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CONTENTS

CHAPTER-1
INTRODUCTION
CHAPTER-2
INDUSTRY PROFILE
COMPANY PROFILE
CHAPTER-3
THEORETICAL FRAME Work
CHAPTER-4
DATA ANALYSIS & INTERPRETATION
CHAPTER-5
SUMMARY
SUGGESTION
`

FINDINGS
CONCLUSION
BIBLIOGRAPHY
ANNEXURES

CHAPTER - 1

INTRODUCTION
Finance is one of the basic foundations of all kinds of economic activities. Financial
management is one integral part of overall management, it is not a totally independent area. It
is concerned with the acquisition, financing and management of assets with some overall goal
in mind. Financial management is important because it has an impact on all the activities of
financial management. The basic objective of financial management is to maintain the liquid
assets and maximization of the profitability of the firm, efficient management if every business
enterprise is closely linked with efficient management of the finance. Maintenance of liquid
assets means that the firm has adequate cash in hand to meet its obligations at all times. A
business firm is a profit seeking organization. Profit maximization is also well consideration to
be an important objective of financial management.
Financial management is mainly concerned with the proper management of finance function
risk. Cost and control considerations are properly balanced in a given situation and there is
optimum utilization of funds. Financial management emerged as a distinct field of study at the
turn of 20th century. Finance management as an integral part of overall management and is not a
totally independent area. It draws heavily on related disciplines and field of study such as
economics, accounting, marketing, production and quantitative methods. It helps in profit
planning, capital spending, measuring costs,
Controlling inventories, accounts receivable etc. it is essentially helps in optimizing the financial
from a given input of funds.

SIGNIFICANCE OF FINANCIAL MANAGEMENT:


A study of management with particular reference to the working capital management
in the large public sector undertaking is a challenging task and Endeavour in this direction is
to analyze the working capital balances management, receivables and inventory
management. Working capital is the amount required to meet day to day operation at the
organization. An absence of this makes the functioning of the organization blind. A proper
study on working capital management results in prevention of mismanagement and
misutilization of funds

NEED OF STUDY

Chodavaram co-operative sugars limited, govada is a one of the major public


sectors in India. Shipping plays a major role in the economic life of a nation and
it is a key element in the countrys progress. The study enables us to know to
what extent theoretical assets can be put in practice. Working capital gives an
idea to the investor as well as the management of a firm about the functioning
of organization. Preparation of a separate statement of working capital, one can
know or plan about the day to day expense. Working capital is the difference
between the current assets and liabilities this working capital must be adequate
not too much and not too low. And optimum level of working capital is a good
significance to the progress of the organization.
A study of working capital management in chodavaram co-operative sugar
limited, govada gives out the exact idea of working capital because it is an
organization with huge production and which also requires huge funds to meet
its day to day expenses it is an organization with continuous production i.e.
procuring.

OBJECTIVES OF STUDY

The present study working capital management of M/S. chodavaram cooperative sugars ltd, govada is intended to analyze the practice in working
capital management in chodavaram co-operative sugars ltd, govada. The

efficiency of the working capital management is determined by the efficiency


administration on its components.
The main objectives of this are depicted below.
1. To know the process of working capital management of chodavaram cooperative ltd, govada to study the cash management receivable
management and inventory management.
2. To study the ability of chodavaram co-operative sugars ltd, Govada to
meet its obligations
3. To know the extent to which Chodavaram co-operative sugars ltd, govada
excitingly using assets in its operation
This study is to determine the efficiency and effectiveness of the
management in each segment of the working capital.

METHODOLOGY OF STUDY
The methodology of collection of data is important part of the study the sources
of data are of two parts
1. Primary sources
2. Secondary sources

PRIMARY SOURCES: - discussion with the staff and executives of the


organization of the purpose of collecting information relevant so the study
which serves as the primary data to this study

SECONDARY SOURCES: - this study has been done by gathering


information from various sources such as annual reports published by
chodavaram co- operative sugars ltd, govada

LIMITATIONS OF THE STUDY


By observing financial performance of M/S Chodavaram co-operative
sugars ltd, govada, whole shipbuilding industries performance cannot
be judged
1. Limited time given to study about their aspects
2. The duration of 30 days allotted for this is insufficient to collect
data comprehensively for this study
3. The study is conducted with the limited data available and
analysis was done accordingly

4. The study is conducted with the time periods and analysis


made accordingly

CHAPTER - II

INDUSTRY PROFILE
India is one of the sugar producing and consuming countries in the world
the sugar industry plays vital role in rural development areas and provides
direct and indirect employment in the country India emerged as the largest
producer of white sugar in the world
The central government has already de-licensed the sugar production, the
propose to decontrol the release mechanism by introducing forward and future
trading in sugar. The decontrol is possibility of reduce in sugar price
The sugar industry has a unique place in Indian economy and rural
development because of employment and provisions of raw materials to other
industrial this industry has been providing substances to 5.5 lakhs workers and
sustaining about 4.50 corers agriculturists its total capital investment amounts
to 1560 corers
The sugar industry has a unique place in Indian economy and rural
development because of its multiple contributions in terms of employment and
provisions of raw materials to other industries the sugar industry as the second
largest agro based processing industry thus occupies a viral role among the
consumer industries in the country and ranks next only to cotton textile
industry in terms of contribution to the next value added by manufactures it
takes the third place among the four major sugar producing counties in the
world the three being U.S.S.R (C.I.S) RRAZIL and CUBA/ the sugar industry
in the recent years had started to export sugar these by earning valuable
foreign exchange.

According to World Bank of India is second largest producer of


sugarcane in the world in year was India is the largest producer of sugar in the
world the sugar industry is second largest.

Agro based processing industry in India having certain unique features if


its own it is a seasonal industry based on purchase raw materials namely
sugarcane the by-product of the industry have opened up fresh areas of
enterprise I device direction molasses and important by-product is utilized for
production of alcohol and downstream chemicals bio-gases another important
by-produces apart from meeting the fuel requirement of industry offers the
potential to general additional power supply to the grid

Further its offers tremendous potential to make the company selfsufficient in its requirement of paper and new prints there are now 435 sugar
factories in the country 69 in the public sector and 122 in the private sector and
244 in cooperative sector
CF or the smooth running of the industry government has appointed a
committed called GYAN PRAKASH committee and improvements there are
organization like
ISMA (Indian sugar mill association)
NFCSF (national federation of cooperative sugar factories)
ISGIEIC (Indian sugar general export Import Company)

INTRODUCTION TO SUGAR INDUSTRY


Sugar industry is very important to the India national economy because of its multiple
contribution in the shape of employment and provision of raw material to other industries.
India is the second largest producer of sugar cane next to brazil the later produces
primarily raw sugar while India produces almost exclusively white sugar crystals in India apart

from sugar other traditional sugar cane sweetness khanda sari and gur also produced for the
rural markets taking all sweetness sugar khanda sari and gur india is worlds largest producer of
sugar followed by the brazil in the second place there are 493 sugar mills operating in India with
in an aggregate installed capacity of 16.2 million tomes of these 152 are in the private sector 21
in the cooperative sector and 70 in the public sector
the sugar industry had been totally regulated and controlled for the past 50 years sugar
declared on essential commodity under the essential commodity act 1955 and plethora of
legislations and control orders regulate almost every aspects of the industry with the objective of
increasing production and also making available sugar at affordable process to the consumer
controls included licensing administrated price for sugar cane reservation of cane areas control
over the process of sugar and restriction of sale movement of the bye product molasses were
controlled for long time
Under the sugar cane control order statutory minimum price for cane very of commission
on agricultural cost industry the crushing seasons ranges between depending on the location
PRE - 1995 ERA
Until 1995 the industry was totally regulated and totally regulated and to certain extent
protected sugar was scheduled industry and for setting up new units for expanding existing unit
license was required under act
a review of industry's growth since 1950 reveals hat not withstanding and controls and
regulations the industry did grow substantially while the number of factories rose from 139 in
1950 to 423 in 2002 -03 the installed capacity increased tenfold from 1.67 million tons to 16.5
million tones sugarcane production from 69.2 million tones to300 million tons in 2001 - 02 sugar
production swelled from 1.1 tons to 18.6 million tons during the same period

Imports of sugar were not generally permitted and when imports were necessary the
government was the sold importer and availability of foreign exchange was a constraint exports
were canalize and were affected in years of surplus stocks
POST - 1995 SCENARIO
Even while repining partial control and dual pricing the government has been initiating in
since 1995 a number of measures as part of the process of liberalization to UN least the potential
of the industry of significant initiatives are
The molasses control under which the process movement and distribution of molasses

were all controlled was rescinded enabling the industry to realize the full value of molasses and
setup molasses based from down steam industries
Sugar was de licensed and creation of new capacity as well as expansion of existing
capacity was freed from licensing the only constraint was availability of sugar cane
The export promotion act was replaced and exports of sugar were decimalized enabling
mills to undertake exports on their own and completer directly in international market
The government has progressively reduced the levy obligation imposed a producers from
as high as 65% in early 80's to 10% of effective march 2003

Plan period

Annual sugar (million tons)

First 5 year plan

2.03

Second 5 year plan

2.54

Third year plan

3.56

Fourth 5 year plan

4.70

Fifth 5 year plan

5.7

Sixth 5 year plan

7.64

Seventh 5 year plan

10.20

Area under sugar cane production of sugarcane number of factories and


total sugar production during the period of 2003-04 to 2013 - 14

year

Area under
sugarcane
(thousand
hectors)

Production of
sugar cane
(000 Tones)

2003-04

1641

58710

Production
(000 tones)
1077

Factories
(numbers)
135

2004-05

1707

69220

1101

138

2005-06

2560

110544

3028

173

2006-07

2615

126368

3740

216

2007-08

2667

154228

5147

314

2008-09

3686

241046

12046

385

2009-10

3844

256995

13404

392

2010-11

3618

228000

10609

393

2011-12

NA

227000

9800

NA

2013-13

NA

245600

12200

417

2013-14

NA

256500

12500

436

TABLE SOURCE
Indian institute of public opinion monthly commentary of Indian economic condition due
2004 so and the economic survey 2004-05
IMPORTS & EXPORTS OF SUGAR
in view of cost of cane and sugar production in India it could not complete with other
favorable countries and to honor commitments and maintain international standard quality the
sugar exports begin in the year 1958 under the sugar export promotions act up to middle of 1961
government did not subsidize losses on exports and sugar factories got prorate payment however
the view of substantial quality of sugar in later year's government stopped subsidizing these
losses the export policy has been largely influenced by the need of earning foreign exchange
During shortages of fall in the production of sugar government registered
Companies like:
1) STC (state trading corporation)
2) M.M.T.C. (minerals and metals trading corporation are the saying agencies for our country)

