Sugar Factory Project

Shree.D.K.S.S.
K,CHIKODI by-Abhijeet A Gidagalle (9035051108)
JH
INDUSTRY PROFILE
India has been known as the original home of sugar and sugarcane. Indian mythology supports the above fact as it contains legends showing the origin of sugarcane. India is the second largest producer of sugarcane next to Brazil. Presently, about 4 million hectares of land is under sugarcane with an average yield of 70 tones per hectare. India is the largest single producer of sugar including traditional cane sugar sweeteners, khandsari, and Gur equivalent to 26 million tones. India, the worlds second-largest sugar producer and biggest consumer, had produced 1.84 million tonnes of the sweetener in the same period last year. Traditional sweeteners Gur & Khandsari are consumed mostly by the rural population in India. In the early 1930s nearly 2/3 rd of sugarcane production was utilized for production of alternate sweeteners. Gur & khandsari. With better standard of living and higher incomes, the sweetener demand has shifted to white sugar. Currently, about 1/3rd sugarcane production is utilized by the Gur & khandsari sectors. Being in the small scale sector, these two sectors are completely free from controls and taxes which are applicable to the sugar sector. The advent of modern sugar processing industry in India began in 1930 with grant of tariff protection to the Indian sugar industry. The number of sugar mills increased from 30 in the year 1930 -31 to 135 in the year 1935-36 and the production during the same period increased from 1.20 lakhs tones to 9.34 lakhs tones under the dynamic leadership of the private sector. The era of planning for industrial development began in 1950-51 and Government lay down; targets of sugar production and consumption, licensed and installed capacity, sugarcane production during each of the Five Year Plan periods. Under the policy of licensing, Government initially permitted small sized new units of 1250 capacity only and later on increased the minimum economic size of plant to 2500 TCD. Similarly capacity expansions initially allowed up to 3500 TCD only were subsequently raised to 1 TCD and finally these expansion limits were withdrawn in 1990. REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE Page 1
Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)
No of sugar factories in India Sector (1) (2) (3) Co-operative Private Public Total No. of factories 321 272 62 655
(source -annual report 2010-11 (Ministry of Consumer Affairs,Food and Public Distribution)) Futures trading in sugar Sugar was approved for futures trading in May, 2001. At present, three national exchanges viz. National Commodity and Derivative Exchange Ltd. (NCDEX), Mumbai, Multi Commodity Exchange Ltd., (MCX), Mumbai, National Multi Commodity Exchange (NMCE), Ahmedabad and E sugar India Ltd., Mumbai & E-Commodities Ltd., Delhi have been given recognition for future trading in sugar. Except, E-Commodities Ltd., Delhi, trading in sugar is taking place in all other exchanges. Bulk of the futures trading in sugar takes place at NCDEX.
Production of Sugar (in lakh tone) Sugar Season Production Sugar 2006-2007 2007-2008 2008-2009 2009-2010 282.00 263.00 146.70 188.00 of
(source -annual report 2010-11 (Ministry of Consumer Affairs,Food and Public Distribution))
REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE
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Production of Sugar
300 250 200 150 100 50 0 2006-2007 2007-2008 2008-2009 2009-2010
Production of Sugar
Sugarcane ,sugar, molasses production and recovery of sugar

Sugarcane Year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 (million tonnes) 298.422 281.575 233.862 281.172 281.173 355.52 340.557 285.029 277.75 Sugar Molasses Recovery% 10.27 10.22 10.22 10.21 10.21 10.16 10.55 10.03 10.19
(million tonnes) 000 tonnes 18.528 20.145 13.546 19.267 19.267 28.367 26.357 14.539 18.912 8073 8879 5905 8549 8549 13111 11313 6546 8400
(Source-www.caneinfo.nic.in/) Page 3
In global sugar economy, the Indian sugar industry has achieved a number of milestones. Second Largest Area under Cane/Cane Production. Amongst the cost-effective industries with its field cost (Sugar cane) being the second lowest, despite small land-holdings and low productivity Fourth efficient processor of sugar despite low capacity of its sugar plants as compared to very large-size plants in other parts of the world.
POLICY The present policy of partial decontrol 10% of production by each unit is supplied for public distribution system i.e. as levy sugar at Govt. notified prices admittedly below 20% of the actual cost of production. The levy sugar is I to the public irrespective of their economic status. The balance 90% is sold in the free market against monthly\issued by the Government. This policy has been continuing since 1967-68 except for brief periods of de-control me during the years of surplus production and accumulated sugar stocks. Government announces the Statutory Minimum Price (SMP) for sugarcane every year based on recommendations of the Commission for Agricultural Costs and Prices (CACP).
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COMPANY PROFILE
SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT, CHIKODI is a co-operative society registered under Karnataka co-operative societys Act in 1969. The industrial license number of the factory is L-25/N-250/-LC dated 16/10/1970.
Shree D.K.S.S.K.N. Chikodi is a co-operative unit. It is a situated near Nandi village, at a distance of about 10Km from Chikodi town .and the factory at present has an attractive campus with magnificent buildings over it.
Agriculture was continues to; be an extremely important sector in our country and cooperative system, as one of its main pillars providing vital support services, is crucial for the transformation of agriculture. It is how inspired our founder Late Sri. Chidanand B. Kore, an agriculturist and a co-operator, to establish this factory during 1972-73 with the financial support from cane growers of this area and the State Government. With an initial crushing capacity 1250 TCD and as a stand alone sugar industry, lour factory had faced a lot of problems all these years in coming out as a viable unit. Though this factory had emerged in this area with a meager beginning, it had not only provided a source of income for forming community but also created a sustainable employment opportunity in this rural area. After a lot of dispute on location of plant, near Nanadi village, the construction work started in year 1971 and comp elected in the year 1974. The factory was inaugurated by Vicepresident Shri B.D Jatti on 6th November 1974. The regular production has been started from December 1974.
The factory started on 5/3/1969 with initial Crushing capacity to the extent of 1250 TCD per day began during the year 1974 with total expenditure of Rs.337 lakhs.
The area of operation covered 111 villages of which 102 villages are from Chikodi talukas, 5 villages are from Chikodi taluks, 5 villages are from Raibag taluka and 4 villages are from Athani taluka. REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE Page 5
At present total sugar cane supplied to this sugar industry is from 20,000 acres with average yield per acre of 25 MT.
The entire plant and Machinery has been supplied by m/s National Heavy Engineering Co-operative Ltd. Pune, A co-operative institution (for Rs. 1990 lakh and 3500 TCD plant) has also been installed to meet the present requirement of the Crushing capacity. The DKSSK, at present is equipped with modern machines and skilled personals.
The crushing capacity was enhanced from 1250 TDC to 2000 in 1984-85 and from 2000 TCD to 3000 IN 1993-94. The factory house hold expenses of factory from 3500 to 5500 TCD. Every expansion was not easy and had created a financial set backs due to the lack of professionalism both in technical and financial managements. Thus over the period of two and half decades, the factory had grown only in sizes but not adopted the range of different biproduct activities and had suffered due to a weak governance on efficiency, effectiveness, adaptability and internal and external accountability in the management. These things have brought the factory almost to the brink of sickness. Besides resulting a huge negative net worth and ever-high accumulated losses. However this cooperative and rural based industry must succeed if the poor farmers and the rural unemployed youths have to be prosperous.
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SHREE D.K.S.S.K.N.-CHIKODI, Taluka chikodi, dist.- Belgaum Name of the Organization Location : : Shree D.K.S.S.K.N.-Chikodi. Nanadi Village. Tal.-Chikodi, Dist.- Belgaum Karnataka. Regd. Office : Chikodi. Ph. No. 08338-276931 To 35 Fax: 08338 276105 E-Mail dksugar@sancharnet.com Construction : Building Layout, Garden & Light Facilities. Capacity : 5500 tones crashing per day.(Tcd) 20.7 M. W. Power Generation. 30 K.L.P.D. Rectified Spirit. Turnover Work Shifts : : 500 to 600 Crores / Anum. 3 Shifts / 8 hours per shift (no Holiday)
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Nature of Business
Sugar sector is one of the large scale industries in manufacturing sector. Now a day the competition in sugar sector is very high. SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT, CHIKODI is a co-operative society registered under Karnataka co-operative societys Act in 1969. The object of business is to encourage proper devolvement of agricultural industrial amongst members on co-operative lives by promotions of co-operative and joint forming methods so as to secure best merits of modern large scale agriculture production to the owners of the lands. The nature of business is to encourage self help, thrift and co-operate amongst member
Vision, mission and quality policy
Vision Total customer satisfaction Mission Encourage agro-based co-operative industry. To develop co-operative movement in rural sector. To encourage the farmers to grow sugar cane for production of sugar and its byproducts.
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AIMS & OBJECTIVE OF THE COMPANY
The object of the society is to encourage proper development of Agricultural Industrial amongst members on Co-operative lives by promotions of principal and methods of Co-operative and joint forming methods so as to secure best merits of modern large scale agriculture production to the owners of lands and for this purpose.
a) To encourage self-help, thrift and co-operate amongst members. b) To acquire lands either by way of purchase or otherwise for cultivation of sugar cane and other cost and for erection of building. Godawns staff quarters etc and for installations of machineries. c) To manufacture sugar jogger and their by products out of sugar-cane grown and supplied by members of the society and other and to sell the same to the best advantage. d) To under take such other activities as are identical and conductive to the development of the society etc. e) To acquire and install machinery for the utilization of the product and buy raw material and sell finished product is the course of utilizing and marketing the by products.
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OWNERSHIP PATTERN
The authorized share capital of the Society shall be Rs.172,000,000 divided in to total 25,676 shares. i) Rs.13,19,27,265 /-dividend in to 24,490 shares of the face value of Rs.4,000/-each reserved for the grower members called as A Class. ii) Rs.8,20,750 /-dividend in to 225 shares of the face value of Rs.4,000/-each reserved for Co-operative Institutions. Called as B Class. iii) Redeemable preference share of Rs.4,000/-each to be issued to Government of Karnataka/Maharastra called as C Class. iv) Rs.38,48,000/- dividend in to 984 shares of face value of Rs.4,000/-each reserved for non grower members called as D Class.
INFRASTRUCTURAL FACILITIES
Nearer to raw materials. Good transportation facilities. Nearer to rivers place. (Krishna River) Good networking. Proper accommodation for its employees.
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ACHIVEMENTS AND AWARDS
ACHIEVEMENTS
STAI, SISSTA & DSTA in their recent 8th annual convention at Hyderabad held on 1308-2005 have honored with the most prestigious award as the THE BEST EFFICIENCY & PERFORMANCE SUGAR FACTORY in the country for the year 2004-05. The award was given by Honble Union Minister for agricultural, food & Civil Supplies, in presence of Honble Chief Minister of Andhra Pradesh.
The Karnataka State Co-op Federation Ltd. had adjudged as The Best Co-operative
Sugar Factory in the State and AWARD had been given to us through Honble Chief Minister of Karnataka, on 14/11/2004.
Energy Department of Government of Karnataka and KREDL have awarded us he

