gcsr bank part 2

ACOMPREHENSIVE PROJECT REPORTOnA Study on Financial Performance of selected Sugar Manufacturing Units in India Submitted To:Gujarat Technological UniversityIn partial Fulfillment of the Requirement of the award of the degree ofMaster of Business Administration (MBA)UNDER THE GUIDANCE OFProf. Bansi PatelAssistant Professor MBASJPI NICM, Gandhinagar.Submitted by:Vaghasiya Pratik - 137690592121Kathiriya Piyush - 137690592043[Batch: 2013-15]Shri. Jairambhai Patel Institute of Business Management &Computer Applications (NICM-MBA)MBA PROGRAMMEAffiliated to Gujarat Technological University, Ahmedabad.2015

DECLARATION

This Comprehensive Project Titled A Study on Financial Performance of selected Sugar Manufacturing Units in India has been prepared by us under the guidance of Prof. Bansi Patel for partial fulfillment for Master of Business Administration (MBA) of Gujarat Technological University. This study has been undertaken by us and the report has not been submitted in any University / Academic Institute.

Place: Gandhinagar

Date:

Name of the student: 5/05/2014r8 Vaghasiya Pratik (137690592121) Kathiriya Piyush (137690592043)

Signature of the Student:

Prof. (Dr.) S.O.JunareDirector Technical Campus

Shri Jairambhai Patel Institute of Business Management and Computer Applications (SJPI)(Formerly known as National Institute of Cooperative Management),Approved by AICTE, New Delhi and Affiliated with Gujarat UniversityOpposite Amusement Park, Indroda Circle, Gandhinagar - 382 007Phone: 079 23213043, 37 - 38 - 39 Fax : 079 23213036Web: www.nicm.org.in E mail: [email protected]

CERTIFICATE

This is to certify that Kathiriya Piyush M. (137690592043) and Vaghasiya Pratik R. (137690592121) student of MBA (2013-2015 batch) at Post Graduate Centre of Gujarat Technological University MBA, SJPI has prepared a Comprehensive Project Report on A Study on Financial Performance of Selected Sugar Manufacturing Unit in India. in partial fulfillment of two years full-time MBA Programme of Gujarat Technological University, Ahmedabad. This project work has been undertaken under my supervision and found satisfactory.

Date:----------------- Prof. Bansi PatelPlace: Gandhinagar Core Faculty MBA Dept. & Project Guide

Prof. (Dr.) S.O.JunareDirector Technical Campus

PREFACE

A Comprehensive Project Report is one of the highly effective means of the learning and acquiring worldwide knowledge. It generates a concerted effort by students to acquire in depth knowledge on a subject and present the same in systematic manner.

A Comprehensive Project Report is an integral part of the MBA program. The main objective of the Comprehensive Project Report is to enhance the skill of researcher and gain the valuable knowledge of management skills that will be useful in the future career building. Hence, Comprehensive Project Report is the only way out for the students of management to increase his analytical skill.

This Comprehensive Project Report is based on Sugar Manufacturing Units. We have taken care to deal with the prescribed topics in sufficient depths and in a very lucid language.

ACKNOWLEDGEMENTThis project is not one persons solitary effort. It is our duty as well as privilege to express my deep sense of gratitude to all those who have been associated with me in this summer project.

First of all, we express my deep gratitude towards Dr. S.O Junare, Director & our project guide Prof. Bansi Patel, Core Faculty, Shree Jairambahi Patel Institute of Business management and Computer Applications (NICM) who initiated this study and also helped me by giving their valuable comments at every stage of my project.

We would also like to thank our friends, family for that help and cooperation throughout the Project.

Thanking You.

(Vaghasiya Pratik R.)(Kathiriya Piyush M.)

INDEXNO.ParticularPage no.

Executive summary7

1.Introduction8

1.2 Industry overview10

2.Literature Review30

Objective of the Study38

3.Research Methodology39

3.1 Problem of the Study 40

3.3Research Design40

3.4 Sources of the data41

3.5 Scope of the Study 42

3.6 Hypothesis43

4.Data Analysis and Interpretations 44

5.Findings91

8.Conclusion92

9.Bibliography93

10.Limitations of the Study93

11.Appendix95

EXECUTIVE SUMMARY

Here, we have prepared Comprehensive report on Sugar manufacturing units as a part of MBA curriculum in Gujarat technological university in the State of Gujarat. In this Comprehensive project Report Researcher have done an analysis of the Financial Performance of selected Sugar Manufacturing Units in India.

First of all, Researchers have include introduction, history of all top 10 sugar industries in India, statement of the companies, SWOT analysis , etc. Also Researchers have done research on Financial Status of selected Sugar Manufacturing Units on the basis of Z score Model.

Researchers have also performed different analysis to get a clear picture about the companies and light about the company future in Sugar manufacturing units industries is a learning organization. In this report we analysis that financial position through EPS, PAT, and ROE.

In this Report uses the Altmans Z-score model to predict the risk of financial distress of select sugar manufacturing units as per market Capitalization in India. The results through we easily know that the liquidity, working capital turnover efficiency and solvency position of the companies is good or bad. The Z-Score analysis also shows the companies are suffering from the financial distress and tending towards bankruptcy or not. so that Z Score model through also data are analysis on Sugar manufacturing Units.

In an era where there is a need for inclusive growth, the sugar industry is amongst the few industries that have successfully contributed to the rural economy. It has done so by commercially utilizing the rural resources to meet the large domestic demand for sugar and by generating surplus energy to meet the increasing energy needs of India. In addition to this, the industry has become the mainstay of the alcohol industry. The sector supports over 50 million farmers and their families, and delivers value addition at the farm side. In general, sugarcane price accounts for approximately 70 percent of the ex-mill sugar price .The sector also have a significant standing in the global sugar space.

The Indian domestic sugar market is one of the largest markets in the world, in volume terms. India is also the second largest sugar producing geography. India remains a key growth driver for world sugar, growing above the Asian and world consumption growth average. Globally, in most of the key geographies like Brazil and Thailand, regulations have a significant influence on the sugar sector. Perishable nature of cane, small farm landholdings and the need to influence domestic prices; all have been the drivers for regulations. In India, too, sugar is highly regulated. Since 1993, the regulatory environment has considerably eased, but sugar still continues to be an essential commodity under the Essential Commodity Act. There are regulations across the entire value chain land demarcation, sugarcane price, sugarcane procurement, sugar production and sale of sugar by mills in domestic and international markets.

WORLD SUGAR INDUSTRY SCENARIO

World Current market situation

The world sugar market has experienced and continues to experience considerable price volatility. The world indicator price for raw sugar has witnessed a succession of peaks and downward corrections in 2011 before reaching to a 30-year high of USD 795/tonne in February 2013.The reason for this global price volatility was global sugar deficit in previous two seasons due to failure of crops because of adverse seasonal condition which resulted in low production of sugar and due to high demand the prices has risen. World sugar stocks, which had already been drawn down, fell to their lowest level in 20 years in 2012-13, supporting higher as well as more volatile market prices. International sugar prices have eased in year 2013, as there was a bumper crop around the world which has resulted in fall of prices around the globe and the global balance moves into a larger surplus that allows the start of stock rebuilding.Present Market trends and prospects:World sugar prices are projected to decline from historical highs, but prices will remain higher on an elevated plateau and to average higher in real terms to 2020-21, compared with the past decade. The margin between raw sugar and white sugar is expected to decline from the high level in 2013 and then to average above USD 90/tonnes over the projected period, which will be due to increased sales of white sugar by traditional sugar exporters and from new destination refineries in the Middle East and Africa. World sugar prices are expected to follow a wave pattern over the projected period, the pattern will be quite similar to the past decade, as a result of a continuation of government policies that intervene in sugar markets in many countries and production cycles in Asia, particularly in India, that causes large, periodical swings in trade between imports and exports. As a consequence, world prices are projected to fall in 2012-13 as production will be at peak in India and production will rise in other countries and additional exports are placed on (or lower imports are drawn from) the world market. Subsequently, the cycle in India enters the down phase leading to a shortfall in production and the need for large imports to meet consumption needs that boost the world price in 2015-16. The upturn in the cycle then recommences leading to a further drop in world prices in 2017-18 and so on.

Stock has risen in 2013, in anticipation of production being less than consumption in coming year as it will be a cyclical years of downfall in production, which ultimately pushes the prices up. As production is low in year 2012and 2013, the prices has increased, the stock has fallen.

Global Production of sugar:

Sugar crops in many parts of the world are projected to expand in response to rising demand for sugar and other uses and relatively high market prices. World sugar production is expected to increase by 50 Mt to reach over 209 Mt in 2020-21. The bulk of the additional sugar production will come from the developing countries and the main burden of growth will continue to fall on Brazil. Brazil has expanded production rapidly in the past two decades, but a slowdown in investment in new mills occurred after the financial crisis of 2008, slowing overall growth in following years. The recent surge in sugar prices has improved profitability and should trigger additional investment to come on stream within the decade, with output rising by around 11 Mt to nearly 50 Mt by 2020-21. India, the second largest global producer and the worlds leading consumer, is expected to boost production substantially to 32 Mt of sugar per year, on average, in the coming decade, or some 50% higher than in 2008-10, when production fell sharply. Annual sugar output will continue to be subject to periodic large swings in response to the longstanding production cycle. Some other countries of Asia, such as China and Pakistan, are also expected to continue to experience milder forms of production cycles, which contribute to fluctuations in production and their import volumes. Outside this group, an expansion drive underway in Thailand is expected to continue as investment projects currently in the pipeline come on stream, lifting production to around 8.7 Mt by 2020-21, and maintaining its position as the worlds third largest producer.

