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SUBMITTED TO:
ER. PRABHJOT SINGH
MECHANICAL DEPARTMENT
BRAHM KAMAL POLY COLLEGE, FATTUWAL
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ACKNOWLEDGMENT
GAGANDEEP
5th Sem Mech. Engg
(141165384303)
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1.2) History:
Sugar is said to have originated in India. During the Gupta dynasty in
India, the extraction of sugar was clearly known to the Indians. Experts identify
the Pacific region and certain parts of India like the North East as real locations
where the sugar cultivation was practised. This was taken to the western
hemisphere by the Arab traders who borrowed the techniques from India and
subsequently, set up mills to commercially produce this highly useful
agricultural product. The production of sugar spread to countries like Spain and
the Portuguese took it to South America.
During the eighteenth century, sugar production became increasingly
mechanized and sugar market went through a phase of great boom. New
technology was developed as sugar became a very popular item and specialized
procedures were developed for the large scale processing of sugar. At first, the
sugar was used mainly for tea and then, went into the making of confectionery
and chocolates. The Dutch took sugar to the Carribean Islands and today, this
area is the largest source of sugar in the world. With the introduction of sugar
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plantations in the Carribean islands on a large scale, the price of sugar fell
substantially and in Britain, all classes of people took to sugar and it has
become a part of their routine. Earlier, it was relegated to the upper echelons of
society, it, then, became a common commodity and became sufficiently cheaper.
Maximum consumption of sugar has been recorded from Belgium and the least
consumption is from Ethopia with an amount of three kilos per year.
grades.
3)Brown sugars
Brown sugars are formed when sugars form fine crystals with high
molasses content or from coating white refined sugar with a cane molasses
syrup. Colour and taste becomes stronger with increasing molasses content . On
being exposed to air, they tend to harden and proper handling of this. Natural
sugars are found in their natural form and covers the most unrefined sugars and
includes the fruits, grains and vegetables. The World Health Organization has
approved the natural sugars as carbohydrates for unrestricted consumption
purposes.
1.10)
tonnes)
Season
2009
Opening stock as on 1st 80.00
October
Production
during
the 147.50
season
Imports
25.00
Total availability
252.50
Domestic consumption*
220.00
Exports
2.00
Closing stock
30.50
1
2
3
4
5
6
7
1.11)
Sr.
1
2
3
4
5
6
Crushing Season
2008-2009
2007-2008
1.12)
501
455
21.391
278.872
28.328
10.16
19.797
188.672
19.267
10.21
69.0
66.9
2.5) METHODOLOGY:
No study is completed until a proper method is adopted. The level of any
systematic research depends upon collection of data by keenly observing the
existing conditions, classification and interpretation of data and at the end
formation and generalization and conclusion.
The research design should be such that it maximizes reliability of the
evidence collected. The data required for the preparation of financial statement
analysis and working capital management was collected through Primary and
Secondary data.
Primary Data:
Primary data required for the study is collected from the Vishwanath Sugars ltd
Head office.
Secondary Data:
This includes information relating too
Annual reports.
Company brouchers, magazines, periodical reports.
Balance sheets, profit and loss accounts.
2.6) TOOLS FOR COLLECTING DATA:
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INTRODUCTION TO FINANCE
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Finance has been called The science of money. In studies the principles
and methods of obtaining control of money from those have saved it and the
administration of it by those in to whose control it passes.
Finance may be said to be circulatory system of the economic body,
making possible needed co-operation between the many units of activity. In an
organization composed of myriad separate enterprises, each working for its own
end but simultaneously contributing to the system as whole, some forces is
necessary to bring about direction and co-ordination. Something must be direct
the floe of economic activity and facilitate its smooth operation. Finance is the
agent that produces this result.
Finance is the business activity which is concerned with the acquisition
and conversation of capital funds in meeting financial needs and overall
objective of a business enterprise.
Introduction:
The management of working capital is an important and time consuming
aspect of management finance. Sufficient working capital must be provided in
order to take care of the normal process of purchasing raw materials and
supplies, turning out finished products, selling the products, waiting for
payments to be made. If the original estimates of working capital are
insufficient, some emergency measures must be restored to or the business will
come to dead stop. Inadequate levels of working capital can results in serious
financial difficulties, and even bankruptcy; exclusive levels are likely to reduce
corporate profitability and ultimately cause the firms effectiveness and market
value to decline.
Meaning of Working Capital:
In accounting working capital is the difference between the inflow and
outflow of funds. In other words, it is the net cash inflow. It is defined as the
excess of current assets over current liabilities and provision.
Definition of Working Capital:
Working Capital is the amount of funds necessary to cover the cost of
operating the enterprises.
The firm cannot pay day-to-day expenses of its operations and it creates
inefficiencies, increases costs and reduces the profits of business.
It becomes impossible to utilize efficiently the fixed assets due to non
availability of liquid funds.
The rate of return on investments also falls with the shortage of working
ability to realize values in money the most of liquid assets. It refers to the ability
to pay in cash, the obligations that are due.
