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Lovely Professional University: A Study On Capital Structure Analysis AT
Lovely Professional University: A Study On Capital Structure Analysis AT
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ACKNOWLEDGEMENT-
Myself surendra pal singh student of LPU, underwent six-week training with
Triveni Engg. & Industries ltd., KHATAULI. This is a part of MBA for which I
had undergone practical training to understand exactly about the working of
Triveni engg. & Industries ltd.
First of all I would like to thank Triveni engg. & Industries ltd. for his co-operation
than I would express my gratitude to Mr. Umesh Saini (Sr. Finance Manager)
and Mr. Harish Grover (Sr. Manager- Quality Control) Triveni Engg. &
Industries for accepting me as trainee and allowing me to do project under their
supervision.
Last but not the least, I acknowledge with thanks the active co-operation extended
by all the respondents while collecting the data and to those who were concerned
directly or indirectly with this project.
-1-
CONTENTS
PROFILE 14-77
CHAPTER III 3.1 Industry Profile
5.1 Suggestions
6.1 Conclusion
6.2 Bibliography
-2-
LIST OF TABLE
DEBT-EQUITY RATIO
5 92
PROPRIETARY RATIO
6 95
-3-
CHAPTER- I
INTRODUCTION
Contents:
-1-
1.1 INTRODUCTION
A) PBIT-EPS ANALYSIS
B) ROI-ROE ANALYSIS
C) LEVERAGE ANALYSIS :-
I. OPERATING LEVERAGE ANALYSIS
II. FINANCIAL LEVERAGE ANALYSIS
-2-
1) PBIT-EPS ANALYSIS
CALCULATION OF EBIT:-
Sales : xxxxx
(-)V.C : xxx
=Contribution : xxxxx
(-)F.C : xxxx
=EBIT {Earning Before Interest and Taxes}
CACULATION OF EPS:-
EBIT : xxxxx
(-)INTERSET : xxx
=EBT : xxxxx
(-)TAX : xx
=Earning for ESH : xxxxx
() No. of E.S : xxx
-3-
= EPS {Earning Per Share} xxx
EPS=(PBIT-I)(1-t)/n
2) ROI-ROE ANALYSIS :-
ROE=[ROI+(ROI-r)D/E](1-t)
WHERE:-
ROE= Return on equity
ROI=Return on investment
R=Cost of debt
D/E=debt-equity ratio
T=Tax rate
3) LEVERAGE ANALYSIS :-
Leverage arise from the existence of fixed cost there are two kind of
leverage
1. OPERATING LEVERAGE
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2. FINANCIAL LEVERAGE
1. OPERATING LEVERAGE:-
-5-
2. FINANCIAL LEVERAGE:-
-6-
4. DEGREE OF TOTAL LEVERAGE (DTL) :-
The percentage change in EPS that results from a given percentage change in
sales
DTL = DOL X DFL
DTL=Q(P-V)/Q(P-V)-f-int
DTL=S-VC/S-VC-F-INT = GROSS PROFIT/EBIT-INT
-7-
The basic objective of studying the capital structure of the company is to
know the financial position of the company.
To know the solvency of the business and the capacity to give interest to
the long term loan lenders (debenture holders) and dividend to the share
holders.
-8-
The data required for the study has been collected from secondary
source .The relevant information were taken from annual reports, journals and
internet.
This study is based on the annual report of triveni engineering & industry ltd.
Hence the information related to, leverage, short term and long term solvency
were very much required for attaining the objectives of the present study.
1.3.4 Tools applied:
To have a meaningful analysis and interpretation of various data collected, the
following tools were made for this study.
PBIT-EPS analysis
ROI-ROE analysis
Operating leverage analysis
Financial leverage analysis
The analysis was made with the help of the secondary data collected from
the company.
-9-
The period of study is 5 years from 2005-06 to 2008-09. Because of
given task I have to choose only 5 year.