INDIA SET TWO INCREASE EXPORTS


India the worlds second largest sugar producer hopes to step exports this year buoyed by
fright subsidies and growing pressure on mills reduce socks."VINAY KUMAR" Managing director of
national federation of cooperation of sugar factories (NFCE) said he was confident overall Indian
sugar exports would reach at least 1.5 million tons in 2003-04 compared with 1.1 - 1.2 MT in
2002-03
sugar mills in Maharashtra have recently finalized a deed with private traders to export
7000 tons of white sugar most of which will go to Indonesia since December the state has struck
deals to ships some 330000 tones sugar 2002-03 Maharashtra has also request that federal
government should introduce a subsidiary in us $ 20 alone to sugar factories in the firm of ocean
fright

PROBLEMS OF SUGAR INDUSTRY IN INDIA


EXCESSIVE CONTROL

The industry in suffered by the changing governments polices the


government has no fixed policy regarding the price and distribution of
sugar
The inefficiency and economic nature of production in sugar mills
to yield the short crushing season and the high price of sugarcane and
heavy excise duties by the government and responsible for the high
cost of production of sugar in India
UNDER UTILIZATON OF BIO - PRODUCTS
In sugar production we get two by products molasses and biogas
while molasses can be used in alcoholic preparation these factories are
not well developed in India and the bio gas can be used in paper
industry
SHORT CRUSHING SEASON
Although the land in unutilized throughout the years crushing
season is only 3 to 4 months in a year hence factories have to be closed
for the remaining period this is making it uneconomic too

OBSOLESCENCE
Most of the factories in the private sector were setup tie to 6 decades ago
their machinery had by now dilapidated the cost of production of such units is
unduly high owing to less mechanical efficiency and more down time it will
require money for modernization of such factories

TECHNONOGY
The level of technology in the India sugar industry is quite high and a
number of developing counties have borrowed Indian sugar technologies
unfortunately however may of Indian factories had been up in early 30s and have
become absolute for these the need of the hour is modernization rehabilitation
and expanding also attention needs to be paid to cane development

NEVER OUTPUT THINGS


Over production due to cyclical nature and seasonal conditions and
cultivation of average of sugar cane the functions in the production of sugar cane
are major problem of the day

WORLD SUGAR PRODUCTION 2013 14


Country wise estimates of production in major producing countries
In the year 2013-14 together with comparative for pervious 2 years
Country

1000MTVR

1000MTVR

1000MTVR

Brazil

19871

17036

20390

India

19840

20109

7420

China

9240

6739

7240

U.S.A

7015

7651

7910

Thailand

6487

5304

5833

Mexico

5140

5226

4985

Australia

4860

4382

5630

Germany

4050

4764

4783

France

4007

4601

4915

Cuba

3728

3628

4120

Other

50836

50539

50469

total

135066

123999

136238

STATE WISE SUGAR PRODUCTIONS


DATE

2009-10

2010-11

2011-12

2012-13

2013-14

A.P

859

772

782

1113

1182

Gujarat

1130

967

890

1025

1142

Karnataka

1263

871

959

1372

1577

Maharashtra

5394

3445

3847

5337

6503

UP(east)

1777

1632

1600

1552

1843

UP (west)

1043

1058

881

783

1210

UP (central)

1559

1393

1441

1394

1503

Tamilnadu

1671

1083

1266

1774

1768

Others

1755

1684

1189

1184

1473

In india

16451

12905

12855

15539

18200

NUMBER OF SUGAR FACTORIES IN OPERATING IN INDIA AND


AVERAGE CAPACITY (TDC)
YEAR

No of units

Average
capacity(TDC)

2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13

320
321
326
339
342
354
357
365
377
385
392
393
394
408
416
412
400
427
423
436
434
453

1712
1779
1779
1834
1865
1862
1888
1925
2036
2088
2167
2325
2388
2483
2531
2656
2863
2855
3049
3203
3285
3343

000 TON RAW VALUE

Western
Europe
Eastern
Europe
Africa
N & C America
South America
Asia
Oceania
total

2009-10
21266

2010-11
18596

2011-12
21242

2012-13
22301

2013-14
23460

7344

7077

7081

7172

7197

9931
19577
31825
53293
5675
148845

9508
20932
29764
47197
5467
138541

70083
21411
25042
42739
5024
132012

9381
21955
25155
42581
5481
134026

10457
22499
25307
42750
5838
137508

WORLD PRODUCTION, CONSUMPTIONAND XTOCK OF


CENTRIFUGAL (000 TON RAW VALUE)
YEAR
20001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10

World
population
111681
116126
125871
124104
128929
134641
124026
132012
138541

World
Ending stock Stock % of
consumption
consumption
112637
38035
33.77
115167
38589
33.51
117953
46221
30.19
121063
47018
38.84
123300
50748
41.16
125561
57289
45.63
128309
61638
48.04
121426
61853
47.06
135924
62385
45.90

WORLD SUGAR BALANCE


particulars

Season

Change

2008-09

2009-10

Percentage

143.784

Million
tons
(+)2.292

Production

146.076

Consumption

147.982

144.859

(+)3.033

2.09

Surplus/deficit

(-)1.816

(-) 1.076

(-)0.741

68.90

Import
demand
Export
availability
Stock /
consumption
ratio

42.882

40.758

(+)2.124

5.20

43.643

41.607

(+)2.036

4.90

41%

44%

1.60

GROWTH OF SUGAR INDUSTRY


There were only twenty nine factories in India during the year 1931
production granted to the industry in 1931 brought tremendous growth in the member of
location the number of factories in operation had grown from 29 to 140 in 1950-1951 out of
which 110 factories were in northern part of India during the next decade the number factories
increased to 174out of which 116 factories has grown from 200 in 1994 to 417 in 1994 to 1995 of
which 75% of the factories are located in the northern India the industry as predominantly
localized in Uttar Pradesh
particularly in the districts of Meerut Saharanpur bijous Bareilly muzaffarnagar
moradabad and ramput next utta pradesh the industry is mainly responsible for bringing about
location changes in industry further the sugar industry has received greater impeders from the
completion of numerous irrigation projects like the lrwin canal in mysore (karnataka) n nizam
sugar and tungabhadra projects in madras added to this the discriminatory of the growth of the
industry in the south
given transport facilities and access in necessarily dependent upon the availability of cane
in the region this concentrated is sustained from observation of the trend of size established in
different regions of this country in relation to availability of cane comparatively the size of the
sugar mills in Uttar Pradesh Bihar and Maharashtra where continuous availability of cane is
assured has observed to be large rant of production to the industry in 1931 also helped the units
to increase their size the average per day crushing capacity of the industry increased
tremendously from 481 tons per day in 1932 to 1365 ton it has been ground by the planning %
commission that the cane crushing capacity of sugar factories working in our country various
from 220 tons 3200 tons per day in Uttar Pradesh and Bihar majority of the sugar mills have a
cane crushing capacity of 2500 tons sugar cane per day a factory with a crushing capacity of 2500
tons of sugarcane per day is considered to be an economical unit the present day working
conditions
the industry growth since 1950 reveals that now with standing the control and regulations
in the industry did grow substantially while the no of factories raised from 139 in 1950-51 to 423
in 2000-2001 the installed capacity increase tenfold from 1.67 million to 16.5 million tons
sugarcane production from 69.2 million tons to 300 million tons in 1999-2000 sugar production
swelled from 1.1 million tons to 18.6 million tons during the same period

Scenario of sugar industry


Gone are those days when industries and its participants were highly produced with control and
protection policies in the process of liberalization of economic system decontrolling policies like de control
of sugar steel fertilizers etc.
sugar industry is highly subsidized so far it also effects with new economic power the demand for
sugar has been increasing due to increase in its consumption out of charging habits of the people including
common man and the need of the sugar also demands the sugar industry to meet the internal is also same
profit of its production is to be exported to ear foreign currency with in changing market
sugar cane growers are facing inventory problems transportation problem marketing problems
many of the growers an illiterates who are not competed to grow sugar cane crop on scientific lines the
financial problem is also other important one with which they cannot take decisions in time to improved
quality and productivity high transportation cost prices are not increasing in proportion to the increase in
case of production due to inflationary tendencies
The sugar producing unit purchases sugarcane from the growers therefore management of these
units has to adopt marketing concept that is the customer orientation

THE CHODAVARAM CO-OPERATIVE SUGAR LTE. GOVADA


PROCESS FLOW SHEET

CANE FROM LORRIES / CRAFTS


CANE WEIGHMENT
WEIGHTED CANE
CANE CARRIER
CANE PREPARATRY DEVICES
(CANE LECELLER, CANE CUTTER & FIBRIZER)

PREPARED CANE TO MILLS


JUICE
BAASSE
JUICE HEATERS GEATED TO 70
SENT TO BOILES AS FUEL
STEAM BENERATION
JUCE SULPHITOR
(TREATED WITH MILK OF LIME + SO2 GAS)
PH: 7.0 - 7.2
JUCE HEATERS HEATED TO 102 OC
CLARIFIER
CLEAR JUCE
EVAPARATORS

MUDDY JUCE
VAC. FILTERS

SYRUP
FLTRATATE JUCE TAKEN BACK
FILTER CAKE SOLD AS MANEURE
SYRUP SULPHITOR
(TREATED WITH SO 2 GAS)

TO WEIGHTED RAW JUCE

COMPANY PROFILE
HISTORICAL BACK GROUND & AREA OF OPERATION
The chodavaram cooperative sugars ltd was in corporate in the year 1955
With an object of establishing a sugar factory of 1000 TDC at govada village in
Corporative sector at the cost of 150 lakhs the factory started its commercial
Production in the year 1962-63 initial loss were sustained completely were
Wiped out by 1972 -73 and the factory made profit till 1976 in the year 1976
Expansion of the crushing capacity of the plant was taken up at a total cost of Rs.
130.57 lakhs the crane crushing with the expanded capacity of 16000 T.C.D
Started from the year 1978 keeping in view the availability of cane the factory of
Taken up expansion of its crushing capacity to 1500 TDC in the year 1988 with an
Out lay of rs 8.5 cores and expansion was completed by March - 1991
The society covers vast area of 2658 villages in 14 manual of
Visakhapatnam district out of whom 80% are small and marginal formers the
Total average in the area of operation of factory is 30,000 acres out of which cane
Grown in about 20,000 acres is agreement to the factory as the members are
Limited to that extent 60% of the factory zone is under fain fed conditions

Basically the factory is and agro based seasonal industry the raw material of the factory

for the production is sugar cane there are growers from 265 villages which are supplying cane to
the factory it starts its operation most probably during the first week of December and ends with
April/May depending upon the availability of sugar cane for crushing
Best technical efficiency awarded to for the session of 2005-06 presents by the national
federation of cooperative sugar factory ltd. New Delhi
a.
In chodavaram cooperative sugars the following products
manufacturing
b.

