full chapter sumatha

8/10/2019 Full Chapter Sumatha

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and investing activities over the related period. !ence, the need of another

statement to account for periodical increase or decrease of funds of an

enterprise. This statement is called fund flow statement. The effectiveness of

financial management in generating funds from various sources and using

them effectively for generating income without sacrificing the financial health

of the entity is reflected in the statement of funds.

MEANING FUNDS FLOW STATEMENT

The fund flow statement is a financial statement which reveals the

methods by which the business has been financed and how it has used its funds

between opening and closing balance sheet dates. Thus ,afund flow statement

is a report on movement of funds explaining wherefrom work capital

originates and where into the same goes during an accounting period . This

statement consists of two parties - "#$ sources of funds "%$ application of

funds. The difference between two shows the net change in the working

capital during the period.

&und flow statement is a statement which indicates various means by

which the funds have been obtained during a certain period and the ways to

which these funds have been used during that period. The term 'funds' used

here means working capital , i.e., excess of current asset over current

liabilities.

DEFINITION OF FUND FLOW STATEMENT

(ccording to proof (nthony, ) The fund flow statement describes the

sources from which additional funds were derived and the uses of which this

funds where put. )

(ccording to I.C.W.A. )fund flow statement is a statement either

prospective or retrospective , setting out the sources and application of the

fund of an enterprise.

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IMPORTANCE OF FUND FLOW STATEMENT

&unds &low statement is a useful tool in the financial manager's

analytical kit. The basic purpose of this statement is to indicate where funds

came from and where it was used during the certain period. &ollowing are the

uses of this which show its importance*

#. &und &low +tatement determines the financial consequences of business

operation. It shows how the funds were obtained and used in the past.

&inancial manager can take corrective actions.

%. The management can formulate its financial policies, dividend and

reserve etc. on the basis of the statement.

. It serves as control device, when comparing with budgeted figures. The

financial manager can take remedial steps, if there is any deviation.

. It points out the sound and weak financial position of the enterprise.

. It enables the bankers , creditors or financial institutions in assessing the

degree of risk involved in granting credit to the business.

/. The management can rearrange the firm's financing more effectively on

the basis of the statement.

0. 1arious uses of funds can be known and after comparing them with the

uses of previous years , improvement or downfall in the firm can be

assessed.

2. The statement comprised with the budget concerned will show to what

extent the resources of the firm were used according to plan and to what

extent the utilisation was unplanned.

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LIMITATION OF FUND FLOW STATEMENT

#. The statement lacks originality because it is only a rearrangement of

data appearing in accounts books.

%. It indicates only the post position and not future.

. It indicates fund flow in a summary form and it does not show various

changes which takes places continuously.

. 3hen both the aspects of a transaction are current, they are not

considered.

. 3hen both the aspects of a transaction are non - current, even then they

are not included in this statement.

/. It is not an ideal tool for financial analysis.

0. It is not an original statement but simply a rearrangement of data in the

financial statement.

OBJECTIVES OF FUND FLOW STATEMENT

#. The main obectives of fund flow statement are4

%. To show how the resources have been obtained and used.

. To indicate the result of current financial management.

. To throw light upon the most important changes that have taken place

during a specific period.

. To show how the general expansion of the business has been financed

/. To indicates the relationship between profit s from operations,

distribution of dividend and raising of new capital or term loans.

0. To have assessment of the working capital position of the concern.

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CHAPTER II

COMPANY PROFILE

+ugar is sweet but producing of sugar is not that much of sweet. +ugar

factory is an agro-based industry. (lmost all the sugar factories are in the rural

area contributing its own share to the 5ation.

+ugar Industry is the largest agro-based industry in India next to cotton.

India is the highest producer of sugar cane in the world and 6uba, (ustralia and+outh (merican 6ountries fall in this line. In India, 7ttarapradesh is the highest

cane producing state followed by 8aharastra, Tamil 5adu ranks third in

productivity of sugar cane.

The raw material for sugar factory is cane, besides a main product of

sugar that comes under the essential commodities (ct, they are also producing

by-products such as 8olasses 9:aggasse. The sugar factory gives direct and

indirect employment opportunity to most of the people in that area. The sugar

factories are also earns foreign exchange by way of exporting of sugar.

In Tamil 5adu there are #/ 6ooperative 9 public sector sugar 8ills

and #; private sugar 8ill. (mong the 2 +ugar 8ills the 5((1(?@.?.?(8(+(8A 6B-B= +7C(? 8I>>+ >td, is one of them.

2.1 REGISTRATION OF THE MILLz

5adidipisai =ulavar @.?.?amasamy 6oop. +ugar 8ills >td., was

registered under the 6o-operative +ocieties (ct,#;/# on #/.D2.#;2 with an

installed capacity of #%D T6< "Tonne 6apacity per day$. and the society was

called 8ayiladuthurai 6oop. +ugar 8ill >td., and its licence 5o is ater

on the 8ill was renamed as 5adippisai =ulavar @.?.?amasamy 6oop. +ugar

8ills >td. The mill started its maiden crushing during #;20 . The crushing

capacity has been expanded from #%D T6< to DD T6< and the crushing

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with expanded capacity was started crushing during #;;-;/ season.

