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Aprojectreportoncashandfundflowanalysisandratioanalysisofdkssknchikodi 120809005403 Phpapp02
Aprojectreportoncashandfundflowanalysisandratioanalysisofdkssknchikodi 120809005403 Phpapp02
Page No.
Executive summary
Chapter II
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Industrial profile
Company profile
Organization structure
Product profile
Chapter III
Design of the study
Statement of problem
Objectives of the study
Scope of the study
Methodology of data collection
Sources of data collection
Limitations
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Chapter IV
Financial analysis
Financial statement
Balance sheet
Income statement
Analysis of financial statement
Significance of financial statement analysis
Statement of changes in the financial statement
Chapter V
Data analysis and interpretation
Comparative financial statement
Common size financial statement
Trend analysis financial statement
Ratio analysis
Fund flow statement
Cash flow statement
Chapter VI
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Chapter VII
Conclusion
Chapter VIII
Bibliography
Chapter IX
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Annexure
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LIST OF CHARTS
Chart
No.
1
2
3
Page
No.
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69
Current Ratio
Quick Ratio
Proprietary Ratio
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Solvency Ratio
Fixed Assets Turnover Ratio
Working Capital Turnover Ratio
Gross Profit Turnover Ratio
Operating Cost Turnover Ratio
Return On Investment
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CHAPTER- I
EXECUTIVE SUMMARY
Shree D.K.S.S.K.N. Chikodi is a co-operative unit. It is a situated near
Nanadi village.
By conducting the organization study it is found that
All the departments were actively working towards the achievement of the goals of
the company.
My topic is
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My Objectives are
1. To determine the operational efficiency of the company using ratio analysis.
2. To know the changes in financial statements for the past 3 years
using trend analysis.
3. To conduct cash and fund flow statement for 2007- 2008
4. To identify the financial strength and weakness that the firm
might have.
Suggestions
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CHAPTER- II
INDUSTRIAL PROFILE
THE BRITISH
AT FIRST
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POLICY
The present policy of partial decontrol 10% of production by each unit
is supplied for public distribution system i.e. as levy sugar at Govt. notified prices
admittedly below 20% of the actual cost of production. The levy sugar is I to the
public irrespective of their economic status. The balance 90% is sold in the free
market against monthly\issued by the Government. This policy has been
continuing since 1967-68 except for brief periods of de-control me during the years
of surplus production and accumulated sugar stocks.
Government announces the Statutory Minimum Price (SMP) for sugarcane every
year based on recommendations of the Commission for Agricultural Costs and
Prices (CACP).
COMPANY PROFILE
SHREE D.K.S.S.K.N.- CHIKODI,
Taluka chikodi, dist.- Belgaum
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:
:
Shree D.K.S.S.K.N.-Chikodi.
Nanadi Village.
Tal.-Chikodi, Dist.- Belgaum
Karnataka.
Regi .office
Chikodi.
Ph. No. 08338-276931 To 35
Fax: 08338 276105
E-Mail dksugar@sancharnet.com
Construction
Capacity
Turnover
Employees
756.
Work Shifts
BOARD OF DIRECTORS
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Designation
Chairman
Vice Chairman
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
17.Sri S B Umarane
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DOODHAGANGA
KRISHNA
SAHAKARI
SAKKARE
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KRISHNA
SAHAKARI
SAKKARE
KARKHANE
NIYAMIT, CHIKODI is a co-operative society registered under Karnataka cooperative societys Act in 1969. The object of business is to encourage proper
devolvement of agricultural industrial amongst members on co-operative lives by
promotions of co-operative and joint forming methods so as to secure best merits
of modern large scale agriculture production to the owners of the lands. The nature
of business is to encourage self help, thrift and co-operate amongst members.
Vision, mission and quality policy
Vision
Total customer satisfaction
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Mission
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ii)
Rs.9,00,000/-dividend in to 225 shares of the face value of Rs.4000/each reserved for Co-operative Institutions. Called as BClass.
iii)
of
Rs.4,000/-each
to
be
issued
to
Government
of
Rs.40,00,000/- dividend in to 1,000 shares of face value of Rs.4,000/each reserved for non grower members called as D Class.
INFRASTRUCTURAL FACILITIES
Nearer to raw materials.
Good transportation facilities.
Nearer to rivers place. (Krishna River)
Good networking.
