Financial Health of Food Processing Industry in Tinsukia District of Assam

Food processing industry transforms raw food stuff or semi finished food into a convenient form for the use of end users. This industry is linked with the activities of agriculture, horticulture, plantation, dairy, animal husbandry and fisheries. Development of food processing industry minimises wastage of agricultural raw materials, increases the value of agricultural products and ensures better prices to farmers as well as affordable prices to consumers. The researcher has made an attempt to access financial analysis of the food processing industry of the district. The financial analysis of the food processing industrial units is attempted to make through liquidity measurement, solvency measurement, profitability measurement and break even analysis. The infrastructural problem, existence of large number of unskilled workers, absence of wider market, frequent strikes, improper banking provisions, absence of government supports are found as the major hurdles in the development of food processing units in Tinsukia district. Though the food processing industrial units are contributing a towards the district economy as well as state economy, the policy makers and the governmental officers are seen to neglect their role and contribution. There is a need to transform the outlook of young generation of the district

Food processing industry transforms raw food stuff or a convenient form for the use of end users. This industry is linked with the activities of agriculture, horticulture, plantation, dairy, animal husbandry and fisheries. Development of food processing industry minimises wastage of agricultural , increases the value of agricultural products and ensures better prices to farmers as well as affordable prices to consumers. The researcher has made an attempt to access financial analysis of the food processing industry of the district. The financial alysis of the food processing industrial units is attempted to make through liquidity measurement, solvency measurement, profitability measurement and break even analysis. The infrastructural problem, existence of large number of unskilled workers, of wider market, frequent strikes, improper banking provisions, absence of government supports are found as the major hurdles in the development of food processing units in Tinsukia district. Though the food processing industrial units are contributing a lot towards the district economy as well as state economy, the policy makers and the governmental officers are seen to neglect their role and contribution. There is a need to transform the outlook of young uidity; solvency;

INTRODUCTION
The Ministry of food processing industries, India defines that food processing industries cover two processes -one manufactured process in which raw product of agriculture, animal husbandry or fisheries is transformed to make commercial edible product and the other is value-added process over food products. The food processing industry is one of the largest industries in India and it is ranked fifth in terms of production, consumption, export and expected growth. The importance of food processing has been increased tremendously in recent years. Development of food processing industries minimises waste of agricultural raw materials, increases the value of agricultural products ensures better prices to farmers as well as affordable prices to consumers. Though India is agricultural based economy since long and her base in agriculture is reasonably strong at present, still wastage of agricultural produce is sizeable. India's 2% processing in fruits and vegetables, 35% in milk, 21% in meat and 6% in poultry products are far low comparing to 40% of processing of agriculture produce in China, 30% in Thailand, 70% in Brazil, 78% in the Philippines and 80% in Malaysia in general.

OBJECTIVES OF THE STUDY
a) To examine the financial statement of the food processing industries of the study b) To identify the problems of the food processing industry and suggest corrective improvement

Financial Health of Food Processing Industry in
The Ministry of food processing industries, India defines that food processing industries cover two one manufactured process in which raw product of agriculture, animal husbandry or fisheries s transformed to make commercial edible product added process over food products. The food processing industry is one of the largest industries in India and it is ranked fifth in terms of production, consumption, export and growth. The importance of food processing has been increased tremendously in recent years. Development of food processing industries minimises waste of agricultural raw materials, increases the value of agricultural products ensures better prices to rs as well as affordable prices to consumers. Though India is agricultural based economy since long and her base in agriculture is reasonably strong at present, still wastage of agricultural produce is sizeable. India's 2% processing in fruits and es, 35% in milk, 21% in meat and 6% in poultry products are far low comparing to 40% of processing of agriculture produce in China, 30% in Thailand, 70% in Brazil, 78% in the Philippines and

OBJECTIVES OF THE STUDY
To examine the financial statement of the food essing industries of the study area.
b) To identify the problems of the food processing industry and suggest corrective measures for A. Key Indicators : To make financial analysis of the food processing units of the district, the following financial ratio are used . To make a) liquidity measurement -current ratio b) Solvency measurement-Debt to Total Capital Ratio c) Profitability measurement-Gross profit ratio (GP ratio) d) Break even analysis -(ratio of Fixed cost to difference between price of output and variable cost) e) Margin of safety (the current sales are subtracted from the breakeven point, and then result obtained is divided by sales) are applied.

FINDINGS
A. Liquidity: Liquidity measurement analyses the short term financial position and examines whether an industrial unit is capable of paying short term or current obligations. Here Current Ratio is used to analyse the liquidity position of the food processing industries.
Current ratio: The current ratio analysis of sample food processing industrial

Source: Field Survey
Analysis shows that except fruits and vegetable processing units, all the units are able to pay off their short term liability in a better way as their current ratios are higher than the ideal ratio of 2.1. The fruits and vegetable processing units have heavier current liability comparing to their current assets.
B. Long term solvency: Analysis of long term solvency of a unit examines its power to repay long term liabilities by long term assets. An ideal ratio for debt to total capital ratio is less than1:2 or less than 50 per cent. The category wise debt to total capital ratio for food processing units of the district is shown below.  C. Profitability measurement: The analysis of profitability provides the information regarding the capacity of earning profits from its sale. Gross to profit ratio is used to analyse profitability of the food processing units under the study.
Gross profit ratio: Higher is the gross profit ratio, greater is the level of capability of earning profits by an industrial unit. Gross profit is calculated by subtracting cost of goods sold from the The following table shows the gross profit ratio of different categories of food processing units of Tinsukia district.

