nran sugars
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COST ANALYSIS NIRANI SUGARS LTD,
Chapter I Introduction
1.1 EXECUTIVE SUMMARY
The Nirani sugar mill was originally established as a khandasri sugar factory of
1250 TCD in the year 1997-98. Subsequently making use of the govt of Indias
liberalized policy. Govt of India notification DCS /S/ 14/ 97 dated 2-6-98, which
conversion of khandasri sugar unit into vacuum pan sugar factories.
Cost accounting is an old as the human being itself. Since the financial accounting
has some limitation. Cost accounting has its own importance being an important category
of accounting system.
The cost accounting system is very helpful to sugar industry. After adopting cost
accounting every business must analyze it cost accounting system very care fully
Material, labour, over heads are the main elements of the Nirani Sugars Ltd. These
elements play very important role in the organization. The company giving more
importance to this on the other hand well trained labour force working towards the
company objectives. Various records are maintained by Nirani Sugars Ltd and each
department has its own cost records.
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COST ANALYSIS NIRANI SUGARS LTD,
The study of Cost Analysis of sugar industry with special reference to
Nirani Sugars Ltd Mudhol:
1.2 Introduction of cost accounting
We have entered into an area of liberalization the development process has opened
the doors of economy and in globalised economic environment it is necessary to protect
the interest of consumers, investor, company and the country as a hole. In a liberalized
economy, there is no role of traditional management in corporate world now only the
professional management is required to control of the costs of the present day origination
Modern area is called the industrial area. Every where there is vast developing in
the field of industry. On account of the development of the industries, the modern
industries require minimum cost of production and such as maximization of profits. For
this purpose, they depend on the financial statements such as trading profits and loss
account and balance sheet but these financial statements give information as whole. It
means the entire industry is treated as one unit. It is difficult task to locate the errors.
Cost account is recent development. It is the branch of financial accounting. It
maintains the records unit wise, process wise, job wise, department wise. At the end, we
can easily control are help in reduction of costs by preparation of the statements unit wise
or job wise. So cost accounting is developed basically to remove the limitation of
financial accounting
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COST ANALYSIS NIRANI SUGARS LTD,
1.3 OBJECTIVE OF THE STUDY
The following are the objective of study
a) Ascertainment of cost.
b) Determination of selling price.
c) Cost control and cost reduction.
d) Ascertaining the profit of each activity.
e) Assisting management in decision making
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COST ANALYSIS NIRANI SUGARS LTD,
Chapter II - COMPANY PROFILE
Name of the company : M/S Nirani Sugars Ltd
Kulali road
MUDHOL
Dist: Bagalkot
Register Office : M/s Nirani Sugars
Lokapur roadMUDHOL
Branch Office : At: Bijapur
Managing Director : Muragesh .R. Nirani
Status of the company : Sole trading concern
Constitution of the firm : Registered under companies
Act of 1956
Auditor of company
M/s Bhattad & Company
Financial institution : K.S.I.I. D.C
of the company K.S.F.C
Banker of the company : Sangli Bank Jamakhandi
S.B.I. Mudhol Branch
Indian Bank LokapurGramen bank of mudhol
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2.1 VISION AND MISSION
We will provide products of superior quality at competitive price and ensure
sustained profitability and growth.
We will protect the interest of all concerned promoters, shareholders, customers,
distributors, employees and community.
We believe in fair trade practice, standards and strive for total customers
satisfaction, keeping the environment eco friendly.
We believe that our people are most valuable assets for personal and
organizational growth.
We will treat our people with dignity and look after the safety and welfare of
individuals and there families.
We provide sugar which is major necessity for the country.
Sugar industries are providing ethanol which can be added in diesel and diesel is
major requirement of the nation.
