chapter 1 3 of financial analysis of

8/12/2019 Chapter 1 3 OF FINANCIAL ANALYSIS OF

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A Study of Financial Analysis of Agriculture Produce

Market Committee of Amravati

P. R. Patil college of Engineering & Technology, Amravati Page 1

CHAPTER 1

INTRODUCTION

1.1) INTRODUCTION:Financial analysis (also referred to as financial statement

analysis or accounting analysis or Analysis of finance) refers to an assessment of

the viability, stability and profitability of abusiness,sub-business orproject.

It is performed by professionals who prepare reports using ratios that

make use of information taken fromfinancial statements and other reports. These

reports are usually presented to top management as one of their bases in making

business decisions.

Continue or discontinue its main operation or part of its business; Make or purchase certain materials in the manufacture of its product; Acquire or rent/lease certain machineries and equipment in the production of its

goods;

Issuestocks or negotiate for a bankloan to increase itsworking capital; Make decisions regarding investing or lending capital; Other decisions that allow management to make an informed selection on various

alternatives in the conduct of its business.

Goals of financial analysis:

Financial analysts often assess the following elements of a firm:

1. Profitability - its ability to earn income and sustain growth in both the short- andlong-term. A company's degree of profitability is usually based on the income

statement,which reports on the company's results of operations;
http://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Projecthttp://en.wikipedia.org/wiki/Financial_statementshttp://en.wikipedia.org/wiki/Stockshttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Working_capitalhttp://en.wikipedia.org/wiki/Income_statementhttp://en.wikipedia.org/wiki/Income_statementhttp://en.wikipedia.org/wiki/Income_statementhttp://en.wikipedia.org/wiki/Income_statementhttp://en.wikipedia.org/wiki/Working_capitalhttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Stockshttp://en.wikipedia.org/wiki/Financial_statementshttp://en.wikipedia.org/wiki/Projecthttp://en.wikipedia.org/wiki/Business


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2. Solvency - its ability to pay its obligation to creditors and other third parties in thelong-term;

3. Liquidity - its ability to maintain positivecash flow,while satisfying immediateobligations;

Both 2 and 3 are based on the company's balance sheet, which indicates the

financial condition of a business as of a given point in time.

4. Stability - the firm's ability to remain in business in the long run, without havingto sustain significant losses in the conduct of its business. Assessing a company's

stability requires the use of the income statement and the balance sheet, as well as

other financial and non-financial indicators. Etc.

1.2) OBJECTIVES OF FINANCIAL ANALYSIS:

Financial Statement Analysis is a very important and effective tool to themanagement of an enterprise. The objectives of a Financial Statement Analysis

are as follows:

1. To assess the real meaning and significance of financial data as disclosedin the Financial Statements.

2. To assess the liquidity and short-term solvency position of the enterprise.3. To assess the long-term solvency position of the enterprise.4. To assess the present and future profitability of the enterprise.5. To evaluate the operational efficiency of the enterprise.6. To evaluate the managerial efficiency of the enterprise.7. To assess the growth potentiality of the enterprise.8. To evaluate the different activities of the concern.
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9. To assess the financial stability of the enterprise.1.3) SCOPE OF THE STUDY:

1. To analyze the financial performance of APMC.2. To study the liquidity position, profitability, leverage ratios, and inventory

ratios of the company.

3. To study the performance at particular level. i.e. state level, district level1.4) SIGNIFICANCE OF FINANCIAL ANALYSIS:The financial statement analysis is important for different reasons:

1. Holding Of ShareShareholders are the owners of the company. Time and again, they may

have to take decisions whether they have to continue with the holdings of

the company's share or sell them out. The financial statement analysis is

important as it provides meaningful information to the shareholders in

taking such decisions.

2. Decisions And PlansThe management of the company is responsible for taking decisions and

formulating plans and policies for the future. They, therefore, always need

to evaluate its performance and effectiveness of their action to realise the

company's goal in the past. For that purpose, financial statement analysis

is important to the company's management.

3. Extension Of CreditThe creditors are the providers of loan capital to the company.Therefore

they may have to take decisions as to whether they have to extend their

loans to the company and demand for higher interest rates. The financial


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statement analysis provides important information to them for their

purpose.

4. Investment DecisionThe prospective investors are those who have surplus capital to invest in

some profitable opportunities. Therefore, they often have to decide

whether to invest their capital in the company's share. The financial

statement analysis is important to them because they can obtain useful

information for their investment decision making purpose.

