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    CONTENTS

    CHAPTER-1

    INTRODUCTION

    CHAPTER-2

    INDUSTRY PROFILE

    COMPANY PROFILE

    CHAPTER-3

    THEORETICAL FRAME Work

    CHAPTER-4

    DATA ANALYSIS & INTERPRETATION

    CHAPTER-5

    SUMMARY

    SUGGESTION

    ` FINDINGS

    CONCLUSION

    BIBLIOGRAPHY

    ANNEXURES

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    CHAPTER - 1

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    INTRODUCTION

    Finance is one of the basic foundations of all kinds of economic activities. Financial

    management is one integral part of overall management, it is not a totally independent area. It

    is concerned with the acquisition, financing and management of assets with some overall goal

    in mind. Financial management is important because it has an impact on all the activities of

    financial management. The basic objective of financial management is to maintain the liquid

    assets and maximization of the profitability of the firm, efficient management if every business

    enterprise is closely linked with efficient management of the finance. Maintenance of liquid

    assets means that the firm has adequate cash in hand to meet its obligations at all times. A

    business firm is a profit seeking organization. Profit maximization is also well consideration to

    be an important objective of financial management.

    Financial management is mainly concerned with the proper management of finance function

    risk. Cost and control considerations are properly balanced in a given situation and there is

    optimum utilization of funds. Financial management emerged as a distinct field of study at the

    turn of 20th century

    . Finance management as an integral part of overall management and is not atotally independent area. It draws heavily on related disciplines and field of study such as

    economics, accounting, marketing, production and quantitative methods. It helps in profit

    planning, capital spending, measuring costs,

    Controlling inventories, accounts receivable etc. it is essentially helps in optimizing the financial

    from a given input of funds.

    SIGNIFICANCE OF FINANCIAL MANAGEMENT:

    A study of management with particular reference to the working capital management

    in the large public sector undertaking is a challenging task and Endeavour in this direction is

    to analyze the working capital balances management, receivables and inventory

    management. Working capital is the amount required to meet day to day operation at the

    organization. An absence of this makes the functioning of the organization blind. A proper

    study on working capital management results in prevention of mismanagement and

    misutilization of funds

    NEED OF STUDY

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    Chodavaram co-operative sugars limited, govada is a one of the major public

    sectors in India. Shipping plays a major role in the economic life of a nation and

    it is a key element in the countrys progress. The study enables us to know to

    what extent theoretical assets can be put in practice. Working capital gives an

    idea to the investor as well as the management of a firm about the functioning

    of organization. Preparation of a separate statement of working capital, one can

    know or plan about the day to day expense. Working capital is the difference

    between the current assets and liabilities this working capital must be adequate

    not too much and not too low. And optimum level of working capital is a good

    significance to the progress of the organization.

    A study of working capital management in chodavaram co-operative sugar

    limited, govada gives out the exact idea of working capital because it is an

    organization with huge production and which also requires huge funds to meet

    its day to day expenses it is an organization with continuous production i.e.

    procuring.

    OBJECTIVES OF STUDY

    The present study working capital management of M/S. chodavaram co-

    operative sugars ltd, govada is intended to analyze the practice in working

    capital management in chodavaram co-operative sugars ltd, govada. The

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    efficiency of the working capital management is determined by the efficiency

    administration on its components.

    The main objectives of this are depicted below.

    1. To know the process of working capital management of chodavaram co-

    operative ltd, govada to study the cash management receivable

    management and inventory management.

    2.

    To study the ability of chodavaram co-operative sugars ltd, Govada to

    meet its obligations

    3. To know the extent to which Chodavaram co-operative sugars ltd, govada

    excitingly using assets in its operation

    This study is to determine the efficiency and effectiveness of the

    management in each segment of the working capital.

    METHODOLOGY OF STUDY

    The methodology of collection of data is important part of the study the sources

    of data are of two parts

    1.

    Primary sources

    2.

    Secondary sources

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    PRIMARY SOURCES: - discussion with the staff and executives of the

    organization of the purpose of collecting information relevant so the study

    which serves as the primary data to this study

    SECONDARY SOURCES: - this study has been done by gathering

    information from various sources such as annual reports published by

    chodavaram co- operative sugars ltd, govada

    LIMITATIONS OF THE STUDY

    By observing financial performance of M/S Chodavaram co-operative

    sugars ltd, govada, whole shipbuilding industries performance cannotbe judged

    1.Limited time given to study about their aspects

    2.The duration of 30 days allotted for this is insufficient to collect

    data comprehensively for this study

    3.The study is conducted with the limited data available and

    analysis was done accordingly

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    4.The study is conducted with the time periods and analysis

    made accordingly

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    CHAPTER - II

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    INDUSTRY PROFILE

    India is one of the sugar producing and consuming countries in the world

    the sugar industry plays vital role in rural development areas and provides

    direct and indirect employment in the country India emerged as the largest

    producer of white sugar in the world

    The central government has already de-licensed the sugar production, the

    propose to decontrol the release mechanism by introducing forward and future

    trading in sugar. The decontrol is possibility of reduce in sugar price

    The sugar industry has a unique place in Indian economy and rural

    development because of employment and provisions of raw materials to other

    industrial this industry has been providing substances to 5.5 lakhs workers and

    sustaining about 4.50 corers agriculturists its total capital investment amounts

    to 1560 corers

    The sugar industry has a unique place in Indian economy and rural

    development because of its multiple contributions in terms of employment and

    provisions of raw materials to other industries the sugar industry as the second

    largest agro based processing industry thus occupies a viral role among the

    consumer industries in the country and ranks next only to cotton textile

    industry in terms of contribution to the next value added by manufactures it

    takes the third place among the four major sugar producing counties in the

    world the three being U.S.S.R (C.I.S) RRAZIL and CUBA/ the sugar industryin the recent years had started to export sugar these by earning valuable

    foreign exchange.

    According to World Bank of India is second largest producer of

    sugarcane in the world in year was India is the largest producer of sugar in the

    world the sugar industry is second largest.

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    Agro based processing industry in India having certain unique features if

    its own it is a seasonal industry based on purchase raw materials namely

    sugarcane the by-product of the industry have opened up fresh areas of

    enterprise I device direction molasses and important by-product is utilized for

    production of alcohol and downstream chemicals bio-gases another important

    by-produces apart from meeting the fuel requirement of industry offers the

    potential to general additional power supply to the grid

    Further its offers tremendous potential to make the company self-

    sufficient in its requirement of paper and new prints there are now 435 sugar

    factories in the country 69 in the public sector and 122 in the private sector and

    244 in cooperative sector

    CF or the smooth running of the industry government has appointed a

    committed called GYAN PRAKASH committee and improvements there are

    organization like

    ISMA (Indian sugar mill association)

    NFCSF (national federation of cooperative sugar factories)

    ISGIEIC (Indian sugar general export Import Company)

    INTRODUCTION TO SUGAR INDUSTRY

    Sugar industry is very important to the India national economy because of its multiple

    contribution in the shape of employment and provision of raw material to other industries.

    India is the second largest producer of sugar cane next to brazil the later produces

    primarily raw sugar while India produces almost exclusively white sugar crystals in India apart

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    from sugar other traditional sugar cane sweetness khanda sari and gur also produced for the

    rural markets taking all sweetness sugar khanda sar i and gur india is worlds largest producer of

    sugar followed by the brazil in the second place there are 493 sugar mills operating in India with

    in an aggregate installed capacity of 16.2 million tomes of these 152 are in the private sector 21

    in the cooperative sector and 70 in the public sector

    the sugar industry had been totally regulated and controlled for the past 50 years sugar

    declared on essential commodity under the essential commodity act 1955 and plethora oflegislations and control orders regulate almost every aspects of the industry with the objective of

    increasing production and also making available sugar at affordable process to the consumer

    controls included licensing administrated price for sugar cane reservation of cane areas control

    over the process of sugar and restriction of sale movement of the bye product molasses were

    controlled for long time

    Under the sugar cane control order statutory minimum price for cane very of commission

    on agricultural cost industry the crushing seasons ranges between depending on the location

    PRE - 1995 ERA

    Until 1995 the industry was totally regulated and totally regulated and to certain extent

    protected sugar was scheduled industry and for setting up new units for expanding existing unit

    license was required under act

    a review of industry's growth since 1950 reveals hat not withstanding and controls and

    regulations the industry did grow substantially while the number of factories rose from 139 in

    1950 to 423 in 2002 -03 the installed capacity increased tenfold from 1.67 million tons to 16.5

    million tones sugarcane production from 69.2 million tones to300 million tons in 2001 - 02 sugar

    production swelled from 1.1 tons to 18.6 million tons during the same period

    Imports of sugar were not generally permitted and when imports were necessary the

    government was the sold importer and availability of foreign exchange was a constraint exports

    were canalize and were affected in years of surplus stocks

    POST - 1995 SCENARIO

    Even while repining partial control and dual pricing the government has been initiating in

    since 1995 a number of measures as part of the process of liberalization to UN least the potential

    of the industry of significant initiatives are

    The molasses control under which the process movement and distribution of molasses

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    were all controlled was rescinded enabling the industry to realize the full value of molasses and

    setup molasses based from down steam industries

    Sugar was de licensed and creation of new capacity as well as expansion of existing

    capacity was freed from licensing the only constraint was availability of sugar cane

