LOVELY PROFESSIONAL UNIVERSITY DEPARTMENT OF MANAGEMENT

REPORT ON FINANCIAL STATEMENT ANALYSIS OF THE SUKHJIT STARCH & CHEMICAL LIMITED

Submitted to Lovely Professional University

In partial fulfillment of the Requirements for the award of Degree of Master of Business Administration
Submitted by: Amandeep Kaur 10800146

DEPARTMENT OF MANAGEMENT LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA 2009-2010
ACKNOWLEDGEMENT
I acknowledge the almighty God, my good shepherd who has never failed me, who extended his helping hand whenever I was in need. It gives me immense pleasure to express whole hearted feelings of gratitude towards my guide Mr.Amit Dutt, lecturer, Lovely chool of !ducation, "hagwara for his scholarly guidance, continuous interest and valua#le suggestions with which he endowed me throughout my research work. I am grateful to his for directing me to do sincere and authentic work. I am thankful to his for devoting his precious time and his continuous encouragement during all pleasant and tough time. I am highly o#liged to Mr. kapoor ukh$it tarch % &hemicals Ltd. making me familiar with real research work and for providing conductive environment to carry out research work. I cannot measure the contri#ution of my loving parents for their encouragement, guidance, constructive and helpful criticism and constant inspiration. I now take this opportunity to acknowledge the un#ounded support, love and encouraging inspiration of my friend, sister, #rother and parents who have propped me and #uoyed me with more confidence and without whom the completion of this pro$ect would have remained a dream.

Amande ep Kaur

PREFACE
It has been rightly said that practical experience is far better and closer to the real world than mere theoretical exposure. The practical experience helps the students to view the real business world closely, which in turn widely influences their perceptions, arguments and their understanding of the real situation. The phenomenon of creation is a long process requiring time, energy and dedication as well as skill and experience of those people engaged in the task, ultimately in the outcome as the final form of embodiment of the creator s vision. !esearch work constitutes the backbone of any management education programme. " management student has to do research work quiet frequently during his entire span. The research work entitled #$inancial %tatement "nalysis of the %ukh&it %tarch ' (hemicals )td. under the supervision of *r. +apoor aims to study the short term and )ong term financial position of company applying ,arious practical financial tool such as (omparative statements and (ommon si-e balance sheet. *." is the stepping/stone to management care in order to reach practical and concrete results.

List of Contents
%r.1o. 1. 2. 0. 7. 4. 3. 5. 2articulars Introduction of $inancial %tatement "nalysis Introduction of the (ompany 6b&ective of the study !esearch *ethodology $inancial analysis of the (ompany (onclusion .ibliography 2age 1o. 3/14 15/01 02/00 07/03 05/30 37/34 33/35

Introduction of financial statement Analysis

FINANCIAL STATEMENT ANALYSIS

MEANING OF FINANCE:$inance means provision of money at the time when it is required. In simple words, finance means any value in terms of money and all financial resources covered under it. $inance is so indispensable today that it said to be the lifeblood of an enterprise. 8ithout finance, no enterprise can possibly accomplish its ob&ectives. It concerns with the application of skills in manipulations, use and control of money. $inance function may be defined as procurement of funds and their effective utili-ation. "ccording to 9uthmann and :ougall, #finance can be broadly defined as the activity concerned with the planning, raising, controlling and administering and disbursing funds by privately owned business units operating in non/financial fields used in business.; "ccording to 8heeler, # that business activity which is concerned with the acquisition and conservation of capital funds in meeting the financial needs and overall ob&ectives of business enterprise.;

MEANING OF FINANCIAL STATEMENTS

$inancial statement refers to the process of financial strength and weakness of affirm by establishing relationship between the items of the balance sheet and 2<) a<c and other operated data. Its purpose is to convey an understanding of some financial aspects of a business firm. $inancial statements are the outcome of summari-ing process of accounting. $inancial statements are used for the purpose of decision/making. " financial statement is a collection of data organi-ed according to logical and consistent accounting procedure. $inancial statements are prepared for the purpose of presenting a periodical review or report on the progress by the management and deals with=

>a? %tatus of investments in the business and >b? The results achieved during a period under review. The preparation of financial statements is the responsibility of top management. $inancial statements are also called financial reports. The profit and loss account and balance sheet are indicators of two significant factors profitability and financial soundness.

DEFINATION OF FINANCIAL STATEMENTS

"ccording to @ohn n *yer,; The financial statements provide a summary of the business enterprise the balance sheet reflecting the assets, liabilities and capital as on certain date and the income statement showing the results of operation during a certain period.;

PURPOSE OF FINANCIAL STATEMENTS

The ob&ective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions. These should be understandable, relevant, reliable and comparable. !eported assets, liabilities and equity are directly related to an organisation s financial position. !eported income and expenses are directly related to an organisation s financial performance. $inancial statements are intended to be understandable by readers who have a reasonable knowledge of business and economic activities and accounting and who are willing to study the information diligently.

FINANCIAL ANALYSIS
$inancial analysis refers to an assessment of the viability, stability and profitability of a business. $inancial statements analysis is an attempt to determine the significance and meaning of the financial statement data, so that forecasting may be made of future earnings, ability to pay interest and ability to repay debt amount. "nalysis of statements means such a treatment of the information contained in the two statements as to afford a full diagnosis of the profitability and financial soundness of the firm concerned. $inancial analysis is the #process of identifying the financial strength and weakness of the firm by profit and loss account properly establishing relationship between the items of balance sheet and profit and loss account.; 5

"ccording to *etcalf and Titard, #is a process of evaluating the relationship between component parts of a financial statement to obtain a better understanding of a firm s position and performance.; *anagement should be particularly interested in knowing the financial strengths of the firm to make their best use and to be able to spot/out financial weakness of the firm to take suitable actions. Anderstanding the past is pre/requisits for anticipating the future. The analysis and interpretations of the financial statements is the essence to bring out the mystery behind the figures in the financial statements. Interpretation analysis has no value. "nalysis and interpretation acts as a bridge between the art of recording financial information and act of using this information. It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements and other reports. These reports are usually presented to top management as one of their basis in making business decisions. .ased on these reports management may=/ >a? (ontinue or discontinue its main operation or parts of its business. >b? *ake or purchase certain materials in the manufacturer of its product. >c? "cquire or rent< lease certain machineries and equipments in the production of its goods. >d? Issue stocks or negotiate for a bank loan to increase its working capital.

GOALS
$inancial analysts often assess the firm s= 1. 2rofitability/ its ability to earn income and sustain growth in both short/term and long/term. " company s degree of profitability is usually based on the income statement, which reports on the company s results of operations. 2. %olvency/ its ability to pay its obligation to debtors and other third parties in the long/term. 0. )iquidity/ its ability to maintain positive cash flow, while satisfy immediate obligations. 7. %tability/ the firm s ability to remain in business in the long run, without having to sustain significant losses in the conduct of its business. "ssessing a company s stability requires the use of both the income statement and balance sheet as well as other financial and non/financial indicators.

