Docstoc

Ganesh Agriculture

Document Sample
Ganesh Agriculture Powered By Docstoc
					              I am student of B.B.A. programmed is necessary to take training of
industry. Industrial training plays a very important role to improve knowledge for
student of B.B.A.

                 The main objective of the industrial training to develop the student
ability. It is the opportunity for the student to show their skills and efficiency student
will able to develop their internal strength by the industrial training.

               I have completed My industrial training of “Ganesh Raj Industries”.

               By the industrial training. I learn many partial views and different types
of plant organization. During the training .I have taken of training different
department of organization and I have prepared a project report on their industry these
report shows the history, department and performances of the company.




        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                         1
I have great pleasure to prepare a present report on industrial visit. Which we did
during the second year B.B.A. academics season the prime objective for the visit to
enquire comprises and analytical study of industrial environment.


    My special thanks to Mr. ASHESH H AVINASHI (HR manager), who gives
me permission in the company and provide the all scope and facilities for the
information. He is encouraging and motivating through the study. His suggestions and
guidance were very helpful in study of whole marketing and account department. All
officers have given me valuable guidance and co-operation during industrial training
and marketing research


      I am student of T.Y.B.B.A. class are very thankful to our collage principal Dr.
B.S.AGRAWAL and highly thankful to the able leadership of professor Mr.
HARSHAD PATEL and who accomplishes guided and encourage us during the time
of industrial training.




  I am really obliged to all those entire union and management manager, chief
executive and other person of the industry and spent their valuable time for answering
the hearting provides as the other facilities.




        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                  2
                              EXECUTIVE SUMMARY


         Ganesh Raj Industries is a manufacturing Company of agriculture implements
since form 1992 and make equipment in the name of “Ganesh” brand company has
produced farming equipment liked multicrop threshers, rotavaters, post hall digger,
potato platter & Potato digger.
         Ganesh Raj Industries is first a ISO 9001 company in Gujarat an Agriculture
field.
         Company make ISI marked.
         The main object of Ganesh Raj Industries is to produce different tyres of
product & provide to people at a lowest price.




         COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                             3
No                    SUBJECT                   Page
                                                No
1    GENARAL INFORMATION                    5

     HISTORY OF COMPNY

     ABOUT COMPANY

     VISION & MISSION

2    FINANCE DEPARTMENT                     13
     RATIO ANALYSIS
3    FINDING                                41
4    CONCLUSION                             42
5    BIBLIOGRAPHY                           43




     COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU      4
HISTORY & DEVELOPMENT OF THE COMPANY


   HISTORY


  Ganesh Raj Industries is started by Mr. Amrutbhai Patel in vadpura with a small
  scale unit 8 manufacturing agriculture equipment
  In 1992 Company has been depleted Mini Divela Thresher operated bioelectronics
  motors.
  1993 Developed tractor operated multicrop thresher for two or three crop
  Developed tractor operated multicrop thresher with Automate
  The Owner of company is Mr. Amrutbhai Patel.




                                Mr. Amrutbhai Patel.




      COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                  5
                                  ABOUT COMPANY

        orgn is the foundation upon which the where structure of managements built
orgn is one of the fundamental functions after having thought out the objective or oral
of an enterprise & the course of fatten to be followed, we needed to give practical share
to the work to be performed to meet the objective,
       In the care Ganesh Raj Industries It was a limited company various divisions or
departments of company are performing separate functions such as manufacturing.
Name                                            : Ganesh Raj Industries
Form of Org                                     : Limited Company
Date of Registration                    :
Date of commencement of Business :
Location of Factory                         :
Name of the Business House              :
Sector                                                 : Private Sector
Website :
Registered Office                           :
Controlling head Office                         :
Ganesh Raj Industries, Kalol-Mehsana,
High way, Vadpura, Gujrat, India -382705




         COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                  6
    GROWTH & DEVELOPMENT OF COMPANY


       This company believed that “The company having strong presumption will in
the long run” with this strong in the connection company stated its ethical operation in
the states of Gujarat on successful launch.
In total year of the company has achieve a initial growth rate of 100% in successful
year company also export its products outside of India