    The export promotion act was replaced and exports of sugar were decimalized enabling

    mills to undertake exports on their own and completer directly in international market

    The government has progressively reduced the levy obligation imposed a producers from

    as high as 65% in early 80's to 10% of effective march 2003

    Plan period Annual sugar (million tons)

    First 5 year plan 2.03

    Second 5 year plan 2.54

    Third year plan 3.56

    Fourth 5 year plan 4.70

    Fifth 5 year plan 5.7

    Sixth 5 year plan 7.64

    Seventh 5 year plan 10.20

    Area under sugar cane production of sugarcane number of factories and

    total sugar production during the period of 2003-04 to 2013 - 14

    year Area undersugarcane

    (thousand

    hectors)

    Production of

    sugar cane

    (000 Tones)

    Production

    (000 tones)

    Factories

    (numbers)

    2003-04 1641 58710 1077 135

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    2004-05 1707 69220 1101 138

    2005-06 2560 110544 3028 173

    2006-07 2615 126368 3740 216

    2007-08 2667 154228 5147 314

    2008-09 3686 241046 12046 385

    2009-10 3844 256995 13404 392

    2010-11 3618 228000 10609 393

    2011-12 NA 227000 9800 NA

    2013-13 NA 245600 12200 417

    2013-14 NA 256500 12500 436

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    TABLE SOURCE

    Indian institute of public opinion monthly commentary of Indian economic condition due

    2004 so and the economic survey 2004-05

    IMPORTS & EXPORTS OF SUGAR

    in view of cost of cane and sugar production in India it could not complete with other

    favorable countries and to honor commitments and maintain international standard quality the

    sugar exports begin in the year 1958 under the sugar export promotions act up to middle of 1961

    government did not subsidize losses on exports and sugar factories got prorate payment however

    the view of substantial quality of sugar in later year's government stopped subsidizing these

    losses the export policy has been largely influenced by the need of earning foreign exchange

    During shortages of fall in the production of sugar government registered

    Companies like:

    1) STC (state trading corporation)

    2) M.M.T.C. (minerals and metals trading corporation are the saying agencies for our country)

    INDIA SET TWO INCREASE EXPORTS

    India the worldssecond largest sugar producer hopes to step exports this year buoyed by

    fright subsidies and growing pressure on mills reduce socks."VINAY KUMAR" Managing director of

    national federation of cooperation of sugar factories (NFCE) said he was confident overall Indiansugar exports would reach at least 1.5 million tons in 2003-04 compared with 1.1 - 1.2 MT in

    2002-03

    sugar mills in Maharashtra have recently finalized a deed with private traders to export

    7000 tons of white sugar most of which will go to Indonesia since December the state has struck

    deals to ships some 330000 tones sugar 2002-03 Maharashtra has also request that federal

    government should introduce a subsidiary in us $ 20 alone to sugar factories in the firm of ocean

    fright

    PROBLEMS OF SUGAR INDUSTRY IN INDIA

    EXCESSIVE CONTROL

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    The industry in suffered by the changing governments polices the

    government has no fixed policy regarding the price and distribution of

    sugar

    The inefficiency and economic nature of production in sugar mills

    to yield the short crushing season and the high price of sugarcane andheavy excise duties by the government and responsible for the high

    cost of production of sugar in India

    UNDER UTILIZATON OF BIO - PRODUCTS

    In sugar production we get two by products molasses and biogas

    while molasses can be used in alcoholic preparation these factories are

    not well developed in India and the bio gas can be used in paperindustry

    SHORT CRUSHING SEASON

    Although the land in unutilized throughout the years crushing

    season is only 3 to 4 months in a year hence factories have to be closed

    for the remaining period this is making it uneconomic too

    OBSOLESCENCE

    Most of the factories in the private sector were setup tie to 6 decades ago

    their machinery had by now dilapidated the cost of production of such units is

    unduly high owing to less mechanical efficiency and more down time it will

    require money for modernization of such factories

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    TECHNONOGY

    The level of technology in the India sugar industry is quite high and a

    number of developing counties have borrowed Indian sugar technologies

    unfortunately however may of Indian factories had been up in early 30s and have

    become absolute for these the need of the hour is modernization rehabilitation

    and expanding also attention needs to be paid to cane development

    NEVER OUTPUT THINGS

    Over production due to cyclical nature and seasonal conditions and

    cultivation of average of sugar cane the functions in the production of sugar cane

    are major problem of the day

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    WORLD SUGAR PRODUCTION 201314

    Country wise estimates of production in major producing countries

    In the year 2013-14 together with comparative for pervious 2 years

    Country 1000MTVR 1000MTVR 1000MTVR

    Brazil 19871 17036 20390

    India 19840 20109 7420

    China 9240 6739 7240

    U.S.A 7015 7651 7910

    Thailand 6487 5304 5833

    Mexico 5140 5226 4985

    Australia 4860 4382 5630

    Germany 4050 4764 4783

    France 4007 4601 4915

    Cuba 3728 3628 4120

    Other 50836 50539 50469

    total 135066 123999 136238

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    STATE WISE SUGAR PRODUCTIONS

    DATE 2009-10 2010-11 2011-12 2012-13 2013-14

    A.P 859 772 782 1113 1182

    Gujarat 1130 967 890 1025 1142

    Karnataka 1263 871 959 1372 1577

    Maharashtra 5394 3445 3847 5337 6503

    UP(east) 1777 1632 1600 1552 1843

    UP (west) 1043 1058 881 783 1210

    UP (central) 1559 1393 1441 1394 1503

    Tamilnadu 1671 1083 1266 1774 1768

    Others 1755 1684 1189 1184 1473

    In india 16451 12905 12855 15539 18200

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    NUMBER OF SUGAR FACTORIES IN OPERATING IN INDIA AND

    AVERAGE CAPACITY (TDC)

    YEAR No of units Average

    capacity(TDC)

    2001-02 320 17122002-03 321 1779

    2003-04 326 1779

    2004-05 339 1834

    2005-06 342 1865

    2006-07 354 1862

    2007-08 357 18882008-09 365 1925

    2009-10 377 2036

    2000-01 385 2088

    2001-02 392 2167

    2002-03 393 2325

    2003-04 394 23882004-05 408 2483

    2005-06 416 2531

    2006-07 412 2656

    2007-08 400 2863

    2008-09 427 2855

    2009-10 423 30492010-11 436 3203

    2011-12 434 3285

    2012-13 453 3343

    000 TON RAW VALUE

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    2009-10 2010-11 2011-12 2012-13 2013-14

    Western

    Europe

    21266 18596 21242 22301 23460

    Eastern

    Europe

    7344 7077 7081 7172 7197

    Africa 9931 9508 70083 9381 10457N & C America 19577 20932 21411 21955 22499

    South America 31825 29764 25042 25155 25307

    Asia 53293 47197 42739 42581 42750

    Oceania 5675 5467 5024 5481 5838

    total 148845 138541 132012 134026 137508

    WORLD PRODUCTION, CONSUMPTIONAND XTOCK OFCENTRIFUGAL (000 TON RAW VALUE)

    YEAR World

    population

    World

    consumption

    Ending stock Stock % of

    consumption

    20001-02 111681 112637 38035 33.77

    2002-03 116126 115167 38589 33.512003-04 125871 117953 46221 30.19

    2004-05 124104 121063 47018 38.84

    2005-06 128929 123300 50748 41.16

    2006-07 134641 125561 57289 45.63

    2007-08 124026 128309 61638 48.04

    2008-09 132012 121426 61853 47.06

    2009-10 138541 135924 62385 45.90

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    WORLD SUGAR BALANCE

    particulars Season Change

    2008-09 2009-10 Million

    tons

    Percentage

    Production 146.076 143.784 (+)2.292 1.60

    Consumption 147.982 144.859 (+)3.033 2.09

    Surplus/deficit (-)1.816 (-) 1.076 (-)0.741 68.90

    Importdemand

    42.882 40.758 (+)2.124 5.20

    Export

    availability

    43.643 41.607 (+)2.036 4.90

    Stock /

    consumption

    ratio

    41% 44%

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    GROWTH OF SUGAR INDUSTRY

    There were only twenty nine factories in India during the year 1931

    production granted to the industry in 1931 brought tremendous growth in the member of

    location the number of factories in operation had grown from 29 to 140 in 1950-1951 out of

    which 110 factories were in northern part of India during the next decade the number factories

    increased to 174out of which 116 factories has grown from 200 in 1994 to 417 in 1994 to 1995 of

    which 75% of the factories are located in the northern India the industry as predominantly

    localized in Uttar Pradesh

    particularly in the districts of Meerut Saharanpur bijous Bareilly muzaffarnagar

    moradabad and ramput next utta pradesh the industry is mainly responsible for bringing about

    location changes in industry further the sugar industry has received greater impeders from the

    completion of numerous irrigation projects like the lrwin canal in mysore (karnataka) n nizam

    sugar and tungabhadra projects in madras added to this the discriminatory of the growth of the

    industry in the south

    given transport facilities and access in necessarily dependent upon the availability of cane

    in the region this concentrated is sustained from observation of the trend of size established in

    different regions of this country in relation to availability of cane comparatively the size of thesugar mills in Uttar Pradesh Bihar and Maharashtra where continuous availability of cane is

    assured has observed to be large rant of production to the industry in 1931 also helped the units

    to increase their size the average per day crushing capacity of the industry increased

    tremendously from 481 tons per day in 1932 to 1365 ton it has been ground by the planning %

    commission that the cane crushing capacity of sugar factories working in our country various

    from 220 tons 3200 tons per day in Uttar Pradesh and Bihar majority of the sugar mills have a

    cane crushing capacity of 2500 tons sugar cane per day a factory with a crushing capacity of 2500

    tons of sugarcane per day is considered to be an economical unit the present day working

    conditions

    the industry growth since 1950 reveals that now with standing the control and regulations

    in the industry did grow substantially while the no of factories raised from 139 in 1950-51 to 423

    in 2000-2001 the installed capacity increase tenfold from 1.67 million to 16.5 million tons

    sugarcane production from 69.2 million tons to 300 million tons in 1999-2000 sugar production

    swelled from 1.1 million tons to 18.6 million tons during the same period

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    Scenario of sugar industry

