PROJECT REPORT ON RATIOS

• 1. CONTENTSSL TOPICS PAGE NONO PART-A Introduction to the concept Industry profile Background and inception of the company Nature of the business carried Vision, Mission and Quality policy Product/Service Profile Area of operation-Global/National/Regional Ownership pattern Competitors Information Infrastructural facilities Achievement/ Awards Work flow model McKinneys 7S ModelPART-B Title of the project Statement of the problem Objectives Data collection Statistical tools used for research Sampling Technique Plan of Analysis Limitations of the study Data Analysis & interpretation Summary of findings Suggestions Conclusions Future Growth Learning Experience

2. Introduction to the concept India is developing country in which more than 70% population is dependentupon agriculture. In India Wheat, Cotton, Rice, Tobacco & Sugarcane are the some main crops.But the sugar cane is one of the important agricultural productions. And or by using the sugarWe produce sugar. Which is very important item of daily meals? Sugar is mainly used for tea,Coffee and so many food products. It is also important raw material for bakery industry. TheSugar is produced by so many co-operative and also private factories.The first scheme of sugar factory in co-operative society has been introduced byMr.G.N. Sahastrabudhe & R.N. Hiremath in 1912. But first Co-operative sugar factory startedin 1918, by the Lallubhai Samaldas & G. N. Sahastrabudhe in baramati. But due to lake ofsugar Cane the factory stopped its working in 1924. After that, in co-operative field, under the guidance of Vilnalirao patil, Dr DhanjayGudgil Tried to start second co-operative sugar factory. He was started pravar -co-operativeSugar factory in 1950 at loni this factory got success in market therefore some other sugarFactories were going to start in Pune, after, the late 1970 there was a rapid increase intrend of co-operative sugar factory. 3. PFROFILE OF THE INDUSTRY 4. INDUSTRIAL PROFILEABOUT THE SUGAR INDUSTRY IN INDIA:- India has been known as the original home of sugar & sugar cane.indianMythology supports the above facts as it contains legends showing the origin of sugarcane.India is the second largest producer of sugarcane next to BRAZIL. Presently above 4 millionHectors land is under the sugarcane with an average yield of 70 tonnes per hectors.India is the largest single producer of the sugar including traditional tradeSugar sweeteners, Khandsari & gur equivalent to 26 million tonnes row value followed byBrazil in second place at 18.5 millions tonnes. Even in respect of white crystal sugar. Indiahas ranked No.1 position in 7 out of last 10 years.HISTORY OF SUGAR INDUSTRY IN INDIA:-Traditional sweeteners gur & khandsary are consumed mostly by the rural population in India. In the early 1930s nearly 2/3rd of sugarcanes production of alternates sweeteners gur & khandsari. With better standard of living & 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 form controls & taxes which are applicable to sugar sector. 5. The advent of the modern sugar processing industry in India began 1930 withgrant of tariff to the Indian sugar industry, The number of sugar mills increased from 30 inthe year 1930-31 to 135 in the year 1935-36 &the production during the same period increated form 1.20 lakh tonnes to 9.34 lakh tonnes under the dynamic leadership of privateSector. The area of planning for industrial development began in 1950-51 & Governmentlaid down targets of sugar production & consumption, licensed & installed capacity, Sugarcaneproduction during each of Five year plan periods. MANUFACTURING PROCESS & TECHNOLOGY:-Sugar (sucrose) is a carbohydrate that occurs naturally in every fruit & vegetable . is a major product of pirotosynthesis, the process by which plants transforms the suns energy into food. Sugar occurs in greatest quantities in sugarcane & sugar beets form whichit is separated for commercial use. The natural sugar stored in the cal stalk or beet root isseparated from rest of the plant material through a process known as refining.For sugarcane the process of retaining is carried out in following steps.Pressing of sugarcane to extract the juice.Boiling the juice unit it begins to thicken & sugar begin to crystallize. 6. Spinning the crystal in a centrifuge to remote the syrup, producing raw sugar.Shipping the raw sugar to a refinery where it is wasted & filtered to removeRemaining non sugar ingredient & colour.Crystallizing, drying & packing the refined sugar.Beet sugar processing is the similar but it is alone in one continuous process without theraw sugar stage. The sugar beets are washed sliced & soaked in hot water to separate thesugar containing juice from the beet fiber. The sugar laden juice is the purified, filtered, For the sugar industry, capacity utilization is conceptually different from theapplicable to industries in general. In depends on three crucial factors the actual numbers ofton sugarcane crushed in a day, the recovery rate which generally depends on the quality ofthe cane & actual length of the crushing season.Since cane is not transported to any great extent, the quality of the cane that afactory receiver on its location & it outside its control. The length of the crushing season alsodepends upon location with the maximum being in south Indian. sugarcane in India is used tomake either sugar, Khandsari or gur . However sugar products produced are divided into fourbasic categories; Granulated, brown, liquid, sugar, and invert sugar. 7. PFROFILE OF THE COMPANYName of the factory Shree Halasidnath SahakariSakhar Karkhana LTD.Address Shree Halasidnath SahakariSakhar Karkhana LTD.Shankaranand nagar, Nipani.TAL:-Chikodi. DIST:-BelgaumPIN:-591237.Year of EstablishmentAPRIL-1981.1st Crushing Season JANUARY-1987.Register Number DSK/REG-2/80-81.Register Date 22-04-1981.Phone NumberSTD CODE (08338)Chairman-220355Office-222090FAX Number(08338)221315 8. BACKGROUND &INCEPTION OF THE COMPANY 9. BACKGROUND & INCEPTION COMPANY.Halsidhanath sahakari sakhar karkhana is placed 3 km away from Nipani in northside at Shankaranandnagar , Tal:chikodi Dist: belgaum. Halsidhanath sahakari sakhar karkhanais the support pillar to the sugar cane producer farmes in the Nipani area. The karkhana wasstarted by the some social workers in nipani area with a view to provide an good option tothe former in this area like sugarcane. Mr. Baburao Budihalkar was the chief promoter in this project But, some otherThe foundation of karkhana building was held on 9-11-1982. The chief guest forthis function was Shri.Rajiv Gandhi who was the prime minister of India in that time. The Karkhanastarted its regular working on 30-9-1989. The delay was due to the changing political conditionsin Karnataka state. The Karkhana developed a very good rapport with the farmers in this area and workedfor their progress . So, the karkhana is operating in entire Chikkodi taluka and Alur,Bhairapur,Kanagala, Shippur, Karajaga,Rashing,Bad,Nangnur,Mattiwade,Hitani,Shekinhasur,Konankeri,sadlaga thirteen(13) villages in Hukkeri taluka. 