renuka sugars intership report.docx

SHREE RENUKA SUGARS LIMITED.UNIT IV
Visvesvaraya Technological University, Department of MBA, Belagavi Page 1
CHAPTER -1
1.1 INDUSTRY PROFILE
Sugar is produced in around 122 countries across the world being the largest sugar
producing countries in the world, followed by Thailand, Mexico, Germany and many more
(source: Hand Book of Sugar statistics, October 2008, published by ISMA based on data
for SY 2008) Sugar is extracted from two different raw materials i.e. sugarcane and sugar
beet, Asia south America and the Caribbean are the key producers of cane sugar while
European Union is one of the largest beet sugar producers.
India’s sugar industry has rapidly with increasing number of small sized sugar plants which
is situated across some parts of India, the historical evidence of sugar industry prospering
in ancient India concrete and this has helped to develop and prosper the co-operative sugar
movement in India .
Trade of sugar in the world
Sugar exports are concentrated among a small group of countries that are also leading
producers. The key exporters of sugar are Brazil, Thailand and Australia. On the other
hand, the imports are widely dispersed. The import requirements of a large number of
countries have to be added up to arrive at the quantum of exports by the top five exporters.
The Russian federation is one of the world’s largest importers of sugar.
.

CHAPTER-2
ORGANISATION PROFILE
Mr. ATUAL CHATURVEDI
CHAIRMAN

2.1 BACKGROUND
Name of the company SHREE RENUKA SUGARS FACTORY
LIMITED ATHANI
Date of incorporation/ registration 1995
Date of commencement of
manufacturing Business
2007
Factory Code No 58801
Factory Licence No MYBGM2518
Date of commencement of
Commercial production of sugar
2007
Crushing capacity 10000 TCD
Project cost 100.86 crores
Activity under taker Production of sugar and its by product like
Molasses and Biogases
Work period 6 Month
Type unit Large scale Agro based manufacturing unit
Main raw material Sugar cane
Labour employed 900
Area of operation Around 30 villages

2.2 NATURE OF BUSINESS
Sugar sector is one of the largest scale industrial in manufacturing sector. Now a day the
competition in sugar sector is very high. “Shree Renuka Sugars Limited” is a public limited
register under the company act.
The object is to encourage proper department of agriculture production. The nature of
business is to encourage self-help thrift and co-operative amongst members.
The Renuka Sugars Limited is a production company which produces sugar and ethanol the
company, through our global scenario by dominating our aptitude and accomplishing
synergies.
-Power (electricity)
-Ethanol
-Bio- Fertilizer
2.3 VISION & MISSION, QUALITY POLICY
VISION:
As they are small in nature. First and main vision are to expansion. Another important vision
is to increase their production capacity to competitive in the market.
To be the list of world’s top three integrates sugar and ethanol the company, through our
global scenario by dominating our aptitude and accomplishing synergies .
MISSION:
1. To boost its installed capacity, to improve margins and reduce cyclically of business.
2. Gain at large the raw material security.
3. Enchance its strengths of corporate and consumer satisfication.
4. To lower the price risk in sugar by help of hedging.
5. To have a constant strong presence in export market for ethanol.

QUALITY POLICY:
Quality policy to customer satisfaction shall be top propriety this shall be achieved by
complying with the requirement of quality management system and continuously improve its
effectiveness.
Employee shall be trained and motivated to achieve the quality work competence skill.
Other values
1. Cost and time consciousness.
2. Trust and team spirit
3. Respect for others
4. Integrity
Manufacturing department hierarchy
Chief chemist
Deputy chief chemist
Manufacturing chemist
Lab in charge
Lab boy

