-2/80-81.
Register Date
22-04-1981.
Phone Number
STD CODE (08338)

Chairman-220355
Office-222090
FAX Number
(08338)221315
BACKGROUND & INCEPTION COMPANY.

Halsidhanath sahakari sakhar karkhana is placed 3 km away from
Nipani in north side at Shankaranandnagar , Tal:chikodi Dist: belgaum.
Halsidhanath sahakari sakhar karkhana
is the support pillar to the sugar cane
producer farmes in the Nipani area. The karkhana wa started by the some social
workers in nipani area with a view to provide an good option to the former in
this area like sugarcane.
Mr. Baburao Budihalkar was the chief promoter in this project But, some
other
The foundation of karkhana building was held on 9-11-1982. The chief
guest for this function was Shri.Rajiv Gandhi who was the prime minister of
India in that time. The Karkha started its regular working on 30-9-1989. The
delay was due to the changing political conditions in Karnataka state.
The Karkhana developed a very good rapport with the farmers in this area and
worked for their progress . So, the karkhana is operating in entire Chikkodi taluka
andAlur,Bhairapur,Kanagala,Shippur,Karajaga,Rashing,Bad,Nangnur,Mattiwade,
Hitani,Shekinhasur,Konankeri, sadlaga thirteen(13) vill ges in Hukkeri taluka.
Only Belgum in Belgum laluka and Soudatti in Raibag Taluka all these part of
Belgaum district in the Karnataka state. And Arjuni, Chikhali, Gorambe, Shendur,
Shankarwadi, Vandur all these eight (8) villages in Kagal taluka is a part of
Kholapur district in the Maharashtra state Thus, it will comprise of part of
Belgaum district and part of Kolhapur district, from two adjoining states.
OBJECTIVES AND FUNCTIONS: The principle object of the karkhana will be to promote the interests of all
its members to attain their social and economic betterment through self
help and mutual aid in accordance with the co-operative principles.
To prepare and implement the programme for harvesting and
transportation of sugarcane on behalf of the members from their field to
factory in supply of sugarcane to factory for crushing and to avoid
probable losses of sugar in cane.
To manufacture sugar, Jaggery and its allied by products from the
sugarcane supplied by the members and other and to sale these products at
good price.
To install the factory for manufacture sugar on large scale basis and to take
all necessary steps to run it efficiently
To install the necessary machinery required for producing of bagasse,
molasses, Press-mud etc.
To ruchase the means of transportation and to run, to give and to take on
hire basis.
To install research centers and to assist the existing research institutions
and to undertake research work helpful to sugarcane, sugar and allied
industry.
NATURE OF THE BUSINESS CARRIED:S.H.S.S.K.LTD. is co-operative sector firm. It is a
manufacturing company It produces sugar, molasses And supplies sugar tp
Nipani, Chikodi Taluka, Raibag Taluka, saudatti, and Hukkeri Taluka. It operates
within Karnataka as well as outside Karnataka.
Nature of business carried Shri Halasidhanath sahakari Sakhar Karakhana Ltd
is involved in the activity of manufacturing white crystal sugar products which is
the main product. The process of production involves conversion of.
Raw sugar cane to sugar,
Raw sugar to refined sugar, Molasses, Bagasses are its by products.
MOLASSES: Molasses is mainly used for the manufacture of ethyl
alcohol(ethanol)yeast and cattle feed.
BAGASSES: Bagasses is usually as a combustible in the furnaces to
produce steam which in turned is used to generate the power, it is also
used as raw materials for the production of paper and as feedstock for the
cattle.
PRODUCT PROFILE
Shri Halasidhanath Sahakar Sakhari Karakhana Ltd established for the purpose
of sugar while producing the sugar some raw juice and raw bagasses become
molasses and some other by-product.
The Shri Halasidhanath Sahakar Sakhari Karakhana Ltd is
producing following product
1) Sugar
A) Medium-30
B) Small-30
C) Levy
2) Molasses
3) Compost
4) Bagasses
AREA OF OPREATION
The Shri Halasidhanath Sahakar Sakhari Karakhana Ltd has wide range of area of
operation for continuous and regular flow of sugar cane from different authorized
area within the 80 kms. Around the spot of plant includes some region of two
states from Maharashtra and Karanataka under.
SR.NO
NAME
OF DISTRICT
NUMBER
TALUKA
1
Chikodi
Belgaum
43
Hukkeri
Belgaum
05
Raibag
Belgaum
04
Belgaum
Belgaum
01
Jamkhandi
Baglkot
01
Athani
Belgaum
05
Kagal
Kholapur
09
TOTAL
68
OWNERSHIP PATTERN
Shri Halasidhanath Sahakar Sakhari Karakhana Ltd established in the year
1981 at Hala sugar gram of chikodi Taluka. It was resolved to collect the share of
established this sugar factory in co-operative basis. Let the late Baburao B patil
Budhialkar and other social
workers and leader working in co-operative sector
also come forward to assist team in the starting this factory. It is joint venture
with share capital of Rs. 104940000 contributed by
18990 share holders. The
company was established in the year April 1981 & started the crushing in January
1983. The company is registered under the provision of companies Act-1956.
THERE IS TOTALLY 15 BODS.
Grower member will elect 12 BODS

1 Director will be elected by the co-operative.
1 Director nominated by the principal of financial agency.
Apart from this 14 director, managing director will be deputed by the
government
PRESENT BOARD OF DIRECTORS ELECTED DIRECTOR
Shri. D.A.Chougale
Managing Director
Shri. Babasaheb .S. Saasne
Chairman
Shri .Ramagounda .R. Patil
Vice- Chairman
Shri .Ganesh .P. Hukkeri
Director
Shri .Appasaheb .S. Jolle
Director
Shri. Annasaheb .A. Patil
Director
Shri. Vishawanath .S. Kamate
Director
Shri. Malagounda .P. Patil
Director
Shri. Anand .D. Ginde
Director
Shri. Chandrakant .S. Kotiwale
Director
Shri. Ramagounda .B. Patil
Director
Shri. Ramagounda .Y. Patil
Director
Shri. Kanthinath .G. Chougale
Director
MEMBERSHIP OF SHARE CAPITAL:The membership of Shri Halsidhanath Sahakari Karakana Ltd

has been accepted by different individuals and firms categorized into three classes
as under
A Class involves the grower (farmers of agricukturist)
B Class involves the institute and non-grower
These are:1. Co-operative Societies
2. The belgaum District Central Co-operative Bank Ltd.
3. Karnataka State Agro Industrias Co-operation, Bangalor.
C Class involves the state government of karnakata.

