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1 Introduction
The success of any organization mainly depends upon four functional areas
of management namely finance, marketing, production, personal management. Finance is
defined as the time it is required any enterprise big, medium or small needs finance to carry
on its operations &to achieve its targets.. ratio analysis is part of the finance statement
analysis, which helps in know in the companies position to the outsiders.
Financial management is the scientific manipulation and exploitation of our
business and financial environment, using a range of statistical, mathematical, and economics
tools, with the aim of making the best economic decision, under prevailing circumstances and
availability of information and scarce resources.
Simply put, financial management is an intelligent quest for optimal use of financial and
other economic resources at our disposal. TAX matters are also considered.
Everybody engage in financial mgt one way or the other on a daily basis without knowing it-
at best, they will call it economizing. An average housewife will seek alternative ways of
getting more value for the money she spends.
Financial mgt as a discipline sprung out from economics to become a stand alone profession.
That is why we have people that call themselves financial manager and investment managers
today.
SCOPE OF FINANCIAL MANAGEMENT:
Financial Management cuts across wide range of sectors today- in fact, all sectors.
Government agencies for instance make use of cost-benefit-analysis to determine the
economic wisdom in certain projects.
Financial management has so advanced that many behavioral factors now play significant
role in certain aspects of financial management like valuation where Bankruptcy cost is
factored into options price. The legal practitioners rely on time-value of money to same
claims that involves financial compensation.
IMPORTANCE OF FINANCIAL MANAGEMENT
1. Economic growth and development: through investing decision, financing decision,
dividend decision, and risk management decision, better and more economically
viable projects are undertaken by companies. The resultant effect on the economy is
economic growth and development. Financial management serve as a good guide to
online investing.
2. Improved standard of living: growth and development in the economy that is brought
about by financial management will ultimately translate into improved standard of
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living for all.
3. Improved health: again, good economic condition and improved standard of living
culminates into improved health as a lot of ‗financial stress‘ related sicknesses will
be completely eliminated or reasonably reduced.
4. Allows for better financial decision

5. Alleviation of poverty

6. Preserve our environment

7. Promotes efficiency: good financial management does not give room for wastes and
inefficiencies that characterizes poor financial management and decision maki
Objectives of Financial Management:
The financial management is generally concerned with procurement, allocation and control of
financial resources of a concern. The objectives can be-

1. To ensure regular and adequate supply of funds to the concern.

2. To ensure adequate returns to the shareholders which will depend upon the earning
capacity, market price of the share, expectations of the shareholders.
3. To ensure optimum funds utilization. Once the funds are procured, they should be
utilized in maximum possible way at least cost.
4. To ensure safety on investment, i.e., funds should be invested in safe ventures so that
adequate rate of return can be achieved.
5. To plan a sound capital structure-There should be sound and fair composition of
capital so that a balance is maintained between debt and equity capital.
Functions of Financial Management
Investment Decision:
One of the most important finance functions is to intelligently allocate capital to long term
assets. This activity is also known as capital budgeting. It is important to allocate capital in
those long term assets so as to get maximum yield in future. Following are the two aspects of
investment decision
a. Evaluation of new investment in terms of profitability

b. Comparison of cut off rate against new investment and prevailing investment.

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Since the future is uncertain therefore there are difficulties in calculation of expected return.
Along with uncertainty comes the risk factor which has to be taken into consideration. This
risk factor plays a very significant role in calculating the expected return of the prospective
investment. Therefore while considering investment proposal it is important to take into
consideration both expected return and the risk involved.
Investment decision not only involves allocating capital to long term assets but also involves
decisions of using funds which are obtained by selling those assets which become less
profitable and less productive. It wise decisions to decompose depreciated assets which are
not adding value and utilize those funds in securing other beneficial assets. An opportunity
cost of capital needs to be calculating while dissolving such assets. The correct cut off rate is
calculated by using this opportunity cost of the required rate of return (RRR)

Financial Decision
Financial decision is yet another important function which a financial manger must perform.
It is important to make wise decisions about when, where and how should a business acquire
funds. Funds can be acquired through many ways and channels. Broadly speaking a correct
ratio of an equity and debt has to be maintained. This mix of equity capital and debt is known
as a firm‘s capital structure.
Dividend Decision
Earning profit or a positive return is a common aim of all the businesses. But the key function
a financial manger performs in case of profitability is to decide whether to distribute all the
profits to the shareholder or retain all the profits or distribute part of the profits to the
shareholder and retain the other half in the business.
Liquidity Decision
It is very important to maintain a liquidity position of a firm to avoid insolvency. Firm‘s
profitability, liquidity and risk all are associated with the investment in current assets. In
order to maintain a tradeoff between profitability and liquidity it is important to invest
sufficient funds in current assets. But since current assets do not earn anything for business
therefore a proper calculation must be done before investing in current assets. Current assets
should properly be valued and disposed of from time to time once they become non
profitable.

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NEED FOR THE STUDY:

1. The study has great significance and provides benefit to various parties who are directly
or in directly connected with the company.
2. The study is also beneficial to employees and offers motivations by showing how
actively there are contributing for company growth.
3. By using the technique of ratio analysis the labour leaders reveal how the company
stand in relation to labour &welfare.
4. A banker can judge the liquidity position .A creditor can establish the credit rating
&an investor can plan buying and selling of shares on the basic safety of principle
earnings.
5. The study aims at appraising the existing working capital condition and give
suggestions if any based on the analysis.

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SCOPE OF THE STUDY:

The ratio analysis is the most powerful tool of the financial analysis. These ratios are needed to
determine those financial characteristics of the firm, in which users are interested .with the help of
ratios, one can determine:

1. The ability of the firm to meet its current obligations.

2. The extent to which the firm as used it long-term solvency by borrowing funds.

3. The efficiency with which the firm is utilizing its assets in generating sales
revenue.

4. The overall operating efficiency and performance of the firm.

5. This study is also useful to know the strengths and weaknesses of the company.

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OBJECTIVES OF THE STUDY:
The objectives of the study are as follows:

1. To know the liquidity position of the company.


2. To measure the profitability position of Tirumala cotton & agro products
3. The study of the operating efficiency of Tirumala cotton & agro products
4. To analyze the financial strengths and weaknesses of Tirumala cotton & agro products
5. To identify leverage capacity of Tirumala cotton & agro products .
6. To know the activity position of Tirumala cotton & agro products

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LIMITATIONS OF THE STUDY:

1. Analysis of information is based on ratios the study is contained only to a quantitative analysis
2. The study period is limited to 5 years data at the company
3. The study is limited to low time duration 35 days.
4. Reliability on usage of secondary data is another limitation.
5. The complexity and confidentiality of various operations were also limitation to the study.

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RESEARCH METHODOLOGY
The sample method or plan is the procedure or way in which the sampling has been
done. As no project or research can be done taken into consideration the whole of the
population or universe, the concept of sampling is used. As per the concept of sampling, only
some sample is taken from the universe in order to find out the result. Simple random
sampling method is taken as the sampling method.
The relevant information necessary for the study is collected from two sources namely.
1. Primary data
2. Secondary data
1. Primary Data:

It consists of information disclosed by the financial heads of various authorities of the


respective departments of ―TIRUMALA COTTON & AGRO PRODUCTS PVT LTD‖.

2. Secondary Data:
It consists of information obtained from annual reports, Balance Sheets and other
financial statements, files, and some other important documents maintained by the
organization. In addition to other publications such as Hindu survey of India
industry and other journals.

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COMPANY PROFILE
Tirurnala Cotton and Agro Products Pvt Ltd(TCAP) is one of the major textile and agro
based producers in Andhra Pradesh. The group has started its operation in the year 1979 with
cotton trading and has expanded its operations in other areas such cotton vegetable oil
extraction, hydel power generation and textiles (yarn spinning).

The following operations are included in our portfolio. Cotton ginning, pressing and farming.
Cotton seed processing and vegetable oil extraction. Hydel power generation. Cotton and
synthetic yarn spinning started our business activity in 1979 with cotton trading today we are
proud to have an annual turnover of USDS25 million. We have vision to expand our
operations with annual turnover of USD$100 million in the next 7 years.

Tirumala groups are started by our visionary managing director Mr. Raghava Rao and
chairperson K. Hanutnantha Rao along with other family members. The groups has acquired
strong trust among the people and its employees throughout the years.

The report is prepared to deal with the financial, technical and commercial availability of
setting up of 120 TDP solvent plant and modernization of existing refinery by M/S
TIRUMALA COTTON AGRO PRODUCT PVT LTD,.THIMMAPURAM in the premises
adjacent to the existing oil mill located at 240c of THIMMAPURAM Village, Edlapadu
Mandal, Guntur (DT) Andhra Pradesh.

This project will substitute the present activity of carrying on the solvent extraction process
by the company in the leased premises of M/S THE ANDHRA SUGARS LTD.,
peripheral and also to manufacture rise brand oil(edible) presently. The company if is
having the following facilities at THIMMAPURAM.

OIL MILL:
a. CSP:

The oil mill is equipped with 250 mts per day of cotton seed processing plant which includes
seeds cleaners delenters, hullers, drum beaters, hull seed scperators and other ancillary
equipment.

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b. EXPELLERS:
The oil mills equipped with 6 expellers of 120 mts per day of cotton Seed meat crushing
capacity.
c. REFINERY:
The Oil Si is also equipped with 25 TDP edible grade cotton seed oil refinery
COTTON GINNING:
The company is carrying on the cotton ginning activity by tacking ginning mill on lease basis.
This activity of this group since 1976 the above activity is being carried in the above
premises situated adjacent to the national highway number 5 at Thimmapuram Village at
Chilakaluripet.,Edlapadu Mandal, Guntur (DT).,Andhra Pradesh.

The report deals with the project in the following section

SECTION1:
ABOUT THE PROMOTERS:

This section deals with the promoters of the financial ,background and their roll in the man
agent and administration of the project.