The 8ill is having its own ?egistered by- law governing the rules and

?egulation. The 8ill has to follow all other statutory provision and standing

orders.

The main obect of the society shall be To 8anufacturing of 3hite

sugar from sugar cane and +ale of sugar so manufactured along with the by-

products to the best advantage of members.)

2.2 LOCATION OF THE FACTORY

The 8ill is situated in Thalainayar village, 8ayiladuthurai Talk in

5agapattinam


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Nam !" D#$%'% Nam !" Ta()*

%. Thanavur "=art$. Thiruvidaimaruthur

"&ree will area$

Thiruvidaimaruthur

@athiramangalam

(uduthurai

Thiruppanandal

=andanallur

6ane


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lakhs divided into / lakhs shares of ?s. %DDF- each. The several classes of the

share and persons are,

"i$ 6ane producing members are under )() calss

"ii$ 5on producing members other than Covernment under ):) 6lass.

"iii$ Covernment under )6) 6lass.

The members should pay ?s. F- as enterance fees for each share of ?s.

%DDF-, The member should purchase minimum share of ?s. %DD each is ?s.#DDDF- with ?s. %Fas an entrance fees. a member can purchase any number of

share with entrance fees maximum limit of ?s.#DD.

The Covernment of Tamil 5adu shall be entitled to take shares upto?s.

DDF- laksh or to such limit as may be stipulated by the 5ational 6ooperative


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Mm/&$+# a- Pa#) S+a& Ca#%a(

Ya& G!,&-m-% 4C5 C(a$$ I-#,#)a( 4A4 C(a$$ T!%a(

N!. Am!)-% R$. N!. Am!)-% R$. N!. Am!)-% R$.

#;;/-;0 # ;D%DD #%// /#/;D2DD #%/0 #DD0%/DDD

#;;0-;2 # ;D%DD #D#; /%D2DD #D%D #D#0/DDD

#;;2-;; # ;D%DD #D#; /%D2DD #D%D #D#0/DDD

#;;;-DD # ;D%DD #2 /%;22/DD #2/ #D%D%2DD

%DDD-D# # ;D%DD #2 /%;22/DD ##2/ #D%D%2DD

%DD#.D% # ;D%DD #2; /DD//DD #2; #DD#2DD

%DD%-D # ;D%DD #/% //;#//DD #/%/ #D;#2DD

%DD-D # ;D%DD #/% //;#//DD #/%/ #D;#2DD

%DD-D # ;D%DD #/;#; /0D%/DD #/;%D #D/D202DD

%DD-D/ # ;D%DD #2D#% /;/%;DDD #2D# #D2//%DD

%DD/-D0

%DD0-D2

#

#

;D%DD

;D%DD

#2D#%

#;//

/;/%;DDD

0D0//DD

#2D#

#;///

#D2//%DD

##%###2DD

%DD2-D;

%DD;-#D

#

#

;D%DD

;D%DD

%D%;

%D%;

0;0/DD

0;0/DD

%DD

%DD

##%%2DD

##%%2DD

%D#D-## # ;D%DD %D%; 0;0/DD %DD ##%%2DD

S!)&'6 +econdary


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activitity to / months and remaining periods are utiliGed for overhauling of

the machineries.

ADMINISTRATION8.ORGANISATION6

The 5.=.@.?.? co-operative +ugar 8ills is (dministrated by an officer

in the rank of


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EMPLOYEES POSITION

?equirements of officers, staff and workers the qualification fixed :y J

>aw of sugar mill. The mill has lay-off the seasonal workers in the off-season.

The total employees are classified as two categories.

#. +easonal employees

%. ?egular employees

The seasonal employees are working during the crushing period only.

The regular employees are working throughout the year.

STAFFING PATTERNS AS ON 31.90.2912

S.N! Da&%m-% R7)(a& Sa$!-a( T!%a(

# (dministration and (ccounts #% ; ##

% 6ane /D # /#

Engineering #% /; #;

8anufacturing /# ;

Total D #D;D

+ource* +econdary


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1: GENERAL BODY6

"i$ +ubect to the provisions of the (ct, the rules made there under and

these by laws. The ultimate authority of the society shall vest in the

Ceneral :ody of its members.

"ii$ (pproval of the annual budget.

"iii$ 6onsideration of the (udit report and the (nnual report.

"iv$ astly Ceneral :ody 8eeting held on %.#D.%DD; and accounts

submitted upto %DD2-D;

2: AWARDS

#;20-22 Covt. of Tamil 5adu (ward for without accident of >ong

duration of crushing

#;20-22


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#;;D Covt. of Tamil 5adu +afety (ward for without (ccident

of >ong duration.

#;;D-;#


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CANE PRICE6;

(lmost all sugar factories in Tamil 5adu are paid the cane price in three

different types to the cane suppliers F cane growers.


