1.

INTRODUCTION FIXED ASSETS

Fixed assets are those assets which are required and held permanently for a pretty longtime in the business and are used for the purpose of earning profits. The successful continuance of the business depends upon the maintenance of such assets. They are not meant for release in the ordinary course or business and the utility of these remains so long as they are in working order, so they are also known as capital assets. Land and buildings, plant and machinery, motor vans, furniture and fixtures are some examples of these assets. Financial transactions are recorded in the books keeping in going concern aspect of the business unit. It is assumed the business unit has a reasonable expectation of continuing business at a profit for indefinite period of time. It will continue to operate in the future. This assumption provides much of the justification for recording fixed assets at original coat and depreciating them in a systematic manner without reference to their current realizable value if there are no immediate expectations of selling them. Fixed resale, so they are shown at their book values (i.e. cost less depreciation provided) and not at their current realizable values. The cost concept of accounting, depreciation calculated on the basis of historical costs of old assets is usually lower than that of those calculated at current value r replacement value. This results in more profits on paper which, if distributed in full, will lead to reduction of capital.

Importance of financial management

Finance is one the basic foundations of all kinds of economic activities. It is the master key, which provides access to all the sources for being employed in manufacturing. Hence it is rightly said that finance is lifeblood of any enterprise, besides being the scarcest elements, it is also the most indispensable requirement. Without finance neither any business can be started nor successfully run. Provision of sufficient funds at the required time is the key to success of concern. As matter of fact finance may be said to be the circulatory system of economic body, making possible the needed co-operation among many units of the activity.

Definitions
1

According to GUTHMANN AND DOUGHAL1 Business finance can broadly be defined as the activity concerned with planning, rising, controlling and administering of funds used in the business. According to BONNEVILE AND DEWEY2 Financing consists in the rising, providing and managing of all the money, capital or funds of any kind to be used in connection with the business. According to Prof. EZRA SOLOMAN3 Financial management is concerned with the efficient use of any important economic resource, namely capital funds.

FINANCE FUNCTIONS Investment Decision

Investment or capital budgeting involves the decisions of allocation of cash or commitment of funds to long-term assets, which would yield benefits in future. It involves measurement of future profitability, which involves risk, because of uncertain future. Investment proposal should therefore be evaluated in terms of both expected return and risk. Other major aspect of investment decision is the measurement of standard or hurdle rate against which the expected return of new investment can be compared.

Financing Decision
Financing decision is the second important function to be performed by the fir. Broadly, he must decide when, where, and how to acquire funds to meet the firms investment needs. He has to determine the proportion of debt and equity. This mix of debt and equity is known as the firms capital structure. The financial manager must strive to obtain the least financing mix or the optimum capital structure where the market value of share is maximized.

Dividend Decision
It is the third major financial decision. The financial manager decides whether the firm should distribute all profits, or return them, or distribute a portion and return the balance. The optimum dividend policy should be determined where is maximizes the markets value of the share.

Liquidity Decision
Current assets management, which affects firms liquidity, is yet another finance function in addition to the management of long-term assets. Current assets should be managed 2

effectively safeguarding the firm against the dangers of liquidity and insolvency. Investment in current assets affects the profitability, liquidity, and risk. A conflict exists between profitability and liquidity while managing current assets. If the firm doesnt invest sufficient funds in current assets it may.

GOALS OF FINANCIAL MANAGEMENT

Maximize the value of the firm to its equity shareholders. This means that (Which represent the value of the firm to its equity shareholders) Maximization of profit. Maximization of earnings per share. Maximization of return on equity (defined as equity earnings/net worth). Ensuring maximum operational efficiency through planning, directing and Controlling of the utilization of the funds i.e., through the effective employment of funds. organization. expansion. Building up of adequate reserves for financing growth and Enforcing financial discipline in the use of financial resources through the coordination of the operation of the various divisions in the the

Goals of the firm should be to maximize the market value of its equity shares

The key challenges for the finance manager in India appear to be in the following areas
Investment Planning Financial Structure Treasure Operations Foreign Exchange Investor Communication Management Control

a) Broad Statement of the Problem To know the liquidity and profitability of prudential sugar corporation ltd and also to know the current assets and current liabilities position of prudential sugars .To analyse the financial position of the company through fixed assets management.

b) Review of Literature Management of fixed assets

The selection of various fixed assets required creating the desire production facilities and the decision regards the determination of the level of fixed assets is primarily the task that at the production technical people. The decision relating to fixed assets involves huge funds for a long period of time and are generally irreversible nature affecting the long term profitability of a concern, an unsound invest decision may prove to be total to the every existence of the organization. Thus the management of fixed assets is of vital importance to any organization.

The process of fixed assets management involves

1. Selection of most worthy projects or alternative of fixed assets. 2. Arranging the requisite funds/capital for the same. 3.The first important consideration to be acquire only that much amount of fixed assets which will be just sufficient to ensure smooth and efficient running of the business. In some cases it may be economical to buy certain assets in a lot size. Another important consideration to be kept in mind is possible increase in demand of the firms product necessary expansion of its activities. Hence a firm should have that much amount of fixed assets which could adjust to increase. The third aspect of fixed assets management is that a firm must ensure buffer stocks of certain essential equipments /services to ensure uninterrupted production in this event of emergences. Sometimes, there may be a breakdown in some equipment or service affecting the entire production. It is always better to have some alternative arrangements to deal with such situation. But at the same time the cost of carrying such buffer stock should also be evaluated. Efforts should also be made to minimize the level of buffer stock should also be evaluated. Efforts should also be made to minimize the level of buffer stock of fixed assets 4

be encouraging their maximum utilization during learn period, transferring a part of peak period and living additional capacity.

Fixed assets management

Jump to navigation Search fixed assets management is an accounting process that seeks to track fixed assets for the purposes of financial accounting, preventive maintenance, and theft deterrence.

A typical asset tag

Many organizations face a significant challenge to track the location, quantity, condition, and maintenance and depreciation status of their fixed assets. A popular approach to tracking fixed assets utilizes serial numbered Asset Tags, often with bar codes for easy and accurate reading. Periodically, the owner of the assets can take inventory with a mobile barcode reader and then produce a report. Off-the-shelf software packages for fixed asset management are marketed to businesses small and large. Some Enterprise Resource Planning systems are available with fixed assets modules. Some tracking methods automate the process, such as by using fixed scanners to read bar codes on railway freight cars or by attaching radio-frequency identification (RFID) tag to an asset.

