Submit final report on working capital mgt

A STUDY ON WORKNG CAPITAL MANAGEMENT OF

SUBRAMANIYA SIVA CO-OPRATIVE SUGAR

MILL. LIMITED AT GOPALAPURAM.

PROJECT REPORT

Submitted by

NIVETHA.S

Register No: 108001655062

In partial fulfillment for the award of the degree

of

MASTER OF BUSINESS ADMINISTRATION

IN

GNANAMANI INSTITUTE OF MANAGEMENT STUDIES

pachal

NAMAKKAL

JUNE- 2012

GNANAMANI INSTITUTE OF MANAGEMENT STUDIES

NAMAKKAL

PROJECT WORK

PHSAE-II

This is to certify that the project entitled

A STUDY ON WORKNG CAPITAL MANAGEMENT OF

SUBRAMANIYA SIVA CO-OPRATIVE SUGAR

MILL . LIMITED AT GOPALAPURAM.

Is the bonafied record of project work done

by

NIVETHA.S

Register No: 108001655062

Of MASTER OF BUSINESS ADMINISTRATION during the year 2010-2012

…………………….. ………………………….. …………………………..

Faculty Guide Head of the Department Professor Head

Submitted for the Project Viva-voce examination held on …………

……………………. ………………………….

Internal Examiner External Examiner

DECLARARION

I affirm that, “A STUDY ON WORKING CAPITAL MANAGEMENT

IN SUBRAMANIA SHIVA CO OPERATIVE SUGAR MILL LTD IN

GOPALAPURAM” being submitted in partial fulfilment for the award of MASTER OF

BUSINESS ADMINSTRATION is the original work carried out by me, it has not formed

the part of any other report submitted for award of any degree or diploma. Either in this or

any other university

..........................

Signature of the student

S.NIVETHA

Register no:

108001655062

I certified that the declaration made above by the candidate is true

……………………….

Signature of the guide

Mr. R. PONMUTHURAMALINGAM, MBA, M.phil,

(ASSISTANT PROFESSOR)

ACKNOWLEDGEMENT

I express my gratitude to Dr. T.ARANGANNAL, Chairman, and Smt.P. MALA

LEENA chairperson of GNANAMANI EDUCATIONAL INSTITUTIONS, PACHAL for

`giving me an opportunity to study MBA course during the year of 2010-2011.

I express my profound gratitude and special thanks to Mr.k.Vivekanandan, CEO,

GNANAMANI EDUCATIONAL INSTITUTIONS, for giving me the opportunity to

undertake this Internship Training.

I would like to express my sincere gratitude to Dr. V.BASKARAN, Principal,

Gnanamani College of Technology for his encouragement in this regard.

I would like to express my sincere gratitude to Dr. P. AMALANATHAN, Professor&

Head, and Department of Management Studies for his valuable suggestions in completing

this training.

I am thankful to H.O.D DR R.MARIMUTHU, DEPARTMENT OF MANAGEMENT

STUDIES, PACHAL for his constant advice throughout the training.

I express my sincere thanks to my guide Mr.R.PONMUTHURAMALINGAM

(ASSISTANT PROFESSOR OF GIMS) for his valuable guidance throughout the Project

report.

I would like to thank the employees of SUBRAMANIA SHIVA CO OPERATIVE

SUGAR MILL LTD IN GOPALAPURAM management and my friends for their advice

and assistance for completing the project work successfully.

S .NIVETHA

ABSTRACT

The researcher as part of curriculum has conducted a study to find the

working capital performance of the company. The data utilized for the study is

secondary sources the secondary data is collected the annual report flash five

year annual report of the company. The data has been collected for a period of

five years (2006- 2007) to (2010 – 2011).

The main motive of the project is to know the company how practically

operating and financial structure of the company Working capital management

is concerned with the decisions which are related with the current assets and the

current liabilities. It means, it concerned with day-to-day management activities.

In an organization, one of the main functions of finance department is to

maintain or manage the working capital efficiency; Current assets should be

managed efficiently of safeguarding the form against the days of liquidity

insolvency, and to increase the profitability.

Through this study I suggest to the company to maintain the fixed assets

value and also increased the level of current assets. The firm can maintain the

increase in current assets value comparing with current Liabilities .Working

capital has to be maintained, and increase their value.

CONTENTS

SL.NO CONTENTS PAGE NO

I

INTRODUCTION

1.1 Introduction of the study

1.2 Review of literature

1. 3 Statement of problem

1.4 Objectives of the study

1.5 Scope of the study

1. 6 Research Methodology

1. 7 Period of the study

1. 8 Limitations of the study

1. 9 Chapter Scheme

1

17

19

20

20

21

21

22

23

II

HISTORY OF THE INDUSTRY

2.1 Industry Profile

2.2 Company profile

24

28

III

DATA ANALYSIS AND INTERPRETATION

3.1 Analysis using ratio analysis

3.2 Analysis using trend analysis

3.3 Analysis using statement of changes in

working capital method

35

52

55

IV

4.1FINDINGS,

4.2SUGGESTION

4.3CONCLUSION

65

66

67

BIBLIOGRAPHY,APPENDIX

68

LIST OF TABLES

Table NO. TABLE NAME Page No

3.1.1 Table showing current ratio

37

3.1.2 Table showing fixed asset ratio 40

3.1.3.1 Table showing net profit ratio 44

3.1.4 Table showing working capital turnover ratio 47

3.1.5 Table showing quick ratio 50

3.2.2 Table showing expected sales 53

3.3.1 Table statement showing changes in working capital (2006 – 2007)

55


57


59

3.3.4 Table statement showing changes in working capital (2009– 2010)

61


63

LIST OF CHART

Chart no

CHART NAME

Page No

3.1.1 Chart showing current ratio

38

3.1.2 Chart showing fixed asset ratio

42

3.1.3.1 Chart showing net profit ratio

45

3.1.4 Chart showing working capital turnover ratio

49

3.1.5 Chart showing quick ratio

51

3.2 Trend analysis of sales

54

CHAPTER – I

INTRODUCTION OF THE STUDY

1.1 INTRODUCTION

If a company's current assets do not exceed its current liabilities, then it

may run into trouble paying back creditors in the short term. The worst-case

scenario is bankruptcy. A declining working capital ratio over a longer time

period could also be a red flag that warrants further analysis. For example, it

could be that the company's sales volumes are decreasing and, as a result, its

accounts receivables number continues to get smaller and smaller.

Working capital also gives an idea of the company's underlying

operational efficiency. Money that is tied up in inventory or money that

customers still owe to the company cannot be used to pay off any of the

company's obligations. So, if a company is not operating in the most efficient

manner (slow collection), it will show up as an increase in the working capital.

This can be seen by comparing the working capital from one period to

another; slow collection may signal an underlying problem in the company's

operations.

Working capital management is concerned with the decisions which are

related with the current assets and the current liabilities. It means, it concerned

with day-to-day management activities.