10. Only Belgum in Belgum laluka and Soudatti in Raibag Taluka all these part of Belgaum districtin the Karnataka state. And Arjuni, Chikhali, Gorambe, Shendur, Shankarwadi, Vandur allthese eight (8) villages in Kagal taluka is a part of Kholapur district in the Maharashtra stateThus, it will comprise of part of Belgaum district and part of Kolhapur district, from twoadjoining states.OBJECTIVES AND FUNCTIONS:- The principle object of the karkhana will be to promote the interests of all its members to attain their social and economic betterment through self help and mutual aid in accordance with the co-operative principles. To prepare and implement the programme for harvesting and transportation of sugarcane on behalf of the members from their field to factory in supply of sugarcane to factory for crushing and to avoid probable losses of sugar in cane. 11. To manufacture sugar, Jaggery and its allied by products from the sugarcanesupplied by the members and other and to sale these products at good price. TO install the factory for manufacture sugar on large scale basis and to take allnecessary steps to run it efficiently To install the necessary machinery required for producing of bagasse, molasses,Press-mud etc. To ruchase the means of transportation and to run, to give and to take on hire basis. To install research centers and to assist the existing research institutions and to undertake research work helpful to sugarcane, sugar and allied industry. r6 12. NATURE OF THE BUSSINESS CARRIED 13. NATURE OF THE BUSINESS CARRIED:-S.H.S.S.K.LTD. is co-operative sector firm. It is a manufacturing company.It produces sugar, molasses And supplies sugar tp Nipani, Chikodi Taluka, Raibag Taluka,saudatti, and Hukkeri Taluka. It operates within Karnataka as well as outside Karnataka.Nature of business carried Shri Halasidhanath sahakari Sakhar KarakhanaLtd is involved in the activity of manufacturing white crystal sugar products which is themain product. The process of production involves conversion of. 1) Raw sugar cane to sugar, 2) Raw sugar to refined sugar, Molasses, Bagasses are its by products. MOLASSES:-Molasses is mainly used for the manufacture of ethyl alcohol(ethanol) yeast and cattle feed. BAGASSES:-Bagasses is usually as a combustible in the furnaces to produce steam, which in turned is used to generate the power, it is also used as raw materials for the production of paper and as feedstock for the cattle. 14. VISION, MISSION & QULITY POLICY 15. VISION:-The companys vision is to become the most efficient producers of sugar and the largest marketer of sugar and ethanol in the country. AIMS:-To expand its installed capacity, achieve end-to-end integration for all its plants toimprove margins and reduce business cycle.Achieve greater raw material security.Increases its focus of cooperate and high volume consumers.To become the most efficient and market driven integrated processor of sugarcanein India. Delivering consistently on returns to all its shareholders. Briging overall productivity and efficiency throughout the organization, especially by valueaddition of its by products in sugar effluent waste etc. Producing the best quality sugar to satisfy the domestic and internal nor MISSION:- Provide employment & contributed to the welfare to society. Provide market for sugarcane growers & ensure suitable price for their crop. To take care of environment, avoid pollution & protect other species. To avoid wastage of resources & to make optimum utilization of resources. QUALITY POLICY:- To provide quality at lowest possible costs. To avoid usage of such products which are harmful for the persons health & life. 16. PRODUCT PORFILE 17. PRODUCT PROFILE:-Shri Halasidhanath Sahakar Sakhari Karakhana Ltd established for the purposeof sugar while producing the sugar some raw juice and raw bagasses become molassesand some other by-product.The Shri Halasidhanath Sahakar Sakhari Karakhana Ltd is producing following product1) SugarA) Medium-30B) Small-30C) Levy2) Molasses3) Compost4) Bagasses 18. AREA OF OPERATION 19. AREA OF OPREATION:-The Shri Halasidhanath Sahakar Sakhari Karakhana Ltd has wide rangeof area of operation for continuous and regular flow of sugar cane from differentauthorized area within the 80 kms. Around the spot of plant includes some regionof two states from Maharashtra and Karanataka under.SR.NONAME OF TALUKA DISTRICT NUMBER1ChikodiBelgaum432HukkeriBelgaum053Raibag Belgaum044BelgaumBelgaum015JamkhandiBaglkot016Athani Belgaum057KagalKholapur 09TOTAL68 20. OWNERSHIP PATTERN 21. Shri Halasidhanath Sahakar Sakhari Karakhana Ltd established in the year 1981at Hala sugar gram of chikodi Taluka. It was resolved to collect the share of established thissugar factory in co-operative basis. Let the late Baburao B patil Budhialkar and other socialworkers and leader working in co-operative sector also come forward to assist team in thestarting this factory. It is joint venture with share capital of Rs. 104940000 contributed by18990 share holders. The company was established in the year April 1981 & started the crushing in January 1983. The company is registered under the provision of companies Act-1956. THERE IS TOTALLY 15 BODS. Grower member will elect 12 BODS 1 Director will be elected by the co-operative. 