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YEAR SMP SAP TOTAL

%DDD-%DD# ;.DD #2D.DD 00.DD

%DD#-%DD% /%.D L-- LL--

%DD%-%DD 0D.%D -- --

%DD-%DD 0/.DD -- --

%DD-%DD 0.DD -- --

%DD-%DD/ 0;.DD %#;.DD #D#

%DD/-%DD0 2D%.D %%%.D #D%

%DD0-%DD2 2##.2D %%%.%D #D

%DD2-%DD; 2##.2D %22.%D ##DD

%DD;-%D#D #%;2.D %2./D #0

%D#D-%D## #;#.%D D2.2D #;DD

%D##-%D#% #D.DD D.DD %DDD

LCovt . of Tamilnadu was not declared.

LL 8ill has earned loss from #;;-;/,this price is not eligible to declared.

PAYMENT OF CANE PRICE6;

6ane price is paid once in a week through :ank The weekly cane

payment bills are being generated through computer. The following recoveries

are effected while making cane payments,

a. Transport charges.

b. 6ane cutting labour charges.

c. oans arranged by the mills from Covernment and other agencies.

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c$ In the transport payment 4 a. ES AND DUTIES6;

The following taxes and duties are being paid by the mills.

? CESS6;

The mills has been paying of purchase Tax M ?s./DF- per 8T of cane

purchased and a cane cess of ?s.F- per 8T is being paid to Covernment of

Tamil 5adu.

6;

+ales tax is payable on the sale of molasses, baggasse and scrap as per

T5C+T (ct the tax is received from the purchaser and passed on to the

commercial Tax


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6entral Excise


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BY;PRODUCTS6;

a: Ba7a$$6;

The production of :agasse will be normally around D to %K of cane

crushed about 2DK of the :agasse will be utiliGed as fuel in the millNs :oilers

for =roduction of steam which is utiliGed for generation of electricity. The

?emaining quantity of :agasse is being sold to papers manufacturers"viG.$

8Fs.Tamil 5adu news print and papers limited, pugalur. The private parties (re

also purchased bagasse for their boiler to used as fuel,which is taxable 7nderthe T5C+T (ct.

/: P&$$m)6;

The production of pressmud will be around K of the cane crushed.

The Entire pressmud is being utiliGed to cane farm as fertiliGer.

': M!(a$$$6;

The production of molasses will be around K to .%K of cane crushed

The production and sale of molasses was #DDK controlled by excise

department (nd consequently the state Covernment has also decontrolled sale

of molasses. (fter the decontrol , molasses is being sold in the open market by

tender system (nd it is conducted by Tamil 5adu cooperative sugar

federation, chennai and The price at which it is sold in the open market.

FINANCE AND ACCOUNTS

The mill has started its maiden crushing in #;2/-20 and was earning

profit upto #;;-;. The mill has gone to expansion from #%D T6< to DD

T6< in (pril #;;% and scheduled to complete the proect by Bctober #;;.

The expansion proect was not completed as scheduled in Bctober #;;, but

6ommissioning of the plant was completed on D;.D.#;;/ and full load

performance trial was performed in #;;2-;; season between #.D.#;;; to

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#.D.#;;; only.

6onsequent on the above non completion of expansion proect the mill

could not achieve its #DD K of capacity utilisation of /.D% lakhs 8T. of cane.

The 8ill has started incurring loss from the year #;;-; onwards.

The cumulative loss upto %D#D-%D## is ?s. %00.# crores.

The Covenment of Tamil 5adu granted 3ays 9 8eans (dvance for the

settlement of cane payment arrears as detailed below *

YEAR WISE RECEIPT OF WAYS AND MEANS FROM

GOVERNMENT

AMOUNT RS. IN LAHS RATE OF INTEREST

;,D,;#,2;.DD #0K

#2,2;,DD,DDD.DD #.K

%,%D,DD,DDD.DD #.K

,D,DD,DDD.DD #%K

2,/,DD,DDD.DD #DK

#,2%,DD,DDD.DD #DK

T!%a( 010.99

WORING CAPITAL ARRANGEMENT 6

The mill is availing cash credit arrangements from 8Fs. @umbakonam

6entral 6o-op. :ank >td., @umbakonam on pledge of stock of +ugar,

8olasses and stock of +tores with the consortium :ank of Trichy td., @anchipuram td.,

Erode td., Tamil 5adu +tate (pex 6o-op. :ank

>td., 6hennai.

DETAILS OF TERM LOAN OUTSTANDING 31.93.2911

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S(.N! Pa&%#')(a&$O)%$%a-#-7


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2.@ WELFARE FACILITIES

FACILITIES TO THE CANE GROWRS6

L!a- Fa'#(#%#$6

The following loans are recommended by the mill to the financing

organiGations.

#. 6rop >oan

%. Tractor Trailer >oan

. =ower Tiller >oan

. Bil engine >oan

. +ubmersible 8otor >oan

/. Electrical 8otor >oan

0. Tyre cart >oan

2. Tipper >oan

S!#( T$% a- R!a D,(!m-% S'+m6

The 8ill arranges soil test through soil research centre, (duthurai to the

cane grower with the cost of ?s.F- per sample.