1.5) METHODS OF FINANCIAL ANALYSIS:Financial analysts often comparefinancial ratios (ofsolvency, profitability,

growth, etc.):

Past Performance - Across historical time periods for the same firm (the last 5years for example),

Future Performance - Using historical figures and certain mathematical andstatistical techniques, including present and future values, This extrapolation

method is the main source of errors in financial analysis as past statistics can be

poor predictors of future prospects.

Comparative Performance - Comparison between similar firms.These ratios are calculated by dividing a (group of) account balance(s),

taken from thebalance sheet and / or theincome statement, by another, for

example:

Net income / equity =return on equity (ROE)

Net income / total assets =return on assets (ROA)

Stock price / earnings per share =P/E ratio
http://en.wikipedia.org/wiki/Financial_ratioshttp://en.wikipedia.org/wiki/Solvencyhttp://en.wikipedia.org/wiki/Profit_(accounting)http://en.wikipedia.org/wiki/Balance_sheethttp://en.wikipedia.org/wiki/Income_statementhttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Return_on_equityhttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Return_on_assetshttp://en.wikipedia.org/wiki/P/E_ratiohttp://en.wikipedia.org/wiki/P/E_ratiohttp://en.wikipedia.org/wiki/Return_on_assetshttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Return_on_equityhttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Income_statementhttp://en.wikipedia.org/wiki/Balance_sheethttp://en.wikipedia.org/wiki/Profit_(accounting)http://en.wikipedia.org/wiki/Solvencyhttp://en.wikipedia.org/wiki/Financial_ratios


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Comparing financial ratios is merely one way of conducting financial

analysis.Financial ratios face several theoretical challenges:

They say little about the firm's prospects in an absolute sense. Their insights aboutrelative performance require a reference point from other time periods or similar

firms.

One ratio holds little meaning. As indicators, ratios can be logically interpreted inat least two ways. One can partially overcome this problem by combining several

related ratios to paint a more comprehensive picture of the firm's performance.

Seasonal factors may prevent year-end values from being representative. A ratio'svalues may be distorted as account balances change from the beginning to the endof an accounting period. Use average values for such accounts whenever possible.

Financial ratios are no more objective than the accounting methods employed.Changes in accounting policies or choices can yield drastically different ratio

values.

(Fundamental analysis). Financial analysts can also use percentage analysis whichinvolves reducing a series of figures as a percentage of some base amounts. For

example, a group of items can be expressed as a percentage of net income. When

proportionate changes in the same figure over a given time period expressed as a

percentage is known as horizontal analysis. Vertical or common-size analysis

reduces all items on a statement to a common size as a percentage of some base

value which assists in comparability with other companies of different sizes. As a

result, all Income Statement items are divided by Sales, and all Balance Sheet

items are divided by Total Assets.

Another method is comparative analysis. This provides a better way to determinetrends. Comparative analysis presents the same information for two or more time

periods and is presented side-by-side to allow for easy analysis.
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1.6) ADVANTAGES & DISADVANTAGES OF FINANCIALANALYSIS:

Financial statements are financial data documents a company publishes on anannual, biannual, quarterly or monthly basis. These documents include the

companys net worth based on assets and liabilities, as well as the companys

expenses, earnings and operational budget. Financial planners and accountants

may use financial statements to make decisions regarding future planning,

expansions and product launches, but there are disadvantages to using this

method.

Market Patterns

One disadvantage of using financial statements for decision making is that

the data and figures are based on the market at that given time. Depending on the

market, it may change quickly, so executives should not assume that the numbers

from a previous financial statement will remain the same or increase. Just because

a company has sold 5 million copies of a product during one year does not

guarantee it will sell the same amount or more. It may sell much less if a

competitor releases a similar product.

Sales Pattern

Financial statements reveal how much a company earns per year in sales.

The sales may fluctuate, but financial planners should be able to identify a pattern

over years of sales figures. For example, the company may have a pattern of

increased sales when a new product is released. The sales may drop after a year or

so of being on the market. This is beneficial, as it shows potential and sales

patterns so executives know to expect a drop in sales.

At-One-Time vs. Continuous Analysis

Another disadvantage is that a single financial statement only shows how

a company is doing at one single time. The financial statement does not show

whether the company is doing better or worse than the year before, for example. If


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executives decide to use financial statements for making decisions about the

future, they should use several financial statements from previous months and

years to ensure they get an overall picture of how much the company is doing.

