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CHAPTER I INTRODUCTION OF THE STUDY 1.1.

Introduction
India stands first in the world in sugarcane and sugar production. Sugarcane is cultivated in about ten lakh acres with 28.3 crores tones production. In Andra Pradesh, sugarcane crop is cultivated in 4.5 lakh acres with 136 lakh tones production. It this half of production is useful for 6.5 lakh tones sugar preparation for seed purpose and rest is for jiggery preparation. In Andhra Pradesh average yield per acre is 28 tones only. To improve the yield and for serving the farming community Nagarjuna Fertilizers and chemicals limited is giving these hints to be followed to increase yield in sugarcane cultivation.

1.2. Climatic requirements


A growing season which is long and warm with adequate rainfall or irrigation, long hours of bright sunshine and higher relative humidity with permits rapid growth to build up adequate yield more tonnage and a ripening season of around 2-3 months duration having warm days, clear skies, cool nights and relatively a dry weather without rainfall and higher difference in day (maximum) and night (minimum) temperatures for buildup of sugar are required.

1.3. Seeds and Sowing Land Preparation


Soils to be worked to fine tilt to a depth of 20 cm at least once in 2 to 3 years. Open trenches of 30 cm with, 20 cm depth and 50 cm ridges have to be formed by 80 cm between, cane rows for early varieties and 100 cm for late verities is to be adopted.

1.4. Seed Material / Planting


Immature seed material taken from tops of narrowed canes or from entire canes of young crop of about 7 to 8 months age is to be planted. 16000 three budded setts are to be planted per acre. Water may be guided through planting furrows and allowed to soak in the soil. Then seed selts are to be planted walking backwards the setts with the buds turned to the sides are to be pressed into wet soil to not more than 2.5cm depth. The depressions made in the furrows by walking have to be leveled while proceeding with planting.

1.5. Seed treatment


Dipping of setts, which are sufficient for one acre planting for 15 minutes in a solution containing 150 gms carbendazim and 600 ml of p malathion mixed in 300 Liters of water before planting, will control pineapple disease scale insect. To void grassy shoot disease hot water treatment of seed material at 52 for 30 minutes or treatment.

1.6. Various Kinds of sugar under a variety of name


Barley Malt Brown Sugar Cane sugar Corn syrup Dextrose Fructose Fruit sugar Glucose High-fructose corn syrup Honey

Icing sugar Invert sugar Jiggery Lactose Maltose Maple syrup Powdered sugar Raw Sugar Rice syrup Saccharins Sucrose Sugar beets Turbinates

1.7. Sugarcane Cultivation in would wide Sugarcane is one of six species of a tall tropical Southeast Asian gross (Family) having stout fibrous jointed stalks whose sap at one time was the primary sources of sugar. Sugarcane is composed of six specices of the genus sucharun in tribe and ropogonece. The cultivated species are complicated hybrids and all species interbreed. Over 100 countries grow sugarcane. worldwide. There are 1,30,000 Km2(32million areas) of sugarcane plantations

At present Cuba, Mexico, Brazil china India and Thailand are the leading

producers of cane Sugar and the US, Rusia, France, Germany, Italy, Poland and Netherlands leading producers of beet sugar in the world. Brazil is a major grower of sugarcane where it is used to produce sugar as well as to provide alcohol used in making gasohol and biodiesel fuels.

1. 8. Cultivation
Sugarcane is native to New Guinea. Its culture requires a tropical or subtropical climate, with a minimum of 60 cm (24 in) of annual moisture it is one of the most efficient photosyn the seizers in the plant kingdom, able to solar energy into biomass. Sugarcane is propagated from cuttings, rather than from seed. Each cutting must contain at least one bud, and the cuttings are usually planted, a stand of cane can be largest several times, after each harvest, the cane send up new stalks, called ratoons. Sugarcane is harvested by hand or mechanically when harvested either by hand, the field set on fire. The fire spreads very rapidly. Burning away the leaves but bearing the water-rich stalks and root unbar med. Harvesters then cut the standing cane just above the growth with knives. A skilled cane harvester can cut 500 kg of sugarcane in an hour.

1.9. Sugarcane Cultivation in India


In India 25 million farmers are egaged in sugarcane cultivation on 3.4 million hectares of land, though sugarcane occupies only 2 percent of the total cultivated area it contributes 7per cent to the total value of agricultural output, the sugar industry is the largest among the processing industries in the country, next only to the textile. It employees almost one million people in production and marketing.

