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Indian sugar Industry: India is the second largest producer of sugar in the world. The Indian sugar industry is the second largest agro industry located in the rural India. The Indian sugar industry has a turnover of Rs.500 billion per annum and it contributes almost Rs.22.5 billion to the central and state as tax, and excise duty every year. It is the second largest agro processing industry in the country offers cotton textiles. About 50 million sugar cane farmers and a large number of agricultural laborers are involved in sugar cane cultivation and ancillary activities, constituting 7.5% of the rural population. The industry provides employment to about 2 million skilled/semiskilled 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- bagasse. It also produces ethyl alcohol, which is used for industrial and potable uses, and can also be used to manufacture Ethanol, an ecology friendly and renewable fuel for blending with petrol. The sugar industry in the country uses only sugar cane as input; hence sugar companies have been established in large sugar cane growing states like Uttar Pradesh, Maharashtra, Karnataka, Gujarat, Tamil Nadu and Andhra Pradesh. In the year 2003-04 these six states contribute more than 85% of total sugar production in the country. Exhibit 1 shows the state-wise sugar production in India for 2004-2005 and 2005-06. The government de-licensed the sugar sector in the August 1998, there by removing the restriction on the expansion of existing as well as on the establishment of new units , with the only stipulation that a minimum distance of 15 km‟s would continue to be observed between an existing sugar mill and a new mill.
EXHIBIT 1: Sugar production by state in India (in Metric Million Ton):
There are 566 installed sugar mills in the country with a production capacity of 180 lakh Million ton‟s of sugar, of which only 453 are working. These mills are located in 18 states of the country. Around 315 of the total installed mills are in the co-operative sector, 189 in the private sector and 62 in the public sector. The number of operating sugar mills in the country has increased from 29 in sugar year (SY) 1930-31 to 412 by (S) Y1996-97 (sugar year = October 1 st to September 30th). The addition in number of mills was at its peak during seventies that when nearly 100 mills were added between 1970 and 1980 to increase the number of operating units to 300. The development of industry in the past is as given in table below. The average capacity of the sugar mills in the industry has considerably moved up from just 644 ton per day in SY 1930-31 to 2656 ton per day. But still the production of sugar in India is inching. Industry was driven by horizontal growth (increase in number of units) compared to the vertical growth witnessed in other countries (increase in average capacity) Refer Exhibit (3)
Sugar Availability: Sugarcane occupies about 2.7% of the total cultivated land and it is one of the
most important cash crops in the country. The area under sugar cane has gradually increased from 2.7 million hectares in 1980-81 to 4.3 million hectares in 2006-07, mainly because of much larger diversions of land from other crops to sugarcane by the farmers for economic reasons. The sugarcane area, however, declined in the year 2003-04 to 3.9 million hectares and to 3.7 million hectares in 2004-05, mainly due to drought and pest attack.
From a level of 154 MMT in 1980-81, the sugarcane production increased to 241 MMT in 1990-91 and further to 296 MMT in 2000-2001. Since then it has been hovering around 300 MMT until last year. In the season 2003-2004, however, sugarcane production declined to drought and pest attack. Not only sugarcane acreage and sugarcane production has bas been increasing, even drawl of sugarcane by sugar industry has also been increasing over the years. In India, sugarcane is utilized by sugar mills as well as by traditional sweeteners like Gur and Khandsari producers. However, the diversions of sugarcane to Gur and Khandsari are lower in states of Maharashtra and Karnataka, as compared to Northern states like Uttar Pradesh. Exhibit 2 gives data on sugarcane utilization for different purposes.
EXHIBIT 2: Sugar Utilization:
The three largest sugarcane growers in terms of production are Brazil, India and China, yielding between them more than half of total sugar production. Exhibit 3 compares production and yield figures for the top 11 sugar growing countries as shown below.
Therefore.EXHIBIT 3: Sugarcane production and consumption by country. Most of the mills in India are not equipped to make refined sugar. . as opposed to single stage mills which are dependent upon the seasonal supply of sugarcane. Mills which are designed to produce refined sugar can manufacture sugar not only from sugarcane but also from raw sugar which can be imported. such mills can run their production all the year round.
He was on the Dean's list for all terms. Dhruv M.B. U. Sawhney has served on the Board of various public sector organizations and chaired Government advisory councils on Industry. Mr. U. Mr. and is a life member of Beta Gama Sigma.A with distinction from the Wharton School.K. came second in the University. and was a past Governor of the Indian Institute of Management. and chairs the Board of Trustees of Delhi's oldest private charitable hospital. He was President of the All India Chess Federation for 12 years. Mr. . Mr. Sawhney takes a keen interest in education. The Duke of Edinburgh in 1956 to foster and broaden the understanding and decision-making ability of individuals in the commonwealth countries. He is a Companion Member of the Chartered Institute of Management.A. He chairs the Commonwealth Leadership Development Conferences founded by HRH Prince Philip. Switzerland. Energy and Sugar. one of India's most famous Public Schools. University of Pennsylvania. Sawhney. the Indian Sugar Mills Association and the Sugar Technologists Association of India. Sawhney is a Past President of the Confederation of Indian Industry (CII). Dehra Dun. U.K.S. Sawhney has received the highest civilian award "Chevalier de la Legion d'Honneur" from President Chirac of the French Republic. and M. University of Cambridge. Lucknow. Chairman & Managing Director graduated with a Masters in Mechanical Sciences from Emmanuel College. He was the first Chairman from the developing world of the International Society of Sugar Cane Technologists.COMPANY PROFILE Mr. He also chairs CII's International and Internal Audit Committees. the Management Institute at the University of Delhi and Chairman of the Doon School. Mr Sawhney is Deputy Chairman of the Evian Group and Chairman of the India Steering Committee of the World Economic Forum.
TRIVENI NGINEERING AND INDUSTRIES LIMITED .
32 131.57 995.96 million.29 10.73 1241.04 % to Rs 11920.04 2010-11 12702.38 24.83 19.00 78.37 2130. 1 each (in Rs.06 235.00 229.96 11920.79 165.29 29.27 19. .87 840.87 During the year under review.40 1397.20 44.36 2011-12 10212.25 1611.46 304.88 93.52) 61.68 5.54 1. There was a remarkable growth in turnover in all the engineering units accompanied by an attractive increase in their respective margins.13 % Increase 24.70 0.77 23.87 1150.67 178. Profit after tax increased 32. the company reported a record performance across the following parameters: Net sales increased 24.51 1314.96 82.95 2.92 9610.Net deferred tax charges Profit after tax (PAT) Surplus brought forward Available for appropriation APPROPRITATIONS Provision for Dividend (included dividend distribution tax) Equity Preference Transfers to molasses reserves Transfer to capital redemption reserves Transfer to general reserves Surplus carried forwarded Earning per equity share of Re.37 million.04 23.55 1039.Normal .PERFORMANCE: Particulars Sales (Gross) Sales (Net) Operating Profit ( EBIDTA) Interest and Financial Charges Depreciation and amortization Profit before tax (PBT) Tax liability.75 32.13 % to Rs 1314.40 4.27 57.50 1724.00 82.96 288.) 147. The company is optimistic of a similar or higher growth in turnover and profit of all businesses in Financial Year 2011-12.52 (24.
The equity shares of RS. Dalal Street. No. the equity shares of the company were listed on NSE and BSE on 13 December 2008. . 125. The company issued 50 million equity shares in November 2009 and the issue was oversubscribed more then ten times reflecting investor confidence.CORPORATE INFORMATION: Sl. foreign institutional investors and domastic banks held 21. 42. The closing price of Triveni share at NSE on 31 March 2009 was Rs. the company prudently fixed the issue price at Rs. Plot no c/1. The company has increased the limit of investment by FIIs to 49%. reputed institutional investors including mutual funds. impaling a market capitalisation of Rs.50. Fort Mumbai – 400023 02. the major stock exchange of India. G block. Name and Address of Stock Exchange Bombay Stock Exchange Limited Phiroze Jeejeebhoy Towers.53% of the company‟s shareholding. 5th Floor. Bandera (E). 48 in general investor interest. Consequent to this issue. As on 31 March 2009. 1 each were issued through a book building process within a price range of Rs. Mumbai – 400051 TRIVENI Stock Code 532356 Enhancing shareholders value: The Triveni public issue: The shares of Triveni Engineering & industries Limited are listed on the Bombay stock Exchange and National stock Exchange. 01. National Stock Exchange of India Ltd. While 97% of the demand was for shares in the upper band. which will enable more international investors to participate in its growth story. Exchange Plaza.95.32480 million.
BSE high BSE Sensex high Mar-12 At Triveni. .BSE low BSE Sensex low Feb-12 Triveni Share Price .SHARE PERFORMANCE OF TRIVENI Vs BSE SENSEX 12000 11000 10800 10000 9500 8800 8000 7500 7000 6500 6000 6000 6300 9000 8000 10000 10200 9500 10000 4500 4000 2000 0 Dec-11 Jan-12 Triveni Share Price. but leverage our engineering knowledge to extend into four other growing and profitable business. our principal achievement is that we started with one business.
