SIX WEEK INDUSTRIAL TRAINING REPORT

SESSION- JULY TO AUG 2016

COMPLETED
AT
INDIA SUCROSE LTD (PB)
GAGANDEEP
REG. NO. 141165384303

SUBMITTED TO:
ER. PRABHJOT SINGH
MECHANICAL DEPARTMENT
BRAHM KAMAL POLY COLLEGE, FATTUWAL

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ACKNOWLEDGMENT

I feel great pleasure to express my sincere and heartly

gratitude to Er. Pankaj Chadha (Workshop Manager) INDIAN
SUCROSE LTD. Divisional Workshop MUKERIAN for granting me
permission to undergone Industrial Training in this workshop I am
heartily thankful to Technical Manager R.K. Jaryal of INDIAN
SUCROSE LTD. Divisional Workshop MUKERIAN with whose
helpful nature and guidance I could complete my training
successfully. I am also thankful to the staff and workshop workers
who help me to enrich my knowledge and help me to complete
my Industrial training report. Which would helpful for my future
carrier.
I am also thankful to HOD (ER. PRABHJOT),
Head of the Department (Mechanical) and with whose guidelines
help me to complete the project report timely. Last but not least,
this acknowledgement would be incomplete without rendering my
sincere gratitude to all those contribution involved in this training
work directly or indirectly.

GAGANDEEP
5th Sem Mech. Engg
(141165384303)

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INDIAN SUCROSE LIMITED

1.1) INTRODUCTION:
Sugar originated from the Arabic word "sharkara" and is derived from the
sanskrit world "sharkara". Sugar is an important part of the daily diet and
forming a class of edible substances which includes sucrose, lactose, and
fructose. It provides the human body with requisite carbohydrates and is
basically extracted from sugar cane and sugar beet. Found in fruits, honey,
sorghum, sugar maple and in several other sources, it is the main ingredient of
candy which is loved by children the world over. Yet, it has been blamed for
causing tooth decay and excess consumption of sugar has been associated with a
host of ailments like diabetes, obesity, weight gain, depression, joint pain,
fatigue and insulin resistance and even cancer. Sugar is present in various forms
in fruits, honey, maple syrup and other natural sources. It is extracted by an
intricate process, whereby the pulp is extracted first and then, the remaining is
used for producing the sugar. Sugar has wide variety of uses and is used for
baking, sweets, alcoholic beverages, and even in the soap we use. Further, it is
also used as a food preservative and in confectionery items.

1.2) History:
Sugar is said to have originated in India. During the Gupta dynasty in
India, the extraction of sugar was clearly known to the Indians. Experts identify
the Pacific region and certain parts of India like the North East as real locations
where the sugar cultivation was practised. This was taken to the western
hemisphere by the Arab traders who borrowed the techniques from India and
subsequently, set up mills to commercially produce this highly useful
agricultural product. The production of sugar spread to countries like Spain and
the Portuguese took it to South America.
During the eighteenth century, sugar production became increasingly
mechanized and sugar market went through a phase of great boom. New
technology was developed as sugar became a very popular item and specialized
procedures were developed for the large scale processing of sugar. At first, the
sugar was used mainly for tea and then, went into the making of confectionery
and chocolates. The Dutch took sugar to the Carribean Islands and today, this
area is the largest source of sugar in the world. With the introduction of sugar
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plantations in the Carribean islands on a large scale, the price of sugar fell
substantially and in Britain, all classes of people took to sugar and it has
become a part of their routine. Earlier, it was relegated to the upper echelons of
society, it, then, became a common commodity and became sufficiently cheaper.
Maximum consumption of sugar has been recorded from Belgium and the least
consumption is from Ethopia with an amount of three kilos per year.