    Gone are those days when industries and its participants were highly produced with control and

    protection policies in the process of liberalization of economic system decontrolling policies like de controlof sugar steel fertilizers etc.

    sugar industry is highly subsidized so far it also effects with new economic power the demand for

    sugar has been increasing due to increase in its consumption out of charging habits of the people including

    common man and the need of the sugar also demands the sugar industry to meet the internal is also same

    profit of its production is to be exported to ear foreign currency with in changing market

    sugar cane growers are facing inventory problems transportation problem marketing problems

    many of the growers an illiterates who are not competed to grow sugar cane crop on scientific lines the

    financial problem is also other important one with which they cannot take decisions in time to improved

    quality and productivity high transportation cost prices are not increasing in proportion to the increase in

    case of production due to inflationary tendencies

    The sugar producing unit purchases sugarcane from the growers therefore management of these

    units has to adopt marketing concept that is the customer orientation

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    THE CHODAVARAM CO-OPERATIVE SUGAR LTE. GOVADA

    PROCESS FLOW SHEET

    CANE FROM LORRIES / CRAFTS

    CANE WEIGHMENT

    WEIGHTED CANE

    CANE CARRIER

    CANE PREPARATRY DEVICES

    (CANE LECELLER, CANE CUTTER & FIBRIZER)

    PREPARED CANE TO MILLS

    JUICE

    BAASSE

    JUICE HEATERS GEATED TO 70

    SENT TO BOILES AS FUEL

    STEAM BENERATION

    JUCE SULPHITOR

    (TREATED WITH MILK OF LIME + SO2 GAS)

    PH: 7.0 - 7.2

    JUCE HEATERS HEATED TO 102 OC

    CLARIFIER

    CLEAR JUCE MUDDY JUCE

    EVAPARATORS VAC. FILTERS

    SYRUP FLTRATATE JUCE TAKEN BACK

    FILTER CAKE SOLD AS MANEURE

    SYRUP SULPHITOR TO WEIGHTED RAW JUCE

    (TREATED WITH SO 2 GAS)

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    COMPANY PROFILE

    HISTORICAL BACK GROUND & AREA OF OPERATION

    The chodavaram cooperative sugars ltd was in corporate in the year 1955

    With an object of establishing a sugar factory of 1000 TDC at govada village in

    Corporative sector at the cost of 150 lakhs the factory started its commercial

    Production in the year 1962-63 initial loss were sustained completely were

    Wiped out by 1972 -73 and the factory made profit till 1976 in the year 1976

    Expansion of the crushing capacity of the plant was taken up at a total cost of Rs.

    130.57 lakhs the crane crushing with the expanded capacity of 16000 T.C.D

    Started from the year 1978 keeping in view the availability of cane the factory of

    Taken up expansion of its crushing capacity to 1500 TDC in the year 1988 with an

    Out lay of rs 8.5 cores and expansion was completed by March - 1991

    The society covers vast area of 2658 villages in 14 manual of

    Visakhapatnam district out of whom 80% are small and marginal formers the

    Total average in the area of operation of factory is 30,000 acres out of which cane

    Grown in about 20,000 acres is agreement to the factory as the members are

    Limited to that extent 60% of the factory zone is under fain fed conditions

    Basically the factory is and agro based seasonal industry the raw material of the factory

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    for the production is sugar cane there are growers from 265 vil lages which are supplying cane to

    the factory it starts its operation most probably during the first week of December and ends with

    April/May depending upon the availability of sugar cane for crushing

    Best technical efficiency awarded to for the session of 2005-06 presents by the national

    federation of cooperative sugar factory ltd. New Delhi

    a. In chodavaram cooperative sugars the following productsmanufacturing

    b. sever

    c. sprit

    d. bio earths

    e. bio gas

    f. co generation of power

    In season production process of sugar will be alone and unseasonal the production

    process of sugar will not be done the company main product is sugar and the substitute product

    is molasses from which spirit and extra neutral alcohol are obtained

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    According to the byelaws the society is meant for the upliftment of the cane

    grower's members in factory zone the ideology behind setting up cooperative sugar

    factory is to rais the living standard of farmers and production from idle men

    private sugar factory owners and promoting their well being

    ideally at cooperative society should be organized on the principal of

    voluntary service and it should provide maximum participation to its membershipin decision making in benefit and evolution of performance a popular definition of

    the term cooperative is that is associations of persons are house hold usually of a

    limited means who have agreed to work together on a continuous basis which is

    jointly control and whose cost risk and benefits are equally among the members

    equality social justice and self-helped of the major concerns of the co operative

    MEMBERSHIP AND SHARE CAPITAL

    the society is having around 20,000 members on its registers the authorized

    share capital of the society under y law no 6 of the byelaws of the society is rs 600

    cores as on 31-03-2006 the society has paid up share capital of rs 164 cores as on

    31-03-2006 the society has paid up share capital of rs 164 cores from the share

    members and government of andhrapradesh has

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    Contributed an amount of rs 40 lakhs towards their share in the capital structure of

    society

    LOCATIONAL ADVANTAGES OF THE CHODAVARAM CO-OPERATIVE SUGAR LTD TO

    BE SET UP AT GOVADA

    the entire of operation has been a traditionally sugar cane growing belt since

    so many decades a part of from being located beside river belt in its centrally

    located in the cane growing regions free communication facilities are available

    through out of the zone to draw cane farmers in the required time more that 60%

    of growers are within the radius of 10 mile there is an advanced mode of

    transpirations of output though road ways

    OBJECTIVES

    the objective of society shall be promote the economic interisland members

    by encouraging proper development of agriculture industries on support time and

    through agriculture with special attention to and preference to farmers as far as

    possible the advantages of scientific agricultural and production and the benefits of

    large scale industries and for the said purpose it shall be competent to society

    1. To establish a factory for the manufacture of sugar joggery and other

    subsidiary by products and allied industries and for the purpose

    2. A) to raise share capital and borrow funds either on the security of the property

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    of the society otherwise cooperative societysgovernment industrial financial

    cooperation and other sources

    b) To purchase to take on lease or otherwise acquire land houses and other

    buildings light railway siding may be necessary or expedient form purpose of any of

    them

    c) To purchase and install the machinery

    d) To purchase form members or non-form members sugar cane or other

    than raw material and to undertake cultivation of sugar cane

    e) To own or hire transport vehicles in the business of the society

    3. To undertake measures for the development sugarcane including supply of

    seed fertilizers agricultural implements irrigation facilities and other product

    requirements including agriculture credit and to provide technical advices on

    improved cultivation methods

    4. To hire or purchase land for purpose of undertaking research and to take

    necessary measures to disseminative knowledge to members

    5. To purpose or take hire tractors boring sets and other agricultural

    implements and give them members

    6. to issue loan to members for productive and other similar purposes

    7. To undertake such activities as are incidental and among conductive

    members to the development of sugar cane sugar and allied industries

    MANAGING DIRECTOR

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    The managing director is the chief executive of the sugar factory he looks

    after each thing that is going on the factory he is the key of the organization his

    responsibilities are tremendous millions of vc may be made or lost by this decisions

    the m.d. formulates the factory policy in cane procurement manufacturing factory

    operation purchases and sales for the consideration of board of direction and when

    approved ensures their executive through directors of departmental needs he

    values and comments of schemes and suggestions coming from department head

    for guidance to board of directors he shall be fully informed about the factory

    overall activities and must instructed and guide departmental needs in their work

    he is accountable to chairman and board of directors

    DEPARTMENTS

    The organization has 5 departments

    1) Engineering department

    2) Manufacturing department

    3) Cane department

    4) Administrative department

    5) Accounts department

    ENGINEERING DEPARTMENT

    this department is headed by the chief engineer the plant and machinery of

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    the factory or under the control of chief engineering he formulates the techniques

    of current and economic crushing of sugar cane shunting to machinery and

    equipment correlated with the variety of cane quality he is responsibility for

    keeping day to day check on milling boiler and power house performance steel ad

    power consumption and various sections of the factory personally direct repairs

    over handling and erections of major equipmentshe periodically reviews

    engineering store stock position and furnishes indents for purchase for his

    departmentscivil section boilers millhouse electrical and main parts of the

    engineering section such as rehabilitation modernization layout and replacement

    labor and staff policy to management and ensure that all factory regulations

    MANUFACTURING DEPARTMENT

    this department is held by chief chemist he is responsible for overall

    operations of sugar manufacturing side of factory from juice to final bagging ofsugar the department is to see the food quality of sugar production he has to

    coordinate the work of manufacturing department with that of the engineering

    and cane department the department is consists

    1.Chief chemist

    2.Dy. Chief chemist

    3.Manufacturing chemists

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    4.Lab in charge

    CADRE WISE EMPLOYEES IN CHODAVARAM COOPERATIVE

    SUGAR LTD. GOVADA AS ON 01-08-2009.

    SL NO Name of the category permanent seasonal total

    1 Deputy cadre 02 -- 02

    2 Supervisorya 03 -- 03

    3 Supervisoryb 07 -- 07

    4 Supervisory - c 08 -- 0

    5 Highly skilled 04 -- 04

    6 Skilleda 33 03 36

    7 Skilledb 07 05 12

    8 Semi-skilled 22 17 40

    9 Unskilled 14 17 31

    10 Clerical gradeii 03 -- 03

    11 Clerical gradeiii 13 -- 13

    12 Clerical grade - iv 39 -- 39

    total 155 42 197

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    CANE DEPARTMENT

    The chief agricultural officer holds this the duties of the chief agricultural

    officer can be divided into

    1.

    Chief agricultural officer

    2.

    Dy. Chief agricultural officer

    3.

    Agricultural officer

    4.

    Filed man

    There are 5 assistant agricultural officers and 16 field men

    working under the guidance of the chief agricultural officer

    the duties and responsibilities of a field officer and

    agricultural officer to develop sugar cane and draw cane

    uniformly they have to buildup proper records such a cane

    register area under sugar cane variety etc. and to inspect the

    cane plots regularly and also to meet the cane growers and

    issue proper instructions to them

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    In the absence of both managing director and administration

    officer the board shall make necessary arrangements with the approval

    of the register for the conduct of the business society during their

    absence

    ACCOUNT DEPARMENT

    Chief accounts officer heads the account department he is

    responsible for the following departments

    1.General accounts

    2.Stores accounts

    3.

    Cane accounts

    His duty involves preparation of balance sheets and

    correspondence with their investors merchants banks

    financial institutions etc., he is to maintain up to date all

    account books of the factory and balance sheet cost reports

    periodical budgets cash flow statements and all income tax

    returns and formalities he has to attend all work relating tomoney transaction advice management through the

    managing director and the financial implications of any of

    scheme of expenditure

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    ADMINISRATION DEPARTMENT

    This department consists of

    the administrative officer heads this department he is next to managing

    director he shall exercise such powers and perform such as may be interested to

    him from time to time by the managing director under the administrative officer 5

    departments which are directly responsible for him they are saled and purchase

    manager labor welfare officers medical officer officer manager store kepper etc. in

    addition to the above activities he looks secretarial department and generaladministration the department also develops good relationship between

    management and trade unions the department is back bone some of the whole

    organization

    Administrativeofficer

    Store keeperOffice

    manager

    Medical

    officer

    Labor welfare

    officer

    Sales & purchase

    officer

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    ORGANIASTIONAL STRUCTURE

    PERSON IN CHARGE

    MANAGING DIRECTOR

    NGINEERING

    EPARTMENT

    MANUFACTURING

    DEPARTMENT

    CANE

    DEPARTMENT

    CHIEF

    NGINEERING

    ADMINISTRATION

    DEPARTMENT

    ACCOUNTS

    DEPARTMENT

    CHIEF

    CHEMIST

    CHIEF

    AGRICULTURAL

    OFFICER

    CHIEF

    ACCOUNT

    OFFIER

    ADMINISTRATION

    OFFICER

    EPUTY CHIEF

    NGINEERING

    DEPUTY CHIEF

    CHEMIST DEPUTY CHIEF

    AGRICULTURAL

    OFFICER

    SALES &

    PURCHASE

    MANAGER

    LABOUR

    WELFARE

    OFFICER

    GENERAL

    ACCOUNTAN

    (BOILING )

    ASST ENGINEER

    (WORK SHOP)

    ASST ENGINEER

    Mft

    CHEMISTAGRICULTURAL

    OFFICER

    OFFICE

    MANAGER

    CANE

    ACCOUNTNA

    MATERIAL

    ACCOUNTEN

    CIVIL

    UPERVISOR

    LAB IN

    CHARGEFIELD MAN

    STORE

    KEEPER

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    VISION

    to emerge as leading sugar manufacturing unit in the state and sustain

    A.V.V.R sugars ltd. position as are of the most valued corporation achieving world

    class performance creating growing value for Indians economy and company's

    stake holders

    MISSION

    1. To achieve international standards of excellence in all aspects of sugar

    manufacture and diversified business with focus on customer

    2. To maximize creation of wealth value and satisfaction for the stake holders

    3. To attain leadership in developing adopting and assimilating state of the

    art technology for competitive advantage

    4. To cultivate high standards of business ethics and total quality

    management for a strong corporate identity and brand equity

    OBJECTIVES

    Agricultural production and the benefits large scale industries and for the

    said purpose it shall be competent to the society

    1. to purchase from members or non-members sugarcane and or other rawmaterials and also to undertake cultivation of sugarcane

    2. To construct or take on rent go downs at the place of manufacture as well

    as outside for storage and sale of the products

    3. To do all other things incidental to or necessary for the establishment and

    running of the factory

    4. To process and sell sugar molasses and other by-products produced to thebest advantage

    5. To undertake measures for the development of sugarcane including supply

    of seed fertilizer agricultural implements irrigation facilities and other production

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    CHAPTER - III

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    INTRODUCTION

    finance plays an important role in any organization the dictionary meaning of

    finance is money affairs or the art of managing or administrating the public moneyhence the name financial management could be referred to as money management

    the function of finance is not arranging funds for the business organization but also

    it includes planning forecasting of cash flow both receipts and payments raising the

    funds allocations of funds and financial control

    FINANCIAL FUNCITIONS

    the functions of any business organization include finance marketing

    personal and production these four functions are interlinked and cumulatively they

    lay greater stress on management for this successful endeavor among the four

    "financial function" has a dominant role through the ages it has been said that

    finance is the life blood of business it is the most primary function that starts laying

    its influences from the very beginning of the entrepreneurial ideal its presence is

    felt in very bit of organizational functioning

    FINANCIAL MANAGEMENT

    financial management involves the management of finance function it is

    concerned with the planning organizing directing and controlling the financial

    activities of an enterprise it deals mainly with raising funds in the most economic

    and suitable manner using these funds as profitably as possible planning future

    operations and controlling current performance and further developments through

    financial accounting cost accounting budgeting statistics and other means it is

    continuously with achieving an adequate rate of return on investment as this is

    necessary for survival and the attracting of new capital

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    FINANCIAL STATEMENT ANALYSIS

    INTRODUCTION

    accounting process involved recording classifying and summarizing various

    business transactions the aim of maintaining various records is to determine

    profitability of the enterprise from operation of the business and also to find out isfinancial position financial statements are in term reports presented annually and

    reflect a division of the life of and enterprises in to more or less arbitrary

    accounting period more frequently a year the financial statement is an organized

    collection of data according to logical and consistent accounting period more

    frequently a year the financial statement is an organized collection of data

    according to logical and consistent accounting procedures its purpose is to convey

    of a business firm

    Definitions

    According to john n.myer "the financial statements provide a summary of the

    accounts of a business enterprises the balance sheet reflecting the assets liabilities

    and capital as on a certain date and the income statement showing the results of

    operations during a certain period".

    The term financial statement generally refers to following basic statements

    1. The income statement

    2. The balance sheet

    3. A statement of retained earnings

    4. A statement of changes in financial position

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    Income statement

    the income statement (also termed as profit and loss account) is

    generally considered to be the most useful of all financial statements .it

    explains what has happened to a balance sheet dates the nature of theincome which is the focus of the income statement can be well

    understood if a business is taken as an organization that uses inputs to

    produce output

    Balance sheet

    it is a statement of financial position of a business at a specified

    moment of time it represents all assets owned by the business at a

    particular moment of time and the claims of the owners and outsiders

    against those assets at that time the important distinction between as

    income statement is for a period while balance sheet is on a particular

    date

    FINANCIAL STATEMENT

    STATEMENT OF

    RETAINED

    EARNING

    STATEMENT OF

    CHANGES IN

    FINANCIAL POSITION

    BALANCE

    SHEET

    INCOME

    STATEMENT

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    Statement of retained earnings

    the term retained earnings means the accumulated excess earnings over

    losses and dividends the balance shown by the income statement is transferred to

    the balance sheet through this statement after making necessary appropriations it

    is fundamentally a display of things that have caused the beginning of the period

    retained earnings balances to be charged in to the one shows in the end or the

    period balance sheet

    Statement of changes in financial position

    The balance sheet shows the financial condition of the business at a

    particular moment of time while the income statement discloses the results of

    operation of business it is essential to identify the movement of working capital or

    cash in the statement of changes in financial position

    Nature of financial statements

    the financial statements are prepared on the basis of recorded

    facts are those which can be expressed in monetary terms the

    statements are prepared for a particular period generally one year the

    transaction are recorded in a chronological order as and when the events

    happen the financial statement by nature are summaries of the items

    recorded in the business and there statements are prepared periodically

    generally for the accounting period

    The following points explain the nature of financial

    statements:

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    1.Recorded facts : the term recorded facts refers to the data taken

    out from the accounting records the records are maintained on the

    basis of actual cost data the figures of various accounts such as

    cash in hand cash at bank bills receivables Sunday debtors fixed

    assets are taken as per the figure recorded in the accounting books

    as the recorded facts are not based on replacement costs the

    financial statements do not show current financial conditions of the

    concern

    2.Accounting conventions: certain accounting conventions are

    followed while preparing financial statements the convention of

    valuating inventory at cost or market price whichever is lower is

    followed the valuing of assets at cost less depreciation principle forbalance sheet purposes statements comparable simple and realistic

    3.