59% in 2010-11 due to the aforesaid.7% than what had been achieved in 2011-12. the company produces Rs. a good performance as it competed successfully with producers of alternative sweeteners to reduce cane diversion and increase drawal of sugarcane. capacity expansion of the Ramkola sugar unit from 3500 TCD to 6500 TCD will be complete by the start of the 2009-10 sugar season. . 8663. The company is setting up a captive 160 KLPD distillery for ethanol production that will be commissioned in the fourth quarter of 2009-10. Performance The company achieved 7% higher crushed in 2011-12. the Deoband units reported one of the highest recoveries among all Western UP sugar factories during the season under review. 0. the third plant in Narainpur (6000 TCD) will be completed in the fourth quarter of 2011-12. 2011-12 Sugar prices are expected to stay firm for the next two years on account of domestic demand and supply.07 million in 2011-12 to Rs. Averages recover for our sugar units declined from 10. It is to the company‟s credit that despite poor weather. Further. Outlook. 7676. 2010-11 13% increase in turnover from Rs. winter frodt and overfertilisation. The company will expend capacity from 40500 TCD to 61000 TCD in 2010-11 It will commission three Greenfield units in Chandanpur (6000 TCD) and Rani Nagal (5500 TCD) by the start of the 2010-11 sugar season. high crude price influencing higher ethanol production as well as due to other international factors.SUGAR BUSINESS GROUP (SBG) Highlights. Commissioning of the 7000 TCD Greenfield sugar unit in Sabitgarh in January 2011.6-0. Due to late rains. the sugar recovereries in Western UP were lower by around 0.25 million. Recovery of the Deoband sugar unit of the highest in Western UP during the 2010-11 sugar seasons.08% in 2011-12 to 9.38 million tones of White sugar in 2005-06. 60% increase in sugar capacity from TCD in 2011-12 to 40500 TCD.
THE BRANDED SUGAR (SHAGUN) The Company‟s branded sugar is manufactured in ‘Khatauli’ and marketed under the Shagun Brand. The government did not permit the import of white sugar during the last two years even when a shortage was evident. the off take of Branded sugar increased by 44 % to 6522 MT.packets. they invested in the modernization of the sugar units to achieve benefits which are fully under their control and invested additionally in the cogeneration plant to insulate themself from the sugar cycle. Considering all the factors and as described in detail in the Management Discussion and Analysis. expandable to 12000tcd. While the market of branded sugar is not large. . UP. but quite pragmatically allowed the import of raw sugar under an advance License scheme with corresponding export obligations. demand is increasing due to increased urbanization and life style changes. the sugar outlook appears stable till 2007. The result of these initiatives is that when the industry turned around. Triveni was in the right place at the right time with the right capacity and the right efficiencies.In Sugar Division area during the down turn. developing an alternative stable revenue stream. The sugar packaging section is considered to be the best designed sugar packaging sections amongst all the players in branded sugar business in India.And the branded sugar of Triveni Shagun is packaged in a state-of-the-art sugar packaging section located in the sugar factory premises. district Bulundshahar. The Khatauli sugar unit is being modernized and expanded to 16000 tcd and they are planning to setup three new units. they expect their sugarcane crushing capacity to significantly rise over our current base of 25250 tcd. During the year under review. The company announced this sugar in 26 September 2003. one of which will be set up at Sabitgarh. As a result. Besides they invested in state-of-the-art vacuum pans in a joint collaboration with sugar research international of Australia. All these units would have capacity of 5000-7000 tcd.the branded sugar provides in 1-5 KG.
The government of India has issued the national electricity policy.5 million. the buyer for the power supplied to the grid. 92% plant load factor for the Deoband unit across 207 days of working (99% and 100% PLF in February and March 2011 respectively).03 million in 2011-12to Rs. 237 million. . which calls for the promotion of cogeneration and generation from renewable Sources of energy. 188. 304% increased in EBIDTA from Rs.THE COGENERATION GROUP (CBG) Cogen plant at Khatauli was one of the quickest commissioning schedules for cogeneration plants in India. 605. (UPPCL). 58. Power purchase agreement with Utter Pradesh Power Corporation Ltd. 2011-12 222% increased in the division‟s revenue from Rs.6 million in 2010-11 to Rs. timely payments from UPPCL for the power supplied. enviournmant friendly driver of sustainable development. Commissioning of new 23 MW co-generation plant in Khatauli reported PLF of over 98% in March 2010. Performance. Plant: Khatauli and Deoband Bagasse-based cogeneration power is a renewable.
The company captivity consumed 31 % of the electricity produced by this plant and the rest was supplied to the Utter Pradesh power corporation Limited. KHATAULI: State of the art and energy efficient. Plant operated at an average plant load factor of 92% for the 207 days it was operational in 2007-08. bagaees-based 23 MW cogeneration power plant (commenced operation during 2010-11 sugar season). After an initial period of stabilization. . PLF could have been higher but for fuel shortage during the start of the sugar season and high grid disturbances in January 2008. Additionally utilizes continuous Electro de-ionization (CEDI) process in its Boiler feed water system (installed through the company‟s water business Group) with the objective to rationalize bulk acid and alkali handling as well as improve water quality. This is the largest CEDI-based water treatment module in India and the first in a power plant in the country. Plant achieved 99 % and 100 % PLF in February 2007 and March 2008 respectively.Triveni’s co-generation units DEOBAND: State of the art. the cogen plant has achieved full capacity. One of the quickest commissioning schedules for co-generations plant in India. PLF was over 98 % for March 2008.year power purchase agreement. bagasse-based co-generation unit with a capacity of 22 MW. secured through a 10. Commenced the export of power in October 2010. The company captivity consumed 25 % of the electricity produced by this plant and the rest was supplied to the Utter Pradesh Power Corporation Limited. secured by a ten-year power purchase agreement.
221. followed by diesel-based power generation. steam generation power accounted for 46%.3 and 186 respectively in February 2012 against 152.9.3% respectively. Power sector (including IPP and co-generation units) India consumes almost 3% of the world‟s commercial energy and is the sixth largest consumer of energy in the World.THE ENGINEERING BUSINESSES Overview GDP growth increased from 6. up 8. . the IIP for mining.5.5%. The cumulative growth during April. manufacturing and electricity sectors stood at 153. Electricity generation will have to grow at a minimum of 10% per annum in order to support the targeted industrials and economic growth.February 2010-2011 in these three sectors was 0.9% in 2010-2011 to 8. 9% and 5.7 in February 2011. According to figures available. driven by the manufacturing and power sector. Captive power It is estimated that a capacity addition 100000 MW will be required by 2012 to bridge the supply deficit.3 and 170.8% against the corresponding month of the previous year. The government expects to bring around 5000 MW of electricity (2011) to the grid through the captive generation route to supplement capacity addition. During 2012. the recorded energy requirement was 626 billion units whereas energy available was only 546 billion units. Out of the country‟s installed captive power generation of 18740 MW.3. The index of industrial production for February 2011 rose to 227. reflecting a shortage of 80 billion units (13%). 242.1% in 2011-2012.
Owing to technical improvements made on the CVP. in association with Sugar Research International (SRI) of Mackay. Company has in the past presented these details in a paper jointly presented with SRI at a convention of the International Society for Sugar Sugarcane Technology.9% in 2010-2011 to 22. a wholly owned subsidiary. the first time an SRI pan was installed for „C‟ massecuite in a sulphitation plant. its subsidiary. the CVC was installed in the Deoband sugar factory for usage on „C‟ massecuite. SRI is one of the sugar machinery technology authorities in the world.The contribution of the division to the company’s revenue increased from 16. . Triveni and SRI are now eligible to jointly own the intellectual property for this new improved vacuum pan. has an exclusive license in India from SRI International for many of their products.6% in 20112012 TECHNOLOGYS uvyfvhfyshcc gdftrth TECHNOLOGIES IN SUGAR DIVISION: Continuous Vacuum Pan Syrup Clarifier System Short Retention Clarifier Continuous vacuum Pan Developed by Triveni SRI Limited. Australia. Triveni SRI Limited.
Mill-Tandem: Designed and manufactured by the company (captive technology). bagasse loss in the unit is 1.9 for the rest of the industry. . Triveni has set up over 65 sugar plants and supplied over 300 cane mills to sugar factories in India and overseas. where it is working efficiently. strong design feature ensures a negligible downtime.6 compared to 1. The mill-tandem has proved to be one of the most efficient in India: reflected in the reduction in Bagasse losses and increase in reduced mills extraction (RME). installed in company‟s sugar plants. This prevents the inversion of sugar and also leads to an improved sugar recovery and quality. RME for the unit is 96 while that of the industry is around 95. this licensed product from SRI has been sold to EID parry in Tamil Nadu. Syrup Clarifier System: Installed at the Deoband and Khatauli sugar plants to improve the quality of sugar. Short retention Clarifier: To be installed in 2011-12 at the Khatauli unit and at the new plant. the clarification of juice is achieved in only 30 minutes while in a normal clarifier juice is retained for approximately 150 minutes.
60 19.91 2011-12 38.94 10.79 17. post bonus) 72.74 17.92 29.36 4.87 11.59 43.FINANCIAL REWIEW KEY PARAMETRES: 2010-11 Return on Net worth (RONW) (%) Return on Capital employed (ROCE) (%) Total Debt Equity Ratio (Times) EBDITA margin (%) PAT margin (%) Interest Cover (Times) Book value (Rs.34 0.52 2.03 8.82 .89 7. 1. Per equity share of Re.
Auditors M/s. M.K. Hazari (Retd. Bhalla & Co. J. Daga Mr. Kapoor (IDBI Nominee) Vice President (legal) and Company Secretary Mr.) Mr.C. Sawhney Board of Directors Dr.C. K. Sharma Mr. V. K. Venkateswarlu Mr. Branch Auditors M/s. Dhruv M. F. Kohli Lt. Ghuliani Bankers Punjab National Bank Central Bank of India Canara Bank Oriental bank of Commerce Union Bank of India Standard Chartered Bank State Bank of Travancore UTI bank Ltd. Virmani & Associates . V. R. Gen.CORPORATE INFORMATION Chairman and Managing Director Mr. R.P. C. K.