SECTION2:
ABOUT THE COMPANY:

This section deals with the promoters of the financial and background and their roll in the man
agent and administration of the company.

SECTION3:

ABOUT THE PRESENT ACTIVITY:

This section deals with the companies present activity, available facilities, Products,
manufactured and its marketing system.

ADUT THE PROJECT:


This section deals with the details of the project. Means finance, implementation schedule,
financial availability of project and assumption made

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SECTIONS:
ABOUT THE PROCESS:
Solvent extract in us basically a process of diffusion of solvent in to oil-bearing cells of the raw
material, resulting in a solution of the oil in solvent. In a nutshell, the extraction process consists
of treating the raw material with hexane and recovering the oil by distillation of the resulting
solution of oil in hexane called miscellany.

MANAGEMENT & ORGANIZATION STRUCTURE:


Sri K. Hanumantha Rao is chairman of the company and looking after the policy matters of the
company. Sri P. Ragava Rao is the managing director is looking after the overall management and
administration of the company. Sri L'.Koti Rao, director R.ViII looks after the new solvent plant
and maintenance of the oil mill.

Sri N.Lakshminarayana, director is looking after the oil mill. Sri B.Jawahar Babu, Sri
Ch.Basavaiah and Sri K.V.R. Koteswara Rao, Directors are looking after the cotton ginning.
Pressing & trading activities. Sri K.P.S Rama Rao, directors arc looking the finance and
administration. The company appointed suitable administrative, technical and Production staff
having sufficient experience in those lines.

The company incorporated on 14th September, 1990 with an object to carry on the cotton business
on large B-scale and also to establish oil mill and other activities as Per the objectives of
the company.

The Company was incorporated as private limited company with registration no:01_11739DT:14-
9-1990. With register of companies, Andhra Pradesh, Hyderabad. The promoter of the company
are Sri. Karanam Hanumantha Rao and Sri Peravali Raghava Rao. The following are the first
directors of the company.
SRI K. IIANUMANTHA RAO
SRI. P RAGHAVA RAO
SRI N. LAKSHMINARAYANA
SRI B. JAWAHAR BABU
SRI CH. BASAVAIAH
SRI K.V. RAMA KOTESWARA RAO 4 SRI K.P.S RAMA RAO
SRI P.KOTI RAO 4 SRI AMARCHAND

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The company authorized share capital initially is Rs.60.00 lakhs and subsequently same was
enhanced to Rs. I 00.001acks and after wards Rs.to lakhs by 2003. The Paid up capital of the
company Rs 60.25 lakhs. It's proposed to increase paid up the Capital the company up to Rs. 15.00
lakhs by 31-03-2004

Chairman
Managing Director
The Company is earring on the ginning activity by tasking ginning mill on lease basis. This
activity of this group since 1976 the above activity is being carried in the above premises situated
adjacent to the national highway number 5 at Thimmapuram village at Chilakaluripet,
Eddlapadu Mandal,Guntur (DT). Andhra Pradesh.

OIL MILL:
The oil mill was established process 50mts. Per day of cotton seed initially in the year 1992 with
the financial assistance in the form of term loans of Rs. 90.00 lakhs and 60.00 lakhs from
APIDC and APSFC respectively. These loans were sanctioned at 20% rate of interest.
The unit commenced commercial production on 24-11-1992 and subsequently the capacity has
been increased in stage to process 150Mts of cotton seed in 1994 with the financial assistant from
A.P state financial corporation in the form of team loan under good entrepreneurs scheme to the
tune of Rs. 66.30 lakhs a full fledged edible grade cotton seed oil refinery was established. This
loan was sanctioned at RS 14.5% rate under good entrepreneur scheme based on the track
record of the company and repayment of principle and promote payment of interest these
loans were closed in advanced by 1999 at present the company enjoying a short term working
capital loan from A.P State financial corporation and maintaining good track record with the
corporation.

The cotton seed is the raw material procured mainly from Guntur and other places in addition to
our own production. We also procured cotton seed from Tamilnadu during Ma). - September.
Cotton seed is available in bulk in local market during November -June in Andhra and May
— September in Tamilnadu.

THE FINISHED PRODUCTS ARE:


 Cotton seed delinters l' and 2" cut about 4-5%.
 Cotton seed hulls about 25-29%.
o Cotton seed oil(washed and refined)about 12-14%
 Cotton seed soap and acid oil about 1.5%.
 Cotton seed dcoiled cake about 50%.
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The linters will utilize by the bleached cotton suppliers, defense people, and exporters and also
for domestic purpose like beds and cots. This material supplied in fully pressed bale for bulk consumers
and in North India. This material is supplied in bags and transported mainly by railway wagons to North
India. The cotton seed oil is mainly supplied to those units who are having refiner y facilities mainly in
Tamilnadu and Hyderabad.

ABOUT THE PROCESS:


SOLVENT:
Extraction is basically a process of diffusion of solvent into oil-bearing sells of the raw material,
resulting solution of the oil in solvent in a nut shell, the extraction process consist of treating the raw
material with hexane and recovering the by distillation of the smelting solution of oil in hexane called
miscellany.

The hexane absorbed in the material is recovered is reused for extraction. The hexane absorbed in the
material is recovered is reused for extraction. The low boiling point of hexane (67c) and the solubility
of oils and fats in it are the properties exploited in the process. The entire extraction process can be
divided into the following stages.
• Preparation of raw material
• Process of extraction
• De-solvension of extracted material
• Distillation of miscellany
• Solvent recovery by absorption
• Meal finishing and bagging

AVAILABALITY OF INFRASTRUCTURE:
1.POWER:

The required power is available from existing the supply grid from the 33 km sub-stantions
at Ganapavaram. Since the proposed unit is adjacent to the existing premises a separate line
(about llan) will be laid the existing supply line. The power requirement is about 180 KVA for
which the AP Transco has already agreed.

2. WATER:
The required water is available internally from the available bore wells. The water is
available bulk and suitable for domestic and industrial purpose

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3. MAN POWER:
The new unit is required around 45 personal in all which includes supervises, skilled, semi
skilled labour in addition to the technicians. The additional man power is available in and
around the unit has NO. Similar units are working since last 15years. In addition to this there will
be an increased in parallel equalization of the existing technicians in both the proposed solvent
plant and existing oil mill with modernized refinery.

4. FUEL•
The fuel required for this proposed solvent plant is Rice husk. The stunc is available in and around the local
areas as there is no. of Rice mills in Guntur and Prakasam districts. As the present oil mill also consumes
the husk for the boiler the suppliers of rice husk can supply the required quality to this unit also as such no
problem in getting required quantity of the husk.

•EFFLUENT TREATMENT:
Since the basic product is Agro based there is no problem to treat the effluent that are coining in this
process. The existing system of treatment of effluent in the oil mill is sullietent to treat the effluent coming
out of this process.

The AP pollution control board has already agreed for this system of treating the effluent.
BASIC INFORMATION
Product/Service (We Sell) Cotton Seed l' Cut, Cotton seed 2"1 Cut,
Cotton DOC, Cotton Hulls
Number of Employees 11-50 People
Main Market Southeast Asia
Total Annual Sales Volume Export Percentage
Total Annual Purchases Volume Factory Size (Sq.mcters)
Factory Location UA$5 Million — US$10 Million
I 1%-20%
US$5 Million — UA$10 Million
10,000-30,000 square meters Thimmapuram
QA/AC
Number of Production Lines
Number of R&D Staff
In House 5-10 People

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Today the group is more diversified in its activities. The current portfolio of activity includes:
•Cotton Fiber Trading
•Cotton Ginning and Pressing
•Cotton Seed Vegetable Oil extraction with double refinery and solvent extraction
•Captive Hydel power generation
•Yarn spinning

REPORT OF INFORMATION:
HISTORY OF TIRUMALA COTTON & AGRO PRODUCTS PVT
Tirumala Cotton and Agro Products Pvt Ltd started its business activity in 1979 with cotton
trading and today the company an annual turnover of USD$25 Million the vision to expand its
operation with annual turnover of USD$ Million in the next 7 years.
Tirumala group is started by its visionary managing directors Mr. P.Ragava Rao and Chairperson
K Hanumantha Rao along with other family members the group has acquired strong trust among
the people and its employees thought out the years. Today the group is more diversified in this
activities the current portfolios of activities include:
•Cotton Fiber Trading
•Cotton Ginning and Pressing
•Cotton seed vegetable oil extraction with double refinery and solvent extraction
•Captive hydel power generation
•Yarn spinning
Throughout these years the company has build a strong report and trust in its customer base. This
helps type company to maintain long - term relationship with its customer.
TEAM COMPOSITION
We have integrated a team of highly qualified professionals that holds immense
knowledge of their respective domains. Our personnel have shown splendid commitment and
dedication towards accomplishing the goals & targets of our firm. These professionals are
competent enough to work in compliance with the changing trends of the market and demands of
the customer. Our dynamic workforce comprises the following members:
1. Engineers
2. Technicians
3. Procuring executives
4•Quality checkers
5. Office administrators & manage

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INDUSTRY PROFILE
History of cotton seed:
In our country India more than 70% of the total population was depend on
agriculture. So, there is a much demand for an Agro products Most of the people were depend on
cotton also.
For this interest the Indian industrial development of cotton seed processing was first at
Navasri, Surat (DT), and Rajasthan, second at Punjab and third at Hyderabad (A.P) in 1937 by Sri.
Govindram Sakseria (125 tones/day) after this heavy production India now occupies the fourth
place among the cotton seed production countries in the world.
Many of the people depend on this cotton seed agriculture. It is a seasonal crop. The rate
of these cotton/cotton seeds was depending up on the various factors relating to the farmer. That is
price of seed, rate of fertilizers and rain etc. This is history of the cottonseed. Now there is a
heavy demand for this cottonseed because lots of products were made with cotton or cottonseed.