1 Director nominated by the principal of financial agency. Apart from this 14 director, managing director will be deputed by the government 22. PRESENT BOARD OF DIRECTORS ELECTED DIRECTORShri. D.A.Chougale Managing DirectorShri. Babasaheb .S. Saasne ChairmanShri .Ramagounda .R. Patil Vice- ChairmanShri .Ganesh .P. Hukkeri DirectorShri .Appasaheb .S. JolleDirectorShri. Annasaheb .A. PatilDirectorShri. Vishawanath .S. Kamate DirectorShri. Malagounda .P. Patil DirectorShri. Anand .D. GindeDirectorShri. Chandrakant .S. Kotiwale DirectorShri. Ramagounda .B. Patil DirectorShri. Ramagounda .Y. Patil DirectorShri. Kanthinath .G. ChougaleDirector 23. MEMBERSHIP OF SHARE CAPITAL:- The membership of Shri Halsidhanath Sahakari Karakana Ltd has been accepted bydifferent individuals and firms categorized into three classes as under A Class involves the grower (farmers of agricukturist) B Class involves the institute and non-growerThese are:-1. Co-operative Societies2. The belgaum District Central Co-operative Bank Ltd.3. Karnataka State Agro Industrias Co-operation, Bangalor.C Class involves the state government of karnakata. The above said members born their share as share capital asSr No Member class No of SharesShare capital1A Grower15,924 613.52 B co-operative society2Non-Grower 3065 60.063C Government of Karanataka 1375.82Total 18990 1049.40 24. COMPETITORS INFORMATIONThe main competitors are as followsDoodh Ganga Shakari Sakhare Karkhane, LtdCrashing capacity-5500 TCDRecovery -11.5%Sugar production -10000 Qtls (per day).Venkateshwer Sugar LtdCashing capacity -2500 TCDRecovery -10.5%Sugar production -3000 qtls (par day).Renuka Sugar LtdCrashing capacity -10000 TCDRecovery -11.2%Sugar production -14000 Qtls (par day). 25. INFRASTRUCTURAL FACILITY. 26. CATEENThe management provides multi-purpose cooking range, utensils, working capital, andinstallation of gas equipment free building expenditure towards purchase of furniture. Actualexpenditure towards consumption of water, electricity and gas, annual subsidy. the rates offoodstuffs in the canteen are fixed on no no profit basis. The workers who are working inthe production department are entitled for Tea free at cost while they are on duty.TRNSPORTATIONUp to 40 km. three transportation facilities is provided to farmers rate structure ofvehicles as per kilometresSr. No KMRate per kmSr No KMRate per km15 45.561155156.7721057.761260166.8331573.121365174.0242086.341470183.8052598.161575192.75630106.30 1680199.12735117.45 1785209.24 27. WATERIt is established the river Vedganga. there is sufficient supply of water required forproduction process. POWER There is provision electricity from KPTCL. & company generates its own power throughboilers during crushing of sugarcane.ACHIEVEMENTSIn 1996-97 from South Indian Sugar Technologists Association (SISTA) for bestachievement award in cane development.FATURE GROWTH AND PROSPECTUSTo undertake such activities as are identical and conductive to the developmentthe socity.To inn coverage for other crops where sugarcane not grown.To expand crushing capacity. 28. WORKFLOW MOODEL 29. WORKFLOW MODELCANEMillingPrimary JuiceLast Mill JuiceBagasseBoilerMixed Juice Heating 65 C->Lime +SO2 applicationElec Generation Clear Juice Heating 100 C SyrupMud Settled (cake) A M/CB M/C C M/CSugar 100/50 kg A.HA.LB Seed B heavyMolasses Molasses MolassesGradationWeighment C seed C.L MolassesF.M ClassGodowns 30. APPLICATION OF 7S MODEL OF MC, KENSEYSStructureStrategySystem Shared Values Skill StyleStaff 31. Introduction Strategic planning refer to the management processes in organization which helps in management to determine the future impact of change and take the current decisions to reach designed future. The management literature is replace which instance of organization which have fade stress in strategic planning but not have been phenomenally successfully.Consultants at the Mc.Kensys company very well known managementconsultancy firm the created states develop the 7 s frame work towards the end of7 s diagnose the causes of organizational problems and to formulate problems forimportant. The following is the 7s frame related to the Mc. Kennys 7s frame workAccording to waterman organizational change is not simply matter of structurealthough structure is a significant variable in the management of change. Again it is not asimple relationship between strategy and structure although strategy is also critical as put.In their view effective organizational change may be understood to be a complex relationshipbetween strategy, structure, system and style, skill, staff, and super ordinate goals. Theframework suggests that there is a multiplicity of factors that influence an organization andability to change and its proper mode of change. 32. STRUCTURE OF ORGNIGIATIONSHARE HOLDER BOARD OF DIRECTOR CHAIRMAN MANAGING DIRECTORShare SectionTime and labour Purchase Section Store SectionSales SectionSecurity SectionCane DevelopmentEngineering Section Production SectionSections 33. SHARE SECTION:- Head:- M.T. PATIL According to by-law, the factories authorized share capital is Rs 20 crores. Atpresent the number of shareholders is 18990 and capital collected from all the shareholders.i.e. Rs 10,49,40,000/- The membership of Shri Halsidhanath Sahakari Karakana Ltd has been accepted bydifferent individuals and firms categorized into three classes as underA Class involves the grower (farmers of agricukturist)B Class involves the institute and non-growerThese are:-4. Co-operative Societies5. The belgaum District Central Co-operative Bank Ltd.6. Karnataka State Agro Industrias Co-operation, Bangalor. C Class involves the state government of karnakata.The above said members born their share as share capital as Sr No Member class No of Shares Share capital 1 A Grower 15,924 613.52 B co-operative society 2 Non-Grower3065 60.06 3 C Government of Karanataka1375.82Total18990 1049.40 34. TIME OFFICE LABOUR WELFARE DEPARTMENT:-HEAD: - S.G. MORE.Time office is one of the main part of the factory because in time office all records regarding many types of departments and about the details of their employees are recorded so it must require in each and every organization.NAME OFPERMANESEATIONALGOVT CONSTRUDAILY CONTRA TOTALTHE DEPT NT CTUALWAGES CTTime Office64--- 313Security 13 --6- 322Store65-1- 921Civil4---- -4Environment33-1- 916Administrative 15 315- 630General A/C10 ---- 313Cane A/C 72-1- 616Vehicle74--- -11Medical1--1- -2Agriculture28 62 -52 39 136Engineer 90 70 -33 41 207Manufacturer 899 --2 38 147TOTAL198252123 7 157638 35. There is no special department like HRD or Personal management in the factorytime and labour welfare office is there, in this office there is labour welfare officer & headtime keeper, shift time keeper and wage clerk is there.WEL-FARE FACILITY:-To take care of all the workers, the organization will provide the some following facility those are:- A. Bonus is 08.33%based on the worker salary. B. Quarter, hospital etc. facility and allowances C. Canteen facility D. Promotion facility E. Permanent employees get one increment every year. F. School facility to the worker children. G. And medical facility are available if any accident occurs. PURCHASE SECTION:- Purchasing plays an important and significant role in processing industry. Purchasing is tough task, which is to be performed very carefully. It functions on the principal of Money saved in purchased is money gained in sales. Profit can also be earned in purchasing process by the purchase manager by his knowledge about the entire market. 