Indian Agro Sector
Essay title: 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 Indias 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
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
29.90
Equity Share Capital
11.44
Share Application Money
Preference Share Capital
18.46
Reserves
132.66
161.92
200.70
271.59
405.73
Revaluation Reserves
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
10.09
14.32
Investments
Inventories
206.12
260.74
231.51
199.11
235.00
Sundry