sever

c.

sprit

d.

bio earths

e.

bio gas

f.

co generation of power

In season production process of sugar will be alone and unseasonal the production
process of sugar will not be done the company main product is sugar and the substitute product
is molasses from which spirit and extra neutral alcohol are obtained

According to the byelaws the society is meant for the upliftment of the cane
grower's members in factory zone the ideology behind setting up cooperative sugar
factory is to rais the living standard of farmers and production from idle men
private sugar factory owners and promoting their well being
ideally at cooperative society should be organized on the principal of
voluntary service and it should provide maximum participation to its membership
in decision making in benefit and evolution of performance a popular definition of
the term cooperative is that is associations of persons are house hold usually of a
limited means who have agreed to work together on a continuous basis which is
jointly control and whose cost risk and benefits are equally among the members
equality social justice and self-helped of the major concerns of the co operative

MEMBERSHIP AND SHARE CAPITAL


the society is having around 20,000 members on its registers the authorized
share capital of the society under y law no 6 of the byelaws of the society is rs 600
cores as on 31-03-2006 the society has paid up share capital of rs 164 cores as on
31-03-2006 the society has paid up share capital of rs 164 cores from the share
members and government of andhrapradesh has

Contributed an amount of rs 40 lakhs towards their share in the capital structure of


society

LOCATIONAL ADVANTAGES OF THE CHODAVARAM CO-OPERATIVE SUGAR LTD TO


BE SET UP AT GOVADA
the entire of operation has been a traditionally sugar cane growing belt since
so many decades a part of from being located beside river belt in its centrally
located in the cane growing regions free communication facilities are available
through out of the zone to draw cane farmers in the required time more that 60%
of growers are within the radius of 10 mile there is an advanced mode of
transpirations of output though road ways
OBJECTIVES
the objective of society shall be promote the economic interisland members
by encouraging proper development of agriculture industries on support time and
through agriculture with special attention to and preference to farmers as far as
possible the advantages of scientific agricultural and production and the benefits of
large scale industries and for the said purpose it shall be competent to society
1. To establish a factory for the manufacture of sugar joggery and other
subsidiary by products and allied industries and for the purpose

2. A) to raise share capital and borrow funds either on the security of the property

of the society otherwise cooperative societys government industrial financial


cooperation and other sources
b) To purchase to take on lease or otherwise acquire land houses and other
buildings light railway siding may be necessary or expedient form purpose of any of
them
c) To purchase and install the machinery
d) To purchase form members or non-form members sugar cane or other
than raw material and to undertake cultivation of sugar cane
e) To own or hire transport vehicles in the business of the society
3. To undertake measures for the development sugarcane including supply of
seed fertilizers agricultural implements irrigation facilities and other product
requirements including agriculture credit and to provide technical advices on
improved cultivation methods
4. To hire or purchase land for purpose of undertaking research and to take
necessary measures to disseminative knowledge to members
5. To purpose or take hire tractors boring sets and other agricultural
implements and give them members
6. to issue loan to members for productive and other similar purposes
7. To undertake such activities as are incidental and among conductive
members to the development of sugar cane sugar and allied industries

MANAGING DIRECTOR

The managing director is the chief executive of the sugar factory he looks
after each thing that is going on the factory he is the key of the organization his
responsibilities are tremendous millions of vc may be made or lost by this decisions
the m.d. formulates the factory policy in cane procurement manufacturing factory
operation purchases and sales for the consideration of board of direction and when
approved ensures their executive through directors of departmental needs he
values and comments of schemes and suggestions coming from department head
for guidance to board of directors he shall be fully informed about the factory
overall activities and must instructed and guide departmental needs in their work
he is accountable to chairman and board of directors

DEPARTMENTS
The organization has 5 departments
1) Engineering department
2) Manufacturing department
3) Cane department
4) Administrative department
5) Accounts department

ENGINEERING DEPARTMENT
this department is headed by the chief engineer the plant and machinery of

the factory or under the control of chief engineering he formulates the techniques
of current and economic crushing of sugar cane shunting to machinery and
equipment correlated with the variety of cane quality he is responsibility for
keeping day to day check on milling boiler and power house performance steel ad
power consumption and various sections of the factory personally direct repairs
over handling and erections of major equipments he periodically reviews
engineering store stock position and furnishes indents for purchase for his
departments civil section boilers millhouse electrical and main parts of the
engineering section such as rehabilitation modernization layout and replacement
labor and staff policy to management and ensure that all factory regulations

MANUFACTURING DEPARTMENT
this department is held by chief chemist he is responsible for overall
operations of sugar manufacturing side of factory from juice to final bagging of
sugar the department is to see the food quality of sugar production he has to
coordinate the work of manufacturing department with that of the engineering
and cane department the department is consists

1. Chief chemist
2. Dy. Chief chemist
3. Manufacturing chemists

4. Lab in charge

CADRE WISE EMPLOYEES IN CHODAVARAM COOPERATIVE


SUGAR LTD. GOVADA AS ON 01-08-2009.

SL NO

Name of the category

permanent

seasonal

total

Deputy cadre

02

--

02

Supervisory a

03

--

03

Supervisory b

07

--

07

Supervisory - c

08

--

Highly skilled

04

--

04

Skilled a

33

03

36

Skilled b

07

05

12

Semi-skilled

22

17

40

Un skilled

14

17

31

10

Clerical grade ii

03

--

03

11

Clerical grade iii

13

--

13

12

Clerical grade - iv

39

--

39

total

155

42

197

CANE DEPARTMENT
The chief agricultural officer holds this the duties of the chief agricultural
officer can be divided into
1.
2.
3.
4.

Chief agricultural officer


Dy. Chief agricultural officer
Agricultural officer
Filed man

There are 5 assistant agricultural officers and 16 field men


working under the guidance of the chief agricultural officer
the duties and responsibilities of a field officer and
agricultural officer to develop sugar cane and draw cane
uniformly they have to buildup proper records such a cane
register area under sugar cane variety etc. and to inspect the
cane plots regularly and also to meet the cane growers and
issue proper instructions to them

In the absence of both managing director and administration


officer the board shall make necessary arrangements with the approval
of the register for the conduct of the business society during their
absence

ACCOUNT DEPARMENT
Chief accounts officer heads the account department he is
responsible for the following departments
1. General accounts
2. Stores accounts
3. Cane accounts
His duty involves preparation of balance sheets and
correspondence with their investors merchants banks
financial institutions etc., he is to maintain up to date all
account books of the factory and balance sheet cost reports
periodical budgets cash flow statements and all income tax
returns and formalities he has to attend all work relating to
money transaction advice management through the
managing director and the financial implications of any of
scheme of expenditure

ADMINISRATION DEPARTMENT
This department consists of
Administrative
officer

Sales & purchase


officer

Labor welfare
officer

Medical
officer

Office
manager

Store keeper

the administrative officer heads this department he is next to managing


director he shall exercise such powers and perform such as may be interested to
him from time to time by the managing director under the administrative officer 5
departments which are directly responsible for him they are saled and purchase
manager labor welfare officers medical officer officer manager store kepper etc. in
addition to the above activities he looks secretarial department and general
administration the department also develops good relationship between
management and trade unions the department is back bone some of the whole
organization

ORGANIASTIONAL STRUCTURE
PERSON IN CHARGE
MANAGING DIRECTOR
ENGINEERING
DEPARTMENT

MANUFACTURING
DEPARTMENT

CANE
DEPARTMENT

CHIEF
ENGINEERING

CHIEF
CHEMIST

CHIEF
AGRICULTURAL
OFFICER

DEPUTY CHIEF
ENGINEERING

(BOILING )
ASST ENGINEER
(WORK SHOP)
ASST ENGINEER

CIVIL
SUPERVISOR

DEPUTY CHIEF
CHEMIST
Mft
CHEMIST
LAB IN
CHARGE

DEPUTY CHIEF
AGRICULTURAL
OFFICER
AGRICULTURAL
OFFICER

FIELD MAN

ADMINISTRATION
DEPARTMENT

ADMINISTRATION
OFFICER
SALES &
PURCHASE
MANAGER

LABOUR
WELFARE
OFFICER

ACCOUNTS
DEPARTMENT
CHIEF
ACCOUNTS
OFFIER

OFFICE
MANAGER

GENERAL
ACCOUNTAN
T
MATERIAL
ACCOUNTENT

STORE
KEEPER

CANE
ACCOUNTNAT

VISION
to emerge as leading sugar manufacturing unit in the state and sustain
A.V.V.R sugars ltd. position as are of the most valued corporation achieving world
class performance creating growing value for Indians economy and company's
stake holders

MISSION
1. To achieve international standards of excellence in all aspects of sugar
manufacture and diversified business with focus on customer
2. To maximize creation of wealth value and satisfaction for the stake holders
3. To attain leadership in developing adopting and assimilating state of the
art technology for competitive advantage
4. To cultivate high standards of business ethics and total quality
management for a strong corporate identity and brand equity

OBJECTIVES
Agricultural production and the benefits large scale industries and for the
said purpose it shall be competent to the society
1. to purchase from members or non-members sugarcane and or other raw
materials and also to undertake cultivation of sugarcane
2. To construct or take on rent go downs at the place of manufacture as well
as outside for storage and sale of the products
3. To do all other things incidental to or necessary for the establishment and
running of the factory
4. To process and sell sugar molasses and other by-products produced to the
best advantage
5. To undertake measures for the development of sugarcane including supply
of seed fertilizer agricultural implements irrigation facilities and other production

CHAPTER - III

INTRODUCTION
finance plays an important role in any organization the dictionary meaning of
finance is money affairs or the art of managing or administrating the public money
hence the name financial management could be referred to as money management
the function of finance is not arranging funds for the business organization but also
it includes planning forecasting of cash flow both receipts and payments raising the
funds allocations of funds and financial control

FINANCIAL FUNCITIONS
the functions of any business organization include finance marketing
personal and production these four functions are interlinked and cumulatively they
lay greater stress on management for this successful endeavor among the four
"financial function" has a dominant role through the ages it has been said that
finance is the life blood of business it is the most primary function that starts laying
its influences from the very beginning of the entrepreneurial ideal its presence is
felt in very bit of organizational functioning

FINANCIAL MANAGEMENT
financial management involves the management of finance function it is
concerned with the planning organizing directing and controlling the financial
activities of an enterprise it deals mainly with raising funds in the most economic
and suitable manner using these funds as profitably as possible planning future
operations and controlling current performance and further developments through
financial accounting cost accounting budgeting statistics and other means it is
continuously with achieving an adequate rate of return on investment as this is
necessary for survival and the attracting of new capital

FINANCIAL STATEMENT ANALYSIS


INTRODUCTION
accounting process involved recording classifying and summarizing various
business transactions the aim of maintaining various records is to determine
profitability of the enterprise from operation of the business and also to find out is
financial position financial statements are in term reports presented annually and
reflect a division of the life of and enterprises in to more or less arbitrary
accounting period more frequently a year the financial statement is an organized
collection of data according to logical and consistent accounting period more
frequently a year the financial statement is an organized collection of data
according to logical and consistent accounting procedures its purpose is to convey
of a business firm

Definitions
According to john n.myer "the financial statements provide a summary of the
accounts of a business enterprises the balance sheet reflecting the assets liabilities
and capital as on a certain date and the income statement showing the results of
operations during a certain period".
The term financial statement generally refers to following basic statements
1.