WEIGHING SCALE
RAW JUICE
2.4 WORK FLOW MODLE
A)
B)
BAGASSE
TO
RAW JUICE FOR
PROCWSSING
CANE
CANE
MILLS
JUICE HEATER
LIME AND
SULPHITATION TANK
JUICE HEATER
CLARIFIER
FILTRATION FOR PROCESS
FILTER CAKE
VACCUM
FILTER
CLEAR JUICE MU JUICE

c)
D)
PAN BOLIDING
CENTERIFUGAL TO CURING
THICK SYRUP
EVAPORATOR
CLEAR JUICE
SUGAR GRADER FOR GRANDING

2.5 PRODUCT PROFILE
WHITE SUGAR
 White sugar is sugar which has been refined and cleaned so that is has a white look and
no molasses flavor. It contains 99.9% sweetness.
VHP (Very High Polarized ) sugar –It is a type of raw sugar, manufactured mainly in
Brazil, Which is classified as a chemical product which is easy to transport and need
further refining before it can be used for consumption. In recent years, VHP sugar (raw
sugar) has been a standard sugar category traded on the international market.

ETHANOL
 In India, ethanol can be only from molasses where as mills in Brazil produce ethanol
directly from sugarcane juice. Ethanol can be used for portable alcohol industry,
chemical industry and as a bio-fuel in vehicles (direct/blended with gasoline).
 In India, ethanol is primarily by convertible alcohol industry, oil marketing companies
(for blending with petrol) and chemical industries.

BIO FERTILISER
 Mud/filter cake obtain as waste during sugar manufacturing process is mixed with the
efficient from distillery operations to give organic product manure. This organic
manure is organic, eco-friendly and cost-effective compared to chemical fertilizers
POWER
 Shree Renuka Sugar produced power from bagasse (sugarcane by product) for capacity
consumption and sale to the sale to the state grade in India and brazil. The bio energy
produced from bagasse id a renewal energy that provides a significance reduction to
house gas emission.

2.6 OWNERSHIP PATTERN
BOARD OF DIRECTORS
Mr Atul Chaturvedi Chairman
Mr Vijendra Singh (CEO) Executive Director
Mr Madhu Rao Director
Mr S.K. Tuteja Director
Mr Bharatkumar Metha Director
Mr Priyanka Mallick Director
2.7 FUTURE GROWTH AND PROSPECTUS
Unit No Future plans capacity
Athani To expand crushing capacity of sugar
plant
From 1000 To 5000 MT/Day
To set Destillery plant From 35 KLPD To KLPD

CHAPTER – 3
MICKENSY’S 7S FRAMEWORK
The McKinney’s 7 S Frame work is a management model developed by well-known Business
advisor Robert H Waterman, Jr. and Tom Peters in the 1980’s. This was a strategic vision for
groups to include business, commercial unites, and relations. The 7 S are Structure, Strategy,
System, Skills, Style, Staff and Shared values.
The model is most often used as an structural enquiry tool to assess and monitor changein the
internal situation of an administration.
The model is based on the theory that, for an organization to perform well, these Seven
elements and to be associated mutually reinforcing. So, the model can be used tohelp identify
what needs to be realigned to improve performance, or to maintain alignment (and
presentation) during other types of change.
Whatever the type of change – restructuring, new courses, organizational merger, new systems,
change of leadership and on – the model can be used to appreciate how the organizational
elements are consistent, and so ensure that the wider impact of changes made in one area is
taken into deliberation.
7S FRAME WORK CHART

The IT systems process is formal; organization charts and reporting lines; “Hard” define
the elements are easier or management and identify can straight influence them: these
are strategy declarations.
These soft elements are as important as the hard elements if the organization is going
to be successful. The less tangible and more unfair by culture, “Soft” elements, on the
other hand, can be more difficult to describe.
The way the model is accessible in figure 1 below shows the interdependency of the
elementsand specifies how a change in one moves all the others.
1. STRUCTURE
ORGANIZATION STRUCTURE
Chairman
Board of Director and Managing Director
Administrative
Department
Purchase
Department
Human
Resource
Department
Store
Department
Mechanical
Department
Sugar cane
Department
Production
Department
Sales
Department
Financial
Department
Vice Chairman