IMPORTANCE OF FINANCIAL STATEMENTS ANALYSIS

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$inancial statements analysis is to understand and diagnose the information contained in financial statement with a view to &udge the profitability and financial soundness of the firm, and to make forecast about future prospects of the firm. The purpose of analysis depends upon the person interested in such analysis and his ob&ect. The following purpose of financial statements analysis may be stated to bring out the significance of analysis=/ i? To access the earning capacity or profitability of the firm. ii? To access the operational efficiency and managerial effectiveness. iii? To identify the reasons for change in profitability and financial position of the firm. iv?To access the short term as well as long term solvency position of the firm. v? To make inter/firm comparison. vi? To help in decision making and control. vii? To access the progress of the firm over a period of time. viii? To make forecasts about future prospects of the firm. ix? To guide or determine the dividend action. x? To provide important information for granting credit.

PROCEDURE OF FINANCIAL STATEMENTS ANALYSIS

.roadly speaking there are three steps involved in the analysis of financial statements. These are= >i? selection, >ii? classification, and >iii? interpretation. The first step involves selection of information >data? relevant to the purpose of analysis of financial statements. The second step involved is the methodical classification of the data and the third step includes drawing of interpretation and conclusion. The following procedure is adopted for the analysis and interpretation of financial statements= >1? The analyst should acquaint himself with the principles and postulates of accounting. Ce should know the plans and policies of the management so that he may be able to find out whether these plans are properly executed or not. >2? The extent of analysis should be determined so that the sphere of work may be decided. If the aim is to find out the earning capacity of the enterprise then analysis of income statement will be undertaken. 6n the other hand, if financial position is to be studied then balance sheet analysis will be necessary.

>0?

The financial data given in the statements should be re/organised and re/arranged. It will involve the grouping of similar data under same heads, breaking down of individual components of statements according to nature. The data is reduced to a standard form.

>7? >4? >3?

" relationship is established among financial statements with the help of tools and techniques of analysis such as ratios, trends, common si-e, funds flow etc. The information is interpreted in a simple and understandable way. The significance and utility of financial data is explained for helping decision taking. The conclusions drawn from interpretation are presented to the management in the form of reports.

TYPES OF FINANCIAL ANALYSIS

8e can classify various types of financial analysis into different categories depending upon=/ 1. 6n the basis of material. >a? External analysis >b? Internal analysis 2. on the basis of modus operandi. >a? Cori-ontal analysis >b? ,ertical analysis

1. ON THE BASIS OF MATERIAL

(a) External analysis- This analysis is done by the outsiders who does not have access to the detail internal accounting records of firm. This analysis serves only a limited purpose. The recent changes in the government regulations requiring business firms to make available more detailed information to the public through audited published accounts have considerably improve the position of external analysis. (b) Internal analysis- This analysis conducted by person who has access the internal accounting records of business firm is known as internal analysis. %uch an analysis can be performed by executives and employees of the organisation as well as government agencies which have statutory powers vested in them.

2. ON THE BASIS OF MODUS OPERANDI

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>a? Cori-ontal analysis/ It refers to the comparison of financial data of a company for several years. The figures of this type of analysis are presented hori-ontally over a number of columns. The figures of various years are compared with standard or base year. This type of analysis is also called dynamic analysis, as it based on the data from year to year rather than on data of any one year. >b? ,ertical analysis/ It refers to the study of relationship of the various items in the financial statement of one accounting period. In this type of financial analysis the figures of the years are compared with base selected from the same year s statement. It is also know as %tatic analysis.

TOOLS &TECHNIQUES OF FINANCIAL ANALYSIS

" financial analyst can adopt following tools for the analysis of financial statement. There are a number of tools for studying the relationship between different statements. (omparative statement analysis (ommon/ si-e statement analysis Trend analysis

COMPARATIVE STATEMENT ANALYSIS

(omparative statement analysis is the statement of the financial position at different periods of time. The elements of financial position are shown in a comparative form so as to give an idea of financial position at two or more periods. 8hile preparing financial statement for the purpose of financial analysis, it must always kept in mind that the techniques , procedures and principles followed in the collection, recording and presentation of accounting should not materially differ over the period for which the business history is studied. "ny material change in the techniques, procedures and principles will render these statements to be useful and insignificant tool of financial analysis. The financial statement of two or more firms can be done if these are of some age, uniform si-e and having the same accounting principles. $inancial analysis of two or more firms is known as inter/firm comparison. The comparative statements may show= i? "bsolute figures ii? (hange in absolute figures i.e increase or decrease in absolute figures.

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iii? "bsolute data in form of percentages. iv? Increase or decrease in term of percentages.

TYPES OF COMPAPATIVE STATEMENTS

The comparative statements comprises of=/ 1. (omparative balance sheet 2. (omparative income statement or profit and loss account

1. COMPARATIVE BALANCE SHEET

The effects of all business transactions are visible in the form of increase and decrease in the value of various assets, liabilities and capital fund. These changes can be studied by comparing the opening and closing balance sheets of the same enterprise. The changes in periodic balance sheet items reflect the conduct of a business. The comparative balance sheet has two columns for the data of original balance sheets. " third column is used to show increase in figures. The fourth column may be added for giving percentages of increases or decreases. 8hile interpreting the statement, the interpreter is expected to study the following aspects=/ (urrent financial position )ong term financial position 2rofitability of the concern

"ccording to 2rof. $oul +ey, #the comparative balance sheet analysis is the study of the same items and computed items in two or more balance sheets of same enterprise on the different dates.;

2. COMPARATIVE INCOME STATEMENT

The income statement summaries the results of the operations of business concern transacted during a define period of time and conveys the amount of profit<loss earned by the concern. It shows an idea of the progress of business over a period of time. " comparative study of 2<) a<c for more than one year may enable us to have a definite knowledge about the progress of business. The changes in absolute data in money values and percentages can be determined to analy-e the profitability of the firm. The analysis and interpretation of income statement will involve the following steps=/ The increase or decrease in sales should be compared with the increase or decrease in cost of goods sold. "n increase in sales will not always mean an increase in profit. The 12

profitability will increase will improve if increase in sales is more than the increase in cost of goods sold. The second step of analysis should be the study of operational profits. The operating expenses such as office and administrative expenses, selling and distribution expenses should be deducted from gross profit to find out operating profits. The increase or decrease in net profit will give an idea about the overall profitability of concern. 1on/ operating expenses such as interest paid, losses from sales of assets, writing off of deferred expenses, payment of tax etc. decrease the figure of operating profit.

COMMON SIZE STATEMENT ANALYSIS

In the common si-e statement analysis of financial statements, an items is used as a base value and all other accounts on the financial statement are compared to this base value. The figures are shown as percentages of total assets, total liabilities and total sales. 6n the balance sheet, total assets equal 1FFG and each asset is stated as a percentage of total assets. %imilarly, total liabilities and stockholder s equity are assigned 1FFG with a given liability or equity account stated as a percentage of total liabilities and stockholder s equity. 6n the income statement, 1FFG is assigned to net sales, with all revenue and expense accounts then related to it.

