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ASTUDYONFINANCIALPERFORMANCEOFPONNISUGARS(ERODE)LTDAT

ERODE
By
THANGESHWARN.S
(Reg.No.1261236)
Of
K.S.RANGASAMYCOLLEGEOFTECHNOLOGY
TIRUCHENGODE637215
(AnAutonomousInstitutionAffiliatedtoAnnaUniversity,Chennai)

APROJECTREPORT

Submittedtothe

FACULTYOFMANAGEMENTSSTUDIES
Inpartialfulfillmentoftherequirementsfortheawardofthedegree
Of
MASTEROFBUSINESSADMINISTRATION
July2013

BONAFIDECERTIFICATE

Certifiedthatthis project reporttitled A STUDY ON FINANCIALPERFORMANCEOF


PONNI SUGARS (ERODE) LTD AT ERODE

is the bonafide work of

Mr.THANGESHWARN.S,(Reg.No.1261236)whocarriedouttheresearchundermysupervision.
Certifiedfurther,thattothebestofmyknowledgetheworkreportedhereindoesnotformpartof
anyotherprojectreportordissertationonthebasisofwhichadegreeorawardwasconferredonan
earlieroccasiononthisoranyothercandidate.

Director

Supervisor

HeadoftheInstitution

Submittedforthevivavoceexaminationheldon

InternalExaminer ExternalExaminer

K.S.RANGASAMYCOLLEGEOFTECHOLOGY(Autonoums),TIRUGHENGODE.
MBASummerProjectWork
(Batch20122014)
Titleoftheproject

AstudyonfinancialperformanceofPonniSugars(Erode)Ltd
atErode.

Nameofthestudent

S.Thangeshwaran

andemailaddress

Thangeshwaran91@gmail.com

Nameofthesupervisor(s)

Dr.M.VIJAYKUMARMBA.,M.Phil.,Ph.D.,Professor,Department
ofMBA,K.S.RangasamyCollegeofTechnology.
ABSTRACT

TheprojectentitledAstudyonfinancialperformanceofPonniSugars(Erode)LtdatErode
attemptedtoanalyzeanddescribeofthesugarindustry.Itisfoundfromthestudythatthecompany
waswithsteadyfinancialpositions.Fromtheanalysisitissuggestedthatthecompanycould
maintainanoptimumlevelofinventorytomakegoodfinancialposition.Thecompanyhastotake
appropriatestepstocontrolthecost,increasethevolumeofsales,profitinthefutureyears.

DECLARATION
IherebydeclarethattheprojectentitledASTUDYONFINANCIALPERFORMANCEOF
PONNISUGARS(ERODE)LTDATERODEinpartialfulfillmentoftherequirementforthe
awardofthedegreeofMASTEROFBUSINESSADMINISTRATIONisarecordoforiginal
projectworkdonebyme,duringmyperiodofstudyinK.S.RANGASAMYCOLLEGEOF
TECHNOLOGY20122014undertheguidanceofDr.M.VIJAYKUMARMBA.,M.Phil.,
Ph.D.,Professor,DepartmentofMBA,K.S.RangasamyCollegeofTechnologyandnopartofit
hasbeensubmittedforanyotherDegreeorDiploma.

Signature:

RegisterNo

:1261236

Nameofthecandidate :THANGESHWARAN.S
DATE :
PLACE :TIRUCHENGODE

ACKNOWLEDGEMENT

FirstandformostIdedicatethisprojectworktomyparents,whoareresponsiblefor
alltheoutstandingperformanceinmylife.
I wish to express my sincere gratitude to our Correspondent Lion
Dr.K.S.RANGASAMYM.J.F.,K.S.REducationalInstitutions,forprovidinganexcellent
environmentandinfrastructureatK.S.RANGASAMYCOLLEGEOFTECHNOLOGY.
IamdeeplyindebtedtoDr.K.THYAGARAJAHM.E.,Ph.D.,SMIEEE,MISTE,
PrincipalK.S.RCOLLEGEOFTECHNOLOGY,forgivingmepermissiontoundertake
thisproject.
IregardmysincereandheartfeltthankstoourdirectoroftheDepartment
Dr.A.LAKSHMIM.A.,M.Phil.,MBA.,B.Ed.,Ph.D.,Director,DepartmentofMBAwho
hasbeenthekeyspringofmotivationtousthroughoutthecompletionofourcourseand
projectwork.
I

amhighlyindebtedtoprovidemyheartfullthankstomyguide

Dr.M.VIJAYKUMAR MBA., M.Phil., Ph.D., Professor, Department of MBA,


K.S.RangasamyCollegeofTechnologyforhisvaluableideas,encouragementandsupportive
guidancethroughouttheproject.

I would like to thank my parents and friends for their valuable support and
contributiontothecompletionofmyproject.