Proper accommodation for its employees
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have
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DIWAS ON
ORGANISATION CHART
BOARD OF MANAGEMENT
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GENERAL
&
MANAGER
WARD
CIVIL
STORE
ENG.
MEDICAL
KEEPER
HEAD TIME
OFFICER
CHIEF
CHIEF A\C
KEEPER
OFFICE
C.D.O.
L.W.O.
OFFICER
WATCH
SPDT
TOOLROOM&DIESEL
PUMP
CHIEF
ENG.
CHIEF
CHEMIST
DIST.
CHEMIST
CO-GEN
CANE
YARD
AGRIL
DEVPT.
GODOWN SECTION
GENERAL
A\C.
CANE
SALES
A\C.
CASH
COMPUTER
GAD
PURC.
SECTION
SECTION
EST
SECTION
MEETING
SECTION
INWARD &
OUTWARD
SHARE
TYPING
SECTION
SECTION
PRODUCT PROFILE
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GUEST
HOUSE
LEGAL
SECTION
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Subsider
Sucm
Filter cake used
As manure
clear juice
clear
juice
evaporates
Concentrated syrup
Surplus syrup to vacuum pans
Boiler to mane cite
Centrifugal
Sugar
molasses
Bagging
Dispatching
power alcohol
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portable alcohol
The first three element are strategy, structure and system are
considered as hardware of success, the meet four elements are style, staff, skills
and shared values / super ordinate goals are the software of any company.
1. Structure
The general admission of the company is carried out by the following departments
and these are downwards communication in the company. The information flows
from the top level of management to the lower levels.
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2. System
System refers to how the production system, distribution, information system
and security system is maintained in its company.
a. Production System
The process of production consisting of input of sugar come and
output of the sugar.
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c. Information System
Structure of information system
CHAIRMAN
MANAGING DIRECTOR
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SECTION
d. Security System
The DKSSK has strict security system.
In the maintenance of accounts after the record have been closed, the
records are kept in the room and closed the room is opened only with
permission of higher authority.
If the visitors went to inter they have to take prior permission with the
authority and after entering they are not suppose to go any dept other then the
department from whom they took the permission.
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3. Strategy
The way in which a business aims to improve its position in relation to its
competition is embodies in its strategy or the way of doing something in an
organization.
In DKSSK, introduce new technologies and products strategies importance in
time with national objective to improve quality reliability of products there by
attaining the international standards.
4. Skills
Skills here refer to how the training will be given to the employees and
employees. The training will be given in 2 months they are
a) On the job
This is one of the oldest method, under this method, the individual place is on
the regular job and taught the skill necessary to perform that job on the job
training has the advantage of giving first hand knowledge and experience under
the actual working conditions. This training is given to employees.
b) Off the job
In this methods trainee is separated from the job situations and his attention is
focused upon learning the material related to his future job performance. There
is an opportunity for freedom of expression for the trainees.
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5. Style
The style which is portrayed to outside world is derived from the style and
behaviors exhibits inside organization. The internal style of the organization effects
new staff feels thinks and does their jobs. Therefore an organization is reflection of
its structure.
a) Top down / Bottom up
At the time of policy framing, the style flows from top to bottom. If the
policy has to be framed then the policy has to be taken by upper level & it flows
towards lower level.
But when the opinion of the policy is to known, at that time the style flows
from bottom to up. This is to know the attitudes of the employees about the policy
which is framed by the upper level.
b) Authoritarian / Participative
Only the upper level is having the authority to make the decisions in the
factory.
Regarding policy matter
Board of management will take the decision in case of policy making.
Financial matter
If the financial matter is within the amount of Rs 20,000/-, Managing
Director will take the decision. And if financial matter is more than Rs 20,000/-,
then the board will take the decision.
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6. Staff
Good hard working citizen play essential role in the development of nation. The
employees are responsible for the success or failure of company.
The company has totally 778 workers are working in the company. They are
divided as follows
No. of Workers
1) Permanent worker
285
2) Seasonal workers
183
3) Consolidated worker
288
756
Company is paying salary of Rs. 55, 00, 000 per month to its workers.
7. Shared values
Shared values are refers to company policies. In Mysore Sugar
Company limited the following policies are maintained.