1. STAFF
The group of people who work for a particular organization.
No. Of Employee:-
SEGEMENT OFFICER WORKERS TOTAL
Office/General 1 - 1
Sugar production 119 131 250
Co-Generation 9 42 51
Distillery Unit 25 27 52
By- products &
Miscellaneous
1 0 1
No. Of Workers
2. SYSTEM
System refers to how the production system, delivery, information system and
securitysystem is maintained in its company.
1. Manufacture system
 The process production consisting of inputs of sugar cane and output of the sugar.
2. Supply System
The distribution system of the products in the following way;
 Direct sales are made within the state and outside the state.
 The producers are also sold directly to the wholesalers.

3. Information
Flow of information
B.O.D
Flow of Information
3. SKILL
If the organization is to achieve its goal, it is necessary to have right people with right skill to
complete it, Skills reference to ability to perform certain task without any trouble.
At Shree Renuka Sugars Industry Limited, has right people with right skilled with reference to
advanced new ideas, promotion the products with latest knowledge achieving the goal
according to establish values.
Skill implemented Shree Renuka Sugars Industry Limited has been divided into 3 levels. They
are
1. Top level
2. Middle level
3. Lower level
Department manager
Chairman
Managing
Joint Managing Director
Executive Director
Project Coordinator

4. STYLE
The style which is showed to outside world is derived from the styles and behaviour displayed
inside organization. The internal style of the organization belongings how staff feels, think and
do the jobs. Therefore an organization is replication of its culture.
They are excited in achieving goals; staffs are co-operative and completed the assigned jobs
within given period of time. At Shree Renuka Sugars Industry Limited staffs are also goal
oriented.
5. STRATEGY
The way in which a business aims to improve its position in relation to its completion is
Embodied in its strategy.
It introduces the new technologies and products strategy importance in time with national
objectives to improve, quality, reliability of products there by accomplishing the international
criteria.
6. SHARED VALUE
Share values are denoting to company policies. In Renuka Sugar Industry Limited the
following policies are maintained.
1. Quality policies
2. Environmental policies
3. Total productivity policies

3.2 Porter’s Five force Model
Porters Five Force Model
1.Supplier power. An assessment of how easy it is for suppliers to drive up prices. This is
driven by the: number of suppliers of each essential input; uniqueness of their product or
service;relative size and strength of the supplier; and cost of switching from one supplier to
another.
2.Buyer power. An assessment of how easy it is for buyers to drive prices down. This is driven
by the: number of buyers in the market; importance of each individual buyer to the
organisation; and cost to the buyer of switching from one supplier to another. If a business has
just a few powerful buyers, they are often able to dictate terms.
3.Competitive rivalry. The main driver is the number and capability of competitors in the
market. Many competitors, offering undifferentiated products and services, will reduce market
attractiveness
4.Threat of substitution. Where close substitute products exist in a market, it increases the
likelihood of customers switching to alternatives in response to price increases. This reduces
both the power of suppliers and the attractiveness of the market.

5.Threat of new entry. Profitable markets attract new entrants, which erodes profitability.
Unless incumbents have strong and durable barriers to entry, for example, patents,
economies of scale, capital requirements or government policies, then profitability will
decline to a competitiverate.
Arguably, regulation, taxation and trade policies make government a sixth force
for manyindustries.

CHAPTER 4
SWOC ANALYSIS
STRENGTHS:
1. Good management reputation.
2. Maintaining cordial relationship with sugarcane formers.
3. Effective products with superior quality output.
4. Quality products as compared to revivals.
5. Adopting new technology for the manufacturing purpose.
WEEKNESS:
1. Cost of exporting raw-sugar.
2. Shortage of raw sugar in excess.
3. Harden in reaching of output because of lack of improper transportation i.e.
roads and highways.
OPPORTUNITIES
1. Favorable location for exports.
2. Sophisticated Technology.
3. Concentrated on corporation and industrial buyers.
4. Maintained the record of successful acquisitions.
5. Effective and proper utilization of fixed assets.
CHALLENGES
1. Seasonal nature
2. Small and uneconomic size of factories
3. No proper utilization of by products like molasses and blogases.