CHAPTER- II
- 10 -
REVIEW OF LITERATURE
Contents:
Abstract
Abstract
hilippe Jacquart, Catherine Ramus & John Antonakis, on May 23, 2004
Strategic and Financial Performance Implications of Global Sourcing
Strategy: A Contingency Analysis
Abstract
- 12 -
"Using a contingency model of global sourcing strategy, this study
investigated the moderating effects of sourcing-related factors on the
relationship between sourcing strategy and a product's strategic and
financial performance. The results lent some support to the contingency
model of global sourcing strategy in that product innovation, process
innovation and asset specificity were significant moderator variables for
financial, but not strategic, performance. However, the results provided no
support for bargaining power of suppliers and transaction frequency as
moderator variables. In other words, in achieving high financial
performance for a product, whether a particular sourcing strategy should
be used for a particular product depended on the levels of product
innovation, process innovation and asset specificity."
Abstract
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Compute the financial leverage index, debt to capital ratio, debt to
equity ratio, and other techniques for analyzing capital structure.
Abstract
This paper surveys capital structure theories based on agency costs, asymmetric
information, product/input market interactions, and corporate control
considerations (but excluding tax-based theories). For each type of model, a brief
overview of the papers surveyed and their relation to each other is provided. The
central papers are described in some detail, and their results are summarized and
followed by a discussion of related extensions. Each section concludes with a
summary of the main implications of the models surveyed in the section. Finally,
these results are collected and compared to the available evidence. Suggestions for
future research are provided.
Abstract
- 14 -
leverage-related costs). The optimal leverage model yields a number of interesting
predictions regarding cross-sectional and time-series properties of firms' capital
structures. Extant evidence bearing on these predictions is examined.
- 15 -
CHAPTER- III
PROFILE
Contents:
BUSINESS OVERVIEW;-
Triveni's association with the Sugar Industry is as old as the Industry itself. In
pre independence India, the promoters of what is now the Triveni Group
established several sugar factories in pre independent India. Even now, Triveni
is the pre- eminent name in the Indian sugar industry.
- 17 -
With a current cane crushing capacity of 61,000 TCD (Tonnes Crushing per
Day), the Triveni Group continues to be one of the largest producers of sugar in
India. The crush capacity of the existing plants are (as follows;
Khatauli, in District Muzaffarnagar (16,000 TCD)
Deoband in District Saharanpur (14,000 TCD)
Ramkola in District Kushinagar (6,500 TCD)
Sabitgarh in District Bulandshehar (7,000 TCD)
Chandanpur in District J P Nagar (6000 TCD)
Raninagal in District Moradabad (5500 TCD)
Milak Narainpur in District Rampur (6000 TCD)
The new capacities at Chandanpur, Raninagal & Milak Narainpur together with
the brownfield expansion at Ramkola were commissioned during the sugar
season 2006-07.
All seven sugar factories are located in the state of Uttar Pradesh. In all the
factories, double suphitation process is followed for sugar production.
The sugar produced at Triveni's factories is direct consumption
plantation white low ICUMSA (an International method for determining colour
value of sugar, lower value means whiter sugar), bold grain sugar which
commands premium in the market. A lot of emphasis is placed on the quality
control procedures an quality of sugar produced in the factories.
- 18 -
high cane intensity region of western Uttar Pradesh where the sugar cane crop is
least dependent on the vagaries of the Monsoon & therefore are very consistent
in terms of the cane availability & capacity utilization.
The Ramkola unit is located in lucrative eastern UP where the
realization of sugar (particularly because of the robust demand from sugar
deficient West Bengal) is better as compared to western UP.
The three new sugar units are located in the Central UP.
MILESTONES :-
Since the setting up of first unit at Deoband in 1932, the overall performance of
our Sugar Business has been commendable. During the last two decades we
have crossed many milestones and are committed to cross many more in the
future.
- 19 -
Following is a glimpse of our achievements during the last two decades:
1989
Awarded "Certificate of Merit" for best performance during season 1987-88 by
National Productivity Council of India. This award was presented by Hon'ble
Shri J. Vengala Rao, then Hon'ble Minister of Industries, Govt. of India and
President of NPC.
1991
The Double Carbonation and Double Sulphitation process was converted
successfully into Double Sulphitation process having due consideration to
Environmental problems.
1992
Successfully completed Expansion and Modernisation of the Plant from 5000
TCD to 10,000 TCD.
1998
Successfully completed the Expansion of the Plant from 10,000 TCD to 11,000
TCD.
2000
We exported 2.42 Lac. Qtls. of Sugar to Pakistan.
2001
Launching of the Biological Control Lab. for Soil testing and developing of
biological pest control system for the benefits of the Cane Growers of the area.