The income statement

2.

The balance sheet

3.

A statement of retained earnings

4.

A statement of changes in financial position

FINANCIAL STATEMENT

INCOME
STATEMENT

BALANCE
SHEET

STATEMENT OF
RETAINED
EARNING

STATEMENT OF
CHANGES IN
FINANCIAL POSITION

Income statement
the income statement (also termed as profit and loss account) is
generally considered to be the most useful of all financial statements .it
explains what has happened to a balance sheet dates the nature of the
income which is the focus of the income statement can be well
understood if a business is taken as an organization that uses inputs to
produce output

Balance sheet
it is a statement of financial position of a business at a specified
moment of time it represents all assets owned by the business at a
particular moment of time and the claims of the owners and outsiders
against those assets at that time the important distinction between as
income statement is for a period while balance sheet is on a particular
date

Statement of retained earnings


the term retained earnings means the accumulated excess earnings over
losses and dividends the balance shown by the income statement is transferred to
the balance sheet through this statement after making necessary appropriations it
is fundamentally a display of things that have caused the beginning of the period
retained earnings balances to be charged in to the one shows in the end or the
period balance sheet

Statement of changes in financial position


The balance sheet shows the financial condition of the business at a
particular moment of time while the income statement discloses the results of
operation of business it is essential to identify the movement of working capital or
cash in the statement of changes in financial position

Nature of financial statements


the financial statements are prepared on the basis of recorded
facts are those which can be expressed in monetary terms the
statements are prepared for a particular period generally one year the
transaction are recorded in a chronological order as and when the events
happen the financial statement by nature are summaries of the items
recorded in the business and there statements are prepared periodically
generally for the accounting period

The following points explain the nature of financial


statements:

1. Recorded facts : the term recorded facts refers to the data taken
out from the accounting records the records are maintained on the
basis of actual cost data the figures of various accounts such as
cash in hand cash at bank bills receivables Sunday debtors fixed
assets are taken as per the figure recorded in the accounting books
as the recorded facts are not based on replacement costs the
financial statements do not show current financial conditions of the
concern

2. Accounting conventions: certain accounting conventions are


followed while preparing financial statements the convention of
valuating inventory at cost or market price whichever is lower is
followed the valuing of assets at cost less depreciation principle for
balance sheet purposes statements comparable simple and realistic

3. Postulates: the accountants make certain assumptions while


making accounting records one of these assumptions is that the
enterprise is treated as a going concern the other alternative to this
postulate is that the concern is to be liquidated the concern so the
assets are shows on a going concern basis an other important
assumption is to presume that the value of money will remain in
the same in different periods

4. Personal judgments : even though certain standard


accounting conversion are followed in preparing financial
statement but still personal judgment of the accountant plays on
important part

Importance of financial statements


Financial statements contain a lot of useful and valuable information
regarding profitability financial position and future prospective of business
concern the utility of financial statement to different parties may be
summarized as follows:

1. Management:
The financial statements are useful for assessing the
efficiency of different cost centers the management is able to
decide the course of action to be adopted in future

2. Creditors:
The trade creditors are to be paid in a short period the creditors will be
interested in current solvency of the concerns the calculations of current
ratio and liquid ratio will enable the creditors to assess the current financial
position of the concerns in relation to their debts

3. Investors:
The investors include both short term and long term investors they are
interested in the security of the principal amounts of loan and regular
payments by the concern the investors will not only analyze the parent
financial position but will also study the future prospectus and expansion
plans of the concern

4. Government
The financial statements are used assess tax liability of business
enterprises the government studies economic situation of the country from
these statements these statements enable the government to find out
whether business is following various rules and regulations or not

LIMITATIONS OF FINANCIAL STATEMENTS


Financial statements are relevant and useful for the concern still they
do not present a final picture of the concern otherwise misleading
conclusions may be drawn the financial statements suffer from following
limitation:

1. Ignoring of non-monetary aspects:


These statements are prepared with the help of accounting
information which mainly consider monetary aspects only the value of
business depends both on qualitative and quantitative factors

2. Historical cost:
The statements are prepared on the basis of historical cost the values
of fixed assets are at their original cost less depreciation the balance sheet
value are not shown the value of assets may be sold more over they do not
reflect the market value which is as important factor in determining the
solvency of an enterprise

3. Personal judgment:
In preparing financial statements certain items are left to the personal
judgment of the accountant if any accountant is not following accounting
principles correctly his judgment will give wrong picture

4. Convention of conservation:
Due to convention of conservation the income statement may not
disclose true income of the business this is due to ignorance of probable
incomes and accounting probable losses

FINACIAL ANALYSIS:
Financial analysis is the process of identifying the financial strength
and weakness of the firm by properly establishing between the items of the
balance sheet and profit and loss account there are various methods or
techniques used in analysis financial statements such as comparative
statements trend analysis common size statements schedule of changes in

working capital funds flow and cash flow analysis cost volume profit analysis
and ratio analysis

Meaning and concept of financial analysis:


The terms financial analysis also known as analysis and interpretation
of financial statements refers to the process of determining financial strength
and weakness of the firm by establishing strategic relationship between the
items of the balance sheet profit and loss account and other operative data

Types of financial analysis


Financial analysis can be classified in to different categories depending
up on
A. On the bases of material used
B. On the basis of modules operandi

TYPES OF
FINANCIAL

ON THE BASIC
OF MATERIAL

INTERNAL

EXTERNAL

ON THE BASIC
OF MODULES

HORIZONTAL

1. On the basis of material used


According to the basis financial analysis can be of two types

External analysis

VERTICAL

This analysis is done by those who are outsiders for the business these
persons mainly depend up on the published financial statements their analysis
serves only a limited purpose

Internal analysis
This analysis is done by persons who have access to the books of account and
at other information related to the business such as analysis can be done by
executives and employees of the organization the analysis is done depending up on
the objective to be achieved through this analysis

2. on the basis of modules operandi


According to this financial analysis can also be of two types

Horizontal analysis
In case of this type of analysis financial statements for a number of years are
reviewed and analysis the current years figures are compared with the standard or
base year the analysis statement usually contains figures for two or more year and
percentage since this type of analysis based on the data from year to year rather
than on date it is also termed as dynamic analysis

Vertical analysis
In case of this type of analysis a study is made of the quantitative relationship
of various items in the financial statement on a particular date since this analysis
depends on the data for one period this is not very conductive to a proper analysis
of

He companys financial position it is also called static analysis as it is frequently


used for referring to ratio developed on one date of for one accounting period

Techniques of financial analysis

A financial can adopt one or more of the following techniques / tools of


financial analysis:

Financial
analysis

Comparative
financial

Common
size

trend

Ratio
C.V.P.

Ratio

Cash flow

Funds
flow

1. COMPARATIVE FINANCAIL STATEMENTS


The statements which have been designed in a way so as to provide
time perspective to the consideration of various elements of financial
position embodied in such statements figures for two or more period side by
side to facilitate comparison
Both the income statement and balance sheet can be prepared in the form of
comparative financial statements the comparative financial statements contain the
following items
i.
ii.
iii.
iv.
v.
vi.

Absolute figures (amount in rs as given in the final accounts)


Absolute figures expressed in terms of percentages
Increase of decrease in absolute figures in terms of money value
Increase or decrease in terms of percentages
Comparison expressed in ratios
Percentages of totals

2. COMMON SIZE STATEMENTS


The common size statements balance sheet and income statement are
show in analytical percentages the figures are shown as percentages of
total assets total liabilities and sales the total assets are taken as 100

and different assets are expressed as percentage of the total similarly


various liabilities are taken as a part of total liabilities these statements
are also known as component parentage or 100% statements because
every individual item is stated as a percentage of the total 100 the
short-comings in comparative statements and trend percentages
where changes in item could not be compared in the following way
i. The total of assets or liabilities are taken as 100
ii. The individual assets are expressed as a percentage of total assets i.e.
100 and different liabilities are calculated in relation to that liability

Common size income statement:


The items in income statement can be shown as percentages of
sales to show the relation of each item to sale a significant
relationship can be established between item of income statement
and volume of sales the increase in sale will certainly increases
selling expresses and not administrative or financial expenses in
case the volume of sale increases to a considerable extent
administrative and financial expenses may go up in case the sales
and declining the selling expenses should be reduced at once so a
relationship is established between sales and other income
statement and this relationship is helpful in evaluating operational
activities of the enterprises

Comparative income statements


The income statement (profit &loss A/c) gives the results of the operations
during a definite period it reveals the profit carried or loss incurred by the cancers
the comparative study if income statement for more than 1 year may enable us to
know the program of the concern first row columns gibe figures of various items of

two years the third and fourth column use to show increase or decrease in figures
in absolute adopted in preparing comparative balance sheet
1. In first step find out the changes in absolute figures i.e. increase or
decrease should be calculated
2. In second step percentage of change should be calculated with the help of
following formula

Change in amount
Percentage of change =

x 100
base year amount

Guide lines for interpretation:


i. The increase or decrease in sales should be compared with increase or
decrease in cost of goods sold if increase in sales is more than the cost of
goods sold it means that the profitability of the concerns is increased
ii. The amounts of gross profit should be studied
iii. Operating profits should be studied the express should be
deducted from gross profit to find out operating profit and then operating incomes
should be added to get net profit
iv. The next step is some of the non-operating expenses are to be deducted
from the operating profits and non-operating incomes should be added to get net
profit

v. The opinion should be formed the profitability of the business concern and
it should be given at the end

Comparative balance sheet:


The balance sheet prepared on a particular date reveals the financial position
of the concern on the date to study the trends of business over a period of time
comparative balance sheet reveals the cause for changes in the financial positions
on amount of various transactions the comparative study throws light on financial

policies adopted by management


the comparative balance sheet consists of two columns for the original data
a third column used to show increase or decrease in various items a south column
containing the parentage or increase or decrease may be added

Guide lines for interpretation of balance sheet:


1. The short term financial position can be studied by comparing the working
capital of both years
2.to study the liquidity position changes in liquid assets must be ascertain if
there is any increase in liquid assets we must understand that is an improvement in
the liquidity position of the concern and vice versa
3. A high increase in sundry debtors and bills receivable mean in increase in
risk in collecting the amount of dues
4. A high increase in closing stock may mean that decrease in the demand
5. Long term financial position of the business concern car be analyzed by
studying the changes in fixed assets long term liabilities and capital
6. Fixed assets must be compared with long term loans and capital if the
increase in fixed assets is more than the increase in long term financiers from the
working capital which is not good

Common size balance sheet


statement in which balance sheet items are expressed as the ratio of each
asset to total assets and the ratio of each liability is expressed as a ratio of total
liabilities is called common size balance sheet the common size balance sheet is a
horizontal analysis the comparison of figures in different periods is not useful
becomes total figure may be affected by a number of factors it is not possible to

establish standard norms for various assets the trends of year to year may not be
studied and even they may not give proper results

3. TREND ANALYSIS
Trend analysis is an important and useful technique of financial analysis it
involves computation of index numbers of the moments of the various financial
items in the financial statements for a number of periods it enables to know the
changes in the financial position and the operational efficiency between the
periods chosen
Through trend analysis the analysis can give his opinion as to whether
favorable or unfavorable tendencies are reflected by the accounting date
the comparative and common size balance sheets suffer from a major
limitation i.e. absence of basic standard to indicate whether the proportion of an
item is normal or analysis values are calculated for each item in isolation but
conclusions are to be drawn by studying he related items also
Trend analysis can be analysis in the following ways
I. by calculating trend ratio (or) percentage
ii. By plotting on graph paper (or) charge

Trend ratio (or) percentage


It involves the ascertainment of arithmetical relationship which each item of
several year to the same item of base year any year maybe as the base year it is
usually the earliest year

Procedure for calculating trend ratio


The following procedure maybe adopted for calculating trend ratio
I. select any year as base year the selected year should be normal year for
the base year the trend value is taken as 100
ii. Trend percentage of each item should be calculated with the help of
following formula

Current year value


x 100
base year value

6. RATIO ANALYSIS
Financial analysis depends to very large extents of the use of ratios through
there are other equality important tools of such analysis thus a direct examination
of the magnitude of two released items is somewhat enlightening but the
comparison is greatly facilitated by expressing the relationship as a ratio
ratio analysis of business enterprises enters on efforts to derive quantitative
measures or guides concerning the expected capacity of the firm to meet its future
financial obligation or expectations present and past data are used for the purpose
and whatever extrapolations appear necessary they are made to provide no
indication of feature performance alexander wait who criticized the bankers for its
lap sided development owing to their decisions regarding the grant of credit on
current ratios a lone made the presentation of an elaborate system of ratio analysis
in 1919

Ratio:
Ratio is an expression of the quantitative relationship that exists between the
two numbers the ratio is defined as "the indicated quotient of two mathematical
expressions" the ratio should be determined between related accounting variables
to be meaningful and effect.

CHAPTER - IV

COMPARATIVE BALANCE SHEETS FOR THE PERIOD 2012 2013


TABLE NO 4.1
PARTICULARS
ASSETS
CURRENT ASSETS
CASH ON HAND
CASH ON BAND
STOCK IN TRADE
PRE-PAID
EXPENSES
TOTAL CURRENT
ASSETS (1)
INVESTMENTS
SHARES IN COOP INSTUTIONS
DEPOSITS
SECURITIES
LOANS AND
ADVANCES
TOTAL
INVESTMENTS(2)
FIXED ASSETS
LAND
PLANT
&MACHINERY
BUILDINGS
OTHER ASSETS
TOTAL FIXED
ASSEDTS (3)
TOTAL ASSETS
(1+2+3)
LIABILITIES
CURRENT
LIABILITES
BORROWINGS
OTHER
LIABILITEIS

TOTAL CUDRRINT
LIABILITIES (4)
LONG TERM
LIABILITES
DIPOSITS
TOTAL LONG TERM
LIABILITIES (5)
CAPITAL
SHARE CAPITAL
RESERVE FUND
AND OTHER FUNDS
SPECIFIC RESERVES
UNDISBURSED
PROFITS
TOTAL CAPITAL (6)
TOTAL LIABILITES
(4+5+6)

INTERPRETATION
From the above table no 4.2 it is under stood that the current
assets are 2011-2012 in the year (2012) 702592884 in the year (2013)
629890773 when compared to 2012 the current assets are decreased by
10.34% during the year 2013 in this year the prepaid expenses are
increased but other current assets are decreased
The current liabilities are in the year (2012) 60659581 in the year
(2013) 442904345 when compared 2006 the current liabilities have
decreased by 26.98%.

COMPARATIVE BALANCE SHEETS FOR THE PERIOD 2012 2013


TABLE NO 4.1
PARTICULARS
ASSETS
CURRENT ASSETS
CASH ON HAND
CASH ON BAND
STOCK IN TRADE
PRE-PAID
EXPENSES
TOTAL CURRENT
ASSETS (1)
INVESTMENTS
SHARES IN COOP INSTUTIONS
DEPOSITS
SECURITIES
LOANS AND
ADVANCES
TOTAL
INVESTMENTS(2)
FIXED ASSETS
LAND
PLANT
&MACHINERY
BUILDINGS
OTHER ASSETS
TOTAL FIXED
ASSEDTS (3)
TOTAL ASSETS
(1+2+3)
LIABILITIES
CURRENT
LIABILITES
BORROWINGS
OTHER
LIABILITEIS

TOTAL CUDRRINT
LIABILITIES (4)
LONG TERM
LIABILITES
DIPOSITS
TOTAL LONG TERM
LIABILITIES (5)
CAPITAL
SHARE CAPITAL
RESERVE FUND
AND OTHER FUNDS
SPECIFIC RESERVES
UNDISBURSED
PROFITS
TOTAL CAPITAL (6)
TOTAL LIABILITES
(4+5+6)

INTERPRETATION
From the above table no 4.2 it is under stood that the current
assets are 2011-2012 in the year (2012) 702592884 in the year (2013)
629890773 when compared to 2012 the current assets are decreased by
10.34% during the year 2013 in this year the prepaid expenses are
increased but other current assets are decreased
The current liabilities are in the year (2012) 60659581 in the year
(2013) 442904345 when compared 2006 the current liabilities have
decreased by 26.98%.

COMPARATIVE BALANCE SHEETS FOR THE PERIOD 2012 2013


TABLE NO 4.1
PARTICULARS
ASSETS
CURRENT ASSETS
CASH ON HAND
CASH ON BAND
STOCK IN TRADE
PRE-PAID
EXPENSES
TOTAL CURRENT
ASSETS (1)
INVESTMENTS
SHARES IN COOP INSTUTIONS
DEPOSITS
SECURITIES
LOANS AND
ADVANCES
TOTAL
INVESTMENTS(2)
FIXED ASSETS
LAND
PLANT
&MACHINERY
BUILDINGS
OTHER ASSETS
TOTAL FIXED
ASSEDTS (3)
TOTAL ASSETS
(1+2+3)
LIABILITIES
CURRENT
LIABILITES
BORROWINGS
OTHER
LIABILITEIS

TOTAL CUDRRINT
LIABILITIES (4)
LONG TERM
LIABILITES
DIPOSITS
TOTAL LONG TERM
LIABILITIES (5)
CAPITAL
SHARE CAPITAL
RESERVE FUND
AND OTHER FUNDS
SPECIFIC RESERVES
UNDISBURSED
PROFITS
TOTAL CAPITAL (6)
TOTAL LIABILITES
(4+5+6)

INTERPRETATION
From the above table no 4.2 it is under stood that the current
assets are 2011-2012 in the year (2012) 702592884 in the year (2013)
629890773 when compared to 2012 the current assets are decreased by
10.34% during the year 2013 in this year the prepaid expenses are
increased but other current assets are decreased
The current liabilities are in the year (2012) 60659581 in the year
(2013) 442904345 when compared 2006 the current liabilities have
decreased by 26.98%.

COMPARATIVE BALANCE SHEETS FOR THE PERIOD 2012 2013


TABLE NO 4.1
PARTICULARS
ASSETS
CURRENT ASSETS
CASH ON HAND
CASH ON BAND
STOCK IN TRADE
PRE-PAID
EXPENSES
TOTAL CURRENT
ASSETS (1)
INVESTMENTS
SHARES IN COOP INSTUTIONS
DEPOSITS
SECURITIES
LOANS AND
ADVANCES
TOTAL
INVESTMENTS(2)
FIXED ASSETS
LAND
PLANT
&MACHINERY
BUILDINGS
OTHER ASSETS
TOTAL FIXED
ASSEDTS (3)
TOTAL ASSETS
(1+2+3)
LIABILITIES
CURRENT
LIABILITES
BORROWINGS
OTHER
LIABILITEIS

TOTAL CUDRRINT
LIABILITIES (4)
LONG TERM
LIABILITES
DIPOSITS
TOTAL LONG TERM
LIABILITIES (5)
CAPITAL
SHARE CAPITAL
RESERVE FUND
AND OTHER FUNDS
SPECIFIC RESERVES
UNDISBURSED
PROFITS
TOTAL CAPITAL (6)
TOTAL LIABILITES
(4+5+6)

INTERPRETATION
From the above table no 4.2 it is under stood that the current
assets are 2011-2012 in the year (2012) 702592884 in the year (2013)
629890773 when compared to 2012 the current assets are decreased by
10.34% during the year 2013 in this year the prepaid expenses are
increased but other current assets are decreased
The current liabilities are in the year (2012) 60659581 in the year
(2013) 442904345 when compared 2006 the current liabilities have
decreased by 26.98%.

COMPARATIVE BALANCE SHEETS FOR THE PERIOD 2012 2013


TABLE NO 4.1
PARTICULARS
ASSETS
CURRENT ASSETS
CASH ON HAND
CASH ON BAND
STOCK IN TRADE
PRE-PAID
EXPENSES
TOTAL CURRENT
ASSETS (1)
INVESTMENTS
SHARES IN COOP INSTUTIONS
DEPOSITS
SECURITIES
LOANS AND
ADVANCES
TOTAL
INVESTMENTS(2)
FIXED ASSETS
LAND
PLANT
&MACHINERY
BUILDINGS
OTHER ASSETS
TOTAL FIXED
ASSEDTS (3)
TOTAL ASSETS
(1+2+3)
LIABILITIES
CURRENT
LIABILITES
BORROWINGS
OTHER
LIABILITEIS

TOTAL CUDRRINT
LIABILITIES (4)
LONG TERM
LIABILITES
DIPOSITS
TOTAL LONG TERM
LIABILITIES (5)
CAPITAL
SHARE CAPITAL
RESERVE FUND
AND OTHER FUNDS
SPECIFIC RESERVES
UNDISBURSED
PROFITS
TOTAL CAPITAL (6)
TOTAL LIABILITES
(4+5+6)

INTERPRETATION
From the above table no 4.2 it is under stood that the current
assets are 2011-2012 in the year (2012) 702592884 in the year (2013)
629890773 when compared to 2012 the current assets are decreased by
10.34% during the year 2013 in this year the prepaid expenses are
increased but other current assets are decreased
The current liabilities are in the year (2012) 60659581 in the year
(2013) 442904345 when compared 2006 the current liabilities have
decreased by 26.98%.