36. STORE DEPARMENT The working flow chart shown belowStore-Department Assistant Store-KeeperClerksPeon In this factory the store department in charge will be Shri Kadam sir under their the information will be here. Main Points:-1. The store keeper will check the supplier quantity and afterwards send to the respective section wise.For ex.:- Cement, Belt etc. 37. After this the material verification will be taken by under chief engineer. 2. The store keeper will entry the purchased material in a book in systematicmanner. 3. The daily transactions will be held in the books of power house main panel board. 4. Store department is just like a godown because in department all materials which are needed to the factory are stored.5. The store house which contains the 21 heads. They are follows:-Heads :-1. Oil and lubricants Ex :- Bearing oil, Greece, etc being purpose machinery.2. Manufacturing goodsEx:- Chemical, sulphur etc uses of sugar processing.3. HardwareEx:- Nutbolt, chain, MS bar etc uses of machinery maintenance.4. Welding materialsEx:- Welding rod, screen, black glass uses of welding purpose.5. Drawing materialsEx:- Amonia paper, Dressing paper, etc machinery maintenance of engineering department. 38. 6. Electrical goods Ex:- Pressure gauge, vacuum gauge, temperature gauge etc for machinery maintenance.7. Tools and tacklesEx:- Spaner, screw driver etc.8. Transmission of goods Ex:- Bearing oil, oil seal, bearing glue etc.9. Iron and steelThese are used for machinery maintenance of engineering department.10.Building materialsEx:- Cement, steel, stone crystal, sand etc uses of concrete foundation formachinery.11.Machinery and machine spareEx:- Bearing, coupling, nutbolt etc.12.Pipe and pipe fittingEx:- pipe, bend, flang etc13.Furniture and fixturesEx:- Chairs, tables etc14. StationaryEx:- Log book , indent book, bucket etc. 39. 15.Rubber goodsEx:- Bush, rubber belt, wheel, ordinary material. 16.LibraryEx:- Books. 17.Vehcle spare 18.Medical Ex:- Druds, tablets, syringe, salines etc.19. Printing Ex:- Log, book, store recipt book etc..20. SDF material Ex:- Pump, pipe, sugar discretion funnel.21. Computer spareEx:- Ribbon, cartridge, pen drive etc. 40. SALES SECTION:-The main product of H.S.S.K.Ltd is sugar and by-Bagasses, Molasses, and pressmud. These all are sold by calling tenders. Because the factory has no right to sale these products directly in the open market. The Office Superintendent does this work and sales officer with the help of sugar directors Bangalore Central Govt. fixes the selling quantity.There are two types of sales:- A. Free sale--------- 90% of the produced sugar. B. Levy sale--------10% of the produced sugar.The factories by-products like, A. Bagasses-------used in paper industry. B. Molasses-------used in distilleries. C. Press-Mud-----used in fertilizer. SECURITY SECTION:-There are 22 security guards and their function are,1) Checking in-out persons and vehicles.2) Protecting and securing proper and best use of assets of the factory.3) Maintaining the below mentioned registers, A. Attendance registers. B. Visitors register. C. Vehicle register. D. Workers get passE. Bagasse, Molasses, Press-Mud get pass. 41. 2. SKILLSkill is the distinctive capabilities or competence of the organization as a whole.Skills developed are,Product quality awareness.Time management.Result orientation.Dedication. This type of training also known as job instruction training is the most commonlyused method. Under this method, the individual is placed on a regular job though the skillnecessary to perform that job. The trainee learns under the supervision of a qualifiedworker of instructor. On-the-job training has the advantage of giving firsthand knowledge and experienceunder the actual working condition. While the trainee learns how to perform job, he is also aregular worker rendering the services for which he paid. The problem of transfer of trainee isalso minimized as the person learns on-the job training methods includes job rotations, coachingjob instruction or training through step-by-step and committee assignment. 42. 3. STYLEStyle includes two things, one management style and organizational culture. Management style the way in which the managerial personnel behave and collectively spend their time to achieve organizational goals, it consists the way of lending. motivating and the style of leadership in the management.Here they usually use authoritative style means top to down decision making parameter pertaining to day-to-day operation but they allow subordinates to participate in the decisions affecting their interest and ask their suggestions for their decisions. This makes organization more effective.4. SRTATEGYStrategy means the actions which a company plans in to or anticipates of changes in its external environment. In other words it is the determination of basislong term objectives or courses of action and allocation of resources to achieve theorganizational gaols. They are as follows,Waste Elimination S.H.S.S.K. Ltd. Produces molasses and sell it to liquorindustries. And it uses biogases boilers in order to generate energy for factory duringcrushing process. 43. Cost Reduction: They are reducing the intake of employees and reducing thenumber of employees in order to reduce cost. They are not depending on K.P.T.C.L.for power while crushing process is carrying on. They produce energy by boilers. 5. SYSTEMA system includes formal and informal procedures that support the strategy and structure. In other words, it is the processes and flows that shown how an company gets its day-to-day things done. This includes the procedures and the routines that will characterized how important work to be done. i.e. financial system, hiring, promotion and performance appraisal system and information system etc. PRODUCTION PROCESS:-*Pressing of sugarcane to extract the juice.*Boiling the juice until it begins to thicken and sugar begins to crystallizes.*Spinning the crystals in a centrifuge to remove the syrup, producing rawsugar.*Shipping the raw sugar to a refinery where it is washed and filtered toremove remaining non-sugar ingredients and colour crystallizing, and drying packing the refined sugar. 