CONTENTS

CHAPTERNO

PARTICULARS
ListofTables

Vii

Listofcharts

viii

INTRODUCTION
1.1 Introduction

1.2 Statementoftheproblem

1.3 Objectivesofthestudy

1.4 Scopeofthestudy

1.5 Limitationsofthestudy

1.6 Chapterizationofthestudy

CONCEPTSANDREVIEW
2.1 Conceptsofthestudy

2.2 Reviewoftherelatedliterature

2.3 Companyprofile

2.4 Productprofile

METHODOLOGY
3.1 ResearchDesign

3.2 DatacollectionDetails

10

3.3 Toolsofthestudy

11

DATAANALYSISANDINTERPRETATION
4.1 Analysisofthedata

LISTOFTABLES

PAGE.NO

19

RESULTSANDDISCUSSION
5.1 Findingsofthestudy

37

5.2 Suggestions

39

5.3 Conclusion

39

REFERENCES

40

TABLENO

PARTICULARS

PAGENO

4.1.1

Currentratios

20

4.1.2

Quickratiooracidtestratio

21

4.1.3

Grossprofitmargin

22

4.1.4

Operatingprofitmargin

23

4.1.5

Netprofitmargin

24

4.1.6

Returnonassets

25

4.1.7

Equityratio

26

4.1.8

Fixedassetsturnover

27

4.1.9

Inventoryturnover

28

4.1.10

Totalassetsturnover

29

4.1.11

Inventorytocurrentassets

30

4.1.12

Inventorytonetworkingcapital

31

4.1.13

Overheads

32

4.1.14

Directmaterials

33

4.1.15

Directlabour

34

4.1.16

Trendanalyses

35

LISTOFCHARTS

TABLENO

PARTICULARS

PAGENO

4.1.1

Currentratios

20

4.1.2

Quickratiooracidtestratio

21

4.1.3

Grossprofitmargin

22

4.1.4

Operatingprofitmargin

23

4.1.5

Netprofitmargin

24

4.1.6

Returnonassets

25

4.1.7

Equityratio

26

4.1.8

Fixedassetsturnover

27

4.1.9

Inventoryturnover

28

4.1.10

Totalassetsturnover

29

4.1.11

Inventorytocurrentassets

30

4.1.12

Inventorytonetworkingcapital

31

4.1.13

Overheads

32

4.1.14

Directmaterials

33

4.1.15

Directlabour

34

4.1.16

Trendanalyses

36

CHAPTER1
1.INTRODUCTION

1.1INTRODUCTION

ThewordPerformanceisderivedfromthewordparfourmen,whichmeanstodo,to
carry out or to render. It refers the act of per forming; execution, accomplishment,
fulfillment,etc.Inbordersense,performancereferstotheaccomplishmentofagiventask
measuredagainstpresetstandardsofaccuracy,completeness,cost,andspeed.Inotherwords,
itreferstothedegreetowhichanachievementisbeingorhasbeenaccomplished.Inthe
wordsofFrichKohlarTheperformanceisageneraltermappliedtoapartortoallthe
conductsofactivitiesofanorganizationoveraperiodoftimeoftenwithreferencetopastor
projectedcostefficiency,managementresponsibilityoraccountabilityorthelike.Thus,not
just the presentation, but the quality of results achieved refers to the performance.
Performanceisusedtoindicatefirmssuccess,conditions,andcompliance.

Financialperformancereferstotheactofperformingfinancialactivity.Inbroadersense,
financialperformancereferstothedegreetowhichfinancialobjectivesbeingorhasbeen
accomplished.Itistheprocessofmeasuringtheresultsofafirm'spoliciesandoperationsin
monetaryterms.Itisusedtomeasurefirm'soverallfinancialhealthoveragivenperiodof
timeandcanalsobeusedtocomparesimilarfirmsacrossthesameindustryortocompare
industriesorsectorsinaggregation.

Thefinancialperformanceanalysisidentifiesthefinancialstrengthsandweaknesses
ofthefirmbyproperlyestablishingrelationshipsbetweentheitemsofthebalancesheetand
profitandlossaccount.

1.2STATEMENTOFTHEPROBLEM

Financialperformancearepreparedtoreviewthestateofinvestmentinabusinessand
result achieved during specific period, financial performance analyses are also of great
importancetothefinanciallenders.Thefinancialperformancesareusefulandmeaningful
onlywhentheyareanalyzed.
Sugarindustriesareofthedevelopingindustriesinourcountryafterliberalization.
Thegovernmenthasopenednewopportunitiesforthecenturyoldsugarindustry.Thereisa
vasthomemarketandexportpotentialforsugarindustry.Theprocessofconsolidationand
rationalizationintheindustrywillcontinue.Thiswillleadtogreaterchallengesinmatching
therightcompaniesandtheirproductmakingfacilitiestotherightmarket.Onaccountof
thesefacts,itisofconsiderableinteresttostudythesugarindustry.

1.3 OBJECIVESOFTHESTUDY
ToanalyzethefinancialpositionofPonniSugars.
ToanalyzedifferentcostsrelatedtoFinancialperformances.
ToforecastthefuturesalesofPonniSugars.

1.4 SCOPEOFTHESTUDY

Thebasisforfinancialplanningandanalysisisfinancialinformation,financialneed
to predict compare and evaluate the forms earning ability. It is also required to aid in
economicsdecisionmaking,investmentandFinancialperformancesoraccountingreports.
Theyshouldbepreparedverycarefullyandcontainasmuchinformationaspossiblebecause
theyareusefultojudgethefinancialefficiencyofthecompany.Thedataaboutthesugar
sector,thegovernmentpolicieswithrespecttothesector,andtheinformationaboutthe
companiesareallgatheredfromsecondarysources,availableonthewebsites,annualreports,
databankofthefirmandsoftwareusedbythefirm.

1.5 LIMITATIONSOFTHESTUDY

ThoughtherearemanySugarsMillsinTamilNaduonlyonemillhasbeentakenup
forthisstudy.
The financial performance of the company is analyzed by using five years data
alone.Ratiosofthepastarenottrueindicatorsoffuture.
Financial analysis is based on monetary information and the non monetary
informationignored.
Anychangeinthemethodsorproceduresofaccountingsystemlimitstheutility
offinancialperformances.
Itdoesnotconsiderthepricelevelchange.
Despitethis,asincereattemptismade.

1.6 CHAPERIZATIONOFTHESTUDY
Chapter1
Introduction of the project work includes introduction, statement of the problem,
objectivesofthestudy,scopeofthestudy,limitationsofthestudyandChapterizationofthe
study.
Chapter2
Itdealswiththeconceptsandreviewusedinthisprojectwork.Itincludesconceptsof
thestudy,reviewofrelatedliterature,companyprofileandproductprofile.
Chapter3
Itdealswithresearchmethodologyfollowedinthisprojectwork.Itincludesresearch
design,datacollectiondetailsandtoolsusedforthestudy.
Chapter4
Itdealswithofdataanalysisandinterpretation.
Chapter5
Itdealswithresults,findings,

suggestions,andconclusionofthestudy.

CHAPTER2
CONCEPTSANDREVIEW

2.1CONCEPTSOFTHESTUDY

FINANCIALPERFORMANCE

Financeisthelifebloodofabusiness.Financeisoneofthebasicfoundationsofall
kinds of economic activities. Like any other functional management in a firm (such as
production,making,salesetc.,)financeisavitalfunctionalorganizationofthefirm.Ifthe
financefunctiondoesnotoperatewill,thewholeorganizationalactivitywillbecollapsed.
Thesubjectmatteroffinancialmanagementhasbeendefinedinmanywaysdependingupon
thestudyofthesubject.
Thelevelofperformanceofabusinessoveraspecifiedperiodoftime,expressedinterms
of overall profits and losses during that time. Evaluating the financial performance of a
businessallowsdecisionmakerstojudgetheresultsofbusinessstrategiesandactivitiesin
objectivemonetaryterms.
Financialperformanceispreparedprimarilyfordecisionmaking.Itplaysadominantrole
insettingtheframeworkofmanagerialdecisions.ButtheinformationprovidedinFinancial
performanceisnotanendinitselfasnomeaningfulconclusionscanbedrawnfromthese
statementsalone.