Fixed Asset Tracking Software

Tracking assets is an important concern of every company, regardless of size. Fixed assets are defined as any 'permanent' object that a business uses internally including but not limited to computers, tools, software, or office equipment. While employees may utilize a specific tool or tools, the asset ultimately belongs to the company and must be returned. And therefore without an accurate method of keeping track of these assets it would be very easy for a company to lose control of them. With advancements in technology, asset tracking software is now available that will help any size business track valuable assets such as equipment and supplies. According to a study issued in December, 2005 by the ARC Advisory Group, the worldwide market for Enterprise Asset Management (EAM) was then at an estimated $2.2 billion and was expected to grow at about 5.0 percent per year reaching $2.8 billion in 2010. 5

All of this information is captured in one program and can be used on PCs as well as mobile devices. As a result, companies reduce expenses through loss prevention and improved equipment maintenance. They reduce new and unnecessary equipment purchases, and they can more accurately calculate taxes based on depreciation schedules. The most commonly tracked assets are: Office Equipment Evidence Medical Equipment IT Equipment, for example laptops. Vehicles Files Maintenance supplies Educational materials Software licenses Videos Tools

FIXED ASSETS
Fixed assets are those assets which are required and held permanently for a pretty longtime in the business and are used for the purpose of earning profits. The successful continuance of the business depends upon the maintenance of such assets. They are not meant for release in the ordinary course or business and the utility of these remains so long as they are in working order, so they are also known as capital assets. Land and buildings, plant and machinery, motor vans, furniture and fixtures are some examples of these assets.

Financial transactions are recorded in the books keeping in going concern aspect of the business unit. It is assumed the business unit has a reasonable expectation of continuing business at a profit for indefinite period of time. It will continue to operate in the future. This assumption provides much of the justification for recording fixed assets at original coat and depreciating them in a systematic manner without reference to their current realizable value if there are no immediate expectations of selling them. Fixed resale, so they are shown at their book values (i.e. cost less depreciation provided) and not at their current realizable values. The market value of a fixed asset may change with the passage of time, but for accounting purpose it continues to be shown in the books at its book value, i.e. the at which it was purchased minus depreciation proved values. The cost concept of accounting, depreciation calculated on the basis of historical costs of old assets is usually lower than that of those calculated at current value r replacement value. This results in more profits on paper which, if distributed in full, will lead to reduction of capital.

NEED AND IMPORTNACE FOR VALUATION OF FIXED ASSETS

Valuation of fixed assets is important in order to have fair measure of profit or loss and financial position of the concern. Fixed assets are meant for use for many years. The value of fixed assets decrease with their use or with time or for other reasons. A portion of fixed assets reduced by use is concerted into cash though charging depreciation. of production. Fixed assets are the asset which cannot be liquidates into cash within one year. The large amount of the company is invested in these assets every year. The company investment an additional fund in these assets directly nor indirectly the survival and other objective of the company purely depends on operating performance of management in effective utilization of the assets. For correct measurement of income proper measurement of depreciation is essential. As depreciation constitutes a part of the total cost

RATIO ANALYSIS
Ratio analysis is a powerful tool of financial analysis. A ratio is defined as The indicated quotient of two mathematical expression and as The relationship between for evaluating the financial position and performance of firm. The absolute accounting figure conveys meaning when it is related to some other relevant information.

1. Fixed assets to net worth ratio

The ratio indicates the extent to where shareholders funds are struck in the fixed assets. The formula top compute fixed assets to net worth is calculated as follows. Fixed assets (after depreciation) / Net worth. NET WORTH = share capital + Reserves & surplus If the ratio is less than 100 percent, it implies than owner funds are more than the fixed assets and a part of working capital is provided by the share holder and vice versa. Fixed assets Fixed assets to net worth ratio = ---------------------------- 100 Net worth

2. Fixed assets ratio

This ratio explains whether the firm has raised adequate long term funds to meet its fixed assets requirements and is calculated as under.

Fixed asset (after depreciation) Fixed assets ratio = ---------------------------------------------8

Long term funds

3. Percentage of fixed assets to current liabilities

The ratio measures the relationship between fixed assets and the funded debt and is a very useful to the long term creation. The ratio can be calculated as Fixed assets Fixed assets as a percentage to current liabilities = --------------------------Current liabilities

4. Total investment turnover ratio

The ratio is calculated by dividing the net sales by the value of total assets that is (net sales / total investment) or (sales / total investment). A high ratio is an indicator of over trading of total assets while a low reveals idle capacity. The traditional standard for the ratio is two times.

5. Fixed assets turnover ratio

This ratio expresses the number of times fixed assets are being turned-over is state period. It is calculated as under Sales Fixed assets turnover ratio = ------------------------------------------------Net fixed assets (after depreciation)

The ratio shows low level the fixed assets are being uses in the business. The ratio is important in case of manufacturing concern because sales are produced not only by use of current assets but also by amount invest in fixed assets the higher ratio, the better the performance. On the other hand a low ratio indicated that fixed assets are not being efficiently utilized.

6. Gross capital employed

The term Gross capital employed usually comprises the total assets, fixed as well as current assets used in a business. Gross capital employed = Fixed assets + Current assets The ratio is calculated to measure the profit after tax against the amount invested in total assets to ascertain whether assets are being utilized properly or not. The higher the ratio better it is for the concern.

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C) NEED FOR THE STUDY

To study about fixed assets analysis and other areas accounting, corporate, marketing and financial matters. To known about fixed assets position and performance of the company. To know about the investments of the company. To study the financial position of the company. To study the amount of finance made by long term liabilities and owner funds towards fixed assets

D) OBJECTIVES OF THE STUDY

1) To evaluated fixed assets management of the Prudential Sugar Corporation Limited. 2) To assess the turnover & profitability of The Prudential Sugar Corporation Limited. 3) To suggest feasible solution to improve the overall efficiency of the Prudential Sugar Corporation Limited.

E) LIMITATIONS OF THE STUDY

1. The study is limited up to the data and information provided by the Prudential Sugar Corporation Limited and its 5years financial annual reports. 2. The report will not provide exact fixed assets status position in the Prudential Sugar Corporation Limited it may vary from time to time and situation to situation. 3. Changes in them may vary the fixed assets performance. 4. The accounting procedure and other accounting principles are limited by the company 5. The project duration is limited period i.e.2 months only.

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2. RESEARCH METHODOLOGY
The data gathering method is adopted purely from secondary sources. The theoretical content is gathered from eminent texts books and reference and library at The Prudential Sugar Corporation Limited. The financial data and information is gathered from annual reports of the company internal records. Interpretation, conclusions and suggestions are purely based on my option and suggestions provided by the project guide. The data used for analysis and interpretation from annual reports of the company that is secondary data. Ratio analysis is used for calculation on purpose. The project is presented by using table, graphs and with their interpretations. No survey is undertaken or observation study is conducted in evaluating FIXED ASSETS performance of The Prudential Sugar Corporation Limited.

(a) Data Requirement Plan

The total project data planned for through secondary data only.

(b) Data Collection Plan - Data collection method

Secondary data: Collected through company broachers, company websites; Annual reports, management books, management journals and newspapers etc.