1.3) Sources of Sugar

Generally, sugar is produced from plants like sugarcane and sugar beet.
The sugarcane plant is very thick with long grasses. A perennial crop, it is
grown in the various tropical and subtropical areas. The stalks of the sugarcane
is the exact location, from where the sweet sap is extracted. Sugar beet has the
highest sugar content from among the beetroot family and this variety is
specifically cultivated for high quality sugar production. In addition, sugar is
produced from sweet sorghum, maple, honey, corn sugar, etc. Of a 180 countries
of the world, around a 100 of them make sugar from the sugar beet and cane.

1.4) Types of sugar

1)Raw sugars
Raw sugars consist of varying shades of yellow to brown sugars and is
processed by boiling till it solidifies. From sugar beet juice, the raw beet sugars
are extracted and are then used to fabricate white sugar. Raw sugars include
demerera, muscovada and turbinado. These are available in crystalline and loaf
forms, where the moulds are then allowed to dry up and the resulting product is
called jaggery or gur. Raw sugar is not so popular in South America. Mill white
sugar is produced by exposing the sugar to sulfur dioxide but it retains the
coloured impurities.
2)Blanco direct
Blanco direct is a white sugar used much more in India and Asia and is
less purer than the white sugar. It undergoes the process of phosphation and is
more devoid of impurities. White refined sugar, popular in the West, is
processed by dissolving the raw sugar and purifying it with phosphoric acid or
by filtration strategies. White sugar is available in granulated form. Granulated
sugar includes coarse grained sugars such as sanding sugars, caster sugar and
superfine powdered sugar and they are divided on the basis of fineness of
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grades.
3)Brown sugars
Brown sugars are formed when sugars form fine crystals with high
molasses content or from coating white refined sugar with a cane molasses
syrup. Colour and taste becomes stronger with increasing molasses content . On
being exposed to air, they tend to harden and proper handling of this. Natural
sugars are found in their natural form and covers the most unrefined sugars and
includes the fruits, grains and vegetables. The World Health Organization has
approved the natural sugars as carbohydrates for unrestricted consumption
purposes.

1.5) Manufacturing Process:

For sugarcane, the process of refining is carried out in following steps
Pressing of sugarcane to extract the juice.
Boiling the juice until it begins to thicken and sugar begins to crystallize.

Spinning the crystals in a centrifuge to remove the syrup, producing raw

sugar.

Shipping the raw sugar to a refinery where it is washed and filtered to

remove remaining non-sugar ingredients and color.

Crystallizing, drying and packaging the refined sugar.

1.6) World Sugar Scenario:

After two consecutive seasons of surplus between world sugar production
and consumption, World Sugar economy is now facing a significant supplydemand imbalance. There will be fall in global sugar production. The world
consumption of sugar is forecasted to grow by 1.73% to 167.446 mln tones.
World production is expected to increase by 4.817 million tonnes, which is
8.404 million tonnes lower than
world consumption.
World export availability is expected to rise due to projected growth in
output in exporting countries. World export availability for season 2009-10 is
expected to be 51.964 million tonnes, as against 50.903 million tonnes in the
previous season.
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A significant production shortfall in India and China, as well as a

further contraction of production in the EU, on the other hand and a continuing
expansion of sugar output in Brazil, on the other hand are the four major
supply features of Sugar season 20082009.

1.7) Indian Sugar Economy

The sugar industry is the largest agro-based industry and India is the
Second largest producer of sugar in the world next only to Brazil. Sugar
industry in India is headed for a rough patch during the current sugar year
ending September 30, 2009. India plays a crucial role in the world's sugar
output. Indian sugar industry is controlled by the Government. Starting from
cane price to the price of sugar, everything is under the hands of the
Government. The Statutory minimum Price (SMP) of sugarcane is fixed by the
Central Government to support the cane farmers. However, states like U.P.,
Haryana and Uttarakhand are free to fix their own price known as State
Advisory Price (SAP), which is usually higher than SMP.