COMPARATIVE BALANCE SHEETS FOR THE PERIOD 2012 2013


TABLE NO 4.1
PARTICULARS
ASSETS
CURRENT ASSETS
CASH ON HAND
CASH ON BAND
STOCK IN TRADE
PRE-PAID
EXPENSES
TOTAL CURRENT
ASSETS (1)
INVESTMENTS
SHARES IN COOP INSTUTIONS
DEPOSITS
SECURITIES
LOANS AND
ADVANCES
TOTAL
INVESTMENTS(2)
FIXED ASSETS
LAND
PLANT
&MACHINERY
BUILDINGS
OTHER ASSETS
TOTAL FIXED
ASSEDTS (3)
TOTAL ASSETS
(1+2+3)
LIABILITIES
CURRENT
LIABILITES
BORROWINGS
OTHER
LIABILITEIS

TOTAL CUDRRINT
LIABILITIES (4)
LONG TERM
LIABILITES
DIPOSITS
TOTAL LONG TERM
LIABILITIES (5)
CAPITAL
SHARE CAPITAL
RESERVE FUND
AND OTHER FUNDS
SPECIFIC RESERVES
UNDISBURSED
PROFITS
TOTAL CAPITAL (6)
TOTAL LIABILITES
(4+5+6)

INTERPRETATION
From the above table no 4.2 it is under stood that the current
assets are 2011-2012 in the year (2012) 702592884 in the year (2013)
629890773 when compared to 2012 the current assets are decreased by
10.34% during the year 2013 in this year the prepaid expenses are
increased but other current assets are decreased
The current liabilities are in the year (2012) 60659581 in the year
(2013) 442904345 when compared 2006 the current liabilities have
decreased by 26.98%.

COMPARATIVE BALANCE SHEETS FOR THE PERIOD 2012 2013


TABLE NO 4.1
PARTICULARS
ASSETS
CURRENT ASSETS
CASH ON HAND
CASH ON BAND
STOCK IN TRADE
PRE-PAID
EXPENSES
TOTAL CURRENT
ASSETS (1)
INVESTMENTS
SHARES IN COOP INSTUTIONS
DEPOSITS
SECURITIES
LOANS AND
ADVANCES
TOTAL
INVESTMENTS(2)
FIXED ASSETS
LAND
PLANT
&MACHINERY
BUILDINGS
OTHER ASSETS
TOTAL FIXED
ASSEDTS (3)
TOTAL ASSETS
(1+2+3)
LIABILITIES
CURRENT
LIABILITES
BORROWINGS
OTHER
LIABILITEIS

TOTAL CUDRRINT
LIABILITIES (4)
LONG TERM
LIABILITES
DIPOSITS
TOTAL LONG TERM
LIABILITIES (5)
CAPITAL
SHARE CAPITAL
RESERVE FUND
AND OTHER FUNDS
SPECIFIC RESERVES
UNDISBURSED
PROFITS
TOTAL CAPITAL (6)
TOTAL LIABILITES
(4+5+6)

INTERPRETATION
From the above table no 4.2 it is under stood that the current
assets are 2011-2012 in the year (2012) 702592884 in the year (2013)
629890773 when compared to 2012 the current assets are decreased by
10.34% during the year 2013 in this year the prepaid expenses are
increased but other current assets are decreased
The current liabilities are in the year (2012) 60659581 in the year
(2013) 442904345 when compared 2006 the current liabilities have
decreased by 26.98%.

COMPARATIVE BALANCE SHEETS FOR THE PERIOD 2012 2013


TABLE NO 4.1
PARTICULARS
ASSETS
CURRENT ASSETS
CASH ON HAND
CASH ON BAND
STOCK IN TRADE
PRE-PAID
EXPENSES
TOTAL CURRENT
ASSETS (1)
INVESTMENTS
SHARES IN COOP INSTUTIONS
DEPOSITS
SECURITIES
LOANS AND
ADVANCES
TOTAL
INVESTMENTS(2)
FIXED ASSETS
LAND
PLANT
&MACHINERY
BUILDINGS
OTHER ASSETS
TOTAL FIXED
ASSEDTS (3)
TOTAL ASSETS
(1+2+3)
LIABILITIES
CURRENT
LIABILITES
BORROWINGS
OTHER
LIABILITEIS

TOTAL CUDRRINT
LIABILITIES (4)
LONG TERM
LIABILITES
DIPOSITS
TOTAL LONG TERM
LIABILITIES (5)
CAPITAL
SHARE CAPITAL
RESERVE FUND
AND OTHER FUNDS
SPECIFIC RESERVES
UNDISBURSED
PROFITS
TOTAL CAPITAL (6)
TOTAL LIABILITES
(4+5+6)

INTERPRETATION
From the above table no 4.2 it is under stood that the current
assets are 2011-2012 in the year (2012) 702592884 in the year (2013)
629890773 when compared to 2012 the current assets are decreased by
10.34% during the year 2013 in this year the prepaid expanses are
increased but other current assets are decreased
The current liabilities are in the year (2012) 60659581 in the year
(2013) 442904345 when compared 2006 the current liabilities have
decreased by 26.98%.

COMPARATIVE BALANCE SHEETS FOR THE PERIOD 2012 2013


TABLE NO 4.1
PARTICULARS
ASSETS
CURRENT ASSETS
CASH ON HAND
CASH ON BAND
STOCK IN TRADE
PRE-PAID
EXPENSES
TOTAL CURRENT
ASSETS (1)
INVESTMENTS
SHARES IN COOP INSTUTIONS
DEPOSITS
SECURITIES
LOANS AND
ADVANCES
TOTAL
INVESTMENTS(2)
FIXED ASSETS
LAND
PLANT
&MACHINERY
BUILDINGS
OTHER ASSETS
TOTAL FIXED
ASSEDTS (3)
TOTAL ASSETS
(1+2+3)
LIABILITIES
CURRENT
LIABILITES
BORROWINGS
OTHER
LIABILITEIS

TOTAL CUDRRINT
LIABILITIES (4)
LONG TERM
LIABILITES
DIPOSITS
TOTAL LONG TERM
LIABILITIES (5)
CAPITAL
SHARE CAPITAL
RESERVE FUND
AND OTHER FUNDS
SPECIFIC RESERVES
UNDISBURSED
PROFITS
TOTAL CAPITAL (6)
TOTAL LIABILITES
(4+5+6)

INTERPRETATION
From the above table no 4.2 it is under stood that the current
assets are 2011-2012 in the year (2012) 702592884 in the year (2013)
629890773 when compared to 2012 the current assets are decreased by
10.34% during the year 2013 in this year the prepaid expenses are
increased but other current assets are decreased
The current liabilities are in the year (2012) 60659581 in the year
(2013) 442904345 when compared 2006 the current liabilities have
decreased by 26.98%.

COMPARATIVE BALANCE SHEETS FOR THE PERIOD 2012 2013


TABLE NO 4.1
PARTICULARS
ASSETS
CURRENT ASSETS
CASH ON HAND
CASH ON BAND
STOCK IN TRADE
PRE-PAID
EXPENSES
TOTAL CURRENT
ASSETS (1)
INVESTMENTS
SHARES IN COOP INSTUTIONS
DEPOSITS
SECURITIES
LOANS AND
ADVANCES
TOTAL
INVESTMENTS(2)
FIXED ASSETS
LAND
PLANT
&MACHINERY
BUILDINGS
OTHER ASSETS
TOTAL FIXED
ASSEDTS (3)
TOTAL ASSETS
(1+2+3)
LIABILITIES
CURRENT
LIABILITES
BORROWINGS
OTHER
LIABILITEIS

TOTAL CUDRRINT
LIABILITIES (4)
LONG TERM
LIABILITES
DIPOSITS
TOTAL LONG TERM
LIABILITIES (5)
CAPITAL
SHARE CAPITAL
RESERVE FUND
AND OTHER FUNDS
SPECIFIC RESERVES
UNDISBURSED
PROFITS
TOTAL CAPITAL (6)
TOTAL LIABILITES
(4+5+6)

INTERPRETATION
From the above table no 4.2 it is under stood that the current
assets are 2011-2012 in the year (2012) 702592884 in the year (2013)
629890773 when compared to 2012 the current assets are decreased by
10.34% during the year 2013 in this year the prepaid expenses are
increased but other current assets are decreased
The current liabilities are in the year (2012) 60659581 in the year
(2013) 442904345 when compared 2006 the current liabilities have
decreased by 26.98%.

COMPARATIVE INCOME STATEMENT AS ON 2010-2011


TABLE NO: 4.11
PARTICULARS
SALES
COST OF SELLING
GROSS PROFIT (1)
LESS
EXPENSES
INTEREST PAID
DISTRIBUTION
CHARGES
CEPRECIATIN
PREVIOUS YEAR
LOSS
TOTEL
EXPENSES(2)
ADD
INCOMES
INTEREST
RECEIVED
OTHER INCOMES
TOTAL
INCOMES(3)
NET LOSS (1-2+3)

2011

2012

INC/DEC

INTERPRETATION:
From the above table no 4.11 it is understood that when compared to 2011
the year 2012 sales are increased by 4.18% but gross profit is decreased by 57.71%
because the cost of selling goods are increased by 23.38%
The total expenses are decreased by 41.97% at the same time the total
incomes are decreased by 94.70% the firm got loss by 18.40% during the year 2012

COMPARATIVE INCOME STATEMENT AS ON 2010-2011


TABLE NO: 4.11
PARTICULARS
SALES
COST OF SELLING
GROSS PROFIT (1)
LESS
EXPENSES
INTEREST PAID
DISTRIBUTION
CHARGES
CEPRECIATIN
PREVIOUS YEAR
LOSS
TOTEL
EXPENSES(2)
ADD
INCOMES
INTEREST
RECEIVED
OTHER INCOMES
TOTAL
INCOMES(3)
NET LOSS (1-2+3)

2011

2012

INC/DEC

INTERPRETATION:
From the above table no 4.11 it is understood that when compared to 2011
the year 2012 sales are increased by 4.18% but gross profit is decreased by 57.71%
because the cost of selling goods are increased by 23.38%
The total expenses are decreased by 41.97% at the same time the total
incomes are decreased by 94.70% the firm got loss by 18.40% during the year 2012

