Achieving sustainable development goals through elevating socio‐economic status

Abstract

Purpose

The purpose of this study is to examine the financial and operating performance of Saraswati Sugar Mills Limited and its impact on the society in the employment generation and upliftment of the socio‐economic status. The study also aimed at finding out the factors responsible for low performance (if any). It helped in comparison of changes in static data from years 1995‐1996 to 2010‐2011.

Design/methodology/approach

Ratio analysis and quantitative techniques such as discrete and continuous time approach has been used to analyze the data. To do financial appraisal, five financial ratios namely working capital turnover ratio, percentage of net sales to capital employed, percentage of gross profit to capital employed, cost output ratio, and value added per man/month were calculated and analyzed to understand the changes in financial and operating position of the company.

Findings

The findings revealed the mixed trends of profit and losses. Net sales and capital employed showed an increasing trend while percentage of net profit to capital employed and cost output ratio declined from 1995‐1996 to 2010‐2011. Working capital was utilised effectively. Value added per man/month also registered an increase of 120.11 percent. In nutshell, the financial and operational performance analysis shows the efficiency of the Saraswati Sugar Mills Private Limited and its contribution towards sustainable development of its immediate society.

Research limitations/implications

The ideal situation could have one if a comparative analysis of both private as well as co‐operative sugar mills can lead to a better analysis and therefore, to a better practical approach.

Originality/value

This study provides a framework for performance evaluation when both discretionary and non‐discretionary variables are to be taken into consideration.

Citation

Singh, H. and Aggarwal, N. (2013), "Achieving sustainable development goals through elevating socio‐economic status", Competitiveness Review, Vol. 23 No. 4/5, pp. 398-407. https://doi.org/10.1108/CR-04-2013-0042