                  SIZE OF UNIT FROM OF ORGANISATION

    ABOUT ORGANISATION
Organisation is the foundation upon which the where structure of managements built
orgn is one of the fundamental functions after having thought out the objective or oral
of an enterprise & the course of fatten to be followed, we needed to give practical
share to the work to be performed to meet the objective,
       In the care Ganesh Raj Industries It was a limited company various divisions
or departments of company are performing separate functions such as manufacturing.
=>Name                             Ganesh Raj Industries
=>Form of Org                 Limited Company
=>Sector                            Private Sector
=>Website                     www.ganeshraj.com
                                       Address
                        Ganesh Raj Industries, Kalol-Mehsana,
                      High way, Vadpura, Gujrat, India -382705




        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                  7
                        MANUFACTURING PRODUCT


      PRODUTS
=> MINI DIVELA THRESHER
Raw Material: M.S Iron Casting
V. Belt, Bearings.
Quality: So Number Yearly.
Use for: Davila Cleanings.


=> MULTI CROP THRESHER
Raw Material: Angle, Channel
Casting, Tires, Tubes, Wheel plate
Bearing & V Belt
Quantity: 500 to 600 numbers
Use: For cleaning crop from seeds like Soya bin,
Mustard, wheat, Beans, sunflowers


=>    MULTI CROP THRESHER AUTOMATIC
Raw Material: Angle, Channel
Casting, Tires, Tubes, Wheel plate
Bearing & V Belt
Quantity: 500 to 600 numbers


Use: For cleaning crop from seeds like Soya bin,
Mustard, wheat, Beans, sunflowers




        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU   8
=> POST HALL DIGGER
Raw Material: Iron Casting
Bearings, lubricants
Quality: 100 Numbers
Use for : The Equipments operated by the tractor & Drilling in land up to 3.5 FF to 4
FF Depth, 2 FF Width.


=> POTATO DIGGER
Raw Material: Rubber, Iron, Casting, Tires, Tubes, V belt
Quantity: 100 numbers
Use: Planning Potato in Land Automatic


=> POTATO PLANTER
Raw Material: Rubber, Iron, Casting, Tires, Tubes, V Belt
Quantity: 100 numbers
Use: Planting Potato in Land Automatic




        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                               9
                               TIME KEEPING SYSTEM


               The company Ganesh Raj Industries has also adopted an advance
technological time keeping system which functions for the accurate computing
workers/employees’ attendance and over time working hours. The adopted time
keeping system is illustrated as under.
       Generally, office time is from 11am-5pm. The company runs its production 24
hours, so the company had arranged in three shifts.




                      Shifts           Timing
                      A                8 am To 4 pm
                      B                4 pm To 12 pm
                      C                12 pm To 8 am


                               LUNCH TIME:- 12pm-1pm


The workers are allowed to work for eight hour in a day in cause. They want to take
the overtime one has to first take the permission of the shift engineer after the
permission is granted he can do over time




        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                  10
                               EMPLOYEE SERVICE


                    1) MEDICAL FACILITY


       Ganesh Raj Industries provides medical facilities to the workers at any
contingency accident. The company immediately transfers the worker to near hospital
at their expense.


                    2) CANTEEN FACILITY


       The Ganesh Raj Industries provides food to their employees at very low rate
and if the employee is permanent, the employee has to pay half the rate and the
company itself pays the other half i.e. Rs.10


                    3) OTHER FACILITY


       The. Ganesh Raj Industries gives many facilities to the worker. They are given
a proper dresses, cap, mask and helmet. They give house for the residency of worker.
There are doing a work in company and who have maximized attendance in the work,
so the company provides extra facilities for his own.


       Company gives 8.33% as Diwali bonus according to their attendance.
Loans are given according to the requirement i.e. for education of the children of
employee or for the marriage of their childrens.




        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                 11
                                 VISION & MISSION


                   1) MISSION


       To manufacturing market and service products of International
Standard Ensure that all company process is carried to achieve highest levels of
customer satisfaction. Keep an employee centric-focus in all the operations
Foster innovation and creativity at all levels. Deliver value to all stakeholders of the
company.


                   2) VISION


       To emerge as India’s finest manufacturing of ceramic tiles using the latest
technologies delighting customers and enhancing share holder value on a consistent
and sustainable basis.
sure that all company process is carried to achieve highest levels of customer
satisfaction.




