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A comparative study on investment and revenue.

Executive summary

India is developing country and industries play a vital role in making it developed one
as agriculture is the main occupation of the Indian industries have important role to play in
the development of the Indian economy.

Small scale industries play a huge employment opportunity as they are labor
intensive. This provides a scope for better utilization of the local natural resources and human
resources. They also help in the development of agriculture as agro-based industries mainly
depend on agriculture to meet their input. Thus the maker for agricultural crops increases.
Small scale industries contribute to decentralization of industries and encourage balanced
regional development of Indian economy.

The project entitled “To study of the comparative study on investment and revenue”
carried out was the result of extensive study of MARUTHI UDYAMS situated at Havagi
village, Haliyal. My subject of study of the comparative study on investment and revenue is
detailed study on company investment and revenue. In study it absorb that company has
being investing funds year by year it has succeeded in sustaining competition and
maintaining its market position. But cost of sales is absorb to be high their margin of profits
is very less.

Finally the project ends up by giving suitable suggestion and conclusion, which may be
helpful for the management for taking appropriate decisions.

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A comparative study on investment and revenue.

INDUSTRY PROFILE:

Introduction:

Beaten rice, commonly known as Chura or Poha is rice which is flattened into flat, light, dry
flakes. These flacks of rice swell when added to liquid, whether hot or cold, as they absorb
water milk or any other liquids. This easily digestible from of raw rice is very popular across
India, Nepal, and Bangladesh, and is normally used for to prepare snacks light and easy fast
food in variety of styles, some even for long-term consumption of a weak or more. It’s known
by variety of names in different states.

In Karnataka (it’s known as avalakki in Kannada) avalakki is a staple breakfast diet


especially in rural and semi-urban areas. It is a low cost wholesome food with good
nutritional value.it can be taken in different forms – raw, fried, with curd or milk and
therefore has mass appeal. Its preparation can be made at a short notice and hence it is also a
convenient food item.

The agro is regarded as an extend arm of agriculture. Agro-industries are mainly comprises
of the post-harvest activities of processing and preserving agricultural products for intimidate
or final consumption. Increase in economics of a country, context of industrial development
is relative to agro-industries.

The agro industry can help stabilize and make agriculture more lucrative and create
employment opportunities both at the production and marketing stages. The board-based
development of the agro-products industry will improve both the social and physical
infrastructure of India. Since it would cause diversification and commercialization of
agriculture, it will thus enhance the income of farmers and create food surplus.

Beaten rice or poha is made from paddy and is popular in all parts of India. People of all age
groups from all sections like it and it is a mass consumption item. It is used in households,
restaurants, road side dhabas, and other eateries. Beaten rice can be produced anywhere in the
north-east region of the country.

It should be emphasized that “food” is not just product. Food also encompasses a wide
variety of products. It is in this sense that the Agro-industry is an important and vital part of
the manufacturing sector in developing countries and the means for building industrial
capacities.

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THE AGRO INDUSTRY IS BROADLY CLASSIFIED INTO THREE


TYPES:

 Village industries – owned and run by rural households with very little capital
investment and a high level of manual labor.
 Small scale industry—characterized by medium investment and semi automation.
 Large scale industry—involves large investment and a high level of automation.

The ability of capital investment and capacity to market products decides these segments in
industries. The development of agro-based industries started during pre-independent days.
Cotton mills, jute mills, sugar mills, were promoted in the corporate sector.

Governments support for agro-industries:

Karnataka State Small Industries Development Corporation (KSSIDC) provides


Industrial sheds and plots with infrastructure and also supplied basic Raw materials to the
Industries.

One of the major thrust given by government of India for development of world class
infrastructure for Agro-food processing industries is establishment of “Agro food technology
parks” for which financial assistance of rs.4crores per park would be available from
Government of India. The state has proposed to establish 6 such parks in Malur, Bagalkot,
Belgaum, Maddur, Jewargi and Chitradurga project proposal in respect of these parks have
already been forwarded to Government of India. Seeking approval and sanction of financial
assistance, Government of India has already approved 3 food Agro-technology parks at
Malur, Bagalkot and Gewargi and approval of the remaining 3 parks is being perceived.