excellence Award through Deputy Chief Minister of Karnataka for having developed efficiently 20.7 MW Co-gen Power Project on the occasion of RAJIV GANDHI AKSAYA URJA DIWAS ON 20/8/2004 .
The companies have the Honour of achieving the Highest Sugar Recovery @ 11.80% in
Southern part of India for the year 2001-02. And 11.90% for 2002-03 also.
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AWARDS The Karnataka State Cooperative Sugar Factories Federation Ltd., Bangalore had honored the company with the following awards for the:-
1. Highest sugar recovery in South India during 2001-02. 2. The Best Administration Award to the Managing Director with a cash prize of Rs .10,000/- and a certificate. 3. The Best chief Chemist Award with Rs.5,000/- Cash prize and a Certificate. 4. Best chief engineer with award worth of Rs.5,000/- cash prize and certificate.
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PRODUCT PROFILE Sugar is regular product that we daily use but we know only one type of the sugar but there are many types of the sugar are available in the market. Sugarcane in India is used to make either sugar, khandsari or gur. However, sugar products produced worldwide are divided into four basic categories : granulated, brown, liquid sugar and invert sugar. 1. Granulated Sugar There are many different types of granulated sugar. Most of these are used only by food processors and professional bakers and are not available in the supermarket. The types of granulated sugars differ in crystal size. Each crystal size provides unique functional characteristics that make the sugar appropriate for the food processor's special need. 2. Brown Sugars This sugar is a raw sugar which has been partially processed, removing some of the surface molasses. It is a blond color with a mild brown sugar flavor and is often used in tea 3. Liquid Sugars Liquid sugars were developed before today's methods of sugar processing made transport and handling granulated sugars practical. There are several types of liquid sugar. Liquid sucrose (sugar) is essentially liquid granulated sugar and can be used in products wherever dissolved granulated sugar might be used. Amber liquid sucrose (sugar) is darker in color and can be used where the cane sugar flavor is desirable and the non-sugars are not a problem in the product.
4. Invert Sugar Inversion or chemical breakdown of sucrose results in invert sugar, an equal mixture of glucose and fructose. Available commercially only in liquid form, invert sugar is sweeter than granulated sugar. One form of liquid invert was specially developed for the carbonated beverage REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE Page 14
industry and can be used only in liquid products. This liquid sugar is actually part invert sugar combined with part dissolved granulated sugar. Another type, named total invert sugar syrup, is commercially processed and is almost completely invert sugar. It is used mainly in food products to retard crystallization of sugar and retain moisture.
PROCUREMENT
The factory obtains the sugarcane, which is required from more than 1000 farmers and by the company farms and others raw materials which are required for the operation is taken from the vendor there vendors will be evaluated on the basis of price and quality and then the required raw materials will be taken for the efficient vendors. The transport of sugar cane from farmers to the factory will be engaged throng Lorries which will be taken through bidding at the time of harvesting and also farmers themselves supply by their own bullock carts or by tractors.
CANE WEIGHMENT
There are 12 outlaying weigh bridges situated round about Chikodi for delivering the sugarcane from the farmers. Double check has been provided over the weighment of cane transported from out stations.
OPERATIONS The sugarcane, which is carried by Lorries or other, will be directly fed to the machine where the initial process starts. At the starting point these are knives which cuts sugar cane bunches into individual sugar care.
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After this in the next step there are sharp cutter which cuts the sugarcane bunches into very small pieces. Then it will go to trade marbs (a series of rollers used for crushing purpose) for crushing. Then the juice produced will go for further processing and the Bagasse will be lift out their itself. Then they add flocculent [used for mud setting] milk sanitation etc and then after it will go through pans and Masscuite for this Masscuite they will add sodium Hydro Sulphite (to bleach the masscuite) and it will be separated out and the molasses will be send to distillery and they white sugar will be bagged.
BYPRODUCTS OF SUGAR CANE
The chief by products of sugar manufacturing are -
1) Bagasse Bagasse is the by product of sugar left behind after crushing of sugar cane. It is used as a fuel in the sugar factory boiler. Excess Bagasse finds use as raw materials in paper manufacturing industry.
2) Molasses Molasses is a by product of Sugar refining chiefly used for alcohol production. The entire molasses output is routed to the distillers unit which is maintained by the organization. 3) Pressmud Pressmud is the by product generated by cane juice filtration during sugar manufacture, currently Pressmud is used as a fertilizer in sugarcane cultivation. AREA OF OPERATION
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The area of operation of the society shall be confined to the following villages of chikodi, Athani, Raibag Talukas of Belgaum District and Jamakhandi Taluka of Bagalkot District of Karnataka State and villages of shirol, kagal Talukas of Kolhapur District Maharastra State only.
COMPETITORS INFORMATION
There are other co-operative and the private sugar factories in the surrounding area are the main competitors of the . SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE
KARKHANE NIYAMIT, CHIKODI