Quality policies
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QUALITY POLICY
ENVIRONMENT POLICY
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Export of sugar
When the international price of sugar is remunerative compared to domestic
price of sugar, we do export some of the stock of sugar. The sugar export is mainly
undertaken through the mercantile export or through EXIM Corporation New
Delhi. The price for export sugar is negotiated taking into account, the prevailing
international sugar price and the price being offered by various sugar factories for
export of sugar. Once the rates are finalized, they will enter into agreement with
the party. Then the party will obtain a release orders from the Chief Director of
sugar, New Delhi and necessary excise bond from the concerned authority. After
completing all the necessary formalities Sugar will be delivered to the party for
export against full payment of the consignment.
After the export shipmen are completed, necessary documents in proof of export
of consignment will be collected from the parties. The same will be submitted to
the excise department.
Molasses Bagasses
For sale of Molasses and Bagasses we use to make a vide publicity in
the various news papers in Karnataka and Maharashtra and also floating the
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PRODUCTION PROCESS
The main raw material in the production of sugar is.
Sugar cane.
STAGE: 1
The harvested and transported sugar can received is weighed on the weigh
Bridge. It is unloaded and kept on the feeder tables. It is fed to the cane carrier as
per the requirement.
STAGE: 2
This cane is passed through leveler and furzier by making the fine making
the fine chips. It is crushed through series of mills. Imbibitions hot water is added
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STAGE: 3
The juice from all the mills is pumped to juice weighting scale. It is heated
to about 70-77o c in the juice heaters. It is taken to continuous juice sulphitor in
which milk of lime and sulphur dioxide gas are adjusted to maintain ph 7.0. It is
again heated in juice heaters to about 100 to 105oc and sent to continuous
clarifier. Clear juice is taken to multiple effect evaporators to concentrate up to
60oc Brix.
The settled mud from the bottom of the clarifier is taken to mud mixer to
mix with beguile and taken to continuous vaccum filer. The filtrate is transferred
to raw juice receiving tank for treatment. The adhered mud on the screens is
scraped and sent out as filter cake, which will be used for composting the manure.
STAGE: 4
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STAGE: 5
FURTHER PROCESS
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2.
3.
Sales Section
4.
Cash Section
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Accounts
are
looking
after
the
passing
of
bills
and
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PURCHASE DEPARTMENT
Purchase Department is headed by purchase officer is responsible for
purchasing the spare parts required for the industry. The storekeeper is responsible
for stacking quality maintaining and issuing to the concerned section.
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MANAGER
GODOWN
SUPERVISORS
STORE
KEEPERS
ASSISTANTS
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PURCHASE ORDER:
After satisfy with the quantity of materials and reputation of the supplier,
purchase order is send to the supplier. Purchase order contain includes the date of
order, description of materials to be supplied made of supply. The companies of
this send to the Head office, another to accounts departments and one copy send to
the storekeeper.
4.
The department heads and the storekeeper check the quality and quantity of
raw materials received respectively.
purchased materials in the store receipt book store receipt after the details are
entered in the stared receipt book, the materials from the part of inventory. Then
the general manager passes the amount for payment.
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MECHANICAL DEPARTMENT
MANUFACTURE DEPARTMENT
This department is headed by Chief Chemist. To manufacture the maximum
quality the sugar from the cane juice of superior ISI. grade minimize the sugar
losses in bye-products to maintain the register and calculations of sugar entering in
the house and production submit day to day report of production and recoverable
sugar and excise matters in the season. In the off season maintenance of the
boiling house plant.
WATCH AND WARD
This department is headed by security officer. Security of factory and control
on gates and supervision day and night all over the factory area from security point
of view.,
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LABOUR WELFARE
This department is headed by labour welfare officer. To look into the welfare
activities of the worker and solve the labour problems. The factory provides all the
necessary facilities. The purpose of providing welfare amenities is to facilitate the
development of total personality of working class for physical, mental,
psychological, cultural, social, moral and intellectual development the factory
provides well planned residential accommodation, medical facilities, educational
facilities, drinking and washing water, canteen, cycle stand, library etc. In addition,
the factory has following non-statutory schemes for workers welfare. Consumers
society, uniforms to watchman production and engineering workers etc.
OBJECTIVES
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CHAPTER- III
DESIGN OF THE STUDY
3.1 Statement of the problem
Financial analysis being an integral part of overall corporate
management and it is one of the powerful tools of financial performance analysis.
The analysis of financial statement of SRSL is done in order to know the
companys financial position.