COMPARATIVE INCOME STATEMENT AS ON 2010-2011


TABLE NO: 4.11
PARTICULARS
SALES
COST OF SELLING
GROSS PROFIT (1)
LESS
EXPENSES
INTEREST PAID
DISTRIBUTION
CHARGES
CEPRECIATIN
PREVIOUS YEAR
LOSS
TOTEL
EXPENSES(2)
ADD
INCOMES
INTEREST
RECEIVED
OTHER INCOMES
TOTAL
INCOMES(3)
NET LOSS (1-2+3)

2011

2012

INC/DEC

INTERPRETATION:
From the above table no 4.11 it is understood that when compared to 2011
the year 2012 sales are increased by 4.18% but gross profit is decreased by 57.71%
because the cost of selling goods are increased by 23.38%
The total expenses are decreased by 41.97% at the same time the total
incomes are decreased by 94.70% the firm got loss by 18.40% during the year 2012

COMPARATIVE INCOME STATEMENT AS ON 2010-2011


TABLE NO: 4.11
PARTICULARS
SALES
COST OF SELLING
GROSS PROFIT (1)
LESS
EXPENSES
INTEREST PAID
DISTRIBUTION
CHARGES
CEPRECIATIN
PREVIOUS YEAR
LOSS
TOTEL
EXPENSES(2)
ADD
INCOMES
INTEREST
RECEIVED
OTHER INCOMES
TOTAL
INCOMES(3)
NET LOSS (1-2+3)

2011

2012

INC/DEC

INTERPRETATION:
From the above table no 4.11 it is understood that when compared to 2011
the year 2012 sales are increased by 4.18% but gross profit is decreased by 57.71%
because the cost of selling goods are increased by 23.38%
The total expenses are decreased by 41.97% at the same time the total
incomes are decreased by 94.70% the firm got loss by 18.40% during the year 2012

CHATPER - V

SUMMARY
Financial assessment of an organization is moving so as to decide and compliment
the future course of action to achieve the objectives of the organization
The following methods or techniques are used in studying the financial
assessment of an enterprise
1.

Comparative financial statement

2.

Common size statements

3.

Ratio analysis

1. COMPARATIVE FINANCIAL STATEMENT


in CFS two or more balance sheet and for the income statements of a firm
are presented simultaneously in columnar form the financial data for two or more
years are placed and present and adjacent columns and there by the financial data
is provided a times perspective in order to facilitate periodic comparison

2. COMMON SIZE STATEMENTS


A company financial statement that displays all items as percentages of a
common base figure this type of financial statement allows for easy analysis
between companies or between time periods of a company
invest podia explains common size financial statement component such as
revenue while most firms dont report their statements in common size it is
beneficial to compute if you want to analyze two or more companies of differing
size against each other

Formatting financial statements in this way reduces the bias that


can occur when analyzing companies of differing sizes it also allows for
the analysis of a company over various time periods revealing for
example what percentage of sales is cost of goods sold and how that
value has changed over time

RATIO ANALYSIS
Ratio analysis is one of the popular flows of financial statement analysis in
simple words ratio is the quotient formed when one magnitude is divided by
another measured in the some unit a ration is defined as the indicated quotient
of two mathematical expressions and the relationship between two or more
things

SUGGESTIONS
1) Funds flow analysis an important aspect in financial management of every
organization funds flow analysis is required on fund based activities of the
organization
2)the chodavaram co-operative sugars limited also requires working capital for
charring on its activities like any organization the accounts offices of the
organization maintain this
3) The firm pledge its goods to the Visakhapatnam district co-operative central
bank and gets cash credit limit for getting its working capital funded
4) The management has to see the dispose the stock which is present in books for
quite a long time since three years
5) The company should clearly define and established suitable credit policies in
respect of both sales and members
6) It is suggested the company adopts the suitable system of vast budgeting
receivables management and inventory management
7) The company is advised have the concept of working capital management
8) It is suggested the company should established responsible basis for estimating
the further working capital requirements
9) The company identified its inventory as a show moving items fast moving items
or long moving items to their after management may consider steps that are
necessary for the disposal of nonmoving items at the earliest

FINDINGS
The firm was the working capital for lending to the farmers sanctioning fertilizers
loans and other loans for carrying on the production of sugarcane it also invest in
some other current assets in invest in stock as it should get order from the
government selling in sugar
1) It needs working capital for paying its current liabilities like interest overdue
sugarcane payments etc...
2) the firm working capital management policy is very optimum as it need not keep
any cash in advance for making payments or need not keep any surplus cash
available ideally as it can draw or deposit cash whenever required from the bank
3) N it pays interest for the amount utilization in a particular period of time the
cash credit policy is the appropriate one for financing working capital requirements
and is more flexible for the barrower
4) stock in trade is very high so it is better to depose the stock immediately stock
accumulation result were housing cost risk of damage /obsolescence of stock etc.,
besides blocking up to working capital
5) cash in hand and bank is very high which does not carry any interest resulting in
opportunity cost of interest lost for having not been invested somewhere else it is
suggested that the money at the disposal of the company should be sufficient to
meet the requirements exactly at the right time only it should not be
unproductively maintained on hand or bank for too long a period in advance of the
date of requirement.

CONCLUSION
Thought it is observed that during the year ending 2014 there seems to
be an improvement the improvement is only marginal she has to
follows more promotional activities to creates market for itself and
become more competitive
The recommendations and suggestions five if adopted will improve the
position of the company sustained and optimal profitability coupled
with better service and satisfaction for investor may be achieved

BIBLIOGHRAPHY

1) Financial management

R.P.Rustagi

2) Financial management

Ravi M. Kishore

3) Financial management

L.M. Pandey

4) Project (preparation,
appraisal, implementation)

Prasanna chandra

5) Project planning and


management

M.Shaghil &
M.Musterque

6) www.coutal@eusgariandia.com

ANNEXURES

THE CHODAVARAM CO-OP SUGARS LTD., No. B. 1109, GOVADA


Balance sheet as on 31-3-2013

LIABILITIES
Particulars

1. Share capital
2. Borrowings
3. Deposits
4. Adjusting heads due by
5. Reserve fund and other
funds
6. Specific reserves
7. Undisbursed profits
8. Undistributed profits
9. Establishment and
contingents charges due
10.Interest payable
11.Other liabilities

Total liabilities

Difference between
Assets & Liabilities

Total assets

such

1
2
3
4
5
6
7
8
9
10
11

At the end of the year


31-3-2013

At the beginning
of the year 1-42012

THE CHODAVARAM CO- OP SUGARS LTD., NoB. 1109, GOVADA


Balance sheet as on 31-3-2013

ASSETS
Particulars
CASH:
c) on hand
d) at banks
INVESTMENTS:e) shares in co-op institutions
f) deposits
g) securities
h) deposits with government
loans and advances
adjusting heads due to

PROPERTIES:f) land
g) plant & machinery
h) plant & machinery (expansion)
i) buildings storage godowns and
tanks
j) others
stock in trade
pre-paid expenses

Total

Sch At the end of the At the beginning of


year 31-3-2013
the year 1-4-2012

THE CHODAVARAM CO- OP SUGARS LTD., No. 1109, GOVADA


Profit & loss account for the year ended 31-3-2013
S.N
o
1

loss
Interest

sc amoun s.n
profit
sc Amoun
h
t
o
h
t
10
1 Gross profit(as
per trading
account)

Interest
2

Establishmen 9c
t and
contingent
charges
debitable of
profit and
loss account

depreciation

Establishmen 9c
t and
contingent
charges
creditable to
profit and
loss account

Total

Total

THE CHODAVARAM CO- OP SUGARS LTD ., NoB. 1109, GOVADA


Manufacturing account for the year ended 31-3-2013
s.
no
1

loss
Opening stock

sch amoun s.
t
no
6
1

profit

sch

Closing stock

PURCHASES

a. Cost of cane
b. Incentive cane
price from
purchase tax
c. Incentive cane
price(bonus)
d. Additional cane
price
e. Cane transport
subsidy
f. General stores

Establishment and
contingent charges
debitable to
manufacturing
account

9a

depreciation

Total

Consumption
of store
material

Establishment
and contingent
charges
creditable of
mfg account

Cost of
production
Transferred to
trading
A\C :Sugar
1218678871.11
Molasses
21370372
Power
55128640.00
Filter mud
133855.00

Total

Amount

THE CHODAVARAM CO- OP SUGARS LTD ., No. B. 1109, GOVADA


Trading account for the year ended 31-3-2013
s.no

1
2

loss
Opening stock

sch
6

Cost of production
transferred from
manufacturing
account

amount

Sno
1

profit
Closing stock

sch
6

Sales

Establishment
and
contingent
charges
creditable to
Trading
account

9b

Sugar:1218678871.11
Molasses: 21370372
Power : 55128640.00
Filter mud:
133855.00

3
4

Purchases

Gross profit

Establishment and
contingent charges
debitable to
trading account

Total

6
9b

Total

amount

THE CHODAVARAM CO-OP SUGARS LTD., No. B. 1109, GOVADA


Balance sheet as on 31-3-2013

LIABILITIES
Particulars

1. Share capital
2. Borrowings
3. Deposits
4. Adjusting heads due by
5. Reserve fund and other
funds
6. Specific reserves
7. Undisbursed profits
8. Undistributed profits
9. Establishment and
contingents charges due
10.Interest payable
11.Other liabilities

Total liabilities

Difference between Assets


& Liabilities

Total assets

sch

1
2
3
4
5
6
7
8
9
10
11

At the end of the year


31-3-2013

At the beginning
of the year 1-42012

THE CHODAVARAM CO- OP SUGARS LTD ., NoB. 1109, GOVADA


Balance sheet as on 31-3-2013

ASSETS
Particulars
CASH:
c) on hand
d) at banks
INVESTMENTS:e) shares in co-op institutions
f) deposits
g) securities
h) deposits with government
loans and advances
adjusting heads due to

PROPERTIES:f) land
g) plant & machinery
h) plant & machinery (expansion)
i) buildings storage godowns and
tanks
j) others
stock in trade
pre-paid expenses

Total

Sch At the end of the At the beginning of


year 31-3-2013
the year 1-4-2012

THE CHODAVARAM CO- OP SUGARS LTD ., NoB. 1109, GOVADA


Profit & loss account for the year ended 31-3-2013
S.N
o
1

loss
Interest

sc amoun s.n
profit
sc Amoun
h
t
o
h
t
10
1 Gross profit(as
per trading
account)