TYPES OF COMMON SIZE STATEMENTS

The common si-e statement comprises=/ 1. (ommon si-e balance sheet 2. (ommon si-e income statement or profit ' loss account

1. COMMON SIZE BALANCE SHEET

" statement in which the balance sheet items are expressed the ratio of each liability to total liability is called common si-e balance sheet. The common si-e balance can be prepared by putting in the following steps=/ i? The total of assets and total of all liabilities are taken as 1FF. ii? The individual assets are expressed as a percentage to total assets that is 1FF and different liabilities are calculated in relation to total liabilities. 10

The common si-e balance sheet can be used to compare companies of different si-e. The comparison of figures in different periods is not useful because total figures may be affected by a number of factors.

2. COMMON SIZE INCOME STATEMENT

The items in the income statement are shown as a percentage of sales to show the relation of each item to the sales a significant relationship can be established between the items of income statement and the volume of sales. The increase in sales will certainly increase selling expenses and not administrative or financial expenses may go up. In case the sales are declining, the selling expenses should be reduced at once. %o, a relationship is established between sales and other items in income statement and this relationship is helpful in evaluating operational activities of the enterprise. The common si-e income statement can be prepared by putting in the following steps=/ i? "t first, total sales are taken to be 1FF. ii? The individual items of the income statement for e.g. cost of sales, operating expenses, non/ operating expenses, miscellaneous income etc. are shown as a percentage of the total sales 1FF. If the sales are increasing it will lead to increase it will lead to increase in selling distribution expenses. In simple words we can say that relationship between sales and each item of income statement is helpful in evaluating the operational activities.

TREND ANALYSIS
The financial statement may be analy-ed by computing trends of series of information. This method determines the direction upwards or downwards and involves the computation of the percentage relationship that each bears to the same item in base year. The figures of a base year are taken as 1FF and trend ratios for other year are calculated on the basis of base year. The analyst is able to see the trend of figures, whether upward or downward. Cowever, trend analysis is not calculated for all of the items in the financial statements. They are usually calculated only for ma&or items since the purpose is to highlight important changes.

LIMITATIONS OF FINANCIAL ANALYSIS

$inancial analysis is a powerful mechanism of determining financial strength and weakness of the firm. .ut, the analysis is based on the information available in the financial statements. The

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financial analyst has also to be careful about the impact of price level changes, window/dressing of financial statements, changes in accounting policies of a firm, accounting concepts and conventions, and personal &udgement etc. Thus the financial analysis suffers from serious which are as follows=/ 1. It is only a study of interim reports. >!eports between two balance sheet dates? 2. $inancial analysis is based upon only monetary information and non/ monetary factors are ignored. 0. It does not consider changes in the price levels. 7. "s the financial statements are prepared on the basis of a going concern, it does not give exact position. Thus, accounting concepts and conventions cause a serious limitation to financial analysis. 4. (hanges in the accounting procedure by a firm may often make financial analysis misleading. 3. "nalysis is only a means and not an end in itself. The analyst has to make interpretation and draw his own conclusions. :ifferent people may interpret the same analysis in the different ways.

ADVANTAGES OF FINANCIAL STATEMENT ANALYSIS

The various advantages of financial statements analysis are as follows=/ 1. The ma&or benefit is that the investors get enough idea about the investments of their funds in the specific company. 2. The regulatory authorities like International "ccounting %tandard .oard can ensure whether the company is following accounting standards or not. 0. $inancial statements analysis can help the government agencies to analy-e the taxation due to the company. 7. (ompany can analy-e its own performance over the period of time through financial statements analysis.

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Introduction of The Company

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GROUP HISTORY
"chieving success is something, which seems to be written on the charts of The %ukh&it %tarch ' (hemicals )td. 2hagwara. $ive decades ago, two young entrepreneurs spotted the immense chemical potential, of the humble mai-e. %o three people namely that is %h. B.K. SARDANA, Sh. SWADESH BHAGAT, Sh. B.D. SARADANA made plans to incorporate the company. "ll the three of them were the employees of The Jagjit Sugar Mill, Phagwara . They met, discussed and decided to incorporate the company under the name of The Sukhjit Starch &Chemicals Ltd. Ideally situated in 2hagwara >2un&ab? The Sukhjit Starch & Chemical Ltd. has grown in leaps ' bounds by &udicious ' innovative utili-ation of its unique tradition to meet the challenge of future. 15

$or the year the company was working as a private limited company, than from "pril 1, 1D77 the company was converted into Joint Stock Company . It was a medium scale unit, having a daily production capacity of 4 tones but now it has increased more than 0FFFF *.T. ' it is today conglomerate enterprise performing both at 1ational ' International levels. This group is managed by highly skilled ' capable professional person ' is handed by well/experienced board of directors. "t present Sh. I.K. SARADANA, its Managing Director manages the company. The company appears to be on the forefront of the starch industry in the country from the view point of productivity ' profitability. known companies. " double/pronged approach using the art of technology as well as exploiting indigenous potential is the philosophy of the organi-ation that has served it well. Hear of research ' careful co/ordination of methodology has resulted in qualitatively superior products manufactured by cost/effective production techniques. .eside this the company is also fulfilling social obligation by making contribution of various public charitable institution. It runs two auspicious under the names of Kanya Maha Vidhalya Senior Secondary School & Kamala Nehru College for Woman at plahi road Phagwara & a Kamala Nehru School is yet under construction. It has financed two water schemes for two villages at 1i-amabad under !ural :evelopment Scheme . )ast but not the least the company is also satisfying its shareholders ' is paying dividends for last 0F years with periodic bonus issues. The company s products are popular throughout the country ' abroad. It is leading *1( public sector unit ' it provides it s product to other well/

1B

PRESENT STATUS
1ame of the company / The %A+CI@T %T"!(C ' (CE*I(")% )td. 2C"98"!". Established In (ommencement of .usiness Installed (apacity / 1D70, 14 *arch / 1D70, 1 "pril / 71FFF *.T. >*etric Tone per Hear?