The key factor, which is used to differentiate long term financial

management and short-term financial management, is the timing of cash.

But a short time financial decision mainly involves the cash flow within a

year, or within the operating cycle of the firm.

MEANING OF WORKING CAPITAL

Capital required for a business can be classified under two main

categories viz.

Fixed Capital and

Working capital

Every business needs funds for two purposes for its establishment and to

carry out its day-to-day operations long-term funds are required to create

production facilities through purchase of fixed assets such as plant and

machinery, land, building furniture, etc. investments in these assets represent

that part of firms capital which is blocked on a permanent or fixed basis and is

called fixed capital funds are also needed for short-term purposes from for the

purchase of raw materials.

Payment of wages and other day-to-day expenses. These funds are known

as working capital. In simple words, working capital refers to that part of the

firm’s capital which is required for financing short term or current assets such

as such, marketable securities, debtors and inventories. Funds, thus invested in

current asserts keep revolving fast and are being constantly converted into cash

and this cash flow again in exchanging for other current assets. Hence, it is also

known as revolving or circulating capital or short-term capital.

DEFINITION OF WORKING CAPITAL

In the words of shubin, “working capital is the amount of funds necessary

to cover the costs of operating the enterprise.

According to Genestenberg “Circulating capital means current assets of a

company that are changed in the ordinary course of business from one to

another as for example, from cash to inventories, inventories to receivables,

receivables into cash”.

CONSTITUENTS OF CURRENT ASSETS

1. Cash in hand and bank balance

2. Bills receivables

3. Sundry debtors (less Provision for bad debts)

4. Inventories of stock as:

i. Raw materials

ii. Work-in-process

iii. Store and spares

iv. Finished goods

5. Temporary investments of surplus funds

6. Prepaid expense

7. Accrued incomes

CONSTITUENTS OF CURRENT LIABILITIES

1. Bills payable

2. Sundry creditors accounts payable

3. Accrued or outstanding expenses

4. Short-term loans advances and deposits

5. Dividends payable

6. Bank over draft

7. Provision for taxation if it does not amount to appropriation of profits

In a narrow sense, the term working capital refers to the net working

capital. Net working capital is the excess of current assets over current liabilities

or say;

Net working capital = current assets - current liabilities

KINDS OF WORKING CAPITAL

On basis of concept

1. Gross working capital

2. Net working capital

On the basis of time

1. Permanent or fixed working capital

2. Temporary or variable working capital

Permanent of fixed working capital

1. Regular working capital

2. Reserve working capital

Temporary or variable working capital

1. Seasonal working capital

2. Special working capital

CONCEPTS OF WORKING CAPITAL

The two concepts of working capital are,

1. Gross Working Capital

It refers to the investment made by the company in current assets. Current

assets are the assets which can be converted into cash with an accounting year

or operating cycle. It also includes cash, short-term securities, debtors, bills

receivable and stock.

2. Net Working Capital

To analyze the various components of working capital in the company.

The difference between current assets and current is called the next working

capital. Current liabilities are the own which is claimed from the outsiders and

are expected to be returned within an accounting year. It includes creditors, bills

payable, and out siding expense.

TWO DANGEROUS POINTS OF CURRENT ASSETS

Danger of Inadequate Working Capital

1. Inadequate working capital will lead to a condition, in which one cannot

pay its short-term liabilities in time. So there arises a situation where

there is a loss of reputation and tight credit terms.

2. The organization’s requirements cannot be fulfilled in bulk: hence it

cannot take the advantage of cash discounts.

3. Difficulties will arise in meeting the day-to-day expenses. This will lead

to inefficiency and increase in costs with the minimum profits.

Dangers of Excessive Working Capital

1. The low rate of return investment will lead to the fall in the value of

shares.

2. Excessive working capital will lead to unnecessary purchasing and

excessive amount of inventories, as a result, there are chances of theft and

loses.

3. Excessive debtors and defective credit policy are the indication of

excessive working capital. There may be delay in collection and

increased incidence of bad debts.

4. Excessive working capital will make the management complacent. This

will lead to overall inefficiency in the organization.

Need For Working Capital Management

Beyond the limit, both the current assets i.e., inadequate working capital

and excessive working capital are dangerous. Beyond the limitations of both the

level, the common goal of the organization cannot be achieved.

Working capital management provides effective and efficient decision to

allocate the current assets.

DETERMINATION OF WORKING CAPITAL MANAGEMENT

There is no set of rules or formulate to determine the working capital

requirements of firms. Many factors influence working capital needs of firms.

They each have different importance. The importance of factors for a firm

changes over all period of time. The various factors which generally influence

the working capital requirement of firm are:

1. Nature of Business

The main factors which influence the working capital requirement of a

firm are the nature of business. Trading and non-manufacturing firms invest

large amount of money in working capital, while fixed assets have a very small

investment.

2. Credit Policy

Another factor which influences the level of working capital is credit

police of the firm. The firm has to judge correctly in granting credit terms to its

customers. Depending upon an individual customers, credits can be given

indifferent terms. A lenient credit policy to an unworthy customer will create a

problem of collecting funds later on. The firm should prompt making collection.

A high collection period means tie-up of large funds in book debtors Slack

collection procedures can increase the chance of bad debts. Credit policy with a

short period to good customers affects the level of sales. Both these credit

policies affect the company’s profitability.

3. Availability of Credit

Credits terms, granted by its creditors, affect the working capital

requirements of a firm. Availability of liberal credit will enhance a firm with

less working capital. This is similar to the credit from the banks, which also

influence the working capital needs of the firm.

4. Seasonality of Operation

Firms whose operations change seasonally have a highly fluctuating

working capital requirement. The working capital need of such a firm is likely

to increase rapidly during a season and will have a significant decrease during

another season.

5. Marker Conditions

Market conditions also play an important part in the working capital need.

If the competitions in the market are high, a large inventory of finish goods is

required to serve the customer’s need. If not, the customers will shift to other

manufactures, which are ready to meet their needs with further generous credit

terms. Thus for greater investment in finished goods, working capital needs

should be high inventory and accounts receivable.

6. Conditions of Supply

The inventory of raw materials, spears and stores depends on the

condition of supply. If the supply is in correct amount, the firm contain only

small inventory. Even though the supply is unpredictable, a continuous

production stock and inventor are made available at any time.

Supply cannot be always predictable. During that stage, the condition of

the production is affected. To overcome this, inventory is maintained. A similar

policy also has to be maintained, when the raw materials are available, only one

season and the production operation are carried out throughout the year.

IMPORTANCE OF WORKING CAPITAL MANAGEMENT

1. Continuous Production

Excessive working capital helps to run the production continuously. It

helps prevent the unpredictable supply of raw materials.

2. Solvency and Good will

If a firm has adequate working capital, it will enable him to pay the

payment to the creditors. This will create and maintain goodwill to the firm.

3. Easy loan Facility

A firm with sufficient working capital enjoys high privileges of liquidity

and good credit standing. This enables them to secure loans from banks and

other financial institutions very easily.