In contrast, to the expansion trends in the developing world, the traditional sugar industries in a number of developed countries are expected to witness static or lower production over the coming decade. For instance, in the European Union quota based sugar production has declined with policy reform and is expected to stabilize around 13.4 Mt , with a continuation of existing production quotas, to equilibrate the domestic market in a context of stable consumption, a fixed volume of subsidized exports and projected higher imports. Some additional out-of-quota sugar beet production is expected to arise over the projection period for use in ethanol production and the chemical industry.

Production of sugar in the United States is expected to show little growth and to remain well below the 85% minimum allotment level of the 2008 FCE Act. US producers are expected to focus on improving their sugar margins by cutting costs and essentially leaving Mexico to fill the expanding gap between stable production and higher US consumption requirements. Assured access to higher prices in the slowly growing US market is expected to encourage some further investment and growth in Mexicos sugar production to 2020-21.

The sugar industry in Australia, although devastated by flooding and a cyclone in 2010, is expected to recover in coming years. However, with continuing pressure on land available or sugarcane production, sugar producers will likely focus on higher productivity, based on farm consolidation and improved cane varieties and higher sugar yields, rather than cane area expansion, in lifting output to around 5 Mt in 2020-21. The sugar industry in the Russian Federation has undergone a transformation in recent years and is projected to continue to expand production, under the stimulus of high domestic support measures, to reach nearly 5 Mt by 2020-21. Global sugar consumption has continued to increase despite the continuing economic difficulties in many developed countries, compounded by the period of high sugar prices and increased volatility. This has slowed sugar use at the start of the Outlook period and slower consumption growth is expected to continue over the longer term as world sugar prices average higher in real terms. Global consumption is projected to grow at 2.2% p.a. to 2020-21, and down from 2.6% p.a. in the previous ten years.

The developing countries will continue to experience the strongest growth in sugar consumption, fuelled by rising incomes and populations, although with considerable variation between countries. The sugar deficit regions of Asia and the Far East as well as Africa, will be responsible for most of the expansion in use. In contrast, sugar consumption in many developed countries, with their mature sugar markets, are expected to show little or no growth. Total consumption in these countries is expected to increase from 48Mt to nearly 52 Mt over the projection period. This reflects, among other things, slowing population growth and dietary shifts that are underway as a result of increasing health awareness and concerns with obesity and related health issues.

Global Sugar Trade:Over the last decade, there have been a number of structural changes affecting the evolution of trade patterns which will continue to influence international sugar transactions in the coming period. These include increased concentration in sugar export trade, with a smaller number of global exporters, and a decline in the volume of white sugar traded internationally. The reform of the sugar regime in the European Union led to an abrupt decline in white sugar exports, of the order of 6-7 Mt, as production quotas were progressively reduced below consumption requirements. As a consequence, the EU has switched from a large net exporter of white sugar to a large importer of mainly raw sugar for further refining and sale in the domestic market. The white sugar trade is expected to recover over the coming years. This will occur as more refined sugar is exported by traditional exporters in response to the high white sugar premium at the start of the Outlook and as new destination refineries in a number of countries in Africa and the Middle East progressively come on stream and begin to export increasing quantities of white sugar to neighboring countries and regional markets.

In China, tightening government controls on the production and use of artificial sweeteners, and limited water availability for cane irrigation, moreover increasing consumption demand along with fast urbanization the China is set to displace EU and US as largest importer by 2020. Increased focus on productivity in Russia and India will relieve them from imports.

World 15 largest sugar producing countries:

Source: FOA Secretariat

Sugarcane Production Potential in India:

India likely has significant potential to expand sugarcane production by increasing both planted area and yield. While Indias area planted to sugarcane, averaging about 4.5 million hectares per year of primarily irrigated land, is the second largest in the world after Brazil, it accounts for a relatively small Share of Indias cropped area (about 142 million hectares) and net irrigated area (about 60 million hectares). Sugarcane, however, is a year-round crop that typically remains in the field for 3 years, and returns to sugarcane production must be competitive for irrigated land on which two and in some areas three, crops are taken in one year.

Sugar year 2012:

Excessive availability of sugar this year is unlikely to deter Indian exporters to intensify supplies to global markets and increase realisation this year. Reeling under severe financial stress, Indian sugar companies are looking for opportunities for higher realisation from overseas markets with permission from the local government.

The government of India had allowed one mt of exports under open general licence so far. An increase in Indias exportable surplus and strong production prospects in key Northern Hemisphere producers will limit the upside on prices. The important questions for the sugar market in 2012 will be whether cane output in Brazil recovers after a production setback, when and how much Brazilian cane will be converted into ethanol instead of sugar, and the outlook for Indian sugar exports.

INDIAN sugar industry AT a glanceIndian sugar production has reached 188 lakhs a tonne by end Feb13 which is a tad below last years output by 0.31%. According to the Indian Sugar Mills Association estimates about 246 lakh tons was produced for the sugar season 2012-13. Indian sugar production is poised to increase to 29.8 million metric tons in the next year due to an expected increase in sugarcane production. With a surplus sugar production and strong export demand for 2012/13, India will continue to be a net exporter of sugar for the second consecutive year, with exports likely to reach as much as 2.5 million tons. Continued strong demand from bulk consumers will push sugar consumption to 26.5 million tons.Sugar production had for a third consecutive year strong growth in 2012/13 after moving through a downward cycle in 2008/09 and 2009/10. India's total centrifugal sugar production in 2012/13 was 29.75 million metric tons, which includes 435,000 tons of Khandsari sugar. In 2012/13 gaur production was higher at 4.4 million tons due to firm prices. Sugar production till March-end of the current 2012-13 sugar year is down 2 per cent at 23.05 million tonne, the Indian Sugar Mills Association said. In the corresponding last year, sugar output stood at 23.45 million tonnes. Average recovery or the amount of sugar produced from the cane crushed stood at 10.09 per cent during the current season, about 0.2 per cent lower than last year.Maharashtra has produced 7.7 million tonnes of sugar, about 4 per cent lower than last year. In Uttar Pradesh, sugar output stood at 6.75 million tonnes, marginally higher than corresponding last years 6.67 million tonnes. Karnataka has produced 3.29 million tonnes of sugar till March 2013, about 7 per cent lower than last year. Tamilnadus sugar output is down 3 per cent at 1.35 mt. ISMA has estimated that sugar output is 24.6 million tonnes for the 2012-13 seasons, marginally lower than 26 mt produced in the previous year.The sugar industry is third largest industry in the country. About 60% of the world sugar production is made from sugarcane. The sugarcane is crushed in the sugar mill and the juice extracted by heavy rollers.The concentrated juice or molasses contains 45% of water. Centrifuge treatment produces granulated sugar of a grayish hue (brown sugar), however, while sugar is obtained by a refining process. In the refineries, the brown sugar is dissolved with various chemicals (sulphuric anhydride, phosphoric acid) and is filtered with or without bone black depending upon the desired purity. The filtered syrup evaporates in vacuum until it crystallizes; centrifugation is then applied until a white crystalline powder is obtained.Sugarcane is grown in tropical and subtropical zones where certain diseases and pathological conditions are endemic. These are made worse by poverty and by environmental and working conditions (temperature up to 40C and humidity as high as 80%).In some pates of the factory (as near turbines), noise levels may exceed tolerable limits. Decomposing organic matter gives off unpleasant odors (suppurated hydrogen). The commonest injuries are heatstroke, various kinds of dermatitis, conjunctivitis, burns and falls. The incidences of dental decay are fairly high. Morbidity is in general 50% higher than in other branches of industry. Tuberculosis, alcoholism and chronic fatigue are characteristic in tropical countries and these are diseases which are peculiar to the area.Sugar is made from sugarcane, and was discovered thousands of years ago in New Guinea. And then the route was traced to India and Southeast Asia. India was the first to begin with the production of sugar following the process of pressing sugarcane to extract juice and boil it to get crystals. The government of India in 1950-51 made serious industrial development plans and has set many targets for production and consumption of sugar. These plans by the government projected the license and installment capacity for the sugar industry in its Five Year Plans. India is well known as the original home of sugar and sugarcane.