The main objective of establishing food Agro-technology Park is to promote Agro-


food processing industries to clusters in areas where there is predominant production of
Process able agriculture and horticulture products. This Parks will also provide the required
infrastructural and common facilities, which are essential for sustains of these industries. The
common facilities would include uninterrupted power and water supply, quality assurance
laborites, warehouse including cold storage, common affluent treatment plants etc. another
important aspect of the Food-agro technology parks is creating awareness among the farmers
and producers of agriculture and horticulture products about the advantages of cultivating or
growing the right verities of primary products, which are amenable for processing and thus

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A comparative study on investment and revenue.

ensure that the twin objectives of assuring a better return to the farmers and assured supply of
raw materials to the processers are achieved. The state government has realized that the
establishment of these Agro-food technology parks is only on step in the direction of
promotions and development of food processing industry it is self. Its convinced the proper
environment of the industry to grow has to be created particularly in relation to contract
farming, where by the industry can obtain the raw materials required by it on a continues and
permanent basis with garneted prices and quality. The state government is also f the firm
opinion that the private sector has to take technology and professional management skill to
these segments.

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A comparative study on investment and revenue.

COMPANY PROFILE

NAME OF THE COMPANY MARUTHI UDYAMS

TYPE OF FIRM Partnership firm


NAME OF THE PARTNERS Mr.Ramesh Nayak
Mr.Pattavhiram Kalkur
Mr.Radhakrishna Nayak
CONTACT PERSONS Mr.Ramesh Nayak
ADRESS OF THE OFFICE WORK Havagi village Belgaum road Haliyal-
581329 Karnataka
TELEPHONE 08284-220777
FAX 08284-220777
E-MAIL Maruthiudyams 777@gmail.com
REGISTERD OFFICE Maruthi udyams survey no157/1B
Haliyal .Karnataka
TOTAL AREA Organization occupied an area of14000 sqft factory
built Of area.it is a situated
At heavy a small village in Haliyal.

COMPANY TURN OVER 13corore annual


NAME& ADRESS OF BANKER CANARA BANK main branch Haliyal
CAPACITY OF THE COMPNY 1.40000quintal paddy p.a
PRODUCTION
Total Employees 100

Area occupied 5 acres

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NATURE OF THE COMPANY:

Maruthi Udyams Industry which is involved in the manufacturing of poha or rice-


flakes. Which is finished goods of Paddy. “MARUTHI UDYAMS” Which was started in the
year 1998 and is situated in small Village called Havagi. Poha and Rice-flakes is a frequently
consumable and a commonly consumed by all the people of different class or standards.

This organization has wide market coverage. They have covered the different parts of
Karnataka, Maharashtra, and Kerala. Following are the place where they supply their product.

 Karnataka –Belgaum, Hubli, Dharwad, Gadag, Bijapur, Shimoga, Mangalore,


Udupi.
 Maharashtra –Kolhapur, Sangli, Miraz, Satara.
 Kerala-Kasargol, Talchery, Neeleshwar.

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PRODUCT/SERVICE PROFILE

Production department is the core of the organization production involves the

Whole process of converting the raw-materials into finished products.

There is most important department of organization.

The production process of poha mainly involves three steps:

1. Pre-treatment.

2. Production.

3. Finishing.

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A comparative study on investment and revenue.

