Project Report(Financial Training)

Undergone at

Agriculture Produce Market Committee

Prepared and Presented By.

Pansuriya Nitin C.(Third Year B.B.A)

Specialized in: -Financial Management

Roll No.: - 06

Exam Seat No.: -

Academic Year: 2006-07

1

K.K.Parekh Commerce & B.B.A CollegeAmreli

Preface The B.B.A course is becoming popular recently, as the student have realized that they have very good chances to progress in business world, if they have a basic degree in Business Management, a subject which has changed the life style of human beings all over the world, India being no exception to it.

Now days the people have change a traditional way to earn money and in human life money is a main thing. More and more business will start and to run business smoothly the money is important things or the key factors.

I am the student of T.Y.B.B.A in K.K.Parekh Commerce College Amreli. In my last year the university give us opportunity to choose one subject for specialization so that the student can develop and improve the qualities and knowledge in real direction and become specialist in particular subject which is the student elect. That’s why I

2

have selected my special subject as Financial Management.

Acknowledgement

Any accomplishment requires the efforts of many people and this work is not different. I thank our Professors and especially our Principal whose patience and support was instrumental in accomplishing this task. I am very much glad to present this Report before you and to get the opportunity of taking training in APMC. Where I found co-operation from all the staff. In this training period I could realize the business world and its money transaction. I also learn that how he procure and utilized the finance so my heart is thanks all of the staff. First of all I heartily thankful to Secretary to Mr. Y.G.Patel and also Assistant Secretary Mr. S.V.Rajpara who gives us Permission and giving us vital information about the organization and its financial Procedure. I express to gratitude to Prof. P.K.Trivedi for giving a guideline relating to prepare this Report and also thank our Principal Dr. H.M.Shah and B.B.A in charge Mr. M.M.Patel. Unfortunately, sources were not always noted or available; hence, it becomes impractical to provide in accurate acknowledgment. Regardless of the source, I wish to express my

3

gratitude to those who may have contributed to this work, even though anonymously.

Yours Faithfully,

Date: - (Pansuriya Nitin C.)

Declaration

My Self Pansuriya Nitin C. a student of Third Year B.B.A. My roll No. is 06. Here by declare that this Financial Report is my own work, I had taken the 10 th day training in APMC (The Agricultural Produce Market Committee). This work has been carried out under guidance of the Assistant Secretary and also B.B.A in charge Prof. Mr. M.M. Patel.

PLACE: - Amreli

DATE: -

SIGNATURE

4

(Pansuriya Nitin C.)

K.K. PAREKH COMMERECE COLLEGEAMRELI

CERTIFICATE

Date: - / /

DEPARTMENT OFB.B.A

This is certifying that Mr. PANSURIYA

NITIN C. is a student of third year B.B.A

has carried out the training work as per

the syllabus of Saurashtra University,

Rajkot. He has prepared the FINANCIAL

REPORT on APMC Amreli under our super 5

vision and his own contribution for

making this report during the acedemic

year 2006-2007 is appreciated.

B.B.A. in charge Principal

(M.M.Patel) (Dr.H.M.Shah)

Index

Sr.No. Particulars Page no.

1. Introduction 07

2. History & Development of APMC

14

3. Awards & Achievements

17

4. General Information

19

6

5. Financial Details

23

6. P & L a/c and B/S of APMC 25

7. Financial Analysis 28

8. Growth in Financial Position 34

9. Conclusion 36

10. Bibliography 38

Introduction

OF

“APMC”

(THE AGRICULTURAL PRODUCE MARKET COMMITTEE)

7

CHAPTER CONTENTS: -

1.1 What is Agriculture Market?……….

1.2 Help to Framer ………….

1.3 Information about APMC. …….

1.1 What is Agriculture Market?

India is the Agricultural country and 65 % to 70 % people are related with agriculture. They are totally depending upon monsoon. They also believe in luck. In the past when money is not available means Barter systems the farmers used exchange their goods with others and take that goods which he required. So there is no need to agricultural market.

But at now the money is a main thing and satisfy the human wants through money. So farmer needs the market when he sold his product to customer with protection.

8

Agricultural Marketing is an area for the "second generation" of green revolution problems. Indian Marketing is undergoing a significant metamorphosis because of economic liberalization and globalization. Infrastructure development is the critical factor for determining the success of market-oriented strategy and macro-economic policies in developing countries.

Both national and global players are trying to capture the urban markets of India, which has already reached a saturation level, and it is extremely difficult to tap the urban markets with high profit margin. In export market, a firm has to face challenges from Multi-National Corporate (MNCs), other foreign companies and domestic firms of the concerned export markets. While urban market or export market is difficult to plough, rural market is relatively easy and feasible to cultivate, in India.1.2 Help to Farmers……

The agricultural market is very much helpful to the farmer and the customers or whole seller merchant because all types of goods are available on one place. The main benefit is given below: -

This market protect to farmers against the misleading or

unfair trade practice.

Government decides the price of different agricultural product

so that at all level price is same.

9

Farmers are enjoying the benefit to sell his product to

merchant or not at decided price.

Due to this market all types of wages or expenses related with

to sell its product is on merchant not on farmer.

The customer or merchant gets benefit to purchase the

product at one place and government price.

They buy the agricultural product to desire quantity and

desire quality.

1.3 Information about APMC...

(1) Notification of market act: - No.PMA-8252: - where as by government notification, development department, no. PMA 8251 dated 15th-January-1951 issued under the provision of section 3 of the Bombay Agricultural Produce Market act, 1939 (Bom.XXII of 1939) of the government of Bombay was pleased to declare its intention of regulating the purchase and sale of Groundnut (shelled and unshelled), Sesamum, Udid, Mug, Gram, Gur and chilies (dry) in the area of the Amreli Taluka of Amreli District (herein after referred to as the ‘said area’)

10

Now therefore in exercise of the powers conferred by sub-section (1) of section 4 of the said act, the government of Bombay is please to declare that with effect from 15 th-January-1953 the said area shall be the market area for the purposes of the said Act, in respect of Groundnut (shelled and unshelled), Sesamum, Udid, Mug, Gram, Gur and chilies (dry).

(2) Main Market: - The main market ground situated near Jubilee – Amreli and its land approximately 12 Acers and all facility is cover in it.

(3) The Market: - The following village that lists given below which around the 5 miles areas of Amreli town are not sell his agricultural product with out main market yard. Any of the merchants does not buy the control product in this village. It is crime if he buys.(4) The villages of main market yard: - The following villages are covered in 5 miles area of Amreli.(1) Amreli (2) Lalavader (3) Eshavariya (4) Chakkargadh (5) Keria Nagas (6) Nana Machiyala (7) Mota Machiyala (8) Bakshipur (9) Snagaderi (10) Varudi (11) Nana Akadiya (12) Mangvapal (13) Nana Bhandariya (14) Fatepur (15) Giriya (16) Champathal (17) Vithhalpur (18) Gavadka (19) Nava Kijadiya (20) Venivader

(5) Controlled Agricultural Products: -

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The following are the controlled products and it control by APMC.

(A) Food Grains Sections: - (1) Groundnut (shelled and unshelled) (2) Sesamum(3) Udid (4) Mug (5) Gram (6) Gur (7) chilies (dry) (8) White and Red Wheat (9) Bajra (10) Jowar (11) Pigeon Peas (Tur) (12) Choli (13) Val (14) Maize (15) Kamod (16) Rise (17) Aranda (18) Gol (19) Rayado – Rai (20) Esabgul (21) Dhana (22) Jiru (23) Methi (24) Ajama (25) rajaka seeds (26) Kang (27) Rajgaro (28) Cotton.