CHAPTER -5
ANALYSIS AND INTERPRETATION OF
FINANCIAL STATEMENTS
FINANCE
Finance plays a vital role in the operative of all developed units. Finance is the life
plasma ofthe organization. In sugar industry finance and accounts departments has very
vital roles. The economic plan basically deals with raising and proper operation of
funds. The funds can be raised by issue of shares as well as by raising loans various
causes.
The finance manager supports with accountant manager and an auditor supporter
looks finance management.
FUNCTIONS
1. They look after the overall financial supplies of the company.
2. They see that proper inflow and outflow of income and spending is maintained.
3. Costing and accounting is worked and maintained.
4. Yearly budget is farmed so that each department can meet their cash requirements.
5. Budget arranged is based on sales forecasting, expenses forecasting, cost
forecasting,purchase forecasting etc, which is acquiesced by respective sections.
Finance Departments Consists Of Following Sub Branche
1. General Account Section
2. Cane Account Section
3. Sales Section
4. Cash Section
Account officers are the head of this department, accountant sales manager and head cash assisthim

Function of Each Section Are Summarised Below
1. General Account Section
General accounts are looking after the passing bills and payments. Management is also
done by General Account Section and preparation of financial statements i.e. balance
sheet, profit and loss account is attended by general account section.
2. Cane Account Section
The bills and payments concerned to procurement of sugar cane, is attended by cane
account section. Payment like cane bills, transport and harvesting bills etc.., are
prepared and passed in account section
3. Sales Section
It is looking after sales of sugar and by products molasses, rectified spirit and other
scrapmaterials. It is keeping records of the concerned to all sales section.
4. Cash Section
It is looking after the payments of all general bills and salary bills apart from cane
payments and it is also looking after receipt of cash and cheque payments.
All accounts are maintained in usual manner,
Various records and books kept are
a) General ledger
b) Sub ledger
c) Subsidiary
d) Cash book
e) Bank book
f) Voucher
Each branch prepares trading profit and loss account and balance as on 31st
March
everyyear. And the government auditor audits the accounts.

Statement of Profit and Loss for the year ended 31st March, 2021
Particulars Note No Amount(in Lakhs)
INCOME
Revenue from operations 2.18 30679.58
Other income 2.19 107.97
Total Revenue 30787.55
EXPENSES
Cost of material consumed 2.20 27665.37
Changes in inventories 2.21 (6280.27)
Other Manufacturing expenses 2.22 2058.96
Excise and Service Tax 2044.29
Employee benefits expenses 2.23 1303.28
Finance costs 2.24 3635.69
Depreciation and amortization expenses 2.1 1334.28
Other expenses 2.25 1414.66
Total Expense 33176.27
Profit Before Tax (2388.72)
Tax expenses
1) Current tax -
2) Deferred tax (626.72)
Profit for the year (1761.99)
Other comprehensive income(OCI)
Items that will not be reclassified to profit or loss 23.74

Tax on items that will not be reclassified to profit or
loss
-
Items that will be reclassified to profit or loss:
Tax on items that may be reclassified to profit or loss
Items that may be reclassified subsequently to profit or
loss
Total other comprehensive income/loss for the
year, net of tax
Total comprehensive income for the year (1738.26)
Earnings per share:
Basic earnings per share of 10/- each (5.10)
Diluted earnings per share 10/- each