1.10. Sugar research and development


Worlds first the sugarcane research farm was started in Coimbatore (T.N). Then the Indian institute of sugarcane research (ISSR) an institute under ICAR is engaged in research aimed at improving the cane and sugar yield. Next EID parry (India) Ltd has developed a tissue culture facility for improving cane planning yield and recovery it plans to supply one lakh health and diseases free plant lets of farmers.

Phytotron agro products (India) PVT. Ltd has introduced biotechnology based chemical called phytotron sugar reopener (PSR). Then The Central Salt and Marine Chemicals Research Institute (CSMCRI) has developed a technology which increase the production of sugar by over 10 recent and also improve its quality and that of molasses. A company, ponni sugar I chemicals Ltd, at erode, Tamilnadu technology for superation process.

1.11.(i) Co generation of power in sugar mills


Bagasse, a by product of sugar industry can be utilized for co-generation of power in sugar mills. The countrys production of bagasse is expected to reach 44.30 million tones at the end of the eight plan in Tamilnadu two co-operative sugar mills (MRK cooperative sugar mill and charger sugar mill are already co-generating lower and 5 more mills are setting up co-generation plants.

1.11.(ii) By products of sugar industry


Molasses and bagasse are two important by products of sugar industry, molasses is used in the manufacture of alcholo and bagasse has been used as a fuel in boilers for steam generation for captive use in the sugar mill, in the manufacture of paper and new print and in generation of electricity again by burning in boilers to generate steam to run steam turbines.

1.11.(iii) Alcohol industry


The alcohol industry in the country has been affected by the increase in the price of molasses. Some of the units even went out of production. The industry has started looking for some alternate material to molasses for the production of alcohol in view of high price of molasses in the country. The all India distillers association (AIDA) had invited

representatives from mine Lange companies from Europe and America to visit India to make a presentation of their technologies at a seminar organized by it among the non food cash crops sugarcane is the most fast catching crop in Tamil Nadu.

1.12. Statement of the problem:


Analysis of financial statement is one of the necessary important part of every business enterprise without finance neither any business can be started nor successfully run. Provision of sufficient funds at the required time is the key of success of a concern. It is a starting point for marking mans be tore using any sophisticated forecasting and budgeting procedures. Finance statement is regarded as the life blood of business enterprise.

1.13. Objectives of the study


The study has the following objectives 1. To know financial position of Bajaj Hindus than Ltd. 2. To compare the current year financial position with previous year financial position. 3. To analysis the financial statement Bajaj Hindus than Ltd. 4. To find the financial problem and giving suitable suggestion to solve such problem.

1.14. Methodology
This study was used to analyses financial statement of Bajaj Hindus than Limited. Its purpose is the statements were changed to compare one method to anther method. The case study method was used for this study. The annual reports auditing reports and financial statements were collected for this study.

1.15. Limitations of the study


This study has following limitations: 1. Due to non availability of data the study is concerned with only five from 2004 2005 to 2008 2009. 2. The study is concerned with finance therefore only secondary data were used for this study.

1.16. CHAPTER SCHEME:This study contains five chapter schemes. (i) Chapter 1: This chapter contained the introduction of Bajaj Hindus than sugar mills limited. (ii) Chapter 2: The chapter contained the profile of the Bajaj Hindus than sugar mills limited. (iii) Chapter 3: This chapter contained performance analysis of Bajaj Hindus than sugar mills limited. (iv) Chapter 4: This chapter contained analysis and interpretation of financial performance of Bajaj Hindus than sugar mills limited. (v) Chapter5: This chapter discussed finding suggestion and conclusion of the study.

CHAPTER - II 2.1. Profile Bajaj Hindustan Limited


Bajaj Hindustan Limited (BHL) was incorporated on 23rd November 1931 under the name the Hindustan sugar mills Limited - on the initiative of jamnala Balaji- a businessman, confidante, disciple and adopted son of Mahatma Gandhi. He sought Gandhiji blessings in this new venture, which apart from being a sound commercial proposition would also meet a national need, till then there were barely thirty sugar factories in the country. The group principal activity is to menu facture sugar and industrial alcohol. It has ten sugar plants. Which are all located in the northern Indian state of Uttar Pradesh. These ten plants have an aggregate sugarcane crushing. Capacity of 96000 tons crushed per day (cd) it produces 34.24 million liters of ethanol annually. The company generates 397 magawatts of power from the bagasse. Produced in its sugar mills.