The above said members born their share as share capital as
Sr
Member class
No of Shares
No
1
Share
capital
A Grower
15,924
613.52
3065
60.06
B co-operative society
2
Non-Grower
C Government of Karanataka
Total
1
18990
COMPETITORS INFORMATION
The main competitors are as follows
Doodh Ganga Shakari Sakhare Karkhane, Ltd
Crashing capacity-5500 TCD
Recovery -11.5%
Sugar production -10000 Qtls (per day).
Venkateshwer Sugar Ltd
Cashing capacity -2500 TCD

Recovery -10.5%
Sugar production -3000 qtls (par day).
Renuka Sugar Ltd

Crashing capacity -10000 TCD
Recovery -11.2%
Sugar production -14000 Qtls (par day).
375.82
1049.40
INFRASTRUCTURAL FACILITY
CATEEN
The management provides multi-purpose cooking range, utensils, working
capital, and
installation of gas equipment free building expenditure towards
purchase of furniture. Actual expenditure towards consumption of water,

electricity and gas, annual subsidy. the rates of foodstuffs in the canteen are fixed
on no no profit basis. The workers who are working in
the production
department are entitled for Tea free at cost while they are on duty.
TRNSPORTATION
Up to 40 km. three transportation facilities is provided to farmers rate
structure of vehicles as per kilometres
Sr.
KM
No
Rate
per Sr No
KM
km
Rate per
km
45.56
11
55
156.77
10
57.76
12
60
166.83
15
73.12
13
65
174.02
20
86.34
14
70
183.80
25
98.16
15
75
192.75
30
106.30
16
80
199.12
35
117.45
17
85
209.24
WATER
It is established the river Vedganga. there is sufficient supply of

water required for production process.
POWER
There is provision electricity from KPTCL. & company generates its own
power through boilers during crushing of sugarcane.
ACHIEVEMENTS
In 1996-97 from South Indian Sugar Technologists Association (SISTA)
for best achievement award in cane development.
FATURE GROWTH AND PROSPECTUS
To undertake such activities as are identical and conductive to the
development the society.

To inn coverage for other crops where sugarcane not grown.
To expand crushing capacity.
WORKFLOW MODEL (END TO END MODEL )
Heating 65 C->Lime +SO2 application
APPLICATION OF 7S MODEL
OF MC, KENSEYS
Strategic planning refer to the management processes in organization

which helps in management to determine the future impact of change and take the
currentdecisions to reach designed future. The management literature is replace
which instance of organization which have fade stress in strategic planning but
not have been phenomenally successfully.
Consultants at the Mc.Kensys company very well known
management consultancy firm the created states develop the 7 s frame work
towards the end of 7 s diagnose the causes of organizational problems and to
formulate problems for important. The following is the 7s frame related to the
Mc. Kennys 7s frame work
According to waterman organizational change is not simply

matter of structure although structure is a significant variable in the management
of change. Again it is not a simple relationship between strategy and structure
although strategy is also critical as put.
In their view effective organizational change may be understood to be a

complex relationship between strategy, structure, system and style, skill, staff,
and super ordinate goals. The framework suggests that there is a multiplicity of
factors that influence an organization and ability to change and its proper mode
of change.
STRUCTURE OF ORGNIGIATION
SHARE HOLDER
BOARD OF DIRECTOR
CHAIRMAN
MANAGING DIRECTOR
SHARE SECTION
Head: - M.T. PATIL
According to by-law, the factories authorized share capital is Rs 20
crores. Atresent the number of shareholders is 18990 and capital collected from
all the shareholders. i.e. Rs 10,49,40,000/The membership of Shri Halsidhanath Sahakari Karakana Ltd
has been accepted by different individuals and firms categorized into three classes
as under
A Class involves the grower (farmers of agricukturist)
B Class involves the institute and non-grower
These are:-
4. Co-operative Societies
5. The belgaum District Central Co-operative Bank Ltd.
6. Karnataka State Agro Industrias Co-operation, Bangalor.
C Class involves the state government of karnakata.
The above said members born their share as share capital as
Sr
Member class
No of Shares
Share
No
1
capital
A Grower
15,924
613.52
3065
60.06
B co-operative society
2
Non-Grower
C Government of Karanataka
Total
375.82
18990
1049.40
TIME OFFICE LABOUR WELFARE DEPARTMENT
NAME OF
THE
PERMA
SEATION
GOV
CONSTR
DAIL
CONTR
TOTA
NENT
AL
ACT
CTUAL
WAGE
DEPT
S
Time
13
Security
13
22
Store
21
Civil
Office
Environme
16
15
30
10
13
Cane A/C
16
Vehicle
11
Medical
Agriculture 28
62
39
136
Engineer
70
41
207
99
38
147
252
23
157
638
nt
Administra
tive
General
A/C
90
Manufactu 8
rer
TOTAL
198
HEAD: - S.G. MORE.

Time office is one of the main part of the factory because in time
office all records regarding many types of departments and about the details of
their employees are recorded so it must require in each and every organization.
There is no special department like HRD or Personal management
in the factory time and labour welfare office is there, in this office there is labour
welfare officer & head time keeper, shift time keeper and wage clerk is there.
WELFARE FACILITY
To take care of all the workers, the organization will provide the some
following facility those are:A. Bonus is 08.33%based on the worker salary.
B. Quarter, hospital etc. facility and allowances
C. Canteen facility
D.
E.
F.
G.
Promotion facility
Permanent employees get one increment every year.
School facility to the worker children.
And medical facility are available if any accident occurs.
PURCHASE SECTION
Purchasing plays an important and significant role in
processing industry. Purchasing is tough task, which is to be performed very
carefully. It functions on the principal of Money saved in purchased is money
gained in sales. Profit can also be earned in purchasing process by the purchase
manager by his knowledge about the entire market.
STORE DEPARMENT:THE WORKING FLOW CHART SHOWN BELOW
In this factory the store department in charge will be Shri

Kadam sir under their the information will be here.
Main Points:
The store keeper will check the supplier quantity and afterwards send to
the
respective section wise. For ex.:- Cement, Belt etc
After this the
material verification will be taken by under chief enginee

The store keeper will entry the purchased material in a book in systematic
manner.
The daily transactions will be held in the books of power house main
panel board.
Store department is just like a godown because in department all materials
which are needed to the factory are stored.
The store house which contains the 21 heads. They are follows:-
Heads :1. Oil and lubricants Ex :- Bearing oil, Greece, etc being purpose
machinery.
2. Manufacturing goods Ex:- Chemical, sulphur etc uses of sugar
processing.
3. Hardware Ex:- Nutbolt, chain, MS bar etc uses of machinery
maintenance.
4. Welding materials Ex:- Welding rod, screen, black glass uses of
welding purpose.
5. Drawing materials Ex:- Ammonia paper, Dressing paper, etc
machinery maintenance of engineering department.
6. Electrical goods Ex:- Pressure gauge, vacuum gauge, temperature
gauge etc for machinery maintenance.
7. Tools and tackles Ex:- Spaner, screw driver etc.
8. Transmission of goods Ex:- Bearing oil, oil seal, bearing glue
9. Iron and steel These are used for machinery maintenance of
engineering department.
10. Building materials Ex:- Cement, steel, stone crystal, sand etc uses
of concrete foundation for machinery.
11. Machinery and machine spare Ex:- Bearing, coupling, nutbolt etc.
12. Pipe and pipe fitting Ex:- pipe, bend, flang etc
13. Furniture and fixtures Ex:- Chairs, tables etc
14. Stationary Ex:- Log book , indent book, bucket etc.
15. Rubber goods Ex:- Bush, rubber belt, wheel, ordinary material.
16. Library Ex:- Books.
17. Vehcle spare
18. Medical Ex:- Druds, tablets, syringe, salines etc.
19. Printing Ex:- Log, book, store recipt book etc..
20. Computer spare Ex:- Ribbon, cartridge, pen drive etc.
SALES SECTION
The main product of H.S.S.K.Ltd is sugar and by-Bagasses,
Molasses, and press
mud. These all are sold by calling tenders. Because the
factory has no right to sale these products directly in the open market. The Office
Superintendent does this work and sales
officer with the help of sugar directors
Bangalore Central Govt. fixes the selling quantity.