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COST ANALYSIS NIRANI SUGARS LTD,
2.2HISTORY OF NIRANI SUGARS LTD
1. M/s Nirani Sugars Ltd,, set up in 1996 was promoted by Mr.Murugesh R
Nirani. B.E, D.B.M., a technical Graduate and local MLA of Bilagi and Minister
of large and Medium Scale Industry, Govt of Karnataka. He comes from an
agricultural family from Bilagi Taluk of Bagalkot Dt. He started as an industrialist
with setting up of a modern Khandasari Unit at Mudhol. He is also very actively
involved as a Managing Director of Badgandi Sugars Ltd, a new 2500 TCD sugar
and Co-gen plant at his constituency Bilagi. The new unit has commenced
commercial production in December 2005. He has also been recognized and
awarded Bharat Udyog Ratna award from Govt of India. He has also taken over a
sick mini cement plant of 100 TPD capacities at Mudhol area, which has now
been put into commercial operation with a capacity of 200 TDP within a short
span of time. He has also contributed his service in setting up residential school
and D, Ed College at Mudhol.
2. Nirani sugars Ltd. Is presently operating a sugar mill of 5000 tones cane
day (5000 TCD). This sugar mill was originally established as a khandasari sugar
factory of 500 TCD in the year 1997-98. In fact this was the most modern
khandasari sugar factory & was first in the country to have started with high
pressure boiler, turbo generator set with captive power generation, multiple effect
pressure evaporator system with falling film evaporators etc. it successfully
produced goods quality white crystal sugar. But as khandasari unit, it had its own
constraints due to technical limitations and govt policies.
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COST ANALYSIS NIRANI SUGARS LTD,
3. Subsequently, making use of the govt. of Indias liberalized policy, vide govt of
India notification DCS /S/14/97 dated 2-6-98, which permitted conversion of khandsari
sugar Readopting vacuum evaporation & vacuum pan boiling systems along with related
changes. NSL did not lose time to expand the capacity to 5000 TCD, side by side taking
development measures to increase cane area & cane availability. Today NSL is a regular
sugar factory with 5000 TCD capacity with improved efficiencies.
4. Having regard to the above, the new sugar projects in the country, are coming up
with a capacity of 5000 TCD & more with the facility of cogeneration of power. A
number of existing mills in the country are expanding to even bigger capacities like 7500
TCD, 10000 TCD & so on.
5. The cogeneration of power permits generation of surplus power, which is
encashable and thus helps augmentation of income to the industry substantially on a
sustained basis. The profitability of the cogeneration plant increases with increase in the
size of the plant. Bigger cogeneration plants are feasible only with bigger sugar mills,
either as forward integration or with back up support for fuel.
6. The market and the price for the power produced is assured as the surplus power
so generated is under written by KPTCL through power purchase Agreement. The govt
of Karnataka also shares the aforesaid viewpoint & encourages cogeneration of power by
sugar factories using bagasse as a fuel. In support of this, the govt has announced a
capital subsidy of Rs. 25 lakhs per MW of surplus power, for such cogen projects.
7. In fact NSL has already entered into an agreement with TATA power trading
company Ltd. For sale of power at a price of Rs3.61 per unit.
8. To match the sugar mill expansion from 5000 TCD to 10000 TCD, NSL proposes
to double its cogeneration capacity also from 16MW to 48MW.
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COST ANALYSIS NIRANI SUGARS LTD,
Chapter III Cost Analysis
3.1 MEANING OF COST
Cost in simple words, means the total of all expenses. Cost is defined as the
amount of expenditure incurred on a given thing. Thus it is that which is given or
sacrificed to obtain something.
ICMA London Cost is the amount of expenditure incurred on or attributable to a
given thing.
In a business where selling and distribution expenses are quite nominal, the cost of
the article may be calculated without considering the selling and distribution overheads.
While in a business, where the nature of the product requires heavy selling and
distribution expenses calculation of cost without taking in to account selling and
distribution expenses may prove very costly to the business. Then cost may be factory
cost, office cost, cost of sales and even an item of expense is also termed as cost.
Prime cost includes expenditure on direct material, direct labor and direct
expenses. Money spent on materials is termed as cost of materials the spent on labor as
cost of labor and so on. Thus, the used of term cost without qualification is also quite
misleading. Again, different costs are found out for different purposes. To work-in-
process is valued at factory cost while stock of finished goods valued at office cost.
Numerous other examples can be given to show the term cost des not mean the same
thing under all circumstances and for all purposes. Many items of production are handled
in an optional manner, which may give different costs for the same production or job
without in any way of cost accounting.
3.2 ELEMENTS OF COST
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COST ANALYSIS NIRANI SUGARS LTD,
Elements of cost mean the essential parts or components of goods or service or jobs. In
other words elements of cost are part of the total cost and include the main item of
expenditure incurred for production of goods, services and jobs.
Analysis and classification of cost
Cost is the amount of expenditure incurred for production of goods and services. Thus
cost is composed of three elements, viz, material, labor, and expenses.
Classification of cost
Cost classification is the process of grouping costs according to their common features or
characteristics. Classification is essential to find out the cost of production.
Objective of classification of cost
1. It helps the management for implementing cost control and decision making.
2. It helps for calculation of cost of production.
3. It helps for valuation of work-in-progress.
Element wise classification
Cost classified on the basis of element wise is as follows
1. Material cost
2. Labor cost
3. Expenses
Material Cost:
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This is the cost of commodities supplied to an undertaking.(I.C.M.A) Materials
are further divided in to two parts (1) Direct materials (2) Indirect materials.
1) Direct materials: Direct materials are those materials which can enter into and
form of the finished product. Direct materials cost is the which can be
conveniently identified and allocated to cost units.
2) Indirect Materials: Indirect materials are those materials which cannot be
conveniently identified with cost units.
Labor cost:
These are costs of remuneration, such as wages salaries, commission, bonus etc.
Of the employees of an undertaking
1) Direct wages: Wages paid to laborers who are directly engaged in converting
raw materials into finished products. It is also called Direct Labor, Productive
Labor, and Prime cost.
2) Indirect Labor: Indirect labor is not directly engaged in the production of
goods but only to assist or help in production of goods or services.
Expenses:
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The expenses means the cost of services provided to an undertaking and the
notional cost of the use of owned assets. In other-words costs other than the material and
labor are called expenses.
Direct Expenses: Direct expenses are those expenses which can be specifically incurred
in connection with a cost unit. E.g. hire of special plant for a particular job.
Indirect expenses: Indirect expenses are those expenses which cannot be directly
identified with a particular job.
Overheads:
An overhead includes indirect material, indirect labor, and indirect expenses. In
general terms, overhead comprise all expenses incurred for in connection with the general
organization of the whole or part of the undertaking that is the cost of operation supplies
and services used by the undertaking and including the maintenance of capital assets.
The main groups into overheads may sub divided are as follows.
1. Manufacturing overheads
2. Administration overheads
3. Selling overheads
4. Research and development overheads
5. Distribution overheads.
Function wise Classification:-
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COST ANALYSIS NIRANI SUGARS LTD,
Costs classified on the basis of function wise are as follows:
Production cost or manufacturing cost or work cost
Administration cost
Selling cost
Distribution cost
1. Production cost:
This is the cost which begins with supplying of materials, labor and service
and ends with the completion of production other terms used in this connection
are factory overhead.
Examples:
1) Indirect labor
Foremens salary
Cleaners salary and wages
Gatekeepers salary
Salary of time keeping department
Tools operators wages
Store keeping department salary
2) Factory rent and rates
3) Insurance of factory
4) Consumable stores
5) Indirect materials cost such as cotton waste, nuts and bolts, lubricating oil, nails
etc.
6) Gas, fuel and water, stationery to the factory
7) Depreciation on factory equipment, factory building, plant and machinery
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COST ANALYSIS NIRANI SUGARS LTD,
8) Repairs of factory equipment, factory building and machinery
9) Depreciation on loose tools
10) Laboratory expenses
11) Labor welfare expenses
12) Canteen expenses
13) Over time wages
14) Contribution to workmens compensation fund
2 Administration cost:
This consists of all expenses incurred in the direction control and administration
of an undertaking.