        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                       12
INTRODUCTION: -

         “Financial department is nothing but the part of over all management
         which is concern with rising of funds in most economic and suitable
         manner and making it as profitable as possible.”
         In the past time business organization make provision at time when it is
         wanted. But nowadays, financial management is very important. It plays a
         significant role in all over the organization because money is the lifeblood
         of all the organization. If the finance condition of the organization is
         strong than prestige of the company will increase.
         Financial management is concerns with the three major decisions are as
         follows.
             (1) Investment Decision,
             (2) Financial Decision,
             (3) Divided Decision.
  GANESH RAJ Company is partnership organization so that capital structure of
  the company is limited.

  CAPITAL STRUCTURE: -

  GANESH RAJ. Is concern as the private company and also partnership firm that
  can not issue any type of shares or debenture at all. The company has either its
  own partner capital or some borrowed from relating & from bank.

  MANAGEMENT OF INVENTORY: -

  GANESH RAJ. Hold inventory of 40% of total working capital. According to the
  last five year it means that inventories occupy more than 50% position in total
  working capital this is why GANESH RAJ.




      COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                13
                      RATIO: -
Ratio is defining “ The identical quotient (formula) of two mathematical expression”.
Ratio is, “The relation between two or more things”.
“The relation between two accounting figures, expressed mathematically is known as
financial ratio”.


                 RATIO ANALYSIS:-
In financial accounting our study is limited to record business transitions, preparing
trial balance, to check arithmetical accurately and preparing final accounts to show
net profit or loss and financial position of the business.


But the function of accountants does not end at this stage. But he should be able to
determine the figures display by financial position of business. For this he must have
to prepare another figures, which are useful for outside investors. This is known as
ratio. Outside investors such as share holders creditors, bank etc…. are also interested
to know the actual position of the business, its earning capacity, present position and
future possibilities for investing his money. for this ratio are very important.
A ratio is expressed in three different ways. It may be expressed in proportion
between two figures. For example. 2:1 it also expressed in percentage (%) from for
ex. 30%. It also expressed in time like 3 times, 4 times.




        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                     14
IMPORTANCE OF RATIO ANALYSIS

As a tool of financial management, ratios are of crucial significance. The
importance of ratio analysis lines in the fact that it presents facts on a comparative
basis and enables the drawing of inferences regarding the performance of a firm.
Ratio analysis is relevant in increase the performance of firm respects of the
following aspects: -

       (1) Liquidity position
       (2) Long- term solvency
       (3) Over all profitability
       (4) Inter- firm comparison and
       (5) Trend analysis.
       (1) Liquidity position: - With the help of ratio analysis conclusion can be
            draw regarding the liquidity position of the firm. The liquidity position
            of the firm would be satisfactory if it is able to meet its have the ability
            to meet its short term liabilities if it has significance liquid funds to
            pay the interest on its short maturing debt usually within a year as well
            as to repay the principal. This ability is reflected in the liquidity ratio
            of the firm. The liquidity ratios are particularly useful in credit analysis
            by banks and other suppliers of short-term loans.
       (2) Long term solvency ratio analysis: - Equally useful for assessing the
            long-term financial viability of the firm. This aspect of the financial
            position of a borrower is of concern to the long-term creditors,
            securities analysis and the present and potential owners of a business.
       (3) Operating efficiency: - yet another dimension of the ratio analysis,
            relevant from the viewpoint of management is that it throws light on
            the degree of efficiency in the management and utilization of its assets.
            The various activity ratios measure this kind of operational efficiency.
            Infect, the solvency of a firm is, in the ultimate analysis; dependent
            upon the sales revenues generated by the use of its assets total as well
            as its components.




    COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                        15
 (4) Overalls profitability: -unlike the out side parties which are interest
     in one aspect of the financial position of a firm, the management is
     constantly concerned about the over all profitability of the enterprise.
     That is, they are concerned about the ability of the firm to meet its
     short term as well as long term obligation to its creditors, to ensure a
     reasonable return to its owners and secure optimum utilization of the
     assets of the firm. This is possible if an integrated view is taken and all
     the ratios are considered to gathered.
 (5) Inter-firm comparison: -Ratio analysis not only throws light on the
     financial position of a firm but also serve as a stepping stone to
     measures. This made possible due to inter firm comparisation and
     comparisation with industry average. A single figure of a particular
     ratio is meaningless unless it is related to some standard or norm.
 (6) Trend analysis finally:- Ratio analysis enables a firm to take the time
     dimension into account. In other words if the financial position of a
     firm is improving or deteriorating over the year. This is made possible
     by the use of trend analysis. The significance of a trend analysis of a
     trend analysis of ratio lies in the facts that the analysis can know the
     direction of movement, that is, if the movement is favorable or
     unfavorable. For example, the ratio may be low as compared to the
     norms but the trend may be upward. On the other hand, though the
     present level may be satisfactory but the trend may be a declining one.




COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                    16
   LIMITATION OF FINANCIAL ANALYSIS

Some of the limitation which characterized ratio analysis are (1) difficulty in
comparisation (2) Impact of inflation and (3) conceptual diversity.



Difficulties in comparison: -



Such comparisation are vitiated by different procedures adopted by various firms.
The difference may relate to:



      (1) Different in the basis of inventory valuation
      (2) Different depreciation methods
      (3) Estimated working life of assets, particularly of plant and equipment.
      (4) Amortization of intangible assets like goodwill, patents and so on.
      (5) Capitalization of lease
      (6) Treatment of extraordinary items of incomes and expenditure and so on.




    COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                   17
    Impact of inflation: -

The second major limitation of the ratio analysis as a tool of the financial analysis is
associated with price levels changes. This is a weakness of the traditional financial
statement, which are based on historical costs. An implication to this future of the
financial statement analysis is that assets acquired at different periods are, in effect
shows at different prices in the balance sheet, as they are not adjusted for changes in
the price level.




    Conceptual Diversity:-

    Yet another factor, which influences the usefulness of ratio, is that there difference
    of opinion regarding the various concepts used to compute the ratio. There is
    always room for diversity of opinion as to what constitutes shareholder equity,
    debt, assets, profit and so on. Different firms may use these terms in different
    senses or the same firm may use them to mean different things at different times.




        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                       18
                 RETURN ON SHAREHOLDER’S FUNDS:
In order to judge the efficiency with which the proprietor’s fund are employed in
business, this ratio is ascertained, and proprietor’s equity or proprietor’s funds include
share capital & reserve. It is of great practical importance to the prospective investors,
it enables the profitability of a company to be compared with that of enough in
relation to the risks that they undertaken. This ratio shows what amt of dividend is
likely to be received on shares. Naturally when return on shareholder’s funds is to be
calculated, the profit should be after interest and tax i.e.

                PAT-profit after tax.



Here, shareholder fund =E. share capital + P. share capital + Reserve & surplus +
Preliminary exp.

This ratio shows the earning capacity of the business on owner’s capital employed.



Net profit (PAT)

                ROSF = shareholder funds

    YEAR: -2006-2007

                =52,000,000 + 30,771,716.74 –3,301,054.60

                =79,470,662.14

             == 21,116,640.62      x 100

                = 79,470,662.14 = 26.57




        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                   19
   YEAR: -2006-2007

               = 52,000,000 +48,138,629.36 – 2,879,447.60 = 97,259,181.76



               =28,238,882.31 x 100

                 97,259,181.76


               = 29.03




This ratio is high, is good for business because of investors invest the money in
business next time that’s why high is good for business. In year 2004 ratio is, 26.57%
& 2005 ratio is 29.03%, which is net satisfied position of business.


      RETURN ON EQUITY SHARE HOLDERS FUNDS: -
= NET PROFIT (PAT) – PREF.DIVIDEND
 EQUITY SHARE HOLDERS FUNDS


YEAR: -2006-2007


          = 19,532,892.52 X 100
            79,470,662.14


          = 24.58




YEAR: -2006-2007


          = 24,991,411.31 X 100
            97,259,181.76
         = 25.69


        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                20
                      ROESF




                                         2006-2007
                                         2007-2008




Return on equity shareholders funds shows how well the firm has used resources the
equity funds. The high ratio is good for the firm. Ideal = 20 %. This ratio is for
company.




      RETURN ON ASSETS: -




               ROA = NET PROFIT (PAT) + INTEREST X 100
                               TOTAL ASSEST


TOTAL ASSEST = FIXED ASSEST + CURRENT ASSEST




YEAR: -2006-2007
            = 19,532,892.58 + 33,450,994 x 100
                         372,127,435.3
            = 14.23

YEAR: -2006-2007
            = 24,991,410.84 +35,247,223 X 100
                        396,934,274
            = 15.17



        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                 21
                                     ROA




                                                        2006-2007
                                                        2007-2008




         This ratio shows the middle position of business. In the 2006 ratio is 14.23%
& 2007 ratio is 15.17% that’s why satisfied position in 2007.




        EARNING PER SHARE (EPS): -


       This EPS is calculated by dividing the profit after taxes by total number common
       share outstanding.


       EPS =                profit after tax
                Number of common shares outstanding


YEAR: -2006-2007


                = 19,532,892.58 X 100
                    52,000,000


                = 37.56


YEAR: -2006-2007


               = 249,914,10.84 X 100
                  52,000,000
               = 48.06



          COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                               22
                           EPS


       60

       40
                                                    EPS
       20

        0
            2006-2007     2007-2008




EPS shows if ratio is high good for company.48.06 ratio is very good for company.




       COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                 23
      ACID TEST RATIO: -


            The measure of absolute liquidity may be obtained by comparing only
            cash & bank balance as well as readily marketable security with liquid
            liabilities. This is very exacting standard of liquid value of quick assets
            by liquid liabilities. Here, quick assets don’t include both stock &
            debtors, because payments for debtors would not be received
            immediately when liquid liability is to be paid. Thus, the assets
            comprise only cash, bank and readily marketable securities only.


            Acid test ratio = Quick assets
            Liquid liabilities


            Here, Quick assets =Current assets –Debtors –Stock.
            Normally, this ratio is 0.5:1 so the satisfied position.




YEAR: -2006-2007


            = 62,893,785.2
              21,740,145.00
            = 2.89
YEAR: -2006-2007
            = 105,980,914.1
              264,936,31.84


            = 4.00




       COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                 24
                     ACID TEST RATIO


     4
     3
     2                                   ACID TEST RATIO
     1
     0
         2006-2007 2007-2008




Normally ideal acid test ratio is 0.5 =land 4.00 is good for company.




         COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                   25
         PROPRITORY RATIO:-


  = PROPRITORY FUNDS X 100
          TOTAL ASSEST


          PROPRITORY FUNDS =EQUITY FUNDS + PREF.CAPITAL + RESERVE
& SURPLUS – PRILIMINARY EXP.


          This ratio shows the proportion of proprietary funds to the total assets
employed in the business. The proprietor fund’s or shareholder’s funds consist of
share capital & reserve & surplus.
          The higher the ratio, the stronger the financial position of the interpreter as it
signifies that the proprietors have provided larger funds to purchase the assets. This
ratio cannot exceed 100%. If it is 100% that mean company cannot use any outside
funds.




          YEAR:-2006-2007


                  = 79,470,662.14 X 100
                     372,127,435.3


                   = 21.35
         YEAR: -2007-2008


                  =97,259,181.7 X 100
                    396,934,274
                  =24.50




          COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                     26
            PROPRITORY RATIO




                                         2006-2007
                                         2007-2008




This ratio shows the portion of the capital and capital provide by out spiders.
This ratio is good for company.




 COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                     27
      DEBTOR’S RATIO: -


When the firm makes credit sales to its customer’s debtors are create.
Debtor is accepted to convert into cash over a short period of time.
This ratio shows the no. of days taken to collect the amount of credit sales.


This ideal ratio is maximum 45 days.


Debtors ratio = Debtors x 360
                 bill receivable

Credit sales
YEAR: -2006-2007
               =112,673,885.45 x 360
                573,740,860.00
               = 70days


YEAR: -2007-2008


               = 124,470,062.41 X 365
                639,743,859.00
               = 71days




        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                            28
                      DEBTORS RATIO


       71

   70.5
                                              DEBTORS
       70                                     RATIO

   69.5
            2003-2004 2004-2005


DEBTOR TURN OVER RATIO =                  360




      DEBTOR RATIO



YEAR: -2006-2007


              = 360
                 70
              = 5.14 This ratio is good for company.
YEAR: -2007-2008
              = 365
                71
              = 5.14 this ratio is good for company.