1.8) Indias Production:

The Countrys sugar output touched a three year low. Sugar production
in 2008-09 season is set to fall by 44% from the previous season. In sugar
season 2008-09, production has declined to 147.50 lacs tones compared to
production of 263.28 lac tonnes in the year, 2007-08. One major reason for this
is the shrinkage in the sugarcane growing area in last couple of years due to
delay in cane payment and confusion over the price, less area of ratoon in this
season and poor monsoon in some parts of the country. The sugar industry is
cyclical in nature. It is dependent upon monsoons for both its production and
price realisation. Such a shortfall in sugar production has posed a serious threat
to inventory on hand. Drop in cane output may lead to increase in cost of
production for sugar companies and hit their profit margins in 2009.

1.9) Government Policies:

Rising prices of sugar has caused concern to the Government and it has
intervened substantially to control the prices of the sugar, because it is one of
the essential commodities. The Government brought in measures such as
weekly quota for free sale, weekly reporting mechanism to monitor sugar
dispatches and sale, liberalized raw sugar import under Advance Authorization
Scheme [with change in export obligation norm from grain-to-grain to
tonne-to tonne basis] and finally the facility to import raw sugar without
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export obligation as well as import of white sugar upto 10 lakh tonnes by

Government agencies, both at zero% customs duty. The Centre is also planning
to bring back Gur under the Sugarcane (control) order, 1996 to ensure adequate
cane supplies to sugar mills.

1.10)

Demand & Supply of sugar in India:

(In million

tonnes)
Season
2009
Opening stock as on 1st 80.00
October
Production
during
the 147.50
season
Imports
25.00
Total availability
252.50
Domestic consumption*
220.00
Exports
2.00
Closing stock
30.50

1
2
3
4
5
6
7

1.11)
Sr.
1
2
3
4
5
6

2008- Season 2007-2008

92.00
263.28
-----355.28
225.72
49.56
80.00

Indian Sugar Industry at a glance:

Particulars

Crushing Season
2008-2009
2007-2008

Number of Sugar Factories in

Operation
Crushing Capacity (million TCD)
Sugarcane Crushed (million tons)
Sugar Produced (million tons)
Recovery % Cane
Yield of sugarcane (tons per
hectare)

1.12)

501

455

21.391
278.872
28.328
10.16

19.797
188.672
19.267
10.21

69.0

66.9

Sugar Producing States in India:

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2.1) TITLE OF THE STUDY:

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A study on working capital management and Ratio analysis at VSL, BelladBagewadi.

2.2) STATEMENT OF THE PROBLEM:
The success and failure of any organization is very much influenced by
the past and previous year financial analysis and working capital management.
Vishwanath Sugars ltd is mainly engaged in production of sugar. The
leading Vishwanath Sugars ltd is private sector undertakings, which is located in
Bellad-Bagewadi. and have been striving hard on meeting the competition from
their competitors.
Any business enterprise needs funds for its operations, investors are the
major Source of fund apart from owners funds. From the above statement it is
clearly state that they need to be strong in managing resources and increase
there receivables and decrease the liabilities, to be strong in managing working
capital thus it is this problem, which prompted the researcher to take up the
study on financial statement analysis and working capital management.
2.3) OBJECTIVE OF THE STUDY:
The study aims to achieve the following objectives:
To determine the progress of the company and to ascertain the future
prospects of the company.
To find out the level of activity or the operating efficiency of the
company.
To measure the liquidity or the short-term solvency and to indicate
whether the company will be able to meet the short-term obligations out
of its resources.
To ascertain the working capital requirement of the company.
To study the extent of influence of different factors on size of working
capital.
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2.4) SCOPE OF THE STUDY:

This study has a wider scope to cover components and determinants of
capital, sources and types of working capital, components of capital
management such as cash, receivables and inventory. Financial analysis which
covers using different tools of ratios.

