UNIVERSITY OF CALCUTTA

Project Report
(Submitted for the Degree of B. Com Honours in Accounting &
Finance/Marketing under the University of Calcutta)

Title of the Project

A STUDY ON SOCIO-ECONOMIC STATUS OF
JUTE MILL WORKERS COLONY IN
SERAMPORE
SUBMITTED BY

Name of the Candidate: SUMIT SANTRA

Registration No:613-1111-0521-21

Name of the college: SERAMPORE COLLEGE

College Roll No:SC2110528

University Roll No:211613-21-0016

SUPERVISED BY

Name of the Supervisor: MAUSUMI BHATTACHARYA

Name of the College: SERAMPORE COLLEGE

Month & Year of Submission: MARCH, 2024

1
 Index
Chapter Content Page No.
Supervisor’s Certificates 3
Student’s Declaration 4
Acknowledgement 5
Abstract 6
1 Introduction 7
1.1 Introduction 8-9
1.2 Literature Review 9
1.3 Objective of the Study 9
1.4 Methodology 9
2 An Overview of National and International Scenario of 10
Fertilizer Market
2.1National Scenario 11-12
2.2International Scenario 13-14
3 An Overview of the Sample Retail Business 15
3.1 Profile of the Business 16-17

3.2Important information related to the Business 17-18

3.3 Sources of the goods are traded in the Business 18

3.4 Types of goods are sold 18-20
3.5 Future Policy of the Business 20
Financial performance of the Sample Retail Business and 21
4
Financial Statement Analysis
4.1 Trading and Profit & Loss Accounts for the year ended 22
2016-17 to 2020-21
4.2 Balance Sheet as on 31.3.16 to 31.3.20 23
4.3 Financial Statement Analysis 24-32
4.4 Ratio Analysis 33-36
5 Conclusion 37
5.1 Findings of the Study 38
5.2 Limitation of the study 38
5.3 Further Scope of the Study 39
5.4 Conclusion 39
Bibliography 39
Questionnaire 40

2
Annexure- IA

Supervisor’s Certificates

This is to certify that Mr. Sumit Santra a student of B.Com. Honours in Accounting
& Finance / Marketing / Taxation / Computer Applications in Business of Serampore
College under the University of Calcutta has worked under my supervision and
guidance for his/her Project Work and prepared a Project Report with the title of A
Study on a Socio Proprietorship Business of Fertilizers which he/she is
submitting, is his/her genuine and original work to the best of my knowledge.

Signature: -
Place: Name: - Prof. Sudipta Saha Roy
Date: Designation: - Associate Professor
Name of the College: - Serampore College

3
Annexure- IB

Student's Declaration

I hereby declare that the Project Work with the title “A Study on a Sole
Proprietorship Business of Fertilizers” submitted by me for the partial fulfillment
of the degree of B.Com. Honours in Accounting & Finance / Marketing under the
University of Calcuttais my original work and has not been submitted earlier to any
other University /Institution for the fulfilment of the requirement for any course of
study.
I also declare that no chapter of this manuscript in whole or in part has been
incorporated in this report from any earlier work done by others or by me. However,
extracts of any literature which has been used for this report has been duly
acknowledged providing details of such literature in the references.

Signature:
Name: Rimpa Sadhukhan
Date: 00/00/0000 Registration No: 613-1214-0445-19
Place: Bandipur, Hooghly Address:Bandipur, Hooghly

4
 Acknowledgement

Theoretical knowledge without practical application is incomplete. Therefore, the

exposure to practical world gives a new dimension to whatever has been grasped till
time and it also gives a chance to understand that where the leaned knowledge can be
applied.

I would like to give substantial appreciation and thanks to my supervisor Prof.

SudiptaSaha Roy of Serampore College for providing me valuable guidance and
inputs without whose cooperation and encouragement the study and the resultant
project work would not have got a shape. The other persons who assisted me in
preparing this work are my father who provide the valuable information about his
Transport business without which I never can able to prepare this type of project
paper and my family members.

It gives me great pleasure to express my gratitude to the authors of various books and
websites from which I have obtained relevant essential information and data.

5
 Abstract

A fertilizers store is a retail store that primarily sells fertilizers items. This shop store
items such as DAP/MAP, Urea, MOP, NPK and various types of pesticides item and
insecticides item. The shops buy the items from the dealers or distributors at
wholesale rates and sell at intermediate rates. In this study we have undertaken a
systematic analysis of financial and non-financial aspects of M/S Ramkrishna
Sadhukhan which is a retail business of fertilizers, pesticides, and insecticides items.
In our study we have used Ratio Analysis. The study is based on the primary data
which was received from the owner of the business through interaction. In our case
study we have observed a positive growth of the sample business. The expansion of
the business in near future will increase the revenue for the business. The owner of
the sample business has planned to enhance the retail fertilizers business in near
future.

6
 Chapter-1

Introduction

7
1.1Introduction:
In order to ensure success of any product or training program, it is essential to
conduct through scientific research on the place implementation, market research and
customer preference. A comprehensive understanding of the social and economic
situations of the jute mill colony’s people is crucial before introducing any product or
training in the colony. This
information includes the total
population, age distribution and
gender distribution, literacy rate
and employment rate. This data
will help to identify the social and
economic challenges faced by the
villagers and provide opportunities
for improvement.

Moreover, information on
agricultural practices such as the
types of crops grown, yield
obtained and farming practices used, is crucial to identify the challenges faced by
farmers and provide opportunities for improvement.

Understanding the health status of the colony’s people, including the availability of
healthcare facilities, incidence of diseases and sanitation practices followed can also
help identify health related challenges faced by the people of the colony.

Lastly, collecting information on education facilitates available in the colony, such as

the number of schools, quality of education and percentage of students enrolled,
provides an understanding of the educational status of the colony and helps
identifying potential solution to the educational challenges faced by the peoples of
the colony.

8
 1.2 Why I have chosen this topic:
I have chosen this topic because this study provides valuable insights into the
demographic profile, land use patterns, sources of immigration and occupational
distribution of the colony. The majority of the population had low levels of education
with small scale agriculture dominating the agricultural landscape. The study
highlights the importance of non-farming occupations such as skilled laborers and
rural artisans. The findings suggests a need for education-related interventions,
sustainable farming practices and access to modern agricultural technologies. The
presence of rural artisans also suggests the potential developing cultural origination in
that colony. The study emphasizes the need for diversification of irrigation
implications for policy interventions and development initiatives in that region and
also they are overall satisfied with their simple lifestyle. In this regard, it is to be
notified that the local administration and the government should work together to
figure out several problems and adopt necessary measures to ensure qualitative
lifestyle of the people.

1.3 Objective of the study:

 To know about the development of the colony.
 To know the living conditions of the residence.
 To know the implementation of government policies.
 To study the socio economic status of the people of the colony.
 To study the employment status of the youth of the colony.
 To know their educational qualification & skills.
 To know only small or big business setup there.

1.4 Methodology:

 Data Sourcehis studyb

The study is based on primary data which was received from the owner of the
business through interaction.
 Method of analysis
Ratio Analysis
Statistical analysis by using statistical tools that is pie chart and bar chart.

9
 Time period of study
The primary data has been collected between the Financial Year 2016-17 to 2020-21.

Chapter-2

An Overview of
National and
International Scenario
of Socio Economic
Status of Jute Mill
Workers Life
10
2.1 National Scenario: - India is the longest producer of jute goods in the world,
accounting for around 70 per cent of world production. It has also largest user of jute
goods. By the 19th century, when industrial processing of jute for manufacturing
mostly packaging material
started. Bengal practically
monopolized the world’s
production of raw jute. After
independence, Jute is mostly
grown in the eastern region of
India, particularly West
Bengal. The first jute mill in
India was established in 1855
at rishra near Kolkata and the
first 20 mills were scattered on either sides of river Hooghly around Kolkata.
However they were four main clusters one in Rishra & Serampore and others in
Howrah, ShyamNagar, Sealdah respectively. India has 92 Jute mills of which 67 sir
located in West Bengal as per information available the office of the Commissioner.
the main product are hessian , sacks, carpet backing cloths and other items. Total
production of goods in the country during the period 1995-96 to 2014-15 varied from
1776 thousand MT (2007-08) to 1267.2 thousand MT(2014-15) with an average of
1546.82 thousand MT per year. At present jutemills in West Bengal provide direct
employment to 2.3 lakh persons and indirect employment to 40 lakh persons. But we
need to know that economic conditions of the Jute mill workers were not good.
Indebtness is a common problem among the workers of jute mill and many of them
where always in debt. Marriage and sickness seemed to be important reason behind
debts. Among the jute mill workers, both Hindus and Muslim used to pay a huge
amount of dowry, both cash and kind. Moreover, when the workers were unemployd
due to strikes and lockouts etc. It was necessary for them to take loans to bear day to
day expenditure of the household.

dia's green revolution and subsequent self-reliance in food-grain production. The

increase in fertilizer consumption has contributed significantly to sustainable
production of food grains in the country. As a result, the demand of fertilizers has
witnessed double digit growth rates over the past several years.

Despite a strong growth in recent years, the average intensity of fertilizer use in India
remains much lower than most of the developed and emerging countries around the
11
world. The usage of fertilizers is also highly skewed, with wide inter-regional, inter-
state and inter-district variations.

Indian Fertilizer Market:

Drivers

Catalyzed by a strong growth in

the country’s population over the
next five years, food demand is
also expected to exhibit a strong
growth. Conversely, as a result of
increasing urbanization levels,
available arable land is expected to
decrease. We expect fertilizers to play a key role in increasing the average crop yields
per hectare.

Despite strong historical growth, fertilizer consumption in India remains highly

skewed. There are currently a number of states in India which still have a very low
penetration of fertilizers. This leaves a lot of room for future growth.

We expect a number of government and non-government awareness campaigns to

educate farmers on the benefits of fertilizers. Promotion of fertilizers through
television, radio and customized rural workshops are also anticipated to increase the
consumption of fertilizers in the coming years.
Increasing rural incomes, coupled by easy availability of credit, are also likely to
create a positive impact on fertilizer usage in the country.
Contract farming, where inputs in terms of
technology and training are expected to be
provided to the farmer from the food processor
(contractor), is also expected to create a
positive impact on fertilizer usage.
Key Market Segmentation: MARC Group
provides an analysis of the key trends in each
sub-segment of the Indian fertilizer market
report, along with forecasts for growth at the country and regional level from 2021-
2026. Our report has categorized the market
based on product type, segment, formulation
and application.
Breakup by Product Type:
Chemical Fertilizers&Biofertilizers
12
 Based on the product type, the market has been segmented as chemical fertilizers and
biofertilizers. Currently, chemical fertilizers dominate the market, holding the largest
share.
Breakup by Segment:
Complex Fertilizers, DAP, MOP, Urea, SSP, and Others
Based on the segment, the market has been segmented as complex fertilizers, DAP,
and MOP, urea and SSP. Currently, urea represents the largest type accounting for
the majority of the market share.
Breakup by Formulation:
Liquid &Dry
On the basis of formulation, the market has been segmented as liquid and dry. Dry
fertilizers represent the leading segment holding the majority of the market share.
Breakup by Application:

Farming, Grains and Cereals, Oilseeds, Fruits and Vegetables, Others, and Gardening
Based on the application, the market has been segmented as farming and gardening.

2.2 International Scenario: - The fertilizers market is projected to register a

CAGR of 2.1% during the forecast period, (2022-2027).

Since the COVID-19 outbreak, the fertilizer industry has been significantly affected
in many parts of the world by the outset of the pandemic. Due to the shortage of labor
and the shutdown of a few fertilizer plants located in the integrated chemical
complexes, shipments were affected in the initial lockdown process. China, being the
epicenter of the pandemic, was greatly impacted in the beginning. However, the
conditions in the country have stabilized, and production rates have increased for all
fertilizers. Hence, the overall effect
of COVID-19 on the fertilizer
industry is observed to be
moderate.

Over the long term, the

technological innovations in the
industry, coupled with the growing
demand for N, P, and K and
micronutrient fertilizers, are expected to drive the market growth. However,
regulatory and environmental constraints and high production costs are likely to act
as drawbacks in the industry.

Asia-Pacific is the largest fertilizers market and accounts for a share of around 60.0%
of the overall market. China is the largest consumer of fertilizers in the Asia-Pacific
13
region, and it accounted for around 53.0% share in the Asia-Pacific fertilizer market
in 2019.

Scope of the Report

Fertilizers are natural or artificial substances containing chemical elements that

improve the growth and productiveness of plants. Fertilizers enhance the soil’s
natural fertility or replace the chemical elements taken from the soil by previous
crops. Modern fertilizers include nitrogenous, potash, and phosphate fertilizers. Some
fertilizers also contain certain "micronutrients" such as zinc and other metals that are
necessary for plant growth. The fertilizers market is segmented by type (straight and
complex), crop type (grains and cereals, pulses and oilseeds, commercial crops, fruits
and vegetables, and other crop types), and geography (North America, Europe, Asia-
Pacific, South America, and Africa).

Key Market Trends

Decreasing Per Capita Arable Land and Increasing Food Demand

The global population is increasing at a rapid rate. This growing population is adding
to the food demand. Supplying food to this growing population has become a threat.
On the other hand, arable land is declining due to industrialization and urbanization.
The FAO revealed in 'The Resource Outlook to 2050' that at this time, more than 1.50
billion hectares of the world’s land surface (about 12%) is used for crop production.
There is little scope for
further expansion of
agricultural land.

As per several reports, the per

capita arable land area will
decline to 0.18 ha by 2050
across the world, compared to
0.15 ha in developing
countries and 0.42 ha in
developed countries. Further,
the global population of 7.4 billion in 2016 is projected to increase to 9.7 billion by
2050, with almost all increases occurring in developing countries. Thus, it is
recommended that global food production be increased by 60.0% to 70.0% between
2005 and 2050. As a result of population expansion and a steady land degradation
rate, the per capita land is expected to decrease in the future. Thus, this has led to a
situation where there is pressure on the existing arable land to produce more food
using technologically advanced fertilizers in a sustainable way.
14
Asia-Pacific Dominates the Market

Asia-Pacific is the largest fertilizers market and accounts for around 60.0% of the
overall market. Southeast Asia is the major fertilizer consumer in Asia-Pacific, with
China representing approximately half of the consumption. The demand for
nitrogenous fertilizers in Asia is recorded as strong. However, the market for
potassium fertilizers is expected to grow significantly in the coming years. Demand
in Southeast Asia is expected to grow further with the increasing use of neem coated
urea, upscaling of Direct Benefit Transfer to farmers, and rapid adoption of water-
soluble fertilizers.

In the Asia-Pacific region, rice is a big nitrogen-consuming crop. In 2017, rice

production in Asia accounted for 35.0% of the total fertilizer consumption. Oil palm,
the second-largest consumer of fertilizers, accounts for 17.0% of the total fertilizer
consumption and 50.0% of potash consumption in Asia. Rice and oil palm production
growths are expected to remain robust, driven by population and economic growths
in the region.

Chapter-3

An Overview of the
Sample Retail Business
15
 3.1Profile of the Business:
 Name of the Business
In our study we have considered a business which is named as M/S Ramkrishna
Sadhukhan.

 Name of the owner

The business is owned and controlled by Mr. Ramkrishna Sadhukhan.

 Place of the business

This business was established at Bandipur, Haripal, Hooghly in West Bengal. Till
today the business is operated from the same place.

 Business type (ownership point of view)

This is a Sole proprietorship type of business which means it is controlled and owned
by the owner himself. All the silent features of sole proprietorship business we can
find in the said business.

 Nature of the business

This is a retail business of fertilizers, pesticides, and insecticides goods. The main
objectives of the business are to sell fertilizers product in retail basis for meeting the
demand of the retail customers. This type of business plays an important role in
supply chain.

16
 Number of employees
The sample business is operated by one employee.

 Name of employee
The employee is Jhantu Das

 The year of commencement of the business

The business started in the year 1988

 Initial capital invested in the business

The business was started with Rs. 40000

 Amount of present capital

The current capital of the business is Rs. 1700000

 No of dependent family member

5 members are dependent

 Assistants from family member

There are no assistants in the business from among the family members

3.2 Important information related to the business

 Past History of the Business
The business was started in 1988 with a capital of Rs 40000 with a very small
amount of goods. The business was started in a very small area.

 Development of the business

In the year 1988, when fertilizers were not so popular in the field of crop cultivation
then the business is started with a small amount capital. At that time the purchase of
fertilizer was less and the sale of fertilizer was also less since then fertilizer did not
come to the market that way.
When slowly the Fertilizer market expanded, the amount of capital in the business
was also increased and so was the amount of fertilizer’s purchase and sale increased.
Now fertilizer is essential for growing any crop so it is not possible to grow any crop
without fertilizer. Therefore, fertilizer is now essential for any farmer to grow crops.
So farmers buy fertilizers according to their needs. And to meet the needs of farmers,
the business has been expanding its range since 1988.

 Threatening of the business

As the application of crop fertilizers has increased so much, the demand of farmers
for fertilizers has also increased. As a result, many fertilizer shops have been created.
17
 And for which sales have fallen a little less than before and there are fears that it may
fall further in the future.

 Opinion about professional change

At present the application of fertilizer to any crop has increased tremendously and the
business has become very profitable for him. So, he doesn't want to bring in any
professional changes.

 Encourage to family members to adopt this profession for the future livelihood
The business has been in a state of financial for the last few years and I have seen that
it can be really profitable to run the business properly.

 Customer’s Details
As well as the people living there buy the necessary fertilizer product to use on
their land for cultivation from this shop. People from neighboring villages also
buy fertilizer product as per their need.
Farmers from various nearby villages also come here to buy fertilizers at fair
prices. Such as Kashimerpur, Dilalpur, Nahusenpur etc. Even farmers from far and
wide like Mirzapur, Mohalla, Gopinagar, Lalpur, Bhimpur etc. come here to buy
fertilizer. They think they get better quality products from other stores here and
also at fair prices.

3.3Sources of the goods are traded in the business

 Goods purchased: All necessary fertilizer products are purchased mainly from
dealer. The Orders are sent to the dealers. They supply the products directly to the
shop.

Name of the product Dealer Name

DAP/MAP Monoranjan Krishi Bipani

NPK (10:26:26) Susanta Koley

MOP Lakshmi Narayan Koley

Urea Kedar Nath Bhakat & Sons.

Gromor(14:35:14) Krishi Bipani

Gromor(28:28:00) Krishi Udyog

18
 3.4 Types of goods are sold
 DAP/MAP:
DAP fertilizer is an excellent source of
P and nitrogen (N) for plant nutrition. It's
highly soluble and thus dissolves quickly
in soil to release plant-available
phosphate and ammonium. A notable
property of DAP is the alkaline pH that
develops around the dissolving granule.
DAP Fertilizer, For Agriculture,
Packaging Size: 50 Kg, Rs 1180 /bag

 NPK (10:26:26):
NPK fertilizer provides all the essential nutrients required by plant – Nitrogen (N),
Phosphorous(P) and Potassium (K). The nutrients for vegetative growth in stems,
roots particularly during the early stages, root growth, seed and flower formation, bud
growth and ripening of fruits.
Packaging Type, Bag; Country of Origin, Made in India; Ammoniacal N % By

 MOP:
Potassium stimulates the growth of strong stems and gives the plant disease
resistance by promoting thickness of the outer cell walls. Adequate potassium can
reduce moisture loss from growing plants, thereby giving some drought resistance.
Potassium improves colour, flavour and storing quality of fruit and vegetables.
Packaging size: 50 Kg, Rs 800/bag.

 Urea:
Urea has important uses as a fertilizer and
feed supplement, as well as a starting
material for the manufacture of plastics
and drugs. It is a colourless, crystalline
substance that melts at 132.7° C (271° F)
and decomposes before boiling.
The MRP of urea is statutorily fixed by
the Government of India and at present it
is Rs. 268 for a 50 Kg bag of urea/
Rs. 242 for a 45 kg bag of urea.

19
 Gromor (14:35:14):
GROMOR 14-35-14 is an ideal complex
particularly for Rice, Cotton, groundnut,
chillies, Soya bean, Potato and other
commercial crops which require high
Phosphate initially. However, for chlorine
sensitive crops like tobacco and grapes,
application of GROMOR 14-35-14 is not
advisable. Packaging size: 50 kg, Rs 1700/bag.

 Gromor (28:28:00):
It is an ideal complex fertilizer for all crops for basal application. It gives
instantaneous and prolonged greenness. It is most suitable fertilizer for crops like
Paddy, Cotton, Chillies, Sugarcane and Vegetables etc.packaging size: 50 kg sack
bag.

3.5Future policy of the business

In addition to Fertilizers, insecticides and pesticides will include in the future. Keep
agricultural equipment. Will launch online payment system etc.The sample business
is 34 years old. The owner has gathered sound knowledge about the local retail
market and goodwill. The future objective of the owner is to take dealership of Bayer
and BASF companies. He has already taken the initial step to take dealership.
Presently he has planned to take loan from Bank to start another retail shop of other
than fertilizer items. But he did not disclose what kind of retail shop he is going to
start in near future.

20
 Chapter-4

Financial Performance
of the Sample Retail
Business and Financial
Statement Analysis

21
4.1Trading and Profit &Loss Account for the year – 2016-17 to 2020-
21
M/S RAMKRISHNA SADHUKHAN,
TRADING AND PROFIT & LOSS A/C for the year ended 31.3.16 to
31.3.20
PARTICUL 31.3.16 31.3.17 31.3.18 31.3.19 31.3.20 PARTICULA 31.3.16 31.3.17 31.3. 31.3.19 31.3.2
ARS RS 18 0
To, Opening 307874 326240 418520 96252 643938 By, Sales 250238 259216 2190 691765 303439
stock 0 0 438 3
To, 2119436 2293237 1615684 633136 2824182 By, Closing 326240 418520 1744 145755 886137
Purchases Stock 84
To, Carriage 22150 23260 14856 1952 4562
Inward
To, Coolie & _ _ _ _ 24156
Cartage
To, Gross 379160 367943 315862 106180 423692
Profit C/d
2828620 3010680 2364922 837520 3920530 282862 301068 2364 837520 392053
0 0 922 0
To, Salary 48000 48000 48000 _ 54000 By, Gross 379160 367943 3158 106180 423692
Profit B/d 62
To, Packing _ _ _ _ 9050
Charges
To, Labour _ _ _ _ 20950
Charges
paid
To, 6912 7120 4865 1952 4956
Travelling
Expenses
To, General 6285 6356 5126 1286 3985
Charges
To, Printing 2156 1850 1250 720 650
& Stationery
To, Postage 182 193 120 100 20
& Stamp
To, Electric 3460 3600 3600 3200 3250
Charges
To, 2420 2260 2364 1853 1950
Telephone
Charges
To, Tea & 4296 4385 4192 2097 3896
Tiffin
Expenses
To, 300 300 600 300 300
Profession
Tax
To, License 500 500 500 500 600
& Taxes
To, Bank _ _ _ 248 1782
Charges
To, 1500 1500 4000 6000 7200
Accounting
Charges
To, 4869 4959 4325 3774 3297
Depreciation
To, Net 298280 286920 236920 84150 307806
Profit
(Transfer to
Capital A/C)
379160 367943 315862 106180 423692 379160 367943 3158 106180 423692
62

22
 4.2 Balance Sheet as on 31.3.16 to 31.3.20
BALANCE SHEET as on 31.3.16 to 31.3.20
LIABILI 31.3.16 31.3.17 31.3.18 31.3.19 31.3.20 ASSETS 31.3.16 31.3.17 31.3.18 31.3.19 31.3.20
TIES
Opening 1305945 1492280 1619255 1592230 1500435 Furniture & 14275 12847 11562 10406 9365
Capital Fittings (less
depreciations)
Add: Net 298280 286920 236920 84150 307806 Motor Cycle 10562 8978 7631 6486 5513
Profit (less
depreciations)
1604225 1779200 1856175 1676380 1808241 T.V & Fridge 7891 6707 5701 4846 4119
(less
depreciations)
Less: 111945 159945 263945 175945 98654 Weightment 7630 6867 6180 5562 5006
Drawings Scales (less
depreciations)
1492280 1619255 1592230 1500435 1709587 Shop & 388950 388950 527430 570280 570280
Buildings
Sundry 66230 62320 76850 82954 84952 Stock in Trade 326240 418520 174484 498183 886137
Creditors
Liabilities 5500 5500 7000 7500 11700 Sundry 172920 185921 230394 128765 32620
For Debtors
Expenses
Cash at Bank 516102 485358 543210 304738 287533
Cash in Hand 119440 172927 169488 61623 5666
1564010 1687075 1676080 1590889 1806239 156401 1687075 1676080 1590889 1806239
0

23
 DATA ANALYSIS
4.3 Financial Statement Analysis:
1) GROSS PROFIT WISE ANALYSIS: -

YEAR GROSS PROFIT (Rs.) PERCENTAGES

31.3.16 379160 24%
31.3.17 367943 23%
31.3.18 315862 20%
31.3.19 106180 7%
31.3.20 423692 26%

Gross Profi t

31.3.20 31.3.16
27% 24%

31.3.16
31.3.17
31.3.18
31.3.19
31.3.20

31.3.19
7%
31.3.17
23%

31.3.18
20%

Gross Profi t

425000

375000

325000

275000
Gross Profit
225000

175000

125000

75000

25000
31.3.16 31.3.17 31.3.18 31.3.19 31.3.20
Gross Profit 379160 367943 315862 106180 423692

Interpretation: -This graph shows the downfall of net profit of the business from 2016-17 to
2019-20 due to pandemic situation but soon this recovered and the business earned profit in
comparison to the previous year in 2020-21.

24
2) NET PROFIT WISE ANALYSIS: -

YEAR NET PROFIT (Rs.) PERCENTAGES

31.3.16 298280 25%
31.3.17 286920 24%
31.3.18 236920 19%
31.3.19 84150 7%
31.3.20 307806 25%

Net Profi t

31.3.20 31.3.16
25% 25%

31.3.16
31.3.17
31.3.18
31.3.19
31.3.20
31.3.19
7%

31.3.17
24%
31.3.18
20%

Net Profi t

350000

300000

250000

Net Profit
200000

150000

100000

50000

0
31.3.16 31.3.17 31.3.18 31.3.19 31.3.20

Interpretation: -This graph shows the downfall of net profit of the business from 2016-17 to
2019-20 due to pandemic situation but soon this recovered and the business earned profit in
comparison to the previous year in 2020-21.

25
3) TOTAL REVENUE WISE ANALYSIS: -

YEAR TOTAL REVENUE (Rs.) PERCENTAGES

31.3.16 2502380 23%
31.3.17 2592160 23%
31.3.18 2190438 20%
31.3.19 691765 6%
31.3.20 3034393 28%

Total Revenue
31.3.16
31.3.20 23%
28%

31.3.16
31.3.17
31.3.18
31.3.19
31.3.20

31.3.19
6%
31.3.17
24%

31.3.18
20%

Total Revenue

3500000

3000000

2500000
Total Revenue
2000000

1500000

1000000

500000

0
31.3.16 31.3.17 31.3.18 31.3.19 31.3.20

Interpretation: -The above charts show the revenue of the business. I found that in the financial
year of 2019-2020 the total revenue of the business was very low because of covid 19 and for this
reason the demand of fertilizers will be fall but it was recovered in the next financial year.

26
4) PURCHASE WISE ANALYSIS: -

YEAR PURCHASES (Rs.) PERCENTAGES

31.3.16 2119436 22%
31.3.17 2293237 24%
31.3.18 1615684 17%
31.3.19 633136 7%
31.3.20 2824182 30%

Purchases
31.3.16
31.3.20 22%
30%

31.3.16
31.3.17
31.3.18
31.3.19
31.3.20

31.3.19
7% 31.3.17
24%

31.3.18
17%

Purchases

3000000

2500000

2000000
Purchases

1500000

1000000

500000

0
31.3.16 31.3.17 31.3.18 31.3.19 31.3.20

Interpretation: -The above graph is showing the purchase of the business during the financial
years. It shows that in the financial year of 2019-2020 purchase of the company was also at a low
rate along with sales because of pandemic. But when the situation was getting normal day by day,
total purchase of the business increased.

27
5) CAPITAL WISE ANALYSIS: -

YEAR CAPITAL (Rs.) PERCENTAGES

31.3.16 1194000 18%
31.3.17 1332335 20%
31.3.18 1355310 20%
31.3.19 1416285 21%
31.3.20 1401781 21%

Capital
31.3.20 31.3.16
21% 18%

31.3.16
31.3.17
31.3.18
31.3.19
31.3.20
31.3.17
20%
31.3.19
21%

31.3.18
20%

Capital

1450000

1400000

1350000

1300000 Capital

1250000

1200000

1150000

1100000

1050000
31.3.16 31.3.17 31.3.18 31.3.19 31.3.20

Interpretation: -The above graph describes the capital structure of the company. It shows that
the capital of the company was increased gradually year by year from 31.3.16 to 31.3.19 but in the
next year I saw a little bit of downfall in it.

28
6) CREDITORS WISE ANALYSIS: -

YEAR CREDITORS (Rs.) PERCENTAGES

31.3.16 66230 18%
31.3.17 62320 17%
31.3.18 76850 20%
31.3.19 82954 22%
31.3.20 84952 23%

Creditors
31.3.16
31.3.20 18%
23%

31.3.16
31.3.17
31.3.17
17% 31.3.18
31.3.19
31.3.20

31.3.19
22%

31.3.18
21%

Creditors

90000

80000

70000

60000
Creditors
50000

40000

30000

20000

10000

0
31.3.16 31.3.17 31.3.18 31.3.19 31.3.20

Interpretation: -The above graph shows the creditors structure for the financial years. I found
that amount of creditors gradually increased from 31.3.18 but I have also seen that a little bit of
downfall of creditors for the period 31.3.16 to 31.3.17 in compare with the last year.

29
7) DEBTORS WISE ANALYSIS: -

YEAR DEBTORS (Rs.) PERCENTAGES

31.3.16 172920 23%
31.3.17 185921 25%
31.3.18 230394 31%
31.3.19 128765 17%
31.3.20 32620 4%

Debtors
31.3.20
4%
31.3.19 31.3.16
17% 23%

31.3.16
31.3.17
31.3.18
31.3.19
31.3.20

31.3.17
31.3.18 25%
31%

Debtors

250000

200000

150000 Debtors

100000

50000

0
31.3.16 31.3.17 31.3.18 31.3.19 31.3.20

Interpretation: -The above charts describe the debtor’s structure of the business. From the
above data I found that in 31.3.16 debtor was Rs.172920, in 31.3.17 it was Rs.185921, in 31.3.18 it
was Rs.230394, in 31.3.18 it was Rs. 128765 and in 31.3.18 debtor of the business was Rs.32620. It
means the financial position of the business will be recovered after pandemic that why debtor will
be fall in the last financial year. It shows a positive result of the business.

30
8) FIXED ASSETS WISE ANALYSIS: -
YEAR FIXED ASSETS (Rs.) PERCENTAGES
31.3.16 429308 17%
31.3.17 424349 16%
31.3.18 558504 21%
31.3.19 597580 23%
31.3.20 594283 23%

Fixed Assets
31.3.16
31.3.20 16%
23%

31.3.17 31.3.16
16% 31.3.17
31.3.18
31.3.19
31.3.20

31.3.19
23%

31.3.18
21%

Fixed Assets

600000

500000

400000
Fixed Assets

300000

200000

100000

0
31.3.16 31.3.17 31.3.18 31.3.19 31.3.20

Interpretation: -The above chart shows the fixed assets of the business. From the above chart I
found that in 31.3.16 total fixed asset of the business was Rs.429308, in 31.3.17 it was Rs.424349,
in 31.3.18 it was Rs.558504, in 31.3.18 it was Rs.597580 and in 31.3.20 it was Rs.594283.

31
9) CLOSING STOCK WISE ANALYSIS: -
YEAR CLOSING STOCK (Rs.) PERCENTAGES
31.3.16 326240 14%
31.3.17 418520 18%
31.3.18 174484 8%
31.3.19 498183 22%
31.3.20 886137 38%

Closing Stock
31.3.16
14%

31.3.20
38%
31.3.17 31.3.16
18%
31.3.17
31.3.18
31.3.19
31.3.20

31.3.18
8%

31.3.19
22%

Closing Stock

900000

800000

700000

600000
Closing Stock
500000

400000

300000

200000

100000

0
31.3.16 31.3.17 31.3.18 31.3.19 31.3.20

Interpretation: -The above chart describes the closing stock of the business. I found that in
31.3.20 the closing stock of the business was very high because of the less sale of that particular
fertilizers which was helps to cultivate the potato. The demand of that particular fertilizers will be
fall because of unwanted flood.

32
 4.4 Ratio Analysis:
Name of 31.3.16 31.3.17 31.3.18 31.3.19 31.3.20
Ratio
1) CURRENT (1134702 (1262726 (1117576 (993309 (1211956
RATIO: /71730)= /67820)= /83850)= /90454)= /96652)=
(Current 15.82 18.62 13.33 10.98 12.54
Assets/Current
Liabilities)
2) LIQUID (808462 (844206 (943092 (495126 (325819
RATIO: /71730)= /67820)= /83850)= /90454)= /96652)=
(Current 11.27 12.45 11.25 5.47 3.37
Assets-Stock-
Prepaid
Exp.)/(Current
Liabilities-
Bank
Overdraft)
3) INVENTORY (326240 (418520 (174484 (498193/ (886137
TO /1062972) /1194906) /1033726) 902855) /1115304)
WORKING =0.307 =0.350 =0.169 =0.551 =0.794
CAPITAL
RATIO:
(Closing
Stock/Working
Capital)
4) GROSS (379160/ (367943/ (315862/ (106180/ (423692/
PROFIT 2502380) 2592160) 2190438) 691765) 3034393)
RATIO: *100= *100= *100= *100= *100=
(Gross 15.15% 14.19% 14.42% 15.35% 13.96%
Profit/Net
Sales)*100
5) NET PROFIT (298280/ (286920/ (236920/ (84150/ (307806/
RATIO: (Net 2502380) 2592160) 2190438) 691765) 3034393)
Profit/Net *100= *100= *100= *100= *100=
Sales)*100 11.92% 11.07% 10.82% 12.16% 10.14%
6) STOCK (2101070/ (2200957/ (1859720/ (583633/ (2581983/
TURNOVER 317057) 372380) 296502) 121003.5) 765037.5)
RATIO: (Cost =6.63 =5.91 =6.27 =4.82 =3.37
of goods
sold/Average
Stock)

NOTES:

1) Working Capital = Current Assets – Current Liability

2) Cost of Goods Sold = Opening Stock + Purchase – Closing Stock
3) Average Stock = (Opening Stock + Closing Stock)/2

33
1) Current Ratio: This ratio measures the ability of an enterprise to meet its short-term liabilities.
In 2016-17 to 2020-21 this ratio was 15.82:1, 18.62:1, 13.33:1, 10.33:1, and 12.54. It is indicating
that this ratio is so high. Because the closing stocks have become so high that demand for fertilizers
used in potato cultivation has been reduced due to floods disrupting potato cultivation. It is
indicated good liquidity status, satisfactory repayment power, and better safety of creditors of the
origination. But in 2017-18 current ratio is increase (15.82 to 18.62) compare to 2016-17. It is not
favorable to the organization because very high ratio indicates current assets blocked. So, the Trader
should maintain the ideal ratio 2:1.
Year 31.3.16 31.3.17 31.3.18 31.3.19 31.3.20
CURRENT RATIO 15.82 18.62 13.33 10.98 12.54

CURRENT RATIO
20

18

16

14

12

10

0
31.3.16 31.3.17 31.3.18 31.3.19 31.3.20

2) Liquid Ratio: Quick ratio measures the immediate solving of a firm. In 2016-17 to 2020-21 this
ratio was 11.27:1, 12.45:1, 11.25:1, 5.47:1 and 3.37:1. It is indicated that the ratio is high. It is
ascertained meet its current liabilities within a short-term. But in 2017-18 Quick ratio is increase
(11.27 to 12.45) compare to 2016-17. It is not favorable to the organization because very high ratio
indicates more quick assets blocked. So, the Trader should maintain the ideal ratio 1:1.

Year 31.3.17 31.3.16 31.3.18 31.3.19 31.3.20

LIQUID RATIO 12.45 11.27 11.25 5.47 3.37

LIQUID RATIO
14

12

10

0
31.3.16 31.3.17 31.3.18 31.3.19 31.3.20

34
3) Inventory to Working Capital Ratio: In other words, inventory to working capital ratio
measures how well a company can generate additional cash using its net working capital at its
current inventory level. Simply put, inventory to working capital ratio measures the percentage of
the company's net working capital that is financed by its inventory.Generally, a working capital
ratio of less than one is taken as indicative of potential future liquidity problems, while a ratio of
1.5:2 is interpreted as indicating a company on solid financial ground in terms of liquidity.