There are two types of sales:A. Free sale--------- 90% of the produced sugar.
B. Levy sale--------10% of the produced sugar.
The factories by-products like,
A. Bagasses-------used in paper industry.
B. Molasses-------used in distilleries.
C. Press-Mud-----used in fertilizer.
SECURITY SECTION
There are 22 security guards and their function are,
1) Checking in-out persons and vehicles.
2) Protecting and securing proper and best use of assets of the
factory.
3) Maintaining the below mentioned registers,
A. Attendance registers.
B. Visitors register.
C. Vehicle register.
D. Workers get pass
E. Bagasse, Molasses, Press-Mud get pass.
Cane Development Section

Department-Structure
Chief of C.D.O
For Manager
C.D.O
Assistants
AssistantC.D.O
Workers
Cane-Inspector
Field-Offices
The duty of C.D.O (Cane Development Officer) is to develop

the growth of sugarcane by providing training and seeds to the farmers.
Cane development process:
Providing training to the farmers.

Providing seeds on loan basis.
Seeds are developed in the firm and distributed to farmers.
Early detection and pests and crop decreases and providing

solution
Cane-Verities:-
Karnataka Hybrid Seeds.

Coimbatore
Coimbatore Cadlar
Coimbatore Melattur.
ENGINEERING-DEPARTMENT
HEAD:-M Umapati
It is very important department to any factory, because engineer
only have capacity to run the production smoothly. In this factory this section
has217 employee The main functions of this section as follows,
1. To take of all the divisions like boiler, mill, electricity etc.
2. To ensure that all machineries are in good condition.
3. They inform board of management about scares materials and make
them to purchase that material.
4. The repair the broken down machines and make them to work
properly.
Department-Structure
Assistant
Engineer
Supervisor
Worker
Electrical
Engineer
Supervisor
Worker
Environmental
Engineer
Supervisor
Work-Shop
Engineer
Supervisor
Worker
Worker
During off season their functions are,

1. Maintenance of all the machineries currently.
2. Overhauling of the machineries.
3. Machinery erection.
PRODUCTION DEPARTMENT
Civil
Engineer
Supervisor
worker
The Chief Engineer, chief chemist and Civil engineer from the structure of
the production
The chief engineers work is to technical and mechanical works and
improve them to increase the production capacity.
The chief chemist work is to instruct how where & when to use chemical
in the production process.
The civil engineers work is to plan where to situate the machineries and
also they advise useful suggestions to make the production very easy and
smooth.
COMPARATIVE STUDY OF PRODUCTION OF SUGAR

Sr.
YEAR
SHARE
SUGARCANE
SUGAR
RECOVERY
CAPITAL CRUSHING
PRODUCTION
RATE
A/C
(In qtl)
No
(In MT)
2004-05
837.13
141430.852
151480
10.71
2005-06
972.40
210556.428
239950
11.40
2006-07
1049.4
241130.000
275240
11.41
1125.40
113345.000
132920
11.82
0
4
2007-08
Cane Yard:- In this collect sugarcane from the farmers.
Cane weight:- In this they measure sugarcane including vehicle after

unloading the cane. they measure vehicle weight and they deduct that
weight in the total weight. Thus they get the actual weight of the cane.
They prepare 3 weight receipts with the help of computers, one goes to
cane a/c, another goes to farmers and third one goes to transfot office.
Cane Carrier:- The unloaded cane is put down in carrier and carrier is
driven by the motor It is concerned to cane cutter.

Cane cutter:- there are two types cane cutter,
1) 1st cutter---In this cane cuts into 12 to 20 inches.
2) 2nd cutter---In this cane cuts into 12 to 20 inches.
After cutting cane is forwarded in fibriser. The fidrised cane is taken into
mill section.
Mill Section: - In this section, the cane is squeezed. Whatever the
quantity of juice quizzed in the mill is pumped into clarification house. At

this time they get the by- product called bagasse.
Dorr:- The juice has come by- product like press mud and bagasse before
it is taken stored in the Dorr. After storing in the Dorr these are separated
and move down ward.

Evaporators:- After classification of the juice stored in Dorr. Then it is
taken in to Evaporators to evaporate that the water evaporation juice is

taken into pan section.
Pan Section:- In this section again syrup (juice) is boiled or heated by
the steam. In this section they remove water, which is mixed in the
syrup. After that make crystals.
Centrifugals:- This is last process in producing sugar in this section
factory gets a main by-product molasses and stores it in storage tank.
They produce mainly 3 types of sugar,

1) L30: This is big crystal.
2) L30: This is medium crystal.
3) L20: This is small crystal.
GODOWN
After packing the sugar in the gunny, they are stored in the godown. In the
godown they maintain register consisting the records of stock, dispatch and
closing balance.Factory has 4 large God owns and their capacity is given below,
STORE HOUSE
CSPSCITY (In qtl bags)
1lakhs
70000
SKILL
Skill is the distinctive capabilities or competence of the organization
as a whole, Skills developed are,
Product quality awareness.

Time management.
Result orientation.
Dedication.
This type of training also known as job instruction training is the most
commonly used method. Under this method, the individual is placed on a regular
job though the skill necessary to perform that job. The trainee learns under the
supervision of a qualified worker of instructor. On-the-job training has the
advantage of giving firsthand knowledge and experience under the actual working
condition. While the trainee learns how to perform job, he is also a regular worker
rendering the services for which he paid. The problem of transfer of trainee is
also minimized as the person learns on-the job training methods includes job
rotations, coaching job instruction or training through step-by-step and committee
assignment.
STYLE
Style includes two things, one management style and organizational
culture. Management style the way in which the managerial personnel behave
and collectively spend their time to achieve organizational goals, it consists the
way of lending. motivating and the style of leadership in the management. Here
they usually use authoritative style means top to down decision making parameter
pertaining to day-to-day operation but they allow subordinates to participate in the
decisions affecting their interest and ask their suggestions for their decisions. This
makes organization more effective.
SRTATEGY
Strategy means the actions which a company plans in to or anticipates of
changes in its external environment. In other words it is the determination of basis
long term objectives or courses of action and allocation of resources to achieve

the organizational goals. They are as follows,
Waste Elimination S.H.S.S.K. Ltd. Produces molasses and sell it to liquor
industries. And it uses biogases boilers in order to generate energy for factory
during crushing process.
Cost Reduction: They are reducing the intake of employees and reducing the
number of employees in order to reduce cost. They are not depending on

K.P.T.C.L. for power while crushing process is carrying on. They produce
energy by boilers.
SYSTEM
A system includes formal and informal procedures that
support the strategy and structure. In other words, it is the processes and flows
that shown how an company gets its day-to-day things done. This includes the
procedures and the routines that will characterized how important work to be
done. i.e. financial system, hiring, promotion and performance appraisal system
and information system etc.
PRODUCTION PROCESS:
Pressing of sugarcane to extract the juice.