2.5) METHODOLOGY:
No study is completed until a proper method is adopted. The level of any
systematic research depends upon collection of data by keenly observing the
existing conditions, classification and interpretation of data and at the end
formation and generalization and conclusion.
The research design should be such that it maximizes reliability of the
evidence collected. The data required for the preparation of financial statement
analysis and working capital management was collected through Primary and
Secondary data.
Primary Data:
Primary data required for the study is collected from the Vishwanath Sugars ltd
Head office.
Secondary Data:
This includes information relating too
Annual reports.
Company brouchers, magazines, periodical reports.
Balance sheets, profit and loss accounts.
2.6) TOOLS FOR COLLECTING DATA:

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After carrying out analysis of financial statements, balance sheet and

profit and loss A/c, to elicit additional information to supplement the analysis,
discussions were held with the concerned executives of the company. For this
purpose a schedule was prepared for collection of data which is presented in the
appendices.

INTRODUCTION TO FINANCE
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Finance has been called The science of money. In studies the principles
and methods of obtaining control of money from those have saved it and the
administration of it by those in to whose control it passes.
Finance may be said to be circulatory system of the economic body,
making possible needed co-operation between the many units of activity. In an
organization composed of myriad separate enterprises, each working for its own
end but simultaneously contributing to the system as whole, some forces is
necessary to bring about direction and co-ordination. Something must be direct
the floe of economic activity and facilitate its smooth operation. Finance is the
agent that produces this result.
Finance is the business activity which is concerned with the acquisition
and conversation of capital funds in meeting financial needs and overall
objective of a business enterprise.

3.1) SCOPE AND IMPORTANCE OF FINANCE

The modern industrial or service firm must conduct its business in a
rapidly changing and highly competitive environment. A premium is placed on
the ability to react quickly and correctly to constantly changing market
conditions. Financial management is most totally independent area. It draws
heavily on related discipline and fields of study namely Economics, Accounting,
Marketing, Production and Quantitative methods. Management must be
concerned with all the aspects of firms operation including production of goods
and delivery of services, sales and marketing activities and supporting functions
such as Personnel training and data processing. To handle these responsibilities,
most firms make extensive use of financial data and reports.
3.2) WORKING CAPITAL MANAGEMENT
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Introduction:
The management of working capital is an important and time consuming
aspect of management finance. Sufficient working capital must be provided in
order to take care of the normal process of purchasing raw materials and
supplies, turning out finished products, selling the products, waiting for
payments to be made. If the original estimates of working capital are
insufficient, some emergency measures must be restored to or the business will
come to dead stop. Inadequate levels of working capital can results in serious
financial difficulties, and even bankruptcy; exclusive levels are likely to reduce
corporate profitability and ultimately cause the firms effectiveness and market
value to decline.
Meaning of Working Capital:
In accounting working capital is the difference between the inflow and
outflow of funds. In other words, it is the net cash inflow. It is defined as the
excess of current assets over current liabilities and provision.
Definition of Working Capital:
Working Capital is the amount of funds necessary to cover the cost of
operating the enterprises.

Disadvantages or dangers of inadequate working capital:

A concern which has inadequate working capital cannot pay its short
term liabilities in time. Thus it will lose its reputation and shall not be
able to get good credit facilities.
It cannot buy its requirement in bulk and cannot avail discounts, etc.
It becomes difficult for the firm to exploit favorable market conditions
and undertake profitable projects due to lack of working capital.
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 The firm cannot pay day-to-day expenses of its operations and it creates
inefficiencies, increases costs and reduces the profits of business.
It becomes impossible to utilize efficiently the fixed assets due to non
availability of liquid funds.
The rate of return on investments also falls with the shortage of working
ability to realize values in money the most of liquid assets. It refers to the ability
to pay in cash, the obligations that are due.
The corporate liquidity has two dimensions viz, quantitative and qualitative
concepts. The quantitative concept includes the quantum, structure and
utilization of liquid assets and in the qualitative concept it is the ability to meet
all present and potential demands on cash from any source in a manner that
minimizes cost and maximizes the value of the firm. Thus, corporate liquidity is
a vital factor in business-excess liquidity, though a guarantor of solvency would
reflect lower profitability, deterioration in managerial efficiency, increased
speculation and unjustified expansion, extension of too liberal credit and
dividend policies.
The important ratios in measuring short term solvency are:
Current ratio.
Quick ratio or liquid ratio.
1. Current ratio: This ratio measures the solvency of the company in the
short-term. Current assets are those assets which can be converted into
cash within a year. Current liabilities and provisions are those liabilities
that are payable within a year. A current ratio of 2:1 indicates a highly
solvent position. A current ratio of 1.33:1 is considered by banks as the
minimum acceptable level for providing working capital finance. A high
current ratio may be due to the pilling up of inventory, inefficiency in
collection of debtors, high balances in cash and bank accounts with out
the proper investment.
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Current ratio = Current Assets, Loans & Advances