7nder the +ugarcane ?oad


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A7')(%)&a( Im(m-%6

&or the purpose of the cultivation of sugarcane, the mill had purchases

spryer, rotavater and other (gricultural implements and issued to the grower

though


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LEAVE FACILITIES

The following are the leave of 5.=.@.?.? 6o-Bp. +ugar 8ill >td. Every

worker is eligible for the following have facilities for a year.

#. Earned leave - D days

%. +ick leave - ;days

. &estival leave - #2 days

. 6asual leave - #% days

SUPPLY OF TE>T BOOS6;

The mill is reimbursing the cost of the Text books and 5ote books to the

children of the employees restricted to maximum amount sanctioned by the

commissioner of sugar.

#. >@C to 1th standard - ?s.DF-

%. 1I th to Pth standard - ?s.0F-

. PI th and PII standard - ?s.#DDF-

"upto two children of the employee$

The mills is sanctioning interest free education loan to the children of

the employees and recovered in ten monthly installments.

#. Technical - ?s.#DDF-

%. (rts6ollege - ?s.%DDDF-

. =rofessional 6ourse - ?s.DDDF-

"upto two children of the employee$

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The mills is also presenting cash awards to xthstd and PII thstd to

meritorious children of the employees as #st and %nd price each year.

i$ !igher +econdary 6ourse "Q%$ J ?s.%DDDF- "I st =rice$

?s.#DDF- "II price$

ii$ +.+.>.6. - ?s.#DDF- "Ist price$

?s. #DDDF- "II nd priGe$

RECREATION CLUB6;

There are three ?ecreation clubs- one for officers, one for staff and

another for the workers. T.1. set has been provided for each club.

BAN6;

( :ranch of kumbakonam central co-operative bank >td, is functioning

in the =remises of the mills for the benefit of the employees and growers of themills and also for the benefit of public of living in surrounding villages.

DISPENSARY6;

The mill is having a


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FREE TEA6;

Bne cup of tea is supplied every day for three shift during season and

also one varki is supplied to the employees attending night shift in addition to

night shift allowances. Bne cup of tea is supplied every day morning and

evening to the employees during off-season.

OTHERS6;

#. 5ight shift allowance.

%. &ree tea with ban in night shift.

. 3ashing allowance.

. Croup Insurance 9EI scheme benefit.

. E=& contribution by mill.

/. Cratuty on retirement.

0. &ree medical treatment for accident case and 5otified disease.

2. >eave and wages for those who suffering with cancer, heart problem and

T:.

;. Interest free advances like festival, marriage advance.

#D. >oan facilities through bank and credit society.

AUDITING6;

The sugar mill is audited by coop department under &?#%0 Terms. The

(ssistant


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PROFIT ALLOCATION

(ccording to the co-operative society (ct #;/#,all the societies are

allocated their net profit to the following heads*

#. 6o-operative ?esearch and


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CHAPTER III

REVIEW OF LITERATURE

R!+#% Ram M!+a-


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:olkrishnan and :ros >tdR. This obectives was study the financial position of

the company for the period of five years from #;;/-%DDD. !e concluded that

financial comparatively low because of high operating cost.

V#a=a )ma& B td. &indings in his study

current ratio is satisfactory, profitability ratio and cash position is also be

satisfactory, quick ratio is also can be considered to be satisfactory, he has been

found that the company, financial position to be satisfactory.

N#%+=a J


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RESEARCH METHODOLOGY

.1 MEANING OF RESEARCH

The advanced lenderNs dictionary of current English lays on the meaning

of research as a careful investigation or enquiry especially through search for

new facts in any branch of knowledge. (ccording to 3oody, ?esearch

comprises defining and redefining problems formulating hypothesis or

suggested solution collection organiGing and evaluating, data making deduction

and researching concession to determine whether they fit the formulating the

hypothesis.

.2 OBJECTIVES OF THE STUDY

The specific obective of the study are

#. To analysis the origin and organisational of the 5.=.@.?.?.co-operative

sugar ltd.

%. To assess the financial position of the 5.=.@.?.?.co-operative sugar

ltd.

. To analysis the fund flow management of the 5.=.@.?.?.co-operative

sugar.

. To analysis theover all functions of the sugar mills.

.3 METHOD OF DATA COLLECTION

The data used by the researcher in this study were secondary data which

is taken from the annual reports of five year "%DD0-%D##$ from +ugar mill.

8any ournals, important accounting books, management books etc., are

considered for this study and hence the proect is made.

Pma&= a%a

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=rimary data may be described as those data that has been observed by

the researchers for the first time. The primary data was obtained through

personal interaction with company officials during the internship period.

S'!-a&= a%a

+econdary data are those data that have been complied already before

conducting the research. +econdary data may be internal data as well as

external data. Internal data are collected from the companyNs records. External

data are collected from outside the company.

The various sources of secondary data are,

(nnual reports and funds flow statements of the company like "balance

sheet and profit and loss account $

6ompany websites

Income and expenditure statement

+tatement of funds flow

. TOOLS USED FOR ANALYSIS

The study of the organisation of funds flow statement of 5.=.@.?.?. co-

op +ugar mill ltd.,is prepared to take from finance.