4. Cash Discounts

Adequate working capital leads to cash discounts on purchases which in

turn helps the organization in the reduction of cost.

5. Regular Payment of Expenses

Working capital helps to give a regularly milk payment cooperative

society of salaries. Wages and other day-to-day commitments. This helps to

raise the morale of employees and increase their efficiency.

6. Exploitation of Market Condition

A firm with excessive working capital can create favorable market

condition. When the market price is lower, this will enable them to buy huge

amount of raw materials. During unfavorable conditions, they are able to hold

stocks of finished goods, until there is an increase in the retail price.

7. High Return on Investments

Excessive working capital gives the facility of continuous production and

effective utilization of fixed assets. This makes the concern to get more profits

and ensure the form a higher return on investment. Now we can have a detailed

look, at the big parts of working capital. The lists to be studied are;

1. Receivable Management

2. Inventory Management

3. Cash Management

RECEIVABLE MANAGEMENT

Introduction

Trade credit occurs only when a firm sells its products or services on

credit and not receiving the cash immediately.

It acts as a bridge for the movement of goods through the stages of

production and distribution to customers. Thus are acts as an essential

marketing tool.

A firm will grant trade credit to protect its sales from the competitors.

This is done to attract the potential customers to buy its product at favorable

terms.

Sometimes the firm will not see the credit worthiness of the customers.

This leads to bad debts.

The main objective of the receivable management is to maximize the

sales and minimize the bad debts.

CAUSES FOR CREDIT SALES

1. Competition

When the degree of competition is high, the credit granted by the firm

will also be high.

2. Relationship with Dealers

The companies provide extra facilities like extension of credit to dealers.

This is done to build a long-term relationship with them. The companies also

reward the customers for their loyalty.

3. Marketing tool

Normally, the marketing promotional tools are 1) Advertising 2) Personal

selling 3) Publicity. The indirect marketing promotional tools are credit sales.

FACTORS AFECTING THE INVESTMENT IN ACCOUNTS

RECEIVABLE

1. Volume of Credit Sales

The policy of giving certain amount of products in credit during a period

of time.

2. Collection

It means the times given to the debtors to pay the money for the credit

purchase.

CREDIT EVOLUTION OF CUSTOMERS

Before giving the credit sales to the customers, the firm should analyze

and evaluate the credit worthiness of the customers. The firm should also

analyze the ability of the customers to repay the credit on time.

To analyze the credit worthiness of the customers, the firm collects

information from various sources. They are

1. Financial Statement

It is one of the easiest methods to know the credit worthiness of the

customers. This method is made use of in public limited companies only, but

not for partnership firms and individual companies.

2. Bank References

Bank, the place where the customers maintain their account, is the

another place of collecting credit information. In developed countries, like USA,

banks with credit department provide information about the customer’s credit

worthiness. If the creditor needs to know about the customer’s information, the

bank will provide them. But in India bank does not act as a sourer of

information because of their indifference in providing information. Even though

the banks in India provide information they won’t be accurate.

3. Business References

A firm can ask the debtor or customers to know about the debtor’s credit

worthiness and trade references. This is the useful source of getting information

without any cost.

INVENTORY MANAGEMENT

Introduction

Inventory is one of the significant parts of working capital. An inventory

has more than half of the percent of current assets in most sofas the public

limited companies in India. Inventories are the main source to satisfy the

customer’s demand. If we fail to provide the right quality of goods in right time

it decreases our firm’s good will. So effective and efficient inventory

management is necessary to run production and sale activities smoothly.

TYPES OF INVENTORIES

There are three types of inventories, they are,

1. Raw materials

2. Work in progress

3. Finished goods

1. Raw Materials

This is a basic input which can be converted in to finished goods through

manufacturing process. The stored units for the continuous production are

known as raw material inventories.

2. Work-in-Progress

Work-in-progress inventories are the party finished products. In order to

produce finished goods as per the demand, the work in process is store. This is

known as work in progress inventories.

3. Finished Goods

The products which are ready for sale is known as finished operations.

Finished goods inventories are more important.

All the three inventories are not made use of in all the organization. They

depend only on the nature of business.

THE MAIN OBJECTIVES OF INVENTORY MANAGEMENT ARE:

1. To inventories for smooth manufacturing operations.

2. To maintain investment in inventories to maximize company’s

profitability.

3. To maintain the sufficient finished goods for smooth marketing

operations

4. To minimize the ordering and carrying cost

5. Keeping investment in inventories at optimum level.

CASH MANAGEMENT

Cash is the other important current asset in business operations. Cash is

one of the most liquid assets. It forms the important part in day-to-day business

operations; generally, cash is referred to as life blood of business enterprises.

Cash refers to coins, currency, the firm’s cheques and balances in its bank

accounts.

OBJECTIVE OF CASH MANAGEMENT

We have already seen the important of current assets. Excessive cash in

business operations, may lead to the destruction of the profitability. If more cash

balance is held in banks and other financial institutions, it affects the

profitability. So the main objectives of cash management are,

1. To minimize the amount locked up as cash balance

2. To meet the cash payment requirements regularly

1.2 REVIEW OF LETARTURE

1. Ramamoorthy, V.E., working capital management, IFMR, Chennai,

1976, p.11.

The firm should maintain a sound working capital position. It should have

adequate working capital to run its business operations. Both excessive as well

as inadequate working capital position are dangerous from the firm’s point of

view.

2.Ramamurthy, V.E., working capital management, Chennai: institute for

financial management and research, 1976, p. 183.

Ramamurthy, V.E., “Trade credit creates account receivable or trade debtors

that the firm is expected to collect in the near future. The customer from

receivable or book debt have to be collected in the future are called trade

debtors or simply as debtors and represent the firm’s claim or assets. A credit

sale has three characteristics” 2 first, it involves an element of risk that should be

carefully analyzed. Cash sales are totally riskless, but not the credit sales as the

cash payment are yet to be received. Second, it is based on economic value. To

the buyer, the economic value in goods or services passes immediately at the

time of sales, which the seller expects an equivalent value to be received later

on. Third, it implies futurity. The buyer will make the cash payment for goods

or services received by him in a future period.

3.Weston, j.fred and Eugene f.brighan, managerial finance, Illinois:

Dryden press, 1975, pp. 123-24.

Working capital management refers to the administration of all components of

working capital-cash, marketable securities, debtors (receivable) stock

(inventories) and creditors (payable). The financial manager must determine

levels and composition of current assets. He must see that right source are

tapped to finance current assets, and current liabilities are paid in time.

There are many aspects of working capital management which make it an

important function of the financial manager. Weston, j.fred and Eugene

f.brighan:

Time

Investment

Growth

4. Daloof, M, “doea working capital management affects profitability of

belgian firms”, journal of business finance and accounting, vol 30, no. 3 &

4, 2003, p.573-587

Deloof, M., (2003) discussed that most firms had a large amount of cash

invested in working capital. It can therefore be expected that the way in which

working capital managed will have a significant impact on profitability of those

firms. Using correlation and regression tests he found a significant negative

relationship between gross operating income and the number of days accounts

receivable, inventories, accounts payable of Belgian firms.

