A

PROJECT REPORT ON

“RATIO ANALYSIS”
OF SUGAR MILL
AT

ASHOK SAHAKARI SAKHAR KARKHANA

TAL. SHRIRAMPUR, DIST.AHMADNAGAR

SUBMITTED TO:

Savitribai Phule Pune University of

In partial fulfillment of the requirement for the award of the
degree of
Master of Commerce

UNDER THE GUIDANCE OF

Prof. Thorat Ganesh

Submitted By

(Miss. Bhadange Kalyani Chandrabhan)

 SAHAKAR MAHARSHI BHAUSAHEB SANTUJI THORAT ARTS,

SCIENCE AND COMMERCE COLLEGE,SANGAMNER ...
(2019-2020)
 DECLARATON

I, the undersigned, hereby declare that the project report entitled RATIO
ANALYSIS at ASHOK SAHAKARI SAKHAR KARKHANA LTD,
AHMADNAGAR written and submitted by me to the University of Pune in partial
fulfillment of the requirement for the degree of Master of Commerce under the
guidance of Prof.Thorat Ganesh is my original work and the conclusions drawn
therein are based material collected by myself.

Place:-Sangamner Miss Kalyani C Bhadange

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 ACKNOWLEDGEMENT

First I would like to thank Mr.Bhanudas K. Murkute, who is Director of A.S.S.K.Ltd.

who gave me an opportunity to complete my project in their organization and also
providing the compensation for the same.

I specially thank Mr.Sitaram D. Kakde(M.D.),without whose proper directions, the

project will never have been completed. He showed me what I have done and what I
needed to do.

I am thankful to Mr.Jalindar L.Gaikwad(Head-Accountant),who provided all the

necessary financial statement and also guided and educated me about the different
accounting perspectives and methodologies.

I also thank my Internal guide Prof. Thorat Ganesh their guidance and
encouragement.

I am also like to express my gratitude to my colleagues, parents & other who have
directly & indirectly help me in many ways to make this project possible.

Place:-Sangamner Kalyani C Bhadanage

3
 INDEX

Chapter Title Page

no. no.
Declaration
Company certificate
Institute certificate
Acknowledgement
List of table
List of graph
List of charts
I Introduction 08-31
1.1 Conceptual Background 09
1.2 Project topic 17
1.3 Company profile 18
1.6 Scope of the study 30
1.7 Objective of the study 31
II Methodology of the research 32-36
2.1 Meaning, definition & type of research 33
2.2 Data sources & Data Collection Methods 34
2.3 Limitations of the study 35
III Data processing & analysis 36

IV Findings 56

V Conclusions 59

VI Recommendations 61

Bibliography

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EXECUTIVE SUMMARY

5
EXECUTIVE SUMMARY

This project report contains a detailed study and analysis of different financial ratios
which are stating the exact financial position of an organization.
I conducted this research in Ashok Sahakari Sakhar Karkhana Ltd., Shrirampur,
Ahmednagar. The factory is producing sugar, ethyl alcohol and ethanol. The
company’s area of operations limited to Shrirampur.
I calculated the ratios and accordingly gave the interpretations, findings, and certain
suggestions on it. Suggestions are given with the relevant data and they are not the
hypothetical one.
I went through a proper training in the duration of my project. I understood how the
work is carried organization; I charted out the management structure for an
organization, and understood the accounting procedures that are being carried out.
The theoretical background for this project report has being extracted mostly from
‘Financial Management’ by I.M. Pandey. Other data has been extracted from different
websites. The management structure of the organization has been charted out by
conducting meetings with employees, collection of details regarding their name,
positions, organizational environment etc.
The continuous guidance on this project was provided by my project guide Mr.R
Gawali Sir The proper implications were possible by their help only.
I have drawn necessary charts and tables with the help of Ms-excel Ms-word. The
observations and interpretations are given after analyzing them for more than one
time. At last some photos are given of the company and the projects they have carried
out till date.

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 CHAPTER 1

INTRODUCTION

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1.1) CONCEPTUAL BACKGROUND
The term used for financial statement analysis and interpretation as follows.
1) Financial statement:-
Financial statement includes the profit & loss account or income and
expenditure account and balance sheet. These statements are prepared to show the
results of operations during a period through the profit and loss account and the
financial position as at the end of that period through the balance sheet. The financial
statement is summarized account of the transactions of the organization for and at the
end of particular period.

2) Financial statement analysis:-

Analysis of financial statement means a systematic and specialized
treatment of the information found in financial statements so as to drive e useful
conclusion on the profitability and solvency of the business entity concerned.
Financial statement analysis is largely a study of relationship among
the various financial factors in a business as disclosed by era single set of statement
and study of the trends of these factors as shown in a series of statement

Importance of the Financial Analysis:

1) It helps in diagnosis of financial health of the firm for the management,
creditors, lending institutions and finally the investors.
2) It helps in evaluation of the financial performance of the company of past,
present and anticipated future.
3) It tries to identify the firm's financial strengths and weaknesses and provides
the essential foundation for financial decision making and planning.
4) Investors are guided in their decisions on the basis of analysis which helps
them to know the earnings potential of the company and the safety of their
investments.
5) Lending organization is more interested in knowing whether the company
would be able to honor its financial commitments. Thus creditworthiness can
be easily judged through financial analysis .It helps in judging the liquidity
position and the solvency of the business enterprise.

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3) Interpretation:-
Interpretation means putting the meaning of a statement into simple
terms for the benefit of a person. Interpretation is the mental process of understanding
the terms of the simple elements resulting from the analysis of the compounded
financial statement and forming opinions aspects of a business enterprise.

The Principal Tools of Analysis:

 
In the analysis of financial statements, the analyst can have a variety of tools on hand
from which he can choose the best suited to his specific purpose. The following are
the important tools of analysis. 

THE PRINCIPLE TOOLS/ TECHNIQUES

OF FINANCIAL ANALYSIS

RATIO FUNDS FLOW CASH FLOW TREND

ANALYSIS ANALYSIS ANALYSIS ANALYSIS

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 1) Ratio Analysis:

This is the important tool available to financial analyst for their work. An
accounting ratio shows the relationship in mathematical terms between two
interrelated accounting figures. The figures have to be interrelated, because no useful
purpose will be served if ratios are calculated between two figures, which are not all
related to each other.

Importance of the Ratio Analysis:

1) It helps to understand the efficiency and performance of the concerned

firm as a whole.
2) It provides insight into the operating and financial strengths and
weaknesses of the firm.
3) It helps to identify potential troubles for the firm. This would impel the
management to investigate those areas more thoroughly.
4) It helps to pinpoint relationships that are not obvious from the financial
statements.

5) It helps to highlight the factors responsible for present state of financial

affairs.

6) It helps to examine the adequacy of funds, the solvency of firm and its
ability to meet the financial obligations as and when they become due.

7) It also helps the shareholders in evaluating the firm’s activities and

policies that affect the profitability, liquidity and ultimately the market
price of the shares.

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 THE CLASSIFICATION OF FINANCIAL RATIO:

S. Type of
Significance
No. Ratio
These are measures of the short-term ability of the
Liquidity
1 company to pay its debts when they come due and
Ratios
to meet unexpected needs for cash
Profitability These indicate the company's operating success i.e.
2
Ratios profitability
These indicate how well the company’s assets are
3 Activity Ratios
managed
Leverage These indicate how much of debt has been used to
4
Ratios finance various investment in different assets
(Table No.1.1)

Features of ratios:-
1) Liquidity ratios concerned with the short term solvency of the concern or
its ability to meet financial obligation on their due dates.
2) Profitability ratios concerned with the profitability of the concern.
3) Activity ratios concerning efficiency of management of various assets by
the concern.
4) Leverage ratios concerning stake of the owners in the business in relation
to outside borrowings or long term solvency.

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2) Funds Flow analysis:
Funds flow analysis has become an important tool in the analytical kit of financial
analysis, credit granting institutions and financial managers. This is because the
balance sheet of the business reveals its financial status at a particular point of time. It
reveals the changes in working capital position. It tells about the sources from which
the working capital was obtained and the purpose for which it was used. It brings out
the changes, which have taken place behind the balance sheet. The information it
contains in the selection, reclassification and summarization of the data contained in
profit and loss account and balance sheet, it is no way replacement of either these
statements. To provide a comparative view of movement of funds by the statement of
changes in financial position is prepared for the period covered by the profit and loss
account as well as the corresponding previous period.
The funds flow statement is a statement in which shows on one hand the sources from
where the funds have been generated and where they have been applied on the other
hand. If these statements are analyzed over a period of time, they clearly show the
sources from where the past activities were financed and also highlight the uses of the
funds. The objectives of a funds flow statement can be summarized as follows:

(i) To help to understand the changes in asset as well as asset sources which are not
revealed by the income statement or balance sheet.

(ii) To find out the uses of loans raised by the business.

(iii) To indicate the financial strength and weakness of the business.

Basically when university considered purpose and future accomplishment of project
(Research) study, the completion of project doesn’t matter, purpose is to analysis and
obtain real working and intellectual knowledge.
Individually the purpose of my project report is to analysis the co-operative
sugar industry in India by the way of financial analysis.  Since the co-operative sugar
and other industries focus only, “Progress through self help” but some time they not
achieve this.  My study is to analysis a particular co-operative sugar industry and
makes suggestions and future financial goals.

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 Since initiation and currently the co-operative industry in India is based upon
co-operative approach.  This traditional approach is unable to generate the desired
benefits and results, hence mostly co-operative institution are in a state of loss and
dependent on the donor agencies and governmental  bodies to run their state of affairs
project (Research) study goes for finding reasons and make suggestion for this
particular co-op. sugar factory.

Every financial manager is involved in financial decision making and financial

planning in order to take right decision at right time, he should be equipped with
sufficient past and present information about the firm and its operations and how it is
changing overtime. Much of this information that is used by financial manager to take
various decisions and to plan for the future is derived from the financial statements.
The project, “financial Statement Analysis and interpretation of A.S.S.K.Ltd.
using the Ratio Analysis” focuses to analyze the financial statements and to study
different ratios over the period of 3 years to determine the financial position of
A.S.S.K.Ltd.Ashoknagar. Financial analysis involves the use of various financial
statements. These statements do several things. First, the balance sheet summarizes
the assets, liabilities and owners equity of a business at moment in time, usually the
end of a year or a quarter. Next the income statement summarizes the revenues and
expenses of the firm over a period of time while balance sheet represents a snapshot
of the firm s financial position at a moment in time.
Financial management is planning and controlling of financial resources of a
firm with a specific objective. Since, financial management as a separate discipline is
of recent origin, it is still in a decline stage. It is very important for an organization to
manage its funds effectively and efficiently.
Financial management has assumed greater importance today as the financial
strategies required to survive in the competitive environment have become very
important. In the financial markets also new instruments and concepts are coming and
one must say that a finance manager of today is operating in a more complex
environment. A study of theories and concepts of financial management has therefore
become a part of paramount importance for academics as well as for practitioners but
there are many concepts and theories about which controversies exist as no
unanimous opinion is reached as yet.

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 The project,” Financial Statement Analysis and interpretation of A.S.S.K.Ltd.
using the Ratio Analysis Tool and fund flow analysis” further aims at discussing and
understanding the concepts of financial management of A.S.S.K.Ltd; the functions
expect to be performed by the financial management as well as the objectives of
financial managements.

Nature of financial statement Analysis:

Financial Statement Analysis consist of the application of analytical tools and

techniques  to the data in financial statements in order to derive from them
measurements and relationships that are significant and useful for decision making.
The process of financial analysis can be described in various ways, depending on the
objectives to be obtained. Financial analysis can be used as a preliminary screening
tool in the selection of stocks in the secondary market. It can be used as a forecasting
tool for future financial conditions and results. It may be used as a process of
evaluation and diagnosis of managerial, operating or other problem areas. Above all,
financial analysis reduces reliance on intuition, guesses and thus narrows the areas of
uncertainty that is present in all decision making processes. Financial analysis does
not lesson the need for judgment but rather establishes a sound and systematic basis
for its rational application.

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 1.2 SELECTION OF TOPIC FOR STUDY

Topic selection is of the most or one of the important aspects of our project.
As it decide the course of action, to be followed. The topic selected should be such
that it helps in understanding the ratio concepts clearly, as was given the topic by the
organization itself.

The topic given by my project guide was “RATIO ANALYSIS” this covers
all the things related to the ratio analysis provided by the organization.