AGRO INDUSTRIES
The word "Agro Industries" broadly means industries manufacturing inputs for
-
agriculture or the industries processing agricultural outputs. Agencies supporting agriculture by
designing and manufacturing inputs are termed as "Agro Industries" and those supporting by
agricultural products are termed as "Agro based industries". Modem Agro industries manufacture
chemicals and supply agricultural input either on each basis or realize the value in installments.
According to planning commission "Any enterprise producing and supplying chemicals
inputs to agriculture is an Agro based industry". Due to rapid changes in technology. The
out put of agriculture. Agro industries and Agro based industries has increased in the same
manner. We found the improvement not only in output of cotton and titles, but also in the whole
range of plantations like tea, coffee, groundnuts, cash nut and course juts.
Generally most of the industries use agriculture output as basic raw materials. But this
concept defers in case of Agro industries. It is conformed to those industries that are engaged in
processing the agriculture product.
Since Agro industries directly influence the cost structure of forming Agro based
industries. They have their impact on the receipts of the farmer Agro industries also serve as a
mean for providing better employment opportunities to the labour during off-season.

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Background
India is one of the world‘s leading producers of oil seeds and oil, contribution 9.3% of
world seeds production. India produces largest number of commercial varieties of oil seeds over
nearly 28.4n million hectares of land. The major edible oils produced in India are ground nut,
rage seed, Soya, cottonseed sesames casters, sunflower, etc., Groundnut is the most widely
consumed and traded edible oil India second largest producer of groundnut, next only to china.
But groundnut being primarily a kharif crop is vulnerable to vagaries of monsoon and also
activities in 1966, the government set-up a technology mission on oil seeds, to increase
production of other oil and to reduce the dependence on oil imports. The strategy followed was to
increase productivity with better firm inputs and practices.
Increase followed under oilseed crop. Encourage winter oil seed crop. This led to a sharp
increase in oil seed production driven mainly by rape seed, sunflower castors and Soya. Oil seed
production jumped from 6% million ton in themed 1980 to around 22 million currently India is
today world‘s third largest producers of rape seed and Cotton seeds.
The primary business of the Company is processing of Oil-Seeds and Refining of Crude
Oil for Edible use. The Company also produces oil meal, food products from soya and value-
added products from downstream processing. The size of Indian edible oil and oil seed industry is
estimated to be around Rs. 90,000 core (USD 19 billion).

The domestic edible oil consumption has been steadily growing and is estimated to be over
15 million MT in the current year with Palm and soya oil, in which our Company has a dominant
presence, contributing over 60% volume. In view of the demand- supply gap, over 55% of the
domestic edible oil consumption is met by imports, with Palm and Soya accounting for close to
90%of the imported volume. The oil meal is essentially consumed as poultry, fish and cattle feed,
a substantial part of soya meal is exported to the Asian region even though the domestic demand
is growing.

The Indian edible oil sector is, by and large, a price conscious and price sensitive market,
as a substantial part of consumption takes place at the bottom end of the pyramid. The propensity
to consume is correlated with the changes in prices of edible oil and the quantum of disposable
income. With rising incomes, food remains an important item of expenditure to warrant large
share of incremental spending. Edible oil is and will remain an important constituent of dietary
plan despite varied eating habits and varied methods of cooking across the different states/regions
in the country. Keeping in view the steady rate of GDP growth and Income growth expected in
India, it is estimated that the domestic demand for edible oil in India, will also consequently rise.
According to the industry estimates, the consumption of edible oil will increase from the current

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level of 15 million MT to over 20 million MT by the year 2015.
The recent widespread monsoon with reasonably equitable distribution of rainfall across
the country has improved prospects of better agricultural production in India than the previous
year. The current indications augur well for the agricultural sector in general and solvent
extraction industry in particular in the current year. With the improvement in the price trend, it is
believed that operations of the crushing industry will be better than the previous year.
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1. India one of world's leading producers of oil seeds (9.3 /O) and oil
2. Technology Mission on oilseeds set up in 1996
3. Oilseeds have support price mechanisms
4. India second largest importer of edible oils (2 million MT)
5. Vanaspathi — a substitute for ghee. formed by hydrogenation of crude vegetable oil.
6. Free pricing in vanaspathi since 1989: delicensed in 1992
7. Oil season November t o October
Several Agro and Edible Industries and the Growth Rate of Those Industries Are:

 Sanwaria Agro
 Ruchi Soya
 KS Oils
 Gokul Refoils
 Agro Tech Foods
 Ruchinfra
 Guj Amb Exports
 Murali
 Anik Industries
 Raj Oil Mills
 Coromandel Agro
The details of such industries which are competitors of capol along with it is as follows:
Sanwaria agro oils limited

Sanwaria Agro Oils Ltd. (SAOL) is an integrated agro food processor engaged in the
business of manufacturing soya oil and soya cake. SAOL is a solvent extractor and manufacturer
of soya refined oil and de-oiled cake. In addition to normal soy meal, it also produces specialized
high protein soybean meal. As of March 31, 2010, SAOL exported about 65% of production of
soy meal. It has three brands, such as NARMADA, SULABH and SANWARIA in its product
basket. As of March 31, 2010, it focused on two segments: Solvent Extraction & Refining, which
involved processing, extraction and refining of soya seed and soya-refined oil and trading, and

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Power Generation. During the fiscal year ended March 31, 2010, its soya seeds processed stood
at 219,662 metric tons and production of refined oil stood at 27,701 metric tons. As of March 31,
2010, it had wind turbine generators of 8.4 megawatts capacity out of which 1.8 megawatts at
Tenkasi in Tamilnadu and 6.6 megawatts at Dewas in Madhya Pradesh
Ruchi soya

Ruchi soya is one of the largest player in India's branded edible oil category
accounting for 20 % of the domestic market share with over 7000 TPD of refining and over 9560
TPD of crushing capacities .It is the largest Company in the edible oil & Oilseed Industry
with a distribution network of around 5,83,000 retail outlets. Being the first exporter of Soya bean
meal from India, it has grown to become a multi-million US Dollar company with two of strongest
brands, Nutrela and Ruchi Gold .It has to its credit Highest Importer & Exporter of Oil Meals for
2006 awarded by GLOBEOIL India. During the current year, oil seed acreage has shifted to grains
in the world and the bulk decline occurred in US and China bean production. The total production
of 5 major oil seeds is expected to decline in 2007 -08 over last year by 4 %. Of these crops, the
world Soya production is likely to go down from 236 million Tons in 2006-07 to 221million Tons
in 2007-08 (a fall of 6.4%). The Gross Capital Formation (GCF) in agriculture as a proportion of
GDP in the agriculture sector has improved to 12.5% for FY 06-07 from a low of 10.2% in 03-04.
With a view to give a boost to the farming sector which is considered as a quintessential to the
growth of the Indian economy the target for GCF has been raised to 16% during the Eleventh plan
to achieve a growth rate of 4% from the current growth rate of 1.8% with a target GDP growth
rate of
10%. In a move to curb the rising inflation which has raised to the highest the Government of
India has scrapped the import duty on crude soybean and palm oil, and lowered the levy on
refined edible oil to 7.5 percent on March 31'08. India, imports almost half the vegetable oil it
needs from overseas.
GOKUL REFOILS
Gokul Refoils and Solvent (GRSL) were incorporated in 1992 at Sidhpur. The company is
engaged in manufacturing of refining vegetable oils including seed procurement, processing,
solvent extraction and marketing of edible oils. GRSL commenced its export activity in 1995
through its associate concern Gokul Overseas. The company has a presence in the markets of
South K
Total Income - Rs. 28465.734 Million (year ending Mar 2010) Net Profit -
Rs. 425.518 Million ( year ending Mar 2010)

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CORAMANDAL AGRO INDUSTRIES
The domestic oil seed sector is currently estimated to be valued at 400 billion exports and
imports of oilseeds are around Rs.80 billion oil, production during the 2003-04 oil seasons
th
was 7 million ton. In the mid of 20 century India had achieved near self-sufficiency in edible
oil production. However, during the second largest import to edible oil, with imports
crossing 2 million ton in 2004-05.
Market size and Growth

Out of the total oil consumption of 9 million ton per annum refined oil accounts for
only around 2 million ton. 70% of refined oil is sold in loose unbranded form. Sunflower
groundnuts are popular throughout the country rape seed has high penetration in the North
and East edible oil consumption has been raising at round 5-6% per annum. However oil
seed output growth has been stagnant during their last 5-6 years resulting in higher imports of
edible oil nut widening deficit domestic production of edible oil was 7 million ton in 1991-92 to
2.1 Million ton in 1997-98 are expected to be around 2.20-2.5 million ton.
Edible Oil Production Import and Consumption Trend (million ton) of Capol:

Year Oil Seed Domestic Oil Imports of Total Oil


Production Availability Edible oil Availability
1987-88 12.7 4.4 1.8 6.3
1988-89 18.0 5.9 0.4 6.3
1989-90 16.9 5.9 0.6 6.5
1990-91 18.6 6.4 0.1 6.6
1991-92 18.6 6.6 0.2 6.8
1992-93 20.4 6.9 0.1 7.0
1993-94 21.5 7.1 0.1 7.3
1994-95 21.3 7.3 0.8 8.2
1995-96 22.4 7.3 1.3 8.5
1996-97 25.0 7.4 1.8 9.2

Edible Oil Updates (May2009)


Edible Oil imports up by 5% in first 8 months of current oil season edible oil imports in
the first 8 months of 2008-2009 oil season (November 2008-May2009) is reported at 2.56
million tons against 2.45 million tons for the same period.