PRODUCTION DEPARTMENT

Mesh Paddy cleaner Distribution

Husk

Mesh

Cleaned hunk

Soaked paddy

Paddy

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VISION – MISSION AND QULITY POLICY

1. VISION STATEMENT:
The vision statement is often confused with the mission statement. Some people
use the two interchangeably. Actually, the vision statement is about what the
business’s future will look like if the mission is achieved. Some say a vision
statement imagines what success looks like.
Martin Luther King, Jr.’s “I HAVE A DREAM” speech was a vision statement. So
was John Lennon’s song “IMAGINE.” Visions are frequently related to social
good, so they tend to be more important for nonprofit organizations.
Thus your business plan needs all three elements? Our advice is to include
objectives and a mission statement in any standard plan, and add a vision statement
if you have a vision that adds substance and value to your plan.

2. MISSION STATEMENT:
Next in importance comes the mission statement mission statement defines the
long-term goals of your business in three(3) ways:

 What does your company do for its customers? Think broadly about the
benefits you offer. Starbucks, for example, offers a lot more than coffee,
including a certain environment, an affordable luxury, or a meeting place.
 What does your company do for its employees? If you want employees to
stay with your company, you need to provide meaningful work, useful
feedback, training, benefits, and more.
 What do you want from business? Your mission is probably to grow an
produce more products and get out of its profit and your mission statement
should say so.

Your business mission statement is more permanent than an objective in a business plan. It
must be applied consistently over time. The mission statement serves as a reminder – to
you, your employees, and your customer – of the purpose of your business.

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To avoid vague, fuzzy mission statements, review your statement for useless comparisons.
Do your competitors do the same thing?

Are your missions identical? Think about how your company is different, and use that to
influence your mission.

Our vision:

To build on our success and high standards in the poha Industry, We plan to extend our
operations all over India thereby generating a long-term sustainable competitive advantage
thus providing superior returns for our business partners.

Our mission:

We are dedicated to our promises of delivering the best quality products to consumer who
have relied on us for a long time. We are committed in creating poha products to suit local
tastes as well as international standards.

Quality policy:

Quality was and still is the foundation of our success. Believing in the fact there is no
substitute for quality, we at Maruthi Udayms, have been trying to put in all our efforts to
improve the quality of our products. We are totally committed to our customer and work
around the clock in every department to fulfill their demands. From production to marketing,
everyone at Maruthi Udayms is fully focused towards producing a quality product that is
offered at a competitive price.

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MCKENSYAS 7S

The Mckinsey 7s model involves seven interdepend factors which are categorized as
either “hard” or “soft” elements.

Soft elements Hard elements

Strategy Shared value

Skill
Structure

Style
Systems

Staff

“Hard” elements are easier to define or identify and management can directly influence
them: These are strategy statements; Organization charts and reporting lines; and formal
processes and IT system.

‘Soft” elements, on the other hand, can be more difficult to describe, and are less tangible
and more influenced by culture. However, these soft elements are as important as the hard
elements if the organization is going to be successful.The way the model is presents in
figure 1below depicts the interdependency of the elements and indicates how a change in
one affects all the others.

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stratergy
style structure
staff system
shared
skill value

Lest’s look at each of the elements specifically;

 STRATEGY:The plan devised to maintain and build competitive advantage


over the competition.

 STRUCTURE:The way the organisation is structured and who reports to


whom.

 SYSTEMS:The daily activities and procedures that staff members engage in to


get the job done.

 SHARED VALUES:Is also called “superdinate goals” when the model was
first developd, these are the core values of the company that are evidenced in the
corporate culture and the general work eithc.

 STYLE :The style of leadership adopted.

 STAFF:The employees and their general capabilities.

 SKILLS:The actual skills and competencies of the employees working for the
company.

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1. Strategy:

The direction and scope of the company over the long term is called stratergy. A succesful
stratergy adds value for the targeted customers over the long run by consistently meeting
their needs better than the competition does. It’s a plan that one company makes to be the
market leader.