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3. DATA ANALYSIS & INTERPRETATIONS 1. Percentage on investment

Current Year Percentage on investment = X 100 Base year

TABLE-I Percentage on investment (Rs in Lacks) Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Investment 14096 14096 14114 14255 14255 Trend percentage 100 100 100.12 101.13 101.13

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GRAPH I
Percentage on investment
Trend percentage

101.4 101.2 101 100.8 100.6 100.4 100.2 100 99.8 99.6 99.4

2006-2007

100

2007-2008

100

2008-2009 Years

100.12

2009-2010

101.13

2010-2011

From the analysis of the above table to can be observed that the growth rate of total investment of The Prudential Sugar Corporation Limited is in increased trend which shows table of the Sugars Industries in total investment is increased from time to time during the year 2006-2007 it was recorded 100. But it is increasing in the years 2008-2009 and 20092010.

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101.13

2. Growth rate in fixed assets

Current Year Growth rate in fixed assets = X 100 Base year

TABLE II Growth rate in fixed assets (Rs in Lacks) Years 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Fixed assets 12620.22 12664.22 12919.22 13992.64 13382.59 Percentage 100 100.35 102.37 110.87 106.04

GRAPH II
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GROWTH RATE IN FIXED ASSETS

Percentage

104 102 100 98 96 94

2006-2007

2007-2008

100.35

100

2008-2009 Years

102.37

108 106

2009-2010

2010-2011

From the analysis of the above table can be observed that the growth rate of total fixed assets. During the year 2006-2007 the assets increment was recovered at 12620.22 lacks and it is increased to Rs.13382.59 lacks in 2009-2010 the fixed assets ingredient is quite satisfactory. The trend percentage in the year 2009-2010 is taken at as the base year as 110.87%.

Fixed Assets to Net worth Ratio

16

106.04

112 110

110.87

Fixed Assets Fixed assets to net worth ratio = X100 Net worth

TABLE III Fixed Assets to Net worth Ratio (Rs in lacks) Years 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Gross fixed asset 12620.22 12664.22 12919.22 13992.64 13382.59 Net worth 36968 38904 40544.1 41056 41642.6 Ratio 34.14 32.55 31.87 34.09 32.14

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GRAPH III
FIXED ASSETS TO NET WORTH RATIO
Percentage

34.14

34.5 34 33.5 33 32.5 32 31.5 31 30.5

32.55

34.09

2006-2007

2007-2008

2008-2009 Years

31.87

2009-2010

2010-2011

The above table shows that the gross fixed net worth ratio is fluctuating from year to year in the year 2006-2007 the gross fixed assets to net worth ratio is 34.14% in the year 2010-2011 the fixed assets net worth ratio to acquire the ratio is 32.14. The high ratio recorded in 20062007 at 34.14. The lowest ratio is recorded at 31.87 in the year 2008-2009.

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32.14

Percentage of fixed assets to long term liabilities

Fixed assets ratio a various ratio of fixed assets to net worth is a ratio of fixed assets to long term funds which is calculated as: Fixed assets (After depreciation) Fixed assets to long term liabilities = ------------------------------------------------Long term funds

TABLE IV Percentage of fixed assets to long term liabilities (Rs in Lacks) Years 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 Fixed assets 12620.22 12664.22 12919.22 13992.64 13382.59 Long term fund 9908.69 6082.54 7781.01 7542.24 6949.45 Ratio 127.36 208.21 166.03 185.52 192.57

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GRAPH-IV Percentage of fixed assets to long term liabilities

Percentage

208.21

150 100 50 0

2006-2007

127.36

200

2007-2008

2008-2009 Years

166.03

2009-2010

185.52

250

2010-2011

1. Fixed assets as % at long term liabilities ratio is fluctuating from year to year the fixed assets as a to long term liabilities was recorded at 127.36 in the year 2006-2007. 2. The Highest ratio is recorded at 208.21 in the year 2007-2008 the lowest recorded at 127.36 in the year 2006-2007.

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192.57

Percentage of fixed assets to Current Liabilities

Fixed assets Percentage of fixed assets to Current Liabilities = --------------------------Current liabilities

TABLE V Percentage of fixed assets to Current Liabilities (Rs in Lacks) Years 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Fixed assets 12620.22 12664.22 12919.22 13992.64 13382.59 Current liabilities 14221.18 14786.24 20385.19 21932.79 23476.85 88.74 85.65 63.38 63.80 57.00 Ratio

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GRAPH:-V Percentage of fixed assets to Current liabilities

Percentage

88.74

100 90 80 70 60 50 40 30 20 10 0

85.65

63.38

63.8

2006-2007

2007-2008

2008-2009 Years

2009-2010

2010-2011

1. The ratio was fluctuating trend % in review period time 2.From the above table it is observed that the ratio was recorded at 88.74 in the year 20062007 it is gradually decreasing at 57.00 in year2010-2011 which indicate that the current funds are used in the fixed assets which is which is not sufficient required for the company. 1. The highest ratio was recorded at 88.74 which are higher than the average ratio 2. The lowest ratio was recorded at 57.00 is less than the average ratio.

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57

Total investment turnover ratio

The total investment turnover ratio can be calculated by the formula as given under, Sales Total investment turnover ratio = ----------------------Total investment

TABLE VI Total investment turnover ratio (Rs in lacks) Years 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Sales 20148 13051 12408 20594 35973.05 Total investment 14098 14098 14116 14257 14257 Ratio 142.91 92.57 87.90 144.45 252.32

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GRAPH-VI Total investment turnover ratio

Percentage

300 250 200 150 100 50 0 2006-2007 2007-2008 2008-2009 Years 2009-2010

142.91

92.57

87.9

144.45

2010-2011

The above table shows that during the year 2006-2007 the ratio was recorded at 142.91 in the year 2010-2011 the ratio was increasing to 252.32. The highest ratio was recorded at 252.32 in the year 2010-2011 which is more than average ratio.

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252.32

Fixed assets turnover ratio

The fixed assets turnover ratio is the relationship between the sales or cost of goods / capital assets employed in a business. Sales Fixed assets turnover ratio = -------------------------100 Total fixed assets

TABLE-VII Fixed assets turnover ratio (Rs in lacks) Years 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Sales 20148 13051 12408 20594 35973.05 Total fixed assets 12620.22 12664.22 12919.22 13992.61 13382.59 Ratio 159.65 103.05 96.05 147.18 268.80

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GRAPH-VII Fixed assets turnover ratio

Percentage

300

159.65

200 150 100 50 0

103.05

2006-2007

2007-2008

2008-2009 Years

96.05

2009-2010

147.18

250

2010-2011

The above table shows that the fixed assets ratio turnover ratio is fluctuating trend during the review period of time in the year 2006-2007 the ratio was recorded as 159.65 in the year 2010-2011 the ratio was recorded to increased 268.80. Average ratio was recorded 154.95 during the review period of time. The highest ratio was recorded at 268.80 in the year 2010-2011 which is more than average ratio. The lowest ratio was 96.05 in year 2008-2009.