The first 8 months of 2008-2009, the import of RBD Palmolein had reached at 0.46
million tons of same period of last year i.e., by 10% Crude palm oil imports declined
20
MARKET: Industry Structure
1. Highly fragmented industry.
2. Over 600 oil extraction units. 166 vanaspathi manufacturing units.
3. Only 10 edible oil units and 8 vanaspathi units have national reach.
4. Over 50%of the units sick or underutilized due to surplus capacity.
5. Idle capacities among these units due to shortage in feedstock supply.
6. Major oil brands Sun drop. Dhara. Saffola, Sweek.ar. Postman.
7. Vanaspathi brands Dalda Rath.
TRENDSINOUTPUT
Market Size:
Edible o i l s a n d v a n a s p a t h i m a r k e t s 9 . 6 million M T
Oil s m ar ket growing a t 8.7 CAGR
Vanaspathi market stagnating at around I million M
Capacities:
Installed Capacity and Production
Table No:2. 2
Vanaspathi Edible Oils

Capacity 2,720,000 30,368,000

Production 990,534 6,250,000

Utilization 36% 21%

Installed capacities and Production - in MT per Year


Key Inputs, Technology Inputs.
Vanaspathi:
Minor (solvent extracted) edible oils – Sunflower oil Soybean oil, Rice bran oil.
Edible Oils
Oilseeds such as Groundnut, Sesame, Mustaid Sunflower and oil cakes and
brand. Raw materials comprises 70% of the production cost Oilseeds the l amest cash crop
Poor productivity y - 873 kg/hect are (global average of 2000 kg/hectare}. Though
oilseeds have 1.4 5% share in gross cropped area, only 25 of it is under assured
irrigation. Technology Refind technology freely available indigent.

21
Characteristics:

1. Oils primarily a commodity market price sensitive.

2. Effective distribution chain through a complex network of C & ai2ents,

3. Wholesalers/stockiest & retailers (kirana shops, supermarkets).


4. Oil sold in bulk (tin, I IDPE containers) to institutions: In retails packs (PET
bottles, cans, jars. pouches) to small customers seasonal demand for oils &
vanaspathi September to November (peak season).
Regulation: Under the Edible Oils Packaging (Regulation) Order. I998edible oils cannot
-
be sold loose' but can be sold only in packed form Oil consumption - North is largest
market followed by South, West & East Zones.
Imports and Prices:
Oils and yanaspathi substitutes can he fleck imported under OGL
Import duties : 15% basic +10% surcharge (Oil ); basic (Oilseeds)
Large scale imports of oils and \ yanaspathi substitutes primarily to check price rise and
meet supply shortages
Imports during 1998-1999 – 2.38 Million
MT Estimaleci imports 1999-2000 – 3 Million MT
Prices of edible oils : RBD Palmolein Rs.23,500/M T (Wholesale, ex-Mumbai)
.
World market :$4 20/MT (Rs. 18,060/MT) c.i.f. – July‗99
. ‗
Process of vanaspathi : Rs. 647 15 1..g (wholesale. ex -Calcutta) 10 may 9
Features:
1. Macroeconomic factors: Population growth, per capita income.
purchasing power, oilseeds crop
2 . Influence of branded products 'health message
3. Growing preference for convenience foods
4. Raw material sourcing: focus on improving yields, getting better quality
oilseeds, ensuring, regular supplies • through symbiotic relationship with farmer.
Key Success Factors:
Branding essential for success ( Vanaspathi- Dalda Oils -Sun drop) Better
distribution network to improve reach. Efficiency in operation to become price competent
and withstand overseas competition. Proposed Future trading in edible oils will help curtail
price volatility and lend knowledge — based assistance to farmers of eliminate unofficial
22
markets.
In the next five years, the market for Future - edible oils will grow by 8% to 12.65
million MT vanaspathi will grow to l.5 million MT. Free imports. low import duties and
slump in global prices - lead to 'dumping'.
Domestic industries of edible oils and vanaspathi affected – low realization and
idle capacities in oil and vanaspathi industries Businesses-Production slippages have also
forced imports Concern Excessive (cheap) imports of oilseeds led to unremunerated
prices, locally Hence farmers have shifted to other cash crops increasing health
awareness impact or oils and vanaspathi usage in individual's cholesterol levels.

This industry is a high volume medium growth sector characterized by excess idle
capacities owing to in efficient operations. Imports have been influencing prospects.
Leading to domestic industry crisis.

23
THEORETICAL FRAMEWORK
RATIO ANALYSIS:
Introduction:

Financial Ratios are used in the evaluation of the financial condition and
profitability of a company. The ratios are calculated from the financial information
provided in the balance sheet and income statements.

RATIO ANALYSIS
Ratio Analysis is one of the techniques of financial analysis where ratios are
used as a yardstick for evaluating the financial condition and performance of a firm.
Analysis and interpretation of various Tirumala Cotton & Agro Products counting ratios
gives a skilled and experienced analyst a better understanding of the financial condition
and performance of the firm.
MEANING AND DEFINITION:-
Definition: A ratio is a simple arithmetic expression of the relationship of one number
to
Ratio analysis is defined as, ―The systematic use of ratios to interpret the financial
statements so that the strengths and weaknesses of the firm as well as its historical
performance and current financial condition can be determined. .
Meaning of Ratio:- A ratio is simple arithmetical expression of the relationship of
one number to another. It may be defined as the indicated quotient of two mathematical
expressions.
According to Accountant‘s Handbook by Wixon, Kell and Bedford, ―a ratio is
an expression of the quantitative relationship between two numbers‖.
Ratio Analysis:- Ratio analysis is the process of determining and presenting the
relationship of items and group of items in the statements. According to Batty J.
Management Accounting
―Ratio can assist management in its basic functions of forecasting, planning coordination,
control and communication‖.
It is helpful to know about the liquidity, solvency, capital structure and profitability
of an organization. It is helpful tool to aid in applying judgment, otherwise complex
situations.

Ratio analysis can represent following three methods. Ratio may be expressed in the
24
following three ways:

1. Pure Ratio or Simple Ratio: - It is expressed by the simple division of one


number by another. For example, if the current assets of a business are Rs. 200000
and its current liabilities are Rs. 100000, the ratio of ‗Current assets to current
liabilities‘ will be 2:1.
2. ‘Rate’ or ‘So Many Times :- In this type, it is calculated how many times a
figure is, in comparison to another figure. For example , if a firm‘s credit sales
during the year are Rs. 200000 and its debtors at the end of the year are Rs. 40000
, its Debtors Turnover Ratio is 200000/40000 = 5 times. It shows that the credit
sales are 5 times in comparison to debtors.
3. Percentage: - In this type, the relation between two figures is expressed
in hundredth. For example, if a firm‘s capital is Rs.1000000 and its profit is
Rs.200000 the ratio of profit capital, in term of percentage, is
200000/1000000*100 = 20%

ADVANTAGE OF RATIO ANALYSIS


1. Helpful in analysis of Financial Statements.
2. Helpful in comparative Study.
3. Helpful in locating the weak spots of the business.
4. Helpful in Forecasting.
5. Estimate about the trend of the business.
6. Fixation of ideal Standards.
7. Effective Control.
8. Study of Financial Soundness.

IMPORTANCE OR SIGNIFICANCE OF RATIO ANALYSIS:


The ratio analysis is one of the most powerful tools of financial analysis. It is used
as a device to analyze and interprets the financial health of enterprise. Just like a doctor
examines his patient by recording his body temperature, blood pressure etc. before
making his conclusion regarding the illness and before giving his treatment, a financial
analyst analyses the financial statements with various tools of analysis before commenting
upon the financial health or weaknesses of an enterprise. Following are the uses of ratio
analysis:
 Liquidity position
25
 Long term solvency

 Operating efficiency

 Overall profitability

 Inter firm comparison

 Trend analysis.

Liquidity Position

With the help of ratio analysis conclusions can be drawn regarding


the liquidity position of a firm. It would be Heritage Bike if it is able to meet its
current obligations when they become due. A firm can be said to have the ability to
meet its short term liabilities if it has sufficient liquid funds to pay the interest on its short
maturing debt usually within a year as well as to repay the principal. This ability is
reflected in the liquidity ratios of a firm. The liquidity ratios are particularly useful in
credit analysis by banks and other suppliers of short term loans.
Long term solvency:
Ratio analysis is equally useful for assessing the long term financial
viability of a firm. This aspect of the financial position of a borrower is of concern to the
long term creditors, security analysts and the present and potential owners of a business.
The long term solvency is measured by the leverage/capital structure and profitability
ratios which focus on earning power and operating efficiency. Ratio analysis reveals the
strengths and weakness of a firm in this respect.
Operating efficiency
Yet another dimension of the usefulness of the ratio analysis, relevant from
the viewpoint of management, is that it throws light on the degree of efficiency in
the management and utilization of its assets. The various Heitage Milk ratios measure
this kind of operational efficiency. In Heitage Bike, the solvency of a firm is, in the
ultimate analysis, dependent upon the sales revenues generated by the use of its assets
total as well as its components.
Overall profitability:
Unlike the outside parties which are interested in one aspect of the
financial position of a firm, the management is constantly concerned about the overall

26
profitability of the enterprise. That is, they are concerned about the ability of the firm to
meet its short term as well as long term obligations to its creditors, to ensure a
reasonable return to its owners and secure optimum utilization of the assets of the firm.
This is possible if an integrated view is taken and all the ratios are considered together.
Inter- firm comparison
Ratio analysis not only throws light on the financial position of a firm but
also serves as a stepping stone to remedial measures. This is made possible due to inter-
firm comparison and comparison with industry averages. A single figure of a particular
ratio is meaningless unless it is related to some standard or norm. One of the popular
techniques is to compare the ratios of a firm with the industry average. It should be
reasonably expected that the performance of a firm should be in broad conformity with
that of the industry to which it belongs. An inter-firm comparison would demonstrate the
firm‘s position vis-à-vis its competitors.
Trend Analysis
Finally, ratio analysis enables a firm to take the time dimension into
Heitage Milk count. In other words, whether the financial position of a firm is improving
or deteriorating over the years. This is made possible by the use of trend analysis.
The significance of a trend analysis of ratios lies in the Heitage Milk that the analysts can
know the direction of movement, that is, whether the movement is favorable or
unfavorable. For example, the ratio may be low as compared to the norm but the trend
may be upward. On
the other hand, though the present level may be Heitage Milk but the trend may
be a declining one.