Examples:
1) Salaries of office staff, accounts, MD, GM
2) Directors fees
3) Bank charges
4) Postage stationery telephone
5) Rent rates of office
6) Insurance of office building and equipments
7) Depreciation on office building equipment and furniture
8) Printing charges of office
9) Audit fees
10) Legal charges
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3 Selling cost:
Other expenditures incurred for sales and stimulating demand and for securing
orders are known as selling cost.
Examples:
1. Salaries and commission of salesmen
2. Show room expenses
3. Samples, free gifts
4. Commission to agents or distributors
5. Advertising and Publicity expense
6. Marketing expenses
7. Expenses incurred for recovering the bad debts
8. Subscription to trade Journals and commercial Journals
4 Distribution cost:
It is an expenditure incurred for distributing the goods
Examples:
Packaging cost
Carriage outwards
Warehousing costs, such as repairs, depreciation lighting of warehouse
Loading charges
Dispatch expenses
Shortage of finished goods in warehouse
Finished goods damaged in transit
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COST ANALYSIS NIRANI SUGARS LTD,
Classification according to Behavior:
Some costs are increased or decreased in production directly; some costs remain
unaffected while others change but not in direct proportion to the change in volume of
production.
These are: 1. Variable cost
1. Fixed costs.
2. Semi-Variable or Semi-Fixed costs
Variable cost:
These cost an in direct proportion to the volume of output. Cost per unit will
remain the same. If output increases total variable cost also increases and if output
decreases total variable cost also decreases.
e.g.: Direct materials.
Direct wages
Power
Fixed cost:
The total fixed costs remain unaffected either with the increase or decreases in the
output. But cost per unit goes on changing.
Rent and rates of building.
Depreciation of building.
Insurance.
Interest on capital.
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COST ANALYSIS NIRANI SUGARS LTD,
Municipal taxes.
Fixed cost can be further classified into
1) Committed fixed costs
2) Discretionary fixed costs
1) Committed fixed cost:
Consist largely of those fixed costs that arise from the possession of plant,
equipment & basic organizational structure. For example, once building is elected
and plant is installed nothing much can be done to reduce the costs such as
depreciation.
2) Discretionary cost:
Are those which are set a fixed amount for specific time period by the
management in the budgeting process. These costs directly reflect top management
policies have no particular relationship with the volume of output. These cost
therefore be reduced or entirely eliminated, if the circumstances so require. Examples
of such costs are Research & Development costs advertising & sales promotion costs,
donation management consulting fees etc. These costs are also termed as managed of
programmed costs.
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Semi-Variable cost:
These costs are partly fixed and partly variable. These costs are thus partly
affected by fluctuations in the level of activity.
Examples: Depreciation, Repair & maintenance, Telephone expenses.
Other type of costs:
Decision making costs:
Decision making costs are special purpose costs that are applicable only in the
situation in which they are complied they have no universal application. They need
not tie into routine financial accounts to the accounting rules.
Controllable and uncontrollable cost:
Controllable costs are those which can be influenced by the action of a specific
member of the understanding costs which cannot be so influenced are termed as
uncontrollable cost.
For example the expenditure incurred by the room is controllable by the foremen
in- charge of that section but the hare of the tool room expenditure which is apportioned
to a machine shop cannot be contracted by a machine shop forces.
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COST ANALYSIS NIRANI SUGARS LTD,
Differential, Incremental or Decrement cost:
These are costs which do not involve cash outlay. They are not included in cost
accounts but are important for taking into consideration while making management
decisions. For example interest on capital is ignored in cost account through it is
considered in cost financial accounts. In case two projects require unequal outlay & cash
the management must take into consideration interest on capital to judge the relative
profitability of the projects.
According to ICMA London Costing is the techniques & process of ascertaining
costs These techniques are the rules & regulations to govern or regulate the process of
ascertaining the costs or services. Therefore these rules & regulations are carried from
unit to unit immediately to the industry & formation of policy. Thus costing is a routine
work of cost ascertainment.
Objectives of cost accounting:
f) Ascertainment of cost.
g) Determination of selling price.
h) Cost control and cost reduction.
i) Ascertaining the profit of each activity.
j) Assisting management in decision making.