Current liability & provision
2. Quick ratio or liquid ratio: This ratio is used as measure of the
companys ability to meet its current obligations. Since bank overdraft is
secured by the inventories, the other current assets must be sufficient to
meet other current liabilities. A quick ratio of 1:1 indicates highly solvent
position. This ratio is called acid test ratio. This ratio serves as a
supplement to the current ratio in analyzing liquidity.
Quick Ratio or Liquidity Ratio = Current Assets, Loans & Advances Inventories
Current Liability & provision Bank overdraft

Profitability Ratios:
The purpose of study and analysis of profitability ratios are to help assessing the
adequacy of profits earned by the company and also to discover whether
profitability of the firm is the net result of a large number of policies and
decisions. The profitability ratios show the combined effects of liquidity, asset
management and debt management on operating results. Profitability ratios are
measured with reference to sales, capital employed, total assets employed,
shareholders funds etc. The major profitability ratios are as follows:
Return on capital employed or return on investment (ROCE or ROI).
Earnings per share (EPS).
Cash earnings per share (Cash EPS).
Gross profit margin.
Net profit margin.
Cash profit margin.
Return on assets.
Return on Net worth (Return on shareholders funds).
1. Return on capital employed: The strategic aim of business enterprises
is to earn a return on capital. If in any particular case, the return on the
long-run is not satisfactory then the deficiency should be corrected or the
activity be abandoned for a more favorable one. Measuring the historical
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performance of an investment centre calls for a comparison of the profits

that has been earned with capital employed.
Return on Capital Employed =
Net Profit
100
Capital Employed
2.

Earnings

per share

(EPS):

The

objective

of

financial

management is wealth or value maximization of a corporate entity.

The value is maximized when the market price of equity shares is
maximized. The use of the objective of wealth maximization or net
present value maximization has been advocated as an appropriate
and operationally feasible criterion to choose among the
alternatives financial actions. A higher EPS means better capital
productivity.
Earning per Share = Net Profit after tax and Preference Dividend
No of Equity Shares
3. Gross profit margin: The ratio measures the gross profit margin on the
total net sales made by the company. The gross profit represents the
excess of sales proceeds during the period under observation over their
costs, before taking into account administration, selling and distribution
and financing charges. The ratio measures the efficiency of the company
operations and this can be compared with the previous years results to
ascertain the efficiency partners with respect to the previous years. The
gross profit margin may be compared with that of competitors in the
industry to assess the operational performance relative to the other
players in the industry.
Gross Profit Margins =

Sales Cost of Goods Sold

Sales

100

4. Net profit margin: The ratio is designed to focus attention on the net
profit margin arising from business operations before interest and tax is
deducted. The convention is to express profit after tax and interest as a
percentage of sales. A draw back is that the percentage which a result
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varies depending on the sources of employed to finance business activity,

interest is charged above the line while dividends are deducted below the
line. It is for this reason that the net profit earnings before interest and tax
(EBIT) are used. It is to be observed that majority of the costs debited to
the profit and loss account are fixed in nature and any increase in sales
will cause the cost per unit to decline because of the spread of same fixed
cost over the increased number of units sold.
Net Profit Margin = Net Profit before interest and Tax 100
Sales
5. Cash profit ratio: where cash profit= net profit + depreciation
Cash profit ratio measures the cash generation in the business as a result
of the operations expressed in terms of sales. The cash profit ratio is more
reliable indicator of performance where there are sharp fluctuations in the
profit before tax and net profit from year to year owing in depreciation
charged. It also facilitates inter-firm comparison of performance since
different methods of depreciation may be adopted by different companies.
Cash Profit Ratio =