Maruthi udyams has its own stratergies made to be themarket leader:

 To identify target and potential cusomer


 Provide a good quality to the customer
 Delevering the best service

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2. Structure

ORGANISATIONAL STRUCTURE

PARTNER

PURCHASE PRODUCTION& SALES&MARKETING FINANCE H.R.D

SUPERVISOR SUPERVISOR SUPERVISOR ASSISTANT ASSISTANT

MARKETING MARKETING

REPRESENTATIVE REPRESENATIVE

WORKER WORKER WORKER

The basic organization of the company, its departments, reporting lines, areas of expertise
and responsibility how they inter-relate

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3. Skills

The capabilities and competencies that exist within the company, Maruthi Udyams have
quality employees with the qualification. Maruthi udyams has always motivate its employees
to update

Classification of skills / study of skills matrix:


 He must be qualified above P.U.C
 Degree in Arts
 Commerce graduator / B.com graduator.

4. Staff:

The company’s people resources and how they are developed, trained and Motivate. In other
word staffing is the process of acquiring human resources for the company and ensuring that
they have the potential to contribute to the achievement of the company’s goals.

CLASSIFICATION/DUTIES AND RESPONSIBILITIES OF VARIOUS


GROUPS OF STAFF:

 Marketing Department

Department in charge: Radha Krishna Nayak,

Marketing is most important activity carried out by an organization marketing activity very
necessary to make the people aware of the availability of their product in market. This
organization follows a direct marketing system.

The marketing departments focus on the costal Karnataka and Kerala and the other of north
Karnataka and Maharashtra.

Sales department

They have given a different brand name for their product. The brand names like Swastika,
Karodpati, Maruti deluxe, Krishna, etc Poha by brand name swastika and Karodpati sold in
Karnataka and Maharashtra and Kerala.

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Quality control

Quality control department sees that only good quality product is sent to the market. This
help in providing the best quality for the customer.

 HR Department

Department in charge: Mr.Ramesh Nayak

As already stated HR department mainly deal with the people at work. The most significant
resource of any organization is this work force i.e its human resource, organizations are made
up of people and function through people. All the activities of an organization are initiated
and completed by the Person who make-up the organization. It is said that “Business houses
are made or equipment’s but by men”. There for without the efforts of human resources no
Organization can its good.

There are about 100 semi-skilled workers working in the organization. These workers
are mainly involved in the production process and quality maintaining. These workers are
headed by three supervisors, one for quality and two Assistance for maintaining the Records.
And there two marketing representatives who represent their product in the market. So all
together there are about( 97-100 ) workers in the organization. Coolies for loading un-
loading are not fixed workers.

The organization has a very good Relationship with workers.

Management also provides a facility of deposing money into the bank. By this the workers
enjoy the bank investment.

Management takes a good care of the workers and thus there is good relationship between
management and workers.

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A comparative study on investment and revenue.

 Finance Department:

DepartmentIn charge: Mr. Ramesh Nayak.

Finance is the most important aspect not only to run an organization but to first from an
organization. Finance can be consider as the key factor required to from and run an
organization. All the activities of the organization namely purchase, production, marketing,
are directly affected by the availability of the finance called the finance department. This
department has 2 assistants. Mr. Ramesh Nayak records all the expenses and incomes
occurred and Mr. Radha Krishna records the wages of the workers.

Functions:

 Receiving monthly reports from all the department and preparing separate accounts
and recording in computer
 Maintaining day to day transaction i.e advance payment, wage payment, income etc
 Maintaining accounts, financial reports and functions of branch officers.
 Receiving truck receipts and other vouchers and feeding data to computer
 Controlling bank transaction, preparation of annual profit and loss A/C, balance sheet
and submitting the financial statements in annual general meeting.

This organization maintain following books:

 Purchase book
 Sales book
 Cash book
 Petty cash book
 Wage book

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5. Style:

The leadership approach of top management and the company’s overall operating approach.
Companies differ from each other in their style of working. The style of a company becomes
evident through the patterns of actions taken by members of the management team over a
period of time. The aspects of the business most emphasized upon by members or the top
management tend to be given more attention by people down in the company. Maruthi
Udayms provides free food and free accommodation facilities. Management also provides a
facility of depositing the money to bank. By this the worker enjoys the bank interest.

6. Systems:

Procedures followed it may be formal and informal that administrate everyday activity,
covering everything from management information systems, through to the systems at the
point of contact with the customer.

System followed in planning department

 Receive date / receipt order.


 Intently
 Checking stock.
 Placement of order.
 Delivery period of certain item

7. Shared value:
CORE VALUES: LATEST TECHNOLOGY
EXPERTISE
AUTHENTICITY
COMMITMENT

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A comparative study on investment and revenue.

SWOT ANALYSIS

SWOT analysis is a process that identifies the strengths, weakness,


opportunities, threats of an organization. Specifically, SWOT is a basic, analytical
framework that assesses what an organization can and cannot do, as well as its potential
opportunities and threats. A SWOT analysis takes information from an environmental
analysis and separates it into internal strengths and weaknesses, as well as its external
opportunities and threats.

SWOT:

S – Strength, W – weakness, O – opportunity, and T – threat. of the Maruthi Udyams.

STRENTH

Strengths describe what an organization excels at, allowing decisions on how to gain
a competitive advantage.

 The Maruthi Udyams industry has good knowledge about the market.
 Uses of Modernized machineries.
 Power supply facilities.
 Labors honesty.

WEAKNESS

Weaknesses stop an organization from performing at its optimum level. They have
the potential to reduce progress or to give a competitive edge to the competition. An
organization needs to minimize weaknesses and analyze how they can be improved. An
Inadequate supply network or lack of capital.

 There are several competitors of this company.


 Security of raw material and paddy will effects the production during the average
demand.
 Poor water supply

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A comparative study on investment and revenue.

OPPORTUNITIES

Opportunities refer to favorable external factors that an organization can use it


its advantage. If utilized effectively, opportunities have the potential to create a competitive
advantage.

 Growing marketing opportunities.


 Easily availability of raw materials.

THREAT

Threats refer to factors that have the potential to negatively impact on an


organization.

 Competitors in the markets.


The major competitors in market.
 Chhattisgarh
 Madhya Pradesh
 Gujarat

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A comparative study on investment and revenue.

Comparative analysis on relationship between capital structure and sales of

31/03 /2013

Capital Amount Sales Amount


Partner’s capital A/C 39,00,001 By sales interstate
Partner’s current A/C 4,201 Avalakki 61,42,110
Secured loans 2,40,49,066 Hollypaddy2,24,805
B.avalakki 9,77,282
Bran 78,88,151 1,52,32,348

By sale states
Avalakki 8,00,85,210
B.avalakki 98,775
Bran 7,28,417
H.paddy 3,74,150 8,12,86,552
Total 2,79,53,268 Total 9,65,18,900

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A comparative study on investment and revenue.

Comparative analysis on relationship between capital structure and sales of

31/03 /2014

Capital Amount Sales Amount


Partner’s capital A/C 39,00,001 By sales interstate
Partner’s current A/C 3,40,900 Avalakki 84,71,522
Secured loans 2,06,91,864 B.avalakki 7,40,211
Bran 88,69,979 1,80,81,712

By sale states
Avalakki 10,10,97,854
B.avalakki 1,95,600
Bran 19,48,426 10,32,41,880

Total 2,49,32,764 Total 12,13,23,592

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Comparative analysis on relationship between capital structure and sales of

31/03 /2015

Capital Amount Sales Amount


Partner’s capital A/C 48,40,001 By sales interstate
Partner’s current A/C 14,39,281 Avalakki 64,64,216
Secured loans 1,89,98,463 B.avalakki 4,94,840
Unsecured loans Bran 73,59,586 1,43,18,642
Ravindra Nayak 1,00,000
By sale states
Avalakki 9,83,31,680
B.avalakki 1,29,195
Bran 29,98,395 10,14,59,270

Total 2,53,77,745 Total 11,57,77,912

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A comparative study on investment and revenue.