5. M.E. thukaram rao. “Management accounting”, new age international

publishers, New Delhi.

According AICPA, “financial statements are prepared for the purpose of

presenting a periodical review or report the progress by the management”.

1.3 STATEMENT OF THE PROBLEM

• There is no proper financial manager to maintain the working capital

management.

• Low financial performance of the company.

• There is no proper norms to maintain the current asset and current

liabilities of the company Working capital is determine the current asset

and current liabilities of the company and also it is show the current

position of the company so this the reason for I am choose this topic.

1.4 OBJECTIVES OF THE STUDY

• To know the working capital management of the company over the

period five years (From 2007 – 08 to 20010 – 11).

• To analysis the cash and liquidity position of Subramanian Siva co-

operative sugar mill.

• To analysis over all current assets and current liability.

1.5. SCOPE OF THE STUDY

The study is extremely useful in highlighting the financial performance of

the company.

To give suggestion about the requirement of working capital to the company

for the future years.

By use of financial ratio the company can able to compare the liquidity and

the profitability position for the given period.

1.6 RESEARCH METHODOLOGY

Research Methodology means it provides valuable guidelines to do the

project systematically. In other words it indicates way to collecting, analyzing

and interpreting the data.

SECONDARY DATA

• The data require for the study have been collected from the secondary

sources like five years of company annual report, financial statement,

magazines, websites and the internal auditing books etc.

• Secondary data means the data which are already collected for the same

or other uses.

ANALYTICAL TOOLS

• The tools require to analysis ratio analysis.

• Schedule of changes in working capital.

• Trend analysis.

1.7. PERIOD OF STUDY:

A study on financial performance analysis in Subramanian Siva co-

operative sugar mills ltd at Gopalapuram the period of December 2011 to May

2012

1.8. LIMITATIONS OF THE STUDY

The study is restricted for a period of two months

Due to inadequate time it is not possible to analyze all aspects

relevant to the study.

One cannot make an accurate analysis, using the data of five years

and judge the performance of the whole company.

Only secondary data are used for the analysis, they were extracted

from the published the statements of the corporation.

This research is mainly based on ratio analysis and other tools to

certain extent it deals with working capital management only.

1.9 .CHAPTER SCHEME

The first chapter consists of brief introduction of the study,

The second chapter consists of company profile.

The third chapter consists of data analysis and interpretation.

The fourth chapter consists of findings, suggestion and

conclusions.

CHAPTER – II

CHAPTER – II

2.1 INDUSTRY PROFILE

Sugar factory plays a significant role in the social and economic uplift of

people day and night and plays a significant role in essential item like sugar,

molasses , bagasse , alcohols , and bio-fertile. Sugar cane is cultivated in more

than 110 countries and India stands first in sugar production within around 20

established sugar factories and over 35 million farmers and agricultural labors

involved in sugarcane cultivation and harvesting .

Tamilnadu has a rich tradition of successful sugarcane cultivation .if occupies

2.56lakhs hectors representing 65% of cane, a major portion being crushed by

36 sugar factories in Tamilnadu and Pondicherry. Benefit of these items is

Industry related to regular activities of the common people in rural areas .in

addition other by-products form sugar factories play a principal role in the

foreign exchange in an indirect way.

SUGAR INDUSTRY

Sugar industry is an Argo -based industry next only to textile. It plays a major

role in the economic development of rural areas in the state. The sugar industry

generates large scale direct employment to the rural population in various ways.

There are 36 sugar mills in this state, of which 16 are in co-operative sector, 3

are in public sector and 17 are in private sector.

PERFORMANCE OF SUGAR MILLS IN TAMILNADU

During 1994-1996 seasons, the sugarcane was produced in abundance in

the state and the sugar mills faced a glut situation and had to crush 160% and

124% of their capacity respectively affecting the recovery badly. during1996-97

sessions , the sugar mills had just sufficient cane to achieve total cane crush of

117.40 lakh tones and in 1997-19e98,the mills crushed 145.92 lakh tones which

amount to 7% and 87% of capacity utilization respectively. The financial

performance of cooperative and public sector sugar mills during 1998-1999 is

given in annexure-II. The financial performance of the department of sugar in

respect of plan schemes allocation is furnished in annexure-III.

SUGAR DEVELOPMENT FUND (SDF) FROM GOVERNMENT OF

INDIA:

The government of India had enacted the sugar cess act 1984, under

which a sugar cess amount of Rs.14/-per quintal of sugar is levied on each sugar

mills in country. The above amount is collected as fund with the title ‘sugar

development fund’ (SDF) by the government of India and is being utilized by

the sugar mills as loan for the following purposes:

Modernization /rehabilitation of sugar mills.

Development of sugar cane in the sugar mills area. Sanction of

research grant for the research and development project connected

with sugar industry is also made from this fund.

From the introduction of the SDF in 1984, 30 sugar mills out of 36 sugar mills

in tamilnadu have availed loan from government of India for cane development.

Sugar industry is the agro-based industry located in the rural India. About

45million sugar cane farmers, their dependents and a large mass of agricultural

labor are involved in sugar cane cultivation harvesting and ancillary and

consulting 7.5% of the rural population. Besides, about 0.5million skilled and

semi-skilled workers, mostly from the rural areas are engaged in the sugar

industry. The industry in India has been a focal point for socio, economic

development in the rural areas by mobilizing rural resources, generating

employment and higher income, transport and communication facilities.

Further, many sugar factories have established school, colleges, medical centers

and hospital for also diversified in to by-produced based industries and have

invested and put up distilleries, organic plants, paper and board factories and co-

generation plants.

BACKGROUND OF THE INDUSTRY

Human, throughout its history, has enjoyed sweet food and link

sugar brings out flavors, intensities colors and also acts as servitude

and fermenting agent. In olden days we know that it is one of the

cheapest sources of energy i.e. calories sweetness sources’ occurs

aurally in plants.

There is lack of statically data to determine when acne sugar

became the principal sweetener in any given part of the world. But

it can be stated that cane sugar was first made in India and

achieved dominant status 2000 or more years ago. The earliest

precise and secure date for manufacture of sugar from sugarcane is

in the kautillya’s Arthshatra, a Sanskrit manual on statesmanship

written in 324-300 B.C. kautillya was government official.

Cultivation of sugarcane as a commercial crop was widely spread

in Ganges valley. North India was the first center of innovations

and from here knowledge of how to make crystalline sugar spread

along the tread to the east and through Ire an, to the west. The

Indian religious offerings contain fire (punch elixir Amrita) like

milk, curd, ghee, honey and sugar which indicates how important

sugar was, not only as an item consumption but as on items which

influenced the Indian was of life.

