PERFORMANCE OF THE SARITA SUGARS LIMITED, PODALAKURU, NELLORE DISTRICT OF ANDHRA PRADESH – AN ECONOMIC ANALYSIS
KrishiKosh
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Title |
PERFORMANCE OF THE SARITA SUGARS LIMITED, PODALAKURU, NELLORE DISTRICT OF ANDHRA PRADESH – AN ECONOMIC ANALYSIS
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Creator |
KOTI REDDY, G
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Contributor |
NEELAKANTA SASTRY, T.V
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Subject |
packaging, flavouring, animal husbandry, productivity, application methods, fats, proteins, economic systems, storage, milk products
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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. |
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Date |
2016-06-24T14:00:09Z
2016-06-24T14:00:09Z 2010 |
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Type |
Thesis
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Identifier |
http://krishikosh.egranth.ac.in/handle/1/67950
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Language |
en
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Relation |
D8718;
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Format |
application/pdf
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Publisher |
ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY
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