Indian Agro Sector

FINANCIAL MANAGEMENT

A Project on

Ratio Analysis

Understanding and Analysing the Agro Sector

INDIAN AGRO INDUSTRY

INDUSTRY OVERVIEW

The Indian Agriculture Industry is on the brink of a revolution that will modernize the entire food chain, as the total food production in India is likely to double in the next ten years.

As per recent studies the turnover of the total food market is approximately Rs.250000 crores (US $ 69.4 billion) out of which value-added food products comprise Rs.80000 crores (US $ 22.2 billion). The Government of India has also approved proposals for joint ventures, foreign collaborations, industrial licenses and 100% export oriented units envisaging an investment of Rs.19100 crores (US $ 4.80 billion) out of which foreign investment is over Rs. 9100 crores (US $ 18.2 Billion). The agricultural food industry also assumes significance owing to India's sizable agrarian economy, which accounts for over 35% of GDP and employs around 65 per cent of the population. Both in terms of foreign investment and number of joint- ventures / foreign collaborations, the consumer food segment has the top priority. The other attractive features of the Indian agro industry that have the capacity to lure foreigners with promising benefits are the deep sea fishing, aqua culture, milk and milk products, meat and poultry segments.

Excellent export prospects, competitive pricing of agricultural products and standards that are internationally comparable has created trade opportunities in the agro industry. This further has enabled the Indian Agriculture Industry Portal to serve as a means by which every exporter and importer of India and abroad, can fulfill their requirements and avail the benefits of agro related buy sell trade leads and other business opportunities.

We will first analyze the ratios of 5 individual agro sector companies and then present an industry analysis based on those figures.

COMPANY NAME: Bannariamman Sugars

INDUSTRY: Agro-Sugar

STUDENT”S NAME: Adarsh Nath Jha (69)

Balance Sheet ------------------- in Rs. Cr. -------------------

Mar '03 Mar '04 Mar '05 Mar '06 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 9.54 9.54 9.54 9.54 29.90

Equity Share Capital 9.54 9.54 9.54 9.54 11.44

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 18.46

Reserves 132.66 161.92 200.70 271.59 405.73

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Net worth 142.20 171.46 210.24 281.13 435.63

Secured Loans 229.26 263.67 262.09 162.49 110.64

Unsecured Loans 34.27 39.77 47.24 46.63 56.08

Total Debt 263.53 303.44 309.33 209.12 166.72

Total Liabilities 405.73 474.90 519.57 490.25 602.35

Mar '03 Mar '04 Mar '05 Mar '06 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 328.78 400.91 482.31 506.21 609.58

Less: Accum. Depreciation 104.73 127.21 151.16 192.89 227.47

Net Block 224.05 273.70 331.15 313.32 382.11

Capital Work in Progress 14.19 4.97 10.09 14.32 7.19

Investments 3.35 3.38 3.40 3.43 3.43

Inventories 206.12 260.74 231.51 199.11 235.00

Sundry Debtors 30.08 75.02 53.57 65.15 71.60

Cash and Bank Balance 1.34 1.85 2.53 5.49 11.52

Total Current Assets 237.54 337.61 287.61 269.75 318.12

Loans and Advances 35.30 25.16 30.89 47.74 77.50

Fixed Deposits 0.49 0.48 0.42 10.40 36.98

Total CA, Loans & Advances 273.33 363.25 318.92 327.89 432.60

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 98.70 159.51 134.51 139.60 180.00

Provisions 10.49 10.89 9.50 29.11 43.00

Total CL & Provisions 109.19 170.40 144.01 168.71 223.00

Net Current Assets 164.14 192.85 174.91 159.18 209.60

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 405.73 474.90 519.55 490.25 602.33

Contingent Liabilities 58.25 24.84 21.43 17.58 140.51

Book Value (Rs) 149.06 179.73 220.38 294.69 364.67

INCOME STATEMENT

Yearly Results ------------------- in Rs. Cr. -------------------

Mar '03 Mar '04 Mar '05 Mar '06 Mar '07

Sales Turnover 353.72 469.48 487.32 628.27 792.87

Other