AGRO- BASED INDUSTRY

PI Industries Ltd Rallis India Ltd Bayer CropSciences Ltd

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Executive Summary
Industry Brief
In this Financial Statement Analysis Assignment, we have taken up the Agro-based industry. Within
the Agro-based industry we have taken a detailed analysis of the Agro-Chemical industry. The reason for
the above is that the companies in this industry were similar with respect to their product segment,
making the comparison between them relatively accurate.
PI Industries Ltd (PI) was incorporated in 1947 as Mewar Oil & General Mills Ltd. with its registered
office in the lake city of Udaipur, Rajasthan It has a Market capital of - INR 107.94 bn. It is into - Agro
Chemicals: Insecticides, Fungicides, Herbicides.
Bayer is a MNC based in Germany. Its Indian Headquarters is in Mumbai. It was established in the year
1948. Its Market capital is INR 42.16 bn. It is into Crop Protection: Pesticides, Seed Treatment
Chemicals, Household Products, Seeds, Hybrid cotton, Plant Growth Nutrients.
Rallis India is a subsidiary of the TATA group and was established in the year 1948. It has a Market
capital of INR 141.6 billion and is into Crop Protection, Herbicides, Insecticides, Fungicides and Seeds
business.

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Why should banks or bond markets consider/ not consider you creditworthy to
finance your growth appetite?
 Bank and bond markets look into financial health and future growth prospects to gauge
creditworthiness of any company.
 The most important thing is the future cash inflows. Projected cash inflows of future years are
seen to gauge the liquidity situation of the company.
 As far as other financial parameters are concerned Sales growth, current ratio, current leverage
position, net profit margins, etc are also considered.
 Industry scenario is also considered to gauge the future market trends. This industry is highly
affected by monsoons and with good monsoon predictions for the current year the companies are
bound to benefit and have good future prospects. Thus the risks for the banks are lower.

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