        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU    29
               FIXED ASSETS TURNOVER:-


              To ascertain the efficiency & profitability of business, the total fixed
              assets are compared to sales. The more the in relation to the amt
              invested in fixed assets, the more efficient is the use of fixed assets. It
              indicates higher efficiency. If the sales are less as composed to
              investment in fixed assets, it means that fixed assets aren’t adequately
              utilized in business. Of course, excessive sell is an indication of over
              trading & is dangerous.


              Fixed Assets Turnover = Net sales
                                          Fixed assets


YEAR:-2006-2007
              = 573,740,860.00
                119,958,452.73
              = 4.78
YEAR: -2007-2008
             = 639,743,859.00
               121,251,431.85
             = 5.27


This ratio shows good position of business because increase turnover than increase
sales. In 2006 turnover is 4.78 times & 2007 turnover is 5.27times.Thus 2007 is better
than 2006.




        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                     30
This ratio shows good position of business because increase turnover than increase
sales. In 2006 turnover is 4.78 times & 2008 turnover is 5.27times.Thus 2007 is better
than 2007.



                           FIXED ASSETS TURNOVER RATIO


                   5.4
                   5.2
                     5                                  FIXED ASSETS
                   4.8                                  TURNOVER
                                                        RATIO
                   4.6
                   4.4
                         2006-2007 2007-2008




This ratio shows good position of business because increase turnover than increase
sales. In 2006 turnover is 4.78 times & 2007 turnover is 5.27times.Thus 2007 is better
than 2006.




        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                 31
                   TOTAL ASSETS TURNOVER: -




The amounts invested in business are invested in all assets jointly and sales are
effected through then to earn profits. So in order to find out relation between total
assets to sales.


Total Assets Turnover = Net sales
                            Total assets


YEAR: -2006-2007


                   = 573,740,860.00
                     372,127,435.5
                   = 1.54


YEAR: -2007-2008


                   = 639,743,859
                    396,934,274
                   = 1.61



              TOTAL ASSETS TURNOVER


   1.65

     1.6                                   TOTAL
                                           ASSETS
   1.55                                    TURNOVER

     1.5
           2006-2007 2007-2008


This ratio shows good position of business. In 2006 turnover is 1.54 times & 2007
turnover is 1.61 times. Thus 2007 is better than 2008.



           COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                 32
RETURN ON EQUITY CAPITAL: -


               = Net Profit (PAT) – Prêt Share
               Equity share capital


    YEAR: -2006-2007


               = 19,532,892.58 X 100
               52,000,000


               = 37.6


    YEAR: -2007-2008


              = 24,991,410.84 X 100
                52,000,000


              = 48.06



            RETURN ON EQUITY CAPITAL


    60

    40                                 RETURN ON
                                       EQUITY
    20                                 CAPITAL

     0
         2006-2007 2007-2008




This ratio is good for company.




         COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU   33
       STOCK TURNOVER: -
This ratio indicates the efficiency of the firm in producing and selling its products.
The inventor shows how rapidly the inventory is turning into cash through sales.
Generally, a high inventory turnover is good for management.


This stock turnover in times.


If the cost of goods sold is not available then this ratio is calculated basis of sales.


                Stock Turnover = Cost of Goods Sold
                                     Average Stock




        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                       34
     CURRENT RATIO: -


           The most widely used ratio shows the properly of current assets to
           current liability. It is also known as “Working Capital Ratio” as it is a
           measure of working capital available at a particular time. The ratio is
           obtained by dividing current assets by the current liability. It is
           measure short-term financial strength of business.


           The current ratio measures the firm’s short-term solvency. It indicates
           the available of current assets in rupees in every one rupees of current
           liability.


           This ratio generally 2:1 is shows satisfactory position.