The corporate liquidity has two dimensions viz, quantitative and qualitative
concepts. The quantitative concept includes the quantum, structure and
utilization of liquid assets and in the qualitative concept it is the ability to meet
all present and potential demands on cash from any source in a manner that
minimizes cost and maximizes the value of the firm. Thus, corporate liquidity is
a vital factor in business-excess liquidity, though a guarantor of solvency would
reflect lower profitability, deterioration in managerial efficiency, increased
speculation and unjustified expansion, extension of too liberal credit and
dividend policies.
The important ratios in measuring short term solvency are:
Current ratio.
Quick ratio or liquid ratio.
1. Current ratio: This ratio measures the solvency of the company in the
short-term. Current assets are those assets which can be converted into
cash within a year. Current liabilities and provisions are those liabilities
that are payable within a year. A current ratio of 2:1 indicates a highly
solvent position. A current ratio of 1.33:1 is considered by banks as the
minimum acceptable level for providing working capital finance. A high
current ratio may be due to the pilling up of inventory, inefficiency in
collection of debtors, high balances in cash and bank accounts with out
the proper investment.
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Profitability Ratios:
The purpose of study and analysis of profitability ratios are to help assessing the
adequacy of profits earned by the company and also to discover whether
profitability of the firm is the net result of a large number of policies and
decisions. The profitability ratios show the combined effects of liquidity, asset
management and debt management on operating results. Profitability ratios are
measured with reference to sales, capital employed, total assets employed,
shareholders funds etc. The major profitability ratios are as follows:
Return on capital employed or return on investment (ROCE or ROI).
Earnings per share (EPS).
Cash earnings per share (Cash EPS).
Gross profit margin.
Net profit margin.
Cash profit margin.
Return on assets.
Return on Net worth (Return on shareholders funds).
1. Return on capital employed: The strategic aim of business enterprises
is to earn a return on capital. If in any particular case, the return on the
long-run is not satisfactory then the deficiency should be corrected or the
activity be abandoned for a more favorable one. Measuring the historical
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Earnings
per share
(EPS):
The
objective
of
financial
100
4. Net profit margin: The ratio is designed to focus attention on the net
profit margin arising from business operations before interest and tax is
deducted. The convention is to express profit after tax and interest as a
percentage of sales. A draw back is that the percentage which a result
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Cash Profit
Sales
100
Operating ratios:
The ratio of all operating expenses (i.e. materials, labour, factory overheads,
administration, and selling expenses) to sales is the operating ratio. A
comparison of the operating ratio would indicate whether the cost content is
high or low in the figure of sales. If the annual comparison shows that the sales
has increased the management would be naturally interested and concerned to
know as to which element of the cost has gone up.
1) Material cost ratio.
2) Administrative expenses ratio.
3) Labour cost ratio.
4) Selling and distribution expenses ratio.
5) Factory overhead ratio.
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G T ROAD
MUKERIAN
4.1) PROFILE OF THE COMPANY
Vishwanath Sugars Ltd., was a pioneer in the exporting of power to other
industry. Situated in state of Karnataka, it combines for technology and the
latest. Mechanization and compliments with a two years experience result, High
quality sugar.
Alongside, the factory waste namely molasses is used for organo
Chemicals industrial alcogol/rectified spirit is manufacture with the sugar waste.
This VSL company is also looking towards venturing into plant a new plant for
production.
4.2) History:
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Vishwanath sugars ltd entered the sugar industry in the late nineties.
Based in the Indian State of Karnataka, it began operations by setting up one
sugar factory, of which used a scientific method of cultivation. Despite
increasing emphasis on traditional cultivation methods, Vishwanath sugars ltd
was among the few to introduce modernity to this industry.
Sugar factories in Maharashtra were being victimized through state
policies Private farms were being nationalized and the co-operative movement
quickened the pace of ultimate closure of these farms. This was unfortunate
because the yields from these belts of sugarcane were among the best in the
world. The yield of cane was 64 ton per acre, recovery of sugar was 11.5% per
acre and yield of sugar was 7.36 tons per acre. Realizing that it could no longer
work towards its full potential, the opened Vishwanath Sugars Ltd at Bellad
Bagewadi in Karnataka State.
In 2002, the foundation stone at the factory of Vishwanath sugars ltd was
laid by then Governor of Karnataka. Due to the prevalent India Pakistan war at
that time.
The factory was erection on a war footing and commissioned in a record
time of less than ten months. Production started in 2005.Today advanced
technology and a high level of Mechanization has made Vishwanath sugars ltd
one of Indias largest sugar producers. This Vishwanath sugars ltd company has
one of the highest average recovery rates in industry.
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4.4) Location:
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Mr.Ramesh V. Katti
Mr.Ramesh V. Katti is the vice chairman of the company. He is also
Bachelor of Arts from Hukkeri. He is also a Chairman of a Sugar cane factory at
Hukkeri.
Administration Department
Purchase Department
Production Department
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Finance Department
Particulars
Debt
Equity
Ratio
2009
135,33,40,965.26
34,03,59,000.00
3.97
2008
63,80,64,000
34,03,59,000
1.87
2007
76,80,20,840
33,19,71,481
2.31
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100
Particulars
Net Profit bef
interest and T
Sales
Ratio
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