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268.8

Fixed assets as a percentage to total assets

Fixed assets Fixed assets as a percentage to total assets = --------------------100 Total assets

TABLE- VIII Fixed assets as a percentage to total assets (Rs in Lacks) Years 200-2007 2007-2008 2008-2009 2009-2010 2010-2011 Fixed assets 12620.22 12664.22 12919.22 13992.64 13382.59 Total assets 35953.35 24760.43 27051.63 46294.58 44711.72 Ratio 35.10 51.14 47.75 30.23 29.93

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GRAPH-VIII Fixed assets as a percentage to total assets

Percentage

51.14

60 50 40 30 20 10 0

35.1

47.75

30.23

2006-2007

2007-2008

2008-2009 Years

2009-2010

2010-2010

The above table shows that fixed assets to total assets ratio is fluctuation to trend during the review of period of time. During the year 2006-2007 the ratio as recorded 35.10 and the year 2010-2011 the ratio slightly decreasing to 29.93%. Average ratio was observed 175.21 during the review of period time.

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29.93

Gross capital employed

Gross Capital Employed = Fixed assets + Current assets

TABLE IX Gross capital employed (Rs in Lacks) Years 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Current assets 23333.13 12096.21 14132.41 32301.99 31329.13 Fixed assets 12620.22 12664.22 12919.22 13992.64 13382.59 Gross capital employed 35953.35 24760.43 27051.63 46294.58 44711.72

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GRAPH-IX Gross capital employed

Amounts

46294.6

50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0

35953.4

2006-2007

2007-2008

24760.4

2008-2009 Years

27051.6

2009-2010

2010-2011

From the above table the profit of Sugar industries is in increasing trend which is good for company in the year 2006-2007 the gross capital employed percentage is 35953.35 lacks than it is increasing in the year 2009-2010 the gross capital employed was the lowest recorded at 24760.43 and in the year 2007-2008.

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44711.7

4. FINDINGS
1. The financial position of the Sugar industry recording to investment has been

slight increasing as 100.00 in 2006-07 and 100.12 in 2010-11. 2. Regarding the fixed assets as percentage of current liabilities it is observed that it

has decreasing trend. In 2006-07 it was 88.74% but decreased to 57.00% in 2010-11. 3. The fixed assets turnover ratio is fluctuating from year to year. In 2008-09 it was

lowest that is 96.05% in 2010-11 it was highest that is 268.80%. 4. It can be observed that in every year the gross capital employed ratio is

fluctuating as 35953.35 Lakhs in 2004-05 and 44711.72 in 2010-11.

SUGGESTIONS
1. The Prudential Sugar Corporation Limited has to increase its current asset

such as cash in hand and cash at bank etc. By disposing off the unutilized assets such as old machinery and thereby increase its liquidity position. 2. The inefficient utilization of plant and machinery of over investment in plant

and machinery, resulting in higher cost of production. 3. It suggests the chief account officer has detected the cause of a falling gross

margin and initiate action to improve the gross margin. 4. The Prudential Sugar Corporation Limited has the higher operating expense

ratio is unfavorable. The operating expenses are more than the sales are danger to the company The Prudential Sugar Corporation Limited must decrease the operating expenses.

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CONCLUSION
After Analyzing the Financial position of Prudential Sugar Corporation Ltd., and evaluating its fixed asset management and capital budgeting techniques in respective of components analysis, trend analysis. The following conclusions are drawn from the project preparation. The inventory turnover is good in all the five years the company should try to increase their sales it should maintain the high liquidity position .Hence the suggestions given are realistic which lead to increase in the profitability of the company.

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BIBLIOGRAPHY

Book Title Financial Management Financial Management Financial Management

Author Name I.M.PANDEY M.Y/Khan & P.K. Jain Prasanna Chandra

Publication Vikas Publishing house Pvt, Ltd Tata Mc. Graw Hill Publications Tata Mc. Graw Hill Publications

Publication & Edition Eight Edition Third Edition Fourth Edition

Websites:
www.google.com www.pscl.com

THE PRUDENTIAL SUGAR CORPORATION LIMITED, NINDRA

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Profit &Loss Account for the Period Ended 31ST March 2007
Particulars INCOME Income from Operations Other income Increase(Decrease) in Stock Total EXPENDITURE Schedule J K L Year ending 31-03-2007 in Rs. 48,18,08,750 29,56,350 (7,69,76,046) 40,77,89,054 Year ending 31-03-2006 in Rs. 52,74,26,830 1,99,739 (39,70,637) 52,36,55,932

Cost of materials consumed Manufacturing, personnel, selling Administrative and other expenses Depreciation Total Loss before prior period adjustment Add: Prior period adjustment Loss before Tax Add: Taxation of earlier year Add: Provision for deferred tax Less: Provision for deferred tax Profit (Loss) after tax Transfer from general reserve Profit/ (Loss) carried to balance sheet Earnings per share-Basic and diluted

M N O

27,10,05,694 9,23,38,814 5,35,72,775 2,61,50,527 44,30,63,810 3,52,74,756 3,01,409 3,55,76,165 --2,18,902 (3,53,57,263) 3,53,57,263 --(1.51)

33,83,69,998 12,05,47,813 5,84,37,403 2,61,07,946 54,34,63,160 1,98,07,228 1,10,496 1,99,17,724 --94,22,204 (2,93,39,298) 1,22,96,633 --(1.64)

BALANCE SHEET CORPORATION MARCH 31st 2006 to 31st 2007

S.No. I. PARTICULARS SOURCE OF FUNDS 1. Shareholders funds a. Share capital b. Reserve &surplus A B 34 32,33,20,000 5,08,30,508 32,33,20,000 2,89,66,564 As at 3103-2007 in Rs. As at 3103-2006 in Rs.

2. Loan funds a. Secured loans b. Unsecured loans Total II. APLICATION OF FUNDS 1. Fixed Assets a. Gross Block b. Less: depreciation c. Net block 2. Investments 3. Current assets, loans and advances a. Inventories b. Sundry Debtors c. Cash &bank balance d. Other current assets e. Loans and advances Less: Current liabilities and provision Net current Assets 4. Deferred tax asset (Net) (Refer notes to account) 5. Miscellaneous expenditure (to the extent not written off or adjusted) 6. Profit & loss account Total I H F G 22,45,48,095 6,72,47,226 2,62,79,223 1,10,892 9,10,76,443 40,92,61,879 15,29,50,140 25,63,11,739 5,90,33,955 0 0 70,11,65,403 29,34,83,093 10,00,36,861 30,21,266 56,562 9,97,43,718 49,63,36,500 14,04,21,906 35,59,14,594 5,62,76,394 0 0 86,47,85,117 E 57,57,25,799 19,54,65,095 38,02,92,704 55,27,005 57,44,97,815 14,35,44,380 43,09,53,435 1,95,56,105 C D 30,09,63,245 2,60,51,650 70,11,65,403 48,46,76,803 2,78,21,750 86,47,85,117

THE PRUDENTIAL SUGAR CORPORATION LIMITED, NINDRA Profit &Loss Account for the Period Ended 31ST March 2008
Particulars INCOME Income from Operations Schedule J 35 Year ending 31-03-2008 in Rs. 72,38,78,789 Year ending 31-03-2007 in Rs. 48,18,08,750