Interest
2

Establishmen 9c
t and
contingent
charges
debitable of
profit and
loss account

depreciation

Establishmen 9c
t and
contingent
charges
creditable to
profit and
loss account

Total

Total

THE CHODAVARAM CO- OP SUGARS LTD ., NoB. 1109, GOVADA


Manufacturing account for the year ended 31-3-2013
s.
no
1

loss
Opening stock

sch amoun s.
t
no
6
1

profit

sch

Closing stock

PURCHASES

a. Cost of cane
b. Incentive cane
price from
purchase tax
c. Incentive cane
price(bonus)
d. Additional cane
price
e. Cane transport
subsidy
f. General stores

Establishment and
contingent charges
debitable to
manufacturing
account

9a

depreciation

Total

Consumption
of store
material

Establishment
and contingent
charges
creditable of
mfg account

Cost of
production
Transferred to
trading
A\C :Sugar
1218678871.11
Molasses
21370372
Power
55128640.00
Filter mud
133855.00

Total

Amount

THE CHODAVARAM CO- OP SUGARS LTD ., No. B. 1109, GOVADA


Trading account for the year ended 31-3-2013
s.no

1
2

loss
Opening stock

sch
6

Cost of production
transferred from
manufacturing
account

amount

Sno
1

profit
Closing stock

sch
6

Sales

Establishment
and
contingent
charges
creditable to
Trading
account

9b

Sugar:1218678871.11
Molasses: 21370372
Power : 55128640.00
Filter mud:
133855.00

3
4

Purchases

Gross profit

Establishment and
contingent charges
debitable to
trading account

Total

6
9b

Total

amount

THE CHODAVARAM CO-OP SUGARS LTD., No. B. 1109, GOVADA


Balance sheet as on 31-3-2013

LIABILITIES
Particulars

1. Share capital
2. Borrowings
3. Deposits
4. Adjusting heads due by
5. Reserve fund and other
funds
6. Specific reserves
7. Undisbursed profits
8. Undistributed profits
9. Establishment and
contingents charges due
10.Interest payable
11.Other liabilities

Total liabilities

Difference between Assets


& Liabilities

Total assets

sch

1
2
3
4
5
6
7
8
9
10
11

At the end of the year


31-3-2013

At the beginning
of the year 1-42012

THE CHODAVARAM CO- OP SUGARS LTD ., NoB. 1109, GOVADA


Balance sheet as on 31-3-2013

ASSETS
Particulars

Sch At the end of the At the beginning of


year 31-3-2013
the year 1-4-2012

CASH:
1a
c) on hand
d) at banks
INVESTMENTS:e) shares in co-op institutions
f) deposits
g) securities
h) deposits with government
loans and advances
adjusting heads due to

PROPERTIES:f) land
g) plant & machinery
h) plant & machinery (expansion)
i) buildings storage godowns and
tanks
j) others
stock in trade
pre-paid expenses

Total

2184948.03

THE CHODAVARAM CO- OP SUGARS LTD ., NoB. 1109, GOVADA


Profit & loss account for the year ended 31-3-2013
S.N
o
1

loss
Interest

sc Amoun s.n
profit
sc Amoun
h
t
o
h
t
10
1 Gross profit(as
per trading
account)

Interest
2

Establishme
nt and
contingent
charges
debitable of
profit and
loss account

9c

depreciation

Establishme 9c
nt and
contingent
charges
creditable to
profit and
loss account

Total

Total

THE CHODAVARAM CO- OP SUGARS LTD ., NoB. 1109, GOVADA


Manufacturing account for the year ended 31-3-2013
s.
no
1

loss
Opening stock

sch amoun s.
t
no
6
1

profit

sch

Closing stock

PURCHASES

a. Cost of cane
b. Incentive cane
price from
purchase tax
c. Incentive cane
price(bonus)
d. Additional cane
price
e. Cane transport
subsidy
f. General stores

Establishment and
contingent charges
debitable to
manufacturing
account

9a

depreciation

Total

Consumption
of store
material

Establishment
and contingent
charges
creditable of
mfg account

Cost of
production
Transferred to
trading
A\C :Sugar
1218678871.11
Molasses
21370372
Power
55128640.00
Filter mud
133855.00

Total

Amount

THE CHODAVARAM CO- OP SUGARS LTD ., No. B. 1109, GOVADA


Trading account for the year ended 31-3-2013
s.no

1
2

loss
Opening stock

sch
6

Cost of production
transferred from
manufacturing
account

amount

Sno
1

profit
Closing stock

sch
6

Sales

Establishment
and
contingent
charges
creditable to
Trading
account

9b

Sugar:1218678871.11
Molasses: 21370372
Power : 55128640.00
Filter mud:
133855.00

3
4

Purchases

Gross profit

Establishment and
contingent charges
debitable to
trading account

Total

6
9b

Total

amount

THE CHODAVARAM CO-OP SUGARS LTD., No. B. 1109, GOVADA


Balance sheet as on 31-3-2013

LIABILITIES
Particulars

1. Share capital
2. Borrowings
3. Deposits
4. Adjusting heads due by
5. Reserve fund and other
funds
6. Specific reserves
7. Undisbursed profits
8. Undistributed profits
9. Establishment and
contingents charges due
10.Interest payable
11.Other liabilities

Total liabilities

Difference between Assets


& Liabilities

Total assets

sch

1
2
3
4
5
6
7
8
9
10
11

At the end of the year


31-3-2013

At the beginning
of the year 1-42012

THE CHODAVARAM CO- OP SUGARS LTD ., NoB. 1109, GOVADA


Balance sheet as on 31-3-2013

ASSETS
Particulars
CASH:
c) on hand
d) at banks
INVESTMENTS:e) shares in co-op institutions
f) deposits
g) securities
h) deposits with government
loans and advances
adjusting heads due to

PROPERTIES:f) land
g) plant & machinery
h) plant & machinery (expansion)
i) buildings storage godowns and
tanks
j) others
stock in trade
pre-paid expenses

Total

Sch At the end of the At the beginning of


year 31-3-2013
the year 1-4-2012

THE CHODAVARAM CO- OP SUGARS LTD ., NoB. 1109, GOVADA


Profit & loss account for the year ended 31-3-2013
S.N
o
1

loss
Interest

sc Amoun s.n
profit
sc Amoun
h
t
o
h
t
10
1 Gross profit(as
per trading
account)

Interest
2

Establishme
nt and
contingent
charges
debitable of
profit and
loss account

9c

depreciation

Establishme 9c
nt and
contingent
charges
creditable to
profit and
loss account

Total

Total

THE CHODAVARAM CO- OP SUGARS LTD ., NoB. 1109, GOVADA


Manufacturing account for the year ended 31-3-2013
s.
no
1

loss
Opening stock

sch amoun s.
t
no
6
1

profit

sch

Closing stock

PURCHASES

a. Cost of cane
b. Incentive cane
price from
purchase tax
c. Incentive cane
price(bonus)
d. Additional cane
price
e. Cane transport
subsidy
f. General stores

Establishment and
contingent charges
debitable to
manufacturing
account

9a

depreciation

Total

Consumption
of store
material

Establishment
and contingent
charges
creditable of
mfg account

Cost of
production
Transferred to
trading
A\C :Sugar
1218678871.11
Molasses
21370372
Power
55128640.00
Filter mud
133855.00

Total

Amount

THE CHODAVARAM CO- OP SUGARS LTD ., No. B. 1109, GOVADA


Trading account for the year ended 31-3-2013
s.no

1
2

loss
Opening stock

sch
6

Cost of production
transferred from
manufacturing
account

amount

Sno
1

profit
Closing stock

sch
6

Sales

Establishment
and
contingent
charges
creditable to
Trading
account

9b

Sugar:1218678871.11
Molasses: 21370372
Power : 55128640.00
Filter mud:
133855.00

3
4

Purchases

Gross profit

Establishment and
contingent charges
debitable to
trading account

Total

6
9b

Total

amount

THE CHODAVARAM CO-OP SUGARS LTD., No. B. 1109, GOVADA


Balance sheet as on 31-3-2013

LIABILITIES
Particulars

1. Share capital
2. Borrowings
3. Deposits
4. Adjusting heads due by
5. Reserve fund and other
funds
6. Specific reserves
7. Undisbursed profits
8. Undistributed profits
9. Establishment and
contingents charges due
10.Interest payable
11.Other liabilities

Total liabilities

Difference between Assets


& Liabilities

Total assets

sch

1
2
3
4
5
6
7
8
9
10
11

At the end of the year


31-3-2013

At the beginning
of the year 1-42012

THE CHODAVARAM CO- OP SUGARS LTD ., NoB. 1109, GOVADA


Balance sheet as on 31-3-2013

ASSETS
Particulars
CASH:
c) on hand
d) at banks
INVESTMENTS:e) shares in co-op institutions
f) deposits
g) securities
h) deposits with government
loans and advances
adjusting heads due to

PROPERTIES:f) land
g) plant & machinery
h) plant & machinery (expansion)
i) buildings storage godowns and
tanks
j) others
stock in trade
pre-paid expenses

Total

Sch At the end of the At the beginning of


year 31-3-2013
the year 1-4-2012

THE CHODAVARAM CO- OP SUGARS LTD ., NoB. 1109, GOVADA


Profit & loss account for the year ended 31-3-2013
S.N
o
1

loss
Interest

sc Amoun s.n
profit
sc Amoun
h
t
o
h
t
10
1 Gross profit(as
per trading
account)

Interest
2

Establishme
nt and
contingent
charges
debitable of
profit and
loss account

9c

depreciation

Establishme 9c
nt and
contingent
charges
creditable to
profit and
loss account

Total

Total

THE CHODAVARAM CO- OP SUGARS LTD ., NoB. 1109, GOVADA


Manufacturing account for the year ended 31-3-2013
s.
no
1

loss
Opening stock

sch amoun s.
t
no
6
1

profit

sch

Closing stock

PURCHASES

a. Cost of cane
b. Incentive cane
price from
purchase tax
c. Incentive cane
price(bonus)
d. Additional cane
price
e. Cane transport
subsidy
f. General stores

Establishment and
contingent charges
debitable to
manufacturing
account

9a

depreciation

Total

Consumption
of store
material

Establishment
and contingent
charges
creditable of
mfg account

Cost of
production
Transferred to
trading
A\C :Sugar
1218678871.11
Molasses
21370372
Power
55128640.00
Filter mud
133855.00

Total

Amount

THE CHODAVARAM CO- OP SUGARS LTD ., No. B. 1109, GOVADA


Trading account for the year ended 31-3-2013
s.no

1
2

loss
Opening stock

sch
6

Cost of production
transferred from
manufacturing
account

amount

Sno
1

profit
Closing stock

sch
6

Sales

Establishment
and
contingent
charges
creditable to
Trading
account

9b

Sugar:1218678871.11
Molasses: 21370372
Power : 55128640.00
Filter mud:
133855.00

3
4

Purchases

Gross profit

Establishment and
contingent charges
debitable to
trading account

Total

6
9b

Total

amount