Indian mythology supports the fact it contains legends showing the origin of sugarcane. Today India is the second largest producer of sugarcane next to Brazil. Currently there are about 4 million hectares of land under sugarcane with an average yield of 70 tonnes per hectare. India is the largest producer of sugar including traditional cane sugar sweeteners, Khandsari and Gur equivalent to 26 million tonnes raw value followed by Brazil in the second place at 18.5 million tonnes. Even in respect of white crystal sugar, India has ranked No.1 position in 7 out of last 10 years. The traditional sweeteners of India like Gur & Khandsari are consumed mostly by the rural population in the country. In the early 1930's nearly 2/3rd of sugarcane production was used for the production of alternate sweeteners like Gur & Khandsari. As accordingly because of the better standard of living and higher incomes, the sweetener demand has shifted to white sugar. Currently 1/3rd of sugarcane production is used by the Guar & Khandsari sectors.In the year 1930 there was an advent of modern sugar processing industry in India which was started with grant of tariff protection to the sugar industry. In the year 1930-31 the number of sugar mills increased from 30 to 135 and in the year 1935-36 production was increased from 1.20 lakh tonnes to 9.34 lakh tonnes under the dynamic leadership of the private sector. In the year 1950-51 the era of planning for industrial development began and Government laid down targets of sugar production and consumption, licensed and installed capacity, sugarcane production during each of the Five Year Plan periods. Types of Sugar Industries in India:-The Sugar industry In India has two sectors including organized and unorganized sector. The Sugar factories usually belong to the organized sector and those producers who produce traditional sweeteners fall into unorganized sector. Gaur and Khandsari are the traditional forms of sweeteners.Manufacturing Process followed by the Sugar Industry: Extracting juice by pressing sugarcane Boiling the juice to obtain crystals Creating raw sugar by spinning crystals in extractors Taking raw sugar to a refinery for the process of filtering and washing to discard remaining non-sugar elements and hue Crystallizing and drying sugar Packaging the ready sugarABOUT THE INDIAN SUGAR INDUSTRY

Sugar industry is the second largest agro-based industry in India and contributes significantly to the socio-economic development of rural population. It supports 50 million farmers and their families and provides direct employment to over 0.5 million skilled and semi-skilled persons in sugar mills and integrated industries. The Indian sugar industry plays a leading role in global sugar market being the worlds second largest producer after Brazil, producing nearly 15 and 25% of global sugar and sugarcane, respectively. The sugar industry which encompasses 599 operating sugar mills, 309 distilleries and 180 cogeneration plant and numerous pulp, paper and chemical making units is supported by four leading sugarcane research institutions, twenty-two state sugarcane research stations, world class sugar machinery manufacturers, suppliers and technical experts. Currently, the industry produces around 300350million tonnes (Mt) cane, 2022Mt white sugar and 68Mt jaggery andkhandsarito meet the domestic consumption of sweeteners. Besides, about 2.7 billion liters of alcohol and 2,300MW power and many chemicals are also produced. The industry is able to export around 1,300MW of power to the grid. Indian sugar industry is fully capable of meeting demand of potable alcohol as well as 10% blending in gasoline. Industry is gradually transforming into sugar complexes by producing sugar, bio-electricity, bio-ethanol, bio-manure and chemicals; these contribute about 1% to the National GDP. Emerging businesses like fuel ethanol, raw sugar and structural changes in global market have provided new horizons for the Indian sugar industry. The sector today has transformational opportunities that would enable it not only to continue to service the largest domestic markets but has also emerged as a significant carbon credit and green power producer and has the potential to support an ethanol blending programmed of E10 and beyond.Geographical distribution: - Utter Pradesh, Maharashtra, Karnataka, Gujarat, Tamil Nadu, and Andhra PradeshOutput per annum:-India is the largest consumer of sugar and consumers around 16 million tonnes of sugar per annum.Market Capitalization: - Total turnover of Rs.500 billion per annum.About major Companies in the Industries:-1) EID Parry2) Shree Renuka3) Balrampur Chini4) Bajaj Hind5) Triveni Engg6) Andhra Sugar7) Dhampur Sugar8) KCP Sugar9) Ponni Sugars(E)10) Dalmia SugarResearchers selected above the top 10 companies on the basis of Market Capitalization of Sugar Companies in India.

1) EID Parry:-

Parry represents the enterprise, the pioneering zeal and the strategic vision to strike new paths, break boundaries and leave a legacy. Started in 1788, the many business ventures of the company were the first of its kind in the country, demonstrating industry leadership and the courage to be different.

First Sugar Company in India to manufacture sugar in 1842 and among the earliest sugar manufacturers in the world. First sugar manufacturer to start a distillery in India in 1843 as part of de-risking strategies. The Companys fully automated, standalone distillery in Sivaganga started in 2009 is the first of its kind in the country with zero emission, zero effluent and captive power generation capability. First sugar manufacturer in India to initiate farmer-centric model of business as early as 1845. First and only sugar manufacturer in India, with a dedicated R&D wing and cane breeding programme. The Companys many innovative programmes in sugarcane cultivation methods have set industry benchmarks in yield and recovery.

2) Shree Renuka:- In an age-old & traditionally run cyclical sugar industry in India,ShreeRenuka Sugars has always strived to do things differently by rewriting rules & reinventing paradigms. Starting with just one sugar mill in Karnataka in 1998, the Company has grown to become the largest sugar company in India operating seven integrated sugar mills & two world class port-based refineries. The Company has expanded its footprint to Brazil operating four integrated sugar mills. Enhancing shareholder value through innovation led growth has been the core philosophy. The team at Shree Renuka Sugars constantly strives towards making the Company one of the top three integrated sugar & ethanol companies in the world by harnessing strengths & realizing synergies through global presence.A global agribusiness and bio-energy corporation. The Company is one of the largest sugar producers in the world, the leading manufacturer of sugar in India, and one of the largest sugar refiners in the world. The company has its Corporate office in Mumbai (Maharashtra, India) and Head Office in Belgaum (Karnataka, India).

Shree Renuka Sugars operates eleven mills globally (four in Centre-South Brazil and seven in India) with integrated ethanol and power co-generation capacity. The company also has two large port based sugar refineries in India.

3) Balrampur Chini:-

Balrampur Chini Mills Limited (BCML) was incorporated in 1975 under the Companies Act as a wholly-owned subsidiary company of Balrampur Sugar Company Limited (Name changed to Balrampur Commercial Enterprises Limited) ("BCEL). By an indenture of conveyance dated 21 February 1976 , BCEL transferred to BCML the land, building and other assets and the entire staff of its Balrampur Sugar Factory with effect from 1 July 1975 . BCML ceased to be a subsidiary of BCEL with effect from 25th June, 1979 and its shares were listed on the Calcutta Stock Exchange (CSE) in 1979. The Balrampur Mill started with a crushing capacity of 800 TCD (Metric Tonnes crushed per day) in 1975 and has since been expanded to its present capacity of 12,000 TCD.

4) Bajaj Hind:- Bajaj Hindustan Limited (BHL) was incorporated on 23rd November, 1931 under the name - The Hindustan Sugar Mills Limited on the initiative of Jamnalal Bajaj - a businessman, confidante, disciple and adopted son of Mahatma Gandhi. He sought Gandhiji's blessings in this new venture, which, apart from being a sound commercial proposition would also meet a national need. Till then, there were barely thirty sugar factories in the country.

The site selected for the first plant was at Golagokarannath, district Lakhimpur Kheri in the Terai region of Uttar Pradesh (UP), an area rich in sugar cane. The original capacity of the factory was 400 tons of cane crushed per day (TCD). Subsequently, this capacity was increased in stages and is currently 13,000 TCD. In 1967, a new Company - Sharda Sugar & Industries Limited - was established as a subsidiary of Hindustan Sugar Mills Limited.5)Triveni Engg.:- Triveni Engineering & Industries Ltd is a focused, growing corporation having core competencies in the areas of sugar and engineering. The company is among the three largest sugar manufacturers in India, and the market leader in its engineering business comprising steam turbines, high speed gears, gearboxes and water treatment solutions. The company has four subsidiaries namely, Triveni Retail Ventures Ltd, Upper Bari Generation Ltd, Triveni Engineering Ltd and Triveni Energy Ltd. The company has three business Sugar and Allied Businesses, Engineering Businesses, and other. Sugar and Allied Businesses includes Sugar, Co-generation and Distillery operations. 6) Andhra Sugar:- Andhra Sugars is engaged in manufacturing and marketing of sugar. Incorporated in 1947, the company also has business interest in area of organic and inorganic chemicals, edible and non-edible vegetable oils and non-conventional power generation. The Andhra Pradesh-based company has manufacturing facilities located at Tanuku, Kovvur, Guntur, Taduvai, Saggonda and Bhimadole. Andhra Sugars is primarily focused on manufacturing of sugar and chemicals with power generation.Andhra Sugars has associate companies namely Sree Akkamamba Textiles manufacturing various grades of cotton yarn, polyster cotton blended yarn and viscose cotton blended yarn; and Andhra Petrochemicals produces Oxo-Alcohols