2.2 Industry Analysis


The site selected for the first plant was at Golagokarannath, district lakhimpur kheri in the Terai region of Uttarpradesh (UP) an area rich in sugarcane. The distillery unit at this plant commenced production during the end of world war 11 in 1944. In the initial few years the major output was in the of power alcohol as an additive to petrol, which was then in short supply. Then unit was the first to supply alcohol-mixed petrol of the army. In 1967 a new company sharda sugar & Industries limited was established as a of Hindustan sugar mills limited was established as a subsidiary of Hindustan mills limited under this new subsidiary a sugar plant with a cane crushing capacity of 1400 tcd was set up in 1972 ut paliakalan. A large cane supplying centre at a distance of about 70 kilometres from 010lagokaranth.

2.3. Objectives
The objective new unit was primarily to help the cane growers of the area supply their produce to the new location closer. Fields there by cutting down on transportation costs. The capacity was subsequently increased in stages. In the year 1988 the Hindustan sugar mills limited was renamed as Bajai hindusthan limited and shorty there ofter in 1990 Sharda. sugar Industries. The company embarked on an aggressu Greenfield expansion drive in 2003 2007 starting with plant at kinaani near meerut (up) which was completed in a record time of just seven months as again.

2.4. Business information:Today with its sugar manufacturing facilities across location in up, BHL has a cane crushing capacity of 96,000 tcd and also the countrys largest ethanol producer with an output if 480 KLI day. In an acquisition move, the company took over the pratuppur sugar and industries limited (PCIL), district decria, Eastern up in December 2005. This plant, in operation since 1903, had a crushing capacity of 3200 lcd. Which was increased to 6000 tcd in the subsequent sugar season 2006 07. PSIL was subsequently renamed Bajaj Hindustan sugar and Industries limited (BHSIL) and is a subsidiary of BHL. This acquisition provide BHL a strategic foothold in the sugar deficient region of eastern up and reaffirming the consolidation that took place in the sugar industry. Thus BHSIL now has a crushing capacity of 40,000 tcd and a distillery with the capacity to manufacture 160 kilo liter per day of ethanol. The total industrial alcohol ethanol capacity of the company, including its subsidiary is 800 KL day. With the commission of three bagasse based power co- generation plants at Kundarkhi rudauli and utraula, BHSIL has anaggreate power generation capacity of 95.8 MW).

The companys annual turnover was Rs18,749 million for the ended September, 30, 2008. The companys growth initiative has been led by a strategic focus of attainting global scales of manufacturing and cost competitiveness. Such bench marketing provides BHL advantages for cost and higher domestic market share where demand is expected to outstrip supply for the next few years. While its planning and processes are benchmarked against global practices. Its activities are directed at contributing to the Indian rural economy at a local grassroots level, primarily in the uplifting of the farmers.

2.5 ORGANISATION CHART CHART 1

PERONNEL

DEPUTY MANAGER

PERSONNEL

TIME OFFICE

SECURITY

DISPENSARY

SECTION INCHARGE

TIME KEEPER

SECURITY INSPECTOR

FACTORY MEDICAL OFFICAL

STENO TYPIST

CLERK

ASST. SECURITY INSPECTOR

PHARMACIST

GUARDS

WARD BOYS

Chart No 2

CANE DEPARTMENT

SENIOR MANAGER

MANAGER

DEPUTY MANAGER DEPARTMENT CANE EXECUTIVES

CANE OFFICERS

CANE INSPECTORS

CHART No 3 FINANCE DEPARTMENT

ACCOUNTS

SYSTEAM

STAFF EXECUTIVES

ASSISTANT MANAGERS

CHART NO 4 ADMINISTRATION DEPARTMNENT

EXECUTIVE

ADMINISTRATION

DIESEL BUNK

CLERK ADMINISTRATION

DIFSEL BUNK INCHARGE

CLERK - DFSPATCH

TELEPHONE OPERATOR

OTHER STAFF

CHAPTER - III FINANCIAL STATEMENT ANALYSIS


3.1 Meaning of Financial statement Financial statements refer to formal and original statements prepared by a business concern to disclose its financial information AICPA (American Institute of certified public Accountants) say financial statement are prepared for the purpose of presenting a periodical review or report on the progress by the management and deal with (i) (ii) The status of investment in the business and The results achieved during the period under review. The term financial statement has been widely used to represent two statements prepared by accountants at the end of specific period under review. The term financial statement has been widely used to represent two statements prepared by accountants at the end of specific period. They are (i) profit and Loss account or income statement: (iii) Balance sheet or statement of financial position. Schedule of fixed assets, schedule of debtors, schedule of creditors, schedule of investment etc. are example of some of the schedule which are attached to the financial statements.