Among from that some are listed in the stock exchange they are 1. Shree Renuka Sugars 2. Ugar Sugar Works, Ugar
And other co-operative and private sugar industries are as
1. Hirankeshi sahakari sakkare karkhane niyamit ,Sankeswar 2. Halsidhanath sugar factory , Nipani 3. Shivashakti sugar ,Yadrav 4. Viswanath sugars , Belladbhagewadi. 5. Deshbakt Rantapanna kumbhar sakhar karkhana , Ichalkaranji (maharastra) 6. Datt sugars , Sirol (maharastra) 7. Shree guru data sugars (maharastra) 8. Jawahar sugars hupari (maharastra) 9. Venateswara power project Kolhapur (maharastra) 10. Sharad sugars, Narde (maharastra)
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PRODUCTION PROCESS
The main raw material in the production of sugar is. Sugar cane.
The raw materials has to go through following stages before it become finished product. The process in each stage is as under
STAGE: 1
SUGAR CANE SUPPLY.
The harvested and transported sugar cane received is weighed on the weigh Bridge. It is unloaded and kept on the feeder tables. It is fed to the cane carrier as per the requirement.
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STAGE: 2 MILLING OF CANE/ EXTRACTION OF JUICE.
This cane is passed through leveler and furzier by making the fine making the fine chips. It is crushed through series of mills. Imbibitions hot water is added prior to the last mill to extract more possible sugar. The bagasse from the last will is carried through bagasse conveyor and required quantity of bagasse is fed to the boilers and excess quality is sent for storage.
STAGE: 3
CLARIFICATION AND EVAPORATIONS.
The juice from all the mills is pumped to juice weighting scale. It is heated to about 7077o c in the juice heaters. It is taken to continuous juice sulphitor in which milk of lime and sulphur dioxide gas are adjusted to maintain ph 7.0. It is again heated in juice heaters to about 100 to 105oc and sent to continuous clarifier. Clear juice is taken to multiple effect evaporators to concentrate up to 60oc Brix.
The settled mud from the bottom of the clarifier is taken to mud mixer to mix with beguile and taken to continuous vaccum filer. The filtrate is transferred to raw juice receiving tank for treatment. The adhered mud on the screens is scraped and sent out as filter cake, which will be used for composting the manure.
STAGE: 4
CRYSTALLIZATION PURGING AND SUGAR MANUFACTURE
The concentrated syrup from evaporator is taken to syrup sulpthitor to adjust Ph 4.8 to 5.2. This is stored in the supply tanks and fed to A masscult boiling by taking B-seed as a footing. It is concentrated to 92o Brix and dropped to the crystallizes. This masscult is purged REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE Page 19
in the centrifugal machines. The adhered crystals are scraped to hopper and treated with hot air and cold air blower. It is sent to grader the size for gradation. This graded sugar is stared in SILOS. Weighed and bagged sugar bags are transferred to respective godowns for stocking.
STAGE: 5
FURTHER PROCESS
While purging A- massecuite the A-light molasses received is sent to supply tanks and fed to A- molasses is sent to supply tanks and fed to B- masscult boiling with b-grain as footing. This is purged in the centrifugals. This sugar is used as B- seed and excess is melted and fed to A- masscults. White purging low purity B- Heavy molasses obtained is used for boiling C- masscult with C- grain as footing.
This C- massecuite is taken for purging in C.F.W. Centrifugal machines. The final molasses is separated, weighed and sent to storage tanks. C.F.Magma is sent to melt supply tanks and fed to A massecuite boiling. C-light molasses obtained is tired in supply tanks and used for C- massecuite boiling and C- graining also.0
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MC KINSEY 7 S MODEL
The first three element are strategy, structure and system are considered as hardware of success, the meet four elements are style, staff, skills and shared values / super ordinate goals are the software of any company.
1. Structure
The general admission of the company is carried out by the following departments and these are downwards communication in the company. The information flows from the top level of management to the lower levels.
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2. System System refers to how the production system, distribution, information system and security system is maintained in its company.
a. Production System The process of production consisting of input of sugar come and output of the sugar
b. Distribution System The distribution system of the precuts produced is in the following way: Direct sales are made with in the state and outside the state. Indirect sales are made outside the country and the depot sales are also made. The producers are also sold directly to the consumers or sold to the wholesales.
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c. Information System Structure of information system
CHAIRMAN
MANAGING duDIRECTOR
SENIOR GENERAL MANAGER
HEAD OF THE DEPARTMENT
SECTION
d. Security System The DKSSK has strict security system. In the maintenance of accounts after the record have been closed, the records are kept in the room and closed the room is opened only with permission of higher authority. If the visitors went to inter they have to take prior permission with the authority and after entering they are not suppose to go any dept other then the department from whom they took the permission.
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3. Strategy The way in which a business aims to improve its position in relation to its competition is embodies in its strategy or the way of doing something in an organization. In DKSSK, introduce new technologies and products strategies importance in time with national objective to improve quality reliability of products there by attaining the international standards.
4. Skills Skills here refer to how the training will be given to the employees and employees. The training will be given in 2 months they are a) On the job This is one of the oldest method, under this method, the individual place is on the regular job and taught the skill necessary to perform that job on the job training has the advantage of giving first hand knowledge and experience under the actual working conditions. This training is given to employees. b) Off the job In this methods trainee is separated from the job situations and his attention is focused upon learning the material related to his future job performance. There is an opportunity for freedom of expression for the trainees.
5. Style The style which is portrayed to outside world is derived from the style and behaviors exhibits inside organization. The internal style of the organization effects new staff feels thinks and does their jobs. Therefore an organization is reflection of its structure.
a) Top down / Bottom up REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE Page 24
At the time of policy framing, the style flows from top to bottom. If the policy has to be framed then the policy has to be taken by upper level & it flows towards lower level. But when the opinion of the policy is to known, at that time the style flows from bottom to up. This is to know the attitudes of the employees about the policy which is framed by the upper level.
b) Authoritarian / Participative Only the upper level is having the authority to make the decisions in the factory. Regarding policy matter Board of management will take the decision in case of policy making. Financial matter
If the financial matter is within the amount of Rs 20,000/-, Managing Director will take the decision. And if financial matter is more than Rs 20,000/-, then the board will take the decision.
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6. Staff Good hard working citizen play essential role in the development of nation. The employees are responsible for the success or failure of company. The company has totally 696 workers are working in the company. They are divided as follows No. of Workers 1) Permanent worker 2) Seasonal workers 3) Consolidated worker 325 204 167
696
7. Shared values Shared values are refers to company policies. In Mysore Sugar Company limited the following policies are maintained. Quality policies Environment policies T.P.M. policies (Total productivity management)
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QUALITY POLICY
Quality leading to customer satisfaction shall be the top priority, this shall be achieved by complying to the requirements of the quality management system and continuously improve its effectiveness.
ENVIRONMENT POLICY
The DKSSK is committed to comply with the requirement of relevant environment regulation and standers by implementing environment management system and the continually improve its effectiveness.
TOTAL PRODUCTIVE MANAGEMENT The DKSSK is committed in maximizing limited is committed in maximizing overall plants effectiveness to make Mysore sugar company a world class company through total productive manufactured by
Promoting automates maintenance culture. Involving all employees and building culture. Minimizing the losses and reduced the cost.
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PROCEDURE FOLLOWED IN SALE OF SUGAR, MOLASSES, RECTIFIED SPIRIT AND ARRACK
BAGASSE,
SUGAR
Domestic Sale of Sugar The free sale released by Government of India is sold in the domestic market through tender system. Sugar tenders will be called periodically from the various sugar traders. The traders will be called advance about the grade and quantity being offered in tender over telephone. The sugar tender are some time will be conducted at Karnataka Sugar Institute, Belgaum and also at this factory site. The rates will be collected over telephone from the various parties along with grade and quantity of sugar required by them. The committee will take decision on allotment of sugar to the parties who have offered higher price. Karkhana has maintained Sugar Sale Tender register for recording the offers received and allotment made to the parties. The parties who have purchased sugar in the tender will be sold against 100% payment. The rate of domestic price of sugar in the state and the rate of neighboring sugar factories will be compared while selling the sugar in tenders.
Export of sugar When the international price of sugar is remunerative compared to domestic price of sugar, we do export some of the stock of sugar. The sugar export is mainly undertaken through the mercantile export or through EXIM Corporation New Delhi. The price for export sugar is negotiated taking into account, the prevailing international sugar price and the price being offered by various sugar factories for export of sugar. Once the rates are finalized, they will enter into agreement with the party. Then the party will obtain a release orders from the Chief Director REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE Page 28
of sugar, New Delhi and necessary excise bond from the concerned authority. After completing all the necessary formalities Sugar will be delivered to the party for export against full payment of the consignment. After the export shipmen are completed, necessary documents in proof of export of consignment will be collected from the parties. The same will be submitted to the excise department.
Molasses Bagasses For sale of Molasses and Bagasses we use to make a vide publicity in the various news papers in Karnataka and Maharashtra and also floating the enquiries to the prospective purchasers in order to get competitive offers and better price realization.
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SWOT ANALYSIS STRENGTH:
1. Good Administration 2. Healthy management labor relations 3. Largest distribution 4. Superior product quality 5. Skilled and efficient staff and labor force 6. Effective cost control 7. Maximum profitability due to various by products 8. Well structured distribution channel. 9. Improved infrastructure. 10. Automated highly sophisticated machines.
WEAKNESS:
1. High cost of production 2. No control on minimizing the losses in process 3. Company cant sell as much as sugar in the market at any specific time, as sugar release mechanism is controlled by government of India. 4. Most of the employees feel that light is not enough to there work at night shifts.
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OPPROTUNITIES:
1. Non-establishment of the programs to motivate and develop effective manpower. 2. Restricted market opportunities shirked a better price for finished products. 3. Borrowing of law cost funds. 4. Reducing the overhead expenditure. 5. To provide comfort and convince to employees for doing the work.
6. To facilitate the smooth running of the manufacturing process.
THREATS:
1. 2. 3. 4.
Due to uncertain rainfall procurement of raw material is being affected High competition in procurement of raw material. The main raw material sugarcane may not sufficiently be available in future. Change in various government policies.
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Part - b
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Design of the study:

Statement of the problem:
Financial analysis being an integral part of overall corporate management and it is one of the powerful tools of financial performance analysis. The analysis of financial statement of SRSL is done in order to know the companys financial position.
Objectives of the study:

The following are the main objectives of this study The main purpose of doing this project is to analysis the companys financial statement for the last 3 years To bring out the results of Financial Statement through analysis. To study about the d.k.s.s.k.niyamit. chikodi in general. To judge the financial position of the d.k.s.s.k.niyamit. Chikodi is satisfactory or not.
Scope of the study:

This study is exclusively conducted for d.k.s.s.k.niyamit. chikodi. It covers period 5 years financial statement analysis. The trends indicated may differ from year to year as the pattern of investments, borrowings etc change. This also covers study in general about the company and industry. But comparison of financial indicator which the industry of beyond the scope of this project.
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Methodology:
This project is an analytical research where in the researcher has to use the available facts as information and analyze these to make a critical evaluation of materials. This is also an applied research with an aim to find a solution for immediate problems facing industry or the firm. The methodologies followed in the analysis of the financial statement of Ratio analysis.
Sources of data collection
1.
Primary data: The data required for the project was collected through the discussion with finance manager and various executives in the company.
2.
Secondary data: The major source of data for this project was collected from annual reports, profit and loss account, manuals & some more information collected through the internet.
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Plan of analysis This study is conducted with the help of statistics figures & techniques like Graphs & charts and interpretation Comparative financial statement
Comparative financial statement is those statements which have been designed in a way so as to provide time perspective to the consideration of various elements of financial position embodied in such statements. In these statements, figures for two or more periods are placed side by side to facilitate comparison. But the income statement and balance sheet can be prepared in the form of comparative financial statement.
Ratio analysis: Ratio analysis is widely used tool of financial performance analysis. Ratio is the numerical or quantitative relationship between two items or variables. The ratio analysis is the systematic use of the ratios to interpret the hidden meanings lying in the financial statements. This reveals the strengths and weakness of the comp any along with its performance and current financial condition. The relationship in terms of ratios can be expressed as Percentage e.g. net profit as percentage of sales Fraction e.g. net profit is one-fourth of sales. Proportions of numbers e.g. relationship between net profit and sales. The ratio does not add to the existing information in the financial statements, but they do not reveal the relation in more meaningful way so as to enable us to draw conclusions from them. The rationale of ratio analysis lies in the fact that it makes related information
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comparable. A single figures it yield significant inferences. Further comparison single ratio should be done with the effect in revealing the true position of the company.
This comparison can be done in the following ways:Trend ratios. Inter-firm comparison. Comparison of items in the single years financial statements of the company. Comparison with standards or plans.
The significance of each ratio is described which is supported by the computation of the ratios for the four financial years. The same is computed with previous year for the further analysis of financial performance of DKSSKN.
Types of Ratios: The ratios can classified in the following broad main groups 1. Liquidity ratios. 2. Turnover or activity ratio. 3. Profitability ratios. 4. Expenses ratios. 5. Capital structure or leverage ratios
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1. Liquidity Ratios: Liquidity of the company means its ability to meet its current and short term obligations when they become due for payment. It reflects the short financial strengths and solvency of a company. The short term creditors of the company are interested in the short solvency or liquidity of the company. But, from the point of utilization of funds liquidity or excess of it may end with the funds lying idle. Hence, a proper balance between the two contradictory requirements i.e. liquidity and profitability is required for the efficient financial management. en The following are the some ratios, which give indication about the liquidity of the company. These ratios are as follows: Current ratio. Quick ratio.
Current Ratio:
The current ratio is the ratio of current assets to the current liabilities. It is calculated by dividing current assets by current liabilities
Current Ratio = Current Asset/Current Liabilities
The current assets of the company represent such assets, which can by converted into cash within sort time or period which is normally not exceeding one year and includes cash and bank balances, marketable securities, inventory of raw material, work in process and finished goods, net debtors, bills receivable. Similarly total of current liabilities includes sort term liabilities namely trade debtors, bills payable, outstanding expenses etc. REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE Page 37
The current ratio is measure of sort term solvency of the company. It indicates the rupee of current asset available for each rupee of current liability. The higher thecurrent ratio the larger the amount of rupees available per rupee of current liability and the greater the safety of the sort term creditors. This margin of safety to the creditors is essential due to the unevenness of the flow of the funds through current assets to the current liability account. Current liabilities can be settled by making the payment whereas current available to liquidate tem are subject to shrinkage for various reasons like obsolesces of inventory, bad debts, unexpected losses and son on. Thus the current ratio represents the short term liquidity buffer. A high ratio indicates better liquidity position. But, it should be noted that very high current ratio is the indicative of ineffective utilization of current assets due to high amount of fund locked in high level of current, assets (i.e. generally a high amount of inventory). The norm for this ratio is 2:1 which means even if 50% of the current assets are available for the liquidation; it can meet the current liabilities. The high ratio is also possible when the long term sources of funds are available for financing the part of the current assets. This avoids the embarrassing situations where the sort obligations can be met due to temporary liquidity crunch. This is due low reliance on sort-funds, a standard norm of the current ratio depends on the type of the industry as this govern the level of current assets requirements (e.g. public utility companies have low requirement of the current assets while the whole-sellers require high level of current assets. The limitation of the current ratio is that it gives only quantitative information rather than qualitative information. This is due to fact that it does not consider the composition of the current assets i.e. the partitions of the different current assets, since ability of the different current assets to liquidate is different. Inventory treated as the most illiquid and then comes the debtors and cash is the most liquid.
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QUICK RATIO: Quick ratio establishes a relationship between quick, or liquid, assets and current
liabilities. An asset is liquid if it can be converted into cash immediately or reasonably soon without a loss of value. Cash is the most liquid asset. Inventories are considered to be less liquid. Inventories normally require some time for realizing into cash; their value also has a tendency to fluctuate. The quick ratio is found out by dividing quick asset by current liabilities.
Quick ratio =
Current assetsInventories Current liabilities
2. Turnover or Activity Ratios : The Turnover Ratio or Activity ratios are concerned with measuring the efficiency in asset management . Hence some times these ratios are also called as efficiency or asset utilization ratios, these ratios reflect the management efficiency in utilization of the companys assets vis as vis its operations. The speed and rapidity with which the assets are utilized to generate sales show the efficiency with which assets are used. The greater the rate of turnover or equal. These ratios are the test of relationship between sales (or cost of goods sold ) and various assets of company. Depending on various types of assets there are various types of activities ratios.
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* Inventory or stock turnover ratio:-
It is computed by dividing the cost of goods sold by the average inventory.
Inventory Turnover Ratio= cost of goods sold / average inventory
The cost of the goods sold can also be computed as net sales less gross profit. The average inventory is computed as the simple average of the opening stock and closing stock of the inventory. This ratio indicates number of times inventory is replaced during the year. In case of seasonal industries, the average can be computed by taking simple average for opening stock of a month for a year, which will smoothen out fluctuating in the inventory. In some cases if the data is not easily available, then this ratio can be calculated by dividing the net sales by closing inventory.
In general, a high inventory turnover ratio is better, as it shows the efficient management of inventory. but, a very high inventory turnover ratio can be an indicative of under investment in a very low level of inventory. A very low level of inventory serious implications. It will adversely effect the production due to out of stock situation which in turn effect the ability of a company to meet customer demand. Conversely a very low inventory turnover ratio is also not good as this indicates excessive inventory or over investment. In inventory due top this the funds are blocked in excessive inventory, which may impose serious problem in working capital management.
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The inventory turnover ratio can also be expressed in terms of days or months of cost of goods sold.
Inventory Holding period = 365/ Inventory Turnover Ratio
Asset Turnover Ratios:
This ratio is also known as the investment turnover ratio. This is based on the relation between the cost of goods sold and assets of the company. The important ratios this are-
Working Capital Turnover Ratio:
A firm may also like to reduce net current assets to net sales. It may compute working turnover by dividing net sales by the net working capital
Working Capital Turnover Ratio = Net sales / Net working capital
Higher ratio indicates efficiency of using working capital to maximize the sales and viceversa. But too high ratio indicates shortage of working capital of firm. The reciprocal of this ratio indicates that the availability of working capital on one rupee of sales.
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Accounts Receivable (debtors)Turnover Ratio:
This ratio is computed by dividing the sales by debtors.