7) Dhampur Sugar:- Dhampur Sugar Mills was established in 1933, and began its operations in a small town called Dhampur located in the state of Uttar Pradesh, India , with a sugar mill having a crushing capacity of 300 tonnes of cane per day.Lala Ram Narain ji[1880 1943], founder of the Dhampur Group, took on the task of supporting his entire family at a very young age and shouldered his responsibilities with fortitude and confidence. During this period he worked with a forest contractor but the craving to press forward and accomplish, burnt deep within his heart. He soon spotted an opportunity in supply of wooden sleepers, for laying new railway tracks and boldly struck out on his own. His determination defied logistics and laid the foundations of the Dhampur Group.8) KCP Sugar:- Late Sri V. Ramakrishna promoted the Company The K.C.P.Ltd on 03.07.1941. It had over the years grown multi-fold with multi-product activities. In the light of its large operation, the Management of The K.C.P.Limited decided to hive off Sugar, Distillery, Environment and Workshop operations under the Management of K.C.P.Sugar and Industries Corporation Limited (KSICL), Chennai. Hence then, the company witnessed steady growth. The Company is engaged in the manufacture and marketing of wide range of products that can be broadly classified under three groups, viz., (1) Sugar (2) Bio-products (3) Engineering unit for manufacture of solid liquid separation equipments through its subsidizing. The catering to the needs of many process industries contributing to sustains pollution free environment.9) Ponni Sugar:- Ponni Sugars (Erode) Ltd was incorporated in 1996, it is an offspring of Ponni Sugars and Chemicals (PSCL) under a Demerger Scheme sanctioned by the High Court of Madras on September 10, 2001. In terms of the scheme, the company took over the business of Erode Undertaking with concurrent transfer of major part of stakeholders interest in PSCL to the company. Ponni Sugars is the brainchild of late S Viswanathan, a renowned industrialist of the South.The Erode sugar mill was set up with 1250 TCD capacity in 1984 in a record time of 12 months. It achieved full capacity crushing during the very first year of its commercial operation that enabled declaration of a maiden dividend of 10% in that very first year, a record in the annals of sugar industry. It was a trendsetter in mobilizing surplus cane during its infancy stage from neighboring sugar mills and extending crushing season to well above industry average. Its capacity was expanded to 2500 TCD in 1994. 10) Dalmia Sugar:- Sugar business was made in mid-Nineties and first unit of 2500 TCD was set up at Village Ramgarh in Sitapur district of U.P. in 1994. During 2006-07, company embarked on a major growth path by setting up two Greenfield plants at Jawaharpur (Dist. Sitapur, U.P.) and Nigohi (Dist. Shahjahanpur, U.P.) and expanding existing facilities at Ramgarh unit. The total cane crushing capacity of the company is now 22500 TCD which makes us one of the leading sugar producers in the country. We are now a fully integrated player with 79 MW of cogeneration capacity & a distillery of 80 KLPD. We also have facilities for processing of raw sugar. Due to this emphasis on world class systems, we produce sugar of high quality which has found wide acceptance in markets in U.P. & eastern India and institutional buyers such as Pepsi, Coke, Britannia, Bharati Wal-Mart, Parle etc. who have stringent quality norms.Products

PROCESS CHART

SWOT ANALYSIS

1.Dr. G. Malyadri,Associate Professor, B. Sudheer Kumar,Assistant Professor Dept of MBA,Sreenivasa Institute of Technology and Management Studies (SITAMS), Andhra Pradesh, INDIA. Indian sugar industry is highly stragmented with organize and un organized players. The unorganized players mainly produce gaur and Khandsari, the fess refined forms sugar. The sector has a number of transformational opportunities. These opportunities have remained largely untapped. The industry has the potential to cater to the large and growing domestic sugar consumption and emerge as a significant carbon credit and power producer. Further, the industry can improve its cost competitiveness through higher farm productivity and by managing the domestic production variation through international trade with a focus on countries in the Indian Ocean. Thus, transformed sector would be less cyclical with greater alignment between sugar cane and sugar prices, and will have stable diversified sources of revenue.2. P.Chellaswamy and S.V.Revathi Sugar industry is the largest agro-based industry located in the rural India. About 45 million sugarcane farmers, their dependents and a large mass of agricultural labors are involved in sugarcane cultivation, harvesting and ancillary activities, and constituting 7.5 per cent of the rural population. Beside these, about 0.5 million skilled and semi-skilled workers, mostly from the rural areas are engaged in the sugar industry. The sugar industry in India has been a focal point for socio-economic development in the rural areas by mobilizing rural resources, generating employment and higher income, transport and communication facilities. Further, many sugar factories have established schools, colleges, medical centers and hospitals for the benefit of the rural population. Some of the sugar factories have also diversified into byproduct based industries and have invested and put up distilleries, organic chemical plants, paper and board factories and cogeneration plants. The industry generates its own replenish able biomass and uses it as fuel without depending on fossil fuel. The sugar industrys contribution to the Indian economy is, therefore, enormous. There are 553 installed sugar mills in the country with a production capacity of 180 lakhs MTs of sugar. 3. M. Balasubramanian Assitant Professor in commerce (SFC), Jamal Mohamed College, Triuchirappalli. Tamilnadu-Indian sugar industry, second largest agro-based processing industry after the cotton textiles industry in country, has a lion's share in accelerating industrialization process and bringing socio-economic changes in under developed rural areas. Sugar industry covers around 7.5% of total rural population and provides employment to 5 lakh rural people. About 4.5 crores farmers are engaged in sugarcane cultivation in India. Sugar mills (cooperative, private, and public) have been instrumental in initiating a number of entrepreneurial activities in rural India. Present paper is an attempt as to review progress of sugar industry in India, understand its problems and challenges in context of ongoing liberalization process. Indian sugar industry can be a global leader provided it comes out of the vicious cycle of shortage and surplus of sugarcane, lower sugarcane yield, and lower sugar recovery, ever increasing production costs and mounting losses. It needs quality management at all levels of activity to enhance productivity and production. Attention is required on cost minimization and undertaking by product processing activities.4. An Economic Analysis Sarbapriya Ray Dept. of Commerce, Shyampur Siddheswari Mahavidyalaya, This paper attempts to measure the economic performance of Indian sugar industry in terms of capacity utilization measured econometrically at aggregate level over a period from 1979-80 to 2008-09. In this study, Optimal output is defined as the minimum point on the firms short run average total cost curve and the rate of capacity utilization is merely ratio of its actual output to capacity output level. Under Choice theoretic framework, the results suggest that a significant variation in the capacity utilization rates over years within same industry was found. There has been diminishing capacity utilization growth rate in this industry during post reform period. The impact of liberalization on economic capacity utilization of Indian sugar industry is noticed to have significant negative impact. 5. Sugar Ltd Sivagangai Unit. Prof. Mr. Nidhyananth Ms.C.Aarthi: Tamil Nadu, India Sakthi Sugars Limited was established in the year 1961, with commercial production of Sugar commencing in the year 1964 at its Sakthinagar Sugar plant. Today it has in its fold four Sugar plant three of them in Tamil Nadu located at Sakthinagar, Sivaganga and Modakurichi and one plant in Orissa at Dhenkanal. With the aggregate capacity of 19,000 Tonnes of cane Crush per Day (TCD), Sakthi Sugars Limited is one of the largest producers of Sugar in the country. Expanding its industrial presence, Sakthi Sugars Limited diversified into manufacturing of Industrial Alcohol in the year 1972 at Sakthinagar, Tamil Nadu and at Dhenkanal, Orissa in the year 1996. Sakthi Sugars Limited is one of the important members of the Sakthi Group contributing a large share of revenue to the group's turnover. In its pursuit for business excellence, the Sakthi Group, ever since its inception has been staunchly inclined towards fulfilling its social commitments.6. Kadapa (Dist), Andhra Pradesh, India.Financial Distress is a situation where a firm's operating cash flows are insufficient to satisfy current obligations and the firm is forced to take corrective actions. A firm in financial distress may also face bankruptcy or liquidation to meet its liabilities. Financial Distress may be caused by losses and dividend reduction. This paper uses the Altman's Z-score model to predict the risk of financial distress of select sugar manufacturing units in Andhra Pradesh, India. The results clearly indicate that the liquidity, working capital turnover efficiency and solvency position of the companies is not good. The Z-Score analysis also shows the companies are suffering from the financial distress and tending towards bankruptcy.7. Dr. M. Prakash V. VasugiThe financial analysis is the process of identifying the financial strength and weakness of the firm by establishing relationship between the items of balance sheet and the profit and loss account. The study throws light on various efficiency utilizing its aspects and the overall financial performance of the company. The objective of the study includes the liquidity, profitability and activity position of the company. Both primary and secondary sources of data were used is the study and for analysis mainly secondary data has been used. Based on the financial analysis suitable suggestions were given by the researcher for a better financial performance of the company.8. S P SinghPerformance assessment of the sugar industry and setting targets for the relatively inefficient mills to improve their efficiency and productivity is crucial, as the interests of various stakeholders are largely dependent on its performance. This paper, therefore, attempts to assess the performance of the sugar mills of Uttar Pradesh, the largest sugarcane producing stateof India. Data envelopment analysis models have been applied on the input-output data of 36 sugar mills for the period 1996-97 to 2002-03. The paper finds that during the period, the average overall technical efficiency (OTE) in the sugar mills of the State has been 93 per cent. This implies that an average mill can make radial reduction in all its inputs by 7 per cent without detriment to its output levels. The OTE shows a cyclical pattern mainly due to fluctuations in the scale efficiency. The performance of the mills is found to vary significantly across sector, plantSize and region. The private sector mills achieve the highest efficiency scores, followed by the cooperative sector. It has also been observed that the mills with bigger plant size attain relatively higher efficiency scores. Moreover, the mills located in the WR are found better performer asCompared to their counterparts of other regions. Labour and energy inputs are found highly underutilized in almost all the inefficient mills. Targets set for relatively inefficient mills suggest that on average, these mills can become as efficient as the mills in their reference set, if they could adjust their operation to the associated target point determined by the efficient mills that define their reference set.9. Dr. K. Sivaraman1, Dr. S. Kadirvelu2Indian sugar industry is the second largest agro based processing industry after the cotton textile industry in the country. India is the second major sugar producing country in the world. Sugar industry occupies an important place among organized industries in India. This industry has been instrumental in resource mobilization, employment generation, income generation and creating social infrastructure in rural areas1. Indeed, sugar industry has facilitated and accelerated the pace of rural industrialization. At present, there are 553 registered sugar factories having capital investment of Rs.50, 000 crores and annual production capacity of 180 lakh metric tones2. The annual turnover of the industry is to the tune of Rs.25, 000 crores. The central and state governments reserve annually Rs.2, 500 crores as excise duty, purchase tax, and cess from sugar industry3. More than 4.50 crores farmers are engaged in sugarcane cultivation and about 5 lakh rural people have been in direct employment in the industry. Sugar industry has brought about the socio-economic changes in rural India by way of facilitating entrepreneurial activities such as dairies, poultries, fruits and vegetables processing, and providing educational, health and credit facilities.