1D

2resent (apacity "nnual Turnover Export to (ountries %ector )ocation 9roup Industries .ranches of (ompany 2hone in 2hagwara

/ 0FFFF *.T. / 212.55 (rores / "ustralia, 1epal, .angladesh / 2ublic )imited (ompany In 2rivate sector / %arai !oad 2hagwara / %ukh&it 9roup of Industries. / 2hagwara, 1i-amabad, *alda. / F1B27/73BBFF

*anpower

/ 1 8orker 2 *anagerial %taff 0 "gents< :ealers 7 !egistered 6ffices

/ 1FFF / 1F / "ll 6ver India / 2hagwara

COMPANY INTRODUCTION
"chieving success is something, which seems to be written on the charts of The %ukh&it %tarch ' (hemicals )td. 2hagwara. $ive decades ago, two young entrepreneurs spotted the immense chemical potential, of the humble mai-e. %o three people namely that is %h. B.K. SARDANA, Sh. SWADESH BHAGAT, Sh. B.D. SARADANA made plans to incorporate the company. "ll the three of them were the

2F

employees of The Jagjit Sugar Mill, Phagwara . They met, discussed and decided to incorporate the company under the name of The Sukhjit Starch &Chemicals Ltd. Ideally situated in 2hagwara >2un&ab? The Sukhjit Starch & Chemical Ltd. has grown in leaps ' bounds by &udicious ' innovative utili-ation of its unique tradition to meet the challenge of future. $or the year the company was working as a private limited company, than from "pril 1, 1D77 the company was converted into Joint Stock Company . It was a medium scale unit, having a daily production capacity of 4 tones but now it has increased more than 0FFFF *.T. ' it is today conglomerate enterprise performing both at 1ational ' International levels. This group is managed by highly skilled ' capable professional person ' is handed by well/experienced board of directors. "t present Sh. I.K. SARADANA, its Managing Director manages the company. The company appears to be on the forefront of the starch industry in the country from the view point of productivity ' profitability. known companies. " double/pronged approach using the art of technology as well as exploiting indigenous potential is the philosophy of the organi-ation that has served it well. Hear of research ' careful co/ordination of methodology has resulted in qualitatively superior products manufactured by cost/effective production techniques. .eside this the company is also fulfilling social obligation by making contribution of various public charitable institution. It runs two auspicious under the names of Kanya Maha Vidhalya Senior Secondary School & Kamala Nehru College for Woman at plahi road Phagwara & a Kamala Nehru School is yet under construction. It has financed two water schemes for two villages at 1i-amabad under !ural :evelopment Scheme . The company s products are popular throughout the country ' abroad. It is leading *1( public sector unit ' it provides it s product to other well/

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)ast but not the least the company is also satisfying its shareholders ' is paying dividends for last 0F years with periodic bonus issues. They are the manufactures of the *ai-e %tarch, :extrose *onohydrous, "nhydrous, and %orbitol 5FG solution, )iquid 9lucose, Thin .oiling %tarching *ai-e 6il, *ai-e 6il (ake and (orn %teep %oils ' Cydrol.

Licensed Capacity *ai-e %tarch :extrose *onohydrate Cigh $ructose )iquid 9lucose *alta :extrose :extrose "nhydrous / 71FFF *.T. per annum / 74FF *.T. per annum / 4FFF *.T. per annum / 74FF *.T. per annum / 14FF *.T. per annum / 12FF *.T. per annum

The company sells its products to well known companies namely M/S Nestle India. . The company occupies a unique place ' en&oys excellent credit worthiness and goodwill amongst its creditor s, suppliers and bankers. The bankers have given high rating to the company and its health code has remained number one for the past many years. It has been en&oying excellent for the last three decades

Subsidiary Companies
The %ukh&it %tarch ' (hemicals )td. 2hagwara has three subsidiary companies which are as follow=/

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1. SCOTT INDUSTRIES Ltd. PHAGWARA

This company was incorporated on 6ctober B, 1DD5. It has paid up capital of !s.1, 4F, 17FFF as on march 01, 2FFF. 6ut of which !s.1 crore capitals are of %ukh&it %tarch ' (hemicals )td. This unit is meant for manufacturing and export of ready made garments. It has already established export market in many countries.

2. SUKHJIT FINANCE Ltd.

The company was incorporate $eb. 3, 1DD4 and is engaged in leasing and hire purchase business, due to adverse impact in business. Cowever, adverse impact in business the company has drastically cut down its operation

3. VIJOY STEEL and GENERAL MILLSCOMPANY Ltd.

The company is engaged in manufacturing activities and its machinery for chemical and process industries. The turnover this company was around !s.DF )akhs last year i.e. for the year ending 2FF5.

PRODUCT RANGE
They are the manufactures of the *"IIE %T"!(C TCI1 .6I)I19 %T"!(CE%

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:EJT!I1% 8CITE :EJT!I1% HE))68 *6:I$IE: %T"!(CE% 6JI:I%E: %T"!(CE% 2!E9ET"TI1IIE: %T"!(C )IKAI: 9)A(6%E *")T6 :EJT!I1 >)IKAI: ' 268:E!? :EJT!6%E "1CH:!6A% :EJT!6%E *616CH:!"TE: %6!.IT6) 5FG %6)ATI61 CI9C *")T6%E %H!A2 *"IIE 9)ATE1 *"IIE CA%+ $I1E *"IIE CA%+ >8ET? $I1E *"IIE CA%+ >:!H? *"IIE 6I) *"IIE 6I) ("+E (6!1 %TEE2 %6)I:% CH:!6)

Licensed Capacity *ai-e %tarch :extrose *onohydrate Cigh $ructose )iquid 9lucose *alta :extrose :extrose "nhydrous / 71FFF *.T. per annum / 74FF *.T. per annum / 4FFF *.T. per annum / 74FF *.T. per annum / 14FF *.T. per annum / 12FF *.T. per annum 27

The company sells its products to well known companies namely M/S Nestle India. . The company occupies a unique place ' en&oys excellent credit worthiness and goodwill amongst its creditor s, suppliers and bankers. The bankers have given high rating to the company and its health code has remained number one for the past many years. It has been en&oying excellent for the last three decades

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Milestones of the Company

1D77 1D73 1D75 1D34 1D3D 1D52 1D53 1DBF 1DB1 1DB2 1DB4 1DB5 1DD0 1DD4 1DDB 1DDD 2FF2 2FF2/F0 / (onversion into 2ublic (ompany / 2aid up (apital raised up to !s. 3 )akhs / 2aid up raised up to !s. D )akhs / *oderni-ation of 2lant by Importing Equipment from A.%." '9ermany. / %et up )iquid 9lucose 2lant. / (apital raised up to !s. 1B )akhs / (apital raised up to !s 23 )akhs by issuing bonus shares. / "cquisition of ,i&ol %teel ' 9eneral *ills. / (apital raised up to !s. 7B )akhs by issuing right shares to shareholders. / Issue of :ebentures by !s. 1 (rores. / %etup a similar unit at 1i-amabad. / %etup of :extrose *onohydrate 2lant. / %etup of %orbitol 2lant. / %etup of :extrose "nhydrate 2lant. / *oderni-ation ' Expansion of %tarch 2lant of 2hagwara. / *oderni-ation ' Expansion of %tarch 2lant at 1i-amabad. / 9ot the I%6 DFF1/2FFF certificate. / The (ompany started putting up a new unit at *alda in the state of 8est .engal. This unit %tarted commercial product on 4th @une 2FF2 2FF4/F3 / In its diversification and plans a company has started a new Anit at village .athu Tehsil Caroli :istt. Ana. The commercial 2roduction of this unit in @uly 2FF5 2FF5 2FFB / C.2. unit started commercial production on 21st @uly. / (ompany achieved recorded turnover of around !s. 2F (rores for this

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Hear 2FF5/FB. 1et profit exceeding of !s.2F (rores for year 2FF5/FB.

BOARD OF DIRECTORS
%h. ,.+. %ardana %h. I.+. %ardana %h. +.+. %ardana %h. %.*. @indal %h. ".+. %ardana %h. 1aresh %ardana %h. %.+. "nand %h. ,.2. +aparhi %h. %.(. @indal / (hairman / *anaging :irector / @oint *anaging :irector / Executive :irectors' %ecretary / 1on Executive :irector / 1on Executive :irector / Independent :irector / Independent :irector / Independent :irector

Management
*anagement and .oard of :irectors control the overall work of the company. "ll the directors have life long experienced and sound business background.

1. Managing Director :Sh. I.K. SARDANA &oined this company in 1D34 as management trainee. "fter working as management trainee officer of special duty, personnel manager, (ommercial manager and 9eneral *anager he took charge of the *anaging :irector in 1D55. Ce also stayed as president of all India %tarch manufacture "ssociation, *umbai. Ce is also holding the position of president ' the managing committee.

2. Joint Managing Director:Sh. K.K. SARDANA &oined the company as a @oint *anaging :irector in 1D51, after working as management trainee officer on %pecial :uty, 2ersonnel and "dministration manager. Ce

25

looks after moderni-ation and expansion of the company and also concerned with the purchase of ma&or machinery and other development activities of the company. Ce is also the president of *anaging :irector of "rya *odel %chool at 2hagwara and the member of board of director of %ukh&it $inance )td. and %cott Industry )td.

3. Executive Director:Sh.S.M. JINDAL &oined the company in 1D3F as the board of director. Ce is also the manager of managing committee of S.D. KANYA MAHA VIDYALAYA SENIOR SECONDARY SCHOOL PHAGWARA. Ce is also a member of board of director of %ukh&it $inance )td. and %cott Industry )td.

3. Vice President (Fin.)

Sh. M.G. SHARMA &oined the company in 1DB1 as $inance and "ccount officer. Ce is looking after the short and long term financial management of the company. Ce is the member of the board of director of %ukh&it $inance )td. Ce looks the direct and indirect taxes of the company. 4. Vice President (P&A) (Retd) Major V.K. SURI (Admn.) >*.". )). ' :iploma in personnel *anagement and Industrial relations? &oined the company in 1DB5 as 9eneral *anager >"dmn.? Ce is looking after personnel and "dministration, training and development of manpower of the company. 1ow he is the vice president of the personnel and administration in the company.

2B

MANAGEMENT DISCUSSION AND ANALYSIS

Business Segment- (orn processing industry in India, has shown remarkable growth in the
couple of years. The momentum is expected to sustain for some more years to come owing to increasing and versatile use of starch and its derivatives. The Indian %tarch Industry is still at a nascent stage and deriving around 7F products from corn whereas more than 4FF products of starch and starch derivatives are being derived in the international arena. The si-e of the industry is also negligible compared to the international market. Cowever, profits may tend to fluctuate from year to year due to erratic availability of basic raw material i.e, mai-e being an agricultural produce, which suffers from natural vagaries.

Opportunities and Threats- The per capita production and consumption of starch is still much
lower as compared to other countries of the world. There is reasonably considerable potential for the increased demand. Cowever, raw material availability and wide fluctuation in the prices continue impacting the profitability of the industry. Cigher cost and shortage of basic raw material may impede growth of the industry due to cheaper imports of starch and its derivatives from the neighboring countries.

Internal control system and their adequacy- The company has an effective internal control
system commensurate with its si-e and nature of business. The system duly ensures that all the transactions are properly authori-ed, recorded and reported correctly. The management continuously reviews the system to carry out various operations of the company effectively and efficiently with due protection for the company s assets. The system also ensures ue compliance of all the acts, laws and statutory regulations as applicable to the company.

2D

Companys financial performance and analysis- The sales of the company have increased
both in the volumes and in values. The company has been assigned the highest rating i.e 2! one for its short term banks facilities by *<s (redit "nalysis ' !esearch )td. " strong emphasis has been placed on the working capital management of the company with stringent controls over funds deployment, timely collection of customer s outstanding and effective control over procurement of raw material. The company has en&oyed good credit rating i.e highest health code with its bankers over the years. The working capital management, in fact, derives its ma&or strength from self generated cash flows duly supplemented with the capacity to have easy access to the necessary credit.

Human resources development/Industrial relations- (ompany s industrial relations

continued to be harmonious during the year under reference. The company believes that the quality of employees and level of motivation largely contribute to the overall success of business enterprise in the long/run. (ompany conducts regular in/ house training programmes for employees at all level with ma&or thrust on maintaining high level of motivation and on leadership development providing good professional environment in order to equip them with necessary drive and skill in their respective functional areas.

0F

FINANCIAL STATUS OF THE SUKHJIT STARCH & CHEMICALS LTD.

BALANCE SHEET AS AT 31.3.2009

01

2articulars A. S !"CES # #!N$S 1.SHA"EH L$E"S% #!N$S a? %hare capital b? !eserves and surplus 2.L AN #!N$S a? %ecured loans b? Ansecured loans T&tal B. A''LICATI N # #!N$S 1. #I(E$ ASSETS a? 9ross block b? )ess= "ccumulated depreciation c? 1et block d? capital work in progress 2. IN)EST*ENTS 3. C!""ENT ASSETS+L ANS AN$ A$)ANCES a? Inventories b? %undry debtors c? (ash and bank balances d? )oans and advances ,. Less- C!""ENT LIABILITES AN$ '" )ISI NS Net C.rrents Assets $e/erre0 Liability T&tal Assets ( -) T&tal C. N&tes &n A11&.nts.

%chedules

"s at 01<F0<2FF5 !s. 5,05,DB,2FF B0,33,F7,771 05,3B,71,5D1 1B,1B,D0,000 1+,2+91+33+324

"s at 01<F0<2FFB !s. 5,05,DB,2FF 54,4F,,B5,45B 77,37,D0,707 11,DD,41,2F3 1,0D,40,0F,71B

" . ( :

E $ 9 C I @ + )

1,17D,3D,DD,00 B 02,14,34,470 52+4,+33+394 5,FB,07,47 3 59+22+25+3,1 14+31+43+23, 07,7D,74,32D 1D,3B,53,31D 0,B7,DB,4DB 12,7B,F1,17F 30+41+21+952 22+39+23+,52 22+39+23+,52 ,5+11+9,+40, 2+1,+35+34, 1+,2+91+33+324

1,F0,D7,2D,5DF 2B,F4,B4,F23 54,BB,77,537 0,D0,31,D52 5D,B2,F3,D52 17,FB,12,103 05,24,50,B1F 2F,1B,33,7BF 5,47,B0,37B 12,1B,FD,4D5 55,15,00,404 24,34,70,304 24,34,70,304 41,41,BD,DFF 4,BB,5B,047 1,0D,40,0F,71B

02

Objective of The Study

Objective of the study

00

The ob&ective of the study is as follows= To evaluate the financial position of the %ukh&it %tarch ' (hemicals ltd. of last three years. To measure financial performance of %ukh&it %tarch ' (hemicals ltd. of last three years.