The financial statement becomes a continuous analysis, which is more useful than

using a single statement.

Budget Outline

Another advantage of using financial statements for future planning and

decision making is that they show the companys budgets. The budgets reveal

how much wiggle room the company has to spend on launching products,

developing marketing campaigns or expanding the current office size. Knowing

how much money is available for planning and decision making ensures that the

company does not spend more than expected.


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CHAPTER NO. 2

ORGANIAZATION PROFILE

2.1) INTRODUCTION:

The Maharashtra State Agricultural Marketing Board (MSAMB), Pune

was established on 23rd, March 1984, under section 39A of Maharashtra

Agricultural Produce Marketing (Development & Regulation) Act, 1963.

MSAMB has done pioneering work in the field of Agricultural Marketing in the

State and achieved success in various areas. MSAMB is having an important role

in developing and coordinating agricultural marketing system in the State of

Maharashtra.

Objectives of MSAMB

As per the provision of Maharashtra Agricultural Produce Marketing

(Development & Regulation) Act, 1963 section 39(J), the Board shall perform the

following functions and shall have power to do such things as may be necessary

or expedient for carrying out these functions.

To co-ordinate the functioning of the Market Committees includingprogrammes undertaken by such Market Committees for the development

of markets and market areas.


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To undertake State level planning of the development of the agricultureproduce markets.

To maintain and administer the Agricultural Marketing DevelopmentFund.

To give advise to Market Committees in general or any Market Committeein particular with a view to ensuring improvement in the functioning

thereof.

To supervise and guide the Market Committees in the preparation of plansand estimates of construction programme undertaken by them.

To make necessary arrangements for propaganda and publicity on mattersrelating to marketing of agricultural produce.

To grant subventions or loans to Market Committees for the purposes ofthis Act on such terms and conditions as it may determine.

To arrange or organise seminars, workshops, exhibitions on subjectrelating to agricultural marketing & giving training to members and

employees of marketing committee.

To do such other things as may be of general interest relating to marketingof agricultural produce.

To carry out any other function specifically entrusted to it by this Act. To carry out such other functions of like nature as may be entrusted to it

by the State Government.

Board of Directors

MSAMB is committed towards smooth and orderly development of

agricultural marketing in the State. The Board of Directors take all policy

decisions in respect of this sphere of activity and such other important issues. The

Board of Directors of the Maharashtra State Agricultural Marketing Board

consists of the following members:


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1 Hon. Minister for Marketing Ex-Officio Chairman

2 Hon. Minister of State for Marketing Ex-Officio Vice-Chairman

3 Commissioner for Co-operation &

Registrar of Co-operative Societies

Ex-Officio Member

4 Commissioner of Agriculture Ex-Officio Member

5 Chairman, Maharashtra State

Market Committee's Co-operative

Fedration, Pune

Ex-Officio Member

6 Agricultural Marketing Advisor to

Govt. of India or his representative

Ex-Officio Member

7 Representative of National Bank of

Agriculture and Rural Development

(NABARD) to be nominated by the

State Government.

Ex-Officio Member

8 Members not exceeding six, to be

nominated by the State Government

from amongst theChairmanof the

Market Committees, one each from the

six Revenue Divisions.

Member

9 Director of Marketing, Maharashtra

State, Pune

Ex-Officio Managing Director &

Member Secretary


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Organization

Amravati Division

Amravati District Mr. V.J. Rane Mob-9422560817

Tel. 0721-2572178

[email protected]

Akola & Washim

District

Mr. M.S. Gawale A.P.M.C., Akola

Mob. 9405973734

Tel. 0724-2433478

Fax. 0724-2433478

[email protected] District Mr.S. P. Bajare A.P.M.C., Buldhana

Mob. 9049996126

Tel. 07262-242033

Fax. 07262-243822


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[email protected]

Yeotmal District Mr. M.D.

Gambhirrao

A.P.M.C., Yeotmal

Mob. 9822207706

Tel. 07232-244916

Fax. 07232-242378

[email protected]

2.2) ABOUT APMC:

The Maharashtra State Agricultural Marketing Board (MSAMB), Pune

was established on 23rd, March 1984, under section 39A of Maharashtra

Agricultural Produce Marketing (Development & Regulation) Act, 1963.

MSAMB has done pioneering work in the field of Agricultural Marketing in the

State and achieved success in various areas. MSAMB is having an important role

in developing and coordinating agricultural marketing system in the State of

Maharashtra.