2.2 COMPANY PROFILE

Subramanian Siva co-operative sugar mills ltd., gopalapuram on agro-

based industrial undertaking was established in pappireddipatty talus in

dharmapuri district to fulfill the long felt need of the public in general and the

sugar cane grower in particular. This area was traditionally a cane potential

area.

Normally the bulk of cane grower in this area was sent to dharmapuri district

coop. sugar mills to cater to the need of the sugar cane grower of this area sugar

factory was established with a crushing capacity of 2,500 TCD at a total project

cost of Rs.3,300.00 lakhs. This sugar factory is situated gopalapuram village,

pappireddipatty talus in dharmapuri district about 40Kms from dharmapuri

town and 50Kms from Salem city. The location of the mills is 5Kms from

Salem to Vellore main road. The area of the mills is 96.14 acres.

The mill was registered under the tamilnadu co-operative society’s act

1961 and 25th November 1987. The foundation stone was laid by the hon’ble

chief minister of tamilnadu Dr.kalaingnar on 13.05.1990. The factory

commenced its first crushing season on 1st October 1992.

The unique feature of the mills is installing of 2.5 MW co-generation

plant using the bagasse as raw material at a cost of 01.23 cores.

The mill has obtained ISO 9001-2000 certificate during 2003 for a period

of three years and subsequently renewed up to June 2009.

To improve the mill efficiency, boiler efficiency and quality of sugar-

modernization of mills and boiler with DCS system and installation of rotary

screen for filtering the bagacillo in cane juice installation of auto PH control

system, the tender finalized. The government of tamilnadu has sanctioned

Rs.57.50lakhs under part II scheme.

GENERAL INFORMATION:

Company name : Subramanian Siva co-operative sugar mills

ltd

Administrators : Mr. Kalaichelvam

Address : gopalapuram

Date of registration : 25.11.87

Date of office started functioning : 16.02.88

Date of commencement of crushing : 01.10.92

Letter of intent : 584/1987 DT: 09.10.87

Industrial license : CIL: 44/of 1996

Total area of mills : 96.14acres

CAPACITY:

Crushing per day : 2500TCD

For season : 430000tons

CANE PARTICULARS:

Cane divisional office: area of operation of the mills consisting of 8

divisional offices

1. Mill site office 2.Harur

3. kalavi 4.morappur

5. Pappireddipatti 6.bommidi

7. Ayothiyapattanam 8.gobonathampatti koot road

B. CANE VARIETY

1. High sugar variety : CO 86032 – 99.53%

2. Medium sugar variety : COC 22- 0.22%

3. Low sugar variety : CO – 94045 – 0.25%

CRUSHING PROGRAMMED FOR SEASON 2010-2011

Cane target : 14000 acres

Achievement : 12912 acres

Total cane estimate : 300000 tones

Actual cane crushed : 316640 tones

Date of crushing start : 15.11.2010

Date of closure : 08.04.2010

CANE DEVELOPMENT ACTIVITIES AND FUTURE PLAN:

1. Chip buds seedlings planting : low cost technology

2. Wider row spacing planting : facilitate mechanical

harvesting

3. Mechanized inter cultural operation : labours saving and timely

operation

4. Drip irrigation : water saving technology

5. Precision farming : do

6. Vermin compost production : enrich soil organic matter

7. Parasite breeding : to control shoot borer pest.

GODOWN CAPACITY:

Godown no.1 : 2 lakh qtls.

Godown no.2 : 1 lakh qtis.

Additional sugar godown : 50000 quintals under construction.

Molasses tanks : 2 Nos.each 6000 M.T. capacity.

PLANT AND MACHINERY SUPPLY:

Milling tandem : 33.00 cores

Boiler 65T. Capacity : 01.23 cores

Boiling house equipment : -

Centrifugals : M/s. Triveni engineering works, New Delhi

M/s. Ergo dyne

M/s. Kay iron works

M/s.buckauwolf industries Ltd.,

STAFF STRENGTH OF THE MILLS:

Sanctioned existing

Seasonal : 253 229

Regular : 223 128

Total : 476 357

POWER GENERATION AND EXPORT:

Capacity : 5MW

Production per day : 95000 units

Consumption by mills : 62000 units

Exporting to TNEB grid : 33000 units per day

Rate paid by TNEB : Rs. 3.15 per unit

For full crushing season of 172 days 56, 76,000 units can be exported with

revenue of Rs.178.79 lakhs per season.

CO-GENERATION – POWER EXPORT DETAILS:

Year 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Co-generation

power

units 2455960 6308160 5902040 5949760 5287560 3391400

100% co-generation plant is in active stage for commissioning along with

modernization of the plants

ORGANISATION CHART

ORGANISATION CHART

Administration

Special officer

Administration account (C.F) CCO (cane) engineering manufacturing

Establishment purchase security time office dispensary

General material budget cane sales &God own

Farm R & D cane supply irrigation

Civil factory house mill house boiler boiling workshop

Processing LAB packing clarification pan boiling

CHAPTER – III

CHAPTER – III

3. DATA ANALYSIS AND INTERPRETATIONS

In an organization, one of the main functions of finance department is to

maintain or manage the working capital efficiency; Current assets should be

managed efficiently of safeguarding the form against the days of liquidity

insolvency, and to increase the profitability.

If the firm does not invest sufficient funds in current assets, it many

become illiquid. But it would lose profitability as idle current assets would not

earn anything.

Thus a proper trade off must be achieved between profitability and

liquidity. In order to ensure that neither insufficient no unnecessary funds are

invested in current assets. The various techniques used are follows.

RATIO ANALYSIS.

TREND ANALYSIS.

SCHEDULE OF CHANGES IN WORKING CAPITAL.

3.1 RATIO ANALYSIS

Ratio analysis is one of the effective tools to analyze the form’s

performance. Ratio analysis gives information about strength and weakness of

the firms in various aspects.

NATURE OF RATIO ANALYSIS

A ratio is defined as “the indicated quotient of two mathematical

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

financial analysis a ratio is used as an important tool for evaluating the financial

position and performance of a firm. Normally an absolute accounting figure

reported in the financial statement does not provide a meaningful understanding

of the performance and financial position of a firm. An accounting figure

conveys meaning when it is related to some other relevant information. Ratio

analysis helps to know the relationship between two accounting figures.

3.1.1 CURRENT RATIO

Current ratio may be defined as the relationship between current assets and

current liabilities. This ratio is known as working capital ratio; it is a measure of

general liquidity and is most widely used to make the analysis of a short-term

financial position or liquidity of a firm. Two basic components of this ratio are

current assets and current liabilities.