Comparative analysis on relationship between capital structure and sales of

31/03 /2016

Capital Amount Sales Amount


Partner’s capital A/C 60,00,000 By sales interstate
Partner’s current A/C 32,12,740 Avalakki 45,91,925
Secured loans 2,13,59,243 B.avalakki 3,13,679
Unsecured loans Bran 67,57,849
Canara Timber Haliyal 11,87,329 H.paddy 1,40,540 1,18,03,993
Manasa Adventure Ambeli 4,75,312
By sale states
Avalakki 10,15,67,150
B.avalakki 4,15,826
Bran 43,74,628 10,63,57,604
Total 3,05,71,983 Total 11,81,61,597

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A comparative study on investment and revenue.

Comparative analysis on relationship between capital structure and sales of

31/03 /2017

Capital Amount Sales Amount


Partner’s capital A/C 1,10,00,000 By sales interstate
Partner’s current A/C 68,05,803 Avalakki 94,01,680
Secured loans 2,80,65,930 B.avalakki 9,36,214
Unsecured loans Bran 77,51,389
Ravindra Nayak 4,35,980 H.paddy 3,62,320 1,84,51,603
Promod ER Udupi 12,37,000
Rajesh Nayak 1,77,000 By sale states
Avalakki 12,18,89,484
H.paddy 1,05,600
B.avalakki 26,87,169
Bran 61,38,206 13,08,20,459
Total 4,77,21,713 Total 14,92,72,062

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A comparative study on investment and revenue.

Study on comparative analysis on relationship between capital structure and sales


revenue:

 Compare to investment of 2013 to 2014

Investment in the year of 2013 2,79,53,268


Investment in the year of 2014 2,49,32,764
Difference between both year investment 30,20,504

= 100(30,20,504)/2,79,53,268

=10.8% =~ 11%

 Compare to sales of 2013 to 2014

Sales in the year of 2013 9,65,18,900


Sales in the year of 2014 12,13,23,592
Difference between both year sales 2,48,04,692

=100 (2, 48, 04,692) / 9, 65, 18,900

= 25.69% =~ 26%

There for when Investment Decreased by 11%. Then sales are increased by 26% in the year
of 2013 to 2014.

 Total Cost of sale in the year of 2013:

Sales – Grossprofit=cost of sale

Sales 9,65,18,900
Gross profit 1,03,34,330
Cost of sale (sales-Gross profit) 8,61,84,570

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A comparative study on investment and revenue.

Cost of sale in%:

=100(cost of sale)/sale

=100(8,61,84,570)/9,65,18,900

=89.29% =~ 89%

Cost of sale=89%

 Net profit in the year 2013:

Net profit=Profit – all expenses

Profit 1,15,58,786
Expenses 1,01,83,542
Net profit(profit – all expenses) 13,75,244

Net profit in%:

=100( all expenses)/profit

=100(1,01,83,542)/1,15,58,786

=88.10%=~88%

=100% - 88%= 12%

Net profit=12%

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A comparative study on investment and revenue.

Study on comparative analysis on relationship between capital structure and sales


revenue:

 Compare to investment of 2014 to 2015

Investment in the year of 2014 2,49,32,764


Investment in the year of 2015 2,53,77,745
Difference between both year investment 4,44,981

= 100(4,44,981)/2,49,32,764

= 1.78%=~2%

 Compare to sales of 2014 to 2015

Sales in the year of 2014 12,13,23,592


Sales in the year of 2015 11,57,77,912
Difference between both year sales 55,45,680

=100 (55,45,680) /12,13,23,592

= 4.5%

There for when 2%increase in investment .Then sales are decreased by 4.5%in the year of
2014 to 2015.

 Total Cost of sale in the year of 2014:

Sales – Gross profit=cost of sale

Sales 12,13,23,592
Gross profit 1,24,84,047
Cost of sale (sales-Gross profit) 10,88,39,545

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A comparative study on investment and revenue.

