SAHAKARI KHAND UDYOG MANDAL LTD.

:: GUIDED BY ::

PROF.PIYUSH MARTHAK

: PREPARED BY:

ANITA MANEK

CHANDANI LALANI

KINJAL BUTANI

KOMAL VASANT

MANISHA KISHOR

MANSI KARAVADRA

RINKU MARVANIYA

SHITAL DHOLAKIYA

M.B.A. (SEM-1)

SUBMITTED TO:

Gujarat Technological University

ACADEMIC YEAR: 2011-2012

PREFACE

Each and every activity starts with some predetermined goal and to achieve that goal, management plays and significant role. Sincere last few decades’ industrial activates enable us to use national and international products .for this, only theoretical knowledge is not sufficient because management is over expanding and dynamic field.

Thus with a view to acquire practical knowledge, the students of MBA has to undergo industrial training for 15 days in an established unit. Here we have also to observe the day to day business practices and get all the information about the unit. There after report is prepared and submitted in the GTU.

During the academic year 2011-2012 we have taken the industrial training at Sahakari Khand Udhyog Mandal LTD.

Basically, we task training under financial department.

DECLARATION

We undersigned the students of MBA hereby declare that the project work presented in this report is own contribution. It has been carried out under the supervision of Prof. Piyush Marthak, T.N.Rao College Rajkot.

This work has not been previously submitted to any other university for any other examination.

We also promise not to allow any other person to copy from this report in any form.

ACKNOWLEDGEMENT

We are obliged to give our sincere thanks to all the personalities who spare their time for us on our project report.

First of all we are grateful to authorities of.Who allowed us for training in their prestigious unit and providing us with all the necessary information?

We also thank Prof. Piyush Marthak for guiding me in the project work. Last, but certainly not the least, we express our gratitude to our family& friend for their help and co-operation throughout our project work.

INDEX

1) Summary about study 2) Project at glance

Objectives of study Methodology of studyLimitation of study

3) General information 4) Introduction 5) Financial information 6) SWOT analysis7) Suggestion8) Finding 9) Conclusion10) Bibliography

SUMMARY ABOUT STUDY

The project report is a comprehensive study on “SAHAKARI KHAND UDYOG MANADAL LIMITED” we were appearing of 21 days and after to make it.

The project report has been emphasis information about various departments like general information, personnel management, marketing management, financial management.

“SAHAKARI KHAND UDYOG MANADAL LIMITED” story is all grit, determination and accomplishment “SAHAKARI KHAND UDYOG MANADAL LIMITED” success story started in 1956 with Gandevi Dist Navsari via Bilimora.

Today the group activities include sugar theses product innovation and qualities have found an ever ready domestic and export market. This group is a market leader in sugar product.

After at all we keep out one thing it is monopolistic market leader in future almost that have catch them first position according to my thoughts.

PROJECT

AT

GLANCE

OBJECTIVE OF STUDY

The main objectives of the project report are as follows:

1 To get practical knowledge.

2 The student becomes aware about an individual environment.

3 The student can get practical knowledge.

4 To get an overall idea about the company.

5 To be aware of the practical aspect of the company.

6 To know about the financial management of the company.

7 Practical knowledge may be even on the job where we are having an opportunity to apply and develop these principles by practical.

8 The student can become aware about and industrial environment problem opportunities and also gives them chance to show their skills.

METHODOLOGY OF STUDY

The information used for the preparation this report has been collected through:

Personal interview.

Discussion with various department needs.

Discussion with chief accountant Mr Jitendra N Nayak and managing director of the industry Mr Ganesh D Patil.

Theoretical material available within the company.

After analysing information obtain from the above mentioned sources, I had presented this report.

LIMITATION OF STUDY

The limitations which are projected on preparing the project report are as follows:

Due to busy schedule of various department manager and executives, they were unable to giving information much more in detail.

To maintain secrecy, all the information was provided by the finance manager.

The study was limited for short duration so, it was difficult to collect all information about the company.

GENERAL

INFORMATION

GENERAL INFORMATION

Name of Organization :-“SAHAKARI KHAND UDYOG MANADAL LTD”

Address :-“SAHAKARI KHAND UDYOG MANADAL LTD”GANDEVI VIA BILIMORA DIST- NAVSARI GUJRAT STATE PIN CODE – 396360

Telephone No :- (02634) 262344 (02634) 262346

(02634) 262348

Fax No :- (02634) 262384

E-mail :- Gandevi_sugar@sanchar.net.in

Telegram : - “KHAND UDYOG”

Regd. No of Factory : - G-275of 1956

Establishment Year : - 1956

Area Covered : - 15.5 ACRE

Form of Organization : - Co-Operative

Labour Availability : - Local

Major Market : - All over India, abroad

Size : - Large Scale industry

Main Product : - Sugar

Bankers :-State bank of India,Bank of Baroda (gandevi), Dena bank, HDFC bank

Investment : - 38, 81,508

No. of Staff : - 1044

Weekly Off : - Sunday

Sales Turnover : - Approx. 300 to 400 CRORE

No of Shift : - 3

Profit of Last Year : - 2, 17,815

Name of Promoter : - Jayantilal B. PatelGanesh D. Patil

INTRODUCTION OF COMPANY

A group of enterprising businessment with keen interest and year of experience in manufacturing sugar industry came together and formed a industry at Gandevi district – navsari in the state of Gujarat, India.