Other income Increase(Decrease) in Stock Total EXPENDITURE Cost of materials consumed Manufacturing, personnel, selling Administrative and other expenses Depreciation Total Loss before prior period adjustment Add: Prior period adjustment Loss before Tax Add: Taxation of earlier year Add: Provision for deferred tax Less: Provision for deferred tax Profit (Loss) after tax Transfer from general reserve Profit/ (Loss) carried to balance sheet Earnings per share-Basic and diluted

K L

18,69,339 (7,01,98,087) 79,59,46,215

29,56,350 (7,69,76,046) 40,77,89,054

M N E

51,52,78,516 14,54,71,974 2,35,80,660 2,61,89,752 71,05,20,902 8,54,25,313 2,74,827 8,57,00,140 2,94,000 1,81,13,187 7,574 6,72,85,379 (1,79,54,871) 4,93,30,508 (2.31)

27,10,05,694 9,23,34,814 5,35,72,775 2,61,50,527 44,30,63,810 3,52,74,756 3,01,409 3,55,76,165 2,18,902 (3,53,57,263) 3,53,57,263 --(1.51)

BALANCE SHEET CORPORATION MARCH 31st 2007 to 31st 2008

S.No. PARTICULARS SOURCE OF FUNDS 1. Shareholders funds a. Share capital b. Reserve &surplus 2. Loan funds a. Secured loans b. Unsecured loans Total APLICATION OF FUNDS 1. Fixed Assets a. Gross Block A B C D 34,33,20,000 6,59,82,149 26,60,79,193 2,64,08,809 70,17,90,151 32,33,22,000 5,08,30,508 30,09,63,245 2,60,51,650 70,11,65,403 As at 3103-2008 in Rs. As at 3103-2007 in Rs.

I.

II.

E 61,5223,603 36 57,57,27,799

b. Less: depreciation c. Net block 2. Investments 3. Current assets, loans and advances a. Inventories b. Sundry Debtors c. Cash &bank balance d. Other current assets e. Loans and advances Less: Current liabilities and provision Net current Assets 4. Deferred tax asset (Net) (Refer notes to account) 5. Miscellaneous expenditure (to the extent not written off or adjusted) 6. Profit & loss account Total

22,19,91,820 F G 24,88,39,276 9,73,19,453 1,46,47,590 1,26,376 6,91,78,407 6,91,78,407 17,63,98,869 25,37,12,233 4,93,18,129 I 0 0 71,17,90, 151 39,32,31,783 55,28,005

19,54,35,095 38,02,92,704 55,27,005 22,45,48,095 6,72,47,226 2,62,79,223 1,10,892 9,10,76,443 40,92,61,879 15,29,50,140 25,63,11,739 5,90,33,955 0 0 70,11,65, 403

THE PRUDENTIAL SUGAR CORPORATION LIMITED, NINDRA Profit &Loss Account for the Period Ended 31ST March 2009
Particulars INCOME Income from Operations Other income Increase(Decrease) in Stock Total EXPENDITURE Schedule Year ending 31-03-2009 in Rs. 90,59,44,332 3,35,905 2,62,66,471 93,25,46,708 Year ending 31-03-2008 in Rs. 72,38,78,789 18,69,339 7,01,98,087 79,59,46,215

J K L

Cost of materials consumed Manufacturing, personnel, selling Administrative and other expenses Depreciation Total Loss before prior period adjustment Add: Prior period adjustment

M N E

68,24,30,272 12,80,77,643 2,76,66,535 2,67,93,825 86,49,68,274 6,75,78,434 0 37

51,52,78,516 14,54,71,974 2,35,80,660 2,61,89,752 71,05,20,209 8,54,25,313 2,74,827

Loss before Tax Add: Taxation of earlier year Add: Provision for deferred tax Less: Provision for deferred tax Profit (Loss) after tax Transfer from general reserve Profit/ (Loss) carried to balance sheet Earning per share-Basic and diluted

4,24,63,939 2,51,14,495 2,47,029 97,15,826 1,51,51,640 (4,93,30,509) 6,44,82,149 0.51

8,57,00,140 2,94,000 1,81,13,187 7,574 6,72,85,379 (1,79,54,871) 4,93,30,508 2.31

BALANCE SHEET CORPORATION MARCH 31st 2008 to 31st 2009

S.No. PARTICULARS SOURCE OF FUNDS 1. Shareholders funds a. Share capital b. Reserve &surplus 2. Loan funds a. Secured loans b. Unsecured loans Total APLICATION OF FUNDS 1. Fixed Assets a. Gross Block b. Less: depreciation c. Net block d. Capital work in progress 2. Investments 3. Current assets, loans and advances a. Inventories b. Sundry Debtors c. Cash &bank balance d. Other current assets e. Loans and advances A B C D 34,33,20,000 15,00,000 20,64,78,093 2,72,46,552 57,85,44,645 34,33,20,000 6,59,82,149 26,60,79,193 2,64,08,809 70,17,90,151 As at 3103-2009 in Rs. As at 3103-2008 in Rs.

I.

II.

E 61,67,67,565 24,99,01,628 36,68,65,937 12,23,789 F G 13,86,17,371 1,04,04,786 64,26,985 86,602 5,50,82,762 30,42,48,506 38 36,80,89,726 55,28,005 61,5223,603 22,19,91,820 39,32,31,783

55,28,005 24,88,39,276 9,73,19,453 1,46,47,590 1,26,376 6,91,78,407 6,91,78,407

Less: Current liabilities and provision Net current Assets 4. Deferred tax asset (Net) (Refer notes to account) 5. Miscellaneous expenditure (to the extent not written off or adjusted) 6. Profit & loss account Total

25,16,35,169 5,26,13,337 10,57,51,122

17,63,98,869 25,37,12,223 4,93,18,129 0 0 70,17,90,151

0 4,65,62,455 57,84,44,645

THE PRUDENTIAL SUGAR CORPORATION LIMITED, NINDRA Profit &Loss Account for the Period Ended 31ST March 2010
Particulars INCOME Income from Operations Other income Increase(Decrease) in Stock Total EXPENDITURE Cost of materials consumed Manufacturing, personnel, selling Administrative and other expenses Depreciation Total Loss before prior period adjustment Add: Prior period adjustment Loss before Tax Add: Taxation of earlier year Add: Provision for deferred tax Less: Provision for deferred tax Profit (Loss) after tax Transfer from general reserve Profit/ (Loss) carried to balance sheet Earning per share-Basic and diluted M N E 60,50,42,840 15,18,67,866 3,59,40,331 2,80,22,124 82,08,73,161 16,72,24,923 16,72,24,923 2,52,674 5,64,32,993 11,10,44,604 6,44,82,149 4,65,62,455 68,24,30,272 12,80,77,643 2,76,66,535 2,67,93,825 86,49,68,274 6,75,78,434 0 4,24,63,939 2,51,14,495 2,47,029 97,15,826 1,51,51,640 4,93,30,509 6,44,82,149 Schedule Year ending 31-03-2010 in Rs. 76,16,97,563 13,26,132 10,93,75,457 65,36,48,238 Year ending 31-03-2009 in Rs. 90,59,44,332 3,35,905 2,62,66,471 93,25,46,708

J K L

39

(3.98)

0.51

BALANCE SHEET CORPORATION MARCH 31st 2009 to 31st 2010

S.No. I. PARTICULARS SOURCE OF FUNDS 1. Shareholders funds a. Share capital b. Reserve &surplus 2. Loan funds a. Secured loans b. Unsecured loans Total APLICATION OF FUNDS 1. Fixed Assets a. Gross Block b. Less: depreciation c. Net block d. Capital work in progress 0 2. Investments 3. Current assets, loans and advances a. Inventories b. Sundry Debtors c. Cash &bank balance d. Other current assets e. Loans and advances Less: Current liabilities and provision Net current Assets 4. Deferred tax asset (Net) (Refer notes to account) 5. Miscellaneous expenditure (to the extent not written off or adjusted) 6. Profit & loss account Total F G 25,36,80,746 6,30,28,430 63,57,179 97,447 2,23,89,831 34,55,53,633 22,45,00,120 12,10,53,513 10,37,91,737 I 0 48091884 619875440 34,14,10,300 55,28,005 12,23,789 55,28,005 13,86,17,371 1,04,04,786 64,26,985 86,602 5,50,82,762 30,42,48,506 25,16,35,169 5,26,13,337 10,57,51,122 0 4,65,62,455 57,85,44,645 A B C D E 61,90,97,537 27,76,87,237 34,14,10,300 61,67,67,565 24,99,01,628 36,68,65,937 32,33,20,000 15,00,000 20,82,83,690 8,67,71,750 61,98,75,440 34,33,20,000 15,00,000 20,64,78,093 2,72,46,552 57,85,44,645 As at 31-032010 in Rs. As at 31-032009 in Rs.

11.

THE PRUDENTIAL SUGAR CORPORATION LIMITED, NINDRA Profit &Loss Account for the Period Ended 31ST March 2011
Particulars INCOME 40 Schedule Year ending 31-03-2011 in Rs. Year ending 31-03-2010 in Rs.

Income from Operations Other income Increase(Decrease) in Stock Total EXPENDITURE Cost of materials consumed Manufacturing, personnel, selling Administrative and other expenses Depreciation Total Loss before prior period adjustment Add: Prior period adjustment Loss before Tax Add: Taxation of earlier year Add: Provision for deferred tax Less: Provision for deferred tax Profit (Loss) after tax Transfer from general reserve Profit/ (Loss) carried to balance sheet Earnings per share-Basic and diluted

J K L

76,16,97,563 13,26,132 10,93,75,457 65,36,48,238

90,59,44,332 3,35,905 2,62,66,471 93,25,46,708

M N E

60,50,42,840 15,18,67,866 3,59,40,331 2,80,22,124 82,08,73,161 16,72,24,923 16,72,24,923 2,52,674 5,64,32,993 11,10,44,604 6,44,82,149 4,65,62,455

68,24,30,272 12,80,77,643 2,76,66,535 2,67,93,825 86,49,68,274 6,75,78,434 0 4,24,63,939 2,51,14,495 2,47,029 97,15,826 1,51,51,640 4,93,30,509 6,44,82,149

(3.98)

0.51

BALANCE SHEET CORPORATION MARCH 31st 2010 to 31st 2011

S.No. PARTICULARS

As at 31-032011 in Rs.

As at 31-032010 in Rs.

I.

SOURCE OF FUNDS 1. Shareholders funds a. Share capital b. Reserve &surplus 2. Loan funds a. Secured loans b. Unsecured loans Total A B C D 32,33,20,000 15,00,000 20,82,83,690 8,67,71,750 61,98,75,440 34,33,20,000 15,00,000 20,64,78,093 2,72,46,552 57,85,44,645

41

II.

APLICATION OF FUNDS 1. Fixed Assets a. Gross Block b. Less: depreciation c. Net block d. Capital work in progress

E 61,90,97,537 27,76,87,237 34,14,10,300 0 61,67,67,565 24,99,01,628 36,68,65,937 34,14,10,300 55,28,005 25,36,80,746 6,30,28,430 63,57,179 97,447 2,23,89,831 34,55,53,633 22,45,00,120 12,10,53,513 10,37,91,737 I 0 48091884 619875440 12,23,789 55,28,005 13,86,17,371 1,04,04,786 64,26,985 86,602 5,50,82,762 30,42,48,506 25,16,35,169 5,26,13,337 10,57,51,122 0 4,65,62,455 57,85,44,645

2. Investments 3. Current assets, loans and advances a. Inventories b. Sundry Debtors c. Cash &bank balance d. Other current assets e. Loans and advances Less: Current liabilities and provision Net current Assets 4 . Deferred tax asset (Net) (Refer notes to account) 5 . Miscellaneous expenditure (to the extent not written off or adjusted) 6. Profit & loss account Total

F G

INDUSTRY PROFILE A Brief History of Sugar

Sugar as a commodity in its own right can be traced back several thousand years in China and India. A definite reference dates to 510 B.C. when soldiers of the Persian Emperor Darius saw sugar cane growing on the banks of the River Indus. They called it the reeds which produce honey without bees. Much later it was grown in Persia and the Arabs took it to Egypt. The word sugar is itself derived from an Arabic word. Sugar cane, to which all the earliest references refer, is a member of the grass family. It can grow up to 15 feet tall, with leaves at the top and a hollow stalk filled with a sweet juice or sap from which sugar can be extracted. A perennial tropical plant, it grows best in very warm climates. It is ready for harvesting after 10 to 20 months.

42

Alexander the Great (356-232 B.C.) introduced sugar to the Mediterranean countries, from where it spread down the east coast of Africa. SUGAR PRODUCTION By 600 A.D. the practice of breaking up the sugar cane and boiling it to produce sugar crystals was widespread. Six hundred years later, when Marco Polo visited China, he saw flourishing sugar mills. The mediaeval world was quick to recognize the difference sugar made to food, and a flourishing trade built up. By the middle of the fifteenth century there were plantations in Madeira, the Canary Islands and St. Thomas, and they supplied Europe with sugar until the sixteenth century, when manufacture spread over the greater part of tropical America, followed in the next century by the development of sugar exports from the West Indies. Old records show that raw cane sugar was being refined in Dublin and Belfast in the middle of the seventeenth century. SUGAR BEET The other main source of sugar, sugar beet, although known as a sweet vegetable, was not used as a commercial source of sugar until the second half of the eighteenth century, when Margrave, working in Berlin, discovered a technique for extracting sugar from the beet. This was later further developed by his pupil A chard. Its further development was due in large part to the activities of two major historical figures, Nelson and Napoleon. Nelson's victory at Trafalgar in 1805 was followed by a blockade which cut off continental Europe from cane sugar. Napoleon, hearing of the new technique for extracting sugar from sugar beet, decided in 1811 that sugar beet was henceforth to be the source of sugar for Europe. Thereafter cane sugar and beet sugar developed in parallel and often in competition.