1.3) COMPANY PROFILE

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 3.1) HISTORY OF A.S.S.K. LTD:-
Before giving into actual establishment of this factory, directly trace on the
success of the idea of Pravaranagar in Bombay State during 1948 to 1954.
Pravara Experiment
The first cooperative sugar factory to be set up in Maharashtra was the Pravara
Cooperative Sugar Factory at Ahmednagar. Ahmednagar district already had six joint
stock companies - three of them in Kopergaon Taluka. There was rampant
exploitation of sugarcane farmers by owners of the joint stock companies. The joint
stock companies were given on long lease the land of large number of small
cultivators at a very nominal rent of Rs.1/- per annum/acre. On this, the joint stock
companies established their own large sugarcane estate and made huge profits. The
joint stock companies paid very low price for the sugarcane and as it was not binding
on them to purchase all the sugarcane grown, the cane growers had to very often burn
their sugarcane fields thus making them bankrupt. As there was no irrigation worth
the name and as rainfall was scanty, the Pravara area was barren. Although the
Pravara canal had come into existence in 1910, the farmers had not taken to canal
irrigation. Because of the exploitation of the joint stock companies and deriving
impetus from the Malis of Saswad village, who had made use of the Neera Canal and
prospered, the farmers of the Loni area under the leadership of Padmashree Dr. Vikhe
Patil and guidance of Prof. D.R. Gadgil, Dr. Vaikunthabhai Mehta and help of

16
Maharashtra State Cooperative Bank which helped in the collection of share capital,
registered the Pravara Cooperative Society and set up the Pravara Cooperative Sugar
Factory with a capacity of 500
TCD in 1950-51. Since then it has expanded three times until in 1976-77 when
it reached its present capacity of 4000 TCD. Despite the shortage in irrigation
facilities, the society with the help of lift irrigation projects increased sugarcane
production and consequently this led to the prosperity of farmers.
In local farmer’s abounded Belapur road in Ahmednagar district were
encouraged to peruse the idea of co-operative sugar factory by the local official held
conference of local farmers at Belapur road on 17th Dec. 1945 under the president ship
of Dr.Dhanjayrao Gadgil the veteran economist of Poona.
The successful working & tremendous progress of Pravara Sahakari Sakhar
Karkhana Ltd., Pravaranagar encouraged the farmers around the area of cultivated
more sugarcane to meet this problem Govt. indicates 12 sits which were considered
suitable for the establishment of sugar factories in Maharashtra, subsequently in the
year 1954 this ‘Ashok Sahakari Sakhar Karkhana Ltd., Ashoknagar’ (ASSK) granted
industrial license registered No.264 dated on 1/12/1 954.

3.2) PRODUCTS PROFILE OF A.S.S.K. LTD:-

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 1) Sugar:-
Company main production is sugar. Company produces mainly three type
of sugar. Company’s production of sugar in every crushing season is
approximately five to six hundred tons. Normally company produce following
type of sugar:

a) Raw Sugar: Raw sugar is less processed than other kinds of sugar. It still
contains molasses because it has not reached the point where it would have
been removed to create other sugars, like granulated sugar.
b) Coarse Sugar: This variety of sugar is known for its larger granule size and
round shape. It is often used for decorating
c) Superfine Sugar: Superfine sugar has extra-small crystals, but is in every
other way like granulated sugar. This type of sugar is quick to dissolve.

3.3) PROCESS OF SUGAR PRODUCTION:-

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 CANE

PREPARATION (KNIVES AND FIBRIZOR)

MILLING

RAW JUICE

HEAT (70oC)

SULPHITATION (SO2 & MILK OF LIME ADITION PH=7.0)

HEAT (102OC)

CLARIFIER (SETTLER)

EVAPORATION (CONCERNTRATION)

SYRUP

SULPHITATION (SO2 GAS ADDITION PH=5.0)

VACCUM PANS (GRYSTALLISATION)

MASSECUITE

CRYSTALLISERS

CENTRIFUGALS

SUGAR

GRADING

BAGGING

2) ETHYL ALCOHOL:-
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 Ethyl alcohol is one of the co- products of the sugar industry. It is
made directly from sugarcane or from Molasses, which still contain some
sugar, but this sugar cannot be extracted using current technologies. These
Molasses are fermented with yeast to give ethyl alcohol. The mixture is then
distilled to separate the alcohol from the mixture. Thus separated alcohol is
about 95% pure and finds uses in pharmaceuticals, potable uses, industrial
uses, and it can be further purified to about 99.5% purity to give Fuel Ethanol
A.S.S.S.K. Ltd has a capacity of producing 30,000 liters of alcohol
everyday which begins from 26/3/1994.

3.4) SERVICES OF A.S.S.K. LTD:-

1) Computerization :-
Special computer system is provided by the factory which is helpful
for all of the workers and employees. By this system working speed of
employer is increased and accuracy is maintained.

2) Artificial Hybridization Of Animal (Cow)

By using artificial breeds development of cows is run by the Indian
agriculture society, urulikenchan, and pune. It is an unprofitable scheme, but
only for the running for wealth of farmers, this scheme run from the factory.

3) Ambulance Facility :-
Ambulance facility for the employee as well as people of factory,
available at low price or rental.

4) Firefighter :-
Company provides a firefighter for protecting of all product equipment as
well as whole the area of the company. It run by fully trained staff

5) Insurance For The Members And Employees Of The Factory :-

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 National insurance company kopargaon is providing the insurance by under
the factory. In the year of the 2008-2009, covering of insurance for the members
and employees, in this year six member of factory are facilitated one lakh per
member.

3.4) GROWTH AND DEVELOPMENT SCHEME OF SUGARCANE:-

1) Bioearth compost distribution:-

Bioearth compost made by mixing of distillery waste, culture and press Dom
of sugarcane. After making of this distribute in to members or farmer which is
attached to the factory. In the year of 2008- 2009 distribution of 10,789.990 metric
tone of compost.

2) Guarantee scheme of purchasing of seeds of sugarcane:-

In the year of 2010-2011 factory gives the seeds of sugar cane up to
Rs. 1, 46, 58,195.00 by guarantee.

3) Pest control solution:-

For controlling of the pest & insect contamination factory provide the
pesticides and insecticides by credit or some time free also. They give folderol and
Thematic of price Rs.11, 13,768 in the year of 2010-2011.

4) Crane:-
Cleaning of wells and removing of the sewage from the wells of farmers
which are the members of the factory, providing crane machine. It is a helpful
business factory from the farmers and getting of income from craning Rs. 1,
42,125. It is no profit no loss business of the factory for the farmers.

5) Finance for the improvement quality of sugarcane and needs of farming of

sugarcane.
In the year 2010-2011 territory of the factory supply creditable finance to
the farmers which are need and an amount is Rs. 44, 53,550 only.

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6) Subsidies for the sprinkling:-
For the factory affiliated variety of sugarcane, giving the subsidies on
the sprinklers and pipes. And farmers achieving target of production of sugarcane
is in twenty five metric tones in 1 hector are specially awarded.

Factory attached /merged seeking & units:

1) Industrial and agricultural society Ashoknagar :-

`It provides all technical knowledge as well as factory territory area. It runs
ITI under the government of Maharashtra and services available in there.