3.2 Importance of financial statements


For Management Till recently the feeling was that financial statements are meant only for owners of the concern and to satisfy legal requirement now it is realized that financial statements are of at most help to the management of a concern. For the Financial Besides Management, financial statements are also of great importance to the financiers and lenders, lenders need information regarding customers financial position solvency credit standing profitability etc. For the creditors Trade creditors are another class for whom financial statement is important. Trade credit implies extending facilities of deferred payment for credit purchase by seller to buyer traditionally, the seller used to depend on trade reference, while extending trade credit and financial statement were rarely used. Extending credit is essential due to tough competition and at the same time supplier or trade credit feels that financial position of the customers is faithful and paying regularly by this financial position is not sound.

For Investors Present and prospective investors are interested in studying financial statement to assets earning capacity growth potential and efficiently of management. The share holders would like to assets the present and future prospects, financial statement provide such information reading to shareholders and debenture holders.

3.3. LIMITATIONS OF FINANCIAL STATEMENTS


While analyzing financial statement the following limitations should be kept in mind. i. Information show in financial statement is not precise since it is based on practical experience and the conventions and rules development there from. ii. Financial statements do not always disclose the correct financial position of business concerns as they are influenced by the personal opinions judgment subjective view and whims of accountants of each concern. iii. Information disclosed by profit and loss accounts may not be real profit as may items show in the profit and loss accounts may not be real but estimated. Financial statements are due. Because they cannot speak themselves, the statements require further detailer analysis and inter predation. 3.4. Financial statement analysis and interpretation The financial statement are useful and meaningful only when they are analyzed and interpreted scientific method has to be adopted to analysis and interpret these statement as done in the case of preparation of these statements. The efforts taken to understand the implication of the statement is called interpretation. Therefore it is meaningful to call it analysis and interpretation. 3.5. Objectives of Analysis and Interpretation The use of financial statement have definite objective to analysis and interpret, However there are certain specific and common. i. To interpret the profitability and efficiency of various business activities with the help of profit and loss accounts ii. iii. iv. v. vi. vii. To measures managerial efficiency of the firm. To measures short-term and long-term solvency of the business. To ascertain earning capacity in future period. To determine future potential of the concern. To measure utilization of various assets during the period. To compare

3.6. Types of Analysis The process of financial statement analysis is of different types the process of analysis is classified on the basic. FINANCIAL STATEMENT ANALYSIS

On the basis of Information used analysis a) b) External Analysis Internal Analysis

On the basis of modus operative of analysis a) Horizontal Analysis b) Vertical Analysis

External Analysis This analysis is based on published financial statement of a firm outsiders have limited access to internal records of the concern. Therefore they depend on published financial statements. Thus the analysis done by outsiders namely creditors, Suppliers investors and government agencies is known as external analysis. This analysis serves a very limited purchase. Internal Analysis This analysis is done on the basis of internal and unpublished records. It is very much useful and unpublished records. It is done by executive or other authorized officials. It is very much useful and significant to employees and management. Horizontal Analysis This analysis is also known as dynamic or trend analysis. The analysis is done by analyzing the statement of a number of years. According to John. N. Myer the horizontal analysis consists of a study of the behaviors of each consists of in the statement. Thus under horizontal analysis we study the behavior of each item shown in the financial statements, we examine

CHAPTER - IV

4.1 Current ratio


Current Ratio Is the Relationship between Current Assets and current liabilities,

Current Ratio of 2:1 is considered ideal that is for every one rupee of current liability there must be current assets of Rs.2 if the ratio is less than two it may be difficult for a firm to pay current liabilities. If the ratio is more than two it is an indicator of idle funds. Table 4.1 Current Ratio Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Current assets 108.74 78.39 271.25 512.42 686.28 Current liability 113.06 171.08 537.69 1116.36 1105.35 Ratio 0.9617 0.4582 0.5044 0.4590 0.6208

Source: secondary data Interpretation It is from the table 4.1 that the current ratio lies between 0.9617 times and 0.6208times, In the year 2004-2005 it was 0.9617 times and after it has decreased to 0.4582 times in the year 2005-2006. Then it has increased to 0.5044 times in the year 2006-2007. Suddenly it has decreased 0.4590 times in the year 2007-2008. Finally, it has grown up 0.6208 times in the year2008-2009. It indicates the company moves towards goods situation. It indicates that there was a fluctuating in the current ratio over the years.