Debtors Turnover Ratio = Sales / Average Debtors
This ratio shows how quickly receivable or debtors are converted into cash .It is test of liquidity of debtors of the company.
Debtors collection period -
This ratio will be expressed in terms of days or months gives the average collection period. It is calculated as follows-
Average collection period = 360 / Debtors Turnover Ratio
This gives time period after which the debtors are converted into cash on an average. This is important from the point view of efficiency of collection. This average collection period if compared with the credit period given to the customers of the company, will give a lot of insight into receivables management of the company. Hence, in general a high turnover ratio of debtors is or short collections period is preferable. A very collection period would imply either poor credit selection or an inadequate collection effort . The delay in the, collection of receivables affect liquidity position of the company seriously and there is possibility of a large number of accounts receivables becoming bad debts.
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Creditors Turnover Ratio:
This ratio is the ratio between purchases and creditors outstanding. The creditors turnover ratio as follows-
Creditors turnover Ratio = Purchases / Average Creditors
A low ratio reflects liberal credit terms granted by the suppliers, while a high ratio shows that accounts are settled rapidly. It is important ratio for analysis, as company can reduce its requirement of working capital by relying on suppliers credit.
Accounts payable period ratio -
This ratio can be expressed as the accounts payable period in terms of days or months.
Account Payable Period = 360 / Creditors Turnover Ratio
This ratio shows the extent to which the trade creditor are willing to wait for payment. The velocity of creditor (i.e. accounts payable period) on higher side reflects better negotiation for the credit period. The velocity of creditors should be compared with the credit period received from the suppliers. This should show the efficiency of the management in negotiation for the credit terms. REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE Page 43
3. Profitability Ratio:
The management of a company or the company itself is naturally interested to measure operating efficiency. Also, the owners invest their funds in the company in the expectation of reasonable return to its share holders depends on the profits earned by it. Profitability an important measure of efficiency. It also indicates the acceptance of the public the product and its effectiveness in the market. Also, the profits provide the money for the repayment of the incurred to finance the project, expansion programme and other related activities. The profitability ratios help in measuring the profitability of the company. Various types of such ratios are explained below,
Gross profit Margin: Gross profit margin represents the relation between the profits and sales.
Gross Profit Margin = Gross Profit / Net Sales
Gross profit is the result of the relation between prices, sales value and cost. Any changes in these well effect the gross profit. A high gross profit margin is the of good management. As it implies that the cost of goods it self might have reduced.
Operating Profit Margin: This ratio measures the relationship between operating profit and sales.
Operating Profit Margin = Operating Profit / Net Sales
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The operating profit means the profit before the interest and taxes and before considering the effect of non trading transactions. ( This may also be considered as after interest and tax) PAT/EBIT. This ratio indicative management ability to operate the business so that it should be sufficient to take care of the cost borrowed funds and the margin of reasonable compensation should be left for the owners.
Net Profit Margin: This ratio measures the relationship between and profit after tax and net sales
Net Profit Ratio = Net Profit / Net Sales
The profit tax is the total profit (i.e. including operating profit and non operating) after interest and tax. This ratio indicates the percentage of the net sales left after paying the interest and taxes. This includes the amount available for the apportionment to its owners for providing their capital at risk. The high net profit margin should ensure adequate return to the owners as well as enable company to withstand adverse economic conditions and selling price declining, the cost of production is rising and the demand product is falling. This gives the return on total assets employed. But it throws no light on the profitability of the different sources of funds, which finance the total assets.
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Return On investment:
It is the indicator of relationship between net profit and total assets (capital employed).
Return On investment= operating profit*100/ capital employed
This gives the return on total assets employed. But it throws no light on the profitability of the different sources of funds, which finance the total assets.
4. Expenses Ratios: It is computed by dividing sales. There are various expense ratios
Material Cost Ratio = Material / Sales
Manufacturing Expense Ratio = Manufacturing Expense / Sales
Cost of Goods Sold Ratio = Cost of Goods / Sales
In case of lower ratio is favorable while higher one is unfavorable.
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DATA ANALYSIS
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Current Ratio
bajaj year CA CL DKSS K 0.69 0.9 1.15 0.71 .-renuka hindusta n 1.72 2.46 2.55 1.6 1.78 Dhampur Sugar Ugar Sugar Bannari amman
2007 2008 2009 2010 2011
1714896380 1537601227 1878279994 2353106528 2971601903
1472956367 1188967322 1547321323 1992183097 2060859016
1.16 1.29 1.21 1.18 1.44
0.63 0.29 1.31 0.95 0.82
0.88 0.61 0.62 0.76 0.72
1.9 1.26 1.29 1.21 0.93
Current Ratio
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 2007 DKSSK renuka 2008 bajaj hindustan 2009 Ugar Sugar 2010 Bannariamman 2011 Sakthi Sugars
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Interpretation and Analysis:
The above table and diagram shows that the current ratio in the year 2006-07 was 1.16 and then it decrease to 1.29, 1.21 and 1.18 in the respective years of 2007-08, 2008-09 and 200910 and in the year 2010-11 it increased to 1.44
The normal current ratio is 2:1. The above table current ratio of the DKSSK is below the standers so it is not satisfactory. If we compare DKKSSK current ratio with the other sugar factory current ratio that is Renuka Sugars, Bajaj Hindustan Sugars, Dhampur Sugars, Ugar sugars and Bannariamman sugars no one meet the required standard of the 2:1 except the Bajaj Hindustan Sugars they had the ratio of 2.46 and 2.55 in the respective years of the 2007-08 and 2008-09 and they are having high ratio compare to all other sugar industries. And Ugar sugars is having lowest ratio in the all other sugar industries
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Quick Ratio:bajaj year CA-INV CL ratio renuka hindusta n 2007 2008 2009 2010 2011 1683947537 1506139749 1828608882 2286427485 2921786705 1472956367 1188967322 1547321323 1992183097 2060859016 1.14 1.27 1.18 1.15 1.42 1.45 1.15 0.88 0.42 -1.54 1.71 1.9 0.85 1.35 Dhampur Sugar Ugar Sugar Banna riamm an 0.88 1.28 0.89 0.68 0.95 Sakthi Sugars
1.23 0.58 1.08 0.49 0.33
0.74 0.71 0.67 0.48 0.38
6.33 4.13 1.21 1.29 0.79
QUICK RATIO
7 6 5 4 3 2 1 0 2007 DKSSK Ugar Sugar 2008 renuka Bannariamman 2009 bajaj hindustan Sakthi Sugars 2010 Dhampur Sugar 2011
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Interpretation:
Generally quick ratio of 1:1 is considered to represent a satisfactory current financial condition of the company. The quick ratios of the company for five years from 2006-07 to 201011 are 1.14, 1.27, 1.18, 1.15 and 1.42 respectively. By observing five years ratios, the company found to be sound liquidity position and it is in the increasing trend .
Shakti sugar is having the sound ratio till 2006-07 to 2009-10 that is 6.33, 4.13, 1.21, 1.29 and the ratio is decreased to 0.79 in year 2010-11 Ugar Sugar is the least ratio in all the five years. In the year 2010-11 the DKSSK is the highest ratio to compare to all other sugar industries.
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Assets turnover ratio:Bajaj year sales assets DKSS K 2007 2008 2009 2010 2011 1536921221 1773104125 2302348871 2614351672 3009539076 3021536851 0.51 2872535544 0.62 3263814163 0.71 5221176169 0.50 5544108293 0.54 1.26 2.26 1.59 3.06 renuka hindusta n 0.65 0.58 0.47 0.44 0.72 Dhampu r Sugar 2.35 0.76 0.54 0.74 1.68 Ugar Sugar 0.77 1.93 1.12 1.15 1.55 Bannar iamman 1.3 1.05 0.97 0.85 0.74 Sakthi Sugars 1.5 1.19 1.16 1.08 1.66
Assetsturn over ratio