- 20 -
2003
In August, 2003 launched Branded Sugar "Shagun" and started packing of
consumer packets.
2005
Launched "Triveni Kushali Bazaar" an Agri-business Centre at Village Ladpur
near our Sugar Unit mainly for making available agricultural implements &
inputs and other domestic items under one roof for the Cane Growers of the
area.
2005
We crushed 186.61 lac. Qtls. of cane during season 2004-05 which was the
highest crush in India with highest production of 19.59 lac. Qtls. of Sugar.
Expansion of the Plant from 12,500 to 16,000 TCD by adding a new Milling
Tandam with complete automation system is being done which will commence
production in season 2005-06.
Product Quality
The commercial grading of sugar in India is based on grain size and colour
categories. Currently 3-grain sizes and 3 colour series are identified.
- 21 -
GRADE GRAIN SIZE
L > 1.70 mm
M 1.18 - 1.70 mm
S 0.60 - 1.18 mm
In India bold grain carries a premium. Keeping this in mind, the Khatauli unit
produces sugar of bolder grain of low colour value. The production is
categorised as following (figures are approx. as they vary every year)-
L-31 20%
M-31 70%
S-31 10%
Sugar is statutorily required to be packed in 100 Kg twill jute bags
- 22 -
Cane Development Programme
The philosophy of the cane development and marketing is almost common for
all the sugar units. While in following paragraphs, description is for Khatauli but
applies generally to Deoband & Ramkola units as well.
After identifying the constraints in the area of operation, the mill has undertaken
an ambitious programme of Cane Development for improvement in productivity
and quality of cane. The mill has separate cane development wing with qualified
staff and experienced personnel. For this purpose the operational area has been
divided into sub-zones and the field supervisory staff has been provided with the
necessary facilities for efficient working and proper supervision of the various
cane development activities.
The cane development programme is planned with following activities:-
- 24 -
20 sugar factories.
The mills designed by Triveni are considered by experts to be very robust and
rugged, requires least maintenance and give higher mill extractions.
Triveni got out of the business of complete new sugar units installation as it
started focussing on niche technology and equipment available because of tie up
with SRI, a premier sugar research institute of Australia and industry turning to
low cost small players (at a time when sugar industry was going through bad
phase) started eating away the profits made by this division.
Now, Triveni SRI Limited (TSL), a Triveni Group Company, under a License
Agreement with Sugar Research International, offers the latest models of plants
and machinery available to the Australian industry to the Indian Sugar Industry.
TEIL was incorporated in 1932 and has been managed by the Triveni Group, of
which Mr. Dhruv Sawhney is the key promoter. The promoters hold around 70%
of the companys equity and have over four decades of experience in the sugar
business. Apart from its main business of sugar manufacture, TEIL is also
engaged in the manufacture of small steam turbines and high-speed gears, and in
the execution of water treatment related projects. TEIL is the third largest
domestic sugar manufacturer with a combined capacity of over 61,000 tonnes
crushed per day (tcd). The companys sugar mills are located at Khatauli
(16,000 tcd), Deoband (14,000 tcd), Sabitgarh (7,000 tcd), Chandanpur (6,000
tcd), Raninagal (5,500 tcd), and Narayanpur (6,000 tcd), all in western UP, and
at Ramkola (6,500 tcd) in eastern UP. Apart from these, TEIL also has a 46 MW
- 25 -
co-generation capacity at its Khatauli sugar mill, a 22 MW cogeneration
capacity at its Deoband sugar mill, and a 160 kilo litres per day (klpd) distillery
at Muzaffarnagar UP. The companys sugar business, including the co
generation and distillery facilities, is the largest among its businesses in terms of
revenues and capital employed.
TEILs steam turbine division, which is in Bangalore, is its second
largest division in terms of revenues and capital employed. This division
manufactures steam turbines of less than 18 MW size, and has recently started
making turbines in higher MW segments of up to 30 MW. TEIL also has a high-
speed gears division in Mysore, Karnataka,and a water projects division at
Noida, UP. While the high-speed gears division supplies gears to the steam
turbine division and to other industries and utilities, the water project division
offers engineered-to-order mechanical equipment relating to water/waste water
treatment. Although these divisions account for a relatively small portion of
TEILs revenues, profits and capital employed, the recent growth in them has
been significant.