(B) Vegetable Section: - (1) Potato (2) Brinjal (3) Cauliflower (4) Cabbage (5) Sweet Potato (6) Tomato (7) Elephant foot (8) Onion (Green and Dry ) (9) Carrot (10) Bitter Gourd (11) Gourd (12) Galaka (13) Raddish (14) Kakadi (15) Guwar (16) Valola (17) Chola Shing (18) Vatana (19) Turiya (20) Shakkarteti (21) Chana lila (22) Lady’s Finger (23) Sugar Can

(C) Fruits Section: -(1) Mango (2) Banana (3) Guava (4) Papaya (5) Sweet lime (6) Orange (7) Lemon (8) Pomegranate (9) Grape (10) Chibhada (11) Chickoo (12) Watermelon (13) Bor

(D) Spices Section: -(1) Turmeric (2) Ginger (3) Green Garlic (4) Coriander (5) Coriander Leaves (6) Green Chilies (7) Aniseed (8) Fenugreek leaves (9) Tandulja (10) Mint (11) Mogri.

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(E) Animals Section: -(1) Cow (2) Buffalo (3) Bullock (4) Goat (5) Sheep

(6) News of Market yard: - All the control agricultural products which come for sales in market yard its total incomes and its per 20 kg price is regularly sent to newspaper for print and for the farmers daily price of the products is write on notice board. The market yard committee has facilities by E-mail and fax. In advance the daily price of product is also popular in E-TV channel on Annadata programs and also in www.agmarknet.in website by N.I.C

(7) Creation of market yard committee: -The general market yard

committee’s election was settled in October-2004 and the elected committee starts his work in December-2004.

(8) Market yard land: - The main market yard ground is approximately 12 acres and 38 Guthha and continues working for get land to create new latest yard in near future.

(9) Training for Employee: - All employees trained in Shri. Udaybhansihaji Training Center-Gandhinager. When the Gujarat

13

State Agriculture Market Board-Gandhinager start the training classes all employees are go there.

(10) Complain: - There is no single complain during the whole years. If any dispute accrued it settled by the chairman.

History & Development

OF

14

“APMC”

(THE AGRICULTURAL PRODUCE MARKET COMMITTEE)

CHAPTER CONTENTS: -

1.1 History of APMC

1.2 Development of APMC…..

1.1 History of APMC… There is running 101 year of co-

operative activities in all over India. The main aim of co-operative committee is to help the members or people and doing the social activities. In past, when the APMC was not created, there were several difficulties of farmers to sell his agricultural products, because of the lack of the market for selling the agricultural products. If the farmers sell his product without the market they face many problem related with transport, protection of product etc or raise the many complain related with merchant.

15

To solve this problem, some people were gathered and decided to create the committee for relating to farmers, merchant and other people. Then finally established the APMC in 1953 with Rs. 6267.74 income and Rs. 1345.06 permanent fund. The first chairperson of the committee was Shri. Dr. Hariprasad V. Bhatt. To start this committee with aim to solve the farmers complains against the merchant and to give the proper price of the farmer’s products. Now this committee completed 54 years and come in 55 years and his development is very good during the 54 years. This is the appreciated aspect of this committee.

Years Savings Permanent fund1952-53 1345.06 1342.061962-63 17962.16 88484.011982-83 170815.63 798391.991992-93 2116090.04 6133459.092005-06 1384046.37 15289458.83

1.2 Developments: - The APMC created in 1952 the growth of this committee is very slow comparing to others committee. But in last 16 months the young chairperson Mr. P.P.Sojitra develops the APMC, which had not done in last 54 years. The development is as under.1. The APMC arrange the shades to protect the farmer’s

products.

2. The R.C.C. road arrange in all market ground.16

3. The shops and godown arrangement for merchant.

4. The dining hall and canteen facility is also providing.

5. In farmer rest house it is providing facility like hotel in

nominal charge.

6. The ambulance service is starting with nominal charge Rs.

3-/ per km for farmers, merchants and whole district by APMC.