44. INVENTORY CONTROL SYSTEM:- Here in stored department the inventory control used FIFO. Here the method FIFO is appropriate because the sugarcane is not a durable commodity it isbetter to crush the sugarcane freshly. It is not stored for a long time because it turnedin too dry sooner.6. STAFF Staffs refer to the people in the enterprise and their socialization into the socialiseational culture. Productive high performing employees are the companies most valuable assets. The company follows a progressive policy taking keen interestin its personnel and well beings and progress, which builds a strong sense of belongingness.Technical Department:-A. Machine shop and maintenance quality assurance.B. LaboratoryC. Tool roomD. Manufacturing engineering departmentsE. Production planning and controlF. Research and developmentNon-Technical Department:- A. Administration B. Clerical 45. DUTIES AND RESPONSIBILITIES:- Technical Staff:- A. Operators/Technicians:- 1. Carry out the work as per the instruction and job allocation. 2. In process inspection wherever applicable. B. Maintenance in charge:- 1. Planning of preventing maintenance. 2. Attending breaks down maintenance. 3. Taking corrective action for reduce break down. 4. Planning spares and raising purchase intend. 5. Maintaining the quality record.SHARED VALUE:- There are values shares by the members of the organization. It is the super ordinategoal that is centrally responsible for providing a core mission to the organization, Used as anumbrella, which embraces all the other managerial activities. In short it says what does theorganization stands for and what is believes in. A devoted and sincere contribution to themankind through the various business activities of the company and compromise to thequality.1. Continues growth is the main force behind the achievement of S.H.S.S.Kltd.2.Customer satisfaction through quality services.3. Quick decision and execution with speed. 46. SWOT ANNALYSIS OF THE COMPANY:-STRENGHTS:- Produces good quality of sugar. Its near the river of the Vedganga so there is availability ofthe sufficient water 47. RESEARCH ON FINANCIAL ANALYSIS 48. TITLE OF THE PROJECT 49. TITLE OF THE PROJECT Industrial growth expansion, modernization, computerization, applicationof upgraded technology, prompt redemption of payment concerned with short and longorganizational economic strength even utilization of the appropriate opportunityarisen from market condition. In order to achieve the primary objective of business enterprise. The firmshould co-ordinate its monetary resources in association with the short and long termobligation the healthy and strong financial position can lead to many fruitful benefitsto organization. But on the contrary weaker and unhealthy financial position canresult into threats, consequently the problem of survival rises.Therefore, in order to forecast the future events and take remedial action thefinancial statement and ratio analyses should emphasize. Because, It analyses thestrength and weakness, thereby opportunity (SWOT) can be analyzed. 50. STATEMENT OF THE PROBLEMThe study is related to the financial analysis of The Halsidhanath Sahakari ShakarKarkhana Ltd. Nipani. It deals with the a study of financial performance based on RatioAnalysis at the sugar factory in recent years.OBJECTIVES 1. To study the profitability of Halsidhanath Sahakari Sakhar Karkhana Ltd. Nipani. 2. To study the liquidity position. 3. To study inventory turnover. 4. To study operating efficiency of Halsidhanath Sahakari Sakhar Karkhana Ltd Nipani. 5. To find activity turnover. 6. To gives the proper suggestions. DATA COLLECTION METHODThe following TWO methods have been used:-1. Primary Data2. Secondary Data 1) Primary Data:-The primary data includes the information which collected through the interview, observation and discussion with the financial managers and accountants. 51. 2) Secondary Data:-The secondary data includes the following material which is publishedby the Halsisdhanath Sahakari Sakhar Karkhana Ltd Nipani A. Annual reports of the year 2006-07, 2007-08, 2008-09. B. Different manual of the organization. C. Financial statements of the organization. D. And remaining which is necessary, got from the actual books which aremaintained by the organization.THEORETICAL FRAME WORKINTRODCTION:- Finance is life blood of the business. The financial management isthe study about the process of procuring and judicious use of financial resources isa view to maximize the value of the firm. There by the value of the owners i.e. the example of equity share holders in a company is maximized.The traditional view of financial management looks into the following function that a finance manager of a business firm will perform. 1. Arrangement of short-term and long-term funds from the financial institutions. 2. Mobilization of funds through financial instruments like equity shares, bondPreference shares, debentures etc. 3. Orientation of finance with the accounting function and compliance of legal provisions relating to funds procurement, use and distribution. With increasein complexity of modern business situation, the role of the financial manageris not just confirmed to procurement of funds, but his area of functioning is 52. extended to judicious and efficient use of funds available to the firm, Keeping in view the objectives of the firm and expectations of providers of funds.DIFINATION:-Financial Management has been defined differently by different scholars.1) Howard and Upton:-Financial Management is the application of the planning and control functionto the finance functions2) Bringham:- Financial Management is an area of financial decision making harmonizing,individual motives and enterprise goals MEANING OF RATIOS Financial Statement contains a wealth of information which, if properly analyzedand interpreted, can provide valuable insights into a firms performance and position.Analysis Soft financial statements is of interest to (short terms well as long term)investors, security analysts, managers, and others financial statement analysis may bedone for a variety of purpose, which may range from a simple analysis of the short-term liquidity position of the firm to a comprehensive assessment of the strengthsand weaknesses of the firm in various areas.The principal tool of financial statement analysis is financial ratio analysis . Anabsolute figure does not convey much meaning. Ti, there for, become necessary