#. ?atio analysis

%. 6omparative balance sheet

. 6omparative common siGe balance sheet

This type of tools will be used.

.0 PERIOD OF THE STUDY

The period of the study was three months. :ut the actual study covered

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data collected period from %DD/-%DD0 to %D#D-%D##. Each data was already

checked and verified by the charted accountant4 !ence the data is straight away

taken for analysis. The data is collected from the final account statements.

6omparatively covers the study purpose, no samples are required for the study

as it is concerned with the true financial data of the company.

. METHODS OF STUDY

#.


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CHAPTER V

ANALYSIS AND INTERPRETATION

0.1 RATIO ANALYSIS

?atio analysis is the powerful tool financial analysis. ( ratio is defined

as the indicated quotient of two mathematical expressionR and as the

relationship between two or more thingsR. In financial analysis, a ratio is used

to benchmark for evaluating position and performance of a firm. The absoluteaccounting figures reported in financial statement do not provide a meaningful

understanding of the performance and the financial performance of the firm.

(n accounting figure conveys meaning when it is related to some other

relevant information. The relationship between two accounting figures,

expressed mathematically, is known as financial ratio or simply as ratio. ?atio

helps to summaries large quantities of financial performance. The ratio

reflecting a quantitative relationship helps to form a qualitative udgment.

?atio analysis is a process of identifying the financial strengths and

weaknesses of the firm. This may be accomplished either through a trend

analysis of the firmNs ratios over a period of time or through a comparison of

the firmNs ratios with its nearest competitors and with the industry averages.

The four most important financial dimensions, which a firm would like to

analyGe, are liquidity, leverage, activity and profitability.

0.1.1 CURRENT RATIO

6urrent ratio is the ratio which helps to measure the liquidity position of

the company. It is known as working capital ratio. It is the relationship

between current assets and current liabilities. The following formula is useful

to find out current ratio.

33


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6urrent ?atio S "6urrent (ssetsF6urrent >iabilities$

6urrent (ssets S Inventories Q debtors Q cash at bank Qloan

and advances Q audit obected items

6urrent liabilities S 6reditors Q =rovision

Ta/( N!6 0.1. C)&&-% &a%#!$

td.,

INTERPRETATION

&rom the above table is found that the current ratio of 5adippisai =ulavar

@.?. ?amasamy 6o-operative +ugar 8ills >td., from %DD/-D0 to %D#D-##. The

standards norms or the satisfactory current ratio is %*#.


35/67

35


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UIC RATIO

uick ratio is the relation between the quick assets and quick liabilities.

&urther, it is known as liquidity ratio or acid-test ratio. The favorable quick

ratio was #*# which indicates that quick assets and quick liabilities. uick

asset are the assets which is current assets less stock Q prepaid expenses.

uick liabilities calculated by bank over draft less from the current liabilities.

It is calculated by the following formula.

uick ?atio S uick assetsFuick >iabilities "or$ (F6>

( S 6urrent assets J "+tock and stores Q prepaidexpenses$

Ta/( N!6 0.2. )#'* &a%#!

td.,INTERPRETATION

&rom the above table is found that the quick ratio of 5adippisai =ulavar @.?.

?amasamy 6o-operative +ugar 8ills >td., from %DD/-D0 to %D#D-##. The satisfactory

quick ratio is #*#.


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37


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S%!'* %)&-!,& Ra%#!

It is the ratio between net sales and closing stock. This ratio indicates

whether investment in inventory is efficiently used or not this ratio reveals the

number of times finished stock is turned over during a given accounting period.

S%!'* %)&-!,& Ra%#! -% $a($8 '&a$#-7 #- $%!'*

This ratio is used for measuring the profitability this ratio is also called

as stock velocity ratio.

Ta/( N!6 0.3. S%!'* %)&-!,& Ra%#!td.,INTERPRETATION

&rom the above table shows the stock turnover ratio of 5adippisai =ulavar

@.?. ?amasamy 6o-operative +ugar 8ills >td., from %DD/-D0 to %D#D-##. The

standards norms stock turnover ratio is %*#.


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39

Rati

o

0

2

4

6

8

1

0

1

2

1

4

1

6

2006-

07

2007-

08

2008-

09

2009-

10

2010-

11

Rati

o


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S!(,-'= &a%#!

D/% E)#%= Ra%#!

This ratio is ascertained to determine long-term solvency position of a

company debt equity ratio is also called External-Internal equity ratio

D/% )#%= &a%#! S+a& +!(&K$ ")-$8 T!%a( (!-7;%&m ")-$

+hare holderNs funds S +hare capital Q reserve surplus Qprofit or

loss account

Total long term funds S


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41


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P&!%a&= &a%#!

This ratio compares the share holderNs funds or ownerNs funds and total

tangible assets. In other words this ratio expresses the relationship between the

proprietorNs funds and the total tangible assets.

=roprietary ratio S share holderNs fundsF Total tangible assets

Ta/( N!60.0 P&!%a&= &a%#!