    Postulates: the accountants make certain assumptions while

    making accounting records one of these assumptions is that the

    enterprise is treated as a going concern the other alternative to this

    postulate is that the concern is to be liquidated the concern so the

    assets are shows on a going concern basis an other important

    assumption is to presume that the value of money will remain inthe same in different periods

    4.Personal judgments : even though certain standard

    accounting conversion are followed in preparing financial

    statement but still personal judgment of the accountant plays on

    important part

    Importance of financial statements

    Financial statements contain a lot of useful and valuable information

    regarding profitability financial position and future prospective of business

    concern the utility of financial statement to different parties may be

    summarized as follows:

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    1. Management:

    The financial statements are useful for assessing the

    efficiency of different cost centers the management is able to

    decide the course of action to be adopted in future

    2. Creditors:

    The trade creditors are to be paid in a short period the creditors will be

    interested in current solvency of the concerns the calculations of current

    ratio and liquid ratio will enable the creditors to assess the current financial

    position of the concerns in relation to their debts

    3. Investors:The investors include both short term and long term investors they are

    interested in the security of the principal amounts of loan and regular

    payments by the concern the investors will not only analyze the parent

    financial position but will also study the future prospectus and expansion

    plans of the concern

    4. Government

    The financial statements are used assess tax liability of business

    enterprises the government studies economic situation of the country from

    these statements these statements enable the government to find out

    whether business is following various rules and regulations or not

    LIMITATIONS OF FINANCIAL STATEMENTSFinancial statements are relevant and useful for the concern still they

    do not present a final picture of the concern otherwise misleading

    conclusions may be drawn the financial statements suffer from following

    limitation:

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    1. Ignoring of non-monetary aspects:

    These statements are prepared with the help of accounting

    information which mainly consider monetary aspects only the value of

    business depends both on qualitative and quantitative factors

    2. Historical cost:The statements are prepared on the basis of historical cost the values

    of fixed assets are at their original cost less depreciation the balance sheet

    value are not shown the value of assets may be sold more over they do not

    reflect the market value which is as important factor in determining the

    solvency of an enterprise

    3. Personal judgment:

    In preparing financial statements certain items are left to the personal

    judgment of the accountant if any accountant is not following accounting

    principles correctly his judgment will give wrong picture

    4. Convention of conservation:

    Due to convention of conservation the income statement may not

    disclose true income of the business this is due to ignorance of probable

    incomes and accounting probable losses

    FINACIAL ANALYSIS:Financial analysis is the process of identifying the financial strength

    and weakness of the firm by properly establishing between the items of the

    balance sheet and profit and loss account there are various methods or

    techniques used in analysis financial statements such as comparative

    statements trend analysis common size statements schedule of changes in

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    working capital funds flow and cash flow analysis cost volume profit analysis

    and ratio analysis

    Meaning and concept of financial analysis:

    The terms financial analysis also known as analysis and interpretation

    of financial statements refers to the process of determining financial strengthand weakness of the firm by establishing strategic relationship between the

    items of the balance sheet profit and loss account and other operative data

    Types of financial analysis

    Financial analysis can be classified in to different categories depending

    up on

    A.

    On the bases of material usedB.

    On the basis of modules operandi

    1. On the basis of material used

    According to the basis financial analysis can be of two types

    External analysis

    TYPES OF

    FINANCIAL

    ON THE BASIC

    OF MATERIAL

    ON THE BASIC

    OF MODULES

    NTERNALHORIZONTAL VERTICA

    EXTERNAL

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    This analysis is done by those who are outsiders for the business these

    persons mainly depend up on the published financial statements their analysis

    serves only a limited purpose

    Internal analysis

    This analysis is done by persons who have access to the books of account andat other information related to the business such as analysis can be done by

    executives and employees of the organization the analysis is done depending up on

    the objective to be achieved through this analysis

    2. on the basis of modules operandi

    According to this financial analysis can also be of two types

    Horizontal analysis

    In case of this type of analysis financial statements for a number of years are

    reviewed and analysis the current yearsfigures are compared with the standard or

    base year the analysis statement usually contains figures for two or more year and

    percentage since this type of analysis based on the data from year to year rather

    than on date it is also termed as dynamic analysis

    Vertical analysisIn case of this type of analysis a study is made of the quantitative relationship

    of various items in the financial statement on a particular date since this analysis

    depends on the data for one period this is not very conductive to a proper analysis

    of

    He companys financial position it is also called static analysis as it is frequently

    used for referring to ratio developed on one date of for one accounting period

    Techniques of financial analysis

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    A financial can adopt one or more of the following techniques / tools of

    financial analysis:

    1.

    COMPARATIVE FINANCAIL STATEMENTS

    The statements which have been designed in a way so as to provide

    time perspective to the consideration of various elements of financial

    position embodied in such statements figures for two or more period side by

    side to facilitate comparison

    Both the income statement and balance sheet can be prepared in the form ofcomparative financial statements the comparative financial statements contain the

    following items

    i.

    Absolute figures (amount in rs as given in the final accounts)

    ii.

    Absolute figures expressed in terms of percentages

    iii. Increase of decrease in absolute figures in terms of money value

    iv. Increase or decrease in terms of percentages

    v. Comparison expressed in ratios

    vi. Percentages of totals

    2.COMMON SIZE STATEMENTS

    The common size statements balance sheet and income statement are

    show in analytical percentages the figures are shown as percentages of

    total assets total liabilities and sales the total assets are taken as 100

    Financial

    analysis

    mparative

    nancialtrend Ratio

    C.V.P.

    RatioCommonsize

    Funds

    flow

    Cash flow

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    and different assets are expressed as percentage of the total similarly

    various liabilities are taken as a part of total liabilities these statements

    are also known as component parentage or 100% statements because

    every individual item is stated as a percentage of the total 100 the

    short-comings in comparative statements and trend percentages

    where changes in item could not be compared in the following way

    i.

    The total of assets or liabilities are taken as 100

    ii. The individual assets are expressed as a percentage of total assets i.e.

    100 and different liabilities are calculated in relation to that liability

    Common size income statement:

    The items in income statement can be shown as percentages of

    sales to show the relation of each item to sale a significantrelationship can be established between item of income statement

    and volume of sales the increase in sale will certainly increases

    selling expresses and not administrative or financial expenses in

    case the volume of sale increases to a considerable extent

    administrative and financial expenses may go up in case the sales

    and declining the selling expenses should be reduced at once so a

    relationship is established between sales and other incomestatement and this relationship is helpful in evaluating operational

    activities of the enterprises

    Comparative income statements

    The income statement (profit &loss A/c) gives the results of the operations

    during a definite period it reveals the profit carried or loss incurred by the cancers

    the comparative study if income statement for more than 1 year may enable us to

    know the program of the concern first row columns gibe figures of various items of

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    two years the third and fourth column use to show increase or decrease in figures

    in absolute adopted in preparing comparative balance sheet

    1. In first step find out the changes in absolute figures i.e. increase or

    decrease should be calculated

    2. In second step percentage of change should be calculated with the help of

    following formula

    Change in amount

    Percentage of change = x 100

    base year amount

    Guide lines for interpretation:

    i.

    The increase or decrease in sales should be compared with increase or

    decrease in cost of goods sold if increase in sales is more than the cost of

    goods sold it means that the profitability of the concerns is increased

    ii. The amounts of gross profit should be studied

    iii. Operating profits should be studied the express should be

    deducted from gross profit to find out operating profit and then operating incomes

    should be added to get net profit

    iv. The next step is some of the non-operating expenses are to be deducted

    from the operating profits and non-operating incomes should be added to get net

    profit

    v. The opinion should be formed the profitability of the business concern and

    it should be given at the end

    Comparative balance sheet:

    The balance sheet prepared on a particular date reveals the financial position

    of the concern on the date to study the trends of business over a period of time

    comparative balance sheet reveals the cause for changes in the financial positions

    on amount of various transactions the comparative study throws light on financial

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    policies adopted by management

    the comparative balance sheet consists of two columns for the original data

    a third column used to show increase or decrease in various items a south column

    containing the parentage or increase or decrease may be added

    Guide lines for interpretation of balance sheet:

    1. The short term financial position can be studied by comparing the working

    capital of both years

    2.to study the liquidity position changes in liquid assets must be ascertain if

    there is any increase in liquid assets we must understand that is an improvement in

    the liquidity position of the concern and vice versa

    3. A high increase in sundry debtors and bills receivable mean in increase in

    risk in collecting the amount of dues

    4. A high increase in closing stock may mean that decrease in the demand

    5. Long term financial position of the business concern car be analyzed by

    studying the changes in fixed assets long term liabilities and capital

    6. Fixed assets must be compared with long term loans and capital if the

    increase in fixed assets is more than the increase in long term financiers from the

    working capital which is not good

    Common size balance sheet

    statement in which balance sheet items are expressed as the ratio of each

    asset to total assets and the ratio of each liability is expressed as a ratio of total

    liabilities is called common size balance sheet the common size balance sheet is a

    horizontal analysis the comparison of figures in different periods is not useful

    becomes total figure may be affected by a number of factors it is not possible to

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    establish standard norms for various assets the trends of year to year may not be

    studied and even they may not give proper results

    3. TREND ANALYSIS

    Trend analysis is an important and useful technique of financial analysis it

    involves computation of index numbers of the moments of the various financialitems in the financial statements for a number of periods it enables to know the

    changes in the financial position and the operational efficiency between the

    periods chosen

    Through trend analysis the analysis can give his opinion as to whether

    favorable or unfavorable tendencies are reflected by the accounting date

    the comparative and common size balance sheets suffer from a major

    limitation i.e. absence of basic standard to indicate whether the proportion of anitem is normal or analysis values are calculated for each item in isolation but

    conclusions are to be drawn by studying he related items also

    Trend analysis can be analysis in the following ways

    I. by calculating trend ratio (or) percentage

    ii. By plotting on graph paper (or) charge

    Trend ratio (or) percentage

    It involves the ascertainment of arithmetical relationship which each item of

    several year to the same item of base year any year maybe as the base year it is

    usually the earliest year

    Procedure for calculating trend ratio

    The following procedure maybe adopted for calculating trend ratio

    I. select any year as base year the selected year should be normal year for

    the base year the trend value is taken as 100

    ii. Trend percentage of each item should be calculated with the help of

    following formula

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    Current year value

    x 100

    base year value

    6. RATIO ANALYSIS

    Financial analysis depends to very large extents of the use of ratios throughthere are other equality important tools of such analysis thus a direct examination

    of the magnitude of two released items is somewhat enlightening but the

    comparison is greatly facilitated by expressing the relationship as a ratio

    ratio analysis of business enterprises enters on efforts to derive quantitative

    measures or guides concerning the expected capacity of the firm to meet its future

    financial obligation or expectations present and past data are used for the purpose

    and whatever extrapolations appear necessary they are made to provide no

    indication of feature performance alexander wait who criticized the bankers for its

    lap sided development owing to their decisions regarding the grant of credit on

    current ratios a lone made the presentation of an elaborate system of ratio analysis

    in 1919

    Ratio:

    Ratio is an expression of the quantitative relationship that exists between the

    two numbers the ratio is defined as "the indicated quotient of two mathematicalexpressions" the ratio should be determined between related accounting variables

    to be meaningful and effect.

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    CHAPTER - IV

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    COMPARATIVE BALANCE SHEETS FOR THE PERIOD 20122013

    TABLE NO 4.1

    PARTICULARS

    ASSETS

    CURRENT ASSETSCASH ON HAND

    CASH ON BAND

    STOCK IN TRADE

    PRE-PAID

    EXPENSES

    TOTAL CURRENT

    ASSETS (1)

    INVESTMENTSSHARES IN CO-

    OP INSTUTIONS

    DEPOSITS

    SECURITIES

    LOANS AND

    ADVANCES

    TOTAL

    INVESTMENTS(2)

    FIXED ASSETS

    LAND

    PLANT

    &MACHINERY

    BUILDINGS

    OTHER ASSETS

    TOTAL FIXED

    ASSEDTS (3)

    TOTAL ASSETS(1+2+3)

    LIABILITIES

    CURRENT

    LIABILITES

    BORROWINGS

    OTHER

    LIABILITEIS

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    TOTAL CUDRRINT

    LIABILITIES (4)

    LONG TERM

    LIABILITES

    DIPOSITS

    TOTAL LONG TERM

    LIABILITIES (5)CAPITAL

    SHARE CAPITAL

    RESERVE FUND

    AND OTHER FUNDS

    SPECIFIC RESERVES

    UNDISBURSED

    PROFITS

    TOTAL CAPITAL (6)

    TOTAL LIABILITES(4+5+6)

    INTERPRETATION

    From the above table no 4.2 it is under stood that the current

    assets are 2011-2012 in the year (2012) 702592884 in the year (2013)

    629890773 when compared to 2012 the current assets are decreased by

    10.34% during the year 2013 in this year the prepaid expenses are

    increased but other current assets are decreased

    The current liabilities are in the year (2012) 60659581 in the year

    (2013) 442904345 when compared 2006 the current liabilities have

    decreased by 26.98%.

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    COMPARATIVE BALANCE SHEETS FOR THE PERIOD 20122013

    TABLE NO 4.1

    PARTICULARS

    ASSETS

    CURRENT ASSETSCASH ON HAND

    CASH ON BAND

    STOCK IN TRADE

    PRE-PAID

    EXPENSES

    TOTAL CURRENT

    ASSETS (1)

    INVESTMENTSSHARES IN CO-

    OP INSTUTIONS

    DEPOSITS

    SECURITIES

    LOANS AND

    ADVANCES

    TOTAL

    INVESTMENTS(2)

    FIXED ASSETS

    LAND

    PLANT

    &MACHINERY

    BUILDINGS

    OTHER ASSETS

    TOTAL FIXED

    ASSEDTS (3)

    TOTAL ASSETS(1+2+3)

    LIABILITIES

    CURRENT

    LIABILITES

    BORROWINGS

    OTHER

    LIABILITEIS

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    TOTAL CUDRRINT

    LIABILITIES (4)

    LONG TERM

    LIABILITES

    DIPOSITS

    TOTAL LONG TERM

    LIABILITIES (5)CAPITAL

    SHARE CAPITAL

    RESERVE FUND

    AND OTHER FUNDS

    SPECIFIC RESERVES

    UNDISBURSED

    PROFITS

    TOTAL CAPITAL (6)

    TOTAL LIABILITES(4+5+6)

    INTERPRETATION

    From the above table no 4.2 it is under stood that the current

    assets are 2011-2012 in the year (2012) 702592884 in the year (2013)

    629890773 when compared to 2012 the current assets are decreased by

    10.34% during the year 2013 in this year the prepaid expenses are

    increased but other current assets are decreased

    The current liabilities are in the year (2012) 60659581 in the year

    (2013) 442904345 when compared 2006 the current liabilities have

    decreased by 26.98%.

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    COMPARATIVE BALANCE SHEETS FOR THE PERIOD 20122013

    TABLE NO 4.1

    PARTICULARS

    ASSETS

    CURRENT ASSETSCASH ON HAND

    CASH ON BAND

    STOCK IN TRADE

    PRE-PAID

    EXPENSES

    TOTAL CURRENT

    ASSETS (1)

    INVESTMENTSSHARES IN CO-

    OP INSTUTIONS

    DEPOSITS

    SECURITIES

    LOANS AND

    ADVANCES

    TOTAL

    INVESTMENTS(2)

    FIXED ASSETS

    LAND

    PLANT

    &MACHINERY

    BUILDINGS

    OTHER ASSETS

    TOTAL FIXED

    ASSEDTS (3)

    TOTAL ASSETS(1+2+3)

    LIABILITIES

    CURRENT

    LIABILITES

    BORROWINGS

    OTHER

    LIABILITEIS

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    TOTAL CUDRRINT

    LIABILITIES (4)

    LONG TERM

    LIABILITES

    DIPOSITS

    TOTAL LONG TERM

    LIABILITIES (5)CAPITAL

    SHARE CAPITAL

    RESERVE FUND

    AND OTHER FUNDS

    SPECIFIC RESERVES

    UNDISBURSED

    PROFITS

    TOTAL CAPITAL (6)

    TOTAL LIABILITES(4+5+6)

    INTERPRETATION

    From the above table no 4.2 it is under stood that the current

    assets are 2011-2012 in the year (2012) 702592884 in the year (2013)

    629890773 when compared to 2012 the current assets are decreased by

    10.34% during the year 2013 in this year the prepaid expenses are

    increased but other current assets are decreased

    The current liabilities are in the year (2012) 60659581 in the year

    (2013) 442904345 when compared 2006 the current liabilities have

    decreased by 26.98%.

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    COMPARATIVE BALANCE SHEETS FOR THE PERIOD 20122013

    TABLE NO 4.1

    PARTICULARS

    ASSETS

    CURRENT ASSETSCASH ON HAND

    CASH ON BAND

    STOCK IN TRADE

    PRE-PAID

    EXPENSES

    TOTAL CURRENT

    ASSETS (1)

    INVESTMENTSSHARES IN CO-

    OP INSTUTIONS

    DEPOSITS

    SECURITIES

    LOANS AND

    ADVANCES

    TOTAL

    INVESTMENTS(2)

    FIXED ASSETS

    LAND

    PLANT

    &MACHINERY

    BUILDINGS

    OTHER ASSETS

    TOTAL FIXED

    ASSEDTS (3)

    TOTAL ASSETS(1+2+3)

    LIABILITIES

    CURRENT

    LIABILITES

    BORROWINGS

    OTHER

    LIABILITEIS

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    TOTAL CUDRRINT

    LIABILITIES (4)

    LONG TERM

    LIABILITES

    DIPOSITS

    TOTAL LONG TERM

    LIABILITIES (5)CAPITAL

    SHARE CAPITAL

    RESERVE FUND

    AND OTHER FUNDS

    SPECIFIC RESERVES

    UNDISBURSED

    PROFITS

    TOTAL CAPITAL (6)

    TOTAL LIABILITES(4+5+6)

    INTERPRETATION

    From the above table no 4.2 it is under stood that the current

    assets are 2011-2012 in the year (2012) 702592884 in the year (2013)

    629890773 when compared to 2012 the current assets are decreased by

    10.34% during the year 2013 in this year the prepaid expenses are

    increased but other current assets are decreased

    The current liabilities are in the year (2012) 60659581 in the year

    (2013) 442904345 when compared 2006 the current liabilities have

    decreased by 26.98%.