TEILs sugar (including co-generation) and turbines divisions have
remained the main contributors to the overall turnover and profits of the
company , together accounting for over 90% of the companys turnover and
profits. However, the contributions have varied significantly over the last few
years because of the cyclicality in the sugar business.
TEILs sugar and allied businesses account for almost 80% (around Rs.
15 billion) of the total capital employed, and the turbine division for just around
10%. For the 15 months ended June 2007, TEIL reported a PBIT of Rs 1.26
billion, contributed largely by its engineering businesses.
- 26 -
MANAGEMENT:-
Name Designation
Dhruv M Sawhney Chairman and Managing director
Nikhil Sawhney Executive Director
K K Hazari Director
M K Daga Director
Shekhar Datta Director
Name Designation
Tarun Sawhney Executive Director
F C Kohli Director
K N Shenoy Director
Amal Ganguli Director
R C Sharma Director
GLOBAL CONSUMPTION
- 27 -
Today, we touch the lives of millions of people globally by serving our
customers in the areas of sugar, turbines, gears & gearboxes and water &
- 28 -
wastewater treatment. While we are amongst the three largest sugar
manufacturers in India, we are also the market leaders in our engineering
businesses, having a global footprint.
VISION
- 29 -
CORE VALUES
CUSTOMER FOCUS
ORGANISATIONAL PRIDE
TOTAL QUALITY
The Following diagram Show the service offered by triveni group at khatauli
plant is as follows:
- 30 -
Sugar Businesses:
Sugar Manufacturing: Triveni plans to expand its sugar manufacturing
capacity to around 52,000 tons of sugarcane crushed per day (tcd) in
fiscal 2006-07. This expansion will include three new sugar factories
with capacities ranging between 5000 to 7000 tcd. All the three factories
will be located in West Uttar Pradesh, allowing the company to operate in
a well irrigated cane growing areas with close access to sugar deficient
markets. The company is also expanding its sugarcane crushing
capacities at its factories in Deoband and Khatauli. The expansions in
capacity and one new sugar factory (at Sabitgarh, district Bulandsher)
will be operational within the financial year 2005-06.
- 31 -
Khatauli by September 2005. Therefore the total co generated power
produced by Triveni, for export, will equal 45MW.
Engineering Businesses:
Turbines: Triveni will double its capacity to manufacture turbines by
March 2006. It will also expand the capacity output of its range of
turbines and focus on exports.
Gears & Gearboxes: The gears business has expanded its production
capacity three fold and is actively pursuing export opportunities through
its License partner - Lufkin.
Triveni Engineering & Industries Limited has a command area of over 1 lakh
ha.under sugarcane cultivation, covering over 1.46 lakh farmers and buys more
than Rs. 300 Crore of sugarcane per annum from these farmers.
- 32 -
We have a team of over 250 staff in the Cane development who work closely
with these farmers. We are now leveraging our longstanding relationship with
these farmers to provide them with the entire range of Agri inputs and services
under one shop called Triveni Khushali Bazaar.
Triveni Khushali Bazaar will increase the association of rural communities with
us and further strengthen their relationship with us. Such a relationship, coupled
with our track record of timely payment to farmers will enable us to secure the
source of our primary raw material.
Currently Khushali Bazaar has 2 Triveni owned stores and 4 franchise owned
stores. The self owned stores are at Khatauli and Deoband. The franchises are at
Jansath, Sisauli, Ghatain and Badgaon. These stores are operating since
February 2005.
These stores will provide to farmers, Agri inputs, Agri implements for sale as
well as rental, Irrigation equipment, Agri extension services, Cement, Cattle
feed, FMCG, Petrol/Diesel, Lubricants, Two wheelers, Tractors and other goods
to complete the farmers' basket of goods. We have established tie-up with a
number of leading companies to sell their products through our stores. We have
also tied up a bank to provide loans to our sugarcane farmers to facilitate their
shopping in our stores.
After stabilising the operations at these stores, we would like to expand our
network to other parts of UP.
- 33 -
BRANDED SUGAR- SHAGUN
on 26 September 2003 Triveni launched its 1kg & 5kg packets of sugar under
the brand name of SHAGUN
Objective of branding:-
To get closer to end consumer and provide them with a value added product.