2) Farming institution under management of the company :-

i) Rural development society Ashoknagar.
ii) Agricultural and Development Corporation.
iii) Ashok education society Karegaon.
iv) Swatantra Sainik plot Takalibhan(freedom fighter)
v) Muzzid ( mosque) gifted plot Takalibhan
All these are use by production of fruits trees and seeds of sugarcane.

4) Ashok rural education society:-

Under this society Company runs junior and senior college of arts, science,
and commerce in Ashoknagar from 2001 year. It also run most of the playing
and sports activities..

5) Ethanol project:-
Company also runs a separate project of by product ethanol. In they
produce of 30,000 liters of alcohol on daily bases.
Profit is given from this project 2010-2011 is Rs.221.00 lacks.

6) Ashok bazaar sankul (Ashok malls):-

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 For all the peoples of territory as well as employees of company all the
thinks are available under one root in Ashok bazaar sankul with low prices.

7) Ashok Gym:-
Well equipped gymkhana and library with the number of books
presented in the campus of Ashok karkhana a daily newspaper available on
there.

3.5) FUTURE PLAN / GOALS OF THE COMPANY/ FACTORY:-

1) Country wine:-
Submitted the project wine to government and it’s started as early as
possible.

2) Winning project:-
To produce directly wine from the cane juice.

3) Grain base distillery project:-

To produce the ethanol from the grained like jwar and maze.

3.6) SHARE CAPITAL:-

The shares of the factory are issued from cane cultivator of 37 villages
of Shrirampur Taluka and 4 villages from Newasa Taluka and 24 villages from
Rahuri Taluka. The face value of share is Rs. 5000/-

NO PARTICULARS AMT

1 Authorized share capital 20,50,00,000

2 a) subscribed share capital 5,24,94,475

b)State Government redeemable share 2,36,28000

(Table No.2.1)

3.7) AREA OF OPERATION:-

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 There are 37 villages under the area of factory. These villages are in
the six zones or circular as under-
Table shows the zones as under

Zone no. Name Of Zone Total villages

1 Padhegaon 5

2 Karegaon 7

3 Takalibhan 6

4 Wadala mahadev 5

5 Undirgaon 7

6 Belapur 7

Total 37
(Table No.2.2)

3.8) MANAGEMENT PLANNING & CONTROL:-

In the co-operative sugar factory the board of director is elected from

the share holders and the chairman and vice-chairman are elected from the
board of director.
The co-operative sugar factory enjoys autonomy in administration and
freedom of financial matters however, being public body. It is accountable to
the respective ministry and parliamentary in the co-operative industry
authority. It must be centralized in the hand of the chairman and board of
director.

3.9) DIRECTOR BODY OF A.S.S.K. LTD:-

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Sr. No. Name  of Director Position
1 Mr. S. M..Galade Chairman
2 Mr. M. B. Shinde Vice-chairman
3 Mr. B. K. Murkute Director
4 Mr. .A. R. Bankar Director
5 Mr. R. S. Unde Director
6 Mr. B. A. Kahandal Director
7 Mr. B. D. Unde Director
8 Mr. M. G. Patare Director
9 Mr. M. K. Kapase Director
10 Mr. G. A. Parkhe Director
11 Mr. B. R. Patare Director
12 Mr. K. S. Pawar Director
13 Mr. S. P. Raut Director
14 Mr.D. S. Shinde Director
15 Mr. P. B. Jadhav Director
16 Mr.Y. D.Shejul Director
17 Mr.K. T.Labde Director
18 Mr.R. H. Thorat Director
19 Mr. T. M. Kurhe Director
20 Mr. V. D. Bhosale Director
21 Mr. D. K. Naike Director
22 Mr. K. K. Sathe Director
23 Mrs. M. B. Badakh Director
24 Mrs. S. G. Tuvar Director
25 Mrs. M. S. Take Director
26 Mr. B. K. Adik Director
27 Mr. D. V. Peese Director
28 Mr. M S. Jagdhane Technical Director
29 Mr. L. H. Patel Invited Director
30 Mr. K. P. Gorane Invited Director
31 Mr. H. M. Dumal Invited Director
32 Mr. B. V. Daund Worker Director
33 Mr. B. N. Kolse Worker Director
34 Hon.Pradeshik Sah. Sanchalak Member (M.S.Govt.)

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 (Sakhar)
Representative of
35 Mr.S. T. Deshmukh MH.ST. CO.Bank
36 Mr. Sitaram D. Kadade Managing Director
(Table No.2.3)

3.10) LOCATION:

Ashok Sahakari Sakhar Karkhana Ltd., Ashoknagar is situated at Ashoknagar,

Tal.Shrirampur, and Dist. Ahmednagar for the proper prospective of the history of
Karkhana Nipani Wadgaon the village where this factory is situated on Pravara Left
Bank Canal.  The Irrigation of Pravara Left bank. The irrigation of pravara left bank

26
canal has played a major part in this change. Factory is situated near central railway
line on Daund-Manmad route flag railway station Nipani Wadgaon.
This Factory is previously named as Karegaon Bhag Sakhar Karkhana ltd. is
registered under the co-operative societies act on 1-12-1954 with the registration
no.264

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1.6) SCOPE OF THE STUDY

1. The study will help to analyze the probable casual relation among different
financial items after analyzing the past result
.
2.It will help to analyze whether the firm is improving or deteriorating over a number
of years.

3. It will throw light on the degree of efficiency of the management and the utilization
of the assets.

4. The project will be helpful for company in planning and forecasting activities

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1.7) OBJETCTIVE OF THE STUDY

1. To determine the financial position of the organization.

2. To study, analyze and interpret the different ratios.

3. To provide suggestions to the organization by interpreting the ratios to maintain the

financial position of the business sound enough.

4. To help the management to prepare budgets, to formulate policies and to prepare a

future plan of action.

5. To compare the past results and to prepare a progress report.

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 CHAPTER 2
METHODOLOGY OF THE RESEARCH

30
RESEARCH METHODOLOGY

“Research is the plan, structure and strategy of investigation conceived so as to obtain

answer to research question and control variance,
It acts as base for the collection, measurement and analysis of data.”

2.1) TYPE OF RESEARCH

I have use the qualitative research method for my project work.

Qualitative Research

In the qualitative research often uses projective technique designed attitudes,

opinions, feeling & experiences. Among these techniques are word or picture
associations, sentence, completion. Participant preparation and actual qualitative
session themselves often include various creativity session and exercise.
Qualitative Research is collection, analyzing, and interpreting data by
observing what people do and say. Whereas, quantitative research refers to count and
measures of the meanings, concepts, definition, characteristics, metaphors, symbols,
and descriptions of things.