to 53. study a certain figure in relation to some other relevant figure to arrive at certain conclusione.g. If we give the figure of only gross profit earned by certain firm, we can not saywhether the gross profit is heavy, reasonable or sufficient for this purpose we must takeinto consideration the figure of sales. Thus, the gross profit to is required to be studiedin relation to the sales to decide the percentage of gross profit to sale on the basis ofpercentage we can conclude whether the gross profit earned is reasonable or otherwise.Thus the relationship between the two figures expressed mathematically is called a ratio. DEFINITIONS1. Robert Anthony One number expressed in terms of another2. The relationship between the two figures expressed mathematicallyis called a ratioOBJECTIVES OF RATIO ANALYSIS:- The study of financial statement of any corporate will help in knowing itspresent and future earning capacity. The study of financial resources can help in knowing whether a companycan pay its long-term or short-term liabilities. Its very use full to know how much working capital is employed in businessand same effectively used. Its use full to measure earning capacity and its comparison to other competitiveunits. 54. Help full to known marginal efficiency. Use full to future planning.INTERPRETATION OF RATIOS The benefit of the ratio analysis depends to great extent upon their correct interpretation. Interpretation requires considerable ability on the part of the analyst. He has to decide whether the relationship disclosed by the ratio issatisfactory or not. He has to base his decision on experience, or on comparisonmay be interpreted in any one of the following ways.1) BASED ON SINGLE RATIO AND GROUP RATIOS:-The interpretation may be based on individual ratio e.g. If current ratio persistently falls and goes below one, it can be interpreted as an indicationof short-term insolvency. However, one cannot get the position corrected bystudying individual ratio in isolation. It is therefore a common practice to studyand interpret a set of several related ratios e.g. for short-term solvency both theratios, whose significance is not fully understood , are made more meaningfulby the computing and study of additional relevant ratios.2) COMPARISON OVERTIME:-Ratio analysis is primarily useful for studying trends, indicatingrise, decline or stability over a period of time. For this purpose, ratios by themselvesare of no particular significance. For reveling such trends, the same ratio or a groupof ratios is studied over period of years. Thus the movements in the ratios, ratherthan the ratios themselves, are important. 55. 3) INTER-FIRM COMPARISON:-Ratios of undertakings are compared with the respectiveratios of other firm in the same industry and with the industry on averageAn immense benefit is likely to from such comparison as the concerns similarlysituated are as a matter of fact , to sail in the same boat. PROCEDURE OF ANALYSIS:-First or all the depth, object and extent of analysis must bedetermined, so that necessary information can collected.The analysis is required to go through various financial statementsof the business and collect other required information from the management.The analysis is required to rearrange the data given in the financialstatements in a manner, which will help the to analysis the statements easily andconveniently.After analyzing the statement the interpretation is made and the conclusions are drawn. TYPES OF RATIOS:- Classification of ratios is done in two ways. A. According to nature of items. B. According to purpose of the function. 56. A) According to nature of items:-1) Balance Sheet Ratios:- The ratios exhibiting the relationship between two item or groupof items in the balance sheet e.r. Relation between current Assets and CurrentLiabilities.2) Revenue Statement or Profit and loss account ratios:- The ratios disclosing the relationship between two items or groupof items in the profit and loss account it. Relationship between Sales and Gross profit.3) Inter Statement or Composite Ratio:-The ratios indicating the relationship of certain items in the balance sheet with some figures in the revenue statements i.e. Net Profit and Capital or Sales and Fixed Assets.B) Functional Classification:- 57. Liquidity Ratios;- These ratios measure the liquid position of the enterprise i.e.whether the current assets to pay current liabilities as and when they mature. Thus,these ratios indicates short-term solvency of the businessLeverage Ratios ;- They indicate the relative use of debt and equity in financing assetsof the firm. The extent, to which the practice of trading on equity can be carriedon safety, can be known through these ratios.Activity Ratios:- These ratios measure the efficiency in the employment of funds inthe business operations. They respect the companys level of activities in relationto its turnover.Profitability Ratios:- There ratios measure overall performance. And profits earningCapacity of the business. They reveal the effect of the business transaction onthe profit position of the enterprise. 58. PROFITABILITY RATIO:-1) Gross Profit Ratio:- This ratio reflects the efficiency with which the management produces each unit product. The ratio is calculated as under:Gross Profit Ratio=Profit SalesIt is the ratio which is most commonly employed by accountantsfor comparing the earnings of business for one period with those of other or earningsof one concern with of another in the same industry.It indicates the degree to which selling prices goods per unit maydecline without in losses on operations for the firm.Net Profit Ratio:- Net Profit is that proportion of net sales which remains to the ownersor the shareholders after all costs. Charges and expenses including income-tax havebeen deducted. It is calculated as under. 59. Net profit (after tax)Sales It differs from the ratio of operating profit is to net sales in as muchas it is calculated after adding non-operating incomes, like interest, dividends oninvestment etc. To operating profit and deducting non-operating expenses suchas loss on sale of old assets, provisions for legal damages etc. from such profits.LIQUIDITY/SOLVENCY RATIO:- 1) Current Ratio or working capital Ratio or 2:1 Ratio It is a ratio of current assets to current liabilities. The ratio iscalculated by dividing the current assets by the current liabilities. Current AssetsCurrent liabilitiesCertain authorities have suggested that in order to ensure solvency of a concern.Current assets should be at least twice the liabilities and therefore. his ration isknown as 2:1 ratio. 