7. The farmer Information center is also start for giving the

different information to farmers relating to farming.

8. The cotton laboratory is arranged to know the cotton

quality for merchants and farmers.

9. First time in Gujarat, “Dr. Jivarajbhai Mehta Awards”

scheme is starting for developing farmers by Amreli market

yard.

Awards & Achievements

OF

17

“APMC”

(THE AGRICULTURAL PRODUCE MARKET COMMITTEE)

CHAPTER CONTENTS: -

1.1 Awards & Achievements…

1.1 Awards & Achievement: -

The words awards and achievements are the same meaning but it quit different. Awards means medal or shield for some achievement. So it’s combined words.

The APMC is not a trading firm or company but a committee for farmers. It protects the farmer and give him the sufficient price of its products it is the biggest achievement.

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Now a day the quality is the important things and in every field it is very important for firm or company or committee.

The committee gets ISO 9001-2000 certificate from ICS (International Certification Services (Asia) Pvt. Ltd.) for complying with the requirements of the following international standard and this committee is the first in India to get this certificate.

Scope: Provides service and liaison to farmers, Commission agent and businessman for agriculture, produced crops sale and purchase as per market value.

General Information

19

OF

“APMC”

(THE AGRICULTURAL PRODUCE MARKET COMMITTEE)

CHAPTER CONTENTS: -

1.1 About APMC…

1.2 Boards of Directors…

1.3 Organization Structure…

1.1 About APMC: -

Name: - The Agricultural Produce Market Committee

Address: - Near Jubilee, Market Yard Road, Amreli 365601

20

Phone: - (02792) 222122 / 223941 / 223213

Website: - www. Agmarknet.co.in

Founded year: - 1952

Directors: - Shri. P.P.Sojitra (Chairman) Shri. Bhupatbhai K. Metaliya (Vice-Chairman) Shri. Y.G.Patel (Secretary) Shri. S.V.Rajpara (Assistant-Secretary)

Bankers: - A.J.M.S Bank A.N.S Bank

1.2 Boards OF Directors: -

Chairman: - Shri. P.P.Sojitra

Vice Chairman: - Shri. Bhupatbhai K. Metaliya

Secretary: - Shri. Y.G.Patel

Assistant Secretary: - Shri. S.V.Rajpara

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ChairmanChairman

Vice ChairmanVice Chairman

SecretarySecretary

Vice-SecretaryVice-Secretary

Boards Of DirectorsBoards Of Directors

Clerical Staff Clerical Staff

Member: - Shri. Dalsukhbhai K.Dudhat

,, Shri. Ashvinbhai N. Savaliya

,, Shri. Dhirubhai V. Vora

,, Shri. Kantibhai K. Ghadiya

,, Shri. Chaturbhai K. Khunt

,, Shri. Shanbhubhai M. Desai

,, Shri. Jayantibhai R. Chakrani

,, Shri. Mohanbhai K. Nakrani

,, Shri. Harshadbhai M. Satani

,, Shri. Kalubhai V. Raiyani

,, Shri. Babubhai B. Polara

,, Shri. Manjibhai R. Dhanani

,, Shri. D.B.Patel

,, Shri. T.C. Jakasaniya

,, Shri. Jayantibhai Kikani

1.3 organization Structure: -

22

23

Financial Detail

OF

“APMC”

(THE AGRICULTURAL PRODUCE MARKET COMMITTEE)

CHAPTER CONTENTS: -

1.1 Financial Detail …

1.1 Financial Detail: - The performance of every financial institution can be measured on the basis of performance achieved by firm during last year.

Share Capital: - 24

This is the committee and the profit is not a main motto and it is co-operative society. The shares are not issued. The committee provides market for farmers and merchant and takes the charges. So share capital is not part of its finance procurement.

Reserve Fund and others Fund: -

At the end of the last year the APMC had total fund of Rs. 1,38,85,662 billion and during the year it was increase in fund Rs. 14,03,796 million and balance Rs. 1,52,89,458 billion at the end of the current year. Soundness of the APMC can be predict on the basis of own fund of the committee.