Cost of sale in%:

=100(cost of sale)/sale

=100(10,88,39,545)/12,13,23,592

=89.71%=~90%

Cost of sale=90%

 Net profit in the year 2014:

Net profit=Profit – all expenses

Profit 1,39,02,825
Expenses 1,26,02,341
Net profit(profit – all expenses) 13,00,484

Net profit in%:

=100( all expenses)/profit

=100(1,26,02,825)/1,39,02,825

=90.6%=~91%

=100% - 91%= 9%

Net profit= 9%

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A comparative study on investment and revenue.

Study on comparative analysis on relationship between capital structure and sales


revenue:

 Compare to investment of 2015 to 2016

Investment in the year of 2015 2,53,77,745


Investment in the year of 2016 3,05,71,983
Difference between both year investment 51,94,238

= 100(51,94,238)/2,53,77,745

= 20.46%=~20%

 Compare to sales of 201 to 201

Sales in the year of 2015 11,57,77,912


Sales in the year of 2016 11,81,61,597
Difference between both year sales 23,83,685

=100 (23,83,685) /11,57,77,912

= 2.05%=~2%

There for when 20%increase in Investment. Then sales are increasedby 2% in the year of
2015 to 2016.

 Total Cost of sale in the year of 2015:

Sales – Gross profit=cost of sale

Sales 11,57,77,912
Gross profit 1,19,57,969
Cost of sale (sales-Gross profit) 10,38,19,943

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A comparative study on investment and revenue.

Cost of sale in%:

=100(cost of sale)/sale

=100(10,38,19,943)/11,57,77,912

=89.67%=~90%

Cost of sale=90%

 Net profit in the year 2015:

Net profit=Profit – all expenses

Profit 1,33,62,126
Expenses 1,15,12,132
Net profit(profit – all expenses) 18,49,994

Net profit in%:

=100( all expenses)/profit

=100(1,15,12,132)/1,33,62,126

=86.15%=~86%

=100% - 86%=14%

Net profit= 14%

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A comparative study on investment and revenue.

Study on comparative analysis on relationship between capital structure and sales


revenue:

 Compare to investment of 2016 to 2017

Investment in the year of 2016 3,05,71,983


Investment in the year of 2017 4,77,21,713
Difference between both year investment 1,71,49,730

= 100(1,71,49,730)/3,05,71,983

= 56.09%=~56%

 Compare to sales of 2016 to 2017

Sales in the year of 2016 11,81,61,597


Sales in the year of 2017 14,92,72,062
Difference between both year sales 3,11,10,465

=100 (3,11,10,465) /11,81,61,597

= 26.32=~26%

There for when56% Investment increase. Then sales are increased by 26% in the year of 2016
to 2017.

 Total Cost of sale in the year of 2016:

Sales – Gross profit=cost of sale

Sales 11,81,61,597
Gross profit 1,09,45,095
Cost of sale (sales-Gross profit) 10,72,16,502

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A comparative study on investment and revenue.

Cost of sale in%:

=100(cost of sale)/sale

=100(10,72,16,502)/11,81,61,597

=90.73%=~91%

Cost of sale=91%

 Net profit in the year 2016:

Net profit=Profit – all expenses

Profit 1,28,53,990
Expenses 1,03,95,297
Net profit(profit – all expenses) 24,58,693

Net profit in%:

=100( all expenses)/profit

=100(1,03,95,297)/1,28,53,900

=80.87%=~81%

=100% - 81%=19%

Net profit=19%

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A comparative study on investment and revenue.