Balance Sheet as on 31st March, 2021
PARTICULARS Note No AMOUNT(in lakhs)
I. ASSETS
Non Current
Property plant and Equipment 2.1 26440.54
Capital Work In Progress 2.1 1126.02
Intangible assets -
Financial assets
Investments 2.2 108.24
Other financial assets 2.3 214.60
Other Non-current assets 2.4 0.00
27889.40
Current assets
Inventories 2.5 32434.62
Financial assets
Investments 2.2 0.0
Trade receivable 2.6 3835.87
Cash and cash equivalent 2.7 169.35
Other bank balances 2.8 15.00
Other financial assets 2.3 4.47
Other current assets 2.4 7606.26
44065.56
71954.96
II. EQUITY AND LIABILITIES
Equity
Share capital 2.8 3455.60
Other Equity 2.9 17694.09
21149.69

Liabilities
Non-current liabilities
Financial Liabilities
Borrowings 2.10 6541.43
Long Term Provision 2.11 182.65
Deferred tax liabilities (net) 2.12 765.22
Other Non-current liabilities 2.13 0.00
7489.30
Current liabilities
Financial liabilities
Borrowings 2.10 25385.68
Trade payables 2.14 11271.89
Other financial liabilities 2.15 3716.34
Liabilities for current tax (net)
Other current liabilities 2.13 2931.57
Provision 2.16 10.49
Current Tax Liabilities (net) 2.17 0.00
43315.97
TOTAL 71954.96

Particulars Note No Amount
INCOME
Revenue from operations 28 2,21,81,35,442.69
Other income 29 9,64,80,241.98
Total Revenue 2,31,46,15,648.67
EXPENSES
Cost of material consumed 30 2,36,81,06,830.49
Purchase of Stock-in-Trade
Changes in inventories of Finished goods,
Work-in-Progress
31 (78,07,75,813.40)
Other Manufacturing expenses 32 13,53,34,411.98
Employee benefits expenses 33 12,96,30,060.45
Finance costs 34 20,83,42,879.67
Depreciation and amortization expenses 2&3 13,19,96,304.86
Other expenses 35 11,13,96,881.23
Total Expense 2,30,40,33,555.27
Profit Before Exceptional and Extraordinary Items
and Tax
1,05,82,129.40
Exceptional item -
Profit Before and Extraordinary Items and Tax 1,05,82,129.40
Extraordinary Items -
Profit Before Tax 1,05,82,129,40
Tax Expenses
a)Current tax (including wealth Tax) 21,57,575.00

b)Deferred tax Charge (credit) 4,18,68,019.00
c)Less: MAT credit entitlement (21,57,575.00)
4,18,68,019.00
Profit for the period from continuing operations (3,12,85,889.60)
Profit(loss) from discontinuing operations before tax -
Tax expenses of discontinuing operations -
Profit(loss) from discontinuing operations after tax -
Profit for the period (3,12,85,889.60)
Basic Earning per share of 10 each
(In Rupees)
38 (0.91)
Diluted Earning Per Share of 10 each
(In Rupees)
38 (0.91)

PARTICULARS Note No AMOUNT
I. ASSETS
Non Current Assets
Property plant and Equipment 2 2,71,88,79,874.20
Capital Work In progress 2 -
Investment Property -
Good will -
Other Intangible assets -
Intangible assets under development 3 -
Biological assets other than better plant
Financial assets
Deferred tax assets (net) 4 -
Other Non-current assets 5 2,13,44,721.00
Current Assets
Inventories 6 2,55,99,19,535.40
Financial Assets
Investment 7 53,24,000.00
Trade receivables 8 37,88,40,676.24
Cash and cash Equivalents 9 7,45,71,972.89
Bank balance 10 -
Loans and advances 11 70,23,40,008.87
Others 12 -
Current tax assets (net) 13 -
Other current assets 14 5,62,60,666.06
TOTLE 6,51,74,81,454.67
Equity
Share capital 15 34,55,60,000.00