Budget

As per provision of section 38 of the Maharashtra Agricultural Produce

Marketing (Regulation) Act 1963, and the Maharashtra Agriculture Produce

Marketing (Development & Regulation) rule 1967-rule 112 (1) every Market

Committee shall submit their budget to the Marketing Board for sanction before

31st January of every year. The State Marketing Board after due scrutiny,

sanctions the budget with or without modifications within one month from the

date of receipt thereof. It includes the original budget, supplementary and

reappropriation budget.

The budget is prepared in the prescribed format developed by the State

Marketing Board. The budget includes all the items of revenue and expenditure

(including administrative expenditure, and development items).


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The Marketing Board has delegated powers to its following officers to

sanction the budget.

Sr.No. Total Budgetary Amount Sanctioning Authority

1 Up to Rs. 50.00 Lac Dy. General Manager

2 Above Rs.50.00 Lac to Rs.100 Lac General Manager

3 Above Rs.100.00 Lac to Rs. 500.00

Lac

Managing Director

4 Above Rs. 500 Lac Board of Directors

Loan

As a supplement to the finance of APMC, the Maharashtra State

Agricultural Marketing Board gives some amount as loan to enable APMCs to

undertake developmental programmes. However, MSAMB insists on availing

loans from Banks by the APMCs for their development programmes. The

development works include land, drinking water facility, compound wall, gate,

internal roads, electrification, auction halls and platform, godowns, computers,

weigh bridges, farmers hostel, hamal bhavan, trader's and commission agent's

shops, etc. The loans are sanctioned as per the norms prescribed by MSAMB.

APMCs submit the loan applications with details, which are being

processed at the head office. As per the rules of the Marketing Board, the rate of

interest for development works except construction of shopping complex, are as

follows:

Sr.

No.

Class of APMC Rate of Interest

1 All APMC- Shetkari Bazar 5%

2 All APMC- Agri Pledge Loan Scheme 6%

3 Term Loan- Konkan & Tribal Area 6%


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4 All APMC- Land purchase, drinking water

facility, auction platform, compound, weigh

bridge, grading equipment, sanitary, road,

electrification, work under TMC & other work.

8%

5 Shopping Complex (APMCs of all category) 10%

The APMC has to submit a loan proposal along with the following documents.

Loan application in the prescribed form. (Hyperlink) Loan repayment agreement.

Loan hypothecation agreement & APMC Director Bodys IndemnityBond.

Sanction from competent authority for building plan & layout. Approval under section 12(1).The necessary formats for this purpose can be downloaded from the download

option.

The repayment period of loan provided for the following development worksis as follows.

Sr.No. Development Work Repayment

Period

1 Purchase of Land, Drinking water system,

Auction halls, Compound, Sanitary, Computers

and Weigh bridges, Roads, Shetkari niwas,

Electrification, & other facilities

10 Years

2 Traders Shops 5 Years

3 Commercial Complex 1 Year


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During last 25 years (i.e. from 1985 to March 2012), the Marketing Board

has disbursed an loan amount of Rs 164.48 Crore to 236 APMCs in the State, out

of which, the outstanding amount as on 31st March 2012, is Rs. 69.02 Crore.

Contribution

As per provision of section 37 (2) of the Act, every market committee has

topay an annual contribution to the Marketing Board, on the basis of their income.

The Govt. of Maharashtra vide notification no. APM\1085\6568\621\11-c Dated -

04/04/1988 has specified the following rates of contribution.

Sr.No. Annual Income of

APMC

Rate of Contribution

1 Below Rs.1.75 lac 1 %

2 Above Rs.1.75 - 3.00

lac

2 %

3 Above Rs.3.00 - 10.00

lac

3 %

4 Above Rs.10.00 lac 5 %

As per the provision of section 37(2) of the Act, every APMC shall, out of

market fund, pay within two months, from the date of expiry of previous year, to

the Marketing Board the annual contribution as fixed by the Govt. as per the

above notification.

During 2011-12 as per income out of 300 APMCs, contribution of 291

APMCs) was fixed to Rs.26.46 crores.


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2.3) PROJECTS:

THE NEED:

Maharashtra is a key agricultural State accounting for 6-7% of all

agricultural production in the country today. The State leads in the production of a

number of crops including several fruits, vegetables, sugar, cotton, pulses etc.