2.2 REVIEWOFRELATEDLITERATURE
G.Malyadri,andB.SudheerKumar(2013)found15atIndiansugarindustryis
highlystragmentedwithorganizeandunorganizedplayers.Theunorganizedplayersmainly
produce gur and khandsari, the fess refined forms sugar. The sector has a number of
transformational opportunities. These opportunities have remained largely untapped. The
industryhasthepotentialtocatertothelargeandgrowingdomesticsugarconsumptionand
emergeasasignificantcarboncreditandpowerproducer.Further,theindustrycanimprove
its costcompetitiveness throughhigher farmproductivity andbymanagingthe domestic
productionvariationthroughinternationaltradewithafocusoncountriesintheIndianocean.
Thus,transformedsectorwouldbefesscyclicalwithgreateralignmentbetweensugarcane
andsugarprices,andwillhavestablediversifiedsourcesofrevenue.Thisstudywehaveused
analysisofIndianSugarIndustryfromRatiosPortOfView,ProfitabilityRatio,Turnover
Ratio.

Pany (1991) has sought to identify factors which influence corporate economic
performance. Important industrial characteristics which have been used by industrial
organization researchers as the determinants of financial performance are concentration,
market share, industry growth, research and development expenditure, advertisement
intensity,andsizeoffirmsintheindustry.Thesecharacteristicsmayallowfirmstobeina
better position to implement their strategies successfully and profitability. Consequently,
firmsmayreflectbetterperformanceonaccountoffavorableindustrialcharacteristics.

Attwood, D. W. (1995) found the reasons why cooperative sugar factories in


Maharashtra,Indiaaregiven:(1)successfulareexamined.Twocontradictoryexplanations
aregenerallythecooperativespiritalreadyprevalentinthevillagecommunitiesprovideda
sound basis for formal cooperatives; (2) village life is governed by a few wealthy and
powerful leaders who also control the cooperatives. Both explanations are rejected. It is
arguedthatdespiteahighlevelofinequalityinthepastandthepresent,informalcooperation
has flourished in the villages. The success of the sugar cooperatives rests on the long
standing habit forming selective alliances to overcome serious technical obstacles in
production.Thelargefarmersdependonthecanesuppliedbythesmallfarmerstomaintain

fullcapacityutilization,whichenablesthefactoriestopayhighcaneprices.

2.3COMPANYPROFILE

PonniSugars(Erode)LtdisanoffspringofPonniSugarsandChemicalsLtd(PSCL)
underaDemergerSchemesanctionedbytheHighCourtofMadrason10thSeptember2001.
IntermsoftheScheme,thecompanytookoverthebusinessofErodeUndertakingwith
concurrenttransferofmajorpartofstakeholdersinterestinPSCLtothecompany.
TheErodesugarmillwassetupwith1250TCDcapacityin1984inarecordtimeof12
months. It achieved full capacity crushing during the very first year of its commercial
operationthatenableddeclarationofamaidendividendof10%inthatveryfirstyear,a
recordintheannalsofsugarindustry.Itwasatrendsetterinmobilizingsurpluscaneduring
itsinfancystagefromneighboringsugarmillsandextendingcrushingseasontowellabove
industryaverage.Itscapacitywasexpandedto2500TCDIn1994.

TheErodesugarmillhassuccessfullyimplementedaninnovativeLiftIrrigationScheme
by bringing in dry lands under cane cultivation, utilizing the effluent discharge of the
neighbouring paper mill. This has helped secure multitudinal benefits providing a
dependableandperennialsourceofirrigationtofarmersintheneighbourhood,increaseof
land value manifold in the region, transforming the livelihood of local rural population,
resolvingtherawmaterialneedsofsugarandpapermillsandaddressingecologicalconersin
effluentdischarge.
Right from its inception, Ponni was structured on the concept of total diversion of
bagasseforpaper.Accordinglyitinstalledacoalfiredboilerandlateraddedamultifuel
boilerinplaceofconventionalbagassefiredboilers.Ithasabagassetieuparrangementwith
Seshasayee Paper and Boards Ltd for a mutually beneficial and rewarding long term
relationship.
Ponni is an efficient and quality producer of sugar, catering to both domestic and
international markets. It is a venerable partner for villagers growing sugarcane in its
neighbourhood. It enjoys cordial relationship with employees. It firmly believes in
transparent and fair dealings with all its stakeholders by following sound corporate
governancenormsbothinletterandspirit.

ACOMPANYWITHADIFFERENCE

Innovativestructuringasbackwardintegrationtopaper.
Firsttocommitbagasseforpaperandderivevalueaddition.
Pioneeredlongsugarseason.
Implementedauniqueeffluentirrigationschemeconvertingwastetowealth.
ISO9001:2008certifiedforQualityManagementsystem.
ISO14001:2004certifiedforEnvironmentalManagementsystem.

VISION
Toexcelastrustedsociallyresponsibleandcustomerdrivenorganizationproviding
maximumvaluetoallstakeholders.

MISSION
Tomanufacturequalityproductsatcompetitivecostthroughtechnologyandteam
work.

VALUES
Ethicalpractices
CustomerFocus
Commitment and transparent management
EmpowermentandAccountability
AdaptabilitytoChange
InnovationandCreativity

Emphasisonhumanresourcesdevelopment,costreduction,productivityenhancement
andresourceconservation.

FACTORYFACTSHEET

YearofEstablishment

1984

InitialCapacity(TCD)

1250

PresentCapacity(TCD)

3500

FactoryArea(acres)

33.51

ColonyArea(acres)

9.10

NoofEmployees
Regular232
Seasonal95

327

No.ofEmployeeQuarters

145

No.ofCultivators

7475

AnnualCaneAreaunder

21300

Registration(acres)

2.4PRODUCTPROFILE

PonniSugars(Erode)LimitedisanIndiabasedcompany.TheCompanyisengaged
inthemanufactureofsugaranditsbyproducts.TheCompanysproductsincludesugar,
bagasse and molasses. During the fiscal year ended March 31, 20012 (fiscal 2012), the
Companycrushed745,644tonsofcaneandproduced76464tonsofsugar.TheCompanys
plantislocatedinNamakkalDistrict,TamilNadu.

CHAPTER3
RESEARCHMETHODOLOGY

3.1INRODUCTION

Researchisoftendescribedasanactive,diligentandsystematicprocessofinquiry
aimedatdiscovering,interpretingandrevisingfacts.Thisintellectualinvestigationproduces
a greater understanding ofevents,behaviors or theories and makes practical applications
through laws and theories. The term research is also used to describe a collection of
informationaboutaparticularsubject,andisusuallyassociatedwithscienceandscientific
method.

BASICRESEARCH
Basicresearchisalsocalledasfundamentalorpureresearch.Itsprimaryobjectiveis
theadvancementofknowledgeandthetheoreticalunderstandingoftherelationsamongthe
variables. It is exploratory and often driven by researcher s curiosity or interest. It is
conductedwithoutanypracticalendinmind.Basicresearchoftenlaysdownthefoundation
forfurtherappliedresearch.

