19-07-2014, 03:05 PM
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY.doc (Size: 1.09 MB / Downloads: 11)
INTRODUCTION
Ratio analysis is a technique of analyzing the financial statement of industrial concerns. Now a day this technique is sophisticated and is commonly used in business concerns. Ratio analysis is not an end but it is only means of better understanding of financial strength and and weakness of a firm.
Ratio analysis is one of the most powerful tools of financial analysis which helps in analyzing and interpreting the health of the firm. Ratio’s are proved as the basic instrument in the control process and act as back bone in schemes of the business forecast
The Historical Background of the Indian Sugar Industry
The sugar industry is proud to be an industry, which spreads the taste of sweetness to the mankind. The history of origin of this industry is as old as the history of main him self. Sugar is generally made from sugarcane and beet. In India, sugar is produced mainly from sugarcane. India had introduced sugarcane all over the worlds and is a leading country in the making sugar from sugarcane.
‘Saint Vishwamitra’ is known as the research person of the sugarcane in religious literature. We can find the example of sugarcane in Vedic literature also as well as sugarcane. We can also find the reference of sugar and the sugarcane in Patanjali’s Mahabashya and the treaty on the grammar of ‘Panini’. Greek traveler ‘Niyarchus’ and Chinese traveler ‘Tai-Sung’ have mentioned in their travelogue that the people of India used to know the methods of making sugar and juice from sugarcane the great Emperor Alexander also carried sugarcane with him while returning to his country.
Thus from different historical references and from some ‘Puranas’ it can be concluded that method of making sugar from sugarcane was known To the people of Bihar. The historical evidences of sugar industry prospering in ancientIndia concrete and this has helped to develop and prosper the co-operative sugar movement in India
National Scenario Of Sugar Industry
The first sugar mill in the country was set up in 1903 in the United Provinces. There are 566 installed sugar mills, of which 453 were in operation in the year 2002-03 and utilized 194.4 million ton of sugarcane (69% of total cane production) to produce 20.14 million tons of sugar. About 5 lakhs workmen are directly employed in the sugar. About 5 lakhs workmen are directly employed in the sugar industry besides many in industries, which utilize by-products of sugar industry as raw material.
India is the largest consumer and second largest producer of sugar in the world. The Indian sugar industry is the second largest agro-industry located in the rural India. Indian sugar industry has been a focal point for socio-economic development in the rural areas. About 50 million sugarcane farmers and a large number of agricultural laborers are involved in sugarcane cultivation and ancillary activities, constituting 7.5% of the rural population. Besides, the industry provides employment to about 2 million skilled/semi skilled workers and others mostly from the rural areas. The industry not only generates power for its own requirement but surplus power for export to the grid based on by-product –Bagasses. It also produces ethyl alcohol, which is used for industrial and potable uses, and can be used to the manufacture Ethanol, an ecology friendly and renewable fuel for blending with petrol.
HUMAN RESOURCE DEPARTMENT
The Human Resource department is the primarily concerned with the human constitution of an organization. It is concerned with the manpower recruitment, remuneration, promotion, retirement etc., all related to human resource or labors of the organization.
The Human Resource Department refers to the systematic approach to the problem of selection, training motivating and retaining personnel in any organization. It also consider with planning, organizing, directing the personnel functions in the organization
TIME OFFICE
Time office is one of the important sections of administration department. This section maintains the attendance of workers. It also shows records of a particular workers about his working hours, dit, etc. it evaluates the workers punctuality, discipline and uniforms and maintains documents and records for the future reference purpose
MARKETING
Marketing is a social and managerial process by which individual and group obtains what they need and what through creating, offering and exchanging products of values with others. This marketing is important element in every organization, which should be maintained compulsory in a systematic manner.
This section will take care of all sale transactions like sale of sugar, molasses, Bagasse and scrap material. This section works by 7 employees including sales manager. The factory has sold the sugar according to central government notification. The central government sends the notice to the factory every month regarding sale of sugar, without notice the sugar is not sold to anybody. The government is giving permission for a particular period, particular for sale of sugar. The sugar is sold to the buyer who quotes highest price. In this section, some records like sale of sugar register, molasses register, Bagasse registers and scrap material registers are maintained
PURCHASE DEPARTMENT
Purchase success and failure of any company depends on the cost of materials, the proper buying of materials and procurement of materials at the right time from the right source is having greater importance in any business. There is a need for separate department for buying the materials known as Purchasing department.
The purchase section also connected to administrative department. In this section 3 workers are working including purchase officers. This section is purchasing all types of materials for the factory, plant and machinery.
This department also maintains the quality of raw materials, by taking the sample of cane to laboratory test then if the raw material will below standard then will be rejected, otherwise the raw material will be purchased at the particular price.
ANALYSIS & INTREPRETATION
Liquidity Ratio
Liquidity ratio measures the ability of the firm to meet its current obligation (liabilities). In fact analysis of liquidity needs the preparation of cash budget and cash and fund flow statement but liquidity ratio, by establishing a relationship between cash and other current asset to current obligation, to provide a quick measure of liquidity. A firm should ensure that it doesn’t suffer lack of liquidity and also that it dose not have excess liquidity.
The common liquidity ratios are:-
1. Current Ratio
Current ratio may be defined as the relationship between current asset and current liabilities. This is a measure of general liquidity & is most widely used to make analysis of short-turn financial position or liquidity of firm. It is calculated by dividing the total current assets by total current liabilities.
Current Ratio = Current Assets
Current Liabilities
CONCLUSION
Studay of ratio analysis of nirani sugars Ltd. Reveals the performance of the company in terms of financial aspects. It is found that there is increase in sales gross profit during 2005 to 2009. The cash balance is also increased for the above saied years this is due to company’s revised policy in debt collection. It is also observed that the current ratio is not so satisfactory which creates chunks in the current assets in the form of sundry debtors and inventory