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COST ANALYSIS NIRANI SUGARS LTD,
Advantages of cost accounting:
a) Discloses profitability of activities.
b) It helps in cost control.
c) It helps in formulating policies.
d) It helps in decision making.
e) It guides in fixed selecting prices.
f) It helps for fixing the standard of efficiency of workers.
g) It facilitates the assessment of tax.
h) It helps to judge the financial position & credit worthiness of the business.
3.3 Cost reduction and cost control techniques used in Nirani Sugars
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COST ANALYSIS NIRANI SUGARS LTD,
1) Avoiding of excessive overtime.
2) Reduced wastage in packaging of sugar.
3) Reduction in transportation cost of sugar cane.
4) Simplification of the process of production.
5) Suitable communication system with telephone intercom.
6) Purchase computer for accounting process.
7) Keeping minimum level of inventory.
8) Effective and economical purchases of materials.
3.4 Difficulties in installation of cost accounting system in Nirani Sugars
Ltd:
Lack of support from top management:
In existing system there is no time for top management to check the regular
accounting process. In this case there is no additional work should be taken in the
company.
Non-co-operation of supervisors:
The sugar is the essential for day-to-day activities so the supervisors have no time
to record the different things related to costs.
Heavy costs:
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COST ANALYSIS NIRANI SUGARS LTD,
For installation of cost accounting system is heavy cost to company. For the
installation of cost accounting system in Nirani Sugars the separate department should be
made.
Difficulties to calculate costs of work in progress in sugar:
There is a difficulty in calculation of work in progress in sugar industry.
Recommendation for installation of cost accounting system:
1) Divide the department according to the revenue producing and non revenue producing
department this helpful in determining cost centers.
2) Simplify the working procedure in each cost center and design suitable and proper
forms and records for each of the departments.
3) Fix the procedure for collection of both cost and non cost data for each center.
4) Fix the standard for incurrence of costs in cost center.
5) Prepare forms, cards reports, and books etc for keeping cost records.
3.5 The following are the cost centers in Nirani Sugars Ltd:
1) Production Cost Center:
a) Packing.
b) Quality control.
c) Boiler section.
d) Storage section.
e) Pan section.
f) Mill section.
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COST ANALYSIS NIRANI SUGARS LTD,
g) Power generation.
2) Marketing Cost Center:
a) Transportation cost center.
3) Administration Cost Centers:
a) Security and maintenance of plant.
b) Human Resource Development.
The following are the cost units of Nirani Sugars Ltd:
Name of the item Cost unit
Sugar cane Per Tone
Sugar Per Quintal
Transportation Per trip / per K.M
Water charges Per thousand Liters
Oil & diesel Per liters
Canteen Per person served
Electricity Per K.W.H.
Boiler Per thousand kilo grams of steam
Material costing
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COST ANALYSIS NIRANI SUGARS LTD,
Year Tones
consumed
Rate per tone Amount
2006-2007 136903.6842 950 130058500
2007-2008 202997.6470 850 172548000
2008-2009 215068 1000 215068000
matrrial cost chart
0
50000000
100000000
150000000
200000000
250000000
2006-07 2007-08 2008-09
Series1
The raw material consumption from the year 2006-2007 - 2008-2009. In case of 2006-
2007 the quantity of sugar cane consumed 136903.6842 tones and it is increased to
202997.6470 and 215068 respectively in the year 2007-2008 and 2008-2009.
Human resource department
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COST ANALYSIS NIRANI SUGARS LTD,
Departments Total no of employees
2006 2007 2008
Administration and HOD 41 43 44
Manufacturing and engineering 340 345 351
Cane department 65 68 70Security office 19 20 22
Civil 7 15 19
Human Resourse department
0
50
100
150
200
250
300
350
400
Administrative
& HOD
Manufacturing
and engineering
Cane Security office Civil
2006-07
2007-08
2008-09
All the department the manufacturing and engineering department having more number
of employees. This increasing trend indicates is a increasing production.