- 34 -
High disposable income.
Target customer
House wife
25 40 years
- 35 -
Competition
- 36 -
Balrampur Chini 79.65 2,058.74 1,704.58 226.51 2,147.28
Bannariamman 847.45 969.46 884.44 143.63 799.32
Andhra Sugar 135.80 368.11 578.34 66.84 639.61
Dhampur Sugar 61.20 329.90 948.04 56.19 1,231.60
KCP Sugar 20.30 230.17 301.55 23.74 208.25
Sakthi Sugars 55.00 202.44 1,374.71 103.49 2,159.63
- 37 -
CHAPTER- IV
A. PBIT-EPS ANALYSIS
EPS = (PBIT-I)(1-t)/n
EPS=(136.08-30.64)(1-.241)/831.52
EPS=(105.44*.759)/831.52
EPS=.096
- 38 -
2. PBIT-EPS ANALYSIS 2006:-
EPS=(221.17-30.43)(1-.297)/2578.80
EPS=(190.74*.703)/2578.80
EPS=.051
EPS=(193.08-93.87)(1+.039)/2578.80
EPS=(99.21*1.039)/2578.80
EPS=.039
EPS=(317.29-109.85)(1-.228)/2578.80
EPS=(207.44*.772)/2578.80
EPS=.062
EPS=(426.11-115.46)(1-.726)/2578.80
EPS=(310.65*.274)/2578.80
EPS=.033
- 39 -
TABLE -1
PBIT-EPS ANALYSIS
Year EPS
2004-2005 .096
2005-2006 .051
2006-2007 .039
2007-2008 .062
2008-2009 .033
- 40 -
Interpretation and Analysis:
The above table and diagram shows that the EPS in the year 2004-05 was .096
and then it decreases to .051 in the year 2005-06, further decrease to .039 in the
year 2006-07 and in the year 2007-08 it increase.062 and finally in the year
2008-09 it again moved down to .033.
We know that company earnings per share is decreasing continuously but
in 2007-08 the EPS is high its mean share holder wealth is maximizing but in
2008-09 again decreasing because in this period there were a dispute between
management and employee and because of strike company is in lose so
company should take serious step regarding employee satisfaction for to
improve shareholder wealth
- 41 -
B. LEVERAGE ANALYSIS:-
DOL 2005:-
DOL 2006:-
DOL 2007:-
- 42 -
DOL 2008:-
DOL 2009:-
TABLE-2
DEGREE OF OPERATING LEVERAGE:
Year DOL
2004-2005 6.484
2005-2006 .5254
2006-2007 9.817
2007-2008 5.372
2008-2009 3.916
- 43 -
CHART-2
DOL:
The above table and diagram shows the operating leverage during
the study period except in the year 2006-2007 is more than previous year but in
year 2007-08 it again decreased and year 2008-09 it again come down
The DOL is an index number which measures the effect
of a change in sales on operating income, or EBIT. It shows that
company is giving less amount and bear less depritiation charge it is
good for company.
- 44 -
2. DEGREE OF FINANCIAL LEVERAGE:-
DFL 2005:-
DFL=PBIT / PBT
DFL=136.08/86.76
DFL=1.568
DFL 2006:-
DFL=PBIT/PBT
DFL=221.17/161.20
DFL=1.372
DFL 2007;-
DFL=PBIT/PBT
DFL=193.08/72.48
DFL=2.663
DFL 2008:-
DFL=PBIT/PBT
DFL=317.29/140.74
DFL=2.254
- 45 -
DFL 2009:-
DFL=PBIT / PBT
DFL=426.11/247.26
DFL=1.723
TABLE-3
DEGREE OF FINANCIAL LEVERAGE:
Year DFL
2004-2005 1.568
2005-2006 1.372
2006-2007 2.663
2007-2008 2.254
2008-2009 1.723
- 46 -
CHART-3
DFL:-
DTL 2005:-
DTL=DOL*DFL
DTL=6.484*1.568
DTL=10.17
DTL 2006:-
DTL=DOL*DFL
DTL=.5254*1.372
DTL=.720
DTL 2007:-
DTL=DOL*DFL
DTL=9.817*2.663
DTL=26.14
DTL 2008:-
DTL=DOL*DFL
DTL=5.372*2.254
DTL=12.108
- 48 -
DTL 2009:-
DTL=DOL*DFL
DTL=3.916*1.723
DTL=6.747
TABLE-4
DEGREE OF TOTAL LEVERAGE:
- 49 -
Year DTL
2004-2005 10.17
2005-2006 .720
2006-2007 26.14
2007-2008 12.108
2008-2009 6.747
- 50 -
CHART-4
DTL
- 51 -
B) LEVERAGE RATIOS:
Many financial analyses are interested in the relative use of debt and
equity in the firm. The term solvency refers to the ability of a concern to meet
its long-term obligation. Accordingly, long-term solvency ratios indicate a firms
ability to meet the fixed interest and costs and repayment schedules associated
with its long-term borrowings. (E.g.) debt equity ratio, proprietary ratio, etc.