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    COMPARATIVE BALANCE SHEETS FOR THE PERIOD 20122013

    TABLE NO 4.1

    PARTICULARS

    ASSETS

    CURRENT ASSETSCASH ON HAND

    CASH ON BAND

    STOCK IN TRADE

    PRE-PAID

    EXPENSES

    TOTAL CURRENT

    ASSETS (1)

    INVESTMENTSSHARES IN CO-

    OP INSTUTIONS

    DEPOSITS

    SECURITIES

    LOANS AND

    ADVANCES

    TOTAL

    INVESTMENTS(2)

    FIXED ASSETS

    LAND

    PLANT

    &MACHINERY

    BUILDINGS

    OTHER ASSETS

    TOTAL FIXED

    ASSEDTS (3)

    TOTAL ASSETS(1+2+3)

    LIABILITIES

    CURRENT

    LIABILITES

    BORROWINGS

    OTHER

    LIABILITEIS

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    TOTAL CUDRRINT

    LIABILITIES (4)

    LONG TERM

    LIABILITES

    DIPOSITS

    TOTAL LONG TERM

    LIABILITIES (5)CAPITAL

    SHARE CAPITAL

    RESERVE FUND

    AND OTHER FUNDS

    SPECIFIC RESERVES

    UNDISBURSED

    PROFITS

    TOTAL CAPITAL (6)

    TOTAL LIABILITES(4+5+6)

    INTERPRETATION

    From the above table no 4.2 it is under stood that the current

    assets are 2011-2012 in the year (2012) 702592884 in the year (2013)

    629890773 when compared to 2012 the current assets are decreased by

    10.34% during the year 2013 in this year the prepaid expenses are

    increased but other current assets are decreased

    The current liabilities are in the year (2012) 60659581 in the year

    (2013) 442904345 when compared 2006 the current liabilities have

    decreased by 26.98%.

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    COMPARATIVE BALANCE SHEETS FOR THE PERIOD 20122013

    TABLE NO 4.1

    PARTICULARS

    ASSETS

    CURRENT ASSETSCASH ON HAND

    CASH ON BAND

    STOCK IN TRADE

    PRE-PAID

    EXPENSES

    TOTAL CURRENT

    ASSETS (1)

    INVESTMENTSSHARES IN CO-

    OP INSTUTIONS

    DEPOSITS

    SECURITIES

    LOANS AND

    ADVANCES

    TOTAL

    INVESTMENTS(2)

    FIXED ASSETS

    LAND

    PLANT

    &MACHINERY

    BUILDINGS

    OTHER ASSETS

    TOTAL FIXED

    ASSEDTS (3)

    TOTAL ASSETS(1+2+3)

    LIABILITIES

    CURRENT

    LIABILITES

    BORROWINGS

    OTHER

    LIABILITEIS

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    TOTAL CUDRRINT

    LIABILITIES (4)

    LONG TERM

    LIABILITES

    DIPOSITS

    TOTAL LONG TERM

    LIABILITIES (5)CAPITAL

    SHARE CAPITAL

    RESERVE FUND

    AND OTHER FUNDS

    SPECIFIC RESERVES

    UNDISBURSED

    PROFITS

    TOTAL CAPITAL (6)

    TOTAL LIABILITES(4+5+6)

    INTERPRETATION

    From the above table no 4.2 it is under stood that the current

    assets are 2011-2012 in the year (2012) 702592884 in the year (2013)

    629890773 when compared to 2012 the current assets are decreased by

    10.34% during the year 2013 in this year the prepaid expenses are

    increased but other current assets are decreased

    The current liabilities are in the year (2012) 60659581 in the year

    (2013) 442904345 when compared 2006 the current liabilities have

    decreased by 26.98%.

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    COMPARATIVE BALANCE SHEETS FOR THE PERIOD 20122013

    TABLE NO 4.1

    PARTICULARS

    ASSETS

    CURRENT ASSETSCASH ON HAND

    CASH ON BAND

    STOCK IN TRADE

    PRE-PAID

    EXPENSES

    TOTAL CURRENT

    ASSETS (1)

    INVESTMENTSSHARES IN CO-

    OP INSTUTIONS

    DEPOSITS

    SECURITIES

    LOANS AND

    ADVANCES

    TOTAL

    INVESTMENTS(2)

    FIXED ASSETS

    LAND

    PLANT

    &MACHINERY

    BUILDINGS

    OTHER ASSETS

    TOTAL FIXED

    ASSEDTS (3)

    TOTAL ASSETS(1+2+3)

    LIABILITIES

    CURRENT

    LIABILITES

    BORROWINGS

    OTHER

    LIABILITEIS

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    TOTAL CUDRRINT

    LIABILITIES (4)

    LONG TERM

    LIABILITES

    DIPOSITS

    TOTAL LONG TERM

    LIABILITIES (5)CAPITAL

    SHARE CAPITAL

    RESERVE FUND

    AND OTHER FUNDS

    SPECIFIC RESERVES

    UNDISBURSED

    PROFITS

    TOTAL CAPITAL (6)

    TOTAL LIABILITES(4+5+6)

    INTERPRETATION

    From the above table no 4.2 it is under stood that the current

    assets are 2011-2012 in the year (2012) 702592884 in the year (2013)

    629890773 when compared to 2012 the current assets are decreased by

    10.34% during the year 2013 in this year the prepaid expenses are

    increased but other current assets are decreased

    The current liabilities are in the year (2012) 60659581 in the year

    (2013) 442904345 when compared 2006 the current liabilities have

    decreased by 26.98%.

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    COMPARATIVE BALANCE SHEETS FOR THE PERIOD 20122013

    TABLE NO 4.1

    PARTICULARS

    ASSETS

    CURRENT ASSETSCASH ON HAND

    CASH ON BAND

    STOCK IN TRADE

    PRE-PAID

    EXPENSES

    TOTAL CURRENT

    ASSETS (1)

    INVESTMENTSSHARES IN CO-

    OP INSTUTIONS

    DEPOSITS

    SECURITIES

    LOANS AND

    ADVANCES

    TOTAL

    INVESTMENTS(2)

    FIXED ASSETS

    LAND

    PLANT

    &MACHINERY

    BUILDINGS

    OTHER ASSETS

    TOTAL FIXED

    ASSEDTS (3)

    TOTAL ASSETS(1+2+3)

    LIABILITIES

    CURRENT

    LIABILITES

    BORROWINGS

    OTHER

    LIABILITEIS

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    TOTAL CUDRRINT

    LIABILITIES (4)

    LONG TERM

    LIABILITES

    DIPOSITS

    TOTAL LONG TERM

    LIABILITIES (5)CAPITAL

    SHARE CAPITAL

    RESERVE FUND

    AND OTHER FUNDS

    SPECIFIC RESERVES

    UNDISBURSED

    PROFITS

    TOTAL CAPITAL (6)

    TOTAL LIABILITES(4+5+6)

    INTERPRETATION

    From the above table no 4.2 it is under stood that the current

    assets are 2011-2012 in the year (2012) 702592884 in the year (2013)

    629890773 when compared to 2012 the current assets are decreased by

    10.34% during the year 2013 in this year the prepaid expanses are

    increased but other current assets are decreased

    The current liabilities are in the year (2012) 60659581 in the year

    (2013) 442904345 when compared 2006 the current liabilities have

    decreased by 26.98%.

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    COMPARATIVE BALANCE SHEETS FOR THE PERIOD 20122013

    TABLE NO 4.1

    PARTICULARS

    ASSETS

    CURRENT ASSETSCASH ON HAND

    CASH ON BAND

    STOCK IN TRADE

    PRE-PAID

    EXPENSES

    TOTAL CURRENT

    ASSETS (1)

    INVESTMENTSSHARES IN CO-

    OP INSTUTIONS

    DEPOSITS

    SECURITIES

    LOANS AND

    ADVANCES

    TOTAL

    INVESTMENTS(2)

    FIXED ASSETS

    LAND

    PLANT

    &MACHINERY

    BUILDINGS

    OTHER ASSETS

    TOTAL FIXED

    ASSEDTS (3)

    TOTAL ASSETS(1+2+3)

    LIABILITIES

    CURRENT

    LIABILITES

    BORROWINGS

    OTHER

    LIABILITEIS

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    TOTAL CUDRRINT

    LIABILITIES (4)

    LONG TERM

    LIABILITES

    DIPOSITS

    TOTAL LONG TERM

    LIABILITIES (5)CAPITAL

    SHARE CAPITAL

    RESERVE FUND

    AND OTHER FUNDS

    SPECIFIC RESERVES

    UNDISBURSED

    PROFITS

    TOTAL CAPITAL (6)

    TOTAL LIABILITES(4+5+6)

    INTERPRETATION

    From the above table no 4.2 it is under stood that the current

    assets are 2011-2012 in the year (2012) 702592884 in the year (2013)

    629890773 when compared to 2012 the current assets are decreased by

    10.34% during the year 2013 in this year the prepaid expenses are

    increased but other current assets are decreased

    The current liabilities are in the year (2012) 60659581 in the year

    (2013) 442904345 when compared 2006 the current liabilities have

    decreased by 26.98%.