2.2) METHOD OF DATA COLLECTION

There are mainly two methods used for data collection

1) Primary data
2) Secondary data

PRIMARY DATA COLLECTION METHOD

Data that is collected that for the specific purpose at hand is called primary
Data. Following methods are used to do this project.

QUESTIONNAIRE:

 I have collected the information regarding organizations history, its

management structure, their future goals,etc
 Information regarding financial history and financial position of the business
was collected from the internal auditor of the organization.
 The information gathered here is about firm, understanding the business and
policies of firm related to finance.
 For critical Analysis of financial statements of A.S.S.K. LTD. questions were
asked to the Head Of Department, project guide and other staff for the relevant
information.

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 INTERVIEW METHOD:

 The information regarding company management, its efficiency specific

achievement ,awards and recognitions etc is collected by way of interview
with
The employeeS.

 The data regarding suggestions of employees towards management were taken

and submitted the some to the management of the concern.

SECONDARY DATA COLLECTION METHOD

Secondary data highlights the contextual familiarities for primary data collection. It
provides rich insight into the research process.
Secondary data is collected through following sources.

INTERNET:
The data containing information regarding ratio analysis,formulae,figures,charts
diagrams,etc.is been picked up from the internet, through Google search engine.

Publish Source:

 The secondary data is collected with help of documents available with the
company. i.e Balance sheet (Asset and Liability)
 It include Annual report of the company, Accounting and Financial
Records, Records from Finance Manager etc. Most of the information was
collected through the secondary data.
.
Data Processing and Analysis-

This is the next step in study where the collected data was arranged in sequential and
appropriate manner. Here, data was first edited followed by data classification and
tabulation.
In interpretation of data ,inferences were drawn from data analyzed.

32
2.3) LIMITATIONS OF THE STUDY

1. Only few financial and statistical tools are used in the analysis.

2. People didn’t provided correct data due to some regulation of the organization.

3. My study was limited to three years.i.e.2007-2010.

4. There is no another Sugar factory in Shrirampur Taluka, Thus there is

limitations to get data of another Sugar factory.

33
 CHAPTER 3

DATA PROCESSING,
ANALYIS AND INTERPRETATION

34
DATA ANALYSIS AND INTERPRETATION

Several ratios calculated from the accounting data can be grouped in to

various classes according to financial activities or functions to be evaluated. The
parties, which generally undertake financial analysis, are short term and long term
creditors, owners and management. Short term creditor s main interest is in the
liquidity position or the short term solvency and profitability of the firm. Similarly
owners concentrate on firm Profitability and analysis of the firm s financial positions.
Management is interested in
Evaluating every aspect of the firm s performance. They have to protect the interest of
the Parties and see that the firm grows profitably.
One of the ways of classification according to the following basis is more
effective for analyzing and interpreting the financial statements:

RATIO ANALYSIS:-

DATA ANALYSIS AND

INTERPRETATION

PROFITABILITY FINANCIAL
RATIO RATIO

35
1) PROFITABILITY RATIO:-
1.1) Gross Profit:-

                     Gross Profit ratio is the ratio that is calculated as the difference between
Net sale and cost of goods sold. This ratio shows the margin left after meeting the
Purchase and manufacturing costs. It measures the efficiency of production as well as
Prizing. A high gross profit ratio means a high margin for covering other expenses
like Administrative, selling and distribution expenses, i.e. other than the cost of goods
sold. There fore, higher the ratio, the better it is. It is also important for a business to
maintain This ratio on a higher side, otherwise it will be difficult to cover other
expenses. Intra-firm comparison can also be done with the help of  Gross Profit ratio.

Formula:-                             

GROSS PROFIT
GROSS PROFIT RATIO =-------------------------- * 100
SALES

Example:-                           
                                                         2354.62
                    Year 2019-20 = ------------- * 100
                                               12749.20   
                                                    

=   0.18

(Fig. in lacs)

36
 Year Gross Profit Net Sales Gross Profit
Ratio (%)

2017-18 525.45 5841.86 0.08

2018-19 1393.51 8211.99 0.16
2019-20 2354.62 12749.20 0.18
(Table No.3.1)

0.18
GROSS PROFIT RATIO
0.18 0.16

0.16

0.14

0.12

0.1 0.08
PERCENTAGE
0.08
0.06
0.04

0.02
0
2017-18 2018- 2019-20
2019
YEAR

(Graph No.3.1)

 Interpretation:-
 
                    As the companies gross profit ratio is increasing in the financial years. It
means the company has success to maintain the margin of covering the
administrative, selling and distribution expenses. The company shows the higher
gross profit ratio hence it shows that its financial position is good.

1.2) Net profit: -

37
                      This ratio shows the earnings left for shareholders as a percentage of net
sales. It measures overall efficiency of all the functions of a business firm like
production, administration, selling, financing, pricing, tax management etc This ratio
is very useful for prospective investors because it reveals the overall profitability of
the firm. Higher the ratio, the better it because it gives an idea of overall efficiency of
the firm

Formula: -   
   
NET PROFIT
NET PROFIT = ---------------------------*100
RATIO SALES

Example:-                                                  1342.62

                              Year2019-20 = ----------------- -- *100
                                                                 12749.86

= 10.53
Year Net Profit Net Sales Net profit
Ratio (%)
2017-18 19.03 5841.86 0.33

2018-19 220.60 8211.99 2.67

2019-20 1342.62 12749 10.53

(Fig in lacs
(Table No.3.2)

38
 NET PROFIT RATIO

12 10.53

10

PERCENTAGE 6

4 2.67

2 0.33
0
2017-18 2018-19 2019-20
YEAR

(Graph No.3.2)

  Interpretation:-
As the higher Net profit ratio indicates the good performance & efficiency of the
company. The main reason of increasing performance is inflation in price of sugar.

1.3) Return on Equity: - 

39
                          
  This ratio also known as return on shareholder’s fund or return on proprietor’s funds
or return on net worth indicates the percentage of net profit available for equity
shareholders to equity shareholder’s fund. In other words, this ratio measures the
return only on equity shareholders fund & not on total capital employed like ratio
number (v). 

Formula: -
NET PROFIT(AFTER TAX & DIVIDEND
RETURN ON EQUITY=---------------------------------------------------------* 100
EQUITY SHAREHOLDERS FUND

Note: - Equity shareholders fund = Equity capital + Reserves & surplus  

      This ratio indicates the productivity of the owned funds employed in the firm.
However, in judging the profitability of a firm, This ratio indicate whether the amount
of capital employed is properly utilized or not. Higher the ratio, more efficient use of
capital employed, the better will be the managerial efficiency and profitability of
business.