07

Research Methodology

04

Research methodology
.asically pro&ect study is usually based on a research, which gives a concrete answer to a problem. This research may be 2roblem %olving or 2roblem 6riented. .oth types of research are usually known as "pplied !esearch.

"ccounts is a form of "pplied research which proceeds with a certain problem, specifies alternative solutions and the possible outcomes of each alternative. It may be further named as #:ecisional !esearch;.

The "ccounts !esearch methodology involves a number of interrelated activities, which overlap and do not rigidly follow a particular sequence. "n "ccounts research involves the following ma&or steps.

FORMULATING RESEARCH PROBLEM

The first step in research is formulating research problem. It is the most important stage in "pplied !esearch as it rightly said #" problem well defined is half solved;.

In this 2ro&ect !eport I have studied the concept of #inan1ial State6ent Analysis have carried the analysis of the same in THE S!7H8IT STA"CH 9 CHE*ICALS LI*ITE$.

STATISTICAL TOOLS & TECHNIQUES

The statistical techniques have been studied. These have been very useful in doing the interpretation and analysis of the data collected through secondary sources.

03

DATA REPRESENTATION
The result have presented with the help and bar diagrams which clearly represents that the research conducted is a $ormal !esearch and the !esearch :esign is a sound one.

DETERMINING THE SOURCE OF DATA

The next step is to determine the source of data to be used. The "ccounting research may be based on primary or secondary data or on both. In this report I have used the information gathered through secondary data which include mainly the "nnual !eports of THE S!7H8IT STA"CH 9 CHE*ICALS LI*ITE$.

05

Financial Analysis of Sukhjit Strach & hemicals !td"

0B

Comparative Balance Sheet of The Sukhjit Starch & Chemicals Ltd. As on 31 st March 2007 - 2008
In1rease: 'arti1.lars #ixe0 Assets 9ross .lock Less-:epreciation Net bl&1= A00-(apital work 2003 2005 $e1rease A6t. 524D74BD3 27D110B02 753B02F37 in 2271F572B 5FFD0D7D2 142054505 2457B0B32 1B32B5102 B2513032 32B527F2 4BD04D54B 1772357DB5 505DB2FF 4D530B242 351703742 7F0331703 1221B03F4 424B74F71 102207270 40134BD5 1B47FF17F 4DDD0047 1772357DB5 1F0D72D5DF 2BF4B4F23 54BB77537 0D031D52 5DB2F3503 17FB12103 052450B1F 2F1B337BF 547B037B 121BFD4D5 551500404 151F5427F5 505DB2FF 544FB545B B2BBB455B 7737D0707 11DD412F3 43377737F 1D1535033 3755323D 243470304 4BB5B047 151F5427F5 0107B0BD7 017511D7 2B2F125FF >1B7574743? D5235277 >114303F1? 114FBDD7B 1445D07B >5202517? 4BD051D4 1B2050555 23BF5572F LLLLLLL 14577D023 14577D023 72B01DDB >22020DD? 7F4DD4DD 4D400120 1131F052 511707D4 >1114FF? 23BF5572F In1rease: in $e1rease in ;er1enta<e 70.1B 12.30 4D.17 >B2.70? 10.B5 >5.4B? 77.3D B.03 >B.57? D0.57 0F.D7 1B.4B LLLLLL 23.07 20.77 1F.31 >1.B2? 5.52 74.F2 21.B0 0B.05 >1.B4? 1B.4B

progress T&tal /ixe0 assets Investments C.rrent Assets a? Inventories b? %undry :ebtors c? (ash ' .ank balances d? )oans ' "dvances T&tal 1.rrent assets T&tal Assets S>are>&l0ers #.n0s a? %hare (apital b? !eserves ' %urplus T&tal s>are>&l0ers /.n0s L&an #.n0s a? %ecured loans b?Ansecured loans T&tal l&an /.n0s C.rrent Liabilities a? )iabilities b? 2rovisions T&tal 1.rrent liabilities :eferred Tax )iability T&tal Liabilities

0D

Interpretation:
The comparative balance sheet shows that fixed assets have increased by10.B5G while long term loans >loan funds? have increased by 5.52G which shows that fixed assets have purchased by rising long term liability. The current assets and current liability show increase of 0F.D7G and 0B.05G respectively. The shareholders funds have been increased to 20.77G. 6verall position of the company is satisfactory.

7F

Comparative Balance Sheet of The Sukhjit Starch & Chemicals Ltd. As on 31 st March, 2008- 2009
'arti1.lars #ixe0 Assets 9ross .lock Less/:epreciation Net Bl&1= A00/(apital work in 2005 2009 In1rease : $e1rease in A6t. In1rease: $e1rease in ;er1enta<e

1F0D72D5DF 2BF4B4F23 54BB77537 0D031D52

1173DDD00B 021434470 B247005D4 5FB07473

1F543D47 7FDBF415 334BDF01 01752457

1F.07 17.3F B.52 5D.D4

71

progress T&tal /ixe0 assets Investment C.rrent Assets a?Inventories b? %undry :ebtors c? (ash '.ank balances d? )oans ' "dvances T&tal 1.rrent assets T&tal Assets S>are>&l0ers #.n0s a? %hare (apital b? !eserves ' %urplus Total shareholders funds L&an #.n0s a? %ecured )oans b? Ansecured )oans T&tal l&an /.n0s C.rrent Liabilities a? )iabilities b? 2rovisions T&tal 1.rrent liabilities :eferred Tax )iabilities T&tal Liabilities

5DB2F3503 17FB12103 052450B1F 2F1B337BF 547B0370 121BFD4D5 551500404 151F5427F5 505DB2FF 544FB545B B2BBB455B 7737D0707 11DD412F3 43377737F 1D1535033 3755323D 243470304 4BB5B047 151F5427F5

BD323B071 140140257 077D7432D 1D3B5331D 0B7DB4DB 127BF117F 5F4121DB3 15474703F1 505DB2FF B033F7771 D1F7F2371 053B715D1 1B1BD0000 44B504127 137DFD7B3 4DF15DD3 220D257B2 3175B047 15474703F1

DBF313F4 1207110B >2532B1B1? >7DBDB31? >03DB4F74? 2DD1470 >3331147D? 705D11D7 LLLLLLLLL B1413B30 B1413B30 >3D341370? 31D72125 >55FD413? >23B45BBF? >454B250? >02313140? 23FFFFF 705D11D7

12.2B B.53 >5.B1? >2.75? >7B.DD? 2.74 >B.30? >2.44? LLLLLLLLL 1F.5D D.B0 >14.4D? 41.30 >1.03? >17? >B.BB? >12.51? >7.71? 2.44

72

Interpretation:
The comparative balance sheet shows that fixed assets have increased to 12.2BG and long term loans >loan funds? have decreased to >1.03G?. The current assets have been decreased by 551500404 to 5F4121DB3 so the difference is >B.33G? which is much less than the past years. It shows that position of the firm is not good. The current liabilities have decreased by >12.51G?. %o it is not the healthy sign for the firm.