Agriculture is a major source of income for rural masses constituting 60-70% of

the State's population. It is a major contributor to State's economy at around 25 %

of the GDP. State's farmers have been quite successful and they have been

consistently producing large quantities of marketable surplus. So far agriculture

has been an economically viable activity in the State. However, in recent days

there has been a disturbing trend with stagnation in prices for farm produce, high

levels of post harvest losses and decreasing farm incomes. Under these

circumstances the farmers of Maharashtra, like in rest of the country have very

few options but to improve their post harvest management practices so that the

present high levels of post harvest losses at 25-30% could be brought down to a

reasonable level of 5% or so. And secondly they have to add value through

processing to their farm produce for better remunerative prices. These steps can

lead to better returns with increased market demand for agricultural produce and

better chances of marketing.

THE CONCEPT:

The State Government has identified post harvest management, food and

agro processing, agribusiness and agriculture marketing as thrust areas in the

coming years. This along with an excellent response received for the consultancy

services offered by the Marketing Board in the past for APMCs and the

Cooperative Societies in the State, the need for enlarging the scope and range of

services was considered by the Managing Director. This led to the formation of a

full fledged consultancy services.The Chairman of the Board of Directors of the

Maharashtra State Agricultural Marketing Board (MSAMB), the Hon'ble Minister


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for Marketing, Government of Maharashtra, on 20th June 2003, announced that a

"Project Consultancy Division" would be set up to meet the inherent demand for

consultancy services in the fast growing areas of agro processing, food processing

and post harvest management in the State. He suggested that the MSAMB which

has proven experience in project consultancy work through their project

department take up the lead and set up a Project Consultancy Division.

VISION:

The Consultancy Division has a vision to make all out efforts to

conceptualize, plan and implement agribusiness projects and contribute towards

the development of the rural economy.

OBJECTIVES:

One of the key objectives of the MSAMB is to facilitate more efficient marketing

of agricultural produce, develop agro-processing, post harvest management

practices so that farmers can expect better remuneration for their farm produce.

Presently the quality of consultancy services available to farmers and cooperatives

in the State are not up to the mark. Besides, the consultancy fees charged are quite

high at 6 to 8 %. Keeping this in mind the Consultancy Division would specialise

in areas of post harvest management, agro processing and related agriculture

activities including production and marketing of organic produce, animal

husbandry, poultry and fisheries as per demand. The consultancy services will

cover the works of preparation of project plan, evaluation of projects, continues

technical guidance till completion of the project, financial planning, training of

employees etc. Primary focus will be on providing technical guidance in the

following types of services:

1. Project Identification

2. Concept Development


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3. Project pre feasibility study

4. Detailed Project Report (DPR) preparation

5. Technology sourcing

6. Sourcing appropriate plant and machinery

7. Technical consultancy and guidance

8. Project planning

9. Production planning

10. Market planning

11. Marketing support

12. Domestic marketing

13. Export marketing

14. Project Monitoring

15. Project implementation supervision

16. Financial plan

17. Sourcing of funds

18. Financial proposal

19. Financial Analysis

20. Cash flow statement

21. Commissioning support

22. Operational planning

BENEFICIERY:

The services would be offered at a concessional /reasonable fee. The

services of Consultancy Division will be available to any entrepreneur including

farmers co-operatives, the APMCs, and individuals including a number of private

entrepreneurs who have come forward to set up a variety of post harvest

management and agro processing facilities in the State. The consultancy help

would be provided to any of them who would approach the Marketing Board.


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No Description Revised Consultancy Fees

1. Project cost upto Rs.5 Crores - Upto 2 Crores - 0.4 % + S.T.

- Rs.2 Crores to 5 Crores Rs.1.00

Lac + S.T.(Service Tax)

2. Project cost Rs.5 Crores - 10

Crores

-Rs.1.5 Lac + S.T.

3. Project cost more than 10

Crores

- Rs.10 Cr. -15 Crores Rs.2.00 Lac +

S.T.

-Rs.15 Cr. -25 Crores Rs.2.50 Lac +

S.T.

- More than 25 Crores Rs.3.00 Lac

+ S.T.

4. To prepare the DPR under

VISHEH GHATAK YOJANA

Schedule caste and schedule tribes

societies - Concession in above fees

upto 50% + S.T. w.r.t. above

PERSONNEL:

The Consultancy Division has a number of experts in the field of

Agriculture and Agro business and other related fields. Additional and specialised

expertise as required is out-sourced from the market on a project to project basis.