Year 31.3.16 31.3.17 31.3.18 31.3.19 31.3.20

INVENTORY TO WORKING
CAPITAL RATIO 0.307 0.35 0.169 0.551 0.794

INVENTORY TO WORKING CAPITAL RATIO

0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
31.3.16 31.3.17 31.3.18 31.3.19 31.3.20

4) Gross Profit Ratio:This ratio states the amount of gross profit on the amount of sale. In this
business gross profit was decreased in 2017-18 compare to 2016-17 (15.15% to 14.19%). In 2017-
18 amount of sale and amount of gross profit both are increased but direct expenses in 2017-18 is
more than 2016-17, so the profit did not increase in this way. The trader should focus on increasing
the total profit and control the increase of direct expenditure.

Year 31.3.16 31.3.17 31.3.18 31.3.19 31.3.20

GROSS PROFIT
RATIO 15.15% 14.19% 14.42% 15.35% 13.96%

GROSS PROFIT RATIO

15.50%

15.00%

14.50%

14.00%

13.50%

13.00%
31.3.16 31.3.17 31.3.18 31.3.19 31.3.20

35
5) Net Profit Ratio:In 2017-18 and 2018-19 net profit ratio was decreased compare to 2016-17 but
in 2019-20 the profit increased and in 2020-21 again the net profit will decrease due to pandemic.
Trader must be tried to increase this ratio.

Year 31.3.16 31.3.17 31.3.18 31.3.19 31.3.20

NET PROFIT RATIO 11.92% 11.07% 10.82% 12.16% 10.14%

NET PROFIT RATIO

12.50%

12.00%

11.50%

11.00%

10.50%

10.00%

9.50%

9.00%
31.3.16 31.3.17 31.3.18 31.3.19 31.3.20

6) Stock Turnover Ratio:This ratio indicates inventory holding period. A high ratio stands for
even moment of stock. This ratio was in 2016-17 to 2020-21 is 6.63, 5.91, 6.27, 4.82 and 3.37
times. It is indicating the movement of stock is very fast. It is favorable to the organization. But
stock turnover ratio decreased gradually year by year. It is not good for sound organization. The
trader should focus on the ratio, so that this ratio is not too low.

Year 31.3.16 31.3.17 31.3.18 31.3.19 31.3.20

STOCK TURNOVER
RATIO 6.63 5.91 6.27 4.82 3.37

STOCK TURNOVER RATIO

7

0
31.3.16 31.3.17 31.3.18 31.3.19 31.3.20

Year STOCK TURNOVER RATIO

36
 Chapter-5

Conclusion

37
 5.1 Findings of the study
 The main objective of the business is to sell Fertilizer and Varieties goods for
cultivation in Retail Basis for meeting the demand of the Retail Customers.

 Most of the farmer or sharecropper of the sample business are belong from middle
class category of the society.

 In the year 2017-2018 the sales were maximum and the business had earned highest
amount of gross profit in comparison to previous years.

 We observe the abnormal loss of the business is highest in the financial year 2017-
2018.

 In the financial year 2017-2018 the purchase of the sample business was highest.

 In the financial year 2017-2018 the business had earned highest amount of Net Profit.

 In our case study we have observed a positive growth of the business.

 The expansion of the business in near future will increase the revenue for the
business.

5.2 Limitation of the study

 In our study we have studied only one Retail Business. Due to paucity of time,
we could not interact with any other Retail Business owner.
 Our study based on the survey of particular Fertilizer shop. A bigger sample size
given a better picture about the shop.
 It would have been much better if we could make comparative study with another
Fertilizer shop.
 Due to lack of information and data, capital analysis could not be carried out for five
years.

38
 5.3 Further scope of study
We would like to identify the following aspects of the Retail Business for further
study

 Retail Fertilizer Business, a compression between various state in India.

 Discuss the future prospects and problems of Retail Fertilizer Business in West
Bengal.
 FDI in Indian retail Fertilizer business.
 Survey of large number of Retail Fertilizer Business in Hooghly District.

5.4 Conclusion
The net profit rate of the sample fertilizers store in the last 5years was fluctuating in
nature. The main reason behind the fluctuation of the profit margin of the sample
business is the competition faced by the entrepreneur. As the fertilizers owner is a
dynamic person, we hope that he will be able to overcome the problems faced by the
business and expand the business, by sealing of new products which will also
accelerate the rate of profit in the coming years.

Bibliography
Websites
 en.wikipedia.org, 02-03-2022, 20:17
 www.ibef.org › Industry, 13-03-2022, 12:34
 info.shine.com/industry/retail/7.html, 22-03-2022, 6:20

Books
 Jewell, B.R- An Integrated Approach to Business Studies
 Dey, Subhas- Business Management, 2013
 Perrey, Jesco- Retail Marketing and Branding, 2016
 Ghosal, Gaurav- Retail management, 2007

Newspapers
 Business Standard
 The Financial Times
 The financial express

39
 Annexure- IA

Questionnaire
1. Name of the business.
2. Name of the owner.
3. Types of the business.
4. Place of the business.
5. The year of commencement of the business.
6. Past history of the business.
7. Initial capital invested in the business.
8. The present capital of the business.
9. Types of goods are traded in the business.
10.No of labour is engaged.
11.Information about the suppliers and customers of the business.
12.Important developments in the business.
13.Future policy of the business.
14.No. of dependent family members.
15.Assistants from family members.
16.Threatening of the business.
17.Financial performance of the business (at least last 5 years).
18.Opinion about professional change.
19.Encourage to family members to adopt this profession for the future livelihood.

40