“SAHAKARI KHAND UDYOG MANADAL LIMITED” is one of the oldest industries in India engaged in the manufacture of sugar.

“SAHAKARI KHAND UDYOG MANADAL LIMITED” story is all about grit, determination and accomplished. It goes on prove that Co-operative and dedication pays soon they embarked on their first industrial venture with their modern project.

Today the group activities include sugar these products by virtue of product innovation and quality have found an ever ready domestic and export market.

FINANCIAL

INFORMATION

FINANCIAL INFORMATION

Introduction:-

Finance is the lifeblood of business. No company or firm can survive long without sufficient finance. In the money oriented economy of today finance is one of the functions of economic activity of mankind. Finance is required to bring the business into existed to keep it alive and to see it growing.

“Financial management is concerned with the efficient use of an important economic resource namely capital funds”

Head of the department

Finance Manager

Accounting Operation Special Auditor

Production DepartmentChief Accountant

ORGANIZATION CHART OF FINANACE DEPARTMENT

Staff

H.R. Department

Marketing Department

RATIO

ANALYSIS

INDEX

1) Introduction2) Accounting Ratio3) Interpretation Ratio4) Method and Purchase of analysis5) Classification of accounting Ratioal

a) Traditional classificationi) Revenue statement ratioii) Balance sheet ratio iii) Composite ratio

b) Functional classificationi) Liquidity ratioii) Profitability ratioiii) Leverage ratioiv) Activity ratio

6) Calculation of different Ratio7) Advantages of ratio analysis8) Limitation of ratio analysis

INTRODUCTION

INTRODUCTION

The financial statements as prepared and presented annually are of little use for guidance of prospective investors, creditors and even management. If relationship between various related items in these financial statement are established, they can provide useful clues to gauge accurfully the financial health and ability of business to make profit this relation between two relate items of financial statement is known as ratio.

An investors is interested in information regarding the exact financial position of the business its earning capacity, the present the position with regarded to profitability and the future possibility. He has only the published accounts of the company before him which would enable him to take any decision with respect to investing his money.

The published accounts contain profit and loss A/c, balance sheet, directors’ report, auditors report could be ascertained from profit and loss account. An idea about the financial position can be had from the balance sheet.

The ratio analysis is most important to know about the company financial position.

ACCOUNTING RATIO

A ratio is customarily expired in three different ways. It may be expired as a proportion between two figures.

For example, if the current assets are twice the currents liabilities it can be said that the current ratio 2:1.

Second methods is to express it in the form of percentage

E.g. the rate of return on capital employee is 30%

Third method is to express it as rates.

E.g. stock turnover is 6 stocks turns over 6 times a year.

The use of ratio has become increasing popular during last few years. Only originally the bankers used the current ratio to judge the capacity of the borrowing business enterprises to repay the loan and make regular interest payment today it has assumed such an important that anybody connected with the business turns ratio for measuring the financial strength and earning capacity of the business.

A supplier of funds in the form of share capital would like to analyses the accounts to ascertain its earning capacity and future prospects. A bankers or other creditor will measure the repaying capacity and financial strength on the basis of accounts ratio.

INTERPRETATION THROUGH RATIO

Only calculating ratio is of no use unless it is interpreted so as to be useful management in making policy decision the following method are used for this purpose.

Comparison with ideal ratioComparison with past ratioHelp a some related ratioComparison with ratio of other firms

1) Comparison with ideal ratio:-It should be compared with some generally accepted ideals

ratio e.g. the current ratio of a firm is found to be 1.5:1. this ratio does not guide the management as regarded its liquid position there are some ideals ratio in every types of business with which the individual firm ratio are compared so that useful conclusions can be drawn2) Comparison with past ratio:-

If the present ratio of a company are compared with its past ratio. This will help the management in lacking corrective measure. If necessary the firm can also arrive its average ratio for its last three to five year can compare it with industry average.

3) Help of some related ratio:-The analysis and interpretations of some ratio may be made

more meaningful if some related are also considered ti may happen that the current ratio may show a good position because of large stock continued in the currents assets but it suggestion that the sale is very slow and the liquid position is not as comfortable as it appears.