Besides additional expert services of Mr Milind Akare, General Manager cum

Managing Director, Shri.R. S. Shingte, Nodal Officer, MACP, Shri Prakash

Asthekar, Dy General Manager, MSAMB, expert in Agriculture and

Cooperatives, Principal, Horticulture Training Center of NIPHT is available as

required.

KEY PROJECTS EXECUTED BY THE PROJECT DIVISION:

1. Conceptualization, Planning, and implementation of Basic Infrastructure

Facilities such as


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Overall plan and layout of market yards (APMCs) Design and implementation of buildings, roads, wholesale and retail

shops, Auction Hall, farmers rest house, utilities like Drinking Water,

Electricity etc.

2. Specialized infrastructure facilities like setting up of Grain cleaning and

sorting facility

Commercial multi commodity multi chamber Cold Storages Pre-Cooling cum Cold Storages, Onion Storage facility Model Export center. Ripening Chambers Pack House Shetkari Bazaar.

3. Computerization help:

Computerization of APMC accounts

Computerized market information system.

4. State level Planning:

Blue print for the State for the overall development of APMCs. Conceptualization and detailed plan of an Integrated State level Marketing

Infrastructure

Development plan for Horticulture produce. Conceptualization of State level plans for development of marketing and

agribusiness.

Preparation of concept paper and study papers for the State Governmentfrom time to time.


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5. Financial Assistance Proposals:

Detailed Project Reports for financial assistance for submission to Government of

India, State agencies, World Bank for projects by the Marketing Board.

Status :

The consultancy division is having 5 active projects on hand valued at an

estimated Rs.25000 lakhs. In these mainly projects of establishing Cold chain in

the State under RKVY, Rice Mills, Dal Mill, Flour Mills, Fruits & Vegetable

processing, Oil Extraction, Cold Storage projects of Co-operative Societies, chilli

park and APMCs are included .Project Consultancy Division appraises project

reports of the co-operative societies received from the Directorate of Marketing.

About 150 appraisal reports of various co-operative societies have been

submitted to the Director of Marketing.


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CHAPTER NO 3

RESEARCH METHODOLOGY

3.1) INTRODUCTION:-. Research Methodology is process of systematic gathering, recording

and analyzing of data collected by various techniques to access the respond and

accordingly prepare a report based on impact of promotional activity. It is careful

investigation or inquiry especially through search of knowledge through objective

and systematic method of finding solution of a problem. Thus in short the term

research refers to formulating a hypothesis.

The present study is based on secondary data for the facts and figures

and primary data as personal interview and questionnaire. The information is

taken from the News paper, books and magazines.

Research problem is one which require a researcher to find out the best

solution for the best solution for the given problem that is to find out by which

course of action the objective can be attained optimally in context of given

environment.

3.2) PROBLEM DEFINATION:

In todays inflationary economy everybody wants to make investment. But

at the same time it is very crucial decision for a common man. Everyone generally

go for investment by analyzing historical data i.e. on the basis of technical and

financial analysis but there are a very few investors who consider other factors

which affect the market and ultimately could affect their investment Decision.

Taking in mind that, what are those other factors which could affect the

investment decision and to what to extent it can affect the overall market scenario,

researcher going for this research.

The study is entitled to A study of financial analysis of Agriculture

produce Market Committee of Amravati


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3.3) OBJECTIVE OF STUDY:-

1.

To analyze the financial performance of APMC.

2. To study the liquidity position, profitability, leverage ratios, and inventoryratios of the company.

3. To study the performance at particular level. i.e. state level, district level

3.4) RESEARCH DESIGN:-The research design will be Descriptive research design it is the plan

structure and strategy of investigation conceived so as to obtained answer to

research question and research design is the specification of method and

procedure for acquiring the information needed.

Data means information required in the research. There are two types

of data sources, which have been helpful to carry out the research these are as

follows:

a)Primary dataPrimary data are those, which are collected a fresh and for the first time.

Primary data was collected through questionnaires & Interview schedule.

b)Secondary dataSecondary data are those, which have already been collected by publication

of Governments, Periodicals of organization, newspaper, books, & internet etc.


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P R Patil college of Engineering & Technology Amravati Page 24

3.6 LIMITATIONS:-

1. Study is restricted to Agricultural produce market committee only.2. Research is restricted to financial ratios only.3. The study limited to Amravati city only.4. Data period-2012-13.

chapter 1 3 of financial analysis of

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