Cash Profit
Sales

100

Operating ratios:
The ratio of all operating expenses (i.e. materials, labour, factory overheads,
administration, and selling expenses) to sales is the operating ratio. A
comparison of the operating ratio would indicate whether the cost content is
high or low in the figure of sales. If the annual comparison shows that the sales
has increased the management would be naturally interested and concerned to
know as to which element of the cost has gone up.
1) Material cost ratio.
2) Administrative expenses ratio.
3) Labour cost ratio.
4) Selling and distribution expenses ratio.
5) Factory overhead ratio.

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G T ROAD
MUKERIAN
4.1) PROFILE OF THE COMPANY
Vishwanath Sugars Ltd., was a pioneer in the exporting of power to other
industry. Situated in state of Karnataka, it combines for technology and the
latest. Mechanization and compliments with a two years experience result, High
quality sugar.
Alongside, the factory waste namely molasses is used for organo
Chemicals industrial alcogol/rectified spirit is manufacture with the sugar waste.
This VSL company is also looking towards venturing into plant a new plant for
production.

4.2) History:
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Vishwanath sugars ltd entered the sugar industry in the late nineties.
Based in the Indian State of Karnataka, it began operations by setting up one
sugar factory, of which used a scientific method of cultivation. Despite
increasing emphasis on traditional cultivation methods, Vishwanath sugars ltd
was among the few to introduce modernity to this industry.
Sugar factories in Maharashtra were being victimized through state
policies Private farms were being nationalized and the co-operative movement
quickened the pace of ultimate closure of these farms. This was unfortunate
because the yields from these belts of sugarcane were among the best in the
world. The yield of cane was 64 ton per acre, recovery of sugar was 11.5% per
acre and yield of sugar was 7.36 tons per acre. Realizing that it could no longer
work towards its full potential, the opened Vishwanath Sugars Ltd at Bellad
Bagewadi in Karnataka State.
In 2002, the foundation stone at the factory of Vishwanath sugars ltd was
laid by then Governor of Karnataka. Due to the prevalent India Pakistan war at
that time.
The factory was erection on a war footing and commissioned in a record
time of less than ten months. Production started in 2005.Today advanced
technology and a high level of Mechanization has made Vishwanath sugars ltd
one of Indias largest sugar producers. This Vishwanath sugars ltd company has
one of the highest average recovery rates in industry.

4.3) ABOUT THE FOUNDER

A Light has gone out of our lives but has left behind many sweet
memories. Born with humble feelings, Shri Umesh V. Katti learnt that Honesty
and hard work lead to success. Very early in his life, through the example and
teachings of great men like swami Vivekanand, Mahatma Gandhi and swami

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Dayanand Saraswati, he assimilated in his life the maxim that There is no

religion greater than man.
Shri Umesh V. Katti started his carrier as agriculturist. He use to grow
sugar cane as a main crop in his filed. In later days Shri Umesh V. Katti has
acquired great name and reputation from his achievements in agriculture, for his
insight and analytical skills and for his deep understanding of people problems.
A popular person Shri Umesh V. Katti made his mark for his outspoken and
fortnight views and stood for the elections of MLA and was also elected as a
MLA and after that he was selected another three times as a MLA and for the
forth time he became a Sugar minister and was Public Work Department and
cabinet minister. He was also Director of Belgaum District Co-operative Bank.
And at present he is the Horticulture and Prison Minister in cabinet.
Then he started his carrier as a Business man as a industrialist, when we
studied about his we would he was a visionary person and a hard worker and he
is a self made man and a good decision maker.
When we asked his employs their opinion was that He is a kind hearted
Person and also a well knowledge person in the field of sugar industry and
distillery industry technical field. When we asked for some more details they
told being a politician he is also a great industrialist. They also told that my
establishing this industry in rural place he is feeding thousand of familys live
hoods. Being a agriculturist he understands the problems of farmers and poor
people and helped to solved the problems. When we asked the people of the
villages.
Shri Umesh V. Katti vision and foresight have led to this huge growth of
industry in Karnataka. Due to his belief in Humanity and faith in Almighty he
could transform his dream into reality.