70

Comparative Income Statement of The Sukhjit Starch & Chemicals Ltd. As on 31 st March, 2007-2008
In1rease: 'arti1.lar 1et %ales (A) C&st &/ ?&&0s S&l0a? (onsumption of *aterial b? *anufacturing Expenses c? 2ayment to ' 2rovisions for Employees T&tal C ?S (B) 9ross 2rofit (A-B) 6perating Expenses (C) 6perating 2rofit > 9ross 2rofit M(? A00- 6ther Income Less-1on 6perating Expenses a? $inancial (harges b? :eprecation T&tal N&n ;eratin< 2003 1315D23774 D53B10745 1DDD1F5BB 5774F50D 1241157DB7 033541731 302B5D25 0F0730407 D0424F2 2005 15D32F050B 11FD403041 223B300B2 D0451F4D 172DD5F5D2 033202D73 5F0114F1 2D4D21774 17D510BB $e1rease in A6t. 15B2552D0 102522BD7 23D424D7 1D12F02F 15B5D4BFB >41B414? 5F20457 >5472FBD? 431BBB3 In1rease: $e1rease in 'er1enta<e 11.F1 10.4B 10.7B 24.3B 17.2D >F.17? 11.FD >2.7B? 3F.F5

00F72074 2DFB1DB4

75003B0D 0305F7B4

172D77D7 52BB4FF

70.23 24.F3

77

Ex;enses 1et 2rofit before Tax Less-2rovision for Taxation Net 'r&/it a/ter Tax

3212700F 24F3D15F3 7341FFFF 2F71B15F3

B05F5027 2251B44FD 245F4FFF 2F17BF4FD

214B2DD7 >204F31D5? >2FBF4FFF? >25F11D5?

07.57 >D.05? >77.50? >1.02?

Interpretation:
The (omparative income statement shows the net sales have increased to 11.F1G while the cost of goods sold have increased to 17.2DG. 6perating Expenses has been increased to 11.FDG because of higher administration and selling expenses. 2rofit after taxes have declined by 1.02G, thus overall profitability position of the firm is satisfactory.

74

Comparative Income Statement of The Sukhjit Starch & Chemicals Ltd. As on 31 st March, 2008-2009
In1rease: 'arti1.lar 1et %ales (A) C&st &/ ?&&0s S&l0a? (onsumption of *aterial b? *anufacturing Expenses c? 2ayment to ' 2rovisions for Employees T&tal C ?S (B) 9ross 2rofit (A-B) 6perating Expenses (C) 6perating 2rofit > 9ross 2rofit M(? A00- 6ther Income Less-1on 6perating Expenses a? $inancial (harges b? :eprecation T&tal N&n ;eratin< Ex;enses 1et 2rofit before Tax Less-2rovision for Taxation Net 'r&/it a/ter Tax 2005 15D32F050B 11FD403041 223B300B2 D0451F4D 172DD5F5D2 033202D73 5F0114F1 2D4D21774 17D510BB 2009 2F2313237F 102F35BF14 2B0375D00 11235D2D1 1515FF420D 0FD1457F1 5134B15F 2057DD201 1F5BDD74 $e1rease in A6t. 22DD4BDF2 211171337 435B7441 1D1FB202 2B5F07775 >45354474? 107333D >4B722217? >71B1770? In1rease: $e1rease in 'er1enta<e 12.BF 1D.F2 24.F0 2F.72 2F.F5 >14.4B? 1.D1 >1D.57? >25.D2?

75003B0D 0305F7B4 B05F5027 2251B44FD 245F4FFF 2F17BF4FD

40DD25FD 41174BDF 1F410B4DD 17014F455 23DFFFFF 11324F455

3344B5F 175547F4 21701254 >B7F07D02? 11D4FFF >B422DD02?

17.F3 7F.32 24.3F >03.DB? 7.37 >72.0F?

73

Interpretation:
The (omparative income statement shows that the net sales have increased by 12.BFG. The cost of goods sold shows an increase of 2F.F5G and the gross profit has declined by 14.4BG. The operating expenses have increased to 1.D1G due to increase in sales. 2rofit before tax shows declined of 03.DBG and profit after taxes have declined by 72.0FG but they should try to control the operating expenses and try to increase the profit of the firm.

75

Common-Size Balance Sheet of The Sukhjit Starch & Chemicals Ltd. (From 2007-2009)
2003 'arti1.lars
#ixe0 Assets 9ross .lock Less-:epreciation Net Bl&1= A00-(apital work in progress T&tal #ixe0 Assets Investments C.rrent Assets a? Inventories b? %undry :ebtors c? (ash ' .ank .alances d? )oans ' "dvances T&tal C.rrent Assets T&tal Assets S>are>&l0ers #.n0s a? %hare (apital b? !eserves ' %urplus T&tal S>are>&l0ers #.n0s L&an #.n0s a? %ecured )oans b? Ansecured )oans T&tal L&an A6t. @ A6t.

2005
@ A6t.

2009
@

524D74BD3 27D110B03 753B02F37 2271F572B 5FFD0D7D2 142054505 2457B2B32 1B32B5102 B2513032 32B527F2 4BD04D54B 1772357DB5

4F.01 15.23 00.F4 14.40 7B.4B 1F.43 15.B7 12.D1 4.50 7.04 7F.B4 1FF

1F0D72D5DF 2BF4B4F23 54BB77537 0D031D52 5DB2F3503 17FB12103 052450B1F 2F1B337BF 547B037B 121BFD4D5 551500404 151F5427F5

3F.54 13.7F 77.04 2.0F 73.34 B.20 21.55 12.14 7.71 5.12 74.11 1FF

1173DDD00B 021434470 B247005D4 5FB07473 BD323B071 140140257 077D7432D 1D3B5331D 0B7DB4DB 127BF117F 5F4121DB3 15474703F1

3.4B 1B.02 75.F7 7.F0 41.FB B.52 1D.33 11.22 2.1D 5.11 7F.1B 1FF

505DB2FF 4D530B242 351703742

4.11 71.2 73.47

505DB2FF 544FB545B B2BBB455B

7.01 77.10 7B.74

505DB2FF B033F7771 D1F7F2371

7.2F 75.3B 41.BB

7F0331703 1221B03F4 424B74F71

25.DB B.73 03.77

7737D0707 11DD412F3 43377737F 7B

23.FD 5.F1 00.11

053B715D1 1B1BD0000 4BB504127

21.75 1F.03 01.B7

#.n0s C.rrent Liabilities a? )iabilities b? 2rovisions T&tal C.rrent Liabilities :eferred Tax )iability T&tal Liabilities 102207270 40134BD5 1B47FF17F 4DDD0047 1772357DB5 D.13 0.3B 12.B4 7.14 1FF 1D1535033 3755323D 243470304 4BB5B047 151F5427F5 11.2F 0.5B 17.DD 0.77 1FF 137DFD7B3 4DF15DD3 220D257B2 3175B047 15474703F1 D.0D 0.03 12.53 0.4F 1FF

Interpretation:
The common/si-e balance sheet shows that fixed assets is increasing in 2FF5 to 7B.4BG, it is decreased in 2FFB to 73.34G and increased in 2FFD to 41.FBG. The current assets are increased in 2FFB to 74.11G and are decreased in 7F.1BG. The long term loans are 03.77G in 2FF5 and reduced 00.11G in 2FFB, then is declined to 01.B7G in 2FFD. %ecured loans are more then unsecured loans. The current liabilities show an increase of 17.DDG in 2FFB after that in 2FFD declined 12.53G. The current assets are more than current liabilities which shows that the liquidity position of the company is sound.