60. 2) Liquid Ratio or Acid Test Ratio or Quick Ratio:-The current Ratio fails to serve as a realistic guide to the solvencyof the concern, as the major portion on the current assets may comprise of suchassets which cannot be converted immediately cash (e.g. stock) to meet theimmediate liabilities. It this ratio is 1:1, it is considered that all claims will be met whenthey arise.Quick / Liquid Assets Current liabilitiesACTIVITY RATIO 1) Inventory Turnover Ratio:-The term Inventory Turnover refers to the number of times in a year inventories are sold and replaced. Cost of Goods Sold or salesAverage Inventory at cost 61. It is Indication of the velocity with which merchandize moves through the business . This is a test of inventory to discover possible trouble in the form of over stocking or over valuation. It assists the financial manager in evaluating inventory policy.2) Operating Ratio:- The ratio shows the percentage of net sales i.e. observed by thecost of goods sold operating. Naturally higher the ratio, the less favorable it is.Because it would leave a small margin to meet interest, dividends and othercorporate needs.Cost Goods Sold + Operating Expenses Net Sales3) Fixed Assets Turnover Ratio:- The ratio is arrived as under:Sales Net Fixed Assets 62. The ratio measures the efficiency in the utilization of fixed assets. This ratio indicates whether the fixed assets are being fully unitized A high ratio is an index of the vestment in fixed asset. Normally standard ratio taken as five times.4) Total Assets Turnover Ratio:- The ratio is arrived at by dividing sales by the total assets i.e.SalesTotal AssetsThe ratio indicates the sales generated per rupee of investment intotal assets. Thus, it aims to point out the efficiency or inefficiency in the used oftotal assets or capital employed. In crease in ratio indicates that more revenue isgenerated per rupee of total investment in assets.LEAVERGE RATIO 1) Debt Equity Ratio:- It measure of the relative claims of creditors and owners againstthe assets of the firm. 63. Total DebtsNet worth owners EquityThe term total debt includes all debts i. e. long term, short term mortgages.Bills, debentures etc. whereas the term net worth means equity share capital,reserves and surplus i.e. proprietors. Funds or equity 1:1 ratio is acceptable. 2) Fixed Assets to worth Ratio:-Fixed assetsNet worth It indicates that the company has used short term funds for acquiring fixed assets, which policy is not desirable. To the extent fixed assets exceed the amount of capital and reserves, the working capital are depleted . When the amount of proprietors fund exceeds the value of fixed Assets i.e. when the percentage is less than 100, a part of the working capital is supplies by the shareholders. Provided that there are no other non-current assets. 64. DATA ANALIYSIS AND INTERPRETATION 65. 1) PROFITABILITY RATIO:-Gross Profit Gross Profit Ratio =X 100Sales Gross Profit:- YearGross Profit 2006-073,79,03,469.812007-08 6,09,91,621.572008-09 5,44,14,256.14 Sales:- YearSales 2006-07337985566.072007-08 349546301.042008-09 430543494.122006-07 Gross profit ratio3,79,03,469.81= *100 =11.2% 337985566.072007-08 Gross profit ratio 6,09,91,621.57 = *100=17.44% 349546301.04 66. 2008-09Gross profit ratio5,44,14,256.14 =*100=12.63% 430543494.1220.00%18.00%16.00%14.00%12.00% Gross-Profit10.00% Gross-Profit2 8.00% Gross-Profit3 6.00% 4.00% 2.00% 0.00% 2006-07 2007-08 2008-09INTERPRETATION:- The Gross-Profit Margin ratio of SHSSKL has ups and down in these three yearsyear period. The high Gross-Profit Margin ratio implies that the cost of production. Of thefirm is relatively low and low gross profit margin ratio implies that the cost of production Of the firm is relatively high. The Gross-Profit ratio of SHSSKL is 11.2%, 17.44%and 12.63% for the year 2006-07, 2007-08, and 2008-09 respectively. 67. INFERENCE:- From the above calculation and bar diagram I conclude that the SHSSKL has the mixed trend in the gross profit ratio. In the year 2006-07 the firms ratio is decreasedto 11.12% it is because of the increase in raw material cost i.e. sugarcane. B) Net Profit Margin Ratio:- Net ProfitNet Profit Ratio =X 100SalesNet-Profit:-Year Net-Profit2006-07 11,79,916.792007-08 21,78,816.102008-09 16,53,143.88 Net-Sales:- Year Sales 2006-07 337985566.07 2007-08 349546301.04 2008-09 430543494.12 68. 2006-2007 Net Profit Ratio 11, 79, 916. 79= X 100 = 0.35% 337985566.072007-2008 Net Profit Ratio21,87,816.10=X 100= 0.62%349546301.04 2008-2009Net Profit Ratio16,53,143.88=X 100= 0. 38%430543494.12 69. 0.70% 0.60% 0.50% 0.40% Net-profit ratio 0.30% Net-profit ratio2 Net-profit ratio3 0.20% 0.10% 0.00%2006-072007-082008-09INTERPRETATION The high net profit margin ratio ensures adequate return to the owners The SHSSKLhas the net profit ratio s are 0.32, 0.65 and 0.38 for year 2006-07, 2007-08 and 2008-09respectively. 70. INFERENCE From the calculation we may conclude that the SHSSKL has the very low net profit margin ratio in the year 2006-07.LIQUIDITY RATIO:- CURRENT RATIO:- Current Ratio =Current AssetsCurrent Liabilities CURRENT ASSETS:- YearCurrent Assets2006-07837912823.462007-08818669121.09 2008-09 1119942805.61CURRENT LIABILITIES:-Year Current Liabilities 2006-07 623087336.032007-08592357975.832008-091165767257.07 71. 2006-07 837912823.46 Current Ratio = = 1.34623087336.032007-081119942805.61Current Ratio == 1.382008-09 16, 37, 16,627.50Current Ratio == 0.96 1165767257.07 72. 1.61.41.2 1Current-Ratio0.8Current-Ratio20.6 Current-Ratio30.40.2 0 2006-07 2007-08 2008-09 INTERPRETATION:- The current ratios are ups and down over the three year financial year. Theseratios and are relatively lesser than the banker rule of thumb or arbitrary standard of theliquidity of the firm i. e.,2:1 The calculated ratios indicate the SHSSKL is not liquid and not has the abilityto meet its current obligations in time. The ratio are 1.34,1.38 , and 0.96 for the yearsof 2006-07, 2007-08, 2008-09.INFERENCE:-From the above calculation I conclude that the SHSSKL has low currentratios, which indicates lower liquidity position. Because of heavy day to day expensesfor this, it should try to maximize the ratios, which will not affect to the organization. 