CHAPTER V

SUMMARY ,FINDINGS AND SUGGESTION

SUMMARY. The study gives the overall picture about the financial performance of kasargod latex factory.The society researches can propose suggestion and recommendation to improve the presence of the society.5.1 FINDINGS Agriculture is the backbone of Indian economy.The total geographical area of the country came about 328.8 million hecters.Out of which land devoted to agriculture is 142.9 million hecters .India has substantial shear in the plantation crops like rubber.the finding from the study are given below.1.The KDCRF was formed to protect the interest of rubber planters in kasargod district.2.The raw material needed for production of centrifugal latex is field latex and other chemicals.3.The centrifugal latex factory got an ISO certified.4.The products made from centriged latex is gloves,adhesives,elastic thread,clipped goods and coir forms.5.The society market its products through direct selling and with the help of dealers.6.The society has well equipped storage facility at kasargod latex factory.

5.2 FINANCIAL PERFORMANCE. Financial analysis indicates the efficiency of the financial management of a company.The financial performance of kasargod latx factory analysed by using financial recorded data for the last five years.The principle financial statement is considered for the analysis which includes trading and profit and loss account and balance sheet .the major tools for the use of the analysis includes ratios,charts and diagrams.it also used concept like liquidity,solvency,profitability,Working capital etc.1.PROFITABILITY RATIO.a)The society has well gross profit ratio of in 2006-07 then it decreased in the coming two years.but a slight increase in the last two years .b)the society earned profit in the first years from 2006-07.but in 2007-08 and 2008-09 the society,s losses increased.but it improved in 2009-2011 years.2.LIQUIDITY RATIO:a) The society has a high current ratio which was 97:1 in 2007-08the year 2006-07 ,2008-09 current less ratio is very less,compared with 2007-08 current ratio and other years current ratio is not bad.b) In the first year quick ratio(2006-07) is very low 0.42%(0.004)but in the coming years show increase in trend.The decrese in trend is not favourable.3.ACTIVITY RATIO.a) The society,s fixed assets turn over ratio in all years ,just same as small ,variance is arised.b) The society stock turn over ratios show increase in trend in the first year 2006-2011 except the year 2007-08 .so the societies highest turn over ratio in the last two years.4.LEVERAGE RATIO.a) A societies proprietary ratio shows on unstable trend in the five years.the lowest proprietary ratio was 14.13 in the year 2008-09.But increase in trend shown the coming two years .b)The society debt equity ratio show an increase in trend from first year (2006-07) to 2008-2009. 2008-09 reach the ratio at top point 0.69:1,but the last two years show a slight decrease.

SUGGESTIONS: In order assume the success of kasargod latex factory,the following recommendation are made:1.A class share capital should b increased by inviting more farmers as its members.A class members should activily participate in the development and manangement of the society.2.To popularize and familiarize the products of the kasargod latex factory effective advertisement strategy to be introduced.

3.The technical and professional management training program to manangement and staff of kasargod latex factory may be conducted in marketing and processing areas .4. The society should make more marketing and processing of all types of agricultural products.5.Neccessary steps should be taken to provise better workin conditions to its employes.6.Introduction of new branches will help the expansion of society operation.7. A price fluctuation fund should also be created to meet the losses by price fluctuation in the market.8.Supervision.inspection and credit should be stream lined.9.The tax department should provide exception in taxes to strengthen the society.10. The government should be more favourable in extending technical assistance and financial support to the society