Chart 4.1

Current Ratio
0.9617

0.4582

0.5044 0.459

0.6208

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

Ratio

4.2 LIQUID RATIO


Quick ratio is also known as liquid ratio or acid test ratio, Quick ratio may be defined as relationship between the quick assets and quick liability. As assets is said to be liquid if it can converted in to cash within a short period without loss of value. The ideal current ratio

Table 4.2 Quick Ratio Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Quick assets 31.33 22.84 148.86 117.59 49.04 Quick liability 113.06 171.08 537.69 1116.36 1105.35 Quick Ratio 0.2771 0.1335 0.2168 0.1053 0.0443

Source: secondary data Interpretation It is from the table 4.2 that the quick ratio lies between 0.2771 times and 0.0443 times. In the year 2004-2005 it was 0.2771 times and after that it has decreased 0.1335 times in the year 20052006. After then in the year 2006-2007 it has increased in the sub sequent years from 2007-2008 to 2008-2009, as 0.1053 times and 0.0493 times. It indicates the quick assets were not well to compare with quick liabilities. The Company must try to maximize its quick assets.

Chart 4.2

Quick Ratio

49.04 117.59

31.33

22.84

148.86

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

4.3 PROPRIETARY RATIO


Proprietary ratio relates the share holders funds to total assets, It is a variant of the debt equity ratio. This ratio shows the long term or future solvency of the business. It is calculated by dividing share holders funds by the total assets.

( ) Table 4.3 Proprietary Ratio Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 137.73 614.24 1368.67 1434.33 1345.10 459.91 1124.27 2874.75 4325.24 4754.19 Proprietary Ratio 0.2994 0.5463 0.4761 0.3316 0.2829

Source: secondary data Interpretation It is from the table 4.3 that the Proprietary ratio lies between 0.28994 times and 0.2829 times. In the year 2004-2005 it was 0.2994 times and after that it has increased 0.546 times in the year 20052006. After then in the year 2006-2007 it has increased to 0.4761times. Again it has decreased in the sub sequent years from 2007-2008 to 2008-2009, as 0.3316 times and 0.0493 times. It indicates the share holders funds were not well to compare with total assets. The Company must try to maximize its share holders funds. It indicates that there were fluctuating in the proprietary ratio.

Chart 4.3

Proprietary Ratio
0.5463 0.4761

0.3316 0.2994 0.2829

2004-2005

2005-2006

2006-2007 Proprietary ratio

2007-2008

2008-2009

4.4 CASH POSITION RATIO


It has the variation of quick ratio, when liquidity is highly restricted in term of cash and cash equivalents, this ratio should be calculated, liquidity ratio measures the relationship item on the hand and immediately maturing obligation on the other inventory and the debtors are excluded from current asset, to calculate

Table 4.4 Cash Position Ratio Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Source: secondary data Interpretation: It is from the table 4.4 that the cash position ratio lies between 0.0309 times and 0.0060times. In the year 2004-2005 it was 0.0309 times and after that it has decreased 0.0291 times in the year 2005-2006. After then in the year 2006-2007 it has increased to 0.1618times. Again it has decreased in the sub sequent years from 2007-2008 to 2008-2009, as 0.0067 times and 0.0060 times. It indicates the cash position were not well to compare with current liabilities. The Company must try to maximize its cash position. It indicates that there were fluctuating in the cash position ratio over the year. Cash 137.73 614.24 1368.67 1434.33 1345.10 Current Liabilities 459.91 1124.27 2874.75 4325.24 4754.19 Cash Position Ratio 0.2994 0.5463 0.4761 0.3316 0.2829

Chart 4.4

Cash Position Ratio


0.5463 0.4761

0.2994

0.3316 0.2829

2004-2005

2005-2006

2006-2007

2007-2008 2008-2009

Cash Position Ratio

4.5 NETWORKING CAPITAL RATIO


The difference between current assets and current liabilities is called networking capital. The current assets refer to assets which in the normal course of business get into cash over a short period. It is measure of Companys liquidity position. Generall y it is understood that between two firms. The measure of liquidity is a relationship rather than the difference between current assets and current liabilities.