4) Comparison with ratio of other firm:-Comparison of firm’s ratio with those of other firms in the

same industry is useful and indicated strength or weakness of the firm’s position & preference e.g. if the gross ratio of textile industry as a whole is 20% the ratio of a persecuted firm is 15% reveals an understanding position.

METHOD & PURPOSES OF ANALYSIS

Accounting ratio is generally classified as follows:

Traditional classification Functional classification

Traditional classification:

The ratios are grouped into these categories on the basis of the statement from which the figures are taken for company the ratio. The ratios according to this classification are:

Revenue statement ratio:

These are the ratio compared on the basis of items taken from revenue statement i.e. profit & loss account e.g. net profit ratio is compared by dividing net profit by sales.

Balance sheet ratio:

When two items or group of items appearing in the balance sheet are compared the ratio so obtained is a balance sheet ratio.Composite ratio:

A ratio sawing the relationship between one items taken from balance sheet and another taken from profit and loss A/c is a composite ratio or a combined ratio known as balance sheet & revenue statement ratio

Functional classification:

There are four categories of ratio.

Liquidity ratio:

These ratios indicate the position of liquidity. They are computed to ascertain which the company is capable of meeting its short term obligation from its short term resource.

For example, current ratio shown the capacity of a firm to meet its current liabilities as a when they material.

e.g. 1) Current ratio 2) Liquidity ratio 3) Acid test ratio

1) Profitability ratio:

A number of ratios are designed to indicate the profitability of the business and are grouped into the category of profitability ratio for example: - return on capital employee is an example of profitability ratio. E.g. (1) gross profit ratio (2) net profit ratio (3) expense ratio (4) operating ratio (5) return on capital employee ratio (6) return on shareholder’s funds (7) debts service average ratio.

2) Average ratio:-

The composition of capital of business the preparations of owner capital & capital provide by outside are reflected by leverage ratio

For example, gearing ratio showing the relationship between the preference capital & ordinary capital is a leverage ratio e.g. (1) proprietary ratio (2) debt-equity ratio (3) gearing ratio (4) fixed capital – fixed assets ratio

3) Activity or efficiency ratio:-

These are the ratio showing the effectiveness with which the resources of the business are employed. It significant the efficiency of the management for example stock turnover is an activity ratio showing the number of times the average stock is turned over during the year. E.g. debtors’ ratio or turnover creditor ratio or turnover, total assets turnover, fixed assets, turnover etc.

CLASSIFIATION OF ACCOUNTING RATIO

In order to easily understand the ratio the traditional classification is more useful. Hence, the ratio has been discussed according to this classification:

{1} Revenue statement ratio:-The ratio computed showing relationship between the two items of profit

and loss A/c are enumerated bellows:

For 2010

(1) Gross profit ratio:-

G.P = 32, 65, 63,556

SALES = 2,95,30,80,754

Gross profit ratio = G.P X 100 Sales

= 326563556

X 100 2953082754

= 11.05 %

For 2009

Gross Profit = 286099089Sales = 2391577343

Gross Profit = G.P Sales X 100

= 286099089X 100

2391577343

= 11.96 %

(2) Net Profit Ratio

For 2010

Net profit = 217815Sales = 2953080754

Net Profit = N.P Sales X 100

= 2178152953080754 X 100

= 0.0074 %For 2009

Net Profit = 223428Sales = 2391577943

Net Profit = N.P X 100 Sales

223428 = 2391577943 X 100

= 0.0093 %

(3) Stock Turnover Ratio

For 2010

Stock turnover ratio =

Cost of goods sold = Sales – G.P

= 2391577343 – 286099089

= 2626517198Average Stock = 466003982

Stock Turn Over Ratio = Cost of SalesAverage Stock

= 26265171981466003982

= 2 timesFor 2009

Cost of goods sold = 2105478254Average stock = 1206527128

= 21054782541206527128

= 1.745

= 2 times

Balance Sheet Ratio

For 2010

(1) Current Ratio = Current Assets Current Liability

Current Assets = 2728816120Current Liability= 162048222

= 2728816120162048222

= 16.84: 1For 2009

Current Assets = 1948643765Current Liability= 149630117

= 1948643765149630117

= 13.02: 1

For 2010

(2) Liquid Ratio = Liquid Assets Liquid Liability

= 1139079242162048222

= 7.03: 1

For 2009

Liquid Ratio= 603586944149630117

= 4.03: 1

Composite Ratio

(1) Debtors Ratio

For 2010Debtors = 3258286Credit Sales = 2953080754

Debtors Ratio = Debtors + Bills receivable X 365 Credit Sales

= 3258286 X 365 2953080754

= 1 dayFor 2009

Debtors = 4548436Credit Sales = 2391577343

Debtors Ratio = 4548436 X 365 2391577343

= 1 day

(2) Creditors Ratio

For 2010

Creditors Ratio = 15809685Credit Purchase = 2847814862

Creditors Ratio = Creditors + Bills PayableCredit Purchase X 365

= 158096852847814862 X 365

= 2 days

For 2009

Creditors = 12931457Credit Purchase = 2267053797

Creditors Ratio = 12931457 X 365 2267053797

= 2 days

(3) Return on Capital Employed

“2009” “2010”