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3.4 Methodology
This project is an analytical research where in the researcher has to
use the available facts as information and analyze these to make a critical
evaluation of materials. This is also an applied research with an aim to find a
solution for immediate problems facing industry or the firm.
The methodologies followed in the analysis of the financial
statement are comparative statement, Common size statement, Trend analysis, ratio
analysis, fund flow analysis and cash flow analysis.
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Primary data: The data required for the project was collected minor
through primary data. That is through interviewing & discussion with
concerned authorities in the company.
2.
Secondary data: The major source of data for this project was collected
from annual reports, profit and loss account, manuals & some more
information collected through the internet.
Plan of analysis
This study is conducted with the help of statistics figures &
techniques like Graphs & charts for better comparison and interpretation.
Tools and techniques used for analysis
The following are the methods of financial analysis used in general.
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CHAPTER- IV
FINANCIAL ANALYSIS
Financial analysis is the selection, evaluation and interpretation of
financial data, along with other pertinent information, to assist in investment and
financial decision- making. Financial analysis may be used internally to evaluate
issues such as employee performance, the efficiency of operations, and credit
policies, and externally to evaluate potential investments and the credit-worthiness
of borrowers, among other things.
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Auditors report
Auditors report to shareholders verifies whether the balance sheet and
profit and loss account provides a true and fair view of the state of a
companys affairs. Auditors should obtain all necessary informations and
explanations and ensure that proper books of accounts as required by law
have been prepared by the company.
Accounting policies
Companies adopt different accounting policies for preparing their balance
sheet and profit and loss account. Annual reports incorporate major accounting
policies as well as changes made in current year.
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CHAPTER-V
DATA ANALYSIS AND INTERPRETATION
5.1 COMPARATIVE FINANCIAL STATEMENL (CFS)
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Table No. 1
SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE
KARKHANE NIYAMIT, CHIKODI
Comparative Balance Sheet
(Amts in crores)
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2006-2007
2007-2008
INCREASE/
INCREASE /
DECREASE
DECREASE(Amt)
(%tage)
132.19
676.80
409.49
912.46
8.40
683.18
555.99
3378.51
133.66
757.90
502.83
717.85
12.83
666.17
471.07
3262.31
1.47
81.10
93.34
(194.61)
4.43
(17.01)
(84.92)
(116.20)
1.12
11.99
22.80
21.33
52.74
2.49
15.28
3.44
1296.30
2.62
1242.47
48.55
272.93
0.32
158.33
356.99
3378.51
1307.44
16.73
1039.87
101.44
274.33
0.30
132.40
389.80
3262.31
11.14
14.11
(202.6)
52.89
1.40
(0.02)
(25.93)
32.81
(116.20)
0.86
583.55
16.31
108.94
0.52
6.25
16.38
9.19
3.44
INTERPRETATION
Current assets
The investments in the current assets are low and it has decreasing trend
over the period under study. The current assets have decreased by Rs. 202.60
(crores) i.e., Rs.1242.47 in 2007 and Rs.1039.87 in 2008. So it is significantly
effects on the liquidity position of the company and it also decrease the working
capital of the company.
Net fixed assets
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2007-2008
Increase/decrease
AMOUNT
Increase/decrease
(%tage)
1640.81
10.48
1651.29
1773.10
3.25
1776.35
132.29
7.23
125.06
8.07
68.99
7.58
1517.95
133.34
1624.81
151.54
106.86
18.2
7.04
13.65
40.23
42.35
124.37
7.13
18.22
94.75
1.36
161.62
70.66
32.81
54.52
40.99
37.25
63.53
14.59
135.52
96.79
29.95
891.03
80.08
Details
Income
Sales (Revenues)
Other Income
Total
Expenditure
Cost of goods sold
Gross Profit
Selling
and Administration
Expense(operating exp)
Operating income
Non operating exp
Non operating income
Loss
INTERPRETATION
On the basis of comparative income statement it can be said that gross profit
for the year 2006 has increased by Rs.18.20 over the profit for the year 2008. The
Net sales during the same period have increased by Rs.132.29. The cost of goods
sold increased by Rs.106.86.