Rationale & Research ObjectivesINTRODUCTIONThe research is find out financial performance of the sugar industries for the past five years. A sincere attempt has been made include all the aspect relating to the study. for their purpose analysis of financial performance of the company has been published financial performance and all aspect the researcher should be included in the reports. The financial analysis is the process of identifying the financial strength and weakness of the firm by establishing relationship between the items of balance sheet and the profit and loss account. The study throws light on various efficiency utilizing its aspects and the overall financial performance of the companies. The objectives of our research is to find out the liquidity, profitability and activity position of the companies. The secondary data required for analysis the performance of selected sugar industries. Based on the financial analysis suitable suggestions are given by the researcher far a better financial performance of the company.Here Researchers topic is A Study on Financial Status of selected Sugar Manufacturing Units in India

Its through companies can knowing that there requirement of the liquidity, Working capital, their financial distress etc. and its through management can take decision about the financial maintenance and also how much capital are kept as short term finance as well as long term finance it is helpful to companies.

Here researchers has selected top 10 sugar Companies in India on the basis of market capitalization.

Financial Distress is a situation where a firms operating cash flows are insufficient to satisfy current obligations and the firm is forced to take corrective actions. A firm in financial distress may also face bankruptcy or liquidation to meet its liabilities. Financial Distress may be caused by losses and dividend reduction.

This Report uses the Altmans Z-score model to predict the risk of financial distress of select sugar manufacturing units as per market Capitalization in India. The results through us easily know that the liquidity, working capital turnover efficiency and solvency position of the companies is good or bad. The Z-Score analysis also shows the companies are suffering from the financial distress and tending towards bankruptcy.

Tight cash situation is one in which a business, household, or individual cannot pay the owed amounts on the due date. If prolonged, this situation can force the owing entity into bankruptcy or forced liquidation. It is compounded by the fact that banks and other financial institutions refuse to lend to those in serious distress.

When a firm is under financial distress, the situation frequently sharply reduces its market value, suppliers of goods and services usually insist on COD terms, and large customers may cancel their orders in anticipation of not getting deliveries on time. Financial distress is a stage before bankruptcy where a companys creditors are paid with significant difficulty or not being paid. While a company can avoid moving from financial distress to bankruptcy, it can be very difficult. Often financial distress is indicated by additional costs, such as fees paid to lawyers or the costs of extra interest for late payments. The Z-score FormulaZ-Score = 1.2x1 + 1.4X2 + 3.3X3 + 0.6X4 + 1.0X5

WhereX1= Working Capital/Total AssetsX2 = Retained Earnings/Total AssetsX3 = Earnings before Interest & Tax/Total AssetsX4 =Total Equity/Total LiabilitiesX5 = Sales/Total Assets

< 1.21 lead to bankruptcy 1.21 to 2.99 poor financial performances >2.99 good financial performance.

STATEMENT OF THE PROBLEM

The statement of problem is A study on Financial Status of selected Sugar Manufacturing Companies in India.

OBJETIVES OF THE STUDY1) To study the efficiency of cash and inventory management of the company2) To measure the overall financial position of the organization with the help of ratio analysis.3) To study the process of sugar industry.4) To analyze the Growth and Trend of select sugar companies in India.5) To Analysis the Liquidity position of selected sugar manufacturing units in India.6) To Analysis the Financial performance of selected sugar manufacturing units in India Through with Altmans Z-Score model.

Generally, the research methodology is the process of colleting the data with the proper finding form different areas of the company as well as the data available externally, which helps the researcher to make an analysis. As the researcher when collects the data would have to decide which sort of a data are required for preparing the study, accordingly the method used should be with the necessary effective measures. Generally, the data that were collected was published available in: Books, magazines and newspapers Reports and statements from internet websites Reports prepared by researchers in different fields Various publications By discussing with the peoples Likewise, Thus, the data that was collected had essential information of previous years financial statements and related websites that was useful.RESEARCH DESIGN:-Research design is the plan, structure & strategy of investigation conceived so as to obtain answers to questions & to control variance. The definition consists of three important terms plan, structure & strategy. The plan is an outline of the research scheme on which the research is to work. The structure of the research is a more specific outline or the scheme and the strategy shows how the research will be carried out specifying the methods to be used in the collection and analysis of data.RESEARCH TYPEIn the Research type there are three type of research1. Exploratory research2. Descriptive research3. Causative researchHere Researchers uses the Descriptive research design. A descriptive study adopted because detailed information is required for the study.

DATA COLLECTION METHODThere are two types Of Data Collection Method:- Primary Method Secondary MethodResearchers are using secondary data collection method for this research. The Secondary DataSecondary data are already someone fined early time and from that data new researcher ready to refer that secondary data after they continue with their study and find out something new from that data. Which is very useful to present conditions of company, company can sometime implement better solution which is fined by researcher. 1. Annual report of the companies.2. Published Journals and Books3. Internet and other secondary sourcesOn the context of the topic researchers have use secondary data and done the Z score model.SOURCES OF DATA-Annual reports of the selected sugar industries.- Magazines and Journal -Websites of related companies -BooksPopulation: - All Sugar manufacturing companies in India.Sample size - For the Research purpose, Researchers are selecting Top 10 sugars manufacturing Units based on its market capitalization.Sampling Method:-Researchers have used Convenience Sampling method for this research.Data Analysis using:--- Z score model-- ANOVA

SCOPE OF THE STUDY

The research study covers the study of Indian sugar industry. The study looks into the competition patterns of both the products globally as well as regionally. The study also covers the duty structure of both the products in prospective markets.The research study puts special emphasis on the financial position and seasonal cycles of sugar production and pricing.

HYPOTHESISH0 1 There is no significant differences between working capital to total assets among the selected sugar manufacturing units in India.

H0 2 There is no significant differences between retain earning to total assets among the selected sugar manufacturing units in India.

H0 3 There is no significant differences between EBIT to total assets among the selected sugar manufacturing units in India.

H0 4 There is no significant differences between Market value of equity to total assets among the selected sugar manufacturing units in India.

H0 5 There is no significant differences between sales to total assets among the selected sugar manufacturing units in India.

H0 6 There is no significant differences between mean EPS of the selected sugar manufacturing units in India.

H0 7 There is no significant differences between mean PAT of the selected sugar manufacturing units in India.

H0 8 There is no significant differences between mean ROE of the selected sugar manufacturing units in India.

BALANCE SHEET1. EID Parry:

in Rs. Cr.