Boiling the juice until it begins to thicken and sugar begins to
crystallizes.
Spinning the crystals in a centrifuge to remove the syrup, producing raw

sugar.
Shipping the raw sugar to a refinery where it is washed and filtered to

remove remaining non-sugar ingredients and color crystallizing, and
drying packing the refined sugar.
INVENTORY CONTROL SYSTEM

Here in stored department the inventory control used FIFO. Here the method
FIFO is appropriate because the sugarcane is not a durable commodity it is better
to crush the sugarcane freshly. It is not stored for a long time because it turned in
too dry sooner.
STAFF
Staffs refer to the people in the enterprise and their socialization into the
socialiseational culture. Productive high performing employees are the companies
most valuable assets. The company follows a progressive policy taking keen
interest in its personnel and well beings and progress, which builds a strong sense
of belongingness.
Technical Department:A. Machine shop and maintenance quality assurance.

B. Laboratory
C. Tool room
D. Manufacturing engineering departments
E. Production planning and control
F. Research and development
Non-Technical Department:A. Administration
B. Clerical
DUTIES AND RESPONSIBILITIES:Technical Staff: Operators/Technicians:
Carry out the work as per the instruction and job allocation.
In process inspection wherever applicable.
Maintenance in charge:1.
2.
3.
4.
5.
Planning of preventing maintenance.

Attending breaks down maintenance.
Taking corrective action for reduce break down.
Planning spares and raising purchase intend.
Maintaining the quality record.
SHARED VALUE
There are values shares by the members of the organization. It is the super
ordinate goal that is centrally responsible for providing a core mission to the
organization Used as an umbrella, which embraces all the other managerial
activities. In short it says what does the organization stands for and what is
believes in. A devoted and sincere contribution to the mankind through the
various business activities of the company and compromise to the quality.
1. Continues growth is the main force behind the achievement of S.H.S.S.K ltd.
2. Customer satisfaction through quality services.
3. Quick decision and execution with speed.
SWOT ANNALYSIS OF THE COMPANY
STRENGHTS
Produces good quality of sugar.
Its near the river of the Vedganga so there is availability of the sufficient
water.
SHSSK is not dependent of KPTCL for supply of power while production is
carrying on the generator through rower.
WEAKNESS:
Since it is agro based industry monsoon effects its production.

Lack of good administration.
Lack of infrastructure.
Backward technology and complexity
OPPORTUNITIES:
Possibility of willing co-operation by bank.
Arrangement for KPTCL grid.
THREATS: Competition from the domestic player.

Due to unfavorable Govt. Polices, factory has to sell sugar below its
production cost.
RESEARCH
ON
FINANCIAL
ANALYSI
NEED FOR THE STUDY
The study has been conducted for gaining practical knowledge about Ratio
analysis of Shri Halasidhnath Sahakari Sakhar Karkhana. Ltd.
The study is undertaken as a part of the MBA curriculum from 1st July
2010 to 20th August 2010 in the form of summer in plant training for the
fulfillment of the requirement of MBA degree.
TITLE OF THE PROJECT

This project A Study on RATIO ANALYSIS of Halsidhanath Sahakari
Sakhar Karkhana Ltd is considered as an analytical research
OBJECTIVES
To study the profitability of Halsidhanath Sahakari Sakhar Karkhana Ltd.
Nipani.
To study the liquidity position.
To find activity turnover

To study operating efficiency of Halsidhanath Sahakari Sakhar Karkhana Ltd
Nipani.
SCOPE OF THE STUDY

The scope of the study is identified after and during the study is conducted.
The main scope of the study was to put into practical the theoretical aspect of
the study into real life work experience. The study of Ratio analysis further
the study is based on last 5 years Annual Reports Shri Halasidhnath Sahakari
Sakhar Karkhana. Ltd.
LIMITATIONS OF THE STUDY
The study duration (summer in plant) is short.
The analysis is limited to just five years of data study (from year 2005 to year
2009) for financial analysis.
Limited interaction with the concerned heads due to their busy schedule.
METHDOLOGY
In preparing of this project the information collected from the following sources.
Primary data:
The Primary data has been collected from Personal Interaction with Finance
manager Mrs.S.M.Siragave and other staff members.
Secondary data:
The major source of data for this project was collected through
Balance sheet of SSHSKL
Profit and loss account of 5 year period from 2005-2009
SAMPLING DESIGN
3
Sampling unit
: Financial Statements.
Sampling Size
: Last five years financial statements.
5
Tools Used: MS-Excel has been used for calculations.
THEORETICAL FRAME WORK

INTRODCTION:-
Finance is life blood of the business. The financial
management is the study about the process of procuring and judicious use of
financial resources is
a view to maximize the value of the firm. There by the
value of the owners i.e. the example of equity share holders in a company is
maximized. The traditional view of financial management looks into the
following function that a finance manager of a business firm will perform.
1. Arrangement of short-term and long-term funds from the financial
institutions.
2. Mobilization of funds through financial instruments like equity shares, bond
Preference shares, debentures etc.
3. Orientation of finance with the accounting function and compliance of legal
provisions relating to funds procurement, use and distribution. With increase
in complexity of modern business situation, the role of the financial manager
is not just confirmed to procurement of funds, but his area of functioning is
extended to judicious and efficient use of funds available to the firm, keeping
in view the objectives of the firm and expectations of providers of funds.
DIFINATION:Financial Management has been defined differently by different scholars.
1) Howard and Upton:-
Financial Management is the application
of the planning and control function to the finance functions