           Current Ratio = Current Assets
                            Current liability
YEAR = 2006-2007


           = 252,168,791.6
             34,715,512.35
           = 7.26


YEAR = 2007-2008


           = 275,682,842.5
             47030710.41
           = 5.86




      COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                   35
                  CURRENT RATIO


     8
     6
     4                                    CURRENT
                                          RATIO
     2
     0
         2006-2007 2007-2008




This ratio shows satisfied position of business. In 2006 ratio is 7.26:1 & 2007 ratio is
5.86:1 thus, in 2006 position is better than 2007.s




         COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                 36
           NET PROFIT RATIO: -


Net profit is obtained when operating expenses; interest and taxes are subtracted from
the gross profit. The net profit margin ratio is measured by dividing profit after tax by
sales:


                  Net profit margin = Profit after tax
                                          Sales


YEAR = 2006-2007


                  = 19532892.58
                    376733278.00
                  = 5.18


YEAR = 2007-2008


                  = 24991410.84
                    639743859.00
                  = 3.90

                     NET PROFIT RATIO


        6

        4
                                           NET PROFIT
        2                                  RATIO

        0
            2006-2007 2007-2008




            COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                               37
Net profit margin ratio establishers a relationship between net profit and sales
indicated management’s efficiency in manufacturing. Administrating and selling the
products.


A firm with high profit margin can make better use of favorable condition. The high
profit margin is good for company.




        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                              38
                             GANESH RAJA INDUSTRIES
                   AUDITED FINANCIAL BALANSHEET AS ON 31.03.2007
                                   (RS.IN LACS.)


                                                      2006     2007
SOURCES OF FUND
(1) SHARE HOLDER'S FUND
SHARE CAPITAL                                        689.94   689.94
RESERVE & SURPLUS                                   4051.46 4361.12
TOTAL                                                4741.4 5051.06
(2) LOANS FUND
SECURED                                            11895.91 11618.18
UNSECURED                                            569.34   591.97
TOTAL                                              12465.25 12210.15
DEFFRED TAX LIABILITY                               2056.56 2036.62
(NET)
TOTAL                                              19263.21 19297.83
APPILCATION OF FUNDS
(1) FIXED ASSETS
GROSS BLOCK                                        25274.06 25584.07
LESS: DEPRECATION                                  11080.86 12083.62
NET BLOCK                                          14193.23 13500.45
ADD: CAPITALWORK IN PROGESS                            3.83    41.77
TOTAL                                              14197.06 13542.22
(2) INVESTMENTS                                       85.62    72.55
(3) CURRENT ASSETS
LOANS & ADVANCES
INVENTORIES                                         5899.59 6453.24
SUNDRY DEBTORES                                     2801.79 3628.49
CASH & BANK BALANCE                                  314.53   446.13
LOANS & ADVANCES                                     504.92   708.17



              COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU             39
TOTAL                                                  9520.83 11236.03
(4) LESS: CURRENT LIABILITIES & PROVISIONS.
LIABILITIES                                            4425.66 5469.61
PROVISION                                                114.64   83.37
TOTAL                                                    4540.3 5552.97
NET CURRENT ASSETS                                     4980.53 5683.06
(5) MISCELLANEOUS EXPENDITURE


TOTAL                                         21179.07 19263.21 19297.83




              COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                 40
                                 FINDING


1. The company has good reputation in the market.


2. The workers of the company are so well trained that it enables the company to
   make the best utilization of time, money and materials.


3. Good team work can be seen among employees the company has less need of
   supervising work.




    COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                             41
                                    CONCLUSION


It was our great experience to do industrial visit of “Ganesh Raj Industry” We have
to create faith in the person to answer your question but once you know the trick
nothing like it. It will be too easy to do this work again.


   After training the, “Ganesh Raj Industry”, we have gained more amount of
practical knowledge as the educational tour was very much useful to us. The main
purpose of the industrial visit is to develop the practical experience of the industrial
activities which cannot only be earned through books. It has helped me to gain
knowledge.




        COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                                 42
                               BIBLIOGRAPHY




   1. Web site


        www.ganeshraj.com


   Most of information was given by company itself in industry training. This is
great experience for us to training.


   2. BOOKS:


     Advance Financial Management      -- TYBBA




    COLLAGE OF COMPUTER & MANAGEMENT STADES,VADU                             43

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:11
posted:7/15/2012
language:English
pages:43