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43


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F# a$$%$ %)&-!,& &a%#!

This ratio reveals how efficiently the fixed assets are being utiliGed

F# a$$%$ %)&-!,& &a%#! N% $a($8 "# a$$%$!ere,

5et fixed assetsS &ixed (ssets J td., from %DD/-D0 to

%D#D-##. The standard norms of the fixed assets turnover ratio, during the year of

%DD/-D0 the fixed assets turnover ratio is ;./#, %DD0-D2, %DD2-D;, %DD;-#D and %D#D-

## the fixed assets turnover ratios are .D#, %./, %;.D0, and #.20 respectively. In

%DD/-D0 the company fixed assets turnover ratio highest is ;./# and the lowest fixed

assets turnover ratio is in %DD0-D2 in .D#. The remaining of the year increasing and

decreasing of the stage.

C+a&% N!6 0.. C+a&% $+!#-7 %+ "# a$$%$ %)&-!,& &a%#!

44


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45


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47


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S)& )#'* Ra%#!

This ratio is called absolute liquidity ratio or cash position ratio. This is

a variation of quick ratio. This ratio is calculated when liquidity is highly

restricted in terms of cash and cash equivalents.

6ash position ratio or +uper quick ratioS cash 9 marketable securities

Ta/( N!6 0. S)& )#'* Ra%#!


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50/67

Ca#%a( %)&-!,& &a%#!

8anagerial efficiency is also calculated by establishing the relationship

between costs of sales with the amount of capital invested in the business.

6apital turnover ratio S

Br

+hare holderNs fundsS +hare 6apital Qreserve surplus Q profit or loss account

Ta/( N!6 0. Ca#%a( %)&-!,& &a%#!

td.,INTERPRETATION

&rom the above table it is found that the capital turnover ratio of 5adippisai

=ulavar @.?. ?amasamy 6o-operative +ugar 8ills >td., from %DD/-D0 to %D#D-##.

The standard norms of the capital turnover ratio, during the year of %DD/-D0 the

capital turnover ratio is D.%D, %DD0-D2, %DD2-D;, %DD;-#D and %D#D-## the capital

turnover ratios are D.#%, D.D;, D.%D, and D.# respectively. In %DD/-D0 the company

capital turnover ratio highest is D.%D and the lowest capital turnover ratio is in %DD2-

D; is D.D;. the remaining of the year increase and decrease of the stages.

C+a&% N!6 0. C+a&% $+!#-7 %+ 'a#%a( %)&-!,& &a%#!

50

6ost of sales

+hare holdersN funds

6ost of sales

+hare holdersN funds


51/67


52/67

E-$$ &a%#!

These ratio are also known as supporting ratio to operating ratio. Theyindicate the efficiency with which business as a whole functions. It is better for

the concern to know how it is able to save or waste over expenditure in respect

of different items of expenses.

Ta/( N!.0.19 E-$$ &a%#!


53/67

53


54/67

CHAPTER VI

FINDINGS AND SUGGESTION

The present study entitled as fund flow statement company ltd. This

study covers a period of five years from %DD/-D0 to %D#D-##. This study

mainly depends on the financial analysis and the maor findings of the study

are listed below.

The study reveals that the current ratio of 5.=.@.?.?. 6o-Bperative

sugar mill >td, was below than standard level in all years. !ence thecompany has to improve its liquidity position.

The quick ratio of 5.=.@.?.?. 6o-Bperative +ugar 8ill >td, standard

trend. :ut in all years quick ratio was much below the standard level.

It is not favorable. !ence the company has to improve the quick ratio

level.

The stock turnover ratio of the concern is decreased from the year of

%DD/-D0 and increased from the year of %DD0-D2. (fter %DD2-D; the

ratio has decreased suddenly. The company has the fluctuation in stock

turnover ratio, so company will undertake high concentration to the

ratio.

The solvency ratio is high in the year of %D#D-##. %DD/-D0, %DD0-D2 and

%DD;-#D has same ratio and %DD2-D; has low ratio. +o company has not

concentrated to solvency ratio.

The proprietary ratio has the fluctuation during the study period. In the

year of %DD/-D0 has high and %DD2-D; has low ratio.

The fixed assets turnover ratio has fluctuation during study period and

was very low in %DD0-D2. %DD2-D;, %DD;-#D and %D#D-## have same

ratio. The last three years is standard ratios were recorded so, company

was concentrated in final years during study period.

3orking capital turnover ratio was high in %DD2-D; and low in %D#D-##.

Except the %DD0-D2 year among the all years was well ratio. +o,

company has unique knowledge about the ratio.

54


55/67

6apital turnover ratio has high in the year of %DD/-D0, %DD;-#D and low

in %DD0-D2. The company was concentrated slightly to the study period.

The expenses ratio was increase while started the study and decreased

all the years. The company well concentrated to the expenses during all

the years except %DD/-D0.

6ompare with five years statement which items sources of funds current

liabilities current assets increased "or$ decreased and profit "or$ loss in

income and balance sheet.