Example: - 

                                                           1342.63

                            Year 2019-20 = -------------------------- x 100
                                                           3838.53 

                                                  = 35.00

 
                                                 
                                                          (Fig. in lacs)
Year Net profit Equity shareholdersReturn on
fund Equity (%)

40
 2017-18 19.03 3128.21 0.60

2018-19 220.60 3386.94 6.50

2019-20 1342.63 3838.53 35.00

(Table No3.3)

RETURN ON EQUITY
35
35
30
25
20
PERCENTAGE
15
10 6.5
5 0.6
0
2017- 2018- 2019-20
2018 2019
YEAR

(Graph no.3.3)

Interpretation: - 
                           As we can see in the above chart in financial year 2019-20 , the
company had very good returns as compare to 2018-19.so the graph shows the higher
percentage in 2009-10.The reason behind it is increasing performance is inflation in
price of sugar.

1.4) Return on Total Assets: -              

                    Return on asset relates net profit to total tangible asset. It measures how
profitably the firm has used its assets. It suggests the contribution of fixed assets in

41
the overall profitability of the business. Higher the ratio, better will be the overall
profitability of the business.

Formula: -               

  NET PROFIT (AFTER TAX)

RETURN ON TOTAL =---------------------------------------------- * 100
   ASSET TOTAL ASSET
      
  If the ratio is lower than the industry average, it would mean that the firm is
not utilizing its assets as profitably as many of its competitors. It shows whether the
investment in fixed asset is in line with the sales volume; in other words, whether
there is excessive investment or inadequate investment in asset. 

Example: - 

                                         1342.62

Year 2019-20 = ----------------x 100
                             14544.16
                       

                       = 7.44

  (Fig. in lacs)
Year Net Profit (after tax) Total Assets Return on Total
asset (%)
2017-18 19.03 14544.16 0.13

2018-19 220.60 14037.93 1.57

42
 2019-20 1342.62 18036.92 7.44

(Table No.3.4)
  
 
 

RETURN ON TOTAL ASSET

7.44
8
7
6
5
PERCENTAGE 4
3
1.57
2
1 0.13

0
2017-18 2018-19 2019-20
YEAR

(Graph no.3.4)
Interpretation: - 
                      The Return on total asset means the ratio of Net profit after tax
to total asset. The higher the ratio good for the company. In the above figure
the ratio is increasing figure. i.e. graph shows upward position hence it shows
satisfactory position of company.

2) FINANCIAL RATIOS:-

2.1) Current Ratio:-     

                                       This ratio indicates the company’s ability to meet current
liabilities. All current asset cannot be converted immediately into cash for a number
of reasons so for maintain goodwill of firm, in respect payment of liabilities, some

43
provision had to be made. Therefore the amount of current assets must be higher than
the amount of current liabilities.
Formula: -
 
  CURRENT ASSET
          CURRENT RATIO = -----------------------------------------
                   CURRENT LIABILITIES

Current ratio indicates the availability of current Assets against current

liabilities Higher the ratio the better the coverage. Traditionally, it is also called 2:1
ratio i.e. 2 is the standard for current assets for each unit of current liabilities.
Generally, the level of current ratio very from differs from the industry ratio because
of its policy.

Example: -
                                                       9150.57       
                            Year 2019-20 = --------------------      = 1.70   
                                                          5375.60 
      (Fig. in lacs)
`Year Current Asset Current Liability Current Ratio

2017-18 5768.96 2986.42 1.93

2018-19 5883.88 3838.30 1.51

2019-20 9150.00 5375.60 1.70

(Table No3.5)

44
 CURRENT RATIO

1.93
2
1.7
1.8
1.51
1.6
1.4
1.2
VALUES 1
0.8
0.6
0.4
0.2
0
2017-18 2018-19 2019-20
YEAR

(Graph no.3.5)
  Interpretation: - 
                  In financial year 2017-18 current ratio is 1.93 means it very close to
standard, but in 2017-18 it reduce up to 1.54 it shows poor position of company & in
year 2019-20 it increase up to 1.7 .
Hence it means that liability of company is increase mover than increase
the assets of the company .Hence it shows that the position of company in terms of
current ratio is getting weaken.

45
 2.2) Liquid / Quick / Acid Ratio: - 

              This ratio is a better tool to measure the ability to honor day-to-day
commitments. It is ratio between the liquid Asset & liquid liabilities. From the
Balance sheet, deducting inventories & prepaid expenses from current asset calculate
liquid asset. Liquid liabilities are current liabilities less bank overdraft. 

Formula: - 
                                                                     
LIQUID   ASSET
  LIQUID ASSET =-------------------------------------
LIQUID LIABILITIES
  LIQUID
ASSET= Current asset – Inventory – Prepaid expenses

LIQUID LIABILITIES= Current liabilities - Bank overdrafts

              The ideal liquid ratio is considered to be 1:1, which means that liquid current
assets should be equal to the liquid liabilities. This ratio indicates whether the firm has
the ability to pay its short-term liabilities or not. 

Example: -

                                                                      8717.66        

                                          Year 2019-20 = ----------------------
                                                                          5375.60                                       

                                                                = 1.62

        
(Fig. in lacs)

46
Year Liquid Assets Liquid Liabilities Liquid Ratio

2017-18 5383.43 2986.42 1.80

2018-19 5601.73 3886.30 1.44

2019-20 8717.66 5375.60 1.62

(Table No3.6)

LIQUID RATIO
1.8
1.8 1.62
1.6 1.44
1.4
1.2
1
Value
0.8
0.6
0.4
0.2
0
2017-18 2018-19 2019-20
YEAR

(Graph no.3.6)         

Interpretation: - 

                            The quick ratio means the ratio between liquid Assets to liquid
Liabilities. The ideal ratio is 1: 1 that is the liquid Asset should equal to liquid
liabilities. But in the above figure it is quite more. the liquid assets one mover than it
is needed. Hence there is the excess investment in liquid Asset.  

