Vol. 13 (3&4) : May-Aug., 2022 Issue
Assessing the Financial performance of sugar factories in Andhra Pradesh, India
M. MOHANA RAO, I. V. Y. RAMA RAO, Y. RADHA and D. RAMESH
Department of Agricultural Economics, Agricultural College,ANGRAU, Bapatla - 522101 (Andhra Pradesh), Department of Agricultural Economics, RARS, ANGRAU, Anakapalle - 531001 (Andhra Pradesh), Department of Agricultural Economics, P&M Cell, Lam,ANGRAU,Guntur - 522034 (Andhra Pradesh), Department of Statistics & Computer Applications, Agricultural College, ANGRAU,Bapatla -522101 (Andhra Pradesh)
Designation : Research Scholar, Sr. Scientist & Head, Professor & University Head and Assistant Professor.
Subject : Agriculture Botany
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Total Pages : 8
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Citation :
M. Mohana Rao, I. V. Y. Rama Rao, . Radha and D. Ramesh 2022. Assessing the Financial performance of sugar factories in Andhra Pradesh, India. Green Farming, 13 (3&4): 397-404. May-August. 2022.
ABSTRACT
The present study was undertaken with the specific objectives: to analyse the short term, medium term and long term liquidity status, to assess solvency position, to determine the effectiveness in utilization of assets and to estimate the financial status and the overall efficiency in business of the sugar factories. Probability proportionate sampling procedure was adopted for selection of respondents in the present study. The secondary data pertaining to financial aspects, balance sheet, cash flow statement and profit or loss statements were collected from audit reports of selected sugar factories for a period of 5 years from 2014-15 to 2018-19. Financial ratio analysis was employed for sugar factories to know about the financial strength of organization.
Tests of profitability ratios revealed that the average net profit to total assets ratio and net profit to fixed assets ratio both were negative for NCS sugars and Chodavaram Cooperative sugars and positive for EID sugars i.e., 0.04 and 0.08 respectively. The average gross ratio was more than 100 for Chodavaram Cooperative sugars (153.59) and NCS sugars (136.21) indicating lower net profit and it was below 100 for EID Sugars (28.11) indicating higher profits. It was concluded that The Chodavaram Cooperative Sugars Ltd., Govada and The NCS Sugars Ltd., Latchayyapeta were poor in liquidity position and were financially not feasible. The EID Parry(INDIA) Ltd., Sankili was good in liquidity position and it was financially feasible..
Key words :
Financial performance, North Coastal Zone, Srikakulam, Sugar factory, Test ratios, Visakhapatnam and Vizianagaram