6.00 5.00 4.00 3.00 2.00 1.00 0.00 2007 DKSSK Ugar Sugar 2008 renuka Bannariamman 2009 bajaj hindustan Sakthi Sugars 2010 Dhampur Sugar 2011
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The above table and diagram shows the relationship between the fixed assets and sales. The DKSSK sale is 0.54 times more than the fixed assets 2010-11. The highest ratio is in year2008-09 is 0.71and lowest in the year 2009-10 is 0.50 The DKSSK is the least performer in the asset turnover ratio compare to all other sugar industries . Shree Renuka sugar is having a handsome ratio compare to all. It is having 3.06 ratio in the year 2009-10 and the DKSSK is having the lowest ratio in all it is having below 1 ratio in all the years.
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Debtors turnover ratio
Bajaj
year
sales
debtor DKSSK
Renuka hindustan
Dhampur Sugar
Ugar Sugar
Bannari amman
Sakthi Sugars
2007 1536921221 272931005 2008 1773104125 370904282 2009 2302348871 274333895 2010 2614351672 484409546 2011 3009539076 384968153
5.63 4.78 8.39 5.40 7.82
17.24 40.26 29.22 26.23 --
19.88 23.21 45.24 29.97 23.73
20.09 11.83 10.44 11.19 26.44
5.76 15.17 12.65 14.68 18.69
11.6 8.58 9.29 15.46 11.32
18.63 16.63 44.63 31.44 22.56
Debtor turn over ratio

50.00 40.00 30.00 20.00 10.00 0.00 2007 DKSSK Ugar Sugar 2008 Renuka Bannariamman 2009 bajaj hindustan Sakthi Sugars 2010 Dhampur Sugar 2011
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This ratio indicates that how rapidly debts are collected. The DKSSK ratios for Five years are 5.68, 4.78, 8.39, 5.4 and 7.82 respectively from the year 2006-07 to 201011. The highest ratio was 8.39 in the year 2009. The DKSSK is having lowest ratios compare to the other factories and the Bajaj Hindustan sugars is having the high ratio in all factories compare to all five years. And the Dhampur sugar is having highest ratio 26.44 in the year 2010-11
Fixed assets turnover ratio
year
sales
Fixed assets
DKSSK renuka 1.07 1.06 1.12 0.82 0.92 1.31 2.26 1.59 3.06
bajaj Dhampur hindustan 0.68 0.58 0.47 0.44 0.72
Ugar Bannari
Sakthi
Sugar Sugar 2.38 0.76 0.54 0.74 1.68 1.26 1.93 1.12 1.15 1.55
amman Sugars 2.21 1.05 0.97 0.85 0.74 1.7 1.12 1.16 1.08 1.66
2007 1381745102 1296300712 2008 1389667492 1307442552 2009 1539886058 1374289492 2010 2342992891 2842889418 2011 2650543076 2873790557
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Fixed assets turnover ratio

3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 2007 DKSSK Ugar Sugar 2008 renuka Bannariamman 2009 bajaj hindustan Sakthi Sugars 2010 Dhampur Sugar 2011

The above table and diagram shows the relationship between the fixed assets and sales. The DKSSKs sale is 1.07 times more than the fixed assets 2006-07 and 2007-08 it was 1.06 times. and It is highest during 2008-09 is 1.12 times and 2009-10 and 2010-11 it was 0.82 and 0.92 respectively. Compare to all sugar industries the Dampur sugars and Shakti sugars are having the more than 1 times of the ratio in all the five years and Bajaj hinduastan is the least performer in the all sugar industries it is having 0.72 times and the highest ratio is of the Shree Renuka sugars in the year 2010 the ratio is 3.06 times.
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Gross Profit Ratio