Limitations:
The following are the limitations of ratio analysis:
 It is always a challenging job to find an adequate standard. The conclusions
drawn from the ratios can be no better than the standards against which they are
compared.
 When the two companies are of substantially different size, age and
diversified products,, comparison between them will be more difficult.
 A change in price level can seriously affect the validity of comparisons of
ratios computed for different time periods and particularly in case of ratios whose
numerator and denominator are expressed in different kinds of rupees.
27
 Comparisons are also made difficult due to differences of the terms like gross
profit, operating profit, net profit etc.
 If companies resort to ‗window dressing‘, outsiders cannot look into the facts
and affect the validity of comparison.
 Financial statements are based upon part performance and part events which can
only be guides to the extent they can reasonably be considered as dues to the
future.
 Ratios do not provide a definite answer to financial problems. There is always
the question of judgment as to what significance should be given to the figures.
Thus, one must rely upon one‘s own good sense in selecting and evaluating the
ratios.
USERS OF RATIOS:
These ratios are used by different people and organizations based upon their specific need
and convenience.
1. Trade creditors use ratios in measuring the firm‘s liquidity position while granting short-
term
loans where as bondholders analyze the firm‘s capital structure as their claims are long-
term.
2. Investors are concerned primarily with present and expected future earnings and its
stability.
3. Management also employs financial analysis for the purpose of internal control.
Government regulatory agencies are concerned with the rate of return a company earns on
its assets as well as the proportion of non-equity funds employed in the business.
TYPES OF RATIOS:
Broadly speaking the operations and financial position of a firm can be described By studying
a short term and long term liquidity position, profitability and its operational activities.
Therefore ratios can be classified in to following categories.
1. Liquidity Ratios
2. Capital Structure Ratios
3. Activity Ratios
4. Profitability Ratios.

1.Liquidity Ratios:
Conclusions regarding liquidity position of a firm can be drawn with the help of liquidity
ratio analysis. The liquidity position of a firm would be satisfactory if it is able to meet its
short-term or current obligations when they become due. A firm can be said to have the ability

28
to meet its short- term liabilities if it has sufficient liquid fund to pay the interest on its short-
term maturing debt usually within a year as will as to pay the principal. This ability is
reflected in the liquidity ratios of a firm.
The liquidity ratios are particularly useful in credit analysis by banks and other suppliers of
short- term loans. The important liquidity ratios are
1. Current ratio
2. Quick ratio
3. Absolute liquidity ratio

(a) Current Ratio:-

Current Ratio is also called as working capital ratio. It establishes relationship between
total current assets and current liabilities. The current assets of a firm represent those assets
this can be converted into cash within a short period of time. The current ratio is a
measure of the Firm‘s short time solvency.

Current Assets

Current Ratio = -----------------------------


Current Liabilities

(b) Quick Ratio:-

Quick Ratio is also called as acid test ratio or liquid ratio. It is concerned with Relationship
between liquid assets and liquid liabilities. An assets is liquid it can be converted into cash
Immediately on reasonable soon without loss of value. Cash is the most liquid assets. Other assets
that a Are considered to be relatively liquid and included in quick assets are debtors and bills
receivable and Marketable securities.
Quick Assets

Quick Ratio = ---------------------------


Current Liabilities

(c) Absolute Liquid Ratio:-


This Ratio establishes a relationship between absolute liquid assets to quick Liabilities. Which
cannot included bills receivable, sundry debtors and marketable securities.

29
Absolute Liquid Assets

Absolute Liquid Ratio = ----------------------------------


Quick Liability
2. Capital Structure Ratios:

Conclusions regarding the long-term solvency or long-term financial Viability of a firm can also
be accessed through ratio analysis.
This aspect of the financial position of a borrower is concerned with long-term creditors, security
analysts, present and potential owners of a business.

The long-term solvency is measured by the leverage / capital structure and profitability ratios,
which focus on earning power and operating efficiency. Ratio analysis reveals the firm‘s strengths
and weaknesses in this aspect. The leverage ratios will indicate whether a firm has a reasonable
proportion of various sources of finance or if it is heavily loaded with debt in which case its
solvency is exposed to serious strain. The important leverage ratios are:

a. Debt – Equity Ratio


b. Debt Ratio
c. Fixed Assets Ratio
d. Proprietary Ratio

Uses of Leverage Ratios:


a. To identify sources of funds
b. To measure financing risk
c. To forecast borrowing prospects.

(a) Debt – Equity Ratio


This Ratio indicates proportion of debts fund in relationship to equity. Debt ratio Shows the
relative contribution of creditors and owners debt equity ratio is measure of the long term
Financial solvency of a firm. This ratio indicated the relative proportion of debt and equity in
financing the assets of the firm.

Debt

Debt Equity Ratio = ------------


30
Equity

31
(b) Debt Ratio:-
This Ratio indicates proportion of owners funds to total fund invested in the Business. Debt ratio is
used to analyses the long term solvency of a firm. It helps in knowing the Proportion of the interest
bearing debt in the capital structure. Debt ratio is computed by dividing total Debt by capital
employed or net assets.

Owner‘s Fund

Owners Ratio = --------------------


Total Equity

(c) Proprietary Ratio:-


It establishes the relationship between the proprietary funds and total assets. The total share
holder‘s funds is compared with the total tangible assets of the company. The ratio indicates the
general financial strength of the concern.

Proprietary Funds

Proprietary Ratio = -------------------------


Total Assets

3. Activity Ratios
These are also called as turnover ratios or asset management ratios. The other dimension
of the use of ratio analysis from the viewpoint of management is that, it throws light on the degree of
operating efficiency in the management and utilization of its assets. The various activity ratios
measure this kind of operational efficiency. These are based on the relationship between the levels of
activity and the level of various assets. In fact, the solvency of a firm is in the ultimate analysis,
dependent upon the sales revenues general by the use of the assets total as well as its component.
The important activity ratios are:
a. Inventory Turnover Ratio
b. Debtor‘s Turnover Ratio
c. Creditors Turnover Ratio
d. Total assets Turnover Ratio e.
Fixed Assets Turnover Ratio
f. Working Capital Turnover Ratio

(a) Inventory Turnover Ratio:-


32
Inventory turnover ratio indicates the efficiency of the firm in producing and selling its product. It is
called by dividing net sales by average stock. The average stock is the average of opening and closing
balances of stock.

Net Sales

Inventory Turnover Ratio = -------------------------


Average Stock

(b) Debtors Turnover Ratio:-


It is also called as receivables turnover ratio. The purpose of this ratio is to measure the
liquidity of the receivables or to find out the period over which receivables remain Uncollected.
Total Net Sales

Debtors Turnover Ratio = -----------------------


Average Net Debtors
(c) Creditors Turnover Ratio:-
This Ratio shows the velocity of debt payment by the firm.

Net Credit Purchases

Creditors Turnover Ratio = ----------------------------------


Average Creditors
(d) Total Assets Turnover Ratio:-
Total assets turnover measure the turnover of the all the company‘s assets and is Calculated by

total assets average.

Net Sales

Total Assets Turnover Ratio = ---------------------- Total


Assets
(e) Fixed Assets Turnover Ratio:-
This Ratio establishes the relationship between fixed assets and sales. This Ratio is a measure of ratio
is a measure of how well the firm was its long term (fixed) assets and shows how many rupees of
sales are supported one rupee of fixed assets.

Sales

33
Fixed assets Turnover Ratio = ---------------------------
Fixed Assets
4.Profitability Ratios:
The overall profitability and effectiveness of the firm cane assessed with the help of
profitability ratios. Unlike the outside parties which are interested in one aspect of the financial
position of a firm, the management is constantly concerned about the overall profitability of the
enterprise.

The parties are concerned about the ability of the firm to meet its short-term as well as long-term
obligations to its creditors in order to ensure a reasonable return to its owners and secure optimum
utilizations of the assets of the firm. This is possible if an integrated view is taken and all the
ratios are considered together.

These reflect the final result of business operations. The profitability ratios would Reveal
whether the firm is able to offer adequate return to its owners in consistent with the risk involved.
The important profitability ratios are:
a. Gross Profit, Ratio b.
Net Profit Ratio,
c. Operating Expenses
(a) Gross Profit Ratio:-
This Ratio is measure of general profitability of the business. This ratio helps to find the
gross margin of the company over its sales. Grass Profit is the differences between net sales and
cost of goods sold. The gross profit margin reflects the efficiency with which the management
Producers each unit of product. This ratio indicates the average spread between the cost of goods sold
and sales revenue.
Gross Profit

Gross Profit Ratio = ----------------- * 100

Sales

(b) Net Profit Ratio:-


This Ratio is widely used as a measure of overall profitability.Net profit margin
establishes a relationship between net profit and sales. It indicates managements efficiency in
Manufacturing and administrations and selling the product. This ratio is the overall measure of the
firms ability to turn each rupee sales in to net profit
Net Profit

34
Net Profit Ratio = --------------- * 100
Sales
(C).Operating Expenses Ratio:-

The operating expenses ratio depending the office and administrative and
selling And distribution expenses.

Operating expenses
Operating Expenses ratio = ------------------
Sales

35
DATA ANALYSIS AND INTERPRETATION
CURRENT RATIO:

Current Ratio is also called as working capital ratio. It establishes relationship Between total
current assets and current liabilities.