SUGAR DEMAND
From the Middle Ages on sugar was for several centuries a commodity a little like pepper in price and usage. King Henry III of England had difficulty in obtaining as much as 3lbs for a banquet in 1226. It was given as a special present to lovers in Southern France and elsewhere. It formed the basis of trade between Barbary (Morocco) and England in Henry VIII's day. The demand for sugar was one of the major reasons for the slave trade for two centuries or more. During the 43

whole of the eighteenth century it was the direct or indirect cause of many an Anglo-French naval battle in the Caribbean. Demand for sugar increased with the growing world population, and even faster, perhaps because improving technology made its production cheaper. In the 1830's when the world population was 1,000 million, recorded sugar production was 800,000 tones a year. By 1900 it was 8 million tones. By the mid-1970 with a world population in excess of 4,000 million, world production of sugar was about 80 million tones, almost equally divided between sugar cane and beet. Today annual production stands at 115,000,000 tones. That factory was to prove that high quality sugar could beroducedonomically in Ireland from home-grown natural raw material. Later, the State took over the Car low factory, and in the mid-thirties, built others at Mallow, Thurles and Tuam. The cane is four times as effective as any other tropical plant in terms of production of harvestable dry matter per hectare per year, and the beet is twice as productive as any temperate zone plant. Put another way, it requires on average of only 0.07 hectares fixing solar energy to the equivalent of 1 million kilocalories of energy in the form of sugar. All other forms of edible energy require more, with beef at the top end of the scale, needing 7.7 hectares - over 100 times as much land as sugar. And, as fossil fuels are limited, sucrose, both as a renewable raw material, and as the pure organic chemical most cheaply produced on a world-wide scale, may well in future become additionally a feedstock for the production of such materials as plastics and detergents.

Sugar Industry in India

Sugar Industry in India is well developed with a consumer base of more than billions of people. It is also the second largest producer of sugar in the world. There is around 45 millions of sugar cane growers in India and a larger portion of rural laborers in the country largely rely upon this industry. Sugar Industry is one of the agricultural based industries. In India it is the second largest agricultural industry after textile industry

Statistics on Sugar Production

As to the statistics there were a total number of 571 sugar factories in India as on March 31, 2005 compared to 138 during 1950-51. These 571 sugar mills produce a total quantity of 19.2 million tons (MT). Sugar production in India increased from 15.5 MT in 1998-99 to 20.1 MT in 2002-03. Department of Agriculture and Co-operation, sugarcane production in 44

2004-05 is estimated at 232.3 MT from 237.3 MT in 2003-04. Sugarcane production is expected to reach 257.7 MT in 2006-07. The sugar production in the states largely depends upon monsoon. From 1998-03 good monsoon resulted a larger production of sugar in the country.

COST
There is considerable scope for further reduction in the cost of production of both sugarcane and sugar in India with liberalization of controls on the sugar industry. Consolidation of land holdings and corporate farming on the raw material side and expansion of capacity on the unit size are important developments and would lead to substantial improvements in productivity, thereby rendering India a cost-effective producer of sugar in the world. The area under sugarcane is presently less than 2% of total cultivable area in the country and about 3% of the irrigated area.

COMPANY PROFILE Company History

PRUDENTIAL SUGAR CORPORATION LTD (PSCL) is a public limited company promoted by M/S Mohan Breweries & Energy Efficient Diffuser Technology, 20 MW Power Plant involving generation of power through Renewable Energy Sources and 70 KLPD Distillery for manufacturing of 40 KLPD Fuel Ethanol & 30 KLPD Extra Neutral Alcohol. It is starting cane crushing during 2003. The licensed and installed capacity of the factory was 25000 T.C.D., which was has been expended to 45000 T C D in the year of 2006. The authorized share capital of the company is 5, 50, 00,000 equity share or Rs 10/- each. 45

Sugar plant The sugar plant has been established in 2002 and starting cane crushing in 21st, January 2003 with an installed capacity of 2500 ton per day. Later, this capacity has been expended to 4500 ton crushed per day. Sugar cane is crushed by cane diffuser machines. It is the germen technology. This plant is the second plant used this technology. Power plant Power generation has been successfully started in 13th January 2003 with a installed capacity of 20.4 MW per day. The generated power is exported to A.P. government as per requirements of A.P. Electricity Bard. While generating power, cane trash and tops, cane tipple are used as raw material, which are taken from neighbor villages. Distally plant This plant has been started in the year of 2005 onwards commercially with the capacity of 35K.M from chittoor and about 60 K.M from the Tirupathi Town abutting national high way 73 from Mumbai to Chennai. The sugar cane is supplied from the following 6divisions consist of 380 villages. 1) S.R. puram 2) Balaja kandriga 3) Pelar 4) Bakara pet 5) Penumur 6) Kothapalli Mitta

There are about8, 826 members and about 3000 farmers supplying sugar cane. The factory start cane crushing only during crashing season (November to April) and during the off season (March to October), the factory refines the raw sugar, which is imported from foreign countries. The various details of cane crushing are as follows. Staff Prudential Sugar Corporation ltd has around 200 employees both skilled and unskilled employees fall under three categories i.e., executives, technical and non-technical. 46

The executives are qualified with the respective degree required for the designation. Employees with experience and necessary skill are also promoted as executives. Technical Cades have the responsibility of supervising the productions process. Organizational Chart
CHAIRMAN

General Manager

Asst. General Manager

Production Department

Accounting Department

HR Department

Manager

Senior Accounting

Senior Personal

Skilled

Accountants

Skilled

Semi-Skilled

Clerks

Unskilled

System

Unskilled

A system is series of functions or activities within an organization work together for the aim of the organization. System of an organization refers to all rules, regulations and procedures, both formal and informal related to different departments. This will specify the powers and authority of a particular department. They have HR system, LAN system, Purchase and Stock system is Weighted Average Method.

47

Strategy Strategy re1rs to a set of decisions actions aimed at gaining competitive advantages. The concept of strategy includes purpose, mission, objectives, goals, major action plans and policies. A strategy reflects companys awareness of how, when and where it should compete, against whom it should compete and for what purpose it should compete. Prudential Sugar Corporation Limited has the Low Pricing Strategy The company has adopted diffuser technology, in which they can store the sugar cane juice for a week. With the help of this technology they can store when they have more raw material and can produce sugar if they dont have the sugarcane also. This is the second company in India which has adopted the diffuser technology. The technology which has used in the organization reduces the man power. Hardly two persons can run the entire Distillery with the help of two systems. They used to operate entire process through these systems. So with the help of the technology the organization reduced the man power. So they can reduce the production price. The electric power which the organization is using is produced by the firm itself as a byproduct while producing the sugar and Extra Neutral Alcohol. By using all these company reduce the production cost.