CURRENT ASSETS

CURRENT RATIO =

CURRENT LIABILITY

TABLE 3.1.1

CURRENT ASSETS RATIO

Year Current asset Current liability Current ratio

2006-2007 509968922 425844350 1.19

2007-2008

777093587

822106790 0.95

2008-2009 641346879 529397332 1.21

2009-2010

1155480400

643658065 1.79

2010-2011

1218334893

695366738 1.75

Source: Secondary data

FIG 3.1.1

CURRENT ASSETS RATIO

INTERPRETATION

In the year 2007-2008 the working capital level increased, compared to 2006-

2007

Because the level of current liability is decreased in the year 2007

The working capital level is increased in the year 2010; the company gets good

position and also decreased the level of current liability,

In the year 2011 the position of current liability increased again.

3.1.2FIXED ASSET TURNOVER RATIO

This ratio determines efficiency of utilization of fixed assets and

profitability of a business concern. Higher the ratio more is the efficiency in

utilization of fixed assets. A lower ratio is the indication of under utilization of

under utilization of fixed assets.

Net sales

Fixed asset turnover ratio =

Fixed asset

TABLE 3.1.2

FIXED ASSET TURNOVER RATIO

Year Sales Fixed asset Fixed asset

turnover ratio

2006-2007

469890573

53548239 8.77

2007-2008

936911383

57777244

16.21

2008-2009

513686269

61289963

8.38

2009-2010

1170712641

59811708

19.57

2010-2011 1428622305

60905043

23.45


FIG 3.1.2

FIXED ASSET TURNOVER RATIO

INTERPRETATION

The fixed asset level increased continuously, and the sales level also increased

two years continuously. In the year 2008 the level of sales decreased. After

2008 the sales and fixed assets positions increased, the company maintain the

fixed asset in better way.

0

5

10

15

20

25

1 2 3 4 5

Fixed asset turnover ratio

Fixed asset turnover ratio

3.1.3 PROFITABILITY RATIO:

Profit making is the main objective of business. Aim of every business

concern is to earn maximum profit in absolute term and also in relative terms.

Profit is maximum in terms of risk undertaken and capital employed. Ability to

make maximum profit from optimum utilization of resources by a business

concern is termed as “profitability”.

3.1.3.1. NET PROFIT RATIO

To understand the relationship between net profit and sales, the net profit

is being calculated which indicate the efficiency of the management in

manufacturing, administering and selling the products. This ratio measures the

overall of the overall ability of the firm to turn each rupee of sales into net

profit. The net profit is measured by dividing net profit by sales.

NET PROFIT

NET PROFIT RATIO = * 100

SALES

TABLE 3.1.3.1

NET PROFIT RATIO

Year Net profit (in

cross) Sales (in cross) NP ratio

2006-2007 -12291528

469890573

-2.61

2007-2008 5720348

936911383

0.61

2008-2009 -138095928

513686269

-2.68

2009-2010 74768316

117071264

6.38

2010-2011

399815882

1428622305 27.11


FIG 3.1.3.1

NET PROFIT RATIO

INTERPRETATION

The sugar mill got heavy loss in the year 2006-2007, the level of loss is -2.61.

the next year the profit level increased ,again the company got net loss .in the

year 2011 company improve the sales level ,and reduces the current liabilities

now the sugar mill running smoothly with profit

-5

0

5

10

15

20

25

30

1 2 3 4 5

NP ratio

NP ratio

3.1.4. WORKING CAPITAL TURNOVER RATIO

Working capital of a concern is directly related to sales (i.e.) the current

assets like debtors, bills receivables, cash, stock etc., and change with the

increase or decrease in sales.

Working capital = current asset – current liability

Working capital turnover ratio indicates the velocity of the utilization of

net working capital. This ratio indicates the number of times the working capital

is turned over in the course of a year. A higher ratio indicates efficient

utilization of working capital and a low ratio indicates otherwise.

Sales

Working capital turnover ratio=

Working capital

TABLE 3.1.4

WORKING CAPITAL TURNOVER RATIO

Year Sales (in

cross)

Working capital

(in cross)

Working capital

turnover ratio

2006-2007

469890573

84124572 5.58%

2007-2008

936911383

-45013203 -20.81%

2008-2009

513686269

111949547 4.58%

2009-2010

117071264

511822335 0.22%

2010-2011 1428622305 522968155 2.73%


FIG 3.1.4

WORKING CAPITAL TURNOVER RATIO

INTERPRETATION

In the year 2008-2009 the working capital level increased, compared to 2007-

2008

Because the level of current liability is decreased in the year 2009

The working capital level is decreased in the year 2010. After In the year 2011

the position of current liability decreased again; the company gets good position

and also decreased the level of current liability

3.1.5 QUICK RATIO

This ratio is also termed as ‘acid test ratio’ or ‘liquidity ratio’. This ratio is

ascertained by comparing the liquid assets (I...e. assets which are immediately

convertible into cash without much loss) to current liabilities. Prepaid expenses

and stock are not taken as liquid assets. The ratio may be expressed as:

LIQUID ASSETS

LIQUID RATIO = …………………………..

CURRENT LIABILITIES

TABLE 3.1.5

LIQUID RATIO

Year Liquid assets Current

liabilities Liquid ratio

2006-2007

489,632,891.00

425844350

0.96%

2007-2008 764,951,325.00

822106790

0.98%

2008-2009

634,075,649.00

529397332 0.99%

2009-2010 618,407,439.00

643658065 0.54%

2010-2011 762,352,724.00

695366738

0.63 %


FIG 3.1.5

LIQUID RATIO

INTERPRETATION

In the year 2006 to 2009 the level of liquid ratio is increased, after two years the

ratio of liquidity is decreased, Because the level of current liability is decreased

during the year2010 and 2011.

0

0.2

0.4

0.6

0.8

1

Liquid ratio

Liquid ratio

TREND ANALYSIS

3.2. TREND ANALYSIS

3.2.1. TREND ANALYSIS OF SALES

a = ∑y /n 4891169680/ 5 =978233936

b =∑xy / ∑X2 723587434/ 10 = 72358743.4

y = a + b (x)

Expected sale for the next five year

Y (2011) =978233936+ 72358743.4*6 =1412386396.4

Y (2012) =978233936+ 72358743.4*7=1484745139.8

Y (2013) =978233936+ 72358743.4*8=1557103883.2

Y (2014) =978233936+ 72358743.4*9=1629462626.6

Y (2015) =978233936+ 72358743.4*10=1701821370

Year(x) SALES X=x-A X2 Xy

2006--2007 936911383 -2 4 -1873822766

2007-2008 513686269 -1 1 -513686269

2008-2009 1170712641 0 0 0

2009-2010 1428622305 1 1 1428622305

2010-2011 841237082 2 4 1682474164

TOTAL 4891169680 0 10 723587434

3.2.2. TABLE SHOWING EXPECTED SALES

YEAR AMOUNT(LAKS)

2011 1412386396.4

2012 1484745139.8

2013 1557103883.2

2014 1629462626.6

2015 1701821370

INFERENCE

The forecasted value of sales shows an increasing trend.