Deposit: -

Deposit is main sources of income of committee. Deposit. On which committee can interest from investing deposit in different sources. Last year the deposit was Rs. 1,62,37,375 billion while on 31-3-2006 the total deposit Rs. 1,90,05,415 billion.

25

P & L a\c and B\S

OF

“APMC”

(THE AGRICULTURAL PRODUCE MARKET COMMITTEE)

CHAPTER CONTENTS: -

1.1 Profit & Loss a\c …

1.2 Balance Sheet…

1.1 Profit and Loss a\c: -

Income & Expenditure account for the year-end 31-03-06

Expenditure Rs. Income Rs.26

As per Schedule “A”(A) Staff Salary(B) Administration Exp.(C) Maintenance & Repairing Exp.

To. DepreciationTo. Insurance Exp.To. Staff P.F. Contribution Exp.To. Staff Gratuity contribution To. State farm market contri.To. Snehmilan Exp. To. Plant estimates exp.To. Plantation Exp.To. Khedut Shibir exp.To. Wel-come exp.To Cultural help exp.To. Krushi-mahotsav 2005To. Merchant meeting exp.To. Cement benches buy To. Cow-service exp.To. APMC municipality combined road constriction

To. Excess of income over expenditure carried forward to B/S

45257802053363

666707

338488119230

8121472731475277957233

203246910

386773990

4500056981

11645055004015092

900000

1384046

By. General subscription income (05-06)By. Vegetable subscription income (05-06)By. Market fees income (Yard)By. Vegetable incomeBy. Market fees (Village)By. Market fees (Fruit)By. Krushi-mahotsav 05 incomeBy. Vehicle entry feesBy. Weight bridgeBy. Shop godown transfer feesBy. Interest income

As per schedule “B”By. Rent incomeBy. License feesBy. Other income

44560

168758104380524477

238622836871

100000303369183850110004

1040867

72296261435

1945366

Total 15519809

Total 15519809

1.2 Balance Sheet: -

Balance Sheet for the year-end 31-03-06

27

Liabilities Rs. Assets Rs.

PERMANENT FUND

Opening balance 13905412Add: During year 1384046

T M C grantDepreciation fundStaff gratuity fundStaff provident fund

SECURED LOAN

CURRENT LIABILITIES

As per schedule “D”

(A) Sundry creditors(B) Deposit(C) Provision

15289458

90000002070056623206565152466

918019005415

120732

FIXED ASSETS

As per schedule “E”

INVESTMENT

Land development shareA.N.S.Bank share

CURRENT ASSETS

As per schedule “F”

(A) Inventories Printing book stock Dad stock(B) Loan, advance & deposit(C) Sundry debtors(D) Cash & bank balance

59143636

101000

7565761259

11702517382251216148

Total 71662474

Total 71662474

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Financial Analysis

OF

“APMC”

(THE AGRICULTURAL PRODUCE MARKET COMMITTEE)

CHAPTER CONTENTS: -

1.1 Liquidity Ratio…

1.2 Leverage Ratio…

1.3 Profitability Ratio…

1.4 Committee Performance…

1.1 Liquidity Ratio: - Liquidity ratios measure the ability of the firm to meet its current obligation. A firm should ensure

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that it does not suffer from lack of liquidity and also that it does not have excess liquidity. The failure of firm to meet its credit worthiness, loss of creditors confidence etc. a very high degree of liquidity is also bed; “Idle assets earn nothing.” The firm’s fund will be unnecessarily tied up in current assets. Therefore it is necessary to strike a proper balance between high liquidity & lack of liquidity.

Current Ratio: = Current Assets Current Liabilities

= 1,24,37,832 1,91,35,327

= 0.65 : 1A current ratio of 2 : 1 or more is considered satisfactory,

which here C.R. is 0.65 to 1 is not satisfactory for committee. Its represent that out of the liabilities of Rs. 1 the committee has Rs. 0.65 to paid.