2) Bringham:- Financial Management is an area of financial decision
making harmonizing, individual motives and enterprise goals
MEANING OF RATIOS
Financial Statement contains a wealth of information which, if properly analyzed
and interpreted, can provide valuable insights into a firms performance and
position. Analysis Soft financial statements is of interest to (short terms well as
long term) investors, security analysts, managers, and others financial statement
analysis may be done for a variety of purpose, which may range from a simple
analysis of the short -term liquidity position of the firm to a comprehensive
assessment of the strengths and weaknesses of the firm in various areas.
The principal tool of financial statement analysis is financial
ratio analysis. An absolute figure does not convey much meaning. Ti, there for,
become necessary to
study a certain figure in relation to some other relevant
figure to arrive at certain conclusion e.g. If we give the figure of only gross profit
earned by certain firm, we cannot say
whether the gross profit is heavy, reasonable or sufficient for this purpose
we must take into consideration the figure of sales. Thus, the gross profit to is
required to be studied
in relation to the sales to decide the percentage of gross
profit to sale on the basis of
percentage we can conclude whether the gross
profit earned is reasonable or otherwise. Thus the relationship between the two
figures expressed mathematically is called a ratio.
OBJECTIVES OF RATIO ANALYSIS: The study of financial statement of any corporate will help in knowing its
present and future earning capacity.
The study of financial resources can help in knowing whether a company can
pay its long-term or short-term liabilities.
Its very use full to know how much working capital is employed in business
and same effectively used.
Its use full to measure earning capacity and its comparison to other
competitive units.
Help full to known marginal efficiency.
Use full to future planning.
INTERPRETATION OF RATIOS
The benefit of the ratio analysis depends to great extent upon their correct
interpretation. Interpretation requires considerable ability on the part of the
analyst. He has to decide whether the relationship disclosed by the ratio is
satisfactory or not. He has to base his decision on experience, or on comparison
may be interpreted in any one of the following ways.
1) BASED ON SINGLE RATIO AND GROUP RATIOS:The interpretation may be based on individual ratio e.g. If current ratio
persistently falls and goes below one, it can be interpreted as an indication of
short-term insolvency. However, one cannot get the position corrected by
studying individual ratio in isolation. It is therefore a common practice to study
and interpret a set of several related ratios e.g. for short-term solvency both the
ratios, whose significance is not fully understood , are made more meaningful
by the computing and study of additional relevant ratios.
2) COMPARISON OVERTIME:Ratio analysis is primarily useful for studying trends, indicating rise, decline
or stability over a period of time. For this purpose, ratios by themselves are of no
particular significance. For reveling such trends, the same ratio or a group of
ratios is studied over period of years. Thus the movements in the ratios, rather
than the ratios themselves, are important.
3) INTER-FIRM COMPARISON:Ratios of undertakings are compared with the respective ratios of other firm
in the same industry and with the industry on average An immense benefit is
likely to from such comparison as the concerns similarly situated are as a matter
of fact , to sail in the same boat.
PROCEDURE OF ANALYSIS:First or all the depth, object and extent of analysis must be determined, so that
necessary information can collect. The analysis is required to go through various
financial statements of the business and collect other required information from
the management. The analysis is required to rearrange the data given in the
financial statements in a manner, which will help the to analysis the statements
easily and conveniently. After analyzing the statement the interpretation is made
and the conclusions are drawn.
TYPES OF RATIOS:- Classification of ratios is done in two ways.

A. According to nature of items.
B. According to purpose of the function.
A) According to nature of items:-
1) Balance Sheet Ratios:- The ratios exhibiting the relationship between

two item or group of items in the balance sheet e.r. Relation between
current Assets and Current Liabilities.
2) Revenue Statement or Profit and loss account ratios:- The ratios
disclosing the relationship between two items or group of items in the
profit and loss account it. Relationship between Sales and Gross profit.
3) Inter Statement or Composite Ratio:- The ratios indicating the
relationship of certain items in the balance sheet with some figures in
the revenue statements i.e.
Net Profit and Capital or Sales and Fixed
Assets.
B) Functional Classification:Liquidity Ratios; - These ratios measure the liquid position of the
enterprise i.e. whether the current assets to pay current liabilities as
and when they mature. Thus, these ratios indicates short-term
solvency of the business
Leverage Ratios; - They indicate the relative use of debt and equity
in financing assets of the firm. The extent, to which the practice of
trading on equity can be carried on safety, can be known through
these ratios.
Activity Ratios:- These ratios measure the efficiency in the
employment of funds in the business operations. They respect the
companys level of activities in relation to its turnover.
Profitability Ratios:- There ratios measure overall performance. And
profits earning Capacity of the business. They reveal the effect of the
business transaction on the profit position of the enterprise.
PROFITABILITY RATIO:1) Gross Profit Ratio:- This ratio reflects the efficiency with which the
management produces each unit product. The ratio is calculated as under:
Gross Profit Ratio=
Profit
Sales
It is the ratio which is most commonly employed by accountants for comparing

the earnings of business for one period with those of other or earnings of one
concern with of another in the same industry. It indicates the degree to which
selling prices goods per unit may decline without in losses on operations for the
firm.
2) Net Profit Ratio:-Net Profit is that proportion of net sales which remains
to the owners or the shareholders after all costs. Charges and expenses including
income-tax have been deducted. It is calculated as under.
Net profit (after tax)

Sales
It differs from the ratio of operating profit is to net sales in as much as it is
calculated after adding non-operating incomes, like interest, dividends on
investment etc. To operating profit and deducting non-operating expenses such as
loss on sale of old assets, provisions for legal damages etc. from such profits.
LIQUIDITY/SOLVENCY RATIO:1) Current Ratio or working capital Ratio or 2:1 Ratio:- It is a ratio of
current assets to current liabilities. The ratio is calculated by dividing the
current assets by the current liabilities.
Current Assets
Current liabilities
Certain authorities have suggested that in order to ensure solvency of a concern.
Current assets should be at least twice the liabilities and therefore. his ration is
known as 2:1 ratio.
2) Liquid Ratio or Acid Test Ratio or Quick Ratio:- The current Ratio fails
to serve as a realistic guide to the solvency of the concern, as the major
portion on the current assets may comprise of such assets which cannot be
converted immediately cash (e.g. stock) to meet the immediate liabilities. It
this ratio is 1:1, it is considered that all claims will be met when
they arise.
Quick / Liquid Assets

Current liabilities
ACTIVITY RATIO
1) Inventory Turnover Ratio:- The term Inventory Turnover refers to the
number of times in a year inventories are sold and replaced.
Inventory Turnover Ratio:-
Cost of Goods Sold or sales

Average Inventory at cost
It is Indication of the velocity with which merchandize moves through the

business. This is a test of inventory to discover possible trouble in the form of
over stocking or over valuation. It assists the financial manager in evaluating
inventory policy.
2) Operating Ratio:- The ratio shows the percentage of net sales i.e. observed
by the cost of goods sold operating. Naturally higher the ratio, the less
favorable it is. Because it would leave a small margin to meet interest,
dividends and other corporate needs.
Operating Ratio
= Cost Goods Sold + Operating Expenses
Net Sales
3) Fixed Assets Turnover Ratio:-The ratio measures the efficiency in the

utilization of fixed assets. This ratio indicates whether the fixed assets are
being fully unitized A high ratio is an index of the vestment in fixed asset.
Normally standard ratio taken as five times.
Fixed Assets Turnover Ratio
Sales
Net Fixed Assets