APPLIEDRESEARCH
Appliedresearchisdonetosolvespecific,practicalquestions.Itsprimaryobjectiveis
nottogainknowledgeforitsownsake.Itisusuallydescriptiveinnature.Itisalmostalways
doneonthebasisofbasicresearch.

3.2RESEARCHDESIGN
Researchdesignisthearrangementofconditionsforcollectionandanalysisofdatain
amannerthataimstocombinerelevancetoresearchpurposewitheconomyinprocedure.

Descriptiveresearch
Descriptiveresearchincludessurveysandfactfindingenquiriesofdifferentkinds.The
major purpose of descriptive research is descriptive of the state of affairs as it exists at
present.Insocialscienceandbusinessresearchwequiteoftenusetheterm.Examplepost
factoresearchfordescriptiveresearchstudies.Themaincharacteristicofthismethodisthat
theresearcherhasnocontroloverthevariables;hecanonlyreportwhathashappenedor
whatishappening.

3.3DATACOLLECTIONDETAILS

SECONDARYDATA
Secondarydatameansdatathatalreadyavailablei.e.,theyrefertothedatawhich
havealreadybeencollectedandanalyzedbysomeoneelse.Whentheresearcherutilizes
secondarydata,thenhehaslookintovarioussourcesfromwherehecanobtainthem.Inthis
caseheiscertainlynotconfrontedwiththeproblemsthatareusuallyassociatedwiththe
collectionoforiginaldata.Secondarydatamayeitherbepublisheddataorunpublisheddata.
Inthisstudy,thesecondarydatahasbeenprovidedwhereverrequired;thesecondary
datahasbeencollectedfromvarious sourceslikeBooks,Journals,Newspapers,Abstract
industriesreportandinternet.Thefollowingarethesourcesofinformationandmethodology
usedinthisstudy.

1. Acquiringmaterialfromthevariousreportsmadeavailablebythecompanyspecifically
relatedtothesugarsector.
2. Acquiringmaterialfromtheinternet
3. Reviewingrelevantbooksandbusinessjournals

3.4 TOOLSUSEDFORDATAANALYSIS

Ratioanalysis.
Inventoryratio.
Overheads.
Forecastingthesales.

RATIOANALYSIS
Itisconcernedwiththecalculationofrelationships,whichafterproperidentification
& interpretation may provide information about the operations and state of affairs of a
businessenterprise.Theanalysisisusedtoprovideindicatorsofpastperformanceintermsof
criticalsuccessfactorsofabusiness.Thisassistanceindecisionmakingreducesrelianceon
guessworkandintuitionandestablishesabasisforsoundjudgments.
LIQUIDITYMEASUREMENTRATIOS
Liquiditymeanstheabilityofaconcerntomeetitscurrentobligationsasandwhen
thesebecomedue.Thustheliquidityratiosindicatetheabilityofaconcerntomeetitsshort
termobligations.
CURRENTRATIOS
Current ratio is defined as the relationship between current assets and current
liabilities.Thusthetwobasiccomponentsofcurrentratioare:currentassetsandcurrent
liabilities.Currentassetsconsistofdebtors,billsreceivable,inventory,cashinhand,cash
inhand,atbank,prepaidexpensesandshortterminvestments.
Currentratio=Currentassets/Currentliabilities
Highertheratio,thebetteritis,howeverbuttoohighratioreflectsaninefficientuse

ofresources&toolowratioleadstoinsolvency.Theidealratioisconsideredtobe2:1

QUICKRATIOORACIDTESTRATIO
Quick ratio is a more rigorous test of liquidity than the current ratio. It can be
ascertainedbycomparingtheliquidassetstocurrentliabilities.Liquidassetsconsistinhand
andabank,debtorslessprovisionforbadanddoubtfuldebts,realizableinvestmentandother
currentassetswhichcanberealizedimmediately.

Quickratio=liquidassets/currentliabilities
Theidealratiois1:1.Anotherbeneficialuseistocomparethequickratiowiththe
current ratio. If the current ratio is significantly higher, it is a clear indication that the
company'scurrentassetsaredependentoninventory.
PROFITABILITYINDICATORSRATIOS
Profitabilityis the abilityofa business to earnprofit overaperiod oftime.The
profitabilityratiosshowthecombinedeffectsofliquidity,assetmanagement(activity)and
debtmanagement(gearing)onoperatingresults.Theoverallmeasureofsuccessofabusiness
istheprofitabilitywhichresultsfromtheeffectiveuseofitsresources.

GROSSPROFITMARGIN
Acompany'scostofgoodssoldrepresentstheexpenserelatedtolabor,rawmaterials
andmanufacturingoverheadinvolvedinitsproductionprocess.Thisexpenseisdeducted
fromthecompany'snetsales/revenue,whichresultsinacompany'sgrossprofit.Thegross
profitmarginisusedtoanalyzehowefficientlyacompanyisusingitsrawmaterials,labor
andmanufacturingrelatedfixedassetstogenerateprofits.

GrossProfitMargin=(GrossProfit/NetSales)*100

Highertheratio,thehigheristheprofitearnedonsales.

OPERATINGPROFITMARGIN
Bysubtractingselling,generalandadministrativeexpensesfromacompany'sgross
profitnumber,wegetoperatingincome.Managementhasmuchmorecontroloveroperating
expensesthanitscostofsalesoutlays.ItMeasurestherelativeimpactofoperatingexpenses.

OperatingProfitMargin=(OperatingProfit/NetSales)*100

Lowertheratio,lowertheexpenserelatedtothesales.
NETPROFITMARGIN
Netprofitratioestablishestherelationshipbetweennetprofitandsales.Iindicatethe
efficiencyofthemanagementinmanufacturing,selling,administrationandotheractivitiesof
theconcern.

NetProfitMargin=(OperatingProfit/NetSales)*100
Highertheratio,themoreprofitablearethesales.
RETURNONASSETS
Thisratioillustrateshowwellmanagementisemployingthecompany'stotalassetsto
makeaprofit.

ReturnonAssets=NetIncome/AverageTotalAssets
Higherthereturn,themoreefficientmanagementisinutilizingitsassetbase.

FINANCIALLEVERAGE/GEARINGRATIOS
Theseratiosindicatethedegreetowhichtheactivitiesofafirmaresupportedby
creditorsfundsasopposedtoownersastherelationshipofownersequitytoborrowedfunds
isanimportantindicatoroffinancialstrength.Thedebtrequiresfixedinterestpaymentsand
repaymentoftheloanandlegalactioncanbetakenifanyamountsduearenotpaidatthe
appointedtime.Arelativelyhighproportionoffundscontributedbytheownersindicatea
cushion(surplus)whichshieldscreditorsagainstpossiblelossesfromdefaultinpayment.
EQUITYRATIO
Thisratiomeasuresthestrengthofthefinancialstructureofthecompany.