8th floor 15-16. Com Registrar and share transfer agents For equity shares held in physical and electronic mode. Avenue 4 Street No. Banglore-560058 STD Code: 080 Phone: 28394721(4 lines). District Saharanpur Utter Pradesh – 247554 Phone: (01336) 222497.23320751 Fax: 23311968 Email: mailmanager@karvy. Noida 201301 (UP) Phone: (0120) 5308000 Fax: 5311010-11 Share department/investors’ grievances „Express Trade Tower.16 A Noida 201301 (U. Ltd.46.com Turbine business group 12-A. 1. 28394771 Fax: 28395211 .COMPANY’S BUSINESS LOCATIONS Registered Office Deoband. M/s Karvy computer share Pvt. 8th floor 15-16. Karvy house. Banjara Hills Hyderabad 500034 STD Code :040 Phone: 23312454.P. sector. 28394843.222866 Fax: 222220 Corporate Office „Express Trade Towers‟.) STD code: 0120 Phone: 4308000 Fax: 4311010-11 Email: shares@trivenigroup. sector 16 A. 222185. peenya industrial Area. Peenya.
The data are based on annual reports of U. potential distortions are reduced. profitability. and dynamic liquidity. This paper extends the traditional ratio analysis to permit the incorporation of any number of dimensions of performance. and efficiency. Further. This is necessary because of clear trend in the time series. respectively. The selected financial ratios are.LITERATURE REVIEW Chaote GN. according to a priori classification. and step 3 combines ratios into patterns for interpretations. and Finnish industrial firms for the periods 194775 and 1974-84. P Smith(1990) Stated that ratio analysis has been a tool of analysts for as long as financial statements have been prepared. and administrative decisions can be based on more reliable rations. step 5 compares three individual hospitals' ratios to industry ratios. Through reclassification procedures. using data envelopment analysis. empirically-based classification patterns for twelve commonly used financial ratios and measure the long-term stability and structural invariance of these patterns. Step 1 reclassifies financial statements for analysis. Yet its limitation to considering only one numerator and one denominator severely limits its usefulness. empirical results show that different aggregation methods lead to different results. Factor patterns based on these . The theoretically better value-weighted indices give more accurate and easier-to-intepret empirical results. Paavo Yli.Olli and IIKKa Virtanen(1990) Stated that we develop. profitability. the measures of short-term solvency. The strengths and weaknesses of the method applied to financial statements are appraised. on the economywide level. together with a wealth of supporting information. Tanaka K(1979) Stated that financial ratio analysis allows a hospital to evaluate its own performance over time and to compare itself with other hospitals. efficiency. and step 6 discusses behavior of two hospitals' ratios and industry ratios over time.S. long-term solvency. The method produces measures of corporate efficiency. Step 4 describes the 209-hospital sample. step 2 computes and explains ratios. Classification patterns are developed using ratio indices in first-difference form. Classification patterns are developed using factor analysis and the stability and invariance analyses are carried out via transformation analysis. The following factors are found: solvency.
Secondly. This paper formulates the inter-company comparison process as a multi-criteria analysis model. The results of this study can be beneficial to healthcare financial managers. Willis(2000) Simultaneous consideration of multiple financial ratios is required to adequately evaluate and rank the relative performance of competing companies. Stanko BB. An empirical study of a real case in China is conducted to illustrate how the approach is used for the inter-company comparison problem. To ensure that the evaluation result is not affected by the inter-dependence of the financial ratios. Francis Edum. and other relevant entities because it affords them a clear understanding of an institution's financial performance. The modified TOPSIS approach can identify the relevance of the financial ratios to the evaluation result. The statistical output also shows the specific sets of financial ratios that can be used to measure the six characteristics of hospital performance. The comparison of objective . The shortcomings of the financial ratio analytical methods are highlighted and some approachesto improving their efficiency presented. and indicate the performance difference between companies on each financial ratio.Fotwe(1996) Stated that there is a variety of financial ratio analytical methodologies for evaluation of construction companies corporate performance and identifying potential insolvent contractors. It has been suggested that standardizing the assessment criteria of subjective index methods for the construction industry can reduce the variation in different expert evaluations and so lead to a more uniform assessment. Hepu Deng. Robert J. Chung . These methodologies comprise traditional approaches. The result shows that the approach can reflect the decision information emitted by the financial ratios used. hospital boards. These characteristics are profitability factor. This confirms the importance of aggregation method in ratio analysis. working capital efficiency. Zeller TL.Hsing Yeh.189 not-for-profit hospitals for the period 1989-1992. and presents an effective approach by modifying TOPSIS for solving the problem. fixed-asset efficiency.indices display time-series stability and cross-sectional invariance. capital structure. policy groups. subjective index and ratio models. Cleverley WO(1997) Stated that using audit financial data in a study of 2. and liquidity. fixed-asset age. six financial characteristics of performance were defined. the transformation approach has been recommended as a means of improving the efficiency of ratio models. As a result. the comparison process is conducted on a commonly accepted basis and is independent of subjective preferences of various stakeholders. objective weights are used.
Performance effects are investigated by measures including operating profit. Kaiser sera (1996) We are focusing on three alternative techniques-linear discriminant analysis. logit analysis uses the logistical cumulative function and genetic algorithms is a global search procedure based on the mechanics of natural selection and natural genetics. The selected techniques all have different assumptions about the relationships between the independent variables. with the modified TOPSIS approach. Ahmad H.(2003) In this paper. The best prediction results were achieved when using genetic algorithms.Juma’h. We build a database of . the entropy measure compares favourably with other methods for the case study conducted. logit analysis and genetic algorithms-that can be used to empirically select predictors for neural networks in failure prediction. (2000) This article investigates the business performance of a sample of companies announcing outsourcing contracts. hotel REIT firms from 1993 through 1999. In particular. Tomas Ekland. These findings suggest that growth via mergers and acquisitions and less reliance on debt financing may help lower systematic risk and enhance hotel REITs'value. return on shareholders‟ capital. The conclusion is that outsourcing companies‟ profitability and liquidity decrease in years in which outsourcing announcements occur. Also. or beta. In an empirical test all three selection methods chose different bankruptcy prediction variables. it investigates the systematic and unsystematic risk of hotel REIT stocks and the determinants of their systematic risk. we illustrate the use of the self-organizing map technique for financial performance analysis and benchmarking. Linear discriminant analysis is based on linear combination of independent variables. and tend to increase in the subsequent year. Systematic risk correlated positively with debt leverage and growth but negatively with firm size. the authors found that 84% of the firms'total risk was contributed by firm-specific. it is possible that the short-term and long-term financial structure of outsourcing companies is altered Hyunjoon kim (2002) This study examines the risk features of hotel real estate investment trust (REIT) firms. Douglas wood. earnings margin.weighting methods suggests that.S. reduction in employment cost and research and development expenditure prior to and subsequent to the outsourcing announcement. unsystematic risk. Using the financial data of 19 U.
and visualize large amounts of multidimensional financial data in a meaningful manner . The results of the study indicate that by using the self-organizing maps.financial ratios indicating the performance of 91 international pulp and paper companies for the time period 1995–2001. We then use the self-organizing map technique to analyze and benchmark the performance of the five largest pulp and paper companies in the world. analyze. we are able to structure.
COMPANY’S STRENGTHS Advanced technological assets and capital equipment. .66 million quintals in the 2008-09-sugar season at Khatauli). translating into a premium and quicker off-take. the premier Australian organization. resulting in a reliable and increasing supply of sugarcane. Triveni SRI Limited. resulting in boiling consistency. Dependable relations with more than 160. resulting in a superior sugarcane quality and an exceptionally high yield. Established culture of cane cultivation in the region. proposed expansion of the Khatauli capacity from 11750 tcd to 16000 tcd. reduced molasses purity. critical for any large sugar unit. a quicker crush enables the farmer to grow wheat on fallow land and earn an attractive supplementary income. Excellent cane procurement logistics. Vast project execution experience in setting up sugar plants and carrying out expansions in view of our earlier experience in sugar plant machinery and through our subsidiary. represented by world-class continuous vacuum pans at the B (sugar boiling) and C (sugar boiling) stages. demonstrated in the systematic pooling of cane from no less then 220 purchase centers in the Khatauli command area without any shortage or inventory pile-up. Largest cane crushing capability across any one unit in India (18. The location of the sugar manufacturing plants in the fertile Doab region (between the Ganga and Yamuna rivers). resulting in the commissioning of the Deoband co-generation project in the fastest implementation time lines.000 farmers across the Khatauli. Canal water availability over a large part of the region. decline in steam consumption and enhanced product quality. uniform crystal size. Strong in-house technical and project management capability. representing one of the highest penetrations of man-made water intervention in India. Deoband and Ramkola command areas. The technology and intellectual property for this equipment were jointly developed with Sugar Research International. Positive recall in a competitive marketplace. reducing the company‟s dependence on monsoon vagaries.
Interestingly. Looking into the short-term. two developments are likely to tip yhr Asian balance: India‟s sugar consumption has been growing at an average annual rate of around 3 per cent over the last ten years. The forecast of the world sugar balance (October2010 to September 2011) indicates that production will be 2 mn tones lower than consumption: world sugar output (October 2010 to September 2011) has been estimated at 146.7 mn tones in the previous year while consumption is estimated 2. leading trade house ED&F Man sees this global (2010-11.2 MMT in 2011-12 to 18. . Oct-Sept) deficit widening to 4 mn tones. discounting the role of artificial sweeteners.5 MMT in 20102011. depleting stocks.1 per cent higher at 148 mn tones (raw value) with increased demand coming out of Asia and the Far East. while consumption.INDUSTRY ANALYSIS World Sugar The total consumption of sugar increases by 1. reducing cane supplies directed towards sugar manufacture. besides. driven by Asia.1 mn tones (raw value) as against 143. In fact. is forecast to increase from 144 mn to 147 mn. the principal factor behind the price rise over the past 18 months was the conviction that global demand growth could outstrip production in 2011-12. global sucrose demand. its production estimate for 2011-12 is unchanged from its 201011 benchmark of 143 mn. China too is likely to become a major importer after 2010 given the limited availability of its resources to expand sugar production. is expected to grow by around one mn tones a year. as well as the belief that high oil prices may induce Brazil and other countries to divert more cane towards the production of ethanol.