Table 4.5 Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Source: secondary data Interpretation It is from the table 4.5 that the Net Working Capital ratio lies between -0.0093 times and 0.0881times. In the year 2004-2005 it was -0.0093times and after that it has increased -0.0824times in the year 2005-2006. After then in the year 2006-2007 it has increased to -0.0927times. Again it has increased in the sub sequent years from 2007-2008 to 2008-2009, as 0.1396times and 0.0881times. It indicates the cash position were not well to compare with Net Assets. The Company must try to maximize its Net working capital. It indicates that there were fluctuating in the net working ratio. Net Working Capital -4.32 -92.69 -266.44 -603.94 -419.07 Net Assets 459.91 1124.27 2874.75 4325.24 4754.19 Ratio -0.0093 -0.0824 -0.0927 0.1396 0.0881

Chart 4.5

Networking Capital Ratio

-4.32 -419.07 -92.69 -266.44

-603.94

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

4.6 FIXED ASSETS TO PROPRIETORS FUND RATIO


This shows the relationship between fixed assets and share holders funds. The purpose of this ratio is to calculate the percentage of the owners funds invested in fixed assets.

Table 4.6 Fixed Assets to Proprietors Fund Ratio Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Source: secondary data Interpretation It is from the table 4.6 that the Fixed Assets to proprietors ratio lies between 1.7763 times and 1.84281times. In the year 2004-2005 it was 1.7763times and after that it has decreased 0.7428times in the year 2005-2006 It has decreased to 0.7404 times. In the year 2006-2007 suddenly it has increased 1.5463 time in the years from 2007-2008 Finally, Then it has grown up 1.8428timess in the year 2008-2009. It indicates the Company moved towards, good situation. It indicates that there were fluctuating in the Fixed Assets to proprietors fund ratio over the year. Fixed Assets 244.66 456.29 1013.48 2218.04 2478.82 Proprietors Fund 137.73 614.24 1368.78 1434.33 1345.10 Ratio 1.7763 0.7428 0.7404 1.5463 1.8428

Chart 4.6

Fixed Assets to Proprietors Fund Ratio

1.7763 1.8428 1.5463

0.7428

0.7404

2004-2005

2005-2006

2006-2007

Ratio 2007-2008 2008-2009

Ratio

4.7 CURRENT ASSETS TO PROPRIETORS FUND RATIO


It shows the relationship between Current assets and share holders funds. The purpose of this ratio is to calculate the percentage of the share holders funds invested in current ratio.

Table 4.7 Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Current Assets 108.74 78.39 271.25 512.42 686.28 Proprietors Fund 137.73 614.24 1368.78 1434.33 1345.10 Ratio 0.7895 0.1276 0.1971 0.3572 0.5102

Source: secondary data Interpretation It is from the table 4.7 that the Current Assets to proprietors ratio lies between 0.7895 times and 0.5102times. In the year 2004-2005 it was 0.7895times and after that it has decreased to 0.1276 times in the year 2005-2006. Then it has increased 0.1981times in the year 2006-2007 suddenly it has increased 0.3572 times. In the 2007-2008 Finally it has again grown up 0.5102times in the year 2008-2009, It indicates the Company moves towards, goods situation. It indicates that were a fluctuating in the current assets to proprietors fund ratio over the year.

Chart 4.7

Fixed Assets to Proprietors Fund Ratio


0.7895

0.5102

0.3572

0.1971 0.1276

2004-2005

2005-2006

2006-2007 Ratio

2007-2008

2008-2009

4.8 DEBT EQUITY RATIO


The financing of total assets of a business concern is dole by owners , the relationship between borrowed funds and owners capital is a popular is external equity ratio debt equity ratio is determined to ascertains soundness of the long term financial policies of the company

Table 4.8 Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 External 322.18 510.04 1506.09 2890.89 3409.07 Internal 137.73 614.24 1368.67 1434.33 1345.10 Ratio 2.3392 0.8303 1.1004 2.0154 2.5344

Source: secondary data Interpretation It is from the table 4.8 that the Debt equity ratio lies between 2.3392 times and 2.5344 times. In the year 2004-2005 it was 2.3392 times and after that it has decreased to 0.8303 times in the year 2005-2006. Then it has increased as1.1004times in the year 2006-2007 suddenly it has increased 2.0154 times. In the 2007-2008 Finally it has grown up 2.5344 times in the year 2008-2009, it indicates the Company moves towards, goods situation. It indicates that were a fluctuating in the Debt equity ratio over the year.