Mar '14Mar '13Mar '12Mar '11Mar '10

Sources Of Funds

Total Share Capital17.5817.5817.3717.3217.27

Equity Share Capital17.5817.5817.3717.3217.27

Share Application Money0.000.000.000.000.00

Preference Share Capital0.000.000.000.000.00

Reserves1,261.841,329.301,194.861,127.421,073.39

Net worth1,279.421,346.881,212.231,144.741,090.66

Secured Loans1,285.801,126.78422.07456.80486.63

Unsecured Loans500.53596.31367.28196.6988.61

Total Debt1,786.331,723.09789.35653.49575.24

Total Liabilities3,065.753,069.972,001.581,798.231,665.90

Application Of Funds

Gross Block2,382.582,003.431,306.831,266.601,229.05

Less: Revaluation Reserves0.000.005.405.545.68

Less: Accum. Depreciation901.22773.66541.84483.70412.65

Net Block1,481.361,229.77759.59777.36810.72

Capital Work in Progress48.8962.0163.9732.5035.78

Investments544.78871.10682.78434.14682.82

Inventories1,049.66782.53255.43190.46190.59

Sundry Debtors247.39215.44229.99129.10117.10

Cash and Bank Balance63.2216.9224.727.557.69

Total Current Assets1,360.271,014.89510.14327.11315.38

Loans and Advances393.91456.75731.60479.89212.14

Fixed Deposits0.000.009.8541.8566.34

Total CA, Loans & Advances1,754.181,471.641,251.59848.85593.86

Deferred Credit0.000.000.000.000.00

Current Liabilities752.31554.24432.96287.37406.18

Provisions11.1510.31323.397.2551.10

Total CL & Provisions763.46564.55756.35294.62457.28

Net Current Assets990.72907.09495.24554.23136.58

Miscellaneous Expenses0.000.000.000.000.00

Total Assets3,065.753,069.972,001.581,798.231,665.90

Contingent Liabilities319.26231.08168.37100.2454.39

Book Value (Rs)72.7876.6369.8066.09126.29

2. Shree Renuka: In Rs. Cr.Mar '14Mar '13Mar '12Mar '11Mar '10

Sources Of Funds





Reserves1,268.561,725.861,713.371,712.451,211.92

Net worth1,335.691,792.991,780.501,779.491,264.20

Secured Loans3,231.671,929.803,553.041,692.221,257.99

Unsecured Loans144.0356.82432.8323.6441.53

Total Debt3,375.701,986.623,985.871,715.861,299.52


Mar '14Mar '13Mar '12Sep '10Sep '09


Gross Block3,390.693,266.973,057.501,802.501,406.62



Net Block2,695.842,735.102,683.051,571.051,256.86


Investments2,013.962,012.892,013.491,639.28105.99

Inventories1,003.392,058.841,719.161,135.951,002.32

Sundry Debtors248.13173.51176.51315.94104.27


Total Current Assets1,322.492,323.821,906.061,456.311,113.65


Fixed Deposits0.000.000.0019.05203.22

Total CA, Loans & Advances1,922.953,208.402,725.002,230.592,070.73


Current Liabilities1,942.194,160.691,772.832,136.361,013.44

Provisions3.5343.112.82229.66100.41

Total CL & Provisions1,945.724,203.801,775.652,366.021,113.85

Net Current Assets-22.77-995.40949.35-135.43956.88


Total Assets4,711.403,779.635,766.373,495.342,563.71

Contingent Liabilities2,368.442,019.002,095.421,224.68389.00

Book Value (Rs)19.9026.7126.5226.5439.24

3. Balrampur Chini:In Rs. Cr.


Sources Of Funds





Reserves1,194.031,298.621,193.681,263.551,149.39

Net worth1,218.511,323.051,218.111,289.181,175.07

Secured Loans1,348.001,486.601,422.371,706.69972.03

Unsecured Loans0.000.00293.51300.000.00

Total Debt1,348.001,486.601,715.882,006.69972.03



Gross Block2,660.952,525.232,511.252,500.602,374.50


Less: Accum. Depreciation1,138.581,004.10898.76790.67604.40

Net Block1,522.371,521.131,612.491,709.751,769.92


Investments40.8743.2344.25128.61126.57

Inventories2,092.291,886.571,997.791,491.31343.43

Sundry Debtors64.06181.38146.9689.7417.10


Total Current Assets2,299.792,259.142,156.221,610.16392.20


Fixed Deposits0.000.000.003.121.30

Total CA, Loans & Advances2,593.652,656.732,551.372,143.39859.71


Current Liabilities1,585.301,346.981,261.38524.25417.12

Provisions5.3869.5813.17168.08200.12

Total CL & Provisions1,590.681,416.561,274.55692.33617.24

Net Current Assets1,002.971,240.171,276.821,451.06242.47


Total Assets2,566.512,809.642,933.993,295.872,147.10


Book Value (Rs)49.7754.1549.8650.3045.77

4. Bajaj Hind:

in Rs. Cr.

BALANCE SHEETMar '14Mar '13Mar '12Mar '11Mar '10

Shareholders Funds

Share capital63.9463.9422.8419.1417.69

Reserves and surplus2,495.304,030.343,117.073,117.822,275.98

Sub Total2,559.244,094.283,139.913,136.962,293.67

Non-current liabilities

Long-term borrowings2,509.571,500.692,239.742,788.601,538.00

Other long-term liabilities179.40----

Deferred tax liabilities (net)--87.7483.43108.04

Long-term provisions41.3631.8426.86173.26169.36

Sub Total2,730.331,532.532,354.343,045.291,815.40

Current liabilities

Short-term borrowings3,076.143,286.301,424.332,328.241,179.51

Trade payables2,815.92236.40284.82410.64210.91

Other current liabilities1,337.041,034.962,574.891,732.60829.76

Short-term provision9.7412.8314.8418.7218.06

Sub Total7,238.844,570.494,298.884,490.202,238.24

Total12,528.4110,197.309,793.1310,672.456,347.31

ASSETS

Non-current assets

Fixed assets

Tangible assets4,986.715,419.505,389.125,478.742,630.96

Intangible assets0.130.350.521.171.54

Capital work-in-progress8.147.4024.2985.12118.40

Non-current investments2,431.051,600.361,343.791,113.34549.06

Long-term loans and advances60.5792.1174.8793.4473.16

Other non-current assets1.401.681.32--

Sub Total7,488.007,121.406,833.916,771.813,373.12

Current assets

Current investments--0.050.050.05

Inventories2,673.50558.24467.821,921.36800.45

Trade receivables225.48192.02248.20163.1028.57

Cash and bank balances128.24180.30583.77479.20112.35

Short-term loans and advances1,491.111,735.821,227.261,013.031,748.72

Other current assets522.08409.52432.12323.90284.05

Sub Total5,040.413,075.902,959.223,900.642,974.19

Total12,528.4110,197.309,793.1310,672.456,347.31

5) TRIVENI:In Rs. Cr.






Reserves782.57935.81989.96948.95880.66

Net worth808.36961.601,015.75974.74906.45

Secured Loans1,001.14786.19754.14850.98758.75

Unsecured Loans12.2670.2171.7483.1875.05

Total Debt1,013.40856.40825.88934.16833.80



Gross Block1,654.771,616.591,583.501,687.511,634.87



Net Block950.341,019.561,056.211,218.981,248.16


Investments38.1341.0311.0311.1726.98

Inventories1,402.06538.30393.57491.16458.12

Sundry Debtors228.07209.65192.45278.97242.53


Total Current Assets1,644.05758.44597.13784.05716.30


Fixed Deposits0.000.004.425.1611.67

Total CA, Loans & Advances1,998.291,222.441,136.461,275.361,188.51


Current Liabilities1,085.88414.60321.92542.37646.37

Provisions80.9257.7657.4576.5697.27

Total CL & Provisions1,166.80472.36379.37618.93743.64



Total Assets1,821.781,818.021,841.631,908.901,740.24


Book Value (Rs)31.3437.2939.3937.8035.15

1) Andhra:In Rs. Cr.

Mar'14Mar '13Mar '12Mar '11Mar '10





Reserves536.52497.34441.10369.42350.22

Net worth563.63524.45468.21396.53377.33

Secured Loans91.9450.57130.32149.0668.21

Unsecured Loans137.28147.21134.37159.22141.96

Total Debt229.22197.78264.69308.28210.17

Total Liabilities792.85722.23732.90704.81587.50


Gross Block901.66888.06841.11800.33743.35



Net Block466.94494.64487.16483.51445.72


Investments103.0678.0474.7275.2274.09

Inventories358.46289.06301.41250.25131.16

Sundry Debtors91.0090.9490.5252.4444.20


Total Current Assets472.02405.89414.31323.61186.73


Fixed Deposits0.000.000.001.872.49

Total CA, Loans & Advances615.74531.59535.36439.10301.83



Provisions134.42123.38119.7290.8485.22




Total Assets792.86722.23732.90704.81587.49


Book Value (Rs)207.93193.47172.73146.28139.20

2) DHAMPUR:In Rs. Cr.