Department wise salary per annum
Departments 2006 2007 2008
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COST ANALYSIS NIRANI SUGARS LTD,
Administration and HOD 1,95,600 2,09,341 2,16,651
Manufacturing and engineering 7,50,596 7,90,900 8,07,175
Cane department 1,60,156 1,80,300 1,95,200
Security office 42,000 45,000 48,000
Civil 41,000 43,300 46,000
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
Administrative
& HOD
Manufacturing
and engineering
Cane Security office Civil
2006
2007
2008
Over heads
Particulars 2006-2007 2007-2008 2008-2009Factory overhead 9,180,600 15,972,950 237,300,00
Administration and overheads 1,530,100 2,381,850 3,744,000
Selling and distribution overheads 3,763,937 4,140,990 13,868,850
Total 14,474,637 22,495,790 41,342,850
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COST ANALYSIS NIRANI SUGARS LTD,
0
5000000
10000000
15000000
20000000
25000000
2006-07 2007-07 2008-09
factory over head
administrative over head
selling & distribution over head
Seeing the table the factory over heads increasing considerably it indicates growth in
production. Since the manufacturing and engineering department constitutes major part in
total number of employees and wages the factory overheads also forms major part in total
overheads.
Chapter IV - Cost Statements
4.1 STATEMENT OF COST SHEET OF NIRANI SUGARS LTD
Particulars 2006-2007 2007-2008 2008-2009
Purchase of raw material 130,0585,00 172,548,000 215,068,000
Closing raw material - - -
Raw material consumed 130,058,500 172,548,000 215,068,000
Freight inwards 13,005,850 18,395,725 24,032,400
Prime cost 143,064,350 190,943,725 239,100,400
Factory over heads 9,180,600 15,972,950 23,730,000
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COST ANALYSIS NIRANI SUGARS LTD,
Depreciation on building 1,000,000 1,5000,00 2,000,00
Depreciation on machinery 1,200,000 1,7000,00 2,200,000
Depreciation on electricals 250,000 300,000 350,000
Work cost 154,694,950 210,416,675 267,380,400
Office over heads 1,530,100 2,381,850 3,744,000
Depreciation on computer 50,000 60,000 70,000
Depreciation on office equipments 150,000 2000,00 300,000
Cost of production 156,485,050 213,058,525 271,494,400
Opening stock of finished goods 1,534,065 3,928,720 4,149,800
Less :closing stock of finished
goods
4,090,840 8,839,620 17,337,000
Cost of goods sold 153,928,275 208,147,625 258,307,200
Selling over heads 3,763,937 4,140,990 13,868,850
Cost of sales 157,692,212 212,288,615 272,176,050
Analysis of cost sheet:
Prime cost: The prime cost in 2006-2007 143,064,350 and in 2007-2008 it was increased
to 190,943,725 and 2008-2009 it was increased to 239,100,400 .This cost is increase to
year by year .
Work cost: The work cost in 2006-2007 154,694,950 and in 2007-2008 it was increased
to 210,416,675 and 2008-2009 it was increased to 267,380,400.
Cost of production: The cost of production in 2006-2007 156,485,050 and in 2007-
2008 it was increased to 213,058,525 and 2008-2009 it was increased to 213,058,525.
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COST ANALYSIS NIRANI SUGARS LTD,
Cost of goods sold: The cost of goods sold in 2006-2007 153,928,275 and in 2007-
2008 it was increased to 208,147,625 and 2008-2009 it was increased to 258,307,200.
Cost of sales: The cost of sales in 2006-2007 157,692,212 and in 2007-2008 it was
increased to and in 212,288,615 2008-2009 it was increased to 272,176,050.
Findings:
1. The increasing prime cost is because of is increasing material consumed by the
company.
2. The work cost is increasing by year to year because in factory over heads also
increasing.
3. The cost of production is to increasing because office overheads and depreciation of
office equipments.