Consumer food 50
Average 530

Source: Field survey
The table given above indicates that the breakeven sales value is different among different category of food processing units. The breakeven sale value of fruits and vegetables processing is lowest (Rs 6664) and that of grains and cereal processing units is highest (Rs 37587) among the different categories of units in the district. The breakeven sale of grains and cereal processing units is higher than the district average breakeven sale (Rs 17836.50) and those of dairy, fruits and consumer processing units are lower than the average district breakeven sale.  The table given above indicates that the breakeven sales value is different among different category of food processing units. The breakeven sale value of fruits and vegetables processing is lowest (Rs 6664) ssing units is ) among the different categories of units in the district. The breakeven sale of grains and cereal processing units is higher than the district 17836.50) and those of dairy, fruits and consumer processing units are lower .

E. Margin of safety:
Margin of safety is simply the difference between current sale and the breakeven sale. Margin of safety can also be expressed as ratio by dividing the margin of safety to current sale and multiply the result by 100. The margin of safety is used to inspect on profit or loss with the changes of sales. margin of safety of a unit implies that that unit is better protected from sales variations comparing to smaller ones. The following table shows that the margin of safety ratios of diary, grain consumer food. Margin of safety is simply the difference between current sale and the breakeven sale. Margin of safety can also be expressed as ratio by dividing the margin of safety to current sale and multiply the result by 100. The margin of safety is used to inspect the effect on profit or loss with the changes of sales. Larger margin of safety of a unit implies that that unit is better protected from sales variations comparing to The following table shows that the margin of safety ratios of diary, grains and cereals and @ IJTSRD | Available Online @ www.ijtsrd.com processing units of Tinsukia district are more or less equal to the average margin of safety ratio of district food processing units(79.8%). Only the margin of safety ratio of fruits and vegetable processing units is lower (74.1%) than that of average margin of safety ratio to some extent.

MAJOR PROBLEMS OF THE FOOD PROCESSING INDUSTRIAL UNITS:
a) The highest number of food processing units(44.4 percent) in Tinsukia sub gave production problem, the highest number of units (52.9 per cent)in Sadiya problem and the highest number of units(0.40%) in Margherita sub production problem as their first ranked problem.

b)
The marketing problem is identified as second ranked problem by the highest number of food processing units(48.2 percent) in Tinsukia sub division, the production problem is identified as the second ranked problem by the highest number of units (41.2 per cent)in Sadiya and production problem and marketing problem are given second ranked problem by the highest two groups of units(0.40% of each) in Margherita sub-division.

c)
The third ranked problem is identified as marketing problem by the highest number of units (29.7 percent) in Tinsukia sub production problem and marketing problem by two group of large units ( There should be separate ministry for food processing industry in the state of Assam as observed in the central government so that proper programmes and projects for the benefits of food processing industrial units ca be undertaken.

c)
Proper infrastructural facilities in all forms should be developed as far as possible.
Particularly in greater part of Sadiya and in some parts of Margherita, the infrastructural provisions for the growth of any type of industrial unit are very poor comparing to Tinsukia sub-division. d) The NGOs operating in the district should be motivated to take a positive step for the growth and development of food processing units.

Conclusion:
Though Tinsukia is the topmost commercial and industrial centre of in the entire upper Assam, the performance of food processing units from different angles are not fully satisfactory. The infrastructural problem, existence of large number of unskilled workers, absence of wider market, frequent strikes, improper banking provisions, absence of government supports are some of the major hurdles in the development of food processing units in Tinsukia district. There is a need to transform the outlook of young generation of the district to challenge their traditional job seeking motive. They should be motivated to take the responsibility of job providers instead of job seekers. Thus entrepreneurial developmental schemes should be introduced to a greater extent in different part government side. With the growth of level of living standard and with the increase in income level of common people, there enlarges a market where consumers are attracted to purchase processed and quality foods. Again, as in Tins and industry are at a good position; there is a huge potentiality to develop the food processing units and thereby to contribute a lot to the district as well as state economy. Thus, it is the responsibility of not only the government officials but also so the responsibility of the people in general to transform the Particularly in greater part of Sadiya and in some parts of Margherita, the infrastructural provisions for the growth of any type of are very poor comparing to The NGOs operating in the district should be motivated to take a positive step for the growth and development of food processing is the topmost commercial and industrial centre of in the entire upper Assam, the performance of food processing units from different angles are not fully satisfactory. The infrastructural problem, existence of large number of unskilled f wider market, frequent strikes, improper banking provisions, absence of government supports are some of the major hurdles in the development of food processing units in Tinsukia district. There is a need to transform the outlook of e district to challenge their traditional job seeking motive. They should be motivated to take the responsibility of job providers instead of job seekers. Thus entrepreneurial developmental schemes should be introduced to a greater extent in different parts of the district from the government side. With the growth of level of living standard and with the increase in income level of common people, there enlarges a market where consumers are attracted to purchase processed and quality foods. Again, as in Tinsukia both agriculture and industry are at a good position; there is a huge potentiality to develop the food processing units and thereby to contribute a lot to the district as well as state economy. Thus, it is the responsibility of not officials but also so the responsibility of the people in general to transform the International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470 @ IJTSRD | Available Online @ www.ijtsrd.com | Volume -1 | Issue -6 | Sep -Oct 2017 Page: 652 challenges and hurdles into opportunity for the realisation of bright future prospects of food processing units of Tinsukia district.