73. LIQUID RATIO:-LIQUID ASSETS:-Liquid Assets= Current Assets-Stock + Other AssetsYearCurrent Assets _ Stock+ Other= Liquid Assets Assets2006-07 837912823.46 378981986.28458930837.182007-08 818669121.09349800446.19 468868980.09 2008-09 1119942805.61360415306.81 759527498.08LIQUID LIABILITIES:-YearCurrent Liabilities _ Bank-overdraft =Liquid-Liabilities2006-07 623087336.03 178640.62 622908695.41 2007-08592357975.83 460044.62 591897931.21 2008-091165767257.07101332.621165665924.45 74. LIQUID RATIO:- Liquid Assets = Liquid-Liabilities2006-2007 Liquid -Ratio458930837.18= = 0.74:1622908695.412007-2008 Liquid -Ratio468868980.09= = 0.08:1591897931.21 2008-2009Liquid -Ratio759527498.08= = 0. 65:11165665924.45 75. 0.80.70.60.5 Liquid_Ratio0.4 Liquid_Ratio20.3Liquid_Ratio30.20.1 02006-072007-08 2008-09INTERPRETATION:-Usually, a high acid test ratio is an indication of that firms better liquidityposition. The SHSSKL acid test ratios are lower than normal standard (1:1) .Theseliquid assets are not sufficient to provide a cover to the current liabilities. The liquidratio of the firm are 0.74, 0.08 and 0.65. for the years of 2006-07, 2007-08 and2008-09. respectively. 76. INFERENCE:-From the above calculation, the conclusion is that the SHSSKL not has sufficient funds to meet its current obligation at all times.NET-WORKING CAPTIAL RATIO:-Net-Working capital=Net-AssetsNet-Working capital:-YearNet-Working capital 2006-07276971487.58 2007-08249718453.582008-09 290597788.59 77. Net-Assets:- YearNet-Assets2006-0784613436.87 2007-08 113224518.4 2008-09 126763169.4 2006-2007 Net-Working capital Ratio 276971487.58==3.27 84613436.87 2007-2008Net-Working capital Ratio249718453.58== 2.20 113224518.42008-2009Net-Working capital Ratio290597788.59 = = 2.29 126763169.4 78. 3.5 32.5 2 Net-Working capital Ratio1.5Net-Working capital Ratio2 Net-Working capital Ratio3 10.5 02006-07 2007-08 2008-09CASH RATIO:- Cash=Current-Liabilities CURRENT LIABILITIES:- YearCurrent Liabilities2006-07623087336.03 2007-08 592357975.832008-091165767257.07 79. Cash:- Year Cash 2006-07 3565710.262007-086735571.442008-0961719589.852006-2007 Cash-Ratio 3565710.26 = =0.0057623087336.032007-2008Cash-Ratio 6735571.44 = = 0.0113592357975.83 2008-2009 Cash-Ratio 61719589.85= = 0.0529 1165767257.07 80. 0.06 0.05 0.04 Cash-Ratio 0.03 Cash-Ratio2 Cash-Ratio3 0.02 0.01 02006-072007-082008-09ACTIVITY RATIO:-SalesInventory Turn-Over ratio= Average Inventory Opening-Stock + Closing-StockAverage Inventory =2 81. Average Inventory:-YearAverage Inventory 2006-07324789674.5 2007-08342085995.02008-09 305513910.0 Sales:-YearSales2006-07337985566.072007-08349546301.042008-09430543494.122006-2007Inventory Turn-Over ratio 337985566.07=1.04=324789674.52007-2008 Inventory Turn-Over ratio 349546301.04= 1.02= 342085995.02008-2009 Inventory Turn-Over ratio430543494.12= = 1.40305513910.0 82. 1.61.41.2 1Inventory Turn-Over ratio0.8Inventory Turn-Over ratio20.6 Inventory Turn-Over ratio30.40.2 0 2006-07 2007-08 2008-09NET ASSETS TURN-OVER RATIO:- Sales = Net-Assets Sales:- Year Sales 2006-07 337985566.07 2007-08 349546301.04 2008-09 430543494.12 83. Net-Assets:- Year Net-Assets2006-07 84613436.87 2007-08113224518.4 2008-09126763169.4 2006-2007NET ASSETS TURN-OVERRATIO 337985566.07 =3.99= 84613436.87 2007-2008NET ASSETS TURN-OVERRATIO349546301.04 = 3.08=113224518.42008-2009 NET ASSETS TURN-OVERRATIO 430543494.12 = = 3.39 126763169.4 84. 4.5 43.5 32.5NET ASSETS TURN-OVER RATIO 2 NET ASSETS TURN-OVER RATIO2 NET ASSETS TURN-OVER RATIO31.5 10.5 02006-072007-08 2008-09 FIXED ASSETS TURN-OVER RATIO:- Sales = Fixed-Assets Sales:- Year Sales 2006-07 337985566.072007-08349546301.042008-09430543494.12 85. Fixed-Assets:-Year Fixed-Assets 2006-07 363487965.662007-08371470849.662008-09647506096.70 2006-2007FIXED ASSETS TURN-OVERRATIO337985566.07=0.92 =363487965.66 2007-2008FIXED ASSETS TURN-OVERRATIO349546301.04=0.94 = 371470849.66 2008-2009FIXED ASSETS TURN-OVERRATIO 430543494.12=0.66==647506096.70 86. 10.90.80.70.6FIXED ASSETS TURN-OVER RATIO0.5FIXED ASSETS TURN-OVER0.4RATIO2 FIXED ASSETS TURN-OVER0.3 RATIO30.20.1 02006-072007-08 2008-09WORKING CAPTIAL TURN-OVER RATIO:- Sales = Net Working capital Sales:- YearSales 2006-07337985566.072007-08 349546301.042008-09 430543494.12 87. Net-Working capital:- YearNet-Working capital2006-07276971487.582007-08249718453.58 2008-09 290597788.592006-2007 WORKING CAPTIAL TURN-OVER RATIO337985566.07= =1.22276971487.582007-2008 WORKING CAPTIAL TURN-OVER RATIO349546301.04= =1.39249718453.58 2008-2009WORKING CAPTIAL TURN-OVER RATIO 430543494.12= = =1.48 290597788.59 88. 1.61.41.2 1 WORKING CAPTIAL TURN-OVER RATIO0.8WORKING CAPTIAL TURN-OVER RATIO20.6 WORKING CAPTIAL TURN-OVER RATIO30.40.2 02006-07 2007-08 2008-09CURRENT ASSETS TURN-OVER RATIO:- Sales=Current Assets Sales:- Year Sales 2006-07 337985566.072007-08349546301.042008-09430543494.12 89. CURRENT ASSETS:- YearCurrent Assets 2006-07 837912823.462007-08818669121.092008-091119942805.612006-2007 CURRENT ASSETS TURN-OVER RATIO337985566.07 ==0.40837912823.462007-2008 CURRENT ASSETS TURN-OVER RATIO 349546301.04 ==0.42818669121.09 2008-2009CURRENT ASSETS TURN-OVER RATIO430543494.12= = =0.381119942805.61 90. 0.430.420.41CURRENT ASSETS TURN-OVER 0.4RATIOCURRENT ASSETS TURN-OVER0.39RATIO2CURRENT ASSETS TURN-OVER0.38RATIO30.370.362006-07 2007-08 2008-09LEVERAGE RATIO:- Debt-Equity Ratio:- Total-Debt=Net-Worth TOTAL-DEBT:- Year TOTAL-DEBT 2006-0785915406.30 2007-0826729775.002008-09 6317241.93 91. NET-WORTH :-YearNET-WORTH2006-07 39462065.12007-0831935186.00 2008-0929553078.56*NET-WORTH = Share Capital + Reserve Fund Accumulated loss. 2006-2007Debt-Equity Ratio85915406.30=39462065.1 =2.17 2007-2008Debt-Equity Ratio 26729775.00= 31935186.00 =0.83 2008-2009Debt-Equity Ratio 6317241.93= = =0.21 29553078.56 92. 2.5 21.5 Debt-Equity Ratio Debt-Equity Ratio2 1 Debt-Equity Ratio30.5 02006-072007-08 2008-09 CAPTIL EMPOLYEED RATIO:-Net-Assets= Net-WorthNet-Assets:- YearNet-Assets2006-0784613436.87 2007-08 113224518.4 2008-09 126763169.4 93. NET-WORTH :- YearNET-WORTH 2006-0739462065.12007-0831935186.002008-0929553078.562006-2007CAPTIL EMPOLYEED RATIO 84613436.87 = 39462065.1 =2.142007-2008 CAPTIL EMPOLYEED RATIO113224518.4 =31935186.00 =3.542008-2009 CAPTIL EMPOLYEED RATIO126763169.4===4.2829553078.56 94. 4.543.532.5CAPTIL EMPOLYEED RATIO2CAPTIL EMPOLYEED RATIO2 CAPTIL EMPOLYEED RATIO31.510.502006-072007-082008-09INTERPRETATION:-The higher ratio indicates the higher performance. Which by means ofutilization of resources at optimal level. In the SHSSKL the efficiency capital employedin the firm is move from lower to the upper level from the year 2006-07, 2007-08,2008-09, with the ratio of 2.14, 3.54, 4.28. Respectively.INFERENCE:-