The selling and Administrative expenses increased by 135.52% Non
operating income for the year 2008 is increased by 891.03%. The non operating
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2005
2006
2007
2008
100
100
100
100
79.08
96.78
92.52
91.64
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G.P.
less-selling
20.89
3.22
7.49
8.37
&administrative exp
Add-operating
24.25
11.28
2.46
5.35
income
Less-Non operating
21.13
1.30
2.59
0.08
exp
Add-Non operating
15.45
6.93
7.58
9.12
0.24
2.56
0.79
0.44
0.48
3.99
income
Profit
Loss
12.90
2.04
Table No. 4
SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE
KARKHANE NIYAMIT, CHIKODI
COMMON SIZE BALANCE SHEET
(Amts in crores)
Particulars
LIABILITIES Share Capital
Reserves & Surpluses
Term loan
Working capital loan
Bank O. D. payable
Statutory and other deposits
Suspense, sundries & other
Total
2004-05
2005-06
2006-07
2007-08
3.91
16.74
19.25
22.75
0.96
27.24
9.15
100
3.44
18.14
16.43
25.23
0.18
23.73
12.85
100
3.92
20.02
12.12
27.01
0.25
20.23
16.45
100
4.10
23.23
15.42
22.01
0.40
20.41
14.43
100
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40.18
0.05
45.71
1.80
8.79
0.05
2.97
0.45
100
39.31
0.07
48.67
1.55
7.95
0.04
1.97
0.44
100
38.37
0.08
36.78
1.44
8.08
0.01
4.67
10.57
100
40.08
0.52
3.11
31.86
8.41
0.01
4.06
11.95
100
Particulars
Sales
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2008
129.86
100
100
100
100
100
100
100
100
114.87
279.49
26.14
238.73
135.53
0.33
66.64
122.96
337.33
61.56
7.67
59.54
57.13
660.38
Table No. 6
SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE
KARKHANE NIYAMIT, CHIKODI
TREND ANALYASIS BALANCE SHEET
(Amounts in crores)
Particulars
LIABILITIES Share Capital
Reserves & Surpluses
Term loan
Working capital loan
Bank O. D. payable
Statutory and other deposits
Suspense, sundries & other
Total
ASSETS Fixed assets
Investments
Current assets
Loans and advances
Debtors
Cash in hand
Cash at bank
Other assets
Profit and loss account
Total
2005-2006
2006-07
2007-08
100
100
100
100
100
100
100
100
1206.93
117.22
96.13
113.62
139.07
90.44
135.88
106.12
1220.30
131.27
78.28
89.39
212.41
88.19
115.12
102.47
100
100
100
100
100
100
100
100
100
100
103.60
103.98
80.18
98.41
107.83
28.31
251.79
106.12
104.50
666.53
67.10
205.63
108.38
26.54
210.55
102.47
INTERPRETATION:
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current assets
_______________________
Current liabilities
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2004-
2005-
2006-
2007-
05
06
07
08
RATIO
1.51
1.25
1.41
1.21
Current Assets
1402.88 1521.07 1673.74 1446.92
Current Liabilities 932.47 1216.50 1472.95 1200.52
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INTERPRETATION
As a matter of policy or as referred to as bankers rule of thumb, the
current ratio of 2:1 is considered to be satisfactory. The analysis is proved that the
current ratio position of the DKSSK is not fully satisfactory. That is 1.51 times in
2005, 1.25 times in 2006, 1.14 times in 2007, 1.21 times in 2008.
Quick ratio
Quick ratio establishes a relationship between quick, or liquid, assets and
current liabilities. An asset is liquid if it can be converted into cash immediately or
reasonably soon without a loss of value. Inventories are considered to be less
liquid. The quick ratio is found out by dividing quick asset by current liabilities.
The standard ratio is 1:1.
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liquid assets
_______________________
liquid liabilities
Table No. 8
2005-
2006-
2007-
05
06
07
08
0.50
0.38
0.41
0.46
450.60 454.32 595.45 535.79
905.20 1210.45 1464.55 1187.68
Chart No. 2
INTERPRETATION
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Proprietary ratio =
Table No.9
CHART SHOWING SHARE HOLDERS
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2004-
2005-
2006-
2007-
05
06
07
08
0.40
0.44
0.47
0.61
533.89 631.98 754.11 836.68
1349.90 1466.18 1618.85 1392.03
Chart No. 3
INTERPRETATION
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Total assets
Table No. 10
CHART SHOWING OUT SIDE LIABILITY
TO TOTAL ASSETS
Details
4.