FORMULA:

Current Assets

Current Ratio = ------------------------

Current Liabilities

TABLE 5.1.1

Current Ratio of Tirumala Cotton & Agro Products Company Pvt Ltd

Year Current assets Current liabilities %

2012-2013 62,56,87,210 60,73,95,760 1.03

2013-2014 70,06,27,793 68,03,03,145 1.02

2014-2015 81,95,53,371 90,68,53,678 0.90

2015-2016 108,49,44,705 107,98,09,650 1.004

2016-2017 81,75,71,334 73,05,94,642 1.12

36
CHART 5.1.1

Current ratio of Tirumala Cotton & Agro Products Pvt. Ltd

37
Current Ratio Of Tirumala Cotton & Agro
Products
1.2 1.12
1.03 1.02 1.004
1 0.9

0.8

0.6
%
0.4

0.2

0
2012-13 2013-14 2014-15 2015-16 2016-17

Interpretation:

The above table shows the current ratio of Tirumala Cotton and Agro Products Pvt Ltd

for the successful five years i.e ., 2012-2013, to 2016-2017. From the above graph it is understood

that the current ratio of the company in the year 2012-13 was 1.03, and in the next year i.e., in the

year 2013-14 it has decreased to 0.01 In the year 2014-15 it has decreased 0.12 and in the next year

2015-16 it has again increase 0.104 and in the next year 2016-17 it has again increases 0.116.

In all 5 years of the project period the company current ratio could not reach the standard.

38
QUICK RATIO:

Quick Ratio is also called as acid test ratio or liquid ratio. It is concerned with
Relationship between liquid assets and liquid liabilities.

This ratio is the same as current ratio, except that it excludes inventories presumably
the least liquid portion of current assets from the numerator. The ratio concentrates on cash,
marketable securities, and receivable in relation to current obligations and thus provides a more
penetrating measure of liquidating than does current ratio.

FORMULA:

Quick Assets

Quick Ratio = ------------------------

Current liabilities

TABLE 5.1.2

Quick Ratio of Tirumala Cotton & Agro Products Pvt. Ltd

Year Quick assets Current liabilities %

2012-2013 37,30,68,405 60,73,95,760 0.61

2013-2014 29,36,24,064 68,03,03,145 0.43

2014-2015 36,54,81,016 90,68,53,678 0.40

2015-2016 56,36,29,731 107,98,09,650 0.52

2016-2017 39,72,10,835 73,05,94,642 0.54


CHART: 5.1.2

Quick Ratio of Tirumala Cotton & Agro Products Pvt Ltd

Quick Ratio Of Tirumala Cotton & Agro


Products Pvt. Ltd
0.7

0.6

0.5

0.4

0.3 0.61 %
0.52 0.54
0.2 0.43 0.4

0.1

0
2012-13 2013-14 2014-15 2015-16 2016-17

Interpretation:
The above table shows the Quick ratio of Tirumala Cotton and Agro Products Pvt Ltd
for the successful five years i.e ., 2012-2013 to 2016- 2017.

From the above graph it is understood that the Quick ratio of the company in the year
2012-13 was 0.61, and in the next year it is deceased by 0.18 in the succeeding year it is
further decreased by 0.03 and in the next year it is increased by 0.12% and in the year
2016-17 it is increased by 0.02%.

In all 5 years of the project period the company Quick ratio could not reach the standard.
CASH RATIO:

In order to analyze the cash management of regency ceramies limited the


following ratio are calculated cash is a highly liquid asset and to ascertain the cash
position or liquidity of the firm the cash ratio is calculated.

FORMULA:

Cash and bank balance


Cash ratio = ---------------------------
Current liabilities

TABLE 5.1.3

Cash Ratio of Tirumala Cotton & Agro Products Pvt. Ltd

Year Cash Current liabilities %

2012-2013 6,31,41,256 60,73,95,760 0.10

2013-2014 5,40,33,569 68,03,03,145 0.07

2014-2015 2,22,86,389 90,68,53,678 0.02

2015-2016 7,34,11,672 107,98,09,650 0.06

2016-2017 3,49,92,634 73,05,94,642 0.04


CHART 5.1.3

Cash Ratio of Tirumala Cotton & Agro Products Pvt Ltd

Cash Ratio Of Tirumala Cotton & Agro


Products Pvt. Ltd

0.12
0.1
0.1
0.08

0.06 0.07
0.06 %
0.04
0.04
0.02
0.02
0
2012-13 2013-14 2014-15 2015-16 2016-17

Interpretation:
The above table shows the cash ratio of Tirumala Cotton and Agro Products Pvt Ltd
for the successful five years i.e ., 2012-2013 to 2016-2017.

From the above graph it is understood that the cash ratio of the company in the year
2012-13 was 0.10, and in the next year it is deceased by 0.03 in the succeeding year it is
further decreased by 0.05 and in the next year it is increased by 0.04% and in the year
2016-17 it is increased by 0.02%.
FIXED ASSETS RATIO:

This is the ratio between fixed assets and total assets. This ratio gives an idea as to what part
of the capital has been used in purchasing the fixed assets for the concern. If the ratio is less
than 1, it is good for the concern.

FORMULA:

Fixed assets

Fixed assets ratio =--------------------------

Long term funds

TABLE 5.1.4

Fixed asseta ratio of Tirumala Cotton & Agro Products Pvt. Ltd

Year Fixed assets Long term funds %

2012-2013 47,57,57,314 77,85,45,480 0.61

2013-2014 86,28,39,084 2,62,21,184 32.90

2014-2015 101,28,83,439 3,49,58,999 28.97

2015-2016 115,36,47,400 2,15,00,536 53.97

2016-2017 113,97,94,141 2,50,12,901 45.56


CHART 5.1.4

Fixed assets Ratio tirumala cotton & agro products pvt Ltd

fxed assets ratio of tirumala cotton & agro


products
60

50

40
30
53.65 %
45.56
20
32.9
28.97
10

0 0.61
2012-13 2013-14 2014-15 2015-16 2016-17

Interpretation:
The above table shows the Fixed assets ratio of Tirumala Cotton and Agro Products Pvt
Ltd for the successful five years i.e., 2012-2013 to 2016-2017.
From the above it is understood that the Fixed assets ratio of the company in the year
2012-13 is 0.61% and in the next year 2013-14 it is increased by 32.20% and in the year
2014-15 it is decreased by 3.93% in the succeeding year 2013-14 it is increased by 24.68%
and in the year 2016-17 it is decreased by 8.09%.
CAPITAL STRUCTURE RATIO:

DEBT TO EQUITY RATIO:

The debt equity ratio shows the relative contribution of creditors and Owners debt equity ratio
is measure of the long term financial solvency of a firm. This ratio indicates the relative
proportion of debt and equity in financing the assets of the firm.

FORMULA

Outside funds
Debt to equity ratio = ---------------------------
Share holders funds

TABLE 5.2.1

Debt to Equity Ratio Tirumala Cotton & Agro Products Pvt. Ltd

Year Long term Shareholder funds %


liabilities

2012-2013 77,85,45,480 29,06,04,598 2.6

2013-2014 55,19,26,800 36,25,06,807 1.52

2014-2015 55,41,91,515 42,80,35,760 1.29

2015-2016 72,70,62,953 47,85,92,992 1.51

2016-2017 85,19,71,134 50,97,41,071 1.67


CHART 5.2.1

Debt to Equity Ratio Tirumala Cotton & Agro Products Pvt Ltd

Debt to Equity Ratio of tirumala cotton &


agro products pvt. Ltd
3

2.5

2
1.5
2.6 %
1
1.52 1.51 1.67
0.5 1.29

0
2012-13 2013-14 2014-15 2015-16 2016-17

Interpretation:
The above table shows the Debt to equity ratio of Tirumala Cotton and Agro Products Pvt
Ltd for the successful five years i.e., 2012-2013 to 2016-2017.
From the above graph it is understood that the Debt to equity ratio of the company in the
year 2012-13 is 2.6% and in the next year 2013-14 it is decreased by 1.08% and in the
year 2014-15 it is further decreased by 0.23% in the succeeding year 2015-16 it is increased
by 0.22% and in the year 2016-17 it is further increased by 0.16%.
PROPREITORY FUNDS RATIO:

The total share holders fund is company with the total tangible assets of the
Company. This ratio indicates the general financial strength of the concern.

FORMULA

Net worth
Proprietary Funds Ratio = -------------------------------
Total Assets

TABLE 5.2.2

Proprietary Funds Ratio of Tirumala Cotton & Agro Products Pvt. Ltd

Year Net worth Total assets %

2012-2013 29,06,04,598 114,50,90,631 0.24

2013-2014 36,25,06,807 159,47,36,752 0.22

2014-2015 42,80,35,760 188,90,80,953 0.22

2015-2016 47,85,92,992 228,54,65,595 0.20

2016-2017 50,97,41,071 209,23,06,847 0.24


CHART 5.2.2

Proprietary Funds Ratio of Tirumala Cotton & Agro Products Company Ltd
Proprietary Funds Ratio of tirumala cotton &
agro products pvt. Ltd
0.3

0.25

0.2

0.15
%
0.24 0.24
0.1 0.22 0.22 0.2

0.05

0
2012-13 2013-14 2014-15 2015-16 2016-17

Interpretation:
The above table shows the Proprietary Funds ratio of Tirumala Cotton and Agro
Products Pvt Ltd for the successful five years i.e., 2012-2013 to 2016-2017.

From the above graph it is understood that the Proprietary Funds ratio of the
company in the year 2012-13 is 0.24% in the year 2013-14 it is decreased by 0.02% and
in the next year 2014-15 there is no increase or decrease, in the next year 2015-16 it is
decreased by 0.02% and in the next year it is increased by 0.04%

In all 5 years of the project period the company proprietary ratio could not reach the
standard.
TOTAL ASSET TURNOVER RATIO:-

Total assets turnover measure the turnover of the all the company‘s assets and is Calculated by
total assets average.

FORMULA:

Net Sales

Total Assets Turnover Ratio = ----------------------

Total Assets

TABLE 5.3.1

Total Assets Turnover Ratio of Tirumala Cotton & Agro Products Pvt. Ltd

Year sales Total assets %

2012-2013 179,66,17,511 114,50,90,631 1.56

2013-2014 205,02,72,517 159,47,36,752 1.28

2014-2015 293,66,28,328 188,90,80,953 1.55

2015-2016 329,40,54,444 228,54,65,595 1.44

2016-2017 295,79,49,493 209,23,06,847 1.41


CHART 5.3.1

Total Assets Turnover Ratio Tirumala Cotton & Agro Products Pvt. Ltd

Total Assets Turnover Ratio of


tirumala cotton & agro products
pvt. Ltd
1.8
1.6
1.4
1.2
1
0.8 1.55 %
1.56 1.44 1.41
0.6 1.28
0.4
0.2
0
2012-13 2013-14 2014-15 2015-16 2016-17

Interpretation:
The above table shows the Total Assets Turnover ratio of Tirumala Cotton and Agro
Products Pvt Ltd for the successful five years i.e., 2012-2013 to 2016-2017.

