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PERFORMANCE OF THE SARITA SUGARS LIMITED, PODALAKURU, NELLORE DISTRICT OF ANDHRA PRADESH – AN ECONOMIC ANALYSIS

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Title PERFORMANCE OF THE SARITA SUGARS LIMITED, PODALAKURU, NELLORE DISTRICT OF ANDHRA PRADESH – AN ECONOMIC ANALYSIS
 
Creator KOTI REDDY, G
 
Contributor NEELAKANTA SASTRY, T.V
 
Subject packaging, flavouring, animal husbandry, productivity, application methods, fats, proteins, economic systems, storage, milk products
 
Description The project entitled “PERFORMANCE OF THE SARITA SUGARS LIMITED,
PODALAKURU, NELLORE DISTRICT OF ANDHRA PRADESH – AN
ECONOMIC ANALYSIS” was taken up with the following objectives.
1. to study the existing organizational structure of the Sarita sugars limited.
2. to evaluate the growth and performance of the factory in terms of both
physical and financial indicators and
3. to assess the business performance of the Sarita sugars limited in its
different activities.
The study was conducted in Podalakur, Nellore District of Andhra
Pradesh. The data as per the objectives was collected from the records
maintained by the sugar factory. The secondary data drawn from the audited
annual statements of the balance sheet, profit and loss account and trading
account of the factory for the period of 10 years from 1999 – 2009 were
subjected to rigorous financial ratio analysis.
The financial ratio analysis, being an effective tool in providing the
summation of the performance of the factory, has been heavily relied upon to
evaluate the solvency, liquidity, profitability, turn over and efficiency of the
factory. Data collected were analyzed using simple statistical techniques like
ratios, percentages and averages.
The major findings of the study are
1) There was substantial increase both in the physical indicators (employees,
quantity of sugar produced and quantity of molasses produced) and the
financial indicators (share capital, owned funds, long term investment, net
working capital and total sales).
2) The total number of employees varied from 250 to 350.The total number of
employees is highest (350) in 2007-08.
3) The price/tonne had gone on increasing from Rs.760 in 1999-00 to
Rs.1300 in 2008-09, with 71 per cent increase.
4) The quantity of sugar produced had gone up by leaps and bounds to the
extent of 53.2 per cent during the study period.
5) The quantity of molasses produced increased from 1, 41,795 tonnes in
1999-00 to 2, 15,663.5 tonnes in 2006-07, with 52.1 per cent increase.
6) The factory achieved remarkable progress with respect to share capital,
owned funds, long term investment, net working capital, total sales
amounting to a growth of the order of 2.02, 4.7, 1.3, 20.7 and 5.3 folds
respectively during the study period.
7) The financial analysis indicated that the ratio of total liability to owned
funds was continuously decreasing. This ratio was highest (4.8363) in
2000-01 and lowest (1.3428) in 2006-07.
8) The ratio of fixed assets to owned funds was highest (2.8728) in 2000-01
and lowest (0.3419) in 2007-08. This showed that the factory tended to
decrease its fixed assets during the study period in relation its owned funds.
9) The factory maintained more liquid assets in the earlier periods giving
priority to working capital. Since, the factory had acquired more fixed
assets over the years, it led to decline in the ratio.
10) The ratio of current assets to current liabilities was more than unity over
the years and thus indicated the sufficiency of assets to meet its current
obligations.
11) The acid test ratio measures the dependency of the factory on its inventory
for liquidity. Since the ratio was not within the standard form of 1:1, it
clearly demonstrated the ability of the factory to meet its current
obligations depending much on early sale of its inventory.
12) The ratio of inventory to net working capital was greater than one in all of
the years of the study. It showed that the factory depended mostly on
external funds for creating inventory.
13) The ratio of net profit to total assets, net profit to owned funds and net
profit to total sales turned out to be negative for all years during study
period.
14) The working capital turnover ratio was highest (50.26) in 2005-06, lowest
(0.3536) in the initial year. The ratio had gone on increasing up to 2002-03
and then fluctuates.
 
Date 2016-06-24T14:00:09Z
2016-06-24T14:00:09Z
2010
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/67950
 
Language en
 
Relation D8718;
 
Format application/pdf
 
Publisher ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY