COST MANAGEMENT AND CONTROL

CHAPTER–1
INTRODUCTION

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INTRODUCTION:
In the plant training is required for the purpose of studies and getting exposure to
the working in the organization and use also come in to know the difference between the
theoretical and practical aspects of the management.

As being required by the academies .I have selected plant training in Maruti

cashew industry private ltd.

OBJECTIVES OF THE STUDY

The main objective of this study is to investigate the impact of cashew nut
Industry, a traditional agro processing industry on the labour markets and its feminized
production process in the era of globalization.

The following are the specific objectives of the study:

 T o identify the roles of cashew nut industry in the development of rural places in
India
 To assess the financial position of maruti cashew industry by deriving various
ratio and analyzing the different aspects of the organization.
 To find the strength and weakness of maruti cashew industry.
 To recommend the policy measures for improving the working conditions in the
industry and labour organization strategies.
 To study the employment and self employment generation to the cashew nut
process units.
 To determine the liquidity and profitability trend.
 To find the financial performance of the company and suggest suitable method to
improve.

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Scope of the study

The study covers,
 The human resource in particular so as to know the employee satisfaction level.
 The management views and information regarding different aspects.
 T o identify the roles of cashew nut industry in the development of rural places in
India,
 To recommend the policy measures for improving the working conditions in the
industry and labour organization strategies.
 To study the development of cashew industry and market.

Limitations of the study

 The study is limited to the extent of information provided by the managing partner
and other employees of maruti cashew processors.
 Certain information were considered by management information collected
regarding employee satisfaction as confidential.
 The present study is not exhaustive due to time and cost constraints.

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RESEARCH METHODOLOGY

SOURCES OF DATA AND METHOD OF COLLECTING THE INFORMATION

SOURCES OF DATA
The sources of information collected from

1) Primary Data
2) Secondary Data

1) PRIMARY DATA:
 Personal interview with managing partner
 Primary data generated from the management and employees

2) SECONDARY DATA:
 It is obtained from books and magazines

METHODS OF COLLECTING THE INFORMATION

 Personal interview
 Survey and personal observation were adopted in obtaining information
 The schedule questionnaire

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CHAPTER – 2

CONCEPTUAL FRAMEWORK

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RATIO ANALYSIS
Ratio analysis is a powerful technique of analysis and interpretation of financial
statement. A ratio is defined as the relationship between two or more variable. In financial
analysis a ratio is used as a benchmark for evaluating the financial position and
performance of the firm.
 Ratio analysis is the process of interpreting various ratio and help in making
decision. It involves following steps
 Selection of relevant data from financial statements depending up on the analysis.
 Calculations of appropriated ratios from relevant data collected.
 Comparison of the calculate ratio s with the predetermined ratio of the company
or the ratios development from the projected financial statement.

Advantages of Ratio Analysis

1. Helps in Decision Making:-
Financial statements are prepared primarily for decision-making. Ratio analysis
helps in making decision from the information provided in these financial Statements.
Ratio analysis is of much help in financial forecasting and planning. Planning is
looking ahead and the ratios calculated for a number of years a work as a guide for the
future. Thus, ratio analysis helps in forecasting and planning.

2. Helps in communicating:-
The financial strength and weakness of a firm are communicated in a more easy
and understandable manner by the use of ratios. Thus, ratios help in communication
and enhance the value of the financial statements.

3. Helps in co-ordination:-
Ratios even help in co-ordination, which is of at most importance in effective
business management. Better communication of efficiency and weakness of an
enterprise result in better co-ordination in the enterprise

4. Helps in control:-
Ratio analysis even helps in making effective control of business. The weaknesses
are otherwise, if any, come to the knowledge of the managerial, which helps, in
effective control of the business.

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Limitations of Ratio Analysis

Ratio analysis is very important in revealing the financial position and soundness
of the business. But, inspire of its advantages, it has some limitations which restrict its
use. These limitations should be kept in mind while making use of ratio analysis for
interpreting the financial the financial statements. The following are the main limitations
of ratio analysis:

1) False Results:-
Ratios are based upon the financial statement. In case financial statement are in
correct or the data of on which ratios are based is in correct, ratios calculated will all
so false and defective.

2) Limited Comparability:-
The ratio of the one firm cannot always be compare with the performance of other
firm, if uniform accounting policies are not adopted by them. The difference in the
methods of calculation of stock or the methods used to record the deprecation on
assets will not provide identical data, so they cannot be compared.

3) Absence of standard universally accepted terminology:-

Different meanings are given to a particular term, egg. Some firms take profit
before interest and tax; others may take profit after interest and tax. A bank overdraft
is taken as current liability but some firms may take it as non-current liability. The
ratios can be comparable only when all the firms adapt uniform terminology.

4) Price level changes affect ratios:-

The comparability of ratios suffers, if the prices of the commodities in two
different years are not the same. Change in price effect the cost of production, sale
and also the value of assets. It means that the ratio will be meaningful for comparison,
if the prices do not change.

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5. Ignoring qualitative factors:-

Ratio analysis is the quantitative measurement of the performance of the business.
It ignores qualitative aspect of the firm, how so ever important it may be. It shoes that
ratio is only a one sided approach to measure the efficiency of the business.

6. Personal bias:-
Ratios are only means of financial analysis and an end in it self. The ratio has to
be interpreted and different people may interpret the same ratio in different ways.

7. Window dressing:-
Financial statements can easily be window dressed to present a better picture of its
financial and profitability position to outsiders. Hence, one has to be very carefully in
making a decision from ratios calculated from such financial statements.

TYPES OF RATIO
1) Current Ratio:
Current ratio is calculated by dividing current assets by current liabilities.
Current Ratio = Current assets / Current Liabilities
The current ratio is a measure of firm’s short-term solvency. It indicates the
availability of current assets in rupees for every one rupee of current liability. A ratio of
greater than one means that the firm has more current assets than current claims against
them Current liabilities.

2) Net profit ratio:

The profit after tax (PAT) figure excludes interest on borrowing. Interest is
tax deducts able, and therefore, a firm that pays more interest pays less tax. Tax
saved on account of payment of interest is called interest tax shield. Thus the
conventional measure of net profit margin-PAT to sales ratio- is affected by firm’s
financial policy. It can mislead if we compare two firms with different debt ratios.
For a true comparison of the operating performance of firms, we must ignore the
effect of financial leverage, viz., the measure of profits should ignore interest and
its tax effect. Thus net profit ratio may be computed in the following way:
 It is calculated by dividing the net profit by the net sales.
 Net profit ratio = Net profit after tax/net sales *100

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3) Debtors (Accounts Receivable) Turnover Ratio:

A firm sells goods for cash and credit. Credit is used as a marketing tool
by number of companies. When the firm extends credits to its customers, debtors
(accounts receivable) are created in the firm’s accounts. Debtors are convertible
into cash over a short period and, therefore, are included in current assets. The
liquidity position of the firm depends on the quality of debtors to a great extent.

This ratio measures the accounts receivable (Trades debtors and bills
receivable) in terms of number of days of credit sales during a particular period.
 DTR= Net credit sales/average debtors
 Average debtors = Opening debtors + closing debtors/2
Debtors’ turnover indicates the number of times debtors’ turnover each
year generally, the higher the value of debtors’ turnover, the more efficient is the
management of credit.

To outside analyst, information about credit sales and opening and closing
balances of debtors may not be available.

4) Average Collection Period ratio:

Average Collection Period is used in determining the collectibles of
debtors and the efficiency of collection efforts. In ascertaining the firms
comparative strength and advantage relative to its credit policy and performance

The average number of days for which the debtors remain outstanding is
called the Average Collection Period. The Average Collection Period measures
the quality of the debtors since it is indicated the speed of their collection.

It is calculated by dividing the number of months or days or weeks by the

debtor’s turnover ratio.
 Average collection period =Number of months/ Debtors turnover
ratio.

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5) Gross profit ratio :

It is calculated by dividing gross profit by the net sales. It is also known as
gross margin ratio, trading margin ratio etc…

 Gross profit ratio = gross profit / net sales *100

6) Stock turnover ratio:

 It is ascertained by dividing the cost of goods sold by the average
inventory.
 This ratio is known as inventory turnover ratio.
 Stock turnover ratio = Cost of goods sold/ Average stock
 Average stock = Opening stock + Closing stock/2
 Cost of goods sold = Sales – Gross profit

7) Activity ratio:
 These ratios are also called turnover ratios because they indicate the speed
with which assets are being converted or turned over into sales.
 It is also called return on total assets. Return means not profit. Total
recourses means total assets.

Activity ratio = Net profit / Total assets *100 8) Fixed assets turnover ratio:
The firm to know its efficiency of utilizing fixed assets separately. This
ratio measures sales in rupee of investment in fixed assets. A high ratio indicates a
high degree of utilization in assets and low ratio reflects the inefficient use of
assets

It is calculated by dividing net sales by the net fixed assets. It shows the
relationship between net sales and fixed assets. It indicates whether fixed assets
are affectively utilized or not.

Fixed assets turnover ratio = Net sales / Fixed assets

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8) Current assets turnover ratio:

A firm may also like to relate current assets (or net working gap) to sales.
It may thus complete networking capital turnover by dividing sales by net working

This ratio established a relationship between net sales and current assets.

CATR = Net sales/ Current asset

9) Debt equity ratio :

The relationship describing the lenders contribution for each rupee of the
owners’ contribution is called debt-equity (DE) ratio is directly computed by
dividing total debt by net worth:

Debt equity ratio = Total debt / Net wort

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CHAPTER – 3
COMPANY PROFILE

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COMPANY PROFILE

In the plant training is required for the purpose of studies and getting exposure to
the working in the organization and use also come in to know the difference between the
theoretical and practical aspects of the management.

As being required by the academies .I have selected plant training in Maruti

cashew industry private ltd.

COMPANY PROFILE OF MARUTI CASHEW PROCESSOR

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DETAILS OF COMPANY

Name of the company ”Maruti Cashew Processor”

Address At: Anantwadi tq:Honnavar di:Uttara kannada

Establish March 2008

Nature of the activity cashew processing

Nature of the business Manufacturing

Ownership pattern Partnership pattern

Name of the owner Deepak G naik

Size of the firm small scale unit

Area of operation: National level

Factory working time: 8am to 5pm

Labour 175

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HISTORY OF COMPANY
 Shri Maruti cashew processor has been take over by Mr Deepak Naik in the year
2008.It is private limited companies established according to the company’s act
1956.
 Shri Maruti cashew processor has been started with an initial amount of 50 lakhs.
 It produces more than 150 tones finished cashew kernels in a year. it purchases
more than 21 crores raw material in a year. Cashew is the main raw material in
this company.
 It is located in NH 17 near to that town there is no other cashew as well as other
industries. So shri maruti cashew processor is started in that area & lot of people
get the job.

LOCATION
 The cashew nut company is located in the “manki” region of uttarakannada
district. it is only 10 km away from murudeshwar. A town which gave birth for
famous temple & beach.
 Manki region has been a natural advantage of having peaceful environment.
educated man power and good connectivity by road, good facility for education
and health care.
 The building of Cashew Nut Company is located in anantwadi NH 17. The
partners are please with the location of the unit.

NATURE OF THE BUSINESS CARRIED

It is accompany where the cashew nuts are purchased through the various sources
by applying various process, the cashew nuts are converted in to finished products. raw
nuts are purchased only 3 months in a year.

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VISION AND MISSION

VISION:
“To expand the area of operation and increase the amount of the capital and it has
a goal to export more to the foreign countries to earn more profit”

MISSION:
”Adequate industry and better and experienced workers and quality products are
needed”

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PRODUCTION DEPARTMENT

PROCESS
The Maruti Cashew Industry processing raw cashew nuts in a systematic

Manner and it can be use by step by step procedure.

ROASTING

CUTTING

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PURCHASE DEPARTMENT
Purchase department buys raw materials, spare parts, services etc as required by
the company or organization. Purchase management is one of the most crucial Area of the
entire organization.

 It is very important activity in the organization. the raw cashew nuts are purchased
on the basis of quality & size of the nuts and it also determines the role of
structure.

 In Shri Maruti cashew processor the cashews are purchasing from local as well as
outside. i.e. Bhatkal, Honnavar, Kumta. Even sometimes from other state also.

 The raw cashew nuts are not available throughout the year. Only in the summer
season specifically from march - June month raw cashew are available. very
difficult to maintain the stock of raw cashew throughout the year.

 The supply of raw cashew nuts depends on the grower production. At the local
grower is highly influence by the price fluctuations in the raw cashew nuts.
Because of outside compensation is growing cashew nuts and even importing of
raw cashew from South Africa and from other countries effect the local grower.

DRYING

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EXPLAIN OF CASHEW PROCESSING

STEP 1:

ROASTING

 The roasting of raw cashew nuts is done by roasting in a specially designed steam.
 Steam cocking involves streaming dry cashew nuts under pressure to soften the
shell.
 The cashew nuts are had into this boiler and kept under soft atmosphere of stream
for 40-45 minutes and then nuts are soaked. This courses the cashew inside the
shell to become loose and caser to remove in time.
 Usually the size of the boiler (streamer is limiting to 3 quintals of raw cashew
nuts)

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STEP 2:

CUTTING PROCESS:

 The roasted cashew nuts are hold into the hand operated cutting machine to
separate kernel ’s from the shells.

 The cashew nuts are had into this boiler and kept under soft atmosphere of stream
for 40-45 minutes and then nuts are soaked. This courses the cashew inside the
shell to become loose and caser to remove in time.

 Usually the size of the boiler (streamer is limiting to 3 quintals of raw cashew
nuts)

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STEP 2:

CUTTING PROCESS:

 The roasted cashew nuts are hold into the hand operated cutting machine to
separate kernel ’s from the shells.

 In this firm streamed cashew nuts are cut by specially designed hand operate
machines by skilled and unskilled lady workers.

 Generally for one machine there will be two worker ’s , one is cutter and another
one is picker.

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STEP 3:

DRYING PROCESS:

 Cashew kernels from cutting process are kept in the drying process around at low
heat for 6 -8 hours. It usually contains 8 to 10%moisture which require ’ s to be
dried for removal of testa.

 The hot air is made to pass hallow walls of bricks usually the temperature of the
chamber is kept 50 to 90 degree contingent.

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STEP 4:

PEELING PROCESS:

 At this stage , testa can be loosely attached to the kernels although a few kernels
may have already last the testa during prior operations. Manual peeling as per
termed by gently rubbing still attached to the kernels are removed still attached to
the kernel are removed with the use of a bamboo. It is important that the kernels
are neither cut damaged during the peeling process.

 The use of knives increased the like hood. it is also essential that the entire testa
removed. Each women carried 14-15 kgs of kernels can be peeled by one
individual per day.

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STEP 5: GRADING PROCESS:

GRADING MACHINE

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MANUAL GRADING

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The peeled cashew kernels are graded according to its size, color and its maturity.

The important grade names and its chart of cashew kernels are:

1 2 3 4 5 6

White scorched Desserts white Scorched dessert

Whole whole Whole Piece Piece piece

W180 SW SSW B SB sB

W210 SW210 DW S SS DP

W240 SW240 LWP SP

W450 SW450

W500 SW500

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PACKAGING:

Before packing the nuts are roasted again. Roasting again brighten the color of the
nuts and can be packed immediately.

MARKETING DEPARTMENT:
Marketing can be broadly classified into four categories, it shows

Product

Price

Place

Promotion

Product:
Maruti cashew processor is processing of cashew nut in product manufactured
cashew kernels.

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Price:
Price is the critical marketing mix tool. Price of cashew kernels fluctuates greatly.
This firm has pricing structures. Because it is very difficult to predict cashew kernels in
the market.
At present the firm refers the price of effort market and fixes price as an previous
year rate per kg of different variety of product are is in the table.

Product variety Rate / kg

W180 825
W240 600
W210 700
W320 550
SSW 485
S 425
ZWP 400
SW 410
JH 425
JK 350
SWP 300
SSP 250
K 340
HUSK 4.00
Rejected kernels 8.00

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Place:
 Maruti cashew processing products are sale on locally and outside areas,
 Madhya Pradesh, jaipur, delhi etc….

Promotion :
 The undertakes to communicate and promotion its product to the target market .
the firm has to motivate sales people and product discount.

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SWOT ANALYSIS

SWOT-STRENGTH, WEAKNESS, OPPORTUNITY, THREATS

The overall evaluation of organization strength, weakness, opportunity and

threats is called as SWOT analysis.

STRENGTH:
 It is providing good quality product to customer
 It has employed modern machineries
 The product has good demand all over the world
 It has good infrastructure facility

WEAKNESS:
 No local market for this product
 It has no separate department all departments are functioning in frame.
 Workers are not that much competitive

OPPORTUNITY:
 Expand their business at global level
 Maximum utilization of work force efficiently
 Opportunity to provide good service to customer and touch the new customers.

THREATS:
 Increasing number of competitors in now a day
 Risk of uncertainty.

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CHAPTER - 4

ANALYSIS AND INTERPRETATION

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M/S MARUTI CASHEW PROCESSORS

ANANTWADI, MANKI, HONNAVAR (UK)

BALANCE-SHEET AS AT 31-3-2017
Liabilities Amount Amount Assets Amount Amount
CAPITAL FIXED ASSETS 6083052
Ganesh Naik 731978
Deepak Naik 1285665 Investments
Udaya Naik 1419784 Bank share 50000
Biliya Naik 1358033 4795460
Current Assets
Loan Funds Closing stock 18434700
Canara Bank Loan 93683 Deposit 1090000
SBI Loan 240444 Laons and 1950000
advances
Canara Bank Term 1339776 Sundry debtors 8489360
Loan
Canara Bank Occ 15142426 Bank balance 35734202
Sbi Bank Occ 9996248 Cash in hand 182100

Canara Bank New 500000 27312577 VAT on URD 300344 34019915

Loan Receivable
Current Liabilities
Sundry creditors 7280102
Bills payable 19978
VAT payable 673987
TDS payable 70863
Total 40152967 Total 40152967

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Balance sheets

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CURRENT RATIO
It is calculated by dividing current assets by current liabilities. So current ratio
expresses relationship between current assets and current liabilities.

Current Ratio =Current Assets /Current Liabilities

Table 1
Year Current Assets Current Liabilities Ratio
2016 12525215 62924921 0.19905
2017 66180706 8044930 8.2263

Graph 1

Current Ratio
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20000000
Axis Title
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ar et
s
ie
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Ye s li it a
As ab
R
nt Li
re
r nt
Cu rre
Cu

INTERPRETATION:
Table reveals that current ratio. As conventional rule, current ratio of 2:1 or more
considered satisfactory. The ratio from the year it indicates that the company is
efficient to meet current obligation so the solvency ratio of the company is good.

1) NET PROFIT RATIO

It is calculated by dividing the net profit by the net sales.

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Net profit ratio = Net profit after tax/net sales *100

Table 2

Year Net Profit Net Sales Ratio

2016 1166727 63553760 1.8
2017 2422555 54253416 4.46

Graph 2

Net profit Ratio

120000000

100000000

80000000

Axis Title 60000000

40000000

20000000

0
Year Net Profit Net Sales Ratio

INTERPRETATION:
Table reveals that net profit ratio is measure the overall measure of the firm’s
ability to turn each rupee of sales into net profit. By analyzing the above ratio it is
clearly shows that, the company’s profitability is satisfactory.

3) DEBTOR TURNOVER RATIO:

This ratio measures the accounts receivable (Trades debtors and bills receivable) in
terms of number of days of credit sales during a particular period.

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DTR= Net credit sales/average debtors

Average Debtors = Opening Debtors + Closing Debtors/2

Table 3

Year Net Credit Sales Average Debtors Ratio

2016 63553760 8469360 7.5

2017 54253416 4124975 13.15

Graph 3

DEBTOR TURNOVER RATIO

Series1 Series2

63553760
54253416

8469360
4124975
7.5 13.15

Net credit sales Average debtors Ratio

INTERPRETATION:
As per the data presented in the above one can observe that in the year 2015
DTR is very high compared to year 2016. It represents that the credit policy of the
organization is good.
4) AVERAGE COLLECTION PERIOD RATIO:
It is calculated by dividing the number of months or days or weeks by the
debtor’s turnover ratio.

Average Collection Period =Number Of Months/ Debtors Turnover Ratio.

Table 4
Year No of months DTR Months

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2016 12 7.5 1.6

2017 12 13.15 0.91

Graph 4

AVERAGE COLLECTION PERIOD RATIO

Series1 Series2

13.15
12 12

7.5

1.6
0.91

No of months DTR Months

INTERPRETATION:
As per the data presented in the above table can observe that in the year 2016
average collection period is very low compared to year 2015. It represents that the
average collection period is low in the year 2017

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5) GROSS PROFIT RATIO:

It is calculated by dividing gross profit by the net sales. It is also known as gross
margin ratio, trading margin ratio etc…

Gross Profit Ratio = Gross Profit / Net Sales *100

Table 5

Year Gross profit Sales Ratio

2015 8011794 63553760 12%
2016 8226750 54253416 15%

Graph 5
GROSS
Gross Profit Ratio
PROFIT
120000000 RATIO
100000000

80000000

Axis Title 60000000

40000000

20000000

0
Year Gross profit Sales Ratio
Series1 Series2

63553760

54253416

80117948226750
12% 15%

Gross profit Sales Ratio

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INTERPRETATION:
Table reveals gross profit ratio. The high gross profit ratio to sales is a sign of
good management as it implies that cost of production is relatively more. The highest
ratio which indicates that the sign of good management

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6) STOCK TURN OVER RATIO:

It is ascertained by dividing the cost of goods sold by the average inventory. This
ratio is known as inventory turnover ratio.
Stock Turnover Ratio = Cost of Goods Sold/ Average Stock

Average stock = Opening stock + Closing stock/2

Cost of goods sold = Sales – Gross profit

Table 6

Year Cost of goods sold Average stock Ratio

2016 55541966 19517565 2.8
2017 45726666 36604875 1.2

Graph 6

Stock Turnover Ratio

120000000
100000000
80000000
60000000
40000000
Axis Title 20000000

0
ar l d ck t io
Ye so to Ra
o d s es
go ag
f v er
sto A
C o

STOCK TURNOVER RATIO

Series1 Series2

55541966
45726666
36604875

19517565

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Co Cost of goods sold Average stock Ratio

INTERPRETATION:
Stock turnover ratio is decreasing in the 2017. So it is not good sign
from the firm. So it is indication of poor result.
7) ACTIVITY RATIO:
It is also called return on total assets. Return means not profit. Total recourses
mean total assets.

Activity ratio = Net profit / Total assets *100

Table 7

Year Net profit Total assets Ratio

2016 1166727 40132967 2.9
2017 2422555 71496341 3.3
Series1 Series2

Graph 7

Activity Ratio
120000000

100000000

80000000

Axis Title 60000000

40000000

20000000

0
Year Net profit Total assets Ratio
40132967

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INTERPRETATION:
Activity ratio is increasing in the 2017. So it is good sign from the
firm so it is an indication of good result.

8) FIXED ASSETS TURNOVER RATIO:

It is calculated by dividing net sales by the net fixed assets. It shows the
relationship between net sales and fixed assets. It indicates whether fixed assets are
affectively utilized or not.

Fixed Assets Turnover Ratio = Net Sales / Fixed Assets

Table 8

Year Net Sales Net Fixed Assets Ratio

2015 63553760 6083052 10.44

2016 54253416 6871670 7.8

Graph 8

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Fixed Assets Turnover Ratio

120000000

100000000

80000000

Axis Title 60000000

40000000

20000000

0
Year Net Sales Net Fixed Assets Ratio

INTERPRETATION:
As per table shows the ratio is decreasing it is not good sign for the industry. The
ratio is decreasing is shows on not improvement in utilization of fixed assets.

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9) CURRENT ASSETS TURNOVER RATIO:

This ratio established a relationship between net sales and current assets. The
objective is to determine the efficiency with which the current asset is utilized.

CATR = Net sales/ Current asset

Table 9

Year Net sales Current assets Ratio

2015 65553760 12525215 5.07
2016 54253416 62924921 0.86

Graph 9

CURRENT ASSET TURNOVER RATIO

Series1 Series2

65553760 62924921
54253416

12525215
5.07 0.86

Net sales Current assets Ratio

INTERPRETATION:
The turnover ratio of the firm decreasing continuously. This low ratio is not good
from the point of the firm.

10) DEBT EQUITY RATIO:

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The relationship describing the lenders contribution for each rupee of the owners’
Contribution is called debt-equity (DE) ratio is directly computed by dividing total

Debt by Net Worth:

Debt - Equity Ratio = Total Debt / Net Worth
Table 10

Year Total Debt Net Worth Ratio

2016 7553860 15525215 0.4865
2017 54253416 62754572 0.8645

Graph 10

Debt Equity Ratio

90000000
80000000
70000000
60000000
50000000
Axis Title 40000000

30000000
20000000
10000000
0
Year Total Debt Net Worth Ratio

DEBT-EQUITY RATIOSeries1 Series2

62754572
54253416

15525215
7553860
0.48650.8645

Total debt Net worth ratio

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INTERPRETATION:
The table shows that the debt equity ratio of “Maruti cashew industry “it reveals
that the lenders contributes is less than owners. It shows the company has in the good
financial position.

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CHAPTER – 5

FINDINGS
SUGGESTIONS
CONCLUSION

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FINDINGS:

 Co-ordination &co operation between employers & employee is very good in this
industry.
 The industry has been earnings profit year by year varied.
 Current ratio was increased from 2017-2018. It shows that the liquidity position of
the industry is appearing to be highly satisfactory.
 Net profit ratio is increasing year by year. It shows that the performance of the
industry is good.
 Maruti cashew industry use manual accounting. This requires more work.
 Gross profit ratio of the industry is increased year by rear from 2015-2016.

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SUGGESTIONS:

Improvements in storing facility.

 Those who are working on machineries should be a trained properly.

 Steps should be taken to improve the physical environments such as proper light

air etc.

 This industry should not have its own vehicle. so they try to reduce

transportations.

 Since in this competitive world “MARUTI CASHEW INDUSTRY” has to go for

upgrading the new technology in the entire department.

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CONCLUSION:

Maruti cashew industry is a small scale industry situated in anantwadi. The

industry was established in the year 2008. It is a manufacturing unit producing cashew.
The entrepreneur of the industry is Mr. Deepak Naik.

By conduct this study I come to know the financial position of the industry in
depth.

The study tells that industry has good financial position. but still it can improve its
financial position.

The study conducted on ratio analysis is an in depth knowledge about the financial
position as well as current profit situation. “MARUTI CASHEW PROCESSOR” and
helps to enhance my knowledge.

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BIBLIOGRAPHY

 Annual report & records of the firm.

 Human resource management & industry by p. subbarao

 www. google.com

 www.wikipedia.com

 www.studymafia.org

 http//ww.cashewindia.org

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