 Total Cost of sale in the year of 2017:

Sales – Gross profit=cost of sale

Sales 14,92,72,062
Gross profit 1,45,27,330
Cost of sale (sales-Gross profit) 13,47,44,732

Cost of sale in%:

=100(cost of sale)/sale

=100(13,47,44,732)/14,92,72,062

=90.26%=~90%

Cost of sale=90%

 Net profit in the year 2017:

Net profit=Profit – all expenses

Profit 1,59,71,753
Expenses 1,25,19,250
Net profit(profit – all expenses) 34,52,503

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A comparative study on investment and revenue.

Net profit in%:

=100( all expenses)/profit

=100(1,25,19,250)/1,59,71,753

=78.38%=~78%

=100% - 78%=22%

Net profit= 22%

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A comparative study on investment and revenue.

Findings:

2013-2014 In amount In %
Change in investment (+) 30,000 (+) 11%
Change in sales (+) 2,48,04,692 (+) 26%

Here investments are increased by 11% compare to previous years (2013) investments. And
sales are also increased by 26% compare to previous year sales.

Year In%
Cost of sales 2013 89%
Cost of sales 2015 90%
Net profit 2013 12%
Net profit 2015 9%

Findings:

2014-2015 In amount In %
Change in investment (+) 4,44,981 (+) 2%
Change in sales (-) 55,45,680 (-) 4.5%

Here investments are increased by 2% compare to previous years (2013) investments. And
sales are decreased by 4.5% compare to previous year sales.

Year In%
Cost of sales 2014 90%
Cost of sales 2015 90%
Net profit 2014 9%
Net profit 2015 14%

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A comparative study on investment and revenue.

Findings:

2015-2016 In amount In %
Change in investment (+) 51,94,238 (+) 20%
Change in sales (+) 23,83,685 (+) 2%

Here investments are increased by 20% compare to previous years (2013) investments. And
sales are also increased by 2% compare to previous year sales.

year In%
Cost of sales 2015 90%
Cost of sales 2016 91%
Net profit 2015 14%
Net profit 2016 19%

Findings:

2016-2017 In amount In %
Change in investment (+) 1,71,49,730 (+) 56%
Change in sales (+) 3,11,10,465 (+) 26%

Here investments are increased by 56% compare to previous years (2013) investments. And
sales are also increased by 26% compare to previous year sales.

year In %

Cost of sale 2017 90%

Net profit 2017 22%

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A comparative study on investment and revenue.

Conclusion

 During the year in 2013-2014 investment increased by 11% and Sale increased by
26%. It wasgatherfrom the company that during this year there was comparatively
less competition and raw-material also available at reasonable price there for sales
increased considerably.

 In the year 2014-2015 investments are increased by 2% and there is fall in sale by
4.5%. Interacting with company executive it was informed that during the year
2014-2015 in order to survive competition in the market though quantity sold was
maintained but selling price was cut down. Therefore values of sale reduce.

 In the year 2015-2016 investment increase by 20% and sales increased only by 2%
next its absorb that to maintain market position company had to put in more
investment as during the period raw-material prices were increases (paddy crop)
therefore investment has increased but there is no correspondent increase in sale.

 In the year 2016-2017 the company again increased its investment by 56%. Which
led to marginal increase in sale that is by 26% there for it absorbs that to maintain
market position. Company has being investigating funds year by year it has
succeeded in sustaining competition and maintaining its market position. But cost of
sales is absorb to be 90% theirmargin of profits is very less.

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A comparative study on investment and revenue.

Suggestion

Though the company has sustained the competition every year company has been investing
more funds but net profits have not shown encouraging increases because cost of sale has
been very high. Therefore it suggested that gain more profit and company has to control its
cost of production.

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A comparative study on investment and revenue.

Bibliography

Books:

 Marketing resource - By K.D Basava


Vidyavahini prakashn 2007 Edition
 Human resource management - By Sujatha M.
Thakur publishers 2014-15 Edition

Website:

 http://www.samallscaleindustryindia.com
 http://www.kaycircle.com/what-is-beaten-rice-hisory.com
 http://www.gvt-support-agroindustry.com

Annjuman institute of information science and management, Dharwad Page 40

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