SOLVENCY
RATIO
Out side liabilities
Total assets
2004-
2005-
2006-
2007-
05
06
07
08
0.62
0.64
0.60
0.71
828.09 935.63 969.12 984.61
1349.90 1466.18 1618.85 1392.03
Chart No. 4
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INTERPRETATION
The company cannot meet solvency because there is high solvency
ratio. High solvency ratio shows insolvent. The company cannot pay both short
term and long term liabilities. i.e. 2005, 2006, 2007 and 2008 are 0.62, 0.64, 0.62
and 0.71 respectively.
EFFICIENCY RATIO
Efficiency ratios measures efficiency with which the assets are managed
in the business. High ratio indicates efficient management of assets and low ratio
depicts inefficient management of assets.
Fixed assets turn over ratio
Working capital turnover ratio
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Net sales
_______________________
Fixed assets
Table No. 11
CHART SHOWING NET SALES
TO FIXED ASSETS
Details
5.
2004-
2005-
2006-
2007-
05
06
07
08
FIXED
ASSETS
TURNOVER
ROTIO
Net sales
Fixed assets
1.00
1.10
1.27
1.36
1143.15 1365.47 1640.81 1773.10
1142.11 1251.15 1296.30 1307.44
Chart No.5
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INTERPRETATION
There is a more investment in fixed assets. All fixed assets are
contributed towards sales. In 2005 it is 1.00, 2006 it is 1.10, 2007 it is 1.27 and
2008 it is 1.36 there is increase in fixed assets.
Working capital turnover ratio
This ratio shows whether working capital has been efficiency used in
making sales. High ratio indicates higher operating efficiency of a firm.
Working capital turnover ratio =
Net sales
_______________________
Working capital
Table No. 12
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2004-
2005-
2006-
2007-
05
06
07
08
CAPITAL
TURNOVER
RATIO
Net sales
Working capital
4.64
6.80
5.39
3.77
1143.15 1365.47 1640.81 1773.10
246.40 200.78 304.56 470.40
Chart No. 6
INTERPRETATION
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Gross profit
_______________________* 100
Net sales
Table No. 13
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2004-
2005-
2006-
2007-
05
06
07
08
GROSS
PROFIT
Gross profit
Net sales
0.21
0.04
0.08
0.09
238.75
43.96 122.86 148.29
1143.15 1365.47 1640.81 1773.10
Chart No. 7
INTERPRETATION
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operating cost
_______________________* 100
Net sales
Table No. 14
2004-
2005-
2006-
2007-
05
06
07
08
COST
103.37
14.50
9.94
13.71
1181.59 197.88 163.09 243.04
1143.15 1365.47 1640.81 1773.10
Chart no. 8
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INTERPRETATION
The operating cost ratio shows the operating efficiency of a firm.
There is a standard up to 75% to 85%.i.e 103.37, 14.50, 9.94 and 13.71 in 2005,
20006, 2007 and 2008 respectively.
Return on investment ratio
This is the ratio which indicates percentage of return on capital invested
in the business. It shows the efficiency of the business as a whole.
Operating profit
ROI ratio =
_______________________* 100
Capital employed
Table No. 15
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Details
1.RETURN
2004-
2005-
2006-
2007-
05
06
07
08
- 0.03
- 0.09
-
0.07
0.04
ON
INVESTMENT
RATIO
Operating profit
Capital employed
- 38.44 109.66
82.63
53.54
1134.04 1209.93 1218.49 1394.40
Chart No. 9
INTERPRETATION
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MEANING
Fund flow statement is a statement of sources and application of
funds. According to Robert Anthony, the funds flow statement describes the
sources from which funds were derived and the uses to which these funds were
put.
In other words of Smith and Brown, A funds flow statement is
prepared in summary form to indicate changes occurring in terms of financial
condition between two different balance sheets. In short, it is a statement which
shows how the working capital is obtained and how it is put to use.
Table No. 16
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Previous
Current
Increases in
Decreases in
year
year
w.c.
w.c.
1039.87
101.44
274.33
0.30
132.40
1548.34
52.87
1.40
0.02
-
202.60
25.93
(A)
1242.47
48.55
272.93
0.32
158.33
1722.60
&
912.46
8.40
555.99
717.85
12.83
471.07
194.61
84.92
4.43
-
1476.85
245.75
100.84
346.59
1201.75
346.59
333.80
100.84
333.80
Current assets
Current assets
Loans & advances
Receivables
Cash
Bank
Current liabilities
Short term loan
B.O.D.