4) Total Assets Turnover Ratio:- The ratio is arrived at by dividing
sales by the total assets i.e.
Sales
Total Assets
The ratio indicates the sales generated per rupee of investment in total assets.
Thus, it aims to point out the efficiency or inefficiency in the used of total assets
or capital employed. Increase in ratio indicates that more revenue is generated per
rupee of total investment in assets.
LEAVERGE RATIO:-
1) Debt Equity Ratio:- It measure of the relative claims of creditors and owners
against the assets of the firm.
Total Debts
Net worth owners Equity
The term total debt includes all debts i. e. long term, short term mortgages.
Bills, debentures etc. whereas the term net worth means equity share capital,
reserves and surplus i.e. proprietors. Funds or equity 1:1 ratio is acceptable.
2) Fixed Assets to worth Ratio:Fixed assets
Net worth
It indicates that the company has used short term funds for acquiring fixed
assets, which policy is not desirable. To the extent fixed assets exceed the amount
of capital and reserves, the working capital are depleted. When the
amount of
proprietors fund exceeds the value of fixed Assets i.e. when the percentage is less
than 100, a part of the working capital is supplies by the shareholders. Provided
that there are no other non-current assets.
DATA ANALIYSIS AND

INTERPRETATION
1) PROFITABILITY RATIO:Gross Profit

Gross Profit Ratio =
X 100
Sales
YEAR
GROSS PROFIT
2004-05
2005-06
2006-07
2007-08
2008-09
7,00,15,3
01.58
413173
59.41
3,79,03,4
69.81
6,09,91,6
21.57
5,44,14,2
56.14
SALES
GROSS PROFIT
RATIO
23.26
301002504.06
13.66
302304793.75
11.02
337985566.07
17.44
349546301.04
12.63
430543494.12
INTERPRETATION:The Gross-Profit Margin ratio of SHSSKL has ups and down in these five
years period. The gross profit measures the relation between the
sales and profits. The gross-profit ratio in the year 2004-05 is
23.26 and next year 2005-06 is 13.66 and in 2006-07 its 11.22
then in 2008its become 17.44 and in 2008-09 it is 12.63.
C) Net Profit Margin Ratio:Net Profit

Net Profit Ratio =
X 100
Sales
YEAR
NET PROFIT
SALES
GROSS-NET
RATIO
2004-05
14569011.39
301002504.06
4.84
2005-06
4053781.26
302304793.75
1.34
2006-07
1179916.79
337985566.07
0.34
2007-08
2178816.70
349546301.04
0.62
2008-09
1653143.88
430543494.12
0.38
INTERPRETATION
The net profit is the indicative of the managements
ability to operate the business with sufficient success. In the
above bar diagram it shows that the net profit ratio of SHSSKL has
increased 4.84 in 2004-05 but it decreased in the next years 1.34 in 2004-05 and
it again decreased in 2006-07.then it increased 0.62 and it again decreased 0.38.in
2008-09.
LIQUIDITY RATIO
CURRENT RATIO:Current Ratio =
Current Assets
Current Liabilities
YEAR
Current Assets
Current Liabilities
RATIO
308321871.3
454294589.7
0.67
265422636.1
563620481.6
0.47
875637598.7
623087336.2
1.40
446111012.4
565628200.9
0.78
471836449.8
542837550.5
0.86
2004-05
2005-06
2006-07
2007-08
2008-09
S
INTERPRETATION:An ideal current ratio is 2: 1 Thus 2 is the considered as a safe
margin from the above diagram it determines that the firm has safe margin in1.4
2006-07 and in 2004-06 it has 0.67&0.47 moreover it has not safe margin 200709 e.i to 0.78& 0.86
Liquidity Ratio
Liquidity Ratio =
Liquid Assets
Liquid Liabilities
Liquid Assets= Current Assets-Inventories

Liquid-Liabilities = Current Liabilities - Bank-overdraft
Years
Liquid assets
Liquid Liabilities
Ratio
2004-2005
110024781.8
454294589.7
0.24
2005-2006
37885949.4
563620481.6
0.067
2006-2007
496655612.5
623087336.2
0.79
2007-2008
102195141.3
565628200.9
0.18
2008-2009
163116368.5
542837550.5
0.30
INTERPRETATION:Usually, a high acid test ratio is an indication of that firms better

liquidity
position. From the above table it determines that the firm has 0.24
&0.067 in the year 2004-06 and it increased 0.79 in 2006-07 and it again
decreased 0.18 in 2007-08 then again raised0.30 in 2008-09
ACTIVITY RATIO
INVENTORY TURN-OVER RATIO
Sales
Inventory Turn-Over ratio=
Average Inventory
Opening-Stock + Closing-Stock
Average Inventory
=
2
Years
2004-2005
2005-2006
Average Inventory
192353685.5
234674943.5
Sales
Inventory Turn-Over
ratio
301002504.06
1.56
302304793.75
1.28
2006-2007
324789674.5
337985566.07
1.04
2007-2008
342085995.0
349546301.04
1.02
2008-2009
305513910.0
430543494.12
1.40
INTERPRETATION: This means that the inventory in the first year has been sold1.56 very slow in
2004-05 And it again increase in 2005-08 e.i 1.28, 1.04, 1.02.and in last year it
again decreased 1.4 in 2008-09
FIXED ASSETS TURN-OVER RATIO

Sales
Fixed assets turn-over ratio =

Fixed-Assets
YEARS
SALES
FIXED-ASSETS
FIXED ASSETS
TURN-OVER
RATIO
2004-05
301002504.06
350064970.91
0.85
2005-06
302304793.75
361712835.66
0.83
2006-07
337985566.07
363487965.66
0.92
2007-08
349546301.04
371470849.66
0.94
2008-09
430543494.12
647506096.70
0.66
INTERPRETATION:The ratio indicates the extent to which the investment in fixed assets
contributed towards to sales. As the figure shows, in 2004-05 the fixed
assets turnover ratio is 0.85 and it increase in the next 3years
continuously with 0.83, 0.92, 0.94. And it again decreases in
2008-09 e.i to 0.66.
CURRENT ASSETS TURN-OVER RATIO

Sales
Current assets turn-over ratio
=
Current Assets
YEARS
SALES
CURRENT
ASSETS
CURRENT ASSETS
TURN-OVER RATIO
2004-2005
301002504.06
308321871.3
0.97
2005-2006
302304793.75
265422636.1
1.13
2006-2007
337985566.07
875637598.7
0.38
2007-2008
349546301.04
446111012.4
0.78
2008-2009
430543494.12
471836449.8
0.91
INTERPRETATION:The current assets turnover ratio measures that how quickly the short term
obligations can be met. In the following graph it is shown that there is
increasing0.97, 1.13 in 2004-06 current assets turnover ratio. And it falls0.38 in
2006-07 and it increase slightly0.78 to 0.91 in 2007-09.
Operating-Efficiency Ratio:1) Direct Material cost to sales =
Direct Material cost *100

Net-sales
YEARS
Direct Material
SALES
Percentage (%)
2004-2005
200389076.8
301002504.06
66.57
2005-2006
219224160.5
302304793.75
72.51
2006-2007
241453980.32
337985566.07
71.43
2007-2008
224546979.08
349546301.04
64.23
2008-2009
309403524.5
430543494.12
71.86
INTERPRETATION:- Direct Material cost to sales should be low enough to

leave portion of sales to give fair return to investors from the above table show
that 66.57 & 64.23 in the year 2004-05 and 2007-08 it give the fair to the
investors where as72.51, 71.43 and 71.86. 2005-07and 2008-09 are not up to
mark able .
2) Direct Labour cost to sales =
Direct Labour cost *100