From the above graph it is understood that the Total Assets Turnover ratio of
company in the year 2012-13 is 1.56%, in the next year 2013-14 it is decreased by
0.28%,in the next year 2014-15 it is increased by 0.27%,in the next year 2015-16 it is
decreased by 0.11% and in the next year it is decreased by 0.03%.
FIXED ASSETS TURNOVER RATIO:

This Ratio establishes the relationship between fixed assets and sales. This Ratio is a measure
of ratio is a measure of how well the firm was its long term (fixed) assets and shows how many
rupees of sales are supported one rupee of fixed assets

FORMULA

Sales

Fixed Assets Turnover Ratio = ------------------

Fixed Assets

TABLE 4.3.2

Fixed Assets Turnover Ratio Of Tirumala Cotton & Agro Products Pvt. Ltd

Year Net sales Net fixed assets %

2012-2013 179,55,03,573 44,95,05,085 3.99

2013-2014 205,99,81,472 89,41,08,959 2.30

2014-2015 294,54,29,373 106,95,27,582 2.75

2015-2016 330,48,46,572 120,05,20,890 2.75

2016-2017 297,02,29,488 127,47,35,513 2.33


CHART 5.3.2

Fixed Assets Turnover Ratio of Tirumala Cotton & Agro Products Pvt. Ltd
Fixed Assets Turnover Ratio of tirumala
4.5 cotton & agro products pvt. Ltd
4
3.5
3
2.5
2
1.5
3.99 %

2.75 2.75
1 2.3 2.33
0.5
0
2012-13 2013-14 2014-15 2015-16 2016-17

Interpretation:
The above table shows the Fixed Assets Turnover ratio of Tirumala Cotton
and Agro Products Pvt Ltd for the successful five years

From the above graph it is understood that the Fixed Assets Turnover ratio of
company in the year 2012-13 is 3.99%,in the year 2013-14 it is decreased by 1.69%,in the
next year 2014-15 it is increased by 0.45%,in the next year 2014-15 it is equal to the
previous year and the year 2016-17 it is decreased to 0.42%.
INVENTORY TURNOVER RATIO:

Inventory turnover ratio indicates the efficiency of the firm in producing and selling
its product. It is called by dividing net sales by average stock. The average stock is the
average of opening and closing balances of stock.

FORMULA

Cost of goods sold

Inventory Turnover Ratio = ------------------

Average Stock

TABLE 5.3.3

Inventory Turnover Ratio of Tirumala Cotton & Agro Products Pvt Ltd

Year Cost of goods sold Average stock %

2012-2013 168,53,84,302 33,71,77,928.5 4.99

2013-2014 171,03,92,165 38,27,15,435.5 4.46

2014-2015 224,12,93,704 43,05,38,042 5.20

2015-2016 261,85,91,768 48,76,93,664.5 5.36

2016-2017 221,66,66,360 47,08,37,736.5 4.70


CHART 5.3.3

Inventory Turnover Ratio of Tirumala Cotton & Agro Products Pvt Ltd

Inventory turn over ratio of tirumala cotton & agro


products
6

4
3
4.99 5.2 5.36 %
4.46 4.7
2

0
2012-13 2013-14 2014-15 2015-16 2016-17

Interpretation:
The above table shows the Inventory Turnover ratio of Tirumala Cotton and Agro
Products Pvt Ltd for the successful five years.

From the above it is understood that the Inventory Turnover ratio of company in the
year 2012-13 is4.99%,in the year 2013-14 it is decreased by 0.53%,in the next year 2014-
15 it is increased by0.74%,in the next year 2015-16 it is increased by 0.16%,and the year
2016-17 it is decreased to 0.66%.
DEBTORS TURN OVER RATIO:

This ratio is computed by dividing the net credit sales by average trade debtors. This ratio
is to determine the efficiency with which the trade debtors are managed. This ratio is
expressed the higher the turnover ratio and the average collection period, the better trade
credit management and the better liquidity of debtors, as short collection period and high
turnover ratio imply prompt payment on the past of debtors.

FORMULA

Total Net Sales


Debtors Turnover Ratio = -----------------------

Average Net Debtors

TABLE 5.3.4

Debtors Turnover Ratio of Tirumala Cotton & Agro Products Pvt Ltd

Year Sales Average debtors %

2012-2013 179,66,17,511 16,59,15,772 10.82

2013-2014 205,02,72,517 171,91,86,995 11.92

2014-2015 293,66,28,328 18,51,75,837 15.85

2015-2016 329,40,54,444 28,19,46,672 11.68

2016-2017 295,79,49,493 28,18,48,569 10.49


CHART 5.3.3

Debtors Turnover Ratio of Tirumala Cotton & Agro Products Pvt Ltd

Debtors Turnover Ratio Of Tirumala Cotton &


Agro Products Pvt Ltd
18
16
14
12
10
8 15.85 %
6 11.92
10.82 11.68
10.49
4
2
0
2012-13 2013-14 2014-15 2015-16 2016-17

Interpretation:
The above table shows the Debtors Turnover ratio of Tirumala Cotton and Agro
Products Pvt Ltd for the successful five years.

From the above graph it is understood that the Debtors Turnover ratio of company in
the year 2012-13 is 10.82%,in the year 2013-14 it is increased by 1.10%,in the next year
2014-15 it is increased by 3.93%,in the next year 2015-16 it is decreased by 4.17%,and
the year 2016-17 it is decreased to 1.19%.
PROFITABILITY RATOS:

GROSS PROFIT RATIO:

Gross profit ratios the relationship between gross profits to sales during a given
period. It is expressed in terms of percentage. The gross profit is the difference between the net
sales and the cost of goods sold.

FORMULA:

Gross profit
Gross Profit Ratio = ------------------ x 100

Net sales

TABLE 5.4.1

Gross Profit Ratio of Tirumala Cotton & Agro Products Pvt. Ltd

Year Gross profit Net sales %

2012-2013 7,75,28,653 179,55,03,573 4.3

2013-2014 2,69,49,682 205,99,81,472 1.3

2014-2015 9,01,75,420 294,54,29,373 3

2015-2016 10,71,84,651 330,48,46,572 3.2

2016-2017 4,29,65,603 297,02,29,488 1.4


CHART 5.4.1

Gross Profit Ratio of Tirumala Cotton & Agro Products Pvt. Ltd

Gross Profit Ratio Of Tirumala Cotton &


Agro Products Pvt. Ltd
5
4.5
4
3.5
3
2.5
4.3 %
2
1.5 3 3.2
1
0.5 1.3 1.4
0
2012-13 2013-14 2014-15 2015-16 2016-17

Interpretation:
The above table shows the Gross profit ratio of Tirumala Cotton and Agro Products
Pvt Ltd for the successful five years.

From the above graph it is understood that the Gross profit ratio of company in the
year 2012-13 is 4.3%, in the next year 2013-14 it is decreased by 3.0%, in the next year
2014-15 it is increased by 1.7%, in the next year 2015-16 it is further increased by 0.2%,
and in the year 2016-17 it is decreased by 1.8%.
NET PROFTI RATIO:

Net Profit ratio is the ratio between net profit after taxes and net sales. It indicated
what portion of sales is left to the owner after operating expenses. Non operating income such as
interest on investments, gain on sale of fixed assets and so one added to the operating Profit. Non
operating expenses such as loss on sale of fixed assets and so one added to the operating Profit.

FORMULA

Net profit
Net Profit Ratio = ------------------ x 100
Sales

TABLE 5.4.2

Net Profit Ratio of Tirumala Cotton & Agro Products Pvt. Ltd

Year Profits after tax Net sales %

2012-2013 5,31,42,009 179,55,03,573 2.95

2013-2014 2,00,40,885 205,99,81,472 0.97

2014-2015 6,55,28,953 294,54,29,373 2.22

2015-2016 5,05,57,232 330,48,46,572 1.52

2016-2017 3,11,48,079 297,02,29,488 1.04


CHART 5.4.2

Net Profit Ratio of Tirumala Cotton & Agro Products Pvt. Ltd

Net Profit Ratio Of Tirumala Cotton &


Agro Products Pvt. Ltd
3.5

2.5

1.5 2.95 %

1 2.22
1.52
0.5 0.97 1.04

0
2012-13 2013-14 2014-15 2015-16 2016-17

Interpretation:
The above table shows the Net profit ratio of Tirumala Cotton and Agro Products Pvt Ltd
for the successful five years.

From the above graph it is understood that the Net profit ratio of company in the year 2012-
13 is 2.95% ,in the next year 2013-14 it decreased by 1.98%,in the next year 2014-15 it is
increased by 1.25%,in the next year 2015-16 it is decreased by 0.70% and in the next year 2016-
17 it is further decreased by 0.48%.
OPERATING RATIO:-

The operating expenses ratio depending the office and


administrative and selling And distribution expenses.