FIG 3.2.2

TREND ANALYSIS OF SALE

1 2 3 4 5

2011 2012 2013 2014 2015

1412386396 1484745140 1557103883 1629462627 1701821370

TREND ANALYSIS OF SALE

YEAR AMOUNT(LAKS)

3.3. STATEMENT SHOWING CHANGES IN WORKING CAPITAL

3.3.1. STATEMENT SHOWING CHANGES IN WORKING CAPITAL (2006 –

2007)

PARTICULARS 2006 2007 INCREASE DECREASE

CURRENTASSE

TS

a) Inventories 475183357

366748889 108434468

b) Sundry debtors 20336031 12142262

8193769

c) Cash and bank 18422264 116493235 98070971

Total 513941652 495384386

CURRENT

LIABILITIES

a) Current

liabilities

479708432

425844435

53863997

b) Provision 206266 248478

42212

Total 479914698 426092913

NET WORKING

CAPITAL

34026954 69291473

increase in

Working Capital

35264519 35264519

69291473 69291473 151934968

151934968

INTERPRETATION

The study reveals that the inventories, sundry debtors, provision has

decreased.

Current liabilities have decreased.

The net working capital of the firm has increased in the year2010

3.3.2STATEMENT SHOWING CHANGES IN WORKING CAPITAL 07 - 08


CURRENT

ASSETS

a) Inventories 366748889 733801086 367052197

b) Sundry

debtors

12142262 7271230 4871032

c) Cash and

bank

116493235 3201819 113291416

Total 495384386 744274135

CURRENT

LIABILITIES

a) Current

liabilities

425844435 822106790 396262355

b) Provision 248478 -

Total 426092913 822106790

NET

WORKING

CAPITAL

69291473 -77832655

Decrease in

Working Capital

77074128 77074128

69291473 69291473 480343613 480343613


INTERPRETATION

The study reveals that the sundry debtors, provision has decreased.

Current liabilities, inventories, cash and bank, have increased.

The net working capital of the firm has decreased in the year 2008.

3.3.3STATEMENT SHOWING CHANGES IN WORKING CAPITAL 08– 09


CURRENT

ASSETS

a) Inventories 733801086 537072961 196728125

b) Sundry

debtors

7271230 7835367 564137

c) Cash and

bank

3201819 56589209 53387390

Total 744274135 601497537

CURRENT

LIABILITIES

a) Current

liabilities

822106790 529397332 292709458

b) Provision - -

Total 822106790 529397332

NET

WORKING

CAPITAL

-77832655 72100205

increase in

Working Capital

149932860 149932860

72100205 72100205 346660985 346660985


INTERPRETATION

In the year 2009, there is a steep decrease in inventories

Cash and Bank balance has increased by 533.49cros...

Total current liabilities and provision have to be decreased.

Net working capital has increased in the year.

3.3.4STATEMENT SHOWING CHANGES IN WORKING CAPITAL 09 -10


CURRENT

ASSETS

a) Inventories 537072961 4559872169 4022799208

b) Sundry

debtors

7835367 12238540 4403173

c) Cash and

bank

56589209 64375772 7786563

Total 601497537 4567576481

CURRENT

LIABILITIES

a) Current

liabilities

529397332 643658065 114260733

b) Provision - 1163442 1163442

Total 529397332 644821507

NET

WORKING

CAPITAL

72100205 3922754974

increase in

Working Capital

3850654769 3850654769

3922754974 3922754974 4034988944 4034988944


INTERPRETATION

In the year 2010 almost all current assets and current liabilities has increased.

Net working capital has increased in the year.

3.3.5STATEMENT SHOWING CHANGES IN WORKING CAPITAL 10–11


CURRENT

ASSETS

a) Inventories 4559872169 46567704 4513304465

b) Sundry

debtors

12238540 14812249 2573709

c) Cash and

bank

64375772 651531395 587155623

Sub Total 4567576481 712911348

CURRENT

LIABILITIES

a) Current

liabilities

643658065 695366738 51708673

b) Provision 1163442 378056 785386

Total 644821507 695744794

NET

WORKING

CAPITAL

3922754974 17166554

decrease in

Working Capital

3905588420 3905588420

3922754974 3922754974 4565013138 4565013138

INTERPRETATION

The study reveals that the sundry debtors cash and bank balance, current

liabilities has increased.

The inventories have decreased.

Net working capital has decreased in this year.

CHAPTER – IV

CHAPTER – IV

4.1FINDINGS

The firm’s current ratio is satisfactory. Quick Ratio is in good position.

Liquidity position is not satisfactory.

The firm is higher position in net profit when comparing the years from

2007 to 2010.

The loans and advances of the company had maintain in the same level

for last three years

The working capital position has fluctuating year by year from 2006 to

2011.

The working capital ratio is very high in the year 2006 to 2007 because of

the decrease in current liabilities. Remaining years Show lower range of

working capital.

4.2 SUGGESTIONS

The fixed assets value may be increased up to the level of current assets.

The firm can maintain the increase in current assets value comparing

with current Liabilities.

Working capital has to be maintained, and increase their value.

4.3 CONCLUSION

The study was under taken to understand the working capital

position of subramaniya Siva co-operative sugar mill ltd. The researcher has

made a deep analysis of the financial position of the organization for the past

five years. To fulfill the objectives of the study, selected ratios analysis, and

trend analysis were calculated. The study reveals that the effect should be taken

to improve the sales. The analysis reveals that the overall working capitals

analysis of the company is satisfactory. But the company has more current

liabilities than the current assets leads to less liquidity position of the firm. The

company can utilize that amount in a more productive manner. So to conclude

we can state that the company is marching towards a good position.

BIBLIOGRAPHY

BIBLIOGRAPHY

BOOKS AND WEBSITES

1. Balu.V.Dr.& Sakthivel Murugan.M.Dr., Management accounting,

2. Srivenkateswara publications, Chennai, 2001.

3. James C.Van Horne & Hohn M. Wachowicz, Jr., fundamentals of

Financials management, prentice-hall of India private limited, New

Delhi, 1997.

4. Khan.M.Y., Jain.P.I, Financial management, Tata McGraw-hill

publishing company ltd, New Delhi, 1999.

5. Kuchhal.S.C. Financial management, chaitanya publishing house,

Allahabad, 2001.

6. Mahaswari.S.N. Financial Management Sultan & Sons Publication,

New Delhi, 2004.

7. Maheswari.S.N.Dr., Sultan hand & sons, financial statement analysis,

New Delhi, 1994.

8. Pandy I.M., Financial management Vikas publishing house private ltd,

1989.

9. Prasanna Chandra, Financial management, Himalaya publishing

house, New Delhi, 2000.

10. Sasi K. Gupta and Sharma, Financial Management, Kalyani publisher,

2000.

11. Shiva Kumar.M. & Prakash...M., Guidelines on project report,

Himalayan publishing house, Delhi, 2002.

12. [email protected]

13. www.sscsm.net.in

mailto:[email protected]

http://www.sscsm.net.in/

APPENDIX

SUB

RAM

ANI

YA

SIVA

CO-

OPE

RATI

VE

SUG

AR

MIL

L

LTD.