Outsiders funds
Debt equity ratio = ------------------------------
Proprietors funds
- 52 -
TABLE-5
DEBT EQUITY RATIO:
CHART-4
- 53 -
DEBT EQUITY RATIO:
- 54 -
Proprietary ratio relates to the proprietors funds to total assets. It
reveals the owners contribution to the total value of assets. This ratio shows the
long-time solvency of the business it is calculated by dividing proprietors funds
by the total tangible assets.
Proprietors funds
Proprietary ratio = ---------------------------
Total tangible assets
TABLE-5
PROPRIETARY RATIO:
- 55 -
CHART-5
PROPRIETARY RATIO:
C. ROI-ROE ANALYSIS:-
- 56 -
ROE= [ROI+(ROI-r)D/E](1-t)
ROI OF 2005
ROI=99.52/644.22*100
ROI=15.44
ROI OF 2006
ROI=131.50/932.85*100
ROI=14.09
ROI OF 2007
ROI=75.43/1693.59*100
ROI=4.45
ROI OF 2008
ROI=111.52/1952.42*100
ROI=5.71
ROI OF 2009
ROI=169.78/1756.79*100
ROI=9.66
- 58 -
Year ROI ROI-ROE
RELATION
- 59 -
INTERPRETATION:-
IN the study of 2004-05 to 2008-09 the return on equity from 2005-2006 was
good but in year 2007-09 it was not good its mean investment is not up to the
mark its a drawback for shareholder so company should work hard to control
this low graph.
- 60 -
Balance Sheet of Triveni
------------------- in Rs. Cr. -------------------
Engineering
Mar '05 Mar '06 Sep '07 Sep '08 Sep '09
12
12 mths 12 mths 12 mths 12 mths
mths
Sources Of Funds
Total Share Capital 10.30 25.79 25.79 25.79 25.79
Equity Share Capital 8.32 25.79 25.79 25.79 25.79
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 1.99 0.00 0.00 0.00 0.00
Reserves 165.41 486.37 649.06 741.06 880.66
Revaluation Reserves 18.42 18.08 17.19 16.87 16.54
Networth 194.13 530.24 692.04 783.72 922.99
Secured Loans 429.96 369.80 931.13 1,079.84 758.75
Unsecured Loans 20.13 32.81 70.42 88.86 75.05
Total Debt 450.09 402.61 1,001.55 1,168.70 833.80
Total Liabilities 644.22 932.85 1,693.59 1,952.42 1,756.79
Mar '05 Mar '06 Sep '07 Sep '08 Sep '09
Application Of Funds
Gross Block 387.68 710.07 1,503.60 1,556.92 1,634.87
Less: Accum. Depreciation 116.92 139.78 218.94 295.81 370.17
Net Block 270.76 570.29 1,284.66 1,261.11 1,264.70
Capital Work in Progress 30.04 46.74 21.11 39.67 19.20
Investments 22.98 1.86 10.83 11.62 26.98
Inventories 435.28 404.79 419.72 539.79 458.14
Sundry Debtors 66.65 100.34 94.28 213.45 242.88
Cash and Bank Balance 17.36 20.36 20.91 14.92 15.65
Total Current Assets 519.29 525.49 534.91 768.16 716.67
Loans and Advances 68.76 87.36 346.83 385.71 416.52
Fixed Deposits 5.42 5.56 4.52 3.78 11.67
Total CA, Loans & Advances 593.47 618.41 886.26 1,157.65 1,144.86
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 222.21 256.68 459.96 435.20 602.99
Provisions 53.71 48.76 51.53 84.34 97.27
Total CL & Provisions 275.92 305.44 511.49 519.54 700.26
Net Current Assets 317.55 312.97 374.77 638.11 444.60
Miscellaneous Expenses 2.88 0.96 2.24 1.92 1.30
Total Assets 644.21 932.82 1,693.61 1,952.43 1,756.78
12
12 mths 12 mths 12 mths 12 mths
mths
Income
1,023.0
Sales Turnover 1,270.30 2,053.06 1,703.04 1,967.64
8
Excise Duty 58.15 70.95 144.82 116.75 59.87
Net Sales 964.93 1,199.35 1,908.24 1,586.29 1,907.77
Other Income -35.64 10.54 6.34 9.60 -10.19
Stock Adjustments -46.84 -48.68 -19.05 108.83 -228.68
Total Income 882.45 1,161.21 1,895.53 1,704.72 1,668.90
Expenditure
Raw Materials 630.85 805.39 1,405.02 1,134.07 968.34
Power & Fuel Cost 4.72 9.91 17.00 10.72 11.95
Employee Cost 54.06 72.24 146.53 120.13 135.89