Pricing Strategy of the Company Raw materials of sugar cane Transportation Conversation Process Packaging material Final Product Price

Skill The skill is one of the most crucial attributes or capabilities of an organization. The term skill includes those characteristics which most people are to describe a companys distinctive competence. 48

In PSCL all the employees at different levels are following multi disciplinary skills in order to complete their works successfully and for the development of their organization.

Style TAN, Internet Department hand The company has the Democratic decision making style for making decisions. Where one person i.e., who is in the higher position will make decision and the others will follow it.

Communication Style M.D Directors work Department Head Group Head Head of Department Manager Deputy Manager Staff

Staff

49

The employees in sugar sugars and Alloyed Products limited from based on their qualification experience and skill fall three categories i.e., executive, technical and non technical The executives are qualified with the respective degree required for the designation. Employees with experience and necessary skill are also promoted as executives. Executives have more responsibilities, which include directing, supervising, decision making research and development. Technical cadre in between executive and non-executive cadre is known as supervisions. Technical cadre has the responsibility of supervising of the production process. The total no of employees of sugar sugars is around 200 employees. Shared Value Guiding concepts, fundamentals ideas around which a business is built must be simple, usually stated at abstract level great meaning inside the organization even through outside may not see or understand them. It refers to a set of values and aspiration that goes beyond the convention formal statement of corporation objectives. Shared values are the fundamental ideas around which a business is built. They are its main values. Prudential Sugar Corporation Ltd, they presents their faith believe core values they strive towards the achievement of their customer satisfaction, to provide safe working condition, to maintain discipline at all levels, to provide a friendly, congenial working atmosphere, employees satisfaction to the maximum. Their main concern is for their employees and their welfare. Equal importance is given for the environment protection and towards production. Swot Analysis Strength Good Technology Dedicated officers and staff Fast Communication system

Modern Technical machinery Good Quality of Product Customized Products with minimum lead time

Weakness 50

Change of technology is difficult to adopt since it cost for single machinery Centralized management decision making takes time.

Opportunities Getting the quality raw material due to the high competition in the suppliers As the demand for the sugar is increasing the company can increase its production

and can increase its sales.

Threats Competition from local and regional companies Fast change of Technology Competitiveness in Pricing Unavailability of required number if skilled labour in the respective areas with

innovative skills in technical and similar related fields. The cost of the raw material sugar cane has been increased in turn of the cost of

product is increased.

51

PRODUCT PROFILE

Prudential Sugar Corporation ltd produces the following products. Sugar Molasses Begasse Filter-cake Electrical power Fertilizers

Sugar cane Sugar cane cultivated by the growers or promising varieties in terms of sugar content and yields. Cultivation techniques maturity of (decided by the cane personnel) harvested and supplied to the factory in trucks fresh less tops and root. Trucks are weighed with cane on Weigh Bridge and unloaded on the moving cane carried. Mechanical un-loaders do unloading. Again empty truck in weighted to assertion in the weight of cane unloaded.

Milling Provided with a tandem of four mills and each mill is provided with three rollers. On the cane carried for cane preparation cane knives driven by motor and followed by a fibrizer driven steam turbine are provided to chop the cane into small pieces and fiber to make the process more effective assured quantity of water is added to mills. After extraction of juices, the waste materials are called biogases. 52

Boilers Provided with 2nos of boilers of water evaporation capacity of 25 MTs per hour steam at 300 P sig (21Kgs) Steam is used for driving the fibrizer, mills by turbines and generator power, by steam turbine alternator. For boilers main fuel is bagasses. Surplus biogases are sold to paper industries.

Clarification A juice extracted from sugar cane in mills is weighed in automatic weighing scale. It is preheated in juice heaters to 50-750. Then it is limited and sulphited simultaneously. Juice will be coagulated from and will not settle. To induce setting cheaply and abundantly available positive is to be added I.e., namely lime in slurry from also called mill of lime, by using addition of such alkaline medium is again brought down to natural PH medium by bubo line of sulphur dioxide gas. This gas is produced in sulphur burns and bubbled in preheated juice. By the aid of compressed aid passing through sulphur burners as such juices are kept at slightly alkaline medium says 7.1 to 7.2. Then this treated juice is heated again in other row of juice heaters to 102 c and to send to graver. Graver is a big tank where seating is taking pace. Continuously, such juice is sent and drawn from with the detention time juices of about 3.03 hours, in u tube principles.

Evaporation In graver, juices will be well settled and will have golden yellow colors of 7.0 P.H (neutral). This clear juice will contain more than 85% of water and then remaining sold (sugar maximum + a little sugar). In evaporate above 75% of water is removed and made syrup. This consists of one vapor cell and is followed by four bodies. Boiling is the under vacuum using exhaust stream from turbines (spend steam) bodies containing a calandria with no. of tubes. Both ends of tubes emerging out through tube plates and above this calandria vapor space or shell. Stream circulated through tube plates and heating the outer point of juices is brought well below its original boiling point. In the vapor cell alone exhaust stream is admitted into the calandria produced vapor to its subsequent body and soon. Vacuum is helping is drawing vapor from the preceding bodies and this boiling is called multi effects 53

boiling and maximum fuel economy. Thus, when juices are emerges out from lost body it will be syrup, losing about 75% bob water.

Vacuum filters Mud settled in graver is taken in rotary filter to extract juices from it and waste is called filter cake sent out and used as manner. Extracted juices is again mixed juices from mills after weighment tank and takes the path of process along with mills juices in acyclic forms.

Sulphitation & Syrup The syrup from evaporator lost body is again sulphited to beach to get white sugar and sent to pan supplied tank.

Pans Pan bodies are similar to evaporators into construction with different design. Materials are individually boiled in four numbers under vacuum. When the syrup is further boil in pans, when the sulphur saturation point reaches crystals come out it is again boiled by addition kept in pan and the rest to portions sent to receivers then again pan is boiled. This process will help growth or crystal as desired by us. Three boiling are bone A, B, C. these are called mass cults. All this mass cutie (sugar + molasses) is purged in centrifugals respectively sugar and molasses are separated. Pans are boilers on vapor produced from vapor cell.

Centrifugals Such made mass cuties are dropped in crystallizers (storage take with stirring mechanism) from crystallizers tank into centrifugal machines and sugar and molasses. Centrifugals machines contain a basket filtered with mesh and screen of small open and will not allow sugar crystals to pass through but only molasses when one machine is changed with 54

masscults and spun at 1500 RPM molasses get out and collect in tanks. Remains in basket washed and dried by steam. Then dropped on hopper (to and for) shaking medium sugar will get dry when flowing and gales and sugar (filtered with meshes screened and bagged. Bags weighed on P.O. scales of 100 kegs and sent to go down. Molasses got from masscults; sugar and molasses from B masscults and sugar from C masscults (final) are again boiled in pans in cyclic manner. Molasses got from C masscults called final molasses is a waste and sent to storage tanks (raw material from Alcohol industries). Sugar is graded in accordance when ISS (Indian sugar standards) in terms of size, it is classified as small, medium and large i.e., -29, S-30. As the demand in the market is from S30 it is made in the fact.

55