4.4) Location:

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Vishwanath sugars ltd is located at Bellad Bagewadi small village in the

Belgaum district of Karnataka Bellad Bagewadi lies in presented between two
rivers, Ghatprabha & Krishna. It falls under the command area of Hidkal dam,
on the Ghatprabha Left Bank canal, at the confluence of four townships
(talukas) , Mudhol, Jamakhandi, Raibag and Gokak.

4.5) COMPANY VISION AND MISSIONS :

VSL will continue to expand its operations by expanding production into
new markets and applications. Growth will also come from value added
diversification derived from the groups strengths in products and process.
The quality of the products and services delivered by VSL will always
strive to exceed customer expectations.
VSL always has and will continue to use renewable resources in its
products. We believe that this is an important need for sustainable development.
VSL has been and always is aware of its social commitment to the
community that it serves. We believe that we have a responsibility and
obligation to return to society what we earn from it.
VSL has a vision to adopt the most modern technologies and equipments
to improve the production of the company and to create more no of
employment.
VSL has an vision to help farmers present in the surrounding area and
help them in improving their yield totally they want to see rural development.

4.6) ORGANIZATION STRUCTURE:

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4.7) MANAGEMENT TEAM:

Mr. Umesh V. Katti
Mr. Umesh V. Katti is Chairman and Promoter of the company having
business and manufacturing interest in Sugar Industrial Alcohol, Organic
Chemicals, Agriculture etc. since over five years. He is also associated with
various Educational, social and Cultural Organization and is also cabinet
minister of the state government.
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Mr.Ramesh V. Katti
Mr.Ramesh V. Katti is the vice chairman of the company. He is also
Bachelor of Arts from Hukkeri. He is also a Chairman of a Sugar cane factory at
Hukkeri.

Shri Mallikarjun Pujar

Managing Director of the company having more than 12 years of
experience in the filed of Sugar, Chemical and Power. He is Bachelor of Arts
having such a good experience he is good at managerial skills which helps
maintaining of people of the company.

Shri Mukesh Kumar Sharma

He is COO of the company with more than 13 years of experience in the
filed of Sugar Industry. He is well known person in Sugar Industry. He is person
who had his Bachelor of Engineering from Bihar with specialization in the field
of Chemistry.

Mr. Shivanand M Katti

Whole time Chief Electrical Engineer of the company. He is B.E. in
electrical from belgaum. He is the person with great knowledge who is most
helpful person in the company who looks after power section of the company.

4.12) FUNCTIONAL DEPARTMENTS

1

Administration Department

Purchase Department

Cane Development Department

Production Department
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Finance Department

Sales and Distribution Department

1)Debt Equity Ratio:

Debt Equity Ratio =

Long Term Debt

Share Holders Fund

Debt= Secured loan + unsecured loan (long term)

Particulars
Debt
Equity
Ratio

2009
135,33,40,965.26
34,03,59,000.00
3.97

2008
63,80,64,000
34,03,59,000
1.87

2007
76,80,20,840
33,19,71,481
2.31

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8) Net profit margin:

Net Profit Margin = Net Profit before interest and Tax
Sales

100

Particulars
Net Profit bef
interest and T
Sales

Ratio

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By above analysis we can say that as compared to 2007 into 2008 it

has gained good control over its costs and if we compare 2009 into
2008 the company is not having much control over its costs.

SUGGESTION AND RECOMMENDATION

On the basis of analysis, the recommendation to further improves the
working capital management, which would level the company to greater
heights.
1) As we seen in the current ratio, we can say that the company is
utilizing its equity fully. This states us that there is no unutilized
fund in the company.
2) By observing current ratio, we can say that the company is having
more current assets than its current liabilities.

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