It is important to note that the export of white sugar. Chairman Francisco varua (also President of the Philippines Sugar Millers Association) pronounced that ethanol could become the sugar cane industry‟s principal product by the end of the first decade of the new millennium. Any increase in these quotas could help domestic manufactures in the short term. As a result. ordering the European Union to stop dumping subsidized sugar illegally on the global markets or face trade sanctions. the international prices of the white sugar would be higher and would in turn have a favorable impact on India‟s domestic prices. The decision by the Who‟s Appellate Body in Geneva gives the EU up to 15 months to strictly comply with this directive. is heavily subsidized at prices less than 25 percent of the prices prevailing in the European domestic markets. As a result. which would allow it to escape a part of the WTO trade reform process. Not only are fuel ethanol programmes spreading across the globe. Ethanol At the 13th annual International Sugar Organization seminar in 2004. India also suffers from a small quota in the Loma and ACP conventions. The critical factors: the base period chose for the duty reduction commitments. the impact of product-specific negotiations in the WTO Doha Round (as agreed in the July 2004 framework) on sugar was more significant then in the last WTO round of multilateral trade negotiations. which gives members a preferential price in the lucrative EU and US markets. any reform in this area will give Indian exports a significant boost and have a positive impact on global prices. . In 2004. especially from European Union. but more players are becoming aware of the need for cross-order trade to help the product become more competitive against gasoline. More recently. the World Trade Organization‟s highest court issued a final ruling on April 28. But for such exports. the length of the implementation period for making the reductions and whether sugar would be included in a WTO list of sensitive products. 2008.WTO Sugar and dairy products are probably the most protected agricultural sector. a panel of WTO experts estimated that the EU exported about four million metric tones of sugar in 2007-08 (period under investigation) or about three times more then what the rules permitted.
Since Brazil will need to raise ethanol production by 14 bn liters (25 mn tones sugar equivalent) just to meet its growing domestic demand- this represents 175 mn tones of cane, 2.5 mn hectare of extra land and an addition 85 to 90 mills – FO Licht does not expect a large Brazilian sugarcane crop to upset the world sugar balance, especially as ethanol is expected to become dearer over the foreseeable future.
DOMESTIC INDUSTRY SCENARIO AND OUTLOOK
The sugar industry in India is highly fragmented, with 566 sugar units spread over 16 states. The total capital employed by the sugar industry is Rs 250 bn, annual sugarcane payments Rs 180 bn, direct employment for 500,000 and the involvement of 45 mn farmer/families in cane growth. The average size of each unit is approximately 3300 tcd, substantially below the new international economic size of 7500 tcd. Nearly 35 percent of all Indian mills are in the private sector, 6 per cent in the public sector and 59 per cent in the co-operative sector. Despite the large recent profits shown by the Indian sugar industry, 112 mills – old and inefficient remained closed during the year. In a raw material-dependant industry, profitability is influenced by the following factors:
Within the „reserved area‟ of any factory, the yield and size of the area under sugarcane are critical success drivers.
Without a minimum economic size of 5000 tcd (generally 10000 tcd in western Uttar Pradesh), it is becoming increasingly difficult for a sugar unit to command pricing power.
The ability to minimize sugar-processing losses depends on process technology.
The ability to draw a higher percentage of sugarcane from the reserved area reduces the diversion to other sweeteners.
This is directly influenced by soil quality and cane development programmes initiated by progressive manufacturers; a higher sugar content in sugarcane leads to the manufacture of more sugar, while payment is still based on weight.
The ability to bring cane in quickly from the fields and continuously operate a sugar unit minimizes post-harvest sucrose evaporation.
The company achieved 7 % higher crush in 2008-09,a good performance as it competed successfully with producers of alternative sweeteners to reduce cane diversion and increase drawled of sugarcane. Further, the company produced Rs 0.38 million tones of White sugar in 2008-09. Due to late rains, winter frost and overfurtilisation, the sugar recovers in western UP were lower by around 0.6-0.7 % then what had been achieved in 2008-09. Average recovery for our sugar units declined from 10.08 % in 2008-09 to 9.59 % in 2007-08 due to reasons a foresail. It is to the company‟s credit that despite poor weather, the Deoband unit reported one of the highest recoveries among all western U.P. sugar factories during the season under review. Triveni‟s Khatauli, Deoband and Ramkola units crushed 18.66 mn tones, 13.8 mn tones and 3.4 mn tones of sugarcane respectively during the 2008-09 sugar seasons. The sugarcane crushed at the Khatauli sugar unit was the highest across any unit in the country. Recovery was 10.06 per cent at Khatauli, 10.19 per cent at Deoband and 9.86 per cent at Ramkola. The company also imported 0.185 mn tones of raw sugar, which was converted into white sugar during the 2008-09-sugar season. The company produced 1, 96,000 tones in Khatauli (included processed raw sugar), 1,52,000 tones in Deoband (included processed raw sugar) and 33,600 tones in Ramkola, a cumulative 3,81,600 tones in 2008-09 (3,64,400 tones in 2007-08). As a result, company emerged as one of the largest sugar producers in India and expects to preserve this position following the increased production from its ongoing expansion programmes. The company‟s Khatauli unit procured cane from over 220 out-centers during the letter part of the season, a record across any sugar unit in India. Dispersed prudently over a 59000 hectare commend area, Khatauli‟s sugarcane marketing staff refined the logistical system of cane harvest and transportation in the shortest time (empirical studies suggest that if whole stalk sugarcane is not crushed within 16 hours following harvest, the sucrose in the cane is converted into non-sugars with a consequent drop in sugar recovery). This efficiency will stand the company in good stead when it expends its capacity to 16000 tcd in the 2008-09 seasons. Besides engineering stoppages were within
the estimated budget there was an attractive improvement in steam consumption, thereby increasing the allocation of Bagasse for the Deoband co-generation plant.
Global Corporate Strategy
In the opinion of leading international sugar expert F.O.Licht, regulatory, technological and organizational issues will drive the growth of sugar companies. Since sugar is an agricultural commodity, the last factor is expected to influence profits the most. In this connection, it would be reasonable to assume that regulatory differences between various production locations may decline. As a result, companies that profited from „regulation rents‟ (guaranteed income within a protected business environment) will need to change their strategy to protect their longer-term survival. The last of these determinants limits the expansionary drive of sugar companies to national and /or supranational entities (EU) where an identical set of rules guarantees a high degree of planning security. The regulatory environment under which sugar companies operate is often challenging, requiring skill, experience and potential clout. From an international perspective, the industry structure of the sugar sector is surprisingly mature and yet fragmented; technology is advanced but innovations restricted to „normal technological progress; markets saturated but driven by economic or population growth. As a result, technological economies of scale are important in determining the size of an individual plant. From an organizational perspective, companies can succeed through prudent cost reduction by centralizing functions (cost accounting and data processing) or optimizing competencies (bargaining contracts with suppliers and customers etc.).
Company’s Expansion Plans
Company intends to complete the following projects which will enable it to avail benefits / incentives under the UP Government sugar policy: The commissioning of three new sugar plants. Each plant to have 5000 to 7000 tcd capacities (expandable to 10000-12000 tcd at a minimal cost). The commissioning of one of the plants (Sabitgarh) at one of the best sites in India today, with 75 per cent of the cultivable area being canal irrigated with almost no
over 5000 hectares of high recovery sugarcane have been planted. The benefits of this scale equate to a better coverage of overheads. The modernization and expansion of the Khatauli sugar unit from 11750 tcd to 16000 tcd. company‟s cane crushing capacity will significantly rise from its existing aggregate of 25. which will make it the largest single standalone sugar unit in India. company also intends to commission a large distillery to fully consume the large throughput of molasses with the objective to manufacture ethanol in line with the government policy. The commissioning of a 23 MW co-generation plant at Khatauli by September 2011 to supplement the 22 MW cogeneration plant at Deoband. This will present attractive acquisition opportunities and your company expects to avail of them especially if they lie in their targeted geographies. In preparation.250 tcd. Following the establishment of these three units and the expansions at the existing units. . generation of adequate bagasse to ensure the fullest utilization (over 270 days) of company‟s two cogenerations units and tax-free profits from the two-cogeneration units for ten years. It is our opinion that there will be an inevitable consolidation over the next few years in the sugar industry. Going ahead. with unviable plants in the co-operative.low lying sugarcane areas. state government and private sectors closing down.
income statement. While a detailed explanation of ratio analysis is beyond the scope of this section. Ratio analysis can be used both in trend and static analysis. which is easy to use. quantitative analysis can produce excellent results. determined and presented. If used in conjunction with other methods. One aspect looks at the general (qualitative) factors of a company. MEANING OF RATIO ANALYSIS: Ratio analysis is the method or process by which the relationship of items or group of items in the financial statement are computed. the industry. It is a mathematical yardstick that measures the relationship two figures. Ratio analysis is an attempt to derive quantitative measure or guides concerning the financial health and profitability of business enterprises. which are related to each other and mutually interdependent.RATIO ANALYSIS: Fundamental Analysis has a very broad scope. MEANING OF RATIO: A ratio is one figure express in terms of another figure. Ratios look at the relationships between individual values and relate them to how a company has performed in the past. . Ratio is express by dividing one figure by the other related figure. This means crunching and analyzing numbers from the financial statements. There are several ratios at the disposal of an analyst but their group of ratio he would prefer depends on the purpose and the objective of analysis. As accounting ratio is an expression relating two figures or accounts or two sets of account heads or group contain in the financial statements. Ratio analysis isn't just comparing different numbers from the balance sheet. It can provide you with a valuable investment analysis tool. It is simply the quotient of two numbers. other companies. and might perform in the future. or even the economy in general. It can be expressed as a fraction or as a decimal or as a pure ratio or in absolute figures as “ so many times”. Thus a ratio is an expression relating one number to another. and cash flow statement. we will focus on a technique. It's comparing the number against previous years. The other side considers tangible and measurable factors (quantitative).