Chart 4.8

Debt Equity Ratio


2.5344 2.3392 2.0154

1.1004 0.8303

2004-2005

2005-2006

2006-2007 Ratio

2007-2008

2008-2009

4.9 NET CURRENT ASSETS TO TOTAL ASSETS RATIO


Net Current Assets to Total Assets Ratio explain the relationship between net current assets and total assets. Net current are also known as working capital it can computed as follows

Table 4.9 Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Net Current Assets 36.58 39.47 432.38 1104.16 1648.42 Total Assets 459.91 1124.27 2874.75 4325.24 4754.19 Ratio 0.0795 0.0351 0.1504 0.2552 0.3467

Source: secondary data Interpretation It is from the table 4.9 that the Net Current Assets to Total assets Ratio lies between 0.0795 times and 0.3467times. In the year 2004-2005 it was 0.0795times and after that it has decreased to 0.0351 times in the year 2005-2006. Then it has increased 0.1504 times in the year 2006-2007 suddenly it has increased 0.2552 times. In the 2007-2008 Finally it has grown up 0.3467times in the year 2008-2009, It indicates the Company moves towards, goods situation. It indicates that were a fluctuating in the Net Current Assets to Total assets Ratio over the year.

Chart 4.9

Net Current Assets to Total assets Ratio

0.0795 0.0351

0.3467 0.1504

0.2552

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

4.10 INVESTMENT TO TOTAL ASSETS RATIO


Investment to total Assets Ratio expresses relationship between investment and the total assets, it can calculated as follows

Table 4.10 Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Investment 0.07 5.07 205.81 437.47 488.26 459.91 1124.27 2874.75 4325.24 4754.19 Ratio 0.0001 0.0045 0.0715 0.1011 0.1027

Source: secondary data Interpretation It is from the table 4.10 that the investment to total assets ratio lies between 0.0001 times and 0.1027 times. In the year 2004-2005 it was 0.0001times and after that it has increased to 0.0045 times in the year 2005-2006. Then it has increased as 0.0715times in the year 2006-2007 suddenly it has increased 0.1011 times. In the 2007-2008 Finally it has grown up 0. 1027 times in the year 20082009, It indicates the Company moves towards, a good situation. It indicates that were a fluctuating in the investment to total assets ratio over the year

Chart 4.10

Investment to total Assets Ratio

0.0001 0.0045 0.1027 0.0715

0.1011

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

4.11 NET CURRENT ASSETS TO FIXED ASSETS RATIO


Net Current Assets to Fixed assets Ratio explain the relationship between net current assets and fixed assets. It can be computed as following data

Table 4.11

Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

Net Current Assets 36.58 39.47 432.38 1104.16 1648.42

Fixed Assets 244.66 456.29 1013.48 2218.04 2478.82

Ratio 0.1435 0.0865 0.4266 0.4978 0.6650

Source: secondary data Interpretation It is from the table 4.11 that the Net Current Assets to Fixed assets Ratio lies between 0.1435 times and 0.6650 times. In the year 2004-2005 it was 0.1435 times and after that it has decreased to 0.0865 times in the year 2005-2006. Then it has increased 0.4266 times in the year 2006-2007 suddenly it has increased 0.4978 times. In the 2007-2008 Finally it has grown up 0.6650 times in the year 2008-2009, It indicates the Company moves towards, goods situation. It indicates that were a fluctuating in the Net Current Assets to Fixed Assets Ratio over the year.

Chart 4.11

Net Current Assets to Fixed assets Ratio


0.665

0.4978 0.4266

0.1435 0.0865

2004-2005

2005-2006

2006-2007 Ratio

2007-2008

2008-2009

4.12 DEBTORS TURNOVER RATIO


This ratio show on an average number of times debtors are turnover during a year. A high ratio indicates efficiencies in assets management & vice versa.

Table 4.12

Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Source: secondary data Interpretation:

Net Credit sales 47.81 17.42 83.56 95.92 44.77

Average Receivable 27.83 17.86 61.86 110.00 42.30

Ratio 1.6819 0.9753 1.3507 0.872 1.0583

It is from the table 4.12 that the debtors turnover Ratio lies between 1.6819 times and 1.0582 times. In the year 2004-2005 it was 1.6819 times and after that it has decreased to 0.9753 times in the year 2005-2006. Then it has increased to 1.3507 times in the year 2006-2007 suddenly it has decreased 0.872 times. In the 2007-2008 Finally it has grown up 1.0583 times in the year 2008-2009, It indicates the Company moves towards, goods situation. It indicates that were a fluctuating in the debtors turnover Ratio over the year.