2.3) Proprietary ratio:-

47
 It is primarily the ratio between the proprietors funds and total asset. This is a
variant of the debt-to-equity ratio. It is also known as equity ratio or net worth to
total assets ratio. This ratio relates the shareholder's funds to total assets.
Proprietary / Equity ratio indicates the long-term or future solvency position of the
business. A higher percentage denotes the stronger the financial position of the
enterprise.,

Formula:-

PROPRIETORS FUND
PROPRIETORY RATIO=------------------------------------
TOTAL ASSET

Example:-
                                         3838.53
                                          Year 2019-20 = ----------------------
                                                                        12749.20   

= 0.30

              
(Fig. in lacs)
Year Proprietors fund Total asset Proprietory ratio

2017-18 3128.21 14544.16 0.22

2018-19 3386.94 14037.93 0.24

2019-20 3838.53 12749.20 0.30

(Table no.3.7)

48
 PROPRIETORY RATIO
0.3
0.3
0.24
0.25 0.22

0.2

VALUES 0.15 c

0.1

0.05

0
2017-18 2018-19 2019-20
YEAR

(Graph no.3.7)

Interpretation:-  
This ratio indicates the proportion of proprietors fund used for
financing the total ratio. It is found that ratio is less in 2007-08.but in next
two years it is increased from 0.24 & 0.30 respectively. it is good sign for
company. But company have to concentrate to improve there propriety ratio.

49
 2.4) Debt equity ratio:-
This ratio is calculated to measure the comparative proportion of
borrowed funds & shareholders’ funds invested in the firm. A firm raises funds
through owned funds, which are also called as shareholders’ funds or proprietors’
funds as well as borrowed funds. The normal standard norm for such ratio is 2:1.

Formula:-

LONG TERM DEBT

DEBT EQUITY RATIO =--------------------------------
SHAREHOLDERS FUND

Example:-
                                         1900.05
                                          Year 2009-10 = ----------------------
                                                                              3838.53

= 0.50
         (Fig. in lacs)
Year Long term debt Shareholders fund Debt equity ratio

2017-18 2653.87 3128.21 0.85

2018-19 2372.57 3386.94 0.70

2019-20 1900.05 3838.53 0.50

(Table no:3.8)

50
 DEBT EQUITY RATIO

0.85
0.9
0.8 0.7
0.7
0.6 0.5
0.5
VALUES
0.4
0.3
0.2
0.1
0
2017-18 2018-19 2019-20
YEAR

(Graph no.3.8)

Interpretation:-
Debt to total equity ratio of ASSK Ltd is decreasing year by year. in 2008-10
i.e.0.85,0.70&0.50 respectively. This is good indicator for business. Our
evaluations of the debt to total equity ratio suggest that ASSSK Ltd debt to
total equity is currently lower than the previous year.

2.5) Current asset to fixed asset:-

51
 This ratio shows the proportion of current assets to fixed assets. As described
in current ratio, current assets are held for converting them into cash in a short
period of time while fixed assets re held for long term purposes,

Formula:-  
CURRENT ASET
CURRENT ASSET TO FIXED ASSET RATIO=- ------------------------
FIXED ASSET

Example:-

                                  9150.51    

                                          Year 2019-20 = ----------------------
                                                                      4529.12  

= 2.02

(Fig. in lacs)
Year Current assets Fixed assets Current assets to
fixed assets ratio
2017-18 5768.96 3975.87 1.45

2018-19 5883.88 4121.12 1.42

2019-20 9150.51 4529.12 2.02

(Table no.3.9)

52
 CURRENT ASSET TO FIXED ASSET

2.5
2.02
2

1.45 1.42
1.5
VALUES
1

0.5

0
2017-18 2018-19 2019-20
YEAR

(Graph no.3.9)
Interpretation:
Current asset to fixed asset ratio in 2017-18 is 1.45,in 2018-19 it get
down up to 1.42 but in 2019-20 it goes on up to 2.02 .It means company start
utilized its fixed assets properly.

53
 CHAPTER 4
FINDINGS

FINDINGS:

54
 . Following are the Finding I observed during this Project / Study.

RATIO ANALISIS

1) PROFITABILITY RATIO :

 The ratio of Gross Profit to Sales has reduced in 2017-18 due to decrease in
sales price, but in the year 2018-19 & 2019-20 gross profit ratio shows
increasing trend because of increase in sales price of sugar & other products.

 Net profit ratio during financial year 2017-18 was 0.33 % But in year 2018-
2019 it is 2.67% and in year 2019-2020 it is rising up to 10.53% it is well &
good for the company
 Return on equity Ratio has shown poor result in the year 2017-18.but in
2018-19 there was some improvement up to 6.50%.and in year 2019-2020
ratio increased up to 35% because of increase in profit margin.

 Return on total asset ratio was increased by 1.44% in 2018-19 as compare to

2017-18 & in 2019-20 it goes to 7.44% means it increased by 5.87% as
compare to 2018-19 it shows the efficiency of Management. But for such a big
organization 7.44% is not a good profit ratio for maintain there daily exp’ &
long term exp’.

2) FINANCIAL POSITION

55
 Current Ratio is not constant and decrease all year. The current Ratio for
year 2017-18,2018-19,2019-20 is 1.93,1.51,1.70 respectively. It indicates
decrease in the current assets.
 Quick Ratio is used to the company’s ability to meet its current obligation. It
had decreased by 0.36 in 2018-19 as compare to 2017-18. In year 2019-20
some it improved by 0.22.but it is not satisfactory level.
 Proprietary ratio of the company is increasing proportion in all years. But it
is not as per standard.
 Debt equity ratio is showing slight decreasing proportion year to year of the
company .the ratio of the company for year 2017-2018 was 0.85, for year
2018-19 was 0.70 & for year 2019-2020 it is 0.50 It shows unsatisfactory
result.
 Current Asset to fixed asset ratio is increasing in year to year . Ratio has
shown decrease in year 2018-2019 from 1.45 to 1.42 as compares to year
2017-2018 in year 2019-2020 it is 2.02.

56
 CHAPTER 5

CONCLUSION

CONCLUSION

57
From this project & findings I reached some conclusion on the following points. I
have concluded that:

 From the overall study of company, gross profit ratio & Net Profit ratio are
constantly increasing in the financial years showing the good performance of
the company.
 It shows that company has success to maintain the margin of covering the
administrative, selling and distribution expenses.
 It seems that the position of the company’s current ratio is getting good.
 I can conclude that company’s financial position is a stable one and needs to
be improved continuously.
 The standard set by the company are benchmarking with the other company
but it having not that much potential to reaches the standards.
 The actual performance are not very much effective, it decreases the
companies performance

 The company itself responsible to complete the standard minimum

58
 CHAPTER 6
RECOMMANDATION

SUGGESTIONS AND RECOMMANDATION

59
 After the study of financial statement analysis in A.S.S.K. Ltd. following
suggestion and recommendations are made based on the data analysis and
interpretation of ASSK LTD.
 Company can cover its expenses like administrative by increasing its gross
profit ratio.