Other Equity 16 2,06,48,11,819.84
Liabilities
Non-current liabilities
Financial Liabilities
Borrowings 17 37,01,07,575.00
Trade Payables 18 -
Other financial liabilities
Provision 19 3,10,99,168.00
Deferred tax Liabilities(tax) 20 28,01,39,484.00
Other Non-current Liabilities 21 -
Current liabilities
Financial liabilities
Borrowings 22 2,64,67,77,039.91
Trade payables 23 26,86,38,815.76
Other financial liabilities 24 -
Other current liabilities 25 50,81,89,977.16
Provision 26 -
Current Tax Liabilities (net) 27 21,57,575.00
TOTAL 6,51,74,81,454.67

Particulars Note No Amount
INCOME
Revenue from operations 21 2,84,01,73,851.36
Other income 22 5,76,03,745.50
Total Revenue 2,89,77,77,596.86
EXPENSES
Cost of material consumed 23 1,21,65,62,469.85
Purchase of Stock-in-Trade -
Changes in inventories of Finished goods,
Work-in-Progress
24 60,62,31,037.40
Other Manufacturing expenses 25 22,57,31,037.40
Employee benefits expenses 26 13,22,11,106.55
Finance costs 27 26,49,48,670,20
Depreciation and amortization expenses 11&12 11,53,47,353.69
Other expenses 28 22,28,66,961.47
Total Expense 2,78,38,99,476.47
Profit Before Exceptional and Extraordinary Items
and Tax
11,38,78,120.04
Exceptional item
Profit Before and Extraordinary Items and Tax 11,38,78,120.04
Extraordinary Items
Profit Before Tax 11,38,78,120.04
Tax Expenses
a)Current tax (including wealth Tax) 2,32,18,441.00

PARTICULARS Note No AMOUNT
I. ASSETS
Non-Current Assets
Fixed Assets
Tangible Assets 11 2,40,69,43,146.15
Intangible Assets 12 -
Capital work-in-progress 11 38,34,54,640.70
Intangible Assets under 12 -
Development
Non-current Investment 13A 37,98,000.00
Deferred Tax Assets (net) 4 7,10,51,634.00
Long-term Loans & Advances 14
Other Non-current Assets 15 62,89,318.25
Current Assets:
Current Investments 13B -
Inventories 16 1,77,04,71,727.92
Trade Receivables 17 43,69,79,355.68
Cash & cash Equivalent 18 12,73,64,703.99
Short-term Loans & Advances 19 27,23,77,488.63
Other Current Assets 20 27,34,07,156.95
TOTLE 5,75,21,37,172.27
Shareholder’s Funds: 1 34,55,60,000.00
Share Capital 2 2,09,60,97,709.44
Reserves & Surplus 2,44,16,57,709.44
Money Received against
Share warrants

Share Application Money
Pending Allotment
Non-Current Liabilities
Long-term Borrowing 3 10,01,36,866.00
Deferred tax Liabilities (Net) 4 30,93,23,099.00
Other Long-term Liabilities 5 5,79,92,610.65
Long-term Provision 6 2,32,18,441.00
Current Liabilities
Short-term Borrowing 7 1,21,66,16,680.28
Trade Payable 8 4,57,72,168.33
Other Current Liabilities 9 1,53,56,28,365.57
Short-term Provision 10 2,32,18,441,.00
TOTAL 5,75,21,37,172.27

Ratio Analysis
1.Current Ratio = Current Assets
Current Liabilities
Current Ratio
Analysis and Interpretation:
The above Table is showing the details regarding the current ratio of the shree renuka Sugar
LTD. The standard current ratio in 2019 is 1.02%, in 2020 is 1.10% and in 2021 is 1.02%.
Compare to year-2019 and year-2021 ratio it’s not good for company.
Year 2019 2020 2021
Current Assets 2880600433 3777256859 4406556000
Current Liabilities 2821235655 3425763407 4331597000
Current Ratio 1.02 1.10 1.02
1.12
1.1
1.06
1.08
Current ratio
1.04
1.02
1
0.98
0.98 2019 2020 2021