Mar'14Mar '13Mar '12Mar '11Mar '10

Sources Of Funds





Reserves363.99403.84422.52446.11437.01

Net worth446.88487.20485.33508.92499.46

Secured Loans1,158.291,273.41857.58818.53700.45

Unsecured Loans51.8523.3322.7077.2631.69

Total Debt1,210.141,296.74880.28895.79732.14


Mar '14Mar '13Mar '12Mar '11Sep '09


Gross Block1,726.221,642.741,446.761,371.521,270.62



Net Block1,085.951,073.01984.98976.30958.74


Investments11.5511.588.9945.4627.78

Inventories1,224.341,311.26710.23667.29419.58

Sundry Debtors110.25144.06216.2785.2289.30


Total Current Assets1,349.521,468.19939.71764.21519.06


Fixed Deposits0.000.000.0011.0726.86

Total CA, Loans & Advances1,425.821,552.881,015.04973.44655.70


Current Liabilities1,042.96829.06645.00583.70430.51

Provisions30.3743.8933.2324.5323.69

Total CL & Provisions1,073.33872.95678.23608.23454.20



Total Assets1,657.021,783.941,365.611,404.711,231.60


Book Value (Rs)73.6384.9388.3992.7792.93

3) KCP:In Rs. Cr.Mar'14Mar '13Mar '12Mar '11Mar '10

Sources Of Funds





Reserves224.28207.89182.40165.19159.26

Net worth235.62219.23193.74176.53170.60

Secured Loans51.6210.320.007.2515.08

Unsecured Loans35.5938.05107.2639.2927.31

Total Debt87.2148.37107.2646.5442.39



Gross Block234.16233.98231.97229.16224.43



Net Block105.14115.21120.46129.20135.24


Investments34.3633.8235.7125.3818.96

Inventories280.74217.05227.94210.08110.98

Sundry Debtors20.6721.5712.3911.485.06




Fixed Deposits0.000.000.001.610.81




Provisions18.8121.1712.489.2713.66




Total Assets322.82267.59301.01223.08212.99


Book Value (Rs)20.7819.3317.0915.5715.05

4) Ponni sugars:In Rs. Cr.Mar'14Mar '13Mar '12Mar '11Mar '10

Sources Of Funds





Reserves115.16120.54102.9487.6571.04

Net worth123.76129.14111.5496.2579.64

Secured Loans81.4080.3148.2816.4534.30

Unsecured Loans0.000.000.000.000.00

Total Debt81.4080.3148.2816.4534.30



Gross Block175.75172.7873.0571.6870.95



Net Block133.39133.0944.1745.2147.03


Investments20.7920.7920.798.298.29

Inventories72.1473.8346.9466.5889.69

Sundry Debtors11.5616.8911.853.5212.27




Fixed Deposits0.000.000.000.001.14




Provisions12.109.3211.652.0020.35




Total Assets205.16209.45159.82112.70113.95


Book Value (Rs)143.93150.19129.72111.9492.62

5) DALMIA:In Rs. Cr.Mar '14Mar '13Mar '12Mar '11Mar '10

Sources Of Funds





Reserves444.52441.00423.81418.181,307.60

Net worth460.71457.19440.00434.371,323.79

Secured Loans683.81691.12640.30453.792,740.20

Unsecured Loans66.0064.0050.00205.00110.21

Total Debt749.81755.12690.30658.792,850.41



Gross Block1,252.041,075.80952.34932.553,373.62



Net Block767.31635.35574.00590.852,530.31


Investments77.9360.4941.1438.65800.98

Inventories629.31720.00583.74493.24707.40

Sundry Debtors18.1870.4676.2220.48213.82


Total Current Assets695.18817.30736.54555.681,110.96


Fixed Deposits0.000.000.0012.9121.11

Total CA, Loans & Advances857.81956.21858.61696.041,389.58



Provisions4.846.903.914.9115.34




Total Assets1,210.521,212.311,130.301,093.174,174.19


Book Value (Rs)56.9256.4954.3653.67163.55

1. EID PARRY YearW.C./T.AR.E./T.A.EBIT/T.A.EQ/T.A.SA/T.A.Z Score

20100.080.4270.1240.650.692.17

20110.310.1950.0220.630.71.78

20120.250.2050.0480.610.771.73

20130.290.1970.0760.440.651.78

20140.320.0880.0330.420.581.44

Financial Status of EID Parry Sugar Manufacturing Units-Z Score Model

The Last five year data through analysis that all the year z score is more than 1.21 so it is not leading in bankruptcy in any year.

All the last five year score is between the more than 1.21 and less than 2.99 so it is indicative of poor financial performance of the company.

Thus, The EID Parrys indicative poor financial performance during the study period 2010-2014.

< 1.21 lead to bankruptcy 1.21 to 2.99 poor financial performances >2.99 good financial performance

2) SHREE RENUKAYearW.C./T.AR.E./T.A.EBIT/T.A.EQ/T.A.SA/T.A.Z Score

20100.37320.030.1460.490.872.17

2011-0.0390.0220.1850.511.572.43

20120.1550.010.01280.311.11.64

2013-0.2630.0120.1580.471.692.18

2014 -0.00500.0290.281.381.45

Financial Status of Shree Renuka Sugar Manufacturing Units-Z Score Model

In the year of 2010 z score is less than the 1.21 so it lead bankruptcy. But next all the years more than 1.21 so that improve the financial performance of the company. During the year 2011 to 2014 score is between 1.21 to 2.99 so it indicative the poor financial performance the company.

Renuka Sugar industrys financial performance in 2010 was bad but after all years it improve and become poor financial performance.

YearW.C./T.AR.E./T.A.EBIT/T.A.EQ/T.A.SA/T.A.Z Score

20100.110.0290.210.550.81.99

20110.440.0270.160.390.882.2

20120.440.0340.0810.410.781.86

20130.440.0250.1490.470.161.49

20140.390.0380.0830.441.042.28

3) BALARAM PUR SUGAR

Financial Status of Balrampur Chini Manufacturing Units-Z Score Model

In all the year of 2010 to 2014 score is more than the 1.21 so it not lead to bankruptcy. During the last 5 year score is analyses between 1.21 to 2.99 so it indicative the poor financial performance the company.

Thus, The indicative Balrampur company poor financial performance during the study period 2010-2014.

YearW.C./T.AR.E./T.A.EBIT/T.A.E.Q/T.A.SA/T.A.Z Score

20100.380.0220.0690.420.2981.26

20110.230.0140.0530.360.331.01

20120.19-0.130.0970.380.591.17

20130.2100.0510.460.481.17

20140.0880-0.00950.310.820.78

4) BAJAJ HINDUSTAN

Financial Status of Bajaj Hind Sugar Manufacturing Units-Z Score Model

In the year 2010 score was above the 1.21 and so is not bankruptcy in the financial performance.

The year 2011 to 2014 score is less than 1.21 so is lead to bankruptcy in the financial performance of the company.

Mostly the score is less than the 1.21 so their financial performance indicative poor financial performance. 5) TRIVENI YearW.C./T.AR.E./T.A.EBIT/T.A.EQ/T.A.SA/T.A.Z Score

20100.250.0490.250.521.092.58

20110.340.0310.120.511.172.31

20120.410.0350.090.560.922.08

20130.4100.0970.531.022.14

20140.4600.0350.441.733.19

Financial Status of Triveni Sugar Manufacturing Units-Z Score Model Triveni sugar ltd. All the last five years score is more than the 1.21 so it indicative that not lead to bankruptcy but all the year more than 1.21 and less than 2.99 so is indicative poor financial performance.

Thus Its through said that triveni sugar ltd. have poor financial performance.

6) ANDHRA SUGARYearW.C./T.AR.E./T.A.EBIT/T.A.EQ/T.A.SA/T.A.Z Score

20100.0530.180.250.640.982.49

20110.20.1740.140.560.711.98

20120.220.1980.250.641.0332.77

20130.20.020.250.721.151.14

20140.2580.1760.160.710.922.42

Financial Status of Andhra Sugar Manufacturing Units-Z Score Model

The Andhra sugar ltd. In the year of 2010 to 2012 score is more than 1.21 but less than the 2.99 it indicative the poor financial performance not lead bankruptcy

In the year 2013 z score less than the 1.21 so it is lead to bankruptcy but again in the year 2014 increase the score till 2.42 so it good and improve the financial performance the company.

7) DHAMPUR SUGER YearW.C./T.AR.E./T.A.EBIT/T.A.EQ/T.A.SA/T.A.Z Score

20100.180.060.090.40.541.58

20110.260.220.140.360.671.96

20120.250.0550.140.351.692.72

20130.380.0370.110.260.861.87

20140.210-0.180.250.890.68

Financial Status of Dhampur Sugar Manufacturing Units-Z Score Model

Dhampur sugar company in the year 2010 to 2013 z score is more than the 1.21 so is is not lead to bankruptcy but again the year 2014 below till 0.68 so that is indicative the bankruptcy in the recent year.

Thus dhampur sugar ltd. have poor financial performance.

8) KCP SUGERYearW.C./T.AR.E./T.A.EBIT/T.A.EQ/T.A.SA/T.A.Z Score

20100.270.2560.2120.81.163.01

20110.2980.260.090.790.872.35

20120.470.250.140.641.082.81

20130.440.370.250.811.553.89

20140.540.340.130.731.053.03

Financial Status of KCP Sugar Manufacturing Units-Z Score Model

KCP Sugar ltd. In the year 2010 z score is greater than the 2.99 so that it is indicative good financial performance. But again in the year 2011 and 2012 it is decrease 2.35 and 2.81 respectively so is derive poor financial performance.

In the year 2013 and 2014 it is increase the 2.99 so that indicative good financial performance and improve the performance.

KCP Sugar Ltd. have good financial performance.

9) PONNI SUGAR YearW.C./T.AR.E./T.A.EBIT/T.A.EQ/T.A.SA/T.A.Z Score

20100.510.820.650.72.146.44

20110.390.50.140.62.414.37

20120.0660.560.20.691.693.61

20130.260.450.130.611.012.73

20140.2500.0210.60.821.55

Financial Status of Ponni Sugar Manufacturing Units-Z Score Model

Ponnni sugar industry In the year of 2010 to 2013 z score is more than the 2.99 so that it indicative the good financial performance of the company.

But After the Year 2013 and 2014 is decrease still 2.73 and 1.55 respectively so that it is less than the 2.99 thus it is not good for the company and is indicatives poor financial performance the company.

10) DALMIA SUGERYearW.C./T.AR.E./T.A.EBIT/T.A.EQ/T.A.SA/T.A.Z Score

20100.140.0210.110.320.511.06

20110.420.0410.0610.40.611.60

20120.450.0880.0560.390.631.70

20130.410.0760.130.370.822.06

20140.290.0820.0890.380.981.95

Financial Status of Dalmia Sugar Manufacturing Units-Z Score Model

In the year of 2010 score is less than the 1.21 so it lead to bankruptcy but after the year 2011 to 2014 it is increase so it is good for the company.

The last Four year 2011 to 2014 z score is greater than the 1.21 but less the 2.99 so it is indicative the poor financial performance of the company.

< 1.21 lead to bankruptcy1.21 to 2.99 poor financial performances>2.99 good financial performance

Average

Company NameAverage Of Z score

EID1.78

Renuka1.97

Balrampur1.96

Bajaj1.07

Triveni2.46

Andhra2.16

Dhampur1.76

KCP3.01

Ponni3.74

Dalmia1.67

Here, Above table of the Average of the Z score through analysis that Ponni Sugar Industry and KCP Sugar industry have more than the 2.99 Score so that it companies Financial Performance is good.

Bajaj Sugar industry has less than 1.21 Z score so that it may lead to bankruptcy.