 Return on equity ratio shows satisfactory ratio in 2019-20.

 The net profit margins suggest that ASSK’s net income were earned for
each percentage of sales is lower than the industry average. So they should
increase their net profit volume.

 The current ratio of ASSK Ltd. is reducing because their liability is more
than asset so they can increase it by decreasing current liability.

 Company has excess investment in liquid asset than needed so they have to
decrease their high investment in liquid asset. The ideal ratio is 1:1 that is the
liquid asset to liquid liabilities.

 Company has high reserve and Surplus they can use it for repayment of loan to
decrease interest burden which will have positive effect on Net Profit.

60
BIBILOGRAPHY

61
 BIBILOGRAPHY

 I.M.Pandey, Financial Management, Vikas publishing house (p)

ltd. Mumbai 2009.

 Prasanna Chandra ,Financial Management, Mc-Grew hill

Publishing company ltd,2008

 Sujit Sikider , H.C.Gautam, Financial Statement analysis, New

center book Agency (P) Ltd. Jan2006.

62
ANNEXURE

63
 ASHOK SAHAKARI SAKHAR KARKHANA:

BALANCE SHEET AS ON 31ST MARCH 2017

(Fig in lacs)
CAPITAL AND SCH ASSET AND SCH
LIABILITIES NO. 31/03/17 PROPERTIES NO. 31/03/18
1)Authorized share 1) Cash and bank
capital 1 1025.00 balance    
a) Paid up capital   490.73 a) cash in hand   0.74
Reserve & surplus 2 2637.48 b) cash at bank 10 342.21
3)secured loan 3   2) Investment 11 148.65
3)Advances & other
a) Capital(term)loan   2336.44 Receivable    
b)Working capital loans   4751.58 a) Advances 12 2.03
4)Unsecured loans 4   b)security Deposits 13 62.37
by product division   317.43 c)Other receivable    
5)Deposits 5 931.71 i) sugar division 14 1606..76
6)Current liabilities &
provisions     ii) By product division   143.40
A) Govt. liabilities 6 91.72 4) Current asset    
B) Recovery from cane
bills & others 7 319.20 a) store stock 15 385.53
C) Other liabilities     b) sugar & by product 16 5383.43
a)sugar division 8 1693.71 5) fixed asset 17 3975.87
6) Preliminary capital
b)By product division     &other expenses    
i) current dues   143.40 a) Ashok Bandhare   123.72
ii) Against Bills b) Wage board
Payable   5.06 difference    
D) provisions 9 393.18 7)Profit & loss Account    
E) provisions for excise
duty & sales tax     Accumulated loss   2369.45
i) sugar   331.93 Add: Current year's loss   00.00
Less: Current year's
ii) molasses     00.00 Profit   00.00 
iii) spirit & ethanol   6.24      
iv) sales tax   1.98      
7)Provisions for
interest payable   92.37      
           
TOTAL   14544.16 TOTAL   14544.16

ASHOK SAHAKARI SAKHAR KARKHANA

64
 BALANCE SHEET ASA ON 31ST MARCH 2018

(Fig in lacs)
CAPITAL AND SCH ASSET AND SCH
LIABILITIES NO. 31/03/18 PROPERTIES NO. 31/03/19
1)Authorized share 1) Cash and bank
capital 1 1025.00 balance    
a) Paid up capital   503.92 a) cash in hand   1.23
Reserve & surplus 2 2883.02 b) cash at bank 10 173.31
3)secured loan 3   2) Investment 11 156.70
3)Advances & other
a) Capital(term)loan   2133.40 Receivable    
b)Working capital loans   3421.03 a) Advances 12 1.87
4)Unsecured loans 4   b)security Deposits 13 56.82
by product division   239.17 c)Other receivable    
5)Deposits 5 877.70 i) sugar division 14 1045.92
6)Current liabilities &
provisions     ii) By product division   324.51
A) Govt. liabilities 6 175.18 4) Current asset    
B) Recovery from cane bills
& others 7 93.67 a) store stock 15 282.15
56
C) Other liabilities     b) sugar & by product 16 01.73
a)sugar division 8 2589.39 5) fixed asset 17 4121.12
6) Preliminary capital
b)By product division     &other expenses    
i) current dues   324.51 a) Ashok Bandhare   123.72
ii) Against Bills b) Wage board
Payable   5.01 difference  
D) provisions 9 413.50 7)Profit & loss Account    
E) provisions for excise
duty & sales tax     Accumulated loss 2369.46 
i) sugar   258.47 Add: Current year's loss  
ii) molasses     Less: Current year's Profit   220.61 2148.85
iii) spirit & ethanol   21.67      
iv) sales tax   4.90      
7)Provisions for interest
payable   93.39      
           
TOTAL   14037.93 TOTAL   14037.93

ASHOK SAHAKARI SAKHAR KARKHANA

BALANCE SHEET ASA ON 31ST MARCH 2019

65
 (Fig in lacs)
CAPITAL AND SCH ASSET AND SCH
LIABILITIES NO. 31/03/19 PROPERTIES NO. 31/03/20
1)Authorized share 1) Cash and bank
capital 1 2050.00 balance    
a) Paid up capital   761.22 a) cash in hand   00.37
Reserve & surplus 2 3077.31 b) cash at bank 10 1218.65
3)secured loan 3   2) Investment 11 563.21
3)Advances & other
a) Capital(term)loan   1702.05 Receivable    
b)Working capital loans   5960.00 a) Advances 12 1.93
4)Unsecured loans 4   b)security Deposits 13 49.18
by product division   198.00 c)Other receivable    
5)Deposits 5 866.46 i) sugar division 14 1283.83
6)Current liabilities &
provisions     ii) By product division   433.89
A) Govt. liabilities 6 133.55 4) Current asset    
B) Recovery from cane
bills & others 7 268.66 a) store stock 15 432.85
C) Other liabilities     b) sugar & by product 16 8717.66
a)sugar division 8 3991.28 5) fixed asset 17 4529.12
6) Preliminary capital
b)By product division     433.89 &other expenses    
i) current dues   a) Ashok Bandhare  
ii) Against Bills b) Wage board
Payable   5.56 difference  
D) provisions 9 198.53 7)Profit & loss Account    
E) provisions for excise
duty & sales tax     Accumulated loss 2148.85 
i) sugar   304.51 Add: Current year's loss    
ii) molasses     00.00 Less: Current year's Profit  1342.62 806.23
iii) spirit & ethanol   34.82      
iv) sales tax   4.80      
7)Provisions for interest
payable   96.28      
           
TOTAL   18036.92 TOTAL   18036.92

66