2. Net Profit = Net Profit * 100
Net Sales
Table showing Net Profit Ratio of shree renuka Sugar Limited
Net Profit
The above Table is showing the details regarding the Net Profit of the shree renuks Sugar
Limited. The standard Net ratio in 2019 is 3.09%, in 2020 is -0.90% and in 2021 is - 0.43%.
Compare to year-2020 and 2021 ratio it’s not good for company.
Year 2019 2020 2021
Net Profit 8778800000 (3128600000) (1761990000)
Sales 2840173851 3462627000 34626270000
Net Profit Ratio 3.09 -0.90 -0.43
3.5
3
2.5
2
1.5
1 Net profit
0.5
0
2019
-0.5
-1
-1.5
2021
2020

3. Cash Ratio = Cash & Bank Balance
Current Liabilities
Cash Ratio
The above Table is showing the details regarding the cash ratio of the shree renuka Sugar
limited. The standard cash ratio in 2019 is 0.45%, in 2020 is 0.19% and in 2021 is 0.03%.
Compare to year-2021 ratio it’s not good for company.
Year 2019 2020 2021
Cash & Bank
Balance
1273647030 6710200000 1693500000
Current Liabilities 2821235655 3425763407 4331597000
Cash Ratio 0.45 0.19 0.03
0.5
0.45
0.4
0.35
0.3
0.25
Cash ratio
0.2
0.15
0.1
0.05
0
2019 2020 2021

4. Quick ratio= current assets-stock-preliminary expenses
-------------------------------------------------------
Current Liabilities-Bank over draft
Quick ratio
The above Table is showing the details regarding the Quick ratio of the shree renuka Sugar
limited. The standard Quick ratio in 2019 is 0.39%, in 2020 is 0.35% and in 2021 is 0.26%.
Compare to year-2021 ratio it’s not good for company.
Year 2019 2020 2021
Current assets –
Stock – Preliminary
expenses
1110128706 1217337324 1163038000
Current Liabilities –
Bank over draft
2821235655 3425763407 4331597000
Quick ratio 0.39 0.35 0.26
0.45
0.4
0.35
0.3
0.25
0.2 Quick ratio
0.15
0.1
0.05
0
2019 2020 2021

5. Gross Profit Ratio = Gross Profit*100
Net Sales
Gross Profit Ratio
Gross Profit Ratio
The above Table is showing the details regarding the Gross profit ratio of the shree renuka
Sugar limited. The standard current ratio in 2019 is 0.40%, in 2020 is 0.30% and in 2021 is -
0.58%. Compare to year-2021 ratio it’s not good for company.
Year 2019 2020 2021
Gross Profit 113878120.04 1058212900 (2388720000)
Net sales 2840173851 3462627000 4064916000
Gross Profit Ratio 0.40 0.30 -0.58
0.6
0.4
0.2
0
2019 2020 2021 Gross profit
-0.2
-0.4
-0.6
-0.8

6. Total Asset Turnover Ratio = Sales
Average Total Assets
Year 2019 2020 2021
Sales 2840173851 3462627000 4064916000
Average Total Assets 5752437172 6517481454 7195496000
Total Asset Turnover 0.49 0.53 0.56
Total Asset Turnover Ratio
Total Assets Turnover Ratio
The above Table is showing the details regarding the Total Asset Turnover ratio of the shree
renuka Sugar limited. The standard Total Asset Turnover ratio in 2019 is 0.49%, in2020 is
0.53% and in 2021 is 0.56%. Compare to year-2019 ratio it’s not good for company.
0.58
0.56
0.54
0.52
Assets turnover ratio
0.5
0.48
0.46
0.44
2019 2020 2021