Net-sales
YEARS
Direct Labour
SALES
Percentage (%)
2004-2005
14885365.90
301002504.06
4.94
2005-2006
16958271.40
302304793.75
5.60
2006-2007
27661900.24
337985566.07
8.18
2007-2008
34862365.60
349546301.04
9.97
2008-2009
35562670.05
430543494.12
8.25
INTERPRETATION:- From the above table shows that the cost of direct labour
of the firm in the year of 2004-05 is 4.94% where it compare to the next 3year it
increase5.60, 8.18 & 9.97. Slithightlliy. And it again decreases in the year of
2008-09. It shows that the firm efficient utilized the labour in the year of 2004-05
and 2005-06.
Factory Overhead to Sales:3) Factory Overhead to Sales = Factory Overhead cost *100
Net-sales
YEARS
Factory
Overhead
Net-SALES
Percentage (%)
2004-2005
15712759.79
301002504.06
5.22
2005-2006
25581554.35
302304793.75
8.46
2006-2007
30966215.70
337985566.07
9.16
2007-2008
32038895.00
349546301.04
9.16
2008-2009
29269482.40
430543494.12
6.79
INTERPRETATION: - From the above table shows that the cost of

manufacturing overhead of the firm in the year of 2004-05 is 5.22% where it
compare to the next 3year it increase 8.46,9.16,& 9.16 in 2005-08. And it again
decreases 6.79 in the year of 2008-09.
Findings
Gross profit and net profits are decreased during the period of study,
which indicates that firms inefficient management in manufacturing and
trading operations.
Gross profit and net profits are increased during the period of 2004-05
which indicates that firms efficient management in manufacturing and
trading operations.
years. It shows that the firm had not sufficient liquid assets.
The inventory of the firm in the first year has been sold very slow. And
there is an increase in the movement of the inventories but it slightly
decreased in the last year. This may be a sign not good to the firm.
The fixed assets turnover ratio of the firm has in 2004-05 the ratio is 0.85
and it increase in the next 3years continuously and it again decrease in
2008-09.
The current assets turnover ratio is increasing during the period of 200406 and again it decrease in the period of 2006-07. And again increase in
next two year slithightlliy.
Direct Material cost ratio of the firm is has less material cost during the
period of 2004-05 & 2007-08 and it raised in the year of 2005-06 and
2008-09.
The cost of direct labour of the firm in the year of 2004-05 is 4.94%and it
increasing slithightlliy up to 2007-08 and it decrease in the next year.
The cost of manufacturing overhead of the firm in the year of 2004-05 is
5.22% where it compare to the next 3year it increase rapidly.
SUGGESTIONS
The profit Of the Company Is not in a good Position For That company
has to Take Alternative Actions such As
Increasing in Procurement in sugarcane ,
Production, and Control in Expenses Like, Administrative,
selling Etc.
The firms have low current ratio so it should increase its current ratio
where it can meet its short term obligation smoothly.
years. So I suggested that the firm maintain proper liquid funds like cash
and bank balance.
It should enhance its employees efficiency, more training needed to its

employees in order to increase its production capacity and minimize
mistakes while performing the tasks, also more safety precaution need to
implement to the employees who directly working on sugar production
process
CONCLUSION
This project of Ratio analysis in the production concern is not merely a work of
the project. But a brief knowledge and experience of that how to analyze the
financial performance of the firm. The study undertaken has brought in to the
light of the following conclusions. According to this project I came to know that
from the analysis of financial statements it is clear that SHSSK Ltd. Have been
incurring loss during the period of study. So the firm should focus on getting of
profits in the coming years by taking care internal as well as external factors. And
with regard to resources, the firm is take utilization of the assets properly. And
also the firm has a maintained low inventory.
PROVISIONAL BALANCE SHEET AS AT 31st MARCH, 2005

LIABILITY
SOURCES OF FUNDS
AMOUNT
ASSETS
AMOUNT
FIXED ASSETS
Share capital
88846018.59 Gross block
Reserves and surplus
274191573.3 Less:
4 Depreciation
350064970.
09
Net Block
350064970.
09
Investment
6975000.00

CURRENT
LIABILITIES
Working capital
CURRENT
ASSETS
279908387.0 Inventories
8
198297089.
91
Statuary deposits
4508406.18 Cash in hand
374639.72
Deposit
7217637.93 Cash at bank
2879292.96
Suspense
Sundries
Other
Sundries
14373128.04 Advances
84028.25 Other assets
3239794.41 Profit &loss
Account
loan funds
118309456.4
7
Cane bills and other

payables
26653751.52
TOTAL
818088181.
81
TOTAL
60423970.9
1
46346877.8
0
152726340.
15
818088181
.81
TRADING AND PROFIT & LOSS ACCOUNT AS ON 31-3-2005

Expenditure
Opening stock
AMOUNT
Incomes
201471850.0 Sugar sales

0
Other sales
Cost of production
212750813.4 Closing stock

8
Gross profit
70015301.58
AMOUNT
270160956.1
6
30841547.90
183235461.0
0
Total
484237965. Total
06
Establishment
charges
7247138.80 By gross profit
Travelling expenses
661534.60 Other income
Exp .on vehicle
762054.92
Printing
stationery
and
575316.06
Meetings
Expenses
&AGM
299139.58
&Insurance
35111966.31
Interest
charges
Govt Tax & Other
121490.67
Social Expenses
198765.78
Rent rates & Taxes
1257774.92
Other management
Expenses
1001874.80
Bonus for the year

2005
1600000.00
Depreciation
8680733.00
Net profit
14569011.3
9
TOTAL
72086800.8 TOTAL
4
484237965.
06
70015301.58
2071499.26
72086800.8
4


LIABILITY
AMOUNT
SOURCES OF
FUNDS
ASSETS
AMOUNT
FIXED ASSETS
Share capital
270171150.6 Less:
0 Depreciation
LOAN FUNDS
Net Block
Loans
Investment
CURRENT
LIABILITIES
CURRENT
ASSETS
361712835.6
6
361712835.6
6
587259.00
Working capital
6
Statuary deposits
717669.52
16549209.47
Deposit
suspense
Sundries
Other
Sundries
Cane bills and other

payables
TOTAL
303308585.5
3
49015066.50
120071494.2 Other assets

9
37433717.42

Account
161706973.2
3
65201661.09
931031316.
33
TOTAL
931031316.
33

Expenditure
Opening stock
AMOUNT
Incomes

0
Other sales
Cost of production

4
Gross profit
41317359.41
Total
589195771. Total
75
Establishment
charges
Travelling expenses
Exp .on vehicle

1547647.76
Printing and
stationery
683769.76
Meetings &AGM
Expenses
385579.30
Interest &Insurance
charges
29539180.87
Govt Tax & Other
573.00
Social Expenses
435704.22
Rent rates & Taxes