Acid - Test Ratio: = Quick Assets Current Liabilities= 1,23,62,175 1,91,35,327= 0.64 : 1

1.2 Leverage Ratio: - Short-term credit like bankers and depositors are more concerned with the firm’s current debt-

30

paying ability. On the other hand long-term creditors like other banks societies or financial institution etc are more concerned with the firm’s long-term financial strength. In fact a committee should has a strong short as well as long-term financial position. To judge the long term financial position of the financial leverage, capital structure are calculated.

Debt to total capital ratio: = Total debtTotal assets

= 5,64,38,927 5,92,80,552

= 0.95

Total liabilities to Total Assets: = Total liabilitiesTotal Assets

= 2,67,38,3617,16,61,464

= 0.37:1

This ratio shows that on Rs. 1 assets there were Rs. 0.37 liabilities. This is very good position of the committee.

1.3 Profitability Ratio: -

A) In relation to total income: -31

(1) Gross / Net profit ratio:= Gross profit * 100

Total Income

= 13,84,046 *100 1,55,19,809

= 8.91 % B) In relation to investment: -

(1) Return on total assets:= Total Income *100

Total assets

= 1,55,19,880 *100 7,16,61,464

= 21.66 %(2) Return on capital Employed:

= Net Profit *100Net assets

= 1,38,84,046 *1007,16,61,464

= 1.93 %1.4 Committee Performance: -

(1) Spread Ratio:= Interest Expenses *100

32

Interest Income

= 0 * 10010,40,867

= 0 %

(2) Return on Advances: = Interest Income * 100

Loan & Advances

= 10,40,867 *1001,17,02,517

= 8.89 %

(3) Cost of Deposit: = Interest Income *100

Deposit

= 10,40,867 *1001,91,35,327

= 5.43 %

(4) Salary Exp to total exp:= Salary Exp. *100

Total Exp.

33

= 45,25,780 *1001,07,50,882

= 42.09 %

(5) Salary Expenses to Staff:= Salary Exp.

No. Of employee

= 45,25,78037

= Rs.1, 22,318

(6) Average Monthly Salary:= 1,22,318

12 Month

= Rs. 10,193 Per Month

34

Growth in Financial Position

OF

“APMC”

(THE AGRICULTURAL PRODUCE MARKET COMMITTEE)

CHAPTER CONTENTS: -

1.1 Graph of last 3-year finance position…

1.1 Graph of last 3-year finance position: -

Market year Income Expense Saving Permanent Fund

35

2003 - 04 73,97,764 57,84,290 16,13,474 1,33,90,291

2004 - 05 1,05,55,760 1,00,40,538 5,15,221 1,39,05,512

2005 - 06 1,55,19,809 1,41,35,767 13,84,046 1,52,89,458

36

Conclusion

OF

“APMC”

(THE AGRICULTURAL PRODUCE MARKET COMMITTEE)

CHAPTER CONTENTS: -

1.1 Conclusion…

1.1 Conclusion: -

After finishing the 15-day institutional training in The Agricultural Produce Market Committee I seen familiar with

37

committee and its transaction. We learned lots of unknown things from the committee staff especially from the Secretary Mr. Y.G.Patel, we also understand practically of marketing yard work.

This experience of training will be memorable for my two friends and me because this training teaches us many things, which word my self for not covering all the aspect of the committee. Lastly this report is not full perfect, its my best effort to make it perfect but some errors is accurse and for this my apologize.

I found the appreciate aspect in this committee’s staff and give us full co-operation. Now at the end I would like to give my best wishes to the firm for their prosperous growth.

10 Bibliographies: -

Annual Report (2005 – 06) of APMC

Financial Management – I.M.Pandey

38

Financial Management – M.Y.Khan

Management Accountancy – B.H.Shah

Financial management – B.H.Shah

39