Operating expenses

Operating Expenses ratio = ----------------------------


Sales

TABLE 5.4.3

Operating Ratio of Tirumala Cotton & Agro Products Pvt. Ltd

Year Operating cost Net sales %

2012-2013 168,66,61,055 179,55,03,573 0.93

2013-2014 180,74,81,338 205,99,81,472 0.87

2014-2015 242,13,09,874 294,54,29,373 0.82

2015-2016 278,32,56,990 330,48,46,572 0.84

2016-2017 248,94,52,503 297,02,29,488 0.83


CHART 5.4.3

Operating Ratio of Tirumala Cotton & Agro Products Pvt. Ltd


Operating Ratio Of Tirumala Cotton & Agro Prduct
0.94

0.92

0.9

0.88

0.86

0.84 0.93 %
0.82
0.87
0.8 0.84
0.82 0.83
0.78

0.76

2012-13 2013-14 2014-15 2015-16 2016-17

Interpretation:
The above table shows the operating ratio of Tirumala Cotton and Agro Products Pvt
Ltd for the successful five years

From the above it is understood that the operating ratio of company in the year 2012-13 is
0.93% ,in the next year 2013-14 it decreased by 0.06%,in the next year 2014-15 it is decreased by
0.05%,in the next year 2015-16 it is increased by 0.02% and in the next year 2016-17 it is further
decreased by 0.01%.
Comparison of different ratios of TIRUMALA COTTON & AGRO PRODUCTS pvt
ltd in consolidated view:

Ratio 2013 2014 2015 2016 2017


Current ratio 1.03 1.02 0.90 1.004 1.11

Quick ratio 0.61 0.43 0.40 0.52 0.54

Cash ratio 0.10 0.07 0.02 0.06 0.04

Inventory turnover ratio 4.99 4.46 5.20 5.36 4.70

Debtor turnover ratio 10.82 11.92 15.85 11.68 10.49

Total asset turnover rati o 1.56 1.28 1.55 1.44 1.41

Fixed asset turnover rati 3.99 2.30 2.75 2.75 2.33

Gross profit ratio 4.3 1.3 3 3.2 1.4

Net profit ratio 2.95 0.97 2.22 1.52 1.04

Operating ratio 0.93 0.87 0.82 0.84 0.83

Debt & equity ratio 2.6 1.52 1.29 1.51 1.67

Proprietary ratio 0.24 0.22 0.22 0.20 0.24


FINDINGS:

1. It was observed that the Gross profit ratio of tirumala cotton & agro products pvt ltd
during the study is volatile except 2013(4.3). The profitability position only good in
the year 2013.
2. It was observed that the Net profit ratio of tirumala cotton & agro products pvt ltd was
increased in 2013(2.95) compared to the remaining years. Due to that reason
decreasing the sales.
3. It was observed that the operating profit ratio of tirumala cotton & agro products pvt
ltd is higher in the year 2013(0.93 Compared to the remaining years. So profitability
good in year 2013.
4. It was observed that the debt & equity ratio position of tirumala cotton & agro
products pvt ltd gradually decreased year by year.
5. It was observed that the proprietary ratio position of tirumala cotton & agro products
pvt ltd is higher in the years 2013 & 2017(0.24) compared to the remaining years. So,
leverage good in the year 2013 & 2017
6. It was observed that the fixed assets turnover ratio position of tirumala cotton & agro
products pvt ltd ltd is higher in the year 2013(3.99) compared to the remaining years.
7. It was observed that the current ratio position of tirumala cotton & agro products pvt
ltd hadecreased from 2012-13 to 2014-15 and then increased from 2015-16 to 2016-
17.and the company has not reach the standerds of current ratio.
8. It was observed that the total assets turnover ratio position of tirumala cotton & agro
products pvt ltd is higher in the year 2013(1.56) compared to the remaining years. So
the turnover ratio good in year 2013
9. It was observed that the cash ratio position of Tirumala Cotton & Agro Products Pvt
ltd ltd was fluctuated year by year due to the changes in cash and bank balances. The
cash ratio of the company is not said to be satisfactory.

73
SUGGESTIONS:
1. It was suggested that the Current ratio of the company is not satisfactory due to it
could not satisfy the standards. So need to maintain sufficient current assets to meet
current liabilities.
2. It was suggested that the Quick ratio of the company is not satisfactory due to it could
not satisfy the standards. So need to maintain sufficient quick assets to meet current
liabilities.
3. It was suggested that the Cash ratio of the company is not satisfactory due to it could
not satisfy the standards. So need to maintain sufficient cash and bank balance to
meet current liabilities.
4. It was suggested that the Fixed assets turnover ratio of the company gradually
decreasing year by year. So we need to improve the sales along with fixed assets.
5. It was suggested that the Gross profit ratio of the company is not satisfactory level. So
the company need to improve the ratios. It means the firm need to improve the
volume of sales and need to reduce the cost of goods sold.
6. It was suggested that the Net profit ratio of the company is not satisfactory level. So
the company need to improve the sales.

74
CONCLUSION:

A study on TIRUMALA COTTON & AGRO PRODUCTS PVT LTD has been

carried out as a project the study was conducted for a period of 2012-13 to 2016-17. A

thorough analysis was conducted period and the study has been done with the given

annual reports and the financial reports.

The ratio analysis clearly indicates the financial performance of the company.

Analysis assured that the financial performance of the company is up to satisfactory level

and the company can meet its obligations on time.

75
BIBLIOGRAPHY:

S.NO NAME OF TITLE OF THE NAME OF THE EDDITION YEAR OF


THE BOOK PUBLISHER PUBLIC
AUTHO A TION
RS TH
1 K.Rajeswara Accounting and Jai bharat publications 10 2008
. rao financing
G.Prasad
TH
2 Prasanna Financial management Tata M.C. Graw hill 7 2008
. Chandra

TH
3 I.M.Pandey Financial management Vikas publishing 9 2004
. house
Pvt. Ltd rd
4 S.N.Maheswari Financial management Vikas publishers 3 2005
.
th
5 Y.N.Khan Financial management Tata M.C. Graw hill 7 2007
.

Websites:

www. Tirumala cotton & agro products Ltd.

www.investopedia.com/terms/c/cagr.asp
Statement of profit & loss of Tirumala cotton & agro products during the
year of 2013-17

77
Particulars 2013 2014 2015 2016 2017

I.Revenue from
operations 1793577947 2048186035 2920009647 3292761614 2918453159
a.sale of 1677869 2086482 16618681 1292830 39496334
product b.sale 5194802 9708955 8801045 12162222 13597521
of services
c.other operating revenues 1800450618 2059981472 2945429373 3304846572 2970229488

Revenue from 1899539 5300010 4837076 8418289 13247373

operations II.Other 1802350157 2065281482 2950266449 3313264861 2983476861

income III.Total
1359187317 1658827208 2192875607 2505806884 20360429
revenue 1249753 20206401 12084810 67624809 135621340
(3016710 (5045950 29303506 (3762976 48594308
IV.Expenses: 3) 4) 36333287 1) 44964591
1.cost of materials 24257032 31358556 93053187 45160075 133370470
consumed 40283725 59888920 57659477 99781687 90821365
2.Purchases of stock in 28035127 37200253 438781154 64883535 363223138
trade 1724727578 2860091029 320608021 2852675641
2037888932
3.changes in inventory 0
4.employee benefits 77622579 90175420 130801220
27392550
expense 94070 - 107184651 87835617
442868
5.finance cost 77528509 90175420 107184651 42965603
6.depreciation 26949682
7.other expenses 20500000 1359620 14976985 34551845
Total expenses 406334
V.Profit before tax from 3877404 23071115 36839545 (2273037
continuing 689605
9096 2 215732 4810889
operations(III-IV) 8)
24386500 6908797 24646467 56627419 11817524
Less:prior period expenses

VI.Tax expenses:
53142009 20040885 65528953 50557232 31148079
1.current tax net of MAT
credit
2.deffered tax
3.prior period tax 721.76 251.99 814.34 538.90 332.02
adjustment 703.06 213.62 698.49 538.90 332.02
1000 1000 1000 1000 1000
VII.Profit for the period
from continuing
operations (V-VI)
VIII.Earnings per
Balance Sheet Of Tirumala Cotton & Agro Products During The Year
Of 2013-17
Particulars As at march As at march As at march As at march As at march
31, 31, 31, 31, 31, 2017
2013 2014 2015 2016

78
I. Equity and liability
1.shareholders funds
a) Share capital 79529000 79529000 93815000 93815000 93815000
b)Share capital - 14286000 - - -
surplus c)Reserves 211075598 268691807 334220760 384777992 415926071
and surplus
shareholders funds 290604598 362506807 428035760 478592992 509741071
(A)
2.Non-current 238001724 508241007 487434608 623586732 771225291
liabilities a) long-term 52913969 43565562 66636676 103476221 80745843
borrowings b)deferred - 120231 120231 - -
tax liabilities c)long- 290915693 551926800 554191515 727062953 851971134
term provisions Non
current liabilities(B)
504867087 494613590 590082919 782853853 424926533
3.Current liabilities 36633516 91414338 131512958 148206094 117902581
a)short-term 65895157 93721827 185211724 146608984 187765528
borrowings b)Trade - 553390 46077 2140719 -
payables
c)Other current
liabilities d)Short-term 607395760 680303145 906853678 1079809650 730594642
provisions Total 1188916051 1594736752 1889080953 2285465595 2092306847
current liabilities(C)
Total equity
&liabilities
(D=A+B+C)

II.ASSETS 789531995 927564889 1153577000 1032856499


449505085
1.Non-current assets 73307089 85318550 70400 106937642
26252229
a)Fixed assets 8000 12000 15000 1101900
13000
i)Tangible assets 26221184 34958999 21500536 25012901
42901259
ii)capitalwork-in-
progress b)Non-current 5040691 21673144 25357954 108826571
44557268
investment c)Long-
term loans and
advances 563228841 894108959 1069527582 1200520890 1274735513
d)Other non-current
assets Total Non-
current assets (A)
358427142 407003729 454072355 521314974 420360499
2.Current assets 196556642 147280757 223070917 340822427 222874711
a)Inventories 18633988 54033569 22286389 73411672 34992634
b)Trade 14216788 10540974 11444404 23497575 139132960
receivables
c)cash and bank 37852650 81768764 108679306 125898057 210530
balances d)short-term 625687210 700627793 819553371 1084944705 817571334
loans and advances
e) other current assets
Total current 1188916051 1594736752 1889080953 2285465595 2092306847
assets(B) Total
assets(C+A+B)

79