RATIO ANALYSISEPS

Year20102011201220132014Average

EID23.774.587.9118.871.5111.328

Renuka4.536.121.250.77-6.941.146

Balrampur8.826.420.276.630.154.458

Bajaj-18.250.18-4.49-6.42-0.76-5.948

Triveni6.583.520.51-2.59-5.920.42

Andhra24.6313.3634.4627.6120.1224.036

Dhampur10.61.535.543.9-13.221.67

KCP2.091.042.333.422.442.264

Ponni42.8621.6420.6922.23-5.5620.372

Dalmia16.920.380.112.270.374.01

Ha There is significant differences between mean EPS of the selected sugar manufacturing units in India.H0 There is no significant differences between mean EPS of the selected sugar manufacturing units in India. = 0.05EPS:-

ANOVA

Source of VariationSSdfMSFP-valueF crit

Between Groups3976.6279441.84746.2767141.73E-052.124029

Within Groups2815.7884070.3947

Total6792.41549

INTERPRETATION

F critical Value 2.12 0.95The above table shows that critical value 2.124029 which is greater than the calculated value is 0.956762.Hence we accept the null hypothesis and conclude that there are no significant differences between mean PAT of the selected sugar manufacturing units in India.

ROE

Year20102011201220132014Average

EID18.826.9211.3224.622.0712.75

Renuka11.5523.174.722.89-34.891.488

Balrampur19.2812.750.5412.240.299.02

Bajaj381.750.39-50.42-28.13-2.8160.156

Triveni18.759.311.28-6.93-18.890.704

Andhra17.699.1319.7514.279.6714.102

Dhampur11.411.645.924.59-17.951.122

KCP13.916.71.6317.6811.7410.332

Ponni46.2719.3315.9414.79-3.8618.494

Dalmia10.340.710.24.010.653.182

Ha There is significant differences between mean ROE of the selected sugar manufacturing units in India.H0 There is no significant differences between mean ROE of the selected sugar manufacturing units in India. = 0.05

ROE:-ANOVA

Source of VariationSSdfMSFP-valueF crit

Between Groups13995.6291555.0690.4558550.8951042.124029

Within Groups136453403411.325

Total150448.649

INTERPRETATION

F critical Value 2.12> 0.45The above table shows that critical value 2.124029 which is greater than the calculated value is 0.455855. Hence we accept the null hypothesis and conclude that there are no significant differences between mean ROE of the selected sugar manufacturing units in India.

Current

Company20142013201220112010Avg.

EID PARRY0.950.940.941.543.081.49

SHREE RENUKA0.380.590.6412.10.94

BALRAMPUR CHINI1.080.991.11.062.261.35

BAJAJ HIND0.70.670.692.093.491.50

Triveni1.021.21.262.581.671.54

Andhra1.781.781.461.271.571.57

Dhampur0.820.870.90.851.410.97

KCP1.891.71.531.482.351.79

Ponni1.241.031.091.782.11.44

Dalmia1.261.121.331.442.481.52

Debt Equity Ratio

Company20142013201220112010Avg.

EID PARRY1.551.370.730.570.530.95

SHREE RENUKA2.921.462.240.971.051.72

BALRAMPUR CHINI1.251.331.631.550.831.31

BAJAJ HIND2.461.41.661.781.351.73

Triveni1.481.080.810.960.921.05

Andhra0.50.460.570.610.560.54

Dhampur3.273.092.041.761.472.32

KCP0.370.220.550.570.250.38

Ponni0.670.640.450.170.430.47

Dalmia1.781.741.631.522.151.76

CASH FLOWS STATEMENTS1) EID PARRY:

ParticularsMar2014Mar2013Mar2012Mar2011Mar2010

Profit Before Tax-3113,610.701,360.706742,474.60

Adjustment1,563.90-978.9-10.5-438.1-85.4

Depreciation973.11,078.70739.7737693.3

Interest Expenses1,961.601,366.80644.3481.7385.7

Profit/Loss on sale of Fixed Assets-237.1-18-34.4-34.4-15.2

Profit/Loss on sale of Investments000-221.4-79.9

Dividend Received-799.2-3,218.20-1,256.10-1,143.10-1,001.70

Interest Income-431.7-334.7-224.7-168.9-77.2

Diminution in the value / Write off of Investments090006.8

Provision & Written Off-49.9-41-15.8-66.20

Bad debts irrecoverable written off140.894.2135.23.50

Other Adjustments6.33.31.3-29.52.8

Changes In working Capital236.1-3,542.00-1,347.90-1,235.70205.9

Trade & Other receivables-470-45-1,357.70-55-240

Inventories-765.9-4,020.10-649.71.3-413.7

Loans & Advances1,025.00-532.2000

Trade & Other payables829.6710.8659.5-1,182.00859.6

Cash Flow after changes in Working Capital1,489.00-910.22.3-999.82,595.10

Tax Paid-31.7-17.8-72.1-84.2-343.5

Cash From Operating Activities1,457.30-928-69.8-1,084.002,251.60

Cash Flow from Investing Activities1,402.80-1,905.80-833.31,377.00-1,257.80

Purchase of Fixed Assets00-737.1-386.2-445.1

Sale of Fixed Assets2514059.240.822.9

Purchase of Investment-290.6-3,013.000-1.4-1,399.10

Sale of Investments0053,923.00167.5

Investment in Subsidiaries00-1,531.40-1,213.40-580.6

Dividend Income799.23,218.201,256.101,143.101,001.70

Interest Income509.1-202.5231.8178.864.4

Loans & advances given to subsidiaries / partnership firms etc.-789.4-637.5-522-2,552.60-89.5

Advances for capital expenditure-1,554.80-1,320.90000

Other Investment Activities2,478.309.9405.1244.90

Cash from Financing Activates-2,615.702,610.801,113.10-294.3-1,025.90

Increase / (Decrease) in Loan Funds4003,150.002,323.301,081.10-664

Proceeds from Long Term Borrowings3,422.102,759.201,000.001,087.701,363.50

Repayment of Long Term Borrowings-2,089.90-1,380.20-1,075.10-1,700.00-502.5

Proceeds from Issue of Equity Share Capital1.71936.63737.9

Equity Dividend Paid0-1,037.20-694.7-691.9-1,062.80

Interest Paid-1,712.60-1,398.70-542.9-422.2-370.8

Changes in working capital borrowings-2,637.00498.765.9314172.8

Net Cash Inflow / Outflow244.4-223210-1.3-32.1

Opening Cash & Cash Equivalents114.4311101102.3109

Cash & Cash Equivalent on Amalgamation / Take over / Merger33.126.4000

Closing Cash & Cash Equivalent391.9114.431110176.9

2 SHREE Renuka:ParticularsMar2014Mar 2013Mar2012Mar2011Mar2010

Profit Before Tax-6,208.03758.521,350.535,606.452,176.47

Adjustment7,837.475,347.316,088.57733.071,653.35

Depreciation1,656.361,592.021,457.07815.45624.64

Interest Expenses3,182.043,670.983,698.72824.59883.93

Profit/Loss on sale of Fixed Assets2.7-9.155.97-2.53-0.61

Profit/Loss on sale of Investments001.96-28.20

Dividend Received-346.03-8.86-6.97-55.780

Effect of Exchange Rate Change3,316.8477.12893.92-750.910

Net Prior Year Adjustments000-69.55-0.7

Taxes Paid0000155.08

Other Adjustments25.5625.237.90-8.99

Changes In working Capital-7,406.1516,781.94-13,541.558,123.32-5,649.98

Trade & Other receivables1,522.07-601.08-615.17-1,046.60-4,113.67

Inventories10,554.45-3,396.77-5,832.11-1,301.07-8,154.13

Trade & Other payables-19,482.6720,779.79-7,094.2710,470.996,617.82

Cash Flow after changes in Working Capital-5,776.7122,887.77-6,102.4514,462.84-1,820.16

Tax Paid126.33-60.42-655.63-1,397.15-305.42

Cash From Operating Activities-5,650.3822,827.35-6,758.0813,065.69-2,125.58

Cash Flow from Investing Activities-169.39-680.51-12,477.82-20,571.49-3,111.09

Purchase of Fixed Assets-529.97-779.49-8,760.01-5,365.92-3,585.26

Sale of Fixed Assets25.3286.9219.2845.319.39

Profit/Loss on sale of Investments00028.20

Purchase of Investment-12.77-0.1-3,746.84-15,334.850

Sale of Investments23.32.780445.79

Dividend Income346.038.866.9755.780

Other Investment Activities00008.99

Cash from Financing Activities5,363.00-21,332.8319,105.105,626.767,205.64

Proceeds from Long Term Borrowings4,447.161,328.1512,134.674,527.323,053.46

Repayment of Long Term Borrowings-6,101.06-4,609.49-5,744.96-855.46-1,200.53

Short Term Loans000485.231,113.67

Proceeds from Issue of Equity Share Capital0027.711,873.175,178.16

Equity Dividend Paid-334.09-0.41-1,334.13-316.9-55.19

Interest Paid-3,138.39-3,598.99-3,393.89-837.51-883.93

Changes in working capital borrowings13,980.90-14,390.2518,343.2100

Other Financial Activities-3,491.52-61.84-927.51750.910

Net Cash Inflow / Outflow-456.77814.01-130.8-1,879.041,968.97

Opening Cash & Cash Equivalents881.4967.48234.712,102.83133.86

Cash & Cash Equivalent on Amalgamation / Take over / Merger00010.920

C

gcsr bank part 2

Documents

project guide

acknowledgementthis

project work

student of mba

students of management

university academic

gandhinagar core faculty

kathiriya piyush