Chart 4.12

Debtors turnover Ratio


1.6819

1.3507

1.0583 0.9753 0.872

2004-2005

2005-2006

2006-2007 Ratio

2007-2008

2008-2009

4.13 FIXED ASSETS TO TOTAL ASSETS RATIO


This ratio expresses to relationship between fixed assets to total Assets Ratio.

Table 4.13 Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Fixed Assets 244.66 456.29 1013.48 2218.04 2478.82 459.91 1124.27 2874.75 4325.24 4754.19 Ratio 0.5319 0.4058 0.3525 0.5128 0.5213

Source: secondary data Interpretation: It is from the table 4.13 that the fixed assets to Total Assets Ratio lie between 0.5319 times and 0.5213 times. In the year 2004-2005 it was 0.5319 1times and after that it has decreased to 0.4058 times in the year 2005-2006. Then it has decreased as 0.3525times in the year 2006-2007 suddenly it has increased 0.5128 times. In the 2007-2008 Finally it has grown up 0.5213 times in the year 2008-2009, It indicates the Company moves towards, a good situation. It indicates that were a fluctuating in the fixed assets to total Assets Ratio over the year

Chart 4.13

Fixed assets to total Assets Ratio


2478.82 244.66 456.29 1013.48

2218.04

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

4.14 RETURN ON SHARE HOLDER FUND RATIO


Return on equity (or) Return net worth this ratio signifies the return on equity share holder funds. The profit considered for computing the ratio is taken of the payment of preference dividend the ratio of return on equity share holder fund is calculated as given below

Table 4.14

Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

APT Preference dividend 61.02 148.39 190.83 45.65 -47.68

Share holder 137.73 614.24 1368.67 1434.33 1345.10

Ratio 44.30 22.85 13.94 3.18 -3.54

Source: secondary data Interpretation It is from the table 4.13 that the Return on share holder fund ratio lies between 44.30 times and -0.354 times. In the year 2004-2005 it was 44.30 1times and after that it has decreased in the following year 2005-2006 to 2008-2009, the ratio was 22.85 times to -3.54 times. The return on share holder fund were not well is the concern . It indicates that were a fluctuating in the Return on share holder fund ratio over the year

Chart 4.14

Return on share holder fund Ratio


44.3

22.85

13.94

3.18 2004-2005 2005-2006

2006-2007

2007-2008

2008-2009 -3.54

Ratio

4.15 RETURN ON TOTAL ASSETS RATIO


This is calculated to measure the productivity of total assets. There are two way of calculating this ratio.

Table 4.15

Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

Net profit after interest Total Assets 61.02 140.39 190.83 45.65 -47.68 459.91 1124.27 2874.75 4325.24 4754.19

Ratio 13.4761 12.5861 6.6664 1.0612 -1.0123

Source: secondary data Interpretation It is from the table 4.15 that the Return on total assets Ratio lies between 13.4761 times and 1.0123 times. In the year 2004-2005 it was 13.4761 1times and after that it has decreased to 12.5861 times in the year 2005-2006. After then in the year 2006-2007 y it has increased to 6.6664 times. Again it has decreased in the sequent years from 2007-2008 to 2008-2009 as 1.0621 times and 1.0123 times. It indicates the net profit after interest was not well to compare with the total assets.

Chart 4.15

Return on total assets Ratio


13.4761 12.5861

6.6664

1.0612 2004-2005 2005-2006

2006-2007

2007-2008

2008-2009 -1.0123

Ratio

SUGGESTION

1. As there is a continuous growth in the Bajaj Hindustan Ltd. I suggest the Hindustan company expand their business. 2. The management should allocate sufficient working capital in order to meet our current obligations of the business. 3. The cash position may in prove to meet emergency requirements. 4. The fixed assets to proprietary fund ratio is also good position. 5. The companies try to decrease current liability at the minimum level.

CONCLUSION

The BHL is the one of the leading companies in India. It financial position was running good to compare with other companies. I have concentrated my attention on Ratio Analysis in which I have find out some of the ratios & I have also drawn Bar chart with explicitly the movement ratio. I have concentrated my attention on correlation between different aspects & the result is satisfactory during my study. I have also given suggestion to the BHL based on analysis.