Bajaj
year gross profit 2007 2008 2009 2010 2011 133349814 151545943 327550059 287021523 285624205
sales
DKSS K
Renuk a hindusta n
Dhampur Sugar
Ugar Sugar
Bannari amman
Sakthi Sugars
1536921221 1773104125 2302348871 2614351672 3009539076
8.68 8.55 14.23 10.98 9.49
14.33 11.24 14 10.28
10.4 4.72 10.59 7.22 9.78
10.17 -8.66 10.25 13.91 4.39
6.26 7.51 9.88 -1.76 4.44
18.56 6 19.93 22.24 8.81
13.43 3.88 12.86 12.87 2.49
Gross Profit Ratio

25.00 20.00 15.00 10.00 5.00 0.00 -5.00 -10.00 -15.00 DKSSK Ugar Sugar renuka Bannariamman bajaj hindustan Sakthi Sugars Dhampur Sugar 2007 2008 2009 2010 2011
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INTERPRETETION:-
The above table and diagram shows the relation ship between the gross profit and net sales in percentage. The high gross profit ratio to sales is sign of good management as it implies that the cost of production is relatively high. The DKSSK ratios for five years i.e., from 2006-07 to 2010-11 are 8.64%, 8.55%, 14.23% 10.98% and 9.49% respectively. In the year 2007-08 the Dhampur Sugar is had the negative ratio of the -8.66% it shows the company is in loss and the highest ratio found in the year 2009-10 22.24% of the Bannariamman sugars
Net profit ratio

year 2007 2008 2009 2010 2011 DKSSK 1.95 -1.85 1.30 1.90 0.76 renuka 6.72 5.27 6.41 7.43 bajaj Dhampur hindustan 2.53 -2.52 9.06 1.7 0.24 Sugar 10.37 -10.19 0.52 5.88 0.37 Ugar Sugar 0.98 3.32 3.54 -4.54 0.67 Bannariamman 11.35 6.27 16.73 16.08 6.46 Sakthi Sugars 10.79 3.98 -6.73 7.4 -4.65
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20.00 15.00 10.00 5.00 0.00 -5.00 -10.00 -15.00 DKSSK Ugar Sugar 2007
Net profit ratio
2008
2009
2010
2011
renuka Bannariamman
bajaj hindustan Sakthi Sugars
Dhampur Sugar
INTERPRETETION:This ratio is the overall measure of the firms ability to turn each rupee of sales into net loss. The ratios of the DKSSK for three years are 1.95%, -1.85%, 1.30%, 1.9%and 0.76% respectively. By analyzing the above ratios it clearly shows that, the companys profitability is not satisfactory. But among the five years ratios, it is found that in the year 2007-08 it was in net loss of -1.85%.
Among all sugar industries the Dhampur sugar is incurred a loss of -10.19% in the year 2007-10 and in the overall performance of the five year the DKSSK is the least performer and the Bannriamman sugars is the good performer compare to all
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Working capital Turnover Ratio

Year 2007 2008 2009 2010 2011 sales 1536921221 1773104125 2302348871 2614351672 3009539076 net W C 241940013.2 348633904.9 330958671.1 360923430.7 910742887.5 Ratio 6.352488788 5.085862563 6.956605377 7.243507762 3.304488146
working capital turnover ratio

8 7 6 5 4 3 2 1 0 2007 2008 2009 2010 2011
Interpretation: This ratio establishes relation between sales and net working capital. The ratios for five years are 6.35, 5.085, 6.96, 7.24 and 3.30times, respectively. The highest ratio was 7.24 times, which was in the year 2009-10. It may be interpreted that the one rupee of net working capital, the company has generated Sales of rupees 7.24 and it can be said that its net working capital rotated in that year.
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Debtors Collection Period

Year 2007 2008 2009 2010 2011 Debtors Turnover Ratio 5.631171222 4.780489768 8.392506041 5.396986277 7.817631283 no of days 360 360 360 360 360 ratio 63.930 75.306 42.895 66.704 46.050
Debtors Collection Period

80 70 60 50 40 30 20 10 0 2007 2008 2009 2010 2011
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Credit turnover ratio

year 2007 2008 2009 2010 2011 credit 555990726 471073459 567376638 692770803 701721051 sales 1536921221 1773104125 2302348871 2614351672 3009539076 ratio 2.764 3.764 4.058 3.774 4.289
ratio
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 2007 2008 2009 2010 2011
Interpretation: This ratio reflects credit terms granter by the suppliers. A low ratio shows that the liberal credit terms granted by the suppliers, while the high ratio shows that accounts are being settled rapidly. The ratio for Five years is 2.76 times, 3.76 times, 4.05 times, 3.77 and 4.289 respectively. There was high ratio 4.289 times in the year 2011.
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Account Payable Period

year 2007 2008 2009 2010 2011 no of days 360 360 360 360 360 ratio 2.764292908 3.76396524 4.057884511 3.773761337 4.288796911 days 130 96 89 95 84
Accounts payable period

140 120 100 80 60 40 20 0 2007 2008 2009 2010 2011 days
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Material procurement cost to sales

year 2007 2008 2009 2010 2011 cost 824642844 678014200 1173972426 1818481560 1709192307 sales 1381745102 1319054052 1475308158 2245656051 2544876887 Ratio 0.596812569 0.514015479 0.795747261 0.809777419 0.671620822
Chart Title
3E+09 2.5E+09 2E+09 1.5E+09 1E+09 500000000 0 2007 2008 2009 2010 2011 Cost Sales
Interpretation: This ratio reflects the relation between the material procurement cost and the sale . the both sugarcane procurement cost and the sale of the sugar is in increasing order in the last five years in the year 2011 the DKSSk is a highest sale of Rs 2544879887/- and the highest cost in the year 2010 is 1818481560/- and the lowest procurement cost and the sales we can find in the year 2007-08 RS 678014200/- and 1319054052/- respectively
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Sugar production cost to sugar sales ratio