EquityRatio=(OrdinaryShareholdersInterest/Totalassets)*100

Ahighequityratioreflectsastrongfinancialstructureofthecompany.Arelatively
lowequityratioreflectsamorespeculativesituationbecauseoftheeffectofhighleverage
andthegreaterpossibilityoffinancialdifficultyarisingfromexcessivedebtburden.

OPERATINGPERFORMANCERATIOS
Theseratioslookathowwellacompanyturnsitsassetsintorevenueaswellashow
efficiently a company converts its sales into cash, i.e. how efficiently & effectively a
companyisusingitsresourcestogeneratesalesandincreaseshareholdervalue.Thebetter
theseratios,thebetteritisforshareholders.
FIXEDASSETSTURNOVER
Thisratioisaroughmeasureoftheproductivityofacompany'sfixedassetswith
respecttogeneratingsales.

FixedAssetsTurnover=Sales/NetFixedAssets

Highfixedassetsturnoversarepreferredsincetheyindicateabetterefficiencyin
fixedassetsutilization.
TOTALASSETSTURNOVER
Thisratioindicatestheefficiencywithwhichthefirmusesallitsassetstogenerate
sales.
TotalAssetsTurnover=Sales/TotalAssets

Higherthefirmstotalassetturnover,themoreefficientlyitsassetshavebeenutilized.

COSTSHEET
CostSheetsarestatementssettingoutthecostsofaproductgivingdetailsof
allthecosts.Presentationofcostinginformationdependsuponthemethodofcosting.
Acostsheetcanbepreparedweekly,monthly,quarterlyorannually.
Inacostsheetbesidestotalexpenditureincurred,costperunitofoutputin
caseofeachelementofcostcanbeshowninaseparatecolumn.Thecostsheetshould
givecostperunitinthepreviousperiodforthepurposesofcomparison.
INVENTORYTURNOVER
Itmeasuresthestockinrelationtoturnoverinordertodeterminehowoftenthestock
turnsoverinthebusiness.Itindicatestheefficiencyofthefirminsellingitsproduct.

InventoryTurnover=Sales/AverageInventory

Highratioindicatesthatthereisalittlechanceofthefirmholdingdamagedorobsoletestock.

INVENTORYTOCURRENTASSETS

Itistherelationshipbetweenclosinginventoryandcurrentassets.

InventorytoCurrentAssets=ClosingInventory/CurrentAssets

This ratioinventoryindicatestheamountofinvestmentininventoryperrupeeof
currentassetinventory.Thehighertheproportionofinventorytocurrentassetthelowerthe
liquidityascomparedtoothercurrentasset.

INVENTORYTONETWORKINGCAPITAL

Itistherelationshipbetweeninventoryandnetworkingcapital.
InventorytoNetWorkingCapital=Closinginventory/NetWorkingCapital

Thisratioshowstheamountofinventoryperrupeeofequityandlongtermfinancial
positionofcurrentasset.Ahighratiomeansgreatsamountofnetworkingcapitalinvestment
ininventoryandalowratiomeansaloweramountofnetworkingcapitalinvestmentin
inventory.

OVERHEADS
Overheadistheaggregateofindirectmaterialcost,indirectwagers(indirectlabor
cost)andindirectexpenses.

OverHeads=TotalOverheads/Netsales*100

DIRECTMATERIALS
Referstothecostofmaterialswhichbecomeamajorpartofthefinishedproduct.
Suchmaterialscanbeidentifiedintheproduct,measuredandchargeabletotheproduct.For
example,Plywood,woodenbattens,fabricfortheseatandtheback,nails,screws,glue.
OverheadRate=productionOverheadExpenses(Budgeted)/anticipatedDirect
MaterialCost*100

DIRECTLABOUR
Itisthecostoflabour,whichisdirectlyengagedintheproductiveoperations.Inother
wordstheworkerwhoworksdirectlywithrawmaterialsinconvertingthemintofinished
goodsrepresentsdirectlabour.Forexample,Sawyers,drillers,assemblers,painters,polishers,
upholsterers.

OverheadRate=productionOverheadExpenses/DirectLabourCost*100

TRENDANALYSIS
Thisisbestmethodforobtainingthetrendvalues.Itprovidesaconvenientbasisfor
obtainingthelineofbestfitinaseries.Lineofthebestfitisalinefromwhichthesumofthe
deviationsofvariouspointsoneithersideiszero.Thestraightlinetrendhasanequationof
thetypes:Y=a+bx,whereYrepresentstheestimatedvaluesofthetrend,Xrepresentsthe
deviationsinthetimeperiod:aandbareestimatedbysolvingthefollowingtwonormal
equations.

Y=Na+aX
XY=aX+bX2

WhereNrepresentsnumberofyearsforwhichdataisgiven.ThevariablesXcanbe
measuredfromanypointoftimeasoriginbecausethenegativevaluesoffirsthalfofthe
times series will equalize the positive values in the second half of the series which
symbolicallygivesx=0.Whenx0,thetwonormalequationsforfindingtheconstantsa
andbwillbe

Y=Na=a=Y/N=Y
XY=bx2=b=XY/X2

CHAPTER4
DATAANALYSISANDINTERPRETATION

4.1ANALYSISOFTHEDATA
Analysisofthedatameansstudyingthetabulatedmaterialinordertodetermineifhe
rentfactsormeaning.Itinvolvesbreakingdownexistingcomplexfactorsintosimplerparts
andputtingtheparttogetherinnewarrangementforpurposeofinterpretation.Aplanof
analysiscanandshouldbepreparedinadvancebeforetheactualcollectionmaterials.A
preliminaryanalysisontheskeletonplanshould,astheinvestigationproceeds,developinto
acomplete,finalanalysisenlargeandreworkedasandwhennecessary.Theprocessrequires
flexible and open mind. No similarities, differences, trends and outstanding should go
unnoticed, large division of materials should be broken down in to smaller unit and
rearrangedinnewcombinationstodiscovernewfactorsandrelationship.Datashouldstudied
fromasmanyanglesaspossibletofindoutandnewsfacts.
Whentheplanofanalysishasnotbeenmadebeforehand,therearefourhelpful
modestostartwiththeanalysisofdata:
Tothinktermofsignificanttablesthatthedatapermit.
Toexaminecarefullythestatementoftheproblemandtheearlieranalysisandto
studytheoriginalrecordsofthedata.