7. Working Capital Turnover Ratio = Sales
Working Capital
Year 2019 2020 2021
Sales 2840173851 3462627000 4064916000
Working Capital 2166616680 2646777039 2538568000
Working Capital
Turnover Ratio
1.31 1.30 1.60
Working Capital Turnover Ratio
Working Capital Ratios
The above Table is showing the details regarding the Working Capital ratio of the shree renuka
Sugar limited. The standard Working Capital ratio in 2019 is 1.31%, in 2020 is 1.30% and in
2021 is 1.60%. Compare to year-2020 ratio it’s not good for company.
1.8
1.6
1.4
1.2
1
0.8
Working capital
ratio
0.6
0.4
0.2
0
2019 2020 2021

8. Capital Employed Turnover Ratio = Net Sales
Capital Employed
Year 2019 2020 2021
Net Sales 2840173851 3462627000 4064916000
Capital Employed 5752137172 6517481454 7195496000
Employed turnover 0.49 0.53 0.56
Capital Employed Turnover Ratio
Capital Employed Turnover Ratio
The above Table is showing the details regarding the Capital Employed Turnover ratio of the
shree renuka Sugar limited. The standard Capital Employed Turnover ratio in 2019 is 0.49%,
in 2020 is 0.53% and in 2021 is 0.56%. Compare to year-2019 ratio it’s not good for company.
0.58
0.56
0.54
0.52
Employed turnover ratio
0.5
0.48
0.46
0.44
2019 2020 2021

9. Fixed Assets Turnover Ratio = Sales
Fixed Assets
Year 2019 2020 2021
Sales 2840173851 3462627000 4064916000
Fixed Assets 2871536739 2740224595 2788940000
Fixed Assets
Turnover Ratio
0.98 1.26 1.45
Fixed Assets Turnover Ratio
Fixed Assets Turnover Ratio
The above Table is showing the details regarding the Fixed Asset Turnover ratio of the shree
renuka Sugar limited. The standard Fixed Asset Turnover ratio in 2019 is 0.98%, in 2020 is
1.26% and in 2021 is 1.45%. Compare to year-2019ratio it’s not good for company
1.6
1.4
1.2
1
0.8
Fixed assets turnover ratio
0.6
0.4
0.2
0
2019 2020 2021

10. Inventory Turnover Ratio = sale
Average Inventory
Year 2019 2020 2021
Sales 2840173851 3462627000 4064916000
Average Inventory 1082400000 2615720000 3243462000
Inventory Turnover
Ratio
2.62 1.32 1.25
Inventory Turnover ratio
Inventory Turnover Ratio
The above Table is showing the details regarding the Inventory Turnover ratio of the shree
renuka Sugar limited. The standard Inventory Turnover ratio in 2019 is 2.62%, in 2020 is
1.32% and in 2021 is 1.25%. Compare to year-2020 and year-2021 ratio it’s not good for
company.
3
2.5
2
1.5
Inventory turnover
ratio
1
0.5
0
2019 2020 2021

LEARNING EXPERIENCE
I am URMILA A BHOSALE got knowledge about how organization works or carries on its
activities and supporting activities.
 How promptness – Here they are very strict about the working hours.
 How communication takes place between the management & employees.
 How they train their workers or workers off the job and on the job.
 Work flow, what are the fences in work follow and how to reject or reduce the
barriers.

CONCLUSION
A study on capital budgeting for expansion project of sugar crushing, according to my study
and knowledge, the project on capacity of sugar crushing expansion shows positive outcome
(result). The initial investment can be recovery within shorter period of time than the
expectation of company’s management. The company will have long term return benefit
because IRR is more than the cost of capital. There company’s value of share and market value
will also an increase because the project’s NPV is positive.
At last, I would conclude that the report done by me on capital budgeting of Shree Renuka
Sugar ltd expansion project on sugar crushing capacity is profitable by estimating all the
techniques of capital budgeting.

BIBLIOGRAPHY
 Records from the factory manuals, prospects and annual reports
 Company annual reports of last 3 year
 www.renukasugars.com.

renuka sugars intership report.docx

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