4. The cost of goods sold is high increasing in year to year.
5. The cost of sales year by year due to increasing in sales.
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COST ANALYSIS NIRANI SUGARS LTD,
4.2Marginal income statement
Particulars 2006-2007 2007-2008 2008-2009
Sales 58063755 159273632 260120510
Less: variable cost 45818596 130849400 183355675
Contribution 12245159 28424232 76764835
Less: fixed cost 1988986 3128956 4355859
E.B.I.T. 10256173 25295276 72408976
Total cost 47807582 133978356 187711534
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COST ANALYSIS NIRANI SUGARS LTD,
sales cost analysis
58063755
159273632
260120510
47807582
133978356
187711534
0
50000000
100000000
150000000
200000000
250000000
300000000
1 2 3
sales
total cost
The EBIT for the year 2006-2007 was 10256173, in the year was 2007-2008 was
25295276, and in the year 2008-2009 was 72408976. It shows the increasing in EBIT
year to year
Findings of the study
Raw material consumption is increasing. The increase in sugar cane consumption
from the year 2006-07 to 2007-08 was 75.37% and that from the year 2007-08
to2008-09 was 80.22%
Over head of the firm was increasing from the year 2006-07 to 2007-08 was
57.47% and from the year 2007-08 to 2008-09 was 65.20%
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Prime cost of the firm was increasing from the year 2006-07 to 2007-08 was
74.92% and from the year 2007-08 to 2008-09 was 79.85%
Work cost of the firm was increasing from the year 2006-07 to 2007-08 was
73.51% and from the year 2007-08 to 2008-09 was 78.69%
Cost of production of the firm was increasing from the year 2006-07 to 2007-08
was 73.44% and from the year 2007-08 to 2008-09 was 78.47%
Cost of goods sold of the firm was increasing from the year 2006-07to2007-08
was 73.95% and from the year 2007-08 to 2008-09 was 80.58%
Cost of sales of the firm was increasing from the year 2006-07 to 2007-08 was
74.28% and from the year 2007-08 to 2008-09 was 78%
Suggestion:
1. As prime cost, cost of production are increasing in the firm exercise cost
reduction and cost control techniques like material control, labor control,
over head control, capital expenditure control.
2. As the raw material cost is increasing the firm should using new
techniques to reduce it. 1) Like the firm allowed near to the sources of raw
material. 2) Reducing raw material usage in production down time.
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COST ANALYSIS NIRANI SUGARS LTD,
Chapter V - Conclusion
The goal of this primer has been to describe the major principals, concepts and
methods for doing economic analysis of sugar industries. The coverage of these subjects
has been necessary brief.
In this study is attempt to made analyze the cost analysis of the sample unit .Since
the Nirani Sugars Ltd is facing heavy competition in an around area of the region, It is
essential to focus on the aspect of cost, profitability etc
First and foremost, economic analysis provides valuable information to the
planning, design, construction, preservation, and operation of the sugar industry
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COST ANALYSIS NIRANI SUGARS LTD,
infrastructure. The limited supply of transportation rupees must be invested in a manner
that gives the greatest return to the public .The most objective way to accomplish this is
to compare the benefits and costs of transportation projects through the standard unit of
the discounted rupee over the life cycle of projects.
Benefit cost analysis is the most comprehensive method to evaluate the
reasonableness of sugar projects in economic terms. In some cases, when it is clear that a
project must be undertaken regardless of its cost.
Cost accounting is a recent development. It is the branch of financial accounting.
It maintains the records unit wise, process wise, job wise department wise, we can easily
control in reduction of costs by preparation of the statement unit wise or job wise.
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33
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COST ANALYSIS NIRANI SUGARS LTD,
Cost -Benefit Analysis and Health Care Evaluations
by Robert J. Brent -Health & Fitness - 2004 - 400 pages
This book attempts to build a bridge between cost-benefit analysis, as developed
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This book has been designed specifically with the non-economist in
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who may
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by Paul R. Garvey - Technology & Engineering- 2000 - 401 pages
"How much could cost overrun!" "What are the uncertainties and how do they
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Limited preview - About this book- Add to my shared library
Cost-benefit Analysis
by Richard Layard, Stephen Glaister -Business & Economics - 1994 -
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Covering all the main problems that arise in a typical cost-benefit exercise, this
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COST ANALYSIS NIRANI SUGARS LTD,