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    COMPARATIVE BALANCE SHEETS FOR THE PERIOD 20122013

    TABLE NO 4.1

    PARTICULARS

    ASSETS

    CURRENT ASSETSCASH ON HAND

    CASH ON BAND

    STOCK IN TRADE

    PRE-PAID

    EXPENSES

    TOTAL CURRENT

    ASSETS (1)

    INVESTMENTSSHARES IN CO-

    OP INSTUTIONS

    DEPOSITS

    SECURITIES

    LOANS AND

    ADVANCES

    TOTAL

    INVESTMENTS(2)

    FIXED ASSETS

    LAND

    PLANT

    &MACHINERY

    BUILDINGS

    OTHER ASSETS

    TOTAL FIXED

    ASSEDTS (3)

    TOTAL ASSETS(1+2+3)

    LIABILITIES

    CURRENT

    LIABILITES

    BORROWINGS

    OTHER

    LIABILITEIS

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    TOTAL CUDRRINT

    LIABILITIES (4)

    LONG TERM

    LIABILITES

    DIPOSITS

    TOTAL LONG TERM

    LIABILITIES (5)CAPITAL

    SHARE CAPITAL

    RESERVE FUND

    AND OTHER FUNDS

    SPECIFIC RESERVES

    UNDISBURSED

    PROFITS

    TOTAL CAPITAL (6)

    TOTAL LIABILITES(4+5+6)

    INTERPRETATION

    From the above table no 4.2 it is under stood that the current

    assets are 2011-2012 in the year (2012) 702592884 in the year (2013)

    629890773 when compared to 2012 the current assets are decreased by

    10.34% during the year 2013 in this year the prepaid expenses are

    increased but other current assets are decreased

    The current liabilities are in the year (2012) 60659581 in the year

    (2013) 442904345 when compared 2006 the current liabilities have

    decreased by 26.98%.

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    COMPARATIVE INCOME STATEMENT AS ON 2010-2011

    TABLE NO: 4.11

    PARTICULARS 2011 2012 INC/DEC %

    SALES

    COST OF SELLINGGROSS PROFIT (1)

    LESS

    EXPENSES

    INTEREST PAID

    DISTRIBUTION

    CHARGES

    CEPRECIATIN

    PREVIOUS YEARLOSS

    TOTEL

    EXPENSES(2)

    ADD

    INCOMES

    INTEREST

    RECEIVED

    OTHER INCOMESTOTAL

    INCOMES(3)

    NET LOSS (1-2+3)

    INTERPRETATION:

    From the above table no 4.11 it is understood that when compared to 2011

    the year 2012 sales are increased by 4.18% but gross profit is decreased by 57.71%because the cost of selling goods are increased by 23.38%

    The total expenses are decreased by 41.97% at the same time the total

    incomes are decreased by 94.70% the firm got loss by 18.40% during the year 2012

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    COMPARATIVE INCOME STATEMENT AS ON 2010-2011

    TABLE NO: 4.11

    PARTICULARS 2011 2012 INC/DEC %

    SALES

    COST OF SELLINGGROSS PROFIT (1)

    LESS

    EXPENSES

    INTEREST PAID

    DISTRIBUTION

    CHARGES

    CEPRECIATIN

    PREVIOUS YEARLOSS

    TOTEL

    EXPENSES(2)

    ADD

    INCOMES

    INTEREST

    RECEIVED

    OTHER INCOMESTOTAL

    INCOMES(3)

    NET LOSS (1-2+3)

    INTERPRETATION:

    From the above table no 4.11 it is understood that when compared to 2011

    the year 2012 sales are increased by 4.18% but gross profit is decreased by 57.71%because the cost of selling goods are increased by 23.38%

    The total expenses are decreased by 41.97% at the same time the total

    incomes are decreased by 94.70% the firm got loss by 18.40% during the year 2012

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    COMPARATIVE INCOME STATEMENT AS ON 2010-2011

    TABLE NO: 4.11

    PARTICULARS 2011 2012 INC/DEC %

    SALES

    COST OF SELLINGGROSS PROFIT (1)

    LESS

    EXPENSES

    INTEREST PAID

    DISTRIBUTION

    CHARGES

    CEPRECIATIN

    PREVIOUS YEARLOSS

    TOTEL

    EXPENSES(2)

    ADD

    INCOMES

    INTEREST

    RECEIVED

    OTHER INCOMESTOTAL

    INCOMES(3)

    NET LOSS (1-2+3)

    INTERPRETATION:

    From the above table no 4.11 it is understood that when compared to 2011

    the year 2012 sales are increased by 4.18% but gross profit is decreased by 57.71%because the cost of selling goods are increased by 23.38%

    The total expenses are decreased by 41.97% at the same time the total

    incomes are decreased by 94.70% the firm got loss by 18.40% during the year 2012

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    COMPARATIVE INCOME STATEMENT AS ON 2010-2011

    TABLE NO: 4.11

    PARTICULARS 2011 2012 INC/DEC %

    SALES

    COST OF SELLINGGROSS PROFIT (1)

    LESS

    EXPENSES

    INTEREST PAID

    DISTRIBUTION

    CHARGES

    CEPRECIATIN

    PREVIOUS YEARLOSS

    TOTEL

    EXPENSES(2)

    ADD

    INCOMES

    INTEREST

    RECEIVED

    OTHER INCOMESTOTAL

    INCOMES(3)

    NET LOSS (1-2+3)

    INTERPRETATION:

    From the above table no 4.11 it is understood that when compared to 2011

    the year 2012 sales are increased by 4.18% but gross profit is decreased by 57.71%because the cost of selling goods are increased by 23.38%

    The total expenses are decreased by 41.97% at the same time the total

    incomes are decreased by 94.70% the firm got loss by 18.40% during the year 2012

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    CHATPER - V

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    SUMMARYFinancial assessment of an organization is moving so as to decide and compliment

    the future course of action to achieve the objectives of the organization

    The following methods or techniques are used in studying the financial

    assessment of an enterprise

    1. Comparative financial statement

    2. Common size statements

    3. Ratio analysis

    1. COMPARATIVE FINANCIAL STATEMENT

    in CFS two or more balance sheet and for the income statements of a firm

    are presented simultaneously in columnar form the financial data for two or more

    years are placed and present and adjacent columns and there by the financial data

    is provided a times perspective in order to facilitate periodic comparison

    2. COMMON SIZE STATEMENTS

    A company financial statement that displays all items as percentages of a

    common base figure this type of financial statement allows for easy analysis

    between companies or between time periods of a company

    invest podia explains common size financial statement component such as

    revenue while most firms dont report their statements in common size it isbeneficial to compute if you want to analyze two or more companies of differing

    size against each other

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    Formatting financial statements in this way reduces the bias that

    can occur when analyzing companies of differing sizes it also allows for

    the analysis of a company over various time periods revealing for

    example what percentage of sales is cost of goods sold and how that

    value has changed over time

    RATIO ANALYSIS

    Ratio analysis is one of the popular flows of financial statement analysis in

    simple words ratio is the quotient formed when one magnitude is divided by

    another measured in the some unit a ration is defined as the indicated quotient

    of two mathematical expressions and the relationship between two or more

    things

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    SUGGESTIONS

    1) Funds flow analysis an important aspect in financial management of every

    organization funds flow analysis is required on fund based activities of the

    organization

    2)the chodavaram co-operative sugars limited also requires working capital for

    charring on its activities like any organization the accounts offices of the

    organization maintain this

    3) The firm pledge its goods to the Visakhapatnam district co-operative central

    bank and gets cash credit limit for getting its working capital funded

    4) The management has to see the dispose the stock which is present in books forquite a long time since three years

    5) The company should clearly define and established suitable credit policies in

    respect of both sales and members

    6) It is suggested the company adopts the suitable system of vast budgeting

    receivables management and inventory management

    7) The company is advised have the concept of working capital management

    8) It is suggested the company should established responsible basis for estimating

    the further working capital requirements

    9) The company identified its inventory as a show moving items fast moving items

    or long moving items to their after management may consider steps that are

    necessary for the disposal of nonmoving items at the earliest

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    FINDINGS

    The firm was the working capital for lending to the farmers sanctioning fertilizers

    loans and other loans for carrying on the production of sugarcane it also invest in

    some other current assets in invest in stock as it should get order from the

    government selling in sugar

    1) It needs working capital for paying its current liabilities like interest overdue

    sugarcane payments etc...

    2) the firm working capital management policy is very optimum as it need not keep

    any cash in advance for making payments or need not keep any surplus cash

    available ideally as it can draw or deposit cash whenever required from the bank

    3) N it pays interest fo