Other management
Exp
Bonus for the year
2006
1978687.76
605143.20
1700000.00
AMOUNT
281761927.5
0
205428665.2
5
286890978.0
0
589195771.
75
41317359.41
11971545.7

Bonus &
paid- 05
Incentive
1618790.00
Depreciation
2053862.00
Net profit
4053781.26
TOTAL
53288905.1 TOTAL
0
53288905.1
0

LIABILITY
SOURCES OF
FUNDS
AMOUNT
ASSETS
FIXED ASSETS
Share capital

0
272212433.6 Less:
2 Depreciation
LOAN FUNDS
Net Block
Loans
Investment
CURRENT
LIABILITIES
CURRENT
ASSETS
Working capital
Statuary deposits
Other funds
AMOUNT
363487965.6
6
--------------363487965.6
6
587259.00
378981986.2
8
327612.88
3238097.38
Deposit payable
8619351.89 Advances
47810043.43
Advance from
debtors
6317241.93 Receivables
45279858.83
Provisions for
160527056.4

expenses
Other
0 Account
liability
Creditor
TOTAL
2037609.50
101250338.1
3
1000239879
.90
TOTAL
1000239879
.90

Expenditure
Opening stock
AMOUNT
Incomes

0
Other sales
Cost of production

6
Gross profit
37903469.81
Total
700673937. Total
07
Administration
Employee cost
Administration
Expenses
10876604.35
By gross profit
AMOUNT
321102204.0
5
16883368.02
362688371.0
0
700673937.
07
37903469.81
11835306.34

Financial Expenses
29337549.35 Other Misc
1401824.00
income
Depreciation
2041283.00
Net profit
1179916.79
TOTAL
51140600.1 TOTAL
5
51140600.1
5

LIABILITY
SOURCES OF
FUNDS
AMOUNT
ASSETS
AMOUNT
FIXED ASSETS
Share capital

0
371470849.6
6
274371212.6 Less:
0 Depreciation
--------------------

LOAN FUNDS
Loans
Net Block
26729775.00
CURRENT
LIABILITIES
INVESTMENT
371470849.6
6
1087259.00
CURRENT
ASSETS
Working capital
0
Statuary deposits

8
1446247.76
Suspense
5289323.68
Deposit
8237656.89 Advances
Sundries
Other sundries
120856075.8 other assets

0
Account
Cane bills and Other

payable
73676864.17
Creditor
-------------------
TOTAL
977017361.
43
343915871.1
4
44575300.80
50884269.05
158348240.3
4
investment
1087259.00
TOTAL
977017361.
43

Expenditure
AMOUNT
Incomes
AMOUNT
Opening stock

0
Other sales
334738255.9
4
14808045.10
Cost of production
249243488.4 Work in progress

7
Gross profit
321483619.0
0
Total
672923481. Total
04
672923481.
04
Establishment
charges
Travelling expenses
Exp .on vehicle

1668460.99
Printing and
stationery
834305.94
Meetings &AGM
Expenses
374096.00
Interest &Insurance
charges
42150121.77
Govt Tax & Other
239482.00
Social Expenses
233234.86
Rent rates & Taxes
1945779.45
Other management
Exp
3513408.60
Bonus for the year

2007
Bonus &
paid- 07
Incentive
Depreciation
--------------3873572.00
2158779.00
1893561.00
60991621.57
10365431.00

Net profit
TOTAL
2178816.10
71357052.5 TOTAL
7
71357052.5
7

LIABILITY
AMOUNT
SOURCES OF
FUNDS
Share capital
AMOUNT
FIXED ASSETS
0

537014300.2
0
LOAN FUNDS
Loans
ASSETS
Less:
Depreciation
Net Block
85915406.30
CURRENT
LIABILITIES
INVESTMENT
647506096.7
0
-------------------647506096.7
0
600259.00
CURRENT
ASSETS
Working capital
0
Statuary deposits
531803.69
61187786.16
Suspense
308720081.3
7
Deposit
49701553.25
sundries
121366173.1 other assets

3
51695225.44

Account
156695096.4
6
Other sundries
Cane bills and Other
payable
32326689.23
Creditor
-------------------
TOTAL
977017361.
TOTAL
977017361.

43
43

Expenditure
Opening stock
AMOUNT
Incomes

0
Other sales
AMOUNT
389224030.4
2
41319463.70
Cost of production
340402697.9 Work in progress

8
Gross profit
287650640.0
0
Total
718194134. Total
12
718194134.
12
Establishment
charges
54414256.14
Travelling expenses
Exp .on vehicle

1830501.57
Printing and
stationery
672343.25
Meetings &AGM
Expenses
484440.00
-----------
24316580.24

Interest &Insurance
charges
43032479.08
Govt Tax & Other
1616986.78
Social Expenses
223744.90
Rent rates & Taxes
4227787.22
Other management
Exp
1367794.55
Bonus &
2008-09
Incentive
4700000.00
Bonus
paid
Incentive
5015552.80
&
Depreciation
Net profit
TOTAL
298796.00
1653143.88
78730836,3 TOTAL
8
78730836,3
8

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FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.

OBJECTIVES OF THE STUDY

WORKING CAPITAL MANAGEMENT

DATA ANALYSIS AND INTERPRETATION

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 1

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 2

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

India is the second largest producer of sugarcane next to

HISTORY OF SUGAR INDUSTRY IN INDIA:Traditional sweeteners gur & khandsary are

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 3

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

NEED FOR THE STUDY

TITLE OF THE PROJECT

To study the profitability of Halsidhanath Sahakari Sakhar Karkhana Ltd.

To study the liquidity position.

To find activity turnover

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 4

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

SCOPE OF THE STUDY

LIMITATIONS OF THE STUDY

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

: Last five years financial statements.

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 8

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

HISTORY OF SUGAR INDUSTRY IN INDIA:Traditional sweeteners gur & khandsary are

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

MANUFACTURING PROCESS & TECHNOLOGY:Sugar (sucrose) is a carbohydrate that occurs naturally in

different from the applicable to industries in general. In depends on three crucial

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

Granulated, brown, liquid, sugar, and invert sugar.

PFROFILE OF THE COMPANY

Name of the factory

Shree Halasidnath Sahakari

Shree Halasidnath Sahakari

1st Crushing Season

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 11

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

STD CODE (08338)

BACKGROUND & INCEPTION COMPANY.

is the support pillar to the sugar cane

The foundation of karkhana building was held on 9-11-1982. The chief

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 12

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 13

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 14

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 15

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

workers and leader working in co-operative sector

18990 share holders. The

THERE IS TOTALLY 15 BODS.

Grower member will elect 12 BODS

PRESENT BOARD OF DIRECTORS ELECTED DIRECTOR

Shri. Babasaheb .S. Saasne

Shri .Ramagounda .R. Patil

Shri .Ganesh .P. Hukkeri

BASAVESWAR ENGNEERING COLLEGE BAGALKOTPage 16

FINANCIAL RATIO ANALYSIS OF SRI HALSIDHNATH S.S.K LTD

Shri .Appasaheb .S. Jolle

Shri. Annasaheb .A. Patil