7D

Common-Size Income Statement of The Sukhjit Starch & Chemicals Ltd. (From 2007-2009)
2003 'arti1.lars
1et %ales(A) C&st &/ ?&&0s S&l0a? (onsumption of *aterial b? *anufacturing A6t. 1315D23774 @ 1FF A6t. 15D32F050B

2005
@ 1FF A6t.

2009
@ 1FF

2F2313237F

D53B10745 1DDD1F5BB

3F.05 12.04

11FD403041 223B300B2

31.55 12.30

102F35BF14 2BB0375D00

34.1B 10.DD

4F

Expenses c? 2ayment to and 2rovisions for Employees T&tal C ?S (B) 9ross 2rofit (A-B) T&tal ;eratin< Ex;enses 6perating 2rofit >9ross 2rofit/(? A00- 6ther Income Less-1on 6perating Expenses a? $inancial (harges b? :epreciation T&tal N&n ;eratin< Ex;enses 1et 2rofit before Tax Less-2rovision for Taxation Net 'r&/it a/ter Tax 24F3D15F3 7341FFFF 2F71B15F3 14.7D 2.B5 12.31 2251B44FD 245F4FFF 2F17BF4FD 12.37 1.70 11.21 17014F455 23DFFFFF 11324F45F 5.F3 1.02 4.50 00F72074 2DFB1D4 3212700F 2.F7 1.BD 0.B0 75003B0D 0305F7B4 B05F5027 2.30 2.F2 7.33 40DD25FD 41174BDF 1F410B4DD 2.30 2.42 4.1B 5774F50D 1241157DB7 033541731 302B5D25 0F0730407 D0424F2 7.3F 55.00 22.33 0.D1 1B.54 F.45 D0451F4D 172DD5F5D2 033202D73 5F0114F1 2D4D21774 17D510BB 4.2F 5D.31 2F.0B 0.D1 13.75 F.B0 11235D2D1 1515FF420D 0FD1457F1 5134B15F 2057DD201 1F5BDD74 4.43 B7.57 14.24 0.40 11.52 F.40

41

Interpretation:
$rom, the common/si-e income statement it revealed that the net sales are increased till the year of 2FFD, it is showing that the increasing trend. It means that the firm s profit earning ratio is good. The (69% shows an increase till the year 2FFD. The amount of gross profit has declined in 2FFB and 2FFD. The overall performance of firm is satisfactory.

42

Trends of Sales
Aears 2FF5 2FFB 2FFD Tren0s 1FF 111.F1 124.20 Sales 1315D23774 15D3F050B 2F2313237F

Trends of Sales
140 Trends (in %) 120 100 80 60 40 20 0 2007 2008 No. of Years 2009 100 111.01 125.23

Trends

40

Interpretation:
$or calculating trend year 2FF5 was taken as base year. In year 2FFB, the sales increased to 111.F1G and in the year 2FFD the sales increased to 12.20G.8hich is good indicator of sales than that of the year 2FFB. $irm is utili-ing its resources efficiently ' effectively.

47

Trends of Current Assets

Aears 2FF5 2FFB 2FFD A6t 4BD04D54B 551500404 5F4121DB3 @ 1FF 10F.D7 11D.37

Trends of Current Assets

140 Trends (in %) 120 100 80 60 40 20 0 2007 2008 No. of Years 2009 100 Trends 130.94 119.64

44

Interpretation:
$or calculating trend 2FF5 was taken as base year. In the year 2FFB, the current assets have decreased and it has been decreased in the year 2FFD because the cash and bank balances decreased than the year 2FFB.

43

Trend of Fixed Assets

Aears 2FF5 2FFB 2FFD A6t. 5FFD0D7D2 5DB2F3503 BD323B071 @ 1FF 110.B5 125.B3

Trends of Fixed Assets

140 120 Trends (in %) 100 80 60 40 20 0 2007 2008 No. of Years 2009 113.87 100 127.86

Trends

45

Interpretation:
$or calculating trend, 2FF5 was taken as base year. " continuously increased in all the years up to 2FFD because capital work in progress have been increased in the year 2FFD.

4B

Trends of Gross Profit

Aears 2FF5 2FFB 2FFD A6t. 033541731 033202D73 0FD1457F1 @ 1FF DD.B4 B7.2D

Trends of Gross Profit

105 Trends (in %) 100 95 90 85 80 75 2007 2008 No. of Years 2009 84.29 % 100 99.85

4D

Interpretation:
$or calculating trend 2FF5 was taken as base year. 9ross profit shows decreasing trend till 2FFD and the net sales have been increased.

3F

Trends of Net Profit

Aears 2FF5 2FFB 2FFD A6t. 2F71B15F3 2F17BF4FD 11324F455 @ 1FF DB.35 43.D0

Trends of Net Profit

120 Trends (in %) 100 80 60 40 20 0 2007 2008 No. of Years 2009 100 98.67

56.93

31

Interpretation:
$or calculating trend 2FF5 was taken as base year. 1et profit shows decreasing trend till 2FFD. .ecause there is loss and expenses are more than income.

32

onclusion

30

Conclusion
In the end, it would be desirable to have a relook at the various aspects of this study discussed under different chapter to be able to put together the important points by way of conclusion. $inancial statement identifies the financial strengths and weakness of the firm by profit and loss account, properly establishing relationship between the items of balance sheet and profit and loss account. The management of The %ukh&it %tarch ' (hemicals )td. consists of the good mixture of experienced and dynamic persons. There is proper co/ordination, co/operation ' understanding between them which makes the company highly efficient firm. "t present the company have established the many other plant in the north India. The management plays a role in development of The %ukh&it %tarch ' (hemicals )td. in the stock market and also get positive results in the foreign trade. "s the firm is using the technology available in the market for manufacturing of starch and chemicals. Thus, we can say that the future of the firm is progressive. I wish for the success of the firm.

37

#ibliogra$hy

34

Bibliography
$inancial *anagement $inancial *anagement I.* 2andey %.+ 9upta %.1 *aheshwary

*anagement "ccounting ' $inancial (ontrol

Reports
.alance/%heet and 2rofit ' loss account (ompany s and *anual and .rochure provided by the company.

Web- Sites
www.sukh&itstarchchemicalsltd.com

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