(s well as long term obligation of 5.=.@.?.? 6o-Bperative +ugar 8ill

>td. (re measured in firm its funds flow statement.

55


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CHAPTER VII

CONCLUSION

&inance is the basic input to any business which is very essential not

only to establish as well as operate the industry in successful way. &unds flow

management of any form of organisation is never standard but that is flexible

due to movement of funds. &und flow is concerned with acquisitioned and also

utilisation of funds in both fixed assets as well as current assets from this

research work it can be calculated that the operational efficiency profit earning

capacity and ability to meet the short-term.

56


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TABLE .1

COMPARATIVE BALANCE SHEET FOR 299;299@

Pa&%#')(a&$ 299


58/67

COMPARATIVE BALANCE SHEET FOR 299@;299

Pa&%#')(a&$ 299@


59/67

COMPARATIVE BALANCE SHEET FOR 299;299

Pa&%#')(a&$ 299


60/67


Pa&%#')(a&$ 299


61/67


Pa&%#')(a&$ 2919


62/67

#. I.8. =andey "#;;$ &inancial 8anagement. =ublished by

1ikas =ublishing !ouse =vt. >td., 5ew


63/67

31006-00

21001-00

SHARE DEPOSISTS

RESERVES & SURPLUS

SUB TOTAL

LOAN FUNDS

SECURED LOANS

UNSECURED LOANS

SUB TOTAL

TOTAL

APPLICATION OF FUND FI!ED ASSETS

GROSS BLOC

LESS ACCU!ULATED DEPRECIATION

NET BLOC

CAPITAL "OR IN PROGRESS

INVEST!ENTS AND DEPOSITS

CURRENT ASSETS , LOANS " ADVANCES

INVENTORIES

SUNDR# DEBTORS

CASH AND BAN BALANCES

LOANS AND ADVANCES

SUB TOTAL

LESS CURRENT LIABILITIES "

PROVISIONS

NET CURRENT ASSETS

!ISCELLANEOUS E$PENDITURE

NET APPLICATION

PRO%IT AND LOSS ACCOUNT

TOTAL

2

3

4

5

6

7

8

9

10

11

12

5882002.38

322057936.70

#30#23$.0%

0.00

869256395.00

%$2&3$&.00

130&%0&3#.0%

640430222.78

547113668.74

93316554.04

1177863.67

2132799.00

259463857.66

1303202.03

2626959.63

15181459.62

2%1%%1#1.1

924603970.53

-642717828.92

0.00

-548815072.05

-1854675606.13

130&%0&3#.0%

4286108.62

320693110.29

#33#3#1%.$1

0.00

783688000.00

7%3%%000.00

1217331#1%.$1

635674528.90

505008986.95

130665541.95

515163.67

1564817.00

S290289725.05

1016079.28

1007516.98

10799045.27

30&1$23#7.2&

806544437.40

-501352090.15

0.00

-370686548.20

-1588017967.11

1217331#1%.$1

S.'- S.'-

S.'-

ACCOUNTS O%%ICER AD!INISTRATOR

AUDISTORS

N.P.K.R.RAMASAMY CO-OPERATIVE SUGAR MILLS LTD., THALAINAYAR

BALANCE SHEET AS AT 31/03/200%

PARTICULARS SCHED

ULE

REF.

AS AT

31/03/200%

AS AT

31/03/2007

SOURCES OF FUNDS

SHARE HOLDERS FUNDS SHARE CAPITAL

SHARE DEPOSISTS

1

2

112111800.00

4151035.24

108664200.00

5882002.38

63


64/67

31006-00

21001-00

RESERVES & SURPLUS

SUB TOTAL

LOAN FUNDS SECURED LOANS

UNSECURED LOANS

SUB TOTAL

TOTAL

APPLICATION OF FUNDS FI!ED ASSETS

GROSS BLOC


NET BLOC




INVENTORIES

SUNDR# DEBTORS


LOANS AND ADVANCES

SUB TOTAL

LESS CURRENT LIABILITIES & PROVISIONS

NET CURRENT ASSETS


NET APPLICATION


TOTAL

3

4

5

6

7

8

9

10

11

12

328156377.36

####1$212.0

0.00

1093556395.00

10$3&&3$&.00

1&37$7&07.0

647443340.36

590660492.95

56782847.43

1177883.87

2355493.00

376958440.27

9888797.75

3413485.90

17465424.31

#023&7&0#.$0

1159075347.36

-756717842.46

0.00

-695779696.66

-2233755304.26

1&37$7&07.0

322057936.70

#30#23$.0%

0.00

869256395.00

%$2&3$&.00

130&%0&3#.0%

640430222.78

547113668.74

93316554.04

1177863.67

2132799.00

259463857.66

1303202.03

2626959.63

15181459.62

2%1%%1#1.1

924603970.53

-642717828.92

0.00

-548815072.05

-1854675606.13

130&%0&3#.0%

S.'- S.'-

S.'-


AUDISTORS


BALANCE SHEET AS AT 31/03/200$

PARTICULARS SCHEDU

LE

RE%.