TABLE4.1.1
LIQUIDITYMEASUREMENTRATIOS
CURRENTRATIOS
Year

Currentassents

Currentliabilites

Ratio

2013

108.6

53.3

2.037523

2012

79.1

68.41

1.156264

2011

93.65

49.2

1.903455

2010

124.34

65.72

1.891966

2009

66.59

41.36

1.61001

INFERENCE:
Theabovetablerevealsthatthehighestcurrentratiowasrecorded(2.037523)inthe
year2013.Thelowestcurrentratio(1.156264)recordedintheyear2012.Thecurrentratio
wasfluctuatingduringtheperiod2009to2013.

CHART4.1.1

Currentratios
2.5
2
1.5

1
0.5
0

Current
ratios

Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

TABLE4.1.2
QUICKRATIOORACIDTESTRATIO
Year
2013

Liquidassets
90.3

Currentliabilities
53.3

Ratio
0.652345

2012

66.56

68.41

0.470107

2011

88.41

49.2

0.550203

2010

109.02

65.72

0.527237

2009

62.48

41.36

0.378868

INFERENCE:
Theabovetableindicatesthatthehighestquickratiowasrecorded(0.652345)inthe
year 2013. The lowest quick ratio (0.378868) recorded in the year 2012. The ratio was
fluctuatingtrendduringthestudyisfrom2009to2013.

CHART4.1.2

Quick Ratio or Acid Test Ratio


0.7
0.6
0.5
0.4

Quick Ratio or Acid Test

0.3

Ratio

0.2
0.1
0
Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

TABLE4.1.3
PROFITABILITYINDICATORSRATIOS
GROSSPROFITMARGIN
Year

Grossprofit

Netsales

Ratio

2013

26.87

212.48

12.6459

2012

31.69

268.99

11.78111

2011

15.18

270.69

5.607891

2010

73.27

245.72

29.81849

2009

22.87

138.62

16.49834

INFERENCE:
Theabovetableshowsthatthehighestgrossprofitratiowas(29.81849)intheyear
2010.Thelowestgrossprofitratio(5.607891)recordedintheyear2011.Thetrendis
fluctuatingtrend.Theperiodsare2009to2013.

CHART4.1.3

GrossProfitMargin
30
25
20
15
10
5
10

Gross Profit
Margin

Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

TABLE4.1.4
OPERATINGPROFITMARGIN
Year

Operatingprofit

Netsales

Ratio

2013

17.67

209.45

8.316077

2012

29.43

159.82

10.94093

2011

15.01

112.7

5.545088

2010

71.31

113.94

29.02084

2009

20.61

80.38

14.86798

INFERENCE:
Theabovetableshowsthatthehighestoperatingprofitratiowas(29.02084)inthe
year2010.Thelowestoperatingprofitratio(5.545088)recordedintheyear2011.Thetrend
isfluctuatingtrend.Theperiodsare2009to2013.

CHART4.1.4

OperatingProfitMargin
30
25
20
15

Operating Profit Margin

10

5
0
Mar ' Mar ' Mar ' Mar ' Mar '
13
12
11
10
09

TABLE4.1.5
NETPROFITMARGIN
Year

Netsales

Sales

Ratio

2013

14.09

212.48

6.631212

2012

28.24

268.99

10.49853

2011

13.53

270.69

4.998338

2010

69.52

245.72

1.251711

2009

18.72

138.62

0.512814

INFERENCE:
Theabovetableindicatesthatthehighestnetprofitratiowas(10.49853)intheyear
2012.Thelowestnetprofitratio(0.512814)recordedintheyear2009.Theratiotrendis
decreasingtrend.Theperiodsare2009to2013.

CHART4.1.5

NetProfitMargin
12
10
8
6
4
2
0

Net Profit Margin

Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

TABLE4.1.6
RETURNONASSETS
Year

NetIncome

2013

17.67

2012

AverageTotal
Assets

Ratio

104.725

0.168728

29.43

79.91

0.368289

2011

15.01

56.35

0.266371

2010

71.31

56.97

1.251711

2009

20.61

40.19

0.512814

INFERENCE:
Theabovetableshowsthatthehighestreturnontoassetratiowas(1.251711)inthe
year2010.Thelowestreturnonassetratio(0.168728)intheyear2013.Theratiotrendis
fluctuatingtrend.Theperiodsare2009to2013.

CHART4.1.6

ReturnonAssets
1.4
1.2
1
0.8
0.6
0.4
0.2
0
Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

Return on
Assets

TABLE4.1.7
FINANCIALLEVERAGE/GEARINGRATIOS
EQUITYRATIO
Year

Totalassets

Ratio

2013

OrdinaryShareholders
Interest
3.58

209.45

1.709238

2012

1.19

159.82

0.744588

2011

1.48

112.7

1.313221

2010

1.79

113.94

1.571002

2009

1.89

80.38

2.351331

INFERENCE:
Theabovetablerevealsthatthehighestequityratiowas(2.351331)intheyear2009.
Thelowestequityratiowas(0.744588)intheyear2012.Theratiowasfluctuatingtrend
duringthestudyperiod2009to2013.

CHART4.1.7

EquityRatio
2.5
2
1.5

1
0.5
0
Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

Equity
Ratio

TABLE4.1.8
OPERATINGPERFORMANCERATIOS
FIXEDASSETSTURNOVER
Year

Sales

NetFixedAssets

Ratio

2013

212.48

133.09

1.596514

2012

268.99

44.17

6.08988

2011

270.69

45.21

5.987392

2010

245.72

47.03

5.22475

2009

138.62

47.71

2.905471

INFERENCE:
Theabovetablerevealsthatthehighestfixedassetsturnoverratiowas(6.08988)in
theyear2012.Thelowestfixedassetsturnoverratio(1.596514)intheyear2013.Theratio
trendisfluctuatingtrend.Theperiodsare2009to2013.

CHART4.1.8

FixedAssetsTurnover
7
6
5
4
3
2
1

Fixed Assets
Turnover

0
Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

TABLE4.1.9
TOTALASSETSTURNOVER
Year

Sales

TotalAssets

Ratio

2013

212.48

209.45

1.014466

2012

268.99

159.82

1.683081

2011

270.69

112.7

2.401863

2010

245.72

113.94

2.156574

2009

138.62

80.38

1.724558

INFERENCE:
Theabovetablerevealsthatthehighesttotalassetsturnoverratiowas(2.401863)in
theyear2011.Thelowesttotalassetsturnoverratiowas(1.014466)intheyear2013.The
ratiotrendisfluctuatingtrendfrom2009to2013.