,

GOP

ALA

PUR

AM.

PRO

FIT

AND

LOS

S

ACC

OUN

T AS

ON

31.03.

2006

Particulars RS

Income:

Sales

Other income

Non-trading income

Release of reserves & provision

Subtotal (A)

Expenditure:

Raw material

Power, fuel, lubricants

Water charge

Process materials

Packing expenses

469890573

2043617

11584024

3497557

487015771

437434632

3923296

226085

3757602

17413525

Other manufacturing expenses

Salaries & wages

Repairs and maintenance

Administrative salaries

Administrative overheads

Interest & finance charge

Excise duty and cess

Selling & distribution expenses

Depreciation

Miscellaneous expenses

Reserves & provisions

Increase (-)decrease(+)in stock

Subtotal B)

2163309

39133064

10012365

11423729

6931061

44185418

29902540

94960

2730502

21337808

206266

-131568863

499307299

Net profit & loss = (A)-(B) -12291528

SUBRAMANIYA SIVA CO-OPERATIVE SUGAR MILL LTD., GOPALAPURAM.

Balance sheet 31-03-2006

Liabilities RS Assets RS

Sources of funds:

Share capital

Share deposit

Reserves & surplus

Subtotal(A)

loan funds:

secured loans

unsecured loan

subtotal(B)

Total liabilities=(A)+(B

182002220

7558723

179436907

Application of funds:

Fixed assets:

Gross block

Less: accumulated depreciation

Net block

Capital work in progress

Subtotal(A)

Investment &deposit (B)

Inventories

Sundry debtors

Cash & bank balance

Loan& advances

Subtotal(C)

Less:

current liabilities & allocation

Net profit & loss

Subtotal (D)

Total assets =(A)+(B)+(C)+(D)

373124042

319575803

53548239

0.00

369017830

81600000

204717355

53548239

730512

475183357

20336031

5678915

18422264

286317355

519620567

479708432

-561144299

81435867

655335185

655335185


PROFIT AND LOSS ACCOUNT AS ON 31.03.2007

Particulars RS

Income:

Sales

Other income

Non-trading income


Subtotal (A)

Expenditure:

Raw material


Water charge

Process materials

Packing expenses


Salaries & wages







Depreciation




Subtotal B)

936911383

5178676

12623304

4966028

959679391

608046479

4854418

303233

5712154

20571878

3310294

46965132

19851640

13482917

9122270

52556510

52419275

1011580

3133558

1767311

248478

110601916

953959043

Net profit & loss = (A)-(B) 5720348




Sources of funds:

Share capital

Share deposit

Reserves & surplus

Subtotal(A)

loan funds:

secured loans

unsecured loan

subtotal(B)


189795600

7481201

179436907


Fixed assets:

Gross block


Net block


Subtotal(A)


Inventories

Sundry debtors

Cash & bank balance

Loan& advances

Subtotal(C)

Less:


Net profit & loss

Subtotal (D)


382099469

324322225

57777244

0.00

376713708

81600000

239911000

57777244

899026

366748889

12142262

116493235

14584536

321511000

509968922

425844435

-555423951

129579516

698224708

698224708



Particulars RS

Income:

Sales

Other income

Non-trading income


Subtotal (A)

Expenditure:

Raw material


Water charge

Process materials

Packing expenses


Salaries & wages







Depreciation




Subtotal B)

513686269

18650888

16954768

287148

549579073

782196542

6060719

344931

10002419

25305541

4190263

54086196

19353949

17644022

10468573

66198081

42890082

2119213

3634748

4919928

0

-361740206

687675001

Nonprofit & loss = (A)-(B) -138095928




Sources of funds:

Share capital

Share deposit

Reserves & surplus

Subtotal(A)

loan funds:

secured loans

unsecured loan

subtotal(B)


201894200

7666133

179688211


Fixed assets:

Gross block


Net block


Subtotal(A)


Inventories

Sundry debtors

Cash & bank balance

Loan& advances

Subtotal(C)

Less:


Net profit & loss

Subtotal (D)

Total assets =(A)+(B)+(C)-(D)

385272952

329520161

55752791

5537172

389248544

81600000

239907000

61289963

958905

733801086

7271230

3201819

32819452

321507000

777093587

822106790

-693519879

128586911

710755544

710755544

SUBRAMANIYA SIVA CO-OPERATIVE SUGAR MILL LTD.,

GOPALAPURAM.


Particulars RS,

Income:

Sales

Other income

Non-trading income


Subtotal (A)

Expenditure:

Raw material


Water charge

Process materials

Packing expenses


Salaries & wages







Depreciation




Subtotal (B)

1170712641

8217643

13703440

108551

1192742275

651882860

4725527

398500

8662646

16469189

3200887

53764134

25110700

19149303

10786132

64873947

53052052

3335839

4304232

0.0

0.0

198258011

1117973959

Profit = (A)-(B) 74768316




Sources of funds:

Share capital

Share deposit

Reserves & surplus

Subtotal(A)

loan funds:

secured loans

unsecured loan

subtotal(B)

current liabilities

Total liabilities=(A)+(B)+(C)

201894200

9313062

179688211


Fixed assets:

Gross block


Net block


Subtotal(A)

Investment &deposit

(B)

Inventories

Sundry debtors

Cash & bank balance

Loan& advances

Subtotal(C)

Less:


Profit &loss account

Subtotal (D)


394766907

335513445

59253462

558246

390895473

160727000

239907000

59811708

1016655

537072961

7835367

56589209

39849342

400634000

641346879

529397332

-618751563

89354231

791529473

791529473



Particulars RS

Income:

Sales

Other income

Non-trading income


Subtotal (A)

Expenditure:

Raw material


Water charge

Process materials

Packing expenses


Salaries & wages







Depreciation




Subtotal B)

1428622305

53300889

11577445

124360

1493624999

705162116

4291297

399662

5528634

20493494

3084868

64027477

18623757

27072184

11003665

65532819

65187774

701674

6782326

18053055

1163442

76700873

1093809117

Profit = (A)-(B) 399815882




Sources of funds:

Share capital

Share deposit

Reserves & surplus

Subtotal(A)

loan funds:

secured loans

unsecured loan

subtotal(B)

current liabilities

(C)

total liabilities

=(A)+(B)+(C)

201894200

9313062

180592882


Fixed assets:

Gross block


Net block


Subtotal(A)

Investment &deposit

Current assets, loans &

advances: (B)

Inventories

Sundry debtors

Cash & bank balance

Loan& advances

Subtotal(C)

Less:


Profit &loss account

Subtotal (D)

Total assets = (A)+(B)+(C)-

(D)

404541321

344120218

60421103

483940

391800144

160727000

239902000 60905043

766085

455982169

12238540

64375772

43783919

400629000

1155480400

643658065

218935681

424722384

792429144

792429144

Education

Submit final report on working capital mgt