Cross-sectional analysis compares financial ratios of several companies from the same industry. For example. A company whose leverage ratio is higher than a competitor's has more debt per equity. However. you can determine which company uses greater debt in the conduct of its business. You obtain a better indication of the direction in which a company is moving when several ratios are taken as a group. Ratio analysis can provide valuable information about a company's financial health. you could use a ratio of a company's debt to its equity to measure a company's leverage. By comparing the leverage ratios of two companies. such relationship can be expressed in different ways as follows – .This technique is called cross-sectional analysis. OBJECTIVE OF RATIOS Ratio is work out to analyze the following aspects of business organizationA) Solvency1) Long term 2) Short term 3) Immediate B) Stability C) Profitability D) Operational efficiency E) Credit standing F) Structural analysis G) Effective utilization of resources H) Leverage or external financing FORMS OF RATIO: Since a ratio is a mathematical relationship between to or more variables / accounting figures. You can use this information to make a judgment as to which company is a better investment risk. A financial ratio measures a company's performance in a specific area. you must be careful not to place too much importance on one ratio.
00.00. Similarly. 12.50.00. 30.00.00. 5.00. For example.000 & the preference share capital is Rs. B] As a rate of times: In the above case the equity share capital may also be described as 4 times that of preference share capital.000 or simply 4:1.000: 5. then the gross profit may be described as 20% of sales [ 10.A] As a pure ratio: For example the equity share capital of a company is Rs.000] .00.000. one item may be expressed as a percentage of some other item. 20. C] As a percentage: In such a case.000/50.000] or simply by saying that the credit sales are 2.00. so the ratio of credit sales to cash sales can be described as 2.5 [30.000 & the amount of the gross profit is Rs.5 times that of cash sales. 10. net sales of the firm are Rs.00.000. the cash sales of a firm are Rs.00. the ratio of equity share capital to preference share capital is 20.00.000/12.00.000 & credit sales are Rs.000.
TYPES OF COMPARISONS The ratio can be compared in three different ways – 1] Cross section analysis: One of the way of comparing the ratio or ratios of the firm is to compare them with the ratio or ratios of some other selected firm in the same industry at the same point of time. both are combined together to study the behavior & pattern of ratio. In interpreting the ratio of a particular firm. the analyst cannot reach any fruitful conclusion unless the calculated ratio is compared with some predetermined standard. about the direction of progress of the firm. The importance of a correct standard is oblivious as the conclusion is going to be based on the standard itself. So it involves the comparison of two or more firm‟s financial ratio at the same point of time.STEPS IN RATIO ANALYSIS The ratio analysis requires two steps as follows: 1] Calculation of ratio 2] Comparing the ratio with some predetermined standards. 2] Time series analysis: The analysis is called Time series analysis when the performance of a firm is evaluated over a period of time. then meaningful & comprehensive evaluation of the . The cross section analysis is easy to be undertaken as most of the data required for this may be available in financial statement of the firm. Time series analysis helps to the firm to assess whether the firm is approaching the long-term goals or not. By comparing the present performance of a firm with the performance of the same firm over the last few years. The Time series analysis looks for (1) important trends in financial performance (2) shift in trend over the years (3) significant deviation if any from the other set of data\ 3] Combined analysis: If the cross section & time analysis. The cross section analysis helps the analyst to find out as to how a particular firm has performed in relation to its competitors. The standard ratio may be the past ratio of the same firm or industry‟s average ratio or a projected ratio or the ratio of the most successful firm in the industry. The firms performance may be compared with the performance of the leader in the industry in order to uncover the major operational inefficiencies. an assessment can be made about the trend in progress of the firm.
. the ratio of operating expenses to net sales for firm may be higher than the industry average however. which clearly shows that the ratio of the firm is above the industry average. A trend of ratio of a firm compared with the trend of the ratio of the standard firm can give good results. For example. but it is decreasing over the years & is approaching the industry average. over the years it has been declining for the firm.performance of the firm can definitely be made. whereas the industry average has not shown any significant changes. The combined analysis as depicted in the above diagram.
Therefore. 3) Accounting policies followed by different firms must be same in case of cross section analysis otherwise the results of the ratio analysis would be distorted. This will be conductive to counter checks. 4) One ratio may not throw light on any performance of the firm. The accounting figures are inactive in them & can be used for any ratio but meaningful & correct interpretation & conclusion can be arrived at only if the following points are well considered. which must be taken care of. only audited financial statements should be considered. a group of ratios must be preferred. 1) The dates of different financial statements from where data is taken must be same. 2) If possible.PRE-REQUISITIES TO RATIO ANALYSIS In order to use the ratio analysis as device to make purposeful conclusions. there are certain pre-requisites. . otherwise there must be sufficient evidence that the data is correct. 5) Last but not least. It may be noted that these prerequisites are not conditions for calculations for meaningful conclusions. the analyst must find out that the two figures being used to calculate a ratio must be related to each other. otherwise there is no purpose of calculating a ratio.
solvency & capital structure of the concern. and Proprietory ratio.CLASSIFICATION OF RATIO CLASSIFICATION OF RATIO BASED ON FINANCIAL STATEMENT BASED ON FUNCTION BASED ON USER 1] BALANCE SHEET RATIO 2] REVENUE STATEMENT RATIO 3] COMPOSITE RATIO 1] LIQUIDITY RATIO 2] LEVERAGE RATIO 3] ACTIVITY RATIO 4] PROFITABILITY RATIO 5] COVERAGE RATIO 1] RATIOS FOR SHORT TERM CREDITORS 2] RATIO FOR SHAREHOLDER 3] RATIOS FOR MANAGEMENT 4] RATIO FOR LONG TERM CREDITORS BASED ON FINANCIAL STATEMENT Accounting ratios express the relationship between figures taken from financial statements. 1] Balance sheet ratio: If the ratios are based on the figures of balance sheet.g. there is no need to refer to the Revenue statement. These ratio help to judge the liquidity. Debt equity ratio. These ratios study the relationship between the assets & the liabilities. they are called Balance Sheet Ratios. Figures may be taken from Balance Sheet . Capital gearing ratio. P& P A/C. While calculating these ratios. E. One-way of classification of ratios is based upon the sources from which are taken. . of the concern. Balance sheet ratios are Current ratio. and Stock working capital ratio. ratio of current assets to current liabilities or ratio of debt to equity. or both. Liquid ratio.
Stock turnover ratio. & Proprietory ratios. dividend payout ratios. creditors turnover ratios. Operating ratio. debt equity ratios. 3] Composite ratio: These ratios indicate the relationship between two items. . 1] Liquidity ratios: It shows the relationship between the current assets & current liabilities of the concern e. 3] Activity ratios: It shows relationship between the sales & the assets. Expense ratio. debtors turnover ratios. b) Other composite ratios e.g. profitability ratios & turnover ratios.2] Revenue ratio: Ratio based on the figures from the revenue statement is called revenue statement ratios. return on proprietors fund. Net profit ratio. of which one is found in the balance sheet & other in revenue statement. There are two types of composite ratiosa) Some composite ratios study the relationship between the profits & the investments of the concern. 2] Leverage ratios: It shows the relationship between proprietors funds & debts used in financing the assets of the concern e. Net operating profit ratio. leverage ratios. These ratio study the relationship between the profitability & the sales of the concern. stock turnover ratios.g. return on equity capital etc.g.g. E. activity ratios. return on capital employed.g. debtors turnover ratios. & debt service ratios BASED ON FUNCTION: Accounting ratios can also be classified according to their functions in to liquidity ratios. capital gearing ratios. Revenue ratios are Gross profit ratio. liquid ratios & current ratios. It is also known as Turnover ratios & productivity ratios e.
liquid ratios. return on equity capital.4] Profitability ratios: a) It shows the relationship between profits & sales e. operating ratios.g. proprietor ratios.g. gross profit ratios. expenses ratios 4] Ratios for long-term creditors: Debt equity ratios. stock working capital ratios 2] Ratios for the shareholders: Return on proprietors fund. BASED ON USER: 1] Ratios for short-term creditors: Current ratios. . dividend payout ratios & debt service ratios. turnover ratios. return on capital employed. return on equity capital 3] Ratios for management: Return on capital employed. 5] Coverage ratios: It shows the relationship between the profit on the one hand & the claims of the outsiders to be paid out of such profit e. operating ratios. return on investment. expenses ratios b) It shows the relationship between profit & investment e. operating net profit ratios.g.
These ratios are discussed below . Quick/Acid-Test ratio.LIQUIDITY RATIO: Liquidity refers to the ability of a firm to meet its short-term (usually up to 1 year) obligations. which indicate the liquidity of a company. are Current ratio. The ratios. and Cash ratio.
in the ordinary course of business. .term liabilities. provision for taxation. as originally contemplated. with in a year. Current assets include cash and bank balances. bills receivable. the greater the short-term solvency. bank credit. normally not exceeding one year. CA gets converted into cash in the operating cycle of the firm and provides the funds needed to pay for CL. semi-finished and finished goods.g.e. Any ratio below indicates that the entity may face liquidity problem but also Ratio over 2: 1 as above indicates over trading. that is the entity is under utilizing its current assets. It is expressed in the form of pure ratio. E.. dividends payable and outstanding expenses. which will be due for payment in the same period and is intended to indicate whether there are sufficient shortterm assets to meet the short. Recommended current ratio is 2: 1. This compares assets. Current ratio (CR) is the ratio of total current assets (CA) to total current liabilities (CL). 2:1 Formula: Current assets Current ratio = Current liabilities The current assests of a firm represents those assets which can be. i. The current liabilities defined as liabilities which are short term maturing obligations to be met. inventory of raw materials. CR measures the ability of the company to meet its CL. debtors (net of provision for bad and doubtful debts). bills payable. which will become liquid within approximately twelve months with liabilities. This ratio measures the liquidity of the current assets and the ability of a company to meet its short-term debt obligation. Current liabilities consist of trade creditors. converted into cash within a short period time. marketable securities. and prepaid expenses.CURRENT RATIO Meaning: This ratio compares the current assests with the current liabilities. It is also known as „working capital ratio‟ or „ solvency ratio‟. The higher the current ratio.
The term quick assets refer to current assets.g. Generally. QA refers to those current assets that can be converted into cash immediately without any value strength. One drawback of the quick ratio is that it ignores the timing of receipts and payments. QA includes cash and bank balances. Liquid ratio compare the quick assets with the quick liabilities. which can be converted into. QR indicates the extent to which a company can pay its current liabilities without relying on the sale of inventory. cash immediately or at a short notice without diminution of value. Inventories are excluded from the numerator of this ratio because they are deemed the least liquid component of current assets. E. a quick ratio of 1:1 is considered good. Formula: Cash + Bank + Marketable securities Cash ratio = Total current liabilities . Formula: Quick assets Liquid ratio = Quick liabilities Quick Ratio (QR) is the ratio between quick current assets (QA) and CL. CASH RATIO Meaning: This is also called as super quick ratio.LIQUID RATIO: Meaning: Liquid ratio is also known as acid test ratio or quick ratio. This is a fairly stringent measure of liquidity because it is based on those current assets. 1:1. This ratio considers only the absolute liquidity available with the firm. It is expressed in the form of pure ratio. and sundry debtors. Inventory and prepaid expenses are excluded since these cannot be turned into cash as and when required. which are highly liquid. short-term marketable securities.
If there is only one class of shares. If the super liquid assets are too much in relation to the current liabilities then it may affect the profitability of the firm. the earning per share are determined by dividing net profit by the number of equity shares. INVESTMENT / SHAREHOLDER EARNING PER SAHRE:- Meaning: Earnings per Share are calculated to find out overall profitability of the organization. An earnings per Share represents earning of the company whether or not dividends are declared. Formula: NPAT Earning per share = Number of equity share .Since cash and bank balances and short term marketable securities are the most liquid assets of a firm. financial analysts look at the cash ratio. EPS measures the profits available to the equity shareholders on each share held.
Formula: Dividend Paid to Ordinary Shareholders Dividend per Share = Number of Ordinary Shares DIVIDEND PAYOUT RATIO:Meaning: Dividend Pay-out Ratio shows the relationship between the dividend paid to equity shareholders out of the profit available to the equity shareholders.The higher EPS will attract more investors to acquire shares in the company as it indicates that the business is more profitable enough to pay the dividends in time. *100 . But remember not all profit earned is going to be distributed as dividends the company also retains some profits for the business DIVIDEND PER SHARE:Meaning: DPS shows how much is paid as dividend to the shareholders on each share held. Formula: Dividend per share Dividend Pay out ratio = Earning per share D/P ratio shows the percentage share of net profits after taxes and after preference dividend has been paid to the preference equity holders.
GEARING CAPITAL GEARING RATIO:Meaning: Gearing means the process of increasing the equity shareholders return through the use of debt. Formula: Preference capital+ secured loan Capital gearing ratio = Equity capital & reserve & surplus Capital gearing ratio indicates the proportion of debt & equity in the financing of assets of a concern. This is also known as leverage or trading on equity. Equity shareholders earn more when the rate of the return on total capital is more than the rate of interest on debts.equity capital & preference capital & long term borrowings. . The Capital-gearing ratio shows the relationship between two types of capital viz: . It is expressed as a pure ratio.
which generates a substantial amount of profits per rupee of sales. can comfortably meet its operating expenses and provide more returns to its shareholders. There are two types of profitability ratios: Gross Profit Margin and Net Profit Margin. A firm. .PROFITABILITY These ratios help measure the profitability of a firm. The relationship between profit and sales is measured by profitability ratios.
how good its control is over the direct cost. Formula: NPAT Net profit ratio = Net sales * 100 = Net sales * 100 This ratio shows the net earnings (to be distributed to both equity and preference shareholders) as a percentage of net sales. how productive the concern .GROSS PROFIT RATIO:Meaning: This ratio measures the relationship between gross profit and sales. how much amount is left to meet other expenses & earn net profit. Jointly considered. the gross and net profit margin ratios provide an understanding of the cost and profit structure of a firm. administration. selling & inventory. This ratio shows the profit that remains after the manufacturing costs have been met. . It is defined as the excess of the net sales over cost of goods sold or excess of revenue over cost. This ratio helps to judge how efficient the concern is I managing its production. pricing and tax management. purchase. selling. Formula: Gross profit Gross profit ratio NET PROFIT RATIO:Meaning: Net Profit ratio indicates the relationship between the net profit & the sales it is usually expressed in the form of a percentage. financing. It measures the overall efficiency of production. It measures the efficiency of production as well as pricing.
The important turnover ratios are debtors turnover ratio.RETURN ON CAPITAL EMPLOYED:Meaning: The profitability of the firm can also be analyzed from the point of view of the total funds employed in the firm. It is the sum of long-term liabilities and owner's equity. inventory/stock turnover ratio. ROCE indicates the efficiency with which the long-term funds of a firm are utilized. Capital employed refers to the long-term funds invested by the creditors and the owners of a firm. These are described below: . fixed assets turnover ratio. They are also called efficiency ratios or asset utilization ratios as they measure the efficiency of a firm in managing assets. Formula: NPAT Return on capital employed = Capital employed *100 FINANCIAL These ratios determine how quickly certain current assets can be converted into cash. average collection period. It means that the capital employed comprises of shareholder funds plus long-term debts. Alternatively it can also be defined as fixed assets plus net working capital. These ratios are based on the relationship between the level of activity represented by sales or cost of goods sold and levels of investment in various assets. The term fund employed or the capital employed refers to the total long-term source of funds. and total assets turnover ratio.
from customers. It measures the liquidity of a firm's debts. The higher the DTO. Formula: Credit sales Debtors turnover ratio = Average debtors INVENTORY OR STOCK TURNOVER RATIO (ITR) Meaning: ITR refers to the number of times the inventory is sold and replaced during the accounting period. Net credit sales are the gross credit sales minus returns. if any. the better it is for the organization. Average debtors are the average of debtors at the beginning and at the end of the year.DEBTORS TURNOVER RATIO (DTO) Meaning: DTO is calculated by dividing the net credit sales by average debtors outstanding during the year. Formula: COGS Stock Turnover Ratio = Average stock . This ratio shows how rapidly debts are collected.
However. However. It relates shareholders fund to total assets. the fixed assets turnover ratio tends to be high (because the denominator of the ratio is very low). the average of inventories at the beginning and the end of the year is taken. cost of goods sold) is related to a stock figure (inventories). Formula: Proprietary fund Proprietary ratio = Total fund OR . FIXED ASSETS TURNOVER (FAT) The FAT ratio measures the net sales per rupee of investment in fixed assets. and vice versa. It is usually expressed in the form of percentage.ITR reflects the efficiency of inventory management. PROPRIETORS RATIO: Meaning: Proprietary ratio is a test of financial & credit strength of the business. averages may be used when a flow figure (in this case. Proprietary ratio determines as to what extent the owner‟s interest & expectations are fulfilled from the total investment made in the business operation. which may lead to frequent stock outs and loss of sales and customer goodwill. The higher the ratio. A high ratio indicates a high degree of efficiency in asset utilization while a low ratio reflects an inefficient use of assets. For calculating ITR. Proprietary ratio compares the proprietor fund with total liabilities. Total assets also know it as net worth. In other words. This ratio determines the long term or ultimate solvency of the company. this ratio should be used with caution because when the fixed assets of a firm are old and substantially depreciated. the more efficient is the management of inventories. In general. a high inventory turnover may also result from a low level of inventory. Formula: Net sales Fixed assets turnover = Net fixed assets This ratio measures the efficiency with which fixed assets are employed.
It helps to judge the quantum of inventories in relation to the working capital of the business. Alternatively. This ratio also helps to study the solvency of a concern. It is expressed as a percentage. It is a qualitative test of solvency. It shows the extent of funds blocked in stock. 2:1 Formula: Total long-term debt Debt equity ratio = Total shareholders fund .g. this ratio indicates the relative proportion of debt & equity in financing the assets of the firm. It indicates the composition & quality of the working capital. DEBT EQUITY RATIO: MEANING: This ratio compares the long-term debts with shareholders fund. Formula: Stock Stock working capital ratio = Working Capital Stock working capital ratio is a liquidity ratio.Shareholders fund Proprietary ratio = Fixed assets + current liabilities STOCK WORKING CAPITAL RATIO: Meaning: This ratio shows the relationship between the closing stock & the working capital. The ratio highlights the predominance of stocks in the current financial position of the company. If investment in stock is higher it means that the amount of liquid assets is lower. It is usually expressed as a pure ratio. The relationship between borrowed funds & owners capital is a popular measure of the long term financial solvency of a firm. This relationship is shown by debt equity ratio. The purpose of this ratio is to show the extent to which working capital is blocked in inventories. E.
It is a relation between net credit purchase and average creditors Net credit purchase Credit turnover ratio = Average creditors Months in a year Average age of accounts payable = Credit turnover ratio . Debt equity ratio shows the margin of safety for long term creditors & the balance between debt & equity. RETURN ON PROPRIETOR FUND: Meaning: Return on proprietors fund is also known as „return on proprietors equity‟ or „return on shareholders investment‟ or „ investment ratio‟. Return on proprietors fund is a profitability ratio. Leverage is also known as „gearing‟ or „trading on equity‟. Formula: NPAT Return on proprietors fund = Proprietors fund * 100 CREDITORS TURNOVER RATIO: It is same as debtors turnover ratio. This ratio is of practical importance to prospective investors & shareholders. This ratio helps to judge how efficient the concern is in managing the owner‟s fund at disposal. It shows the speed at which payments are made to the supplier for purchase made from them. Leverage means the process of the increasing the equity shareholders return through the use of debt.Debt equity ratio is also called as leverage ratio. This ratio indicates the relationship between net profit earned & total proprietors funds. which the relationship between profit & investment by the proprietors in the concern. Its purpose is to measure the rate of return on the total fund made available by the owners.