Suspense, sundries
cane
payables
(B)
Working capital (A-B)
Increase or decrease in w.c.
346.59
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- 32.96
161.62
1.17
22.37
185.16
Total
152.20
Less non operating incomes credited to p&l a\c
Interest on dividend
Funds from operations
1.36
150.84
Amount
Application of funds
1.47 Paid to statutory & other
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Amount
17.00
deposits
93.30 Purchases of fixed assets
150.84 Purchases of investment
Reserve & surplus
Tax paid
Increase in w.c.
246.00
11.00
14.00
81.00
22.16
100.84
246.00
INTERPRETATION
The fund flow statement shows the increase in working capital
because there is increase in current assets and the sources of funds are hugely used
in purchasing fixed assets and investment.
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150.84
174.26
325.10
275.10
50.00
158.65
1.46
93.30
50.00
11.14
14.12
17.00
81.10
22.35
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144.76
303.41
25.00
Closing balance (cash)
170.71
132.70
INTERPRETATION
In cash flow statement the application of cash is more compare to
sources of cash and it is also helpful in planning for immediate future to avoid
cash shortages.
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In comparative balance sheet the current assets are decrease by 16.31%. And
cash & bank balance also decrease by 22.65%.
On the basis of common size income statement the cost of goods sold is high
i.e. 79.08% in 2005, 96.78% in 2006, 92.52% in 2007 and 91.64% in 2008
on total sales.
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SUGGESTIONS
1. Ratio analysis indicates the firm is not in good health none of the ratios are
reaching the ideal ratios necessary for enhancement of share holders wealth.
Hence the firm should concentrate on enhancing the operating efficiency of
the firm.
2. From the study it is found that the funds are used for short term assets which
should be avoided. The long term sources of fund should be used for long
term assets and not short term assets.
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CHAPTER VII
CONCLUSION
By analyzing the topic of CASH AND FUND FLOW ANALYSIS
AND RATIO ANALYSIS OF DKSSKN LTD. CHIKODI
I conclude that the company is more concentrate on raising the
fixed assets rather than operating activities which decreases working capital of the
company. Which affects the operational efficiency of the company and also the
liquidity position is not satisfactory due to these reasons.
This project report helped me to get the good knowledge on to
improve the liquidity position for better maintenance of the company.
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CHAPTER IX
ANNEXURE
SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE
KARKHANE NIYAMIT, CHIKODI
BALANCESHEET AS AT
MARCH 31st - 2005, 2006, 2007 AND 2008
(All amounts in crores of Indian rupees unless otherwise stated)
PARTICULARS
LIABILITIES Share Capital
Reserves & Surpluses
Term loan
Working capital loan
Bank O. D. payable
Statutory and other deposits
Suspense, sundries & other
Total
ASSETS Fixed assets
Investments
Current assets
Loans and advances
Debtors
Cash in hand
Cash at bank
Other assets
Profit and loss account
Total
2004-2005
2005-2006
2006-2007
2007-2008
111.11
475.75
547.17
647.04
27.26
774.01
259.91
2842.25
109.53
577.33
523.06
803.01
6.04
755.33
409.17
3183.47
132.19
676.80
409.49
912.46
8.40
683.18
555.99
3378.51
133.66
757.90
502.83
717.85
12.83
666.17
471.07
3262.31
1142.11
1.41
1251.15
2.52
1296.30
2.62
1307.44
16.73
1299.18
1549.60
1242.47
1039.87
51.04
49.34
48.55
101.44
249.58
1.52
84.31
13.10
2842.25
253.11
1.13
62.88
13.74
3183.47
272.93
0.32
158.33
356.99
3378.51
274.33
0.30
132.40
389.80
3262.31
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2004-05
2005-06
2006-07
2007-08
1143.15
1143.15
1365.47
62.16
1427.63
1640.81
10.48
1651.29
1773.10
3.25
1776.35
904.40
238.75
1321.51
106.12
1517.95
133.34
1624.81
151.54
277.19
-38.44
241.49
176.55
2.72
29.22
153.92
-47.80
17.74
94.59
10.70
40.23
93.11
42.35
124.37
7.13
94.75
56.79
70.66
161.62
1.36
113.94
18.22
32.81
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