CHART4.1.9

TotalAssetsTurnover
3
2.5
2
1.5
1

Total Assets Turnover

0.5
0
Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

TABLE4.1.10
INVENTORYTURNOVER
Year

Sales

AverageInventory

Ratio

2013

212.48

36.915

5.755926

2012

268.99

23.47

11.46101

2011

270.69

33.29

8.131271

2010

245.72

44.845

5.479318

2009

138.62

25.46

5.444619

INFERENCE:
TheabovetablerevealsthatthehighestInventoryturnoverratiowas(11.46101)in
theyear2012.ThelowestInventoryassetsturnoverratiowas(5.444619)intheyear2009.
Theratiotrendisfluctuatingtrendfrom2009to2013.

CHART4.1.10

InventoryTurnover
14
12
10
8
6
4
2
0
Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

Inventory
Turnover

TABLE4.1.11

INVENTORYTOCURRENTASSETS

Year

Closinginventory

Currentasset

Ratio

2013

51

108.6

0.4696132

2012

47

79.1

0.5941845

2011

113

93.65

1.2066203

2010

125.73

124.34

1.0111790

2009

82.76

66.59

1.2428292

INFERENCE:
The above table reveals that the highest Inventory to current assets ratio was
(1.2428292)intheyear2009.ThelowestInventorytocurrentassetsratiowas(0.4696132)in
theyear2013.Theratiotrendisfluctuatingtrendfrom2009to2013.

CHART4.1.11

InventorytoCurrentAssets
1.4
1.2
1
0.8
current
0.4

0.6

Inventory to
assets

0.2
10
Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

TABLE4.1.12
INVENTORYTONETWORKINGCAPITAL

Year

Closinginventory

Networkingcaptial

Ratio

2013

51

129.14

0.3949202

2012

47

111.54

0.4213734

2011

113

96.25

1.1740259

2010

125.73

79.64

1.5787292

2009

82.76

46.79

1.7687540

INFERENCE:
TheabovetablerevealsthatthehighestInventorytonetworkingcapitalratiowas
(1.7687540) in the year 2009. The lowest Inventory to net working capital ratio was
(0.3949202)intheyear2013.Theratiotrendisfluctuatingtrendfrom2009to2013.

CHART4.1.12

InventorytoNetWorkingCapital
1.8
1.6
1.4
1.2
1

Inventory to net
working
capital

0.8
0.6
0.4
0.2
0
Mar '
13

Mar ' Mar '


12
11

Mar '
10

Mar '
09

TABLE4.1.13
OVERHEADS
Year

Totaloverheads

Netsales

Ratio

2013

2115

21911

0.0965268

2012

2230

27557

0.0809231

2011

2086

28095

0.0742480

2010

1469.72

11951.7

0.1229716

2009

1160.69

14127.87

0.0821560

INFERENCE:
Theabovetablerevealsthatthehighestoverheadsratiowas(0.1229716)intheyear
2010.The lowestoverheads ratiowas (0.0742480)inthe year2011.Theratio trend is
fluctuatingtrendfrom2009to2013.

CHART4.1.13

OverHeads
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
Mar ' 13 M ar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

30.6680472

TABLE4.1.14
DIRECTMATERIALS

Year

Anticipateddirect
materialcost

Ratio

2013

Production
overheadexpenses
(budgeted)
16994

7109

2.3904909

2012

21857

4325

5.0536416

2011

24657.11

6338

3.8903613

2010

14407.15

8670.11

1.6617032

2009

12947.9

4805.17

2.6945768

INFERENCE:
Theabovetablerevealsthatthehighestdirectmaterialsratiowas(5.0536416)inthe
year2012.Thelowestdirectmaterialsratiowas(1.6617032)intheyear2010.Theratio
trendisfluctuatingtrendfrom2009to2013.

CHART4.1.14

DirectLabour
6
5
4
3
2
1
0
Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

dire ct
labour

TABLE4.1.15
DIRECTLABOUR
Year

Directlabourcost

Ratio

2013

Production
overheadexpenses
16994

989

17.1830131

2012

21857

893

24.4759238

2011

24657.11

804

30.6680472

2010

14407.15

919.87

15.6621587

2009

12947.9

883.33

14.6580553

INFERENCE:
Theabovetablerevealsthatthehighestdirectlabourratiowas(30.6680472)inthe
year2011.Thelowestdirectlabourratiowas(14.6580553)intheyear2009.Theratiotrend
isfluctuatingtrendfrom2009to2013.

CHART4.1.15

DirectLabour
35
30
25
20
15
10
5
0
Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

dire ct
labour

TABLE4.1.16
TRENDANALYSES
Year

Sale

x2

xy

2009

138.62

-2

-277.24

2010

245.72

-1

-245.72

2011

270.69

268.99

268.99

212.48

424.96

2012
2013

Y=1136.
5

x2=10 xY=170.99

Total
1136.5/5
=227.3

170.99/10
=17.099

TREND VALUES
Year

Trend values

2014

-2

329.894

2015

-1

346.93

2016

365.092

2017

381.1991

2018

400.29

INFERENCE:
Thetrendanalysisisshowsthatthereisaincreaseinthesalesinyear2018.This
showsthereisagoodsalespositioninthecompany.

CHART4.1.16

450
400
350
300
250
TREN D
VALUES

200
150
100
50
0
2014

2015

2016

2017

2018

CHAPTER5
RESULTSANDDISCUSSION

5.1 FINDINDSOFTHESTUDY

TheCurrentassetsratioofthecompanyishighestin(2.03752)intheyear2013.
TheQuickratioofthecompanyishighestin(0.652345)intheyear2013.

TheGrossprofitratioofthecompanyishighestin(29.81849)intheyear2010.
TheOperatingprofitmarginofthecompanyishighestin(29.02084)intheyear2010.
TheNetprofitmarginofthecompanyishighestin(10.49853)intheyear2012.
TheReturnonassetsratioofthecompanyishighestin(1.251711)intheyear2010.
TheEquityratioofthecompanyishighestin(2.351331)intheyear2009.
TheFixedassetsturnoverofthecompanyishighestin(6.08988)intheyear2012.
TheTotalassetsturnoverofthecompanyishighestin(2.401863)intheyear2011.
TheInventoryturnoverofthecompanyishighestin(11.46101)intheyear2012.
TheInventorytocurrentassetsofthecompanyishighestin(1.2428292)intheyear
2009.
TheInventorytonetworkingcapitalofthecompanyishighestin(1.7687540)inthe
year2009.

TheOverheadsofthecompanyishighestin(0.1229716)intheyear2010.
TheDirectmaterialsofthecompanyishighestin(5.0536416)intheyear2009.
TheDirectlabourofthecompanyishighestin(30.6680472)intheyear2011.
Thecompanywillattainthemaximumsales(400.29)intheyear2018.