AS AT

31'03'2009

AS AT

31'03'2008

SOURCES OF FUNDS

SHARE HOLDERS FUNDS

SHARE CAPITAL SHARE DEPOSISTS

RESERVES & SURPLUS

12

3

112432800.004599769.83

331154559.92

112111800.004151035.24

328156377.36

64


65/67

31006-00

21001-00

SUB TOTAL

LOAN FUNDS

SECURED LOANS UNSECURED LOANS

SUB TOTAL

TOTAL


GROSS BLOC


NET BLOC




INVENTORIES

SUNDR# DEBTORS


LOANS AND ADVANCES

SUB TOTAL


NET CURRENT ASSETS


NET APPLICATION


TOTAL

45

6

7

8

9

10

11

12

##%1%712$.7&

0.001147491395.00

11#7#$13$&.00

1&$&7%&2#.7&

651758058.36

632808408.84

18949651.54

1177863.67

2508889.15

431407150.72

425202.10

23408278.42

17977547.59

#7$03$31.&

1275141753.80

-798237821.95

0.00

-779288170.41

-2374966695.16

1&$&7%&2#.7&S

####1$212.0

0.001093556395.00

10$3&&3$&.00

1&37$7&07.0

647443340.36

590660492.95

56782847.43

1177883.87

2355493.00

376958440.27

9888797.75

3413485.90

17465424.31

#023&7&0#.$0

1159075347.36

-756717842.46

0.00

-695779696.66

-2233755304.26

1&37$7&07.0

S.'- S.'-

S.'-


AUDISTORS

65


66/67


BALANCE SHEET AS AT 31/03/2010

PARTICULARS SCHED

ULE

REF.

AS AT

31/03/2010

AS AT

31/03/200$

31006-00

21001-00

SOURCES OF FUNDS

SHARE HOLDERS FUNDS

SHARE CAPITAL

SHARE DEPOSISTS

RESERVES & SURPLUS

SUB TOTAL

LOAN FUNDS

SECURED LOANS

UNSECURED LOANS

SUB TOTAL

TOTAL

APPLICATION OF FUNDFI!ED ASSETS

GROSS BLOC


NET BLOC




INVENTORIES SUNDR# DEBTORS


LOANS AND ADVANCES

SUB TOTAL


NET CURRENT ASSETS


NET APPLICATION


TOTAL

1

2

3

4

5

6

7

8

9

10

11

12

112432800.00

5269455.33

329699584.97

##7#01%#0.30

81122000.00

1066369395.00

11#7#$13$&.00

1&$#%$323&.30

659968581.78

639494681.04

20473900.74

1177863.67

1896856.67

332120582.602196818.62

22726859.00

16725419.11

37%##3$$.0

1293177374.76

-916332975.16

0.00

-895859074.42

2490752309.72

1&$#%$323&.30

112432800.00

4599769.83

331154559.92

##%1%712$.7&

0.00

1147491395.00

11#7#$13$&.00

1&$&7%&2#.7&

651758058.36

632808408.84

18949651.54

1177863.67

2508889.15

431407150.72425202.10

23408278.42

17977547.59

#7$03$31.&

1275141753.80

-798237821.95

0.00

-779288170.41

-2374966695.16

1&$&7%&2#.7&

S

S.'- S.'-

S.'-


AUDISTORS

66


67/67

N.P.K.R.RA!ASA!#CO-OPERATIVE SUGAR MILLS LTD., THALAINAYAR

BALANCE SHEET AS AT 31/03/2011

PARTICULARS SCHED

ULE

REF.

AS AT

31/03/2011

AS AT

31/03/2010

31006-00

21001-00

SOURCES OF FUNDS

SHARE HOLDERS FUNDS

SHARE CAPITAL

SHARE DEPOSISTS

RESERVES & SURPLUS

SUB TOTAL

LOAN FUNDS

SECURED LOANS

UNSECURED LOANS

SUB TOTAL

TOTAL


GROSS BLOC


NET BLOC




INVENTORIES SUNDR# DEBTORS


LOANS AND ADVANCES

SUB TOTAL


NET CURRENT ASSETS


NET APPLICATION


TOTAL

1

2

3

4

5

6

7

8

9

10

11

12

112432800.00

5643039.43

320185066.91

#3%20$0.3#

81122000.00

1046142265.00

11272#2&.00

1&&&2&171.3#

659997709.58

646726054.74

13271654.84

1177863.67

1832830.00

225689444.271411522.75

24120882.64

10785551.68

2&01%0$&.01

1484118484.01

-1219100389.00

0.00

-1205828734.16

2771353905.50

1&&&2&171.3#

112432800.00

5269455.33

329699584.97

##7#01%#0.30

81122000.00

1066369395.00

11#7#$13$&.00

1&$#%$323&.30

659968581.78

639494681.04

20473900.74

1177863.67

1896856.67

332120582.602196818.62

22726859.00

16725419.11

37%##3$$.0

1293177374.76

-916332975.16

0.00

-895859074.42

2490752309.72

1&$#%$323&.30

full chapter sumatha

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