year 2007 2008 2009 2010 2011 cost 1255533218 1040995085 1771196078 2542814454 2604089176 sales 1381745102 1389667492 1539886058 2342992891 2650543076 ratio 0.908657622 0.749096522 1.150212426 1.08528475 0.982473818
ratio
1.4 1.2 1 0.8 0.6 0.4 0.2 0 2007 2008 2009 2010 2011
Interpretation: The ratio indicates how much material cost incurred on one rupee of sales the of sugar of five years ratios i.e. from 2006-07 to 2010-11 are 0.908, 0.7490, 1.15, 1.085, 0.9854 respectively.
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particular
As at 31.03.20 11 %
As at 31.03.20 10 %
As at 31.03.2 009 %
As at 31.03.20 08 %
As at 31.03.20 07 %
LIABILITIES Share Capital Reserves & Surpluses Term loan Working capital loan Bank O. D. payable Statutory and other deposits Suspense, sundries & other Total Rs ASSETS Fixed assets Investments Current assets Loans and advances Debtors Cash in hand Cash at bank Other assets Profit account Total Rs and loss 2872.77 58313.84 4.93 100 3100.6 55312.34 5.61 100 3598.38 36236.48 9.93 100 3898.02 32623.35 11.95 100 3569.97 33785.31 10.57 100 28737.9 273.81 19026.66 563.03 3849.68 4.67 2985.32 0 49.28 0.47 32.63 0.97 6.60 0.01 5.12 0.00 28428.89 169.15 16660.8 595.5 4844.09 15.12 1498.19 0 51.40 0.31 30.12 1.08 8.76 0.03 2.71 0.00 13742.89 165.35 12288.03 981.84 3709.04 6.21 1744.74 37.93 0.46 33.91 2.71 10.24 0.02 4.81 0.00 13074.42 167.32 10398.75 1014.4 2743.38 3.06 1324 0 40.08 0.51 31.88 3.11 8.41 0.01 4.06 0.00 12963 26.1 12424.75 485.58 2729.31 3.29 1583.31 0 38.37 0.08 36.78 1.44 8.08 0.01 4.69 0.00 7017.21 58313.84 12.03 100 6927.7 55312.34 12.52 100 5673.76 36236.48 15.66 100 4710.73 32623.35 14.44 100 5559.9 33785.31 16.46 100 8232.46 14.12 7182.32 12.99 6648.95 18.35 6661.74 20.42 6831.82 20.22 1365.96 25816.45 2293.97 13587.79 0 2.34 44.27 3.93 23.30 0.00 1354.3 23165.91 3660.09 13022.02 0 2.45 41.88 6.62 23.54 0.00 1343.95 8410.57 4347.98 9740.25 71.02 3.71 23.21 12.00 26.88 0.20 1336.6 7579.03 5028.35 7178.54 128.36 4.10 23.23 15.41 22.00 0.39 1321.99 6768.01 4094.98 9124.6 84.04 3.91 20.03 12.12 27.01 0.25
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The share capital of the company 4.10% highest in the year 2008 and lowest in the year 2011 2.34% . In the balance sheet the reserves and surplus is having the major share that is the 44.27% in the year 2011 and it is increasing continuously from 20.03% In year 2007 to 44.27% in the year 2011.
the term loans are slightly decreasing from the 12.12% in the year 2007 to 3.93% in the year 2011 working capital is having second largest share in the liability side the highest is in the year 2006-07 is 27.01% and lowest in the year 22% in the year 2008 the DKKSK is also recorded the decreasing statutory and other deposits it decreased from 20.2% to 14.12% from the year 2007 to 2011 the suspense , sundries and other liabilities are also decreasing from 16.46% in2007 to 12.03 in 2011
I the asset side the fixed assets are the major portion that is 49.28% in the year 2011 and lowest in the year 38.37% 2007 it shows that the fixed assets are increasing continuously the current assets is fluctuating in between the percentage of the 30 to 36 in the year 2006 it was highest of 36.78% and the lowest is in the year 2010 is 30.12% the DKSSKs loans and advances are decreased from the 1.44% to 0.97% in the period of 2007 to 2011 profit and loss account is also shown decreasing trend in the balance sheet it was decreased from 10.57% in 2007 to now it is 4.93% in 2011
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Findings:-
The current ratio of all the sugar mill did not meet the standards except some time they all are under performing and DKSSK is also among that and its is also having below 1:2 standard
The Quick ratio during the 5 year of the company DKSSK is very satisfactory with the standard 1:1 and also compared to the other sugar industry
In the assets turnover ratio and the debtor turnover ratio the DKSSK is the lowest performer compare to all other six sugar factories.
We can find the DKSSK is the moderate performer in the gross profit ratio compare to all other and Bannariamman and Renuka sugars are the higher performer in the gross profit ratio
In the case of the net profit ratio and the fixed assets turnover ratio the DKSSk is not satisfactory but It is the second least performer compare to all six factories Ugar sugar works in net profit ratio and Bajaj Hindustan sugar in fixed asset turnover ratio.
The working capital turnover ratio of the company is 7.24 times is highest and 3.30times is the lowest this shows that the DKSSK is not having the satisfactory working capital ratio.
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Material procurement cost of the DKSSk is more than 0.5 times of the sales it shows that the company is spending more on the material procurement.
Sugar production cost to sugar sales ratio is 0.9 and in the year 2009 and 2010 it is more than the 1 times it shows the companies cost is more than the sales.
In the common size balance sheet the reserves and surplus are near about 40% of the liabilities it shows that the company had more reserves and surplus.
In the asset side of the common size balance sheet we can see the fixed assets about 49% and current assets near 32%. It shows that the company is having more than 70% of its assets are fixed and current assets.
Page 69
SUGGESTIONS
The company has to increase the current ratio up to the standard limit for efficient utilization of the current assets.
Increase the Gross Profit ratio by reducing the cost of production.
The DKSSK company has to increase sale to increase the asset turnover ratio.
The DKSSKs net profit is reduced in the year 2011 to Rs 22782300 from 2011 from Rs 49777600 so company has to try increase the net profit.
The cost of the sugar production of the company is high so the DKSSK must try to reduce the cost of the production
The sugarcane procurement cost is comparatively high so the DKSSK must try to reduce the sugarcane procurement cost.
The DKSSk is transferred its major funds to the reserves and surplus so the companies liabilities is increased heavily so they must have to take care of the reserve and surplus to reduce the company liabilities and increase profit.
Page 70
Balance sheet of the DKSSK
ANNUAL REPORT 1-4-2006 to 31-3-2007 BALANCE SHEET AS AT 31-03-2007 particular

LIABILITIES Share Capital Reserves & Surpluses Term loan Working capital loan Bank O. D. payable Statutory and other deposits Suspense, sundries & other Total Rs ASSETS Fixed assets Investments Current assets Loans and advances Debtors Cash in hand Cash at bank Other assets Profit and loss account Total Rs
schedule
As at 31.03.2007
1321.99 6768.01 4094.98 9124.6 84.04 6831.82 5559.9 33785.31
1 2 3 4 5 6 7
8 9 10 11 12 13 14 15 16
12963 26.1 12424.75 485.58 2729.31 3.29 1583.31 3569.97 33785.31
Page 71

schedule
As at 31.03.2008
1336.6 7579.03 5028.35 7178.54 128.36 6661.74 4710.73 32623.35
1 2 3 4 5 6 7
8 9 10 11 12 13 14 15 16
13074.42 167.32 10398.75 1014.4 2743.38 3.06 1324 3898.02 32623.35
Page 72
ANNUAL REPORT 1-4-2008 to 31-3-2009 BALANCE SHEET AS AT 31-03-2009
particular
schedule
As at 31.03.2009
1343.95 8410.57 4347.98 9740.25 71.02 6648.95 5673.76 36236.48
1 2 3 4 5 6 7
8 9 10 11 12 13 14 15 16
13742.89 165.35 12288.03 981.84 3709.04 6.21 1744.74 3598.38 36236.48
Page 73

schedule
As at 31.03.2010
1354.3 23165.91
1 2 3 4 5 6 7
3660.09
13022.02 7182.32 6927.7 55312.34
8 9 10 11 12 13 14 15 16
28428.89 169.15 16660.8 595.5 4844.09 15.12 1498.19 3100.6 55312.34
Page 74

schedule
As at 31.03.2010
1354.3 23165.91
1 2 3 4 5 6 7
3660.09
13022.02 7182.32 6927.7 55312.34
8 9 10 11 12 13 14 15 16
28428.89 169.15 16660.8 595.5 4844.09 15.12 1498.19 3100.6 55312.34
Page 75

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Shree.D.K.S.S.

K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

Sugarcane ,sugar, molasses production and recovery of sugar

REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

Vision, mission and quality policy

REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

AIMS & OBJECTIVE OF THE COMPANY

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Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

ACHIVEMENTS AND AWARDS

Energy Department of Government of Karnataka and KREDL have awarded us he

REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

BYPRODUCTS OF SUGAR CANE

The chief by products of sugar manufacturing are -

REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

KARKHANE NIYAMIT, CHIKODI

And other co-operative and private sugar industries are as

REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

SUGAR CANE SUPPLY.

REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

STAGE: 2 MILLING OF CANE/ EXTRACTION OF JUICE.

CLARIFICATION AND EVAPORATIONS.

CRYSTALLIZATION PURGING AND SUGAR MANUFACTURE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

c. Information System Structure of information system

SENIOR GENERAL MANAGER

HEAD OF THE DEPARTMENT

REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)

REVA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BANGALORE

Shree.D.K.S.S.K,CHIKODI by-Abhijeet A Gidagalle (9035051108)