5.2SUGGESTIONS

Thecompanymaydecreaseitsinventoryturnoveronbasisoforderforsales
andmarketpotential.Thecompanymayreducethevariableexpensesrawmaterial
consumed,powerandfuel,employeeexpenses,administrationandsellingexpensesit
willleadstomoreoperatingprofit.
The company may continuously maintain its proper planning and control
techniquesinordertoregulateandoptimizetheuseofcashbalance.
Thecompanymaybemaintainedthecurrentassetsproperlysothatitwilllead
tobetterpositionofworkingcapital.Thecompanymayreducethecreditorsposition
byrepayingtheloansinshortperiodforinbetterpositioninfuture.

5.3CONCLUSION

Financialperformanceisbasicinstruments,whichprovidesallinformationaboutthe
financialpositionandoperationalefficiencyofthecompany.Thecurrentratio,quickratio,
grossprofitmayincreaseinthisrespect.Itisconcludedthattheoverallfinancialperformance
wassatisfactoryasperanalysis.Thecompanyhastotakeappropriatestepstocontrolthe
cost,increasethevolumeofsales,profitinthefutureyears.
PonniSugarsconsistsofhighcapitalandinvestmentbutbusinessperformancewillbe
onlybeinginmoderatelevel.Ifthefirms concentratemoreonthefinancialaspects and
reducetheunwantedcosts,willreachthehigherprofitablepositioninthenearfuture.

BALANCESHEET(Rscrores)
Particulars

Mar'13

Mar'12

Mar'11

Mar'10

Mar'09

12
Months

12
Months

12
Months

12
Months

12
Months

8.6

8.6

8.6

8.6

8.6

Reserves&Surplus
NetWorth
SecuredLoan
UnsecuredLoan
TOTALLIABILITIES
Assets

120.54
129.14
80.31
0
209.45

102.94
111.54
48.28
0
159.82

87.65
96.25
16.45
0
112.7

71.04
79.64
34.3
0
113.94

38.2
46.79
33.58
0
80.38

GrossBlock
()Acc.Depreciation
NetBlock

172.78
39.69
133.09

73.05
28.88
44.17

71.68
26.47
45.21

70.95
23.92
47.03

69.62
21.91
47.71

0.27

84.17

14.75

0.15

Investments
Inventories
SundryDebtors
CashandBank

20.79
73.83
16.89
1.41

20.79
46.94
11.85
0.69

8.29
66.58
3.52
1.72

8.29
89.69
12.27
3.06

7.29
50.92
1.72
2.39

LoansandAdvances
TotalCurrentAssets

16.47
108.6

19.62
79.1

21.83
93.65

19.33
124.34

11.56
66.59

CurrentLiabilities

43.98

56.76

47.2

45.37

36.98

9.32

11.65

20.35

4.38

53.3

68.41

49.2

65.72

41.36

55.3
0

10.69
0

44.45
0

58.62
0

25.23
0

209.45

159.82

112.7

113.94

80.38

Liabilities
ShareCapital

CapitalWorkinProgress

Provisions
TotalCurrent
Liabilities
NETCURRENT
ASSETS
Misc.Expenses
TOTAL
ASSETS(A+B+C+D+E)

PROFITANDLOSSACCOUNT(Rscrores)

Mar'13

Mar'12

Mar'11

Mar'10

Mar'09

NetSalesTurnover
OtherIncome
TotalIncome
EXPENSES
StockAdjustments
RawMaterialConsumed
PowerandFuel
EmployeeExpenses
AdministrationandSellingExpenses

212.48
2.41
214.89

268.99
1.03
270.02

270.69
2.92
273.61

245.72
1.1
246.82

138.62
0.71
139.33

27.88
169.87
0
12.34
0

20.79
171.53
0
11
0

23.45
197.37
0
10.56
0

39.08
175.14
0
9.2
0

11.9
97.77
0
8.83
0

ResearchandDevelopmentExpenses
ExpensesCapitalized
OtherExpenses
ProvisionsMade
TOTALEXPENSES
OperatingProfit
EBITDA
Depreciation
EBIT
Interest
EBT
Taxes
ProfitandLossfortheYear

0
0
31.28
0
185.61
26.87
29.28
11.61
17.67
3.58
14.09
6.95
21.04

0
0
33.98
0
237.3
31.69
32.72
3.29
29.43
1.19
28.24
8.33
19.91

0
0
24.13
0
255.51
15.18
18.1
3.09
15.01
1.48
13.53
9.03
4.5

0
0
27.19
0
172.45
73.27
74.37
3.06
71.31
1.79
69.52
18.56
50.96

0
0
21.05
0
115.75
22.87
23.58
2.97
20.61
1.89
18.72
6.46
12.26

ExtraordinaryItems
PriorYearAdjustment
OtherAdjustments
ReportedPAT
KEYITEMS
ReservesWrittenBack
Equitycapital
ReservesandSurplus
EquityDividendRate
Agg.NonPromoterShares(lacks)

0
0
0
19.11

0
0
0
17.79

0
0
0
18.61

0
0
0
36.85

0
0
0
12.26

0
8.6
120.54
0
44.93

0
8.6
102.94
0
49.18

0
8.6
87.65
0
46.75

0
8.6
71.04
0
47.25

0
8.6
38.2
0
4.73

Agg.NonPromoterHolding(%)

52.25

57.2

54.37

54.96

54.96

GovernmentShare
CapitalAdequacyRatio
EPS(Rs.)

0
0
22.22

0
0
20.69

0
0
21.64

0
0
42.86

0
0
142.58

REFERENCES

BOOKS:
Gokul Sinha ,Financial performance Analysis, Published by Asoke K.Ghosh, PHI
learningPrivateLimited,NewDelhi,2010.
M.SarngadharanandS.RajithaKumar,FinancialAnalysisforManagementDecisions,
publishedbyAsokeK.Ghosh,PHIlearningPrivateLimited,NewDelhi,2011.

D.Chandra Bose, Fundamentals of Financial Management, Published by Asoke


K.Ghosh,PHIlearningPrivateLimited,NewDelhi,2012.
S.P.JainandK.L.Narang,CostAccounting,PublishedbyMrs.UshaRajkumarfor
KalyaniPublishers,NewDelhi,2013.

JOURNAL:
G.Malyadri,andB.SudheerKumar,Indiansugarindustry,publishedbyInternational
JournalofManagementandStrategy,2013.
Kothari C.R., Research Methodology Methods & Tec hniques,Wishawa
Prakashan,NewDelhi,2003.
D. W. Attwood, cooperative sugar International Journal of Management and
Strategy,1995.

WEBSITES:
www.ponnisugars.com
www.economictimes.indiatimes.com
www.proque
st.com