A very low ratio indicates that the company is not taking full benefit of the credit period allowed by the creditors. It enhances credit worthiness of the company. Higher creditors turnover ratio or a lower credit period enjoyed signifies that the creditors are being paid promptly. .Both the ratios indicate promptness in payment of creditor purchases.
ratios are of crucial significance. 1] LIQUIDITY POSITION: With the help of Ratio analysis conclusion can be drawn regarding the liquidity position of a firm. The importance of ratio analysis lies in the fact that it presents facts on a comparative basis & enables the drawing of interference regarding the performance of a firm. The leverage ratios. The liquidity ratio are particularly useful in credit analysis by bank & other suppliers of short term loans. Ratio analysis reveals the strength & weaknesses of a firm in this respect. 2] Long-term solvency. This respect of the financial position of a borrower is of concern to the long-term creditors. for instance. This ability is reflected in the liquidity ratio of a firm. Similarly the various profitability ratios would reveal whether or not the firm is able to offer adequate return to its owners consistent with the risk involved. The long-term solvency is measured by the leverage/ capital structure & profitability ratio Ratio analysis s that focus on earning power & operating efficiency. . A firm can be said to have the ability to meet its short-term liabilities if it has sufficient liquid funds to pay the interest on its short maturing debt usually within a year as well as to repay the principal. will indicate whether a firm has a reasonable proportion of various sources of finance or if it is heavily loaded with debt in which case its solvency is exposed to serious strain. 2] LONG TERM SOLVENCY: Ratio analysis is equally useful for assessing the long-term financial viability of a firm.IMPORTANCE OF RATIO ANALYSIS: As a tool of financial management. Ratio analysis is relevant in assessing the performance of a firm in respect of the following aspects: 1] Liquidity position. 3] Operating efficiency. 4] Overall profitability. 5] Inter firm comparison 6] Trend analysis. The liquidity position of a firm would be satisfactory if it is able to meet its current obligation when they become due. security analyst & the present & potential owners of a business.
in the ultimate analysis. to ensure a reasonable return to its owners & secure optimum utilization of the assets of the firm. The various activity ratios measures this kind of operational efficiency. relevant from the viewpoint of management. This is possible if an integrated view is taken & all the ratios are considered together. the solvency of a firm is. whether the movement is favorable or unfavorable. is that it throws light on the degree of efficiency in management & utilization of its assets. For example. This is made possible by the use of trend analysis. That is. A single figure of a particular ratio is meaningless unless it is related to some standard or norm. This is made possible due to inter firm comparison & comparison with the industry averages. the ratio may be low as . the management is constantly concerned about overall profitability of the enterprise. take remedial measures. It should be reasonably expected that the performance of a firm should be in broad conformity with that of the industry to which it belongs.3] OPERATING EFFICIENCY: Yet another dimension of the useful of the ratio analysis. In fact. one of the popular techniques is to compare the ratios of a firm with the industry average. The significance of the trend analysis of ratio lies in the fact that the analysts can know the direction of movement. 6] TREND ANALYSIS: Finally. If the results are at variance either with the industry average or with the those of the competitors. 4] OVERALL PROFITABILITY: Unlike the outsides parties. which are interested in one aspect of the financial position of a firm. An inter firm comparison would demonstrate the firms position vice-versa its competitors. they are concerned about the ability of the firm to meets its short term as well as long term obligations to its creditors. ratio analysis enables a firm to take the time dimension into account. 5] INTER – FIRM COMPARISON: Ratio analysis not only throws light on the financial position of firm but also serves as a stepping-stone to remedial measures. In other words. the firm can seek to identify the probable reasons & in light. whether the financial position of a firm is improving or deteriorating over the years. dependent upon the sales revenues generated by the use of its assets. that is.total as well as its components.
and so might not give a proper indication of the company‟s current financial position. On the other hand. operating efficiency. Ratio analysis provides a basis for both intra-firm as well as inter-firm comparisons. which give the decision-maker insights into the financial performance of a company. asset valuations in the balance sheet could be misleading. ADVANTAGES OF RATIO ANALYSIS Financial ratios are essentially concerned with the identification of significant accounting data relationships. The advantages of ratio analysis can be summarized as follows: Ratios facilitate conducting trend analysis. Where historical cost convention is used. profitability and solvency of a firm. The figures in a set of accounts are likely to be at least several months out of date. though the present level may be satisfactory but the trend may be a declining one.compared to the norm but the trend may be upward. which is important for decision making and forecasting. Ratio analysis helps in the assessment of the liquidity. Ratios based on this information will not be very useful for decision-making. . LIMITATIONS OF RATIO ANALYSIS Ratio analysis has its limitations. The comparison of actual ratios with base year ratios or standard ratios helps the management analyze the financial performance of the firm. These limitations are described below: 1] Information problems Ratios require quantitative information for analysis but it is not decisive about analytical output .
not qualitative information. Inter-firm comparison may not be useful unless the firms compared are of the same size and age. The movement in performance should be in line with the changes in price. there is need to consider the changes in price. comparisons can be distorted by changes in the price level. and employ similar production methods and accounting practices. When comparing performance over time. comparing the performance of two enterprises may be misleading. Changes in accounting policy may affect the comparison of results between different accounting years as misleading. The movement in performance should be in line with the changes in technology. They do not indicate future trends and they do not consider economic conditions.2] Comparison of performance over time When comparing performance over time. Selective application of government incentives to various companies may also distort intercompany comparison. Ratios provide only quantitative information. 3] Inter-firm comparison Companies may have different capital structures and to make comparison of performance when one is all equity financed and another is a geared company it may not be a good analysis. there is need to consider the changes in technology. Ratios are calculated on the basis of past financial statements. Even within a company. PURPOSE OF RATIO ANLYSIS: 1] To identify aspects of a business‟s performance to aid decision making 2] Quantitative process – may need to be supplemented by qualitative .
Thus proper comparison of ratios may reveal where a firm is placed as compared with earlier period or in comparison with the other firms in the same industry. as the ratio all by them do not mean anything. Ratio analysis is one of the best possible techniques available to the management to impart the basic functions like planning & control. At the same time.Factors to get a complete picture. either individually or in relation to those of other firms in the same industry. Ratio analysis helps to appraise the firm in terms of their profitability & efficiency of performance. 3] 5 main areas: Liquidity – the ability of the firm to pay its way Investment/shareholders – information to enable decisions to be made on the extent of the risk and the earning potential of a business investment Gearing – information on the relationship between the exposure of the business to loans as opposed to share capital Profitability – how effective the firm is at generating profits given sales and or its capital assets Financial – the rate at which the company sells its stock and the efficiency with which it uses its assets ROLE OF RATIO ANALYSIS: It is true that the technique of ratio analysis is not a creative technique in the sense that it uses the same figure & information. ratio calculated on the basis of historical financial statements may be . it is true that what can be achieved by the technique of ratio analysis cannot be achieved by the mere preparation of financial statement. inter firm comparison or comparison with standard ratios. As the future is closely related to the immediate past. This comparison may be in the form of intra firm comparison. which is already appearing in the financial statement. The process of this appraisal is not complete until the ratio so computed can be compared with something.
. activity. which need the management attention in order to improve the situation. As the ratio analysis is concerned with all the aspect of a firms financial analysis i.e.of good assistance to predict the future. it enables the interested persons to know the financial & operational characteristics of an organisation & take the suitable decision. solvency. profitability & overall performance. liquidity. Ratio analysis also helps to locate & point out the various areas.
2) Secondary data:The secondary data collected The balance sheets as on the date of 31st march for the years- 2009 – 2010 2010 – 2011 2011 . Notes & Books. Analysis of the collected data for its application.2012 The methodology of this study has been adopted on the following basis: Study of various Journals. 1) Primary data: The information about the Company is gathered from the discussion with the employees/staff and from the web site of the Company. Study through web-sites Collection of Primary & Secondary data records of the organization. .METHODOLOGY OF THE STUDY The data collected for the project was in the form of written as well as verbal information regarding ratio analysis of the company.
To analyze the liquidity position of the company. To throw light on a long term solvency of a firm.OBJECTIVE OF THE STUDY: To know the financial condition of the company. .
Therefore. Some of the information is lack of accuracy. could not be collected. Due to confidentiality some important information. Hence. . due to which approximately values were used for the analysis. Hence. the results also reveal approximate values. which itself acts as a major constraint.LIMITATION OF THE STUDY Generally company does not allow outsiders to conduct any study or research work in company. Moreover. it may not be apply to different situations. which are important for the project. studying the guidelines and applied it practically within such short time span was a task of great pressure. The project is based on theoretical guidelines and as per situations prevalent at the time of practical training. get the project done in company itself was very difficult. The time span for the project was very short which was of 2 months.
ANALYSIS RATIO ANALYSIS .
and the firm itself.97 2011 63.87 2010 76.59.19.If we look at this Debt equity ratio we can say the company is having long term debt in 2012 by 3.33.80.000.965.20.31 Chart showing changes in Debt Equity Ratio 2012 49% 2010 28% 2011 23% The D/E ratio is an important tool of financial analysis to appraise the financial structure of a firm.840 33.000 1.40. It has important implication from the view point of the creditors.64. The ratio reflect the relative contribution of creditors and owners of business in its financing.26 34.97.03.00 3.59.000 34. . Here the long term debt are increasing by a relatively higher rate to 49% in 2012 as compared to 2011 where it increase to 23%.481 2.03.80. owners.71.1) Debt Equity Ratio: Long Term Debt Debt Equity Ratio = Share Holders Fund Debt= Secured loan + unsecured loan (long term) Particular’s Debt Equity Ratio 2012 135.