P.B.I.T 223428 217815

+Interest 64599990 61007760

64823418 61225575

Reserve 457657660 474419468

2010 = P.B.I.T X 100Capital Employed

= 61225575 X 100474419468

= 12.90 %

2009 = 64823418 X 100457657660

= 14.16 %

Revenue Statement Ratio

Operating Ratio

Cost of sales + operating expense X 100Sales

“2009” “2010”

C.O.G.S 2105478254 2626517198

Operating Exp. 100593040 104960186220671294 2731477384

Sales 2391577343 2953080754

2010= 2731477384

2953080754 X 100

= 92.49 %

2009

= 2206071294 X 1002391577343

= 92.24 %

INTERPRETATIONPARTICULA

R2009 2010 Ideal ratio Interpretation

G.P ratio 11.95% 11.05% 25% There are the GP ratio is lower to cover its operating expanses

N.P ratio 0.0074% 0.0093% 18% There are the higher the ratio better will be profitability, the ratio is very much low.

Stock turnover ratio

2 times 2times 7-8 days The higher the turn over more profitable to the business, the ratio is decrease from past. It means that either inventory is growing or sales are dropping.

Current ratio 13:1 16:1 2:1 Ratio shows that current assets should be twice then current liability shows the comfortable working capital.

Liquid ratio 4:1 7:1 1:1 More quick assets more the liquidity Ex.enough cash, bank etc. are in the company.

Debtors ratio 1day 1day 30-40days The company is not giving goods on credit if company will provide goods on credit, company’s sales will be increase

Creditor ratio 2days 2days 50days It good for the companyReturn on

capital employee

14.16% 12.90% 15% The ratio of 2009 is quite good then 2010.The higher the ratio better will be profitability.

Operating ratio 92.49% 92.24% 60-65% There are the company’s profitability is not good. The lower the ratio better will be profitability.

SOWT

ANALYSIS

SWOT ANALYSIS

SWOT analysis is very important for marketing.

S: StrengthsW: WeaknessO: OpportunitiesT: Threats

1. Strengths of the “SAHAKARI KHAND UDYOG MANADAL LIMITED” is:

Better management of the firm.Good quality product.Good prestige of the firm.Best location.

2. Weakness of the “SAHAKARI KHAND UDYOG MANADAL LIMITED” is:

Many time productions are become low.Raw-material is not available.

3. Opportunisms to “SAHAKARI KHAND UDYOG MANADAL LIMITED” are:

Using modern technology produce more quantity

4. Threats of the “SAHAKARI KHAND UDYOG MANADAL LIMITED” are :

Tough of market competition.In season shortage of the workers.

SUGGESTION

SUGGESTION

We feel very happy to visit the industry name “SAHAKARI KHAND UDYOG MANADAL LIMITED” that is development with its hard work and has reached at a great height of success in few years and go up and up. Now a day “SAHAKARI KHAND UDYOG MANADAL LIMITED” whose product are spreading all India.

We would like to give some suggestion as per our opinion and they are as under.

The company should increase in the workers strength. The company should advertise for its product. It should provide more facilities to its workers. The company should maintain good communication from top to bottom. The company should give discount to their regularly customers. Company should share its strategies among the employees. Company should also to increase the exports to the other countries to

increase its market share in the international market.

CONCLUSION

CONCLUSION

We are very lucky so that we had chance to visit this industry ‘sahakari khand udyog manadal limited” is very executives it is very excellent industry it very nice for its products.

From the study of “sahakari khand udyog manadal limited”

We became to give conclusion that it’s very bright future of the firm. It will progress more and more because of hard work of workers and directors the management also very good. In coming years it will have its goals.

During this project we also learnt the different between theoretical & practical knowledge there is vast different between two in life theoretical knowledge plays an important role in taking practical decision.

The industry relation of these units employee, customers and other industries are very good so they can get more and more progress.

Our best compliment for this company for its progress and prosperity. we will all the best for their progress.

BIBLOGRAPHY

BIBLOGRAPHY

In preparing this one project report I have used mainly following books and some material which are as below:

Books:1) Annual report 2009-2010

3) Financial management

ii. Khan & Jain

4) Journal of financial research

Material provide by the company like price list grocers and other material.We would like to thanks to help us in project report prof. Piyush Marthak.