Other Manufacturing Expenses 17.77 22.93 59.22 46.80 46.91
Selling and Admin Expenses 28.58 35.03 76.73 47.83 50.44
Miscellaneous Expenses 15.06 22.61 49.85 29.38 30.56
Preoperative Exp Capitalised -4.67 -28.07 -51.90 -1.50 -1.30
Total Expenses 746.37 940.04 1,702.45 1,387.43 1,242.79
Mar '05 Mar '06 Sep '07 Sep '08 Sep '09
12
12 mths 18 mths 12 mths 12 mths
mths
Contents:
5.1 Findings
5.2 Suggestions
5.1 FINDINGS:-
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In all the years the debt equity is more, when compared with borrowings.
Hence the company is maintaining its debt position.
The proprietary ratio during the study period to the total assets is more than
the 2/3. During 2004-05 it is more than 50%
In all the years the equity is more when compared with borrowings.
Hence the company is maintaining its debt position
Earning per share of the company is decreasing
Degree of financial leverage is decreasing
Intangible assets of the company is increasing 38 to 100
Liabilities on company is increasing from 3736 to 5096
Net current assets of the company is decreasing 6962 to 5379
Triveni canecrush is decreased by 36 %
5.2 SUGGESTION
The company's profit over the years has been decreasing when
compared to previous years and even it incurred loss in the last year.
The company must increase the profit in future. The company must
take steps to increase the profit level.
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The liquidity position of the company is quite satisfactory. And this
must be improved further for the purpose of proper utilization of the
liquid assets of the company.
The EPS position of the company is not satisfactory for the last five
years. It is fluctuating over the years and there is no standard ration
maintained. So the management should take steps to improving the
position of the company.
Debt equity ratio has satisfactory for the past years. So the company
has enough scope for the more long-term borrowings from the
outsiders as its current ratio is also good and has a sufficient amount
of current assets..
The Management must find out the reasons for the decrease in sales
and must take appropriate measures.
The Management must also study the market position and it also find
the demand prevailing in the market for the products and thus this will
guide them to enhance their sales volume.
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CONCLUSION AND BIBLIOGRAPHY
Contents:
6.1 Conclusion
6.2 Bibliography
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6.1 CONCLUSION:-
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6.2 BIBLIOGRAPHY
Website:
http://money.newkerala.com/company-profile-id-16020114.00.html
www.indianinfoline.com
Books:
Newspapers:
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The Hindu, Deccan Chronicle.
Source: http://web.mit.edu/doncram/www/environmental/envir-fin-
literature.html
Source: http://72.14.235.132/search?
q=cache:EIGjtsUJQeEJ:www.nait.org/jit/Art
icles/mehta011603.pdf+review+of+literature+on+financial+performance&h
l=en&ct=clnk&cd=2
Source: http://www.palgrave-
journals.com/jibs/journal/v26/n1/abs/8490171a.html
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4. Implications for financial performance and corporate social
responsibility, by Philippe Jacquart, Catherine Ramus & John
Antonakis, on May 23, 2004.
Source: http://www1.icp2008.org/guest/AbstractView?ABSID=10821
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