22.214.171.124) Shareholders equity ratio: Share holders Equity Shareholders equity ratio: = Total assets (Tangible) Particulars Shareholders funds Total assets Ratio 2012 83.31 Share holders equity: Equity shares+ Preference+ Reserves and surplus.466 0.329.46.65 2.93. .000 0.92.38.627 110.364.000 152.38 2011 60.39 2010 34.00.91 0.67.74.33.69.18.losses (if any) Chart showing changes in Shareholders equity ratio 2012 35% 2010 29% 2011 36% If we look at this ratio we can say the company is having increase in shareholders equity ratio in the following year by year bases.
62 2011 63.93. Here higher the ratio higher the obligation and vice-versa.000 1.65 1.364.965.23 : Debt to Net worth Ratio 33% in 2012 46% in 2010 21%in 2011 If we look at this ratio we can say the company is having more long term debts than its net worth.80.38.40.losses Particulars Long term debt Net worth Ratio 2012 126.96.36.1997 188.8.131.52 83.04 2010 76.92.000 60.3)Debt to net worth ratio: Long term debt Debt to Net worth Ratio = Net worth Net worth: equity + preference+ reserves and surplus.64. .45.74.840 34. So the company has to taken care of it.
63.000 0.36.09.96 Fixed assets to long term funds 2012 39% 2010 29% 2011 33% If we look at this ratio the company is getting more and more long term funds from year to year.92.99.75 169.23.08.321 0.52. Ratio 2012 1.394. This analysis states us that the company securing itself by raising its long term funds.90.687 109.965.85 2010 83.4) Fixed assets to long term funds: Fixed assets Fixed assets to long term funds: Long term funds.000 97.19. This raise the company‟s capability of investment. .60 2011 184.108.40.206 0.12. Long term funds = equity + debt Particular’s Fixed Assets Long term funds.
5 2 Current ratio 1.61.842.53 68.44 2.5) Current ratio: Current assets Current ratio: Current liabilities Particular’s 2012 2011 2010 Current assets 111.42.91 220.127.116.11.485.691.08.22 27.92.5 1 0.20.63.26 42.17.329.78 Current ratio 3 2.97 Current Liability 58.5 0 2010 2011 2012 : .78.52 15.185.07 Ratio 1.67.08.
the larger is the amount of rupees available per rupees of current liabilities. As the current ratio is moving downwards from year to year. So the company has taken care of it. Company‟s current ratio is far better than its ideal level. it states us that the company is becoming lesser capable to meet its short term obligations. Higher the current ratio. the more is the firm‟s ability to meet current obligation and greater is safety of fund of short term creditors. .we shown too much higher ratio its good for the company.The ideal level of current ratio is 2:1. If the company‟s current ratio goes lesser than 1 it would be very harmful to the company.
bank o/d Particular’s 2012 2011 2010 Current Assets. By above analysis the company from 2010 to 2011 it had more capability of .92.176.35 1.22 27.72 37.08.185.16 19.518.104.22.168.65.17.compare to current ratio stock is deducted from current assets because we can‟t convert stock into cash in short period of time.36 58.90.485.29 Quick Ratio 2012-30% 2010 -34% 2011-36% Ideal level of this ratio is 1:1.6) Quick Ratio: Current assets.52 15.81.691.61.stock Quick Ratio: Current liabilities. If we look at the quick ratio we can say that the company is not so consistent to meet its short term debt obligations.07 1.90.Stock Current Liability – Bank overdraft Ratio 66.723.63.14 1.
60 21. The above analysis states us that the company as compared to 2012 into 2011 it is not having fair margin and if we 2011 into 2010 it has gained good margin in it.93.137.26 22.214.171.124 34.364.52. 7)Return on capital employed: Return on Capital Employed = Net Profit * 100 Capital Employed Particulars Net Profit 2012 22.74. .92.38.64.repaying its debt obligations and if compare 2011 to 2012 it has lost its capability of repayment of its debt obligations.09.29.391.69 Capital Employed Ratio 83.20 Return on Capital Employed 2012 32% 2010 25% 2011 43% This position of the company states us that the company is fair enough in its return on capital employed.627 0.25 2011 2010 7.18.000 0.97.081.65 0.
705.60 247.243. but also to leave a margin of reasonable compensation to the owners for providing their capital at risk. By above analysis we can say that as compared to 2009 into 2010 it has gained good control over its costs and if we compare 2012 into 2011 the company is not having much control over its costs.990.8) Net profit margin: Net Profit Margin = Net Profit before interest and Tax * 100 Sales Particulars Net Profit before interest and Tax 2012 251.40 0.13 Net Profit Margin 2012 35% 2010 22% 2011 43% The net profit margin is indicate of managment‟s ability to operate the business with sufficient success not only to recover from revenues of the period. the cost of merchandise or services.25 2011 2010 70929391.19 0.69 Sales 1. the expenses of operating the business and the cost of the borrowed funds. .501.160.003.26 518359946.877.75 Ratio 0.21 942.079.131.
2) By observing current ratio. which would level the company to greater heights.NEED AND RECOMMENDATION On the basis of analysis. This states us that there is no unutilized fund in the company. we can say that the company is having more current assets than its current liabilities. we can say that the company is utilizing its equity fully. the recommendation to further improves the working capital management. . 1) As we seen in the current ratio.
By above analysis the company from 2010 to 2011 it had more capability of repaying its debt obligations and if compare 2011 to 2012 it has lost its capability of repayment of its debt obligations. If we look at this ratio we can say the company is having more long term debts than its net worth. The current ratio of treveni is far more better than its ideal ratio. if It‟s necessary.INTERPRETATION From the study of ratio analysis. . The above analysis states us that the company as compared to 2012 into 2011 it is not having fair margin and if we 2011 into 2010 it has gained good margin in it. The net profit of company is also on an average consider to be good for a big company. I have found that it is a very difficult task to maintain ideal ratios in such a big organization. so in the future if innovionce can borrow some money from the market.
Company should improve the supply chain management. Try to get the payment as early as possible by giving the various discount. Company should take the help of the cane society and local administrative authority of their area to avoid unhealthy competitions. Proper empowerment. Company should arrange sufficient number of trucks at centers to avoid accumulation of cane purchased. Company should have their own transportation.SUGGESTIONS Sometimes gap between top-level management and lower level management may cause some harmful results. . Sufficient number of computers should be there. So proper steps should be taken to reduce this communication gap.
83 Million 0.CONCLUSION The conclusion of whole project “Study of Ratio Analysis at Triveni Sugar” is that Triveni Engineering and Industries Limited is one of the largest sugar producers of India.37 Million 2130.79 Million The overall working of the factory during the year 2011-12 was considering satisfactory. The performance of the company in year 2011-12 is: Net Sales EBIDTA Profit after Tax Earning Per Share Book Value Total Debt / Equity ratio 11920.00 Million 1314.96 Million 5.98 Million 19. .
And Ind. 3) DONALD R. (Triveni Engg.BIBLIOGRAPHY 1) I. MANAGEMENT ACCOUNTING THIRD EDITION S. (Triveni Engg. EIGHT EDITION VIKASH PUBLISING HOUSE PRIVATE LTD. 2005. P K JAIN 2008.N.google.FINANCIAL MANAGEMENT. TATA MC.PANDEY.PILLAI & BAGHAVATHI.2000. – DEC. BUSINESS RESEARCH METHODS EIGHT EDITION . Ltd) Annual Report 2010-11. 2) R. 4) M Y KHAN. GRAW-HILL EDITION. And Ind. COOPER & PAMELA S.M. Ltd) Economic Times . www.CHAND PUBLICATION. SCHINDLER.trivenigroup. FINANCIAL MANAGEMENT FIFTH EDITION TATA MCGRAW-HILL PUBLISHING COMPANY LIMITED.S.com www.com Annual Report 2011-12.
: …………………………………………. Q1) Free Levy Q2) Free Levy Q3) What is the proportion of distribution of produced sugar? What is the proportion of distribution of Molasses? What is the quantity of cane crushing in a particular unit / day? Khatauli Deoband Ramkola Sabitgarh Q4) what is the Percentage of use of the different way in distribution of produced sugar? Rail Road Q5) What is the contribution of a particular state in generating the sales revenue? Utter Pradesh Punjab Rajasthan Haryana .QUESTIONNAIRE Name : ………………………………………… Address: ………………………………………… Phone No.
Q6) What is the Percentage of total profit contributed by the sugar business in respect of other businesses of the company? In 2011-12 Sugar Other In 2010-11 Sugar Other Q7) What is the per capita sugar consumption in different countries? Brazil Pakistan India Africa Q8) what is the percentage role of banks played in the payment of sugarcane payment? Bank Role Company Role Q9) does raw sweet affects the sale of sugar? Yes No Q10) Up to what extent raw sweet affects the sale of sugar? Affects Not Affect .
P.Q11) What is the percentage of sugar production in each unit? Khatauli Deoband Ramkola Sabitgarh Q12) What is the percentage contribution of profit given by each unit? Khatauli Deoband Ramkola Sabitgarh Q13) Does company give any commission to the agents of the company? Yes No Q14) What is the percentage of sale of sugar in Utter Pradesh with respect to other states? U. Sale Central sale 3 Q15) which type of sugar does the company produce? S-31 M-31 L-31 Q16) What is the mode of sugar payment by agents? a In cash In credit By check Partially by check and credit .
Q17) Which type of transportation facility you have? Own facility Hired Q18) What is the time spending in between the delivery of sugar and payment of sugar? With in 7 days With in 15 days With in 30 days Q19) To whom agents give the payment of sugar? To Bank To Company .