INDEX

Timely and

Submission
Attendance

Complete
Quality
Date

Sign.
Sr. Total
Title of Exercise
No. marks

Preparation of business-
1 srength,weakness Opportunities
and Threats (SWOT)
Analysis of financial statement
2
(Balance sheet)

Compounding and discounting

3
and break even analysis

4 Visit to agro-based industries-I

5 Visit to agro-based industries-II

6 Time audit through planning

Study of agro-industries
7
development & corporation
8 Ratio analysis-I
9 Ratio analysis-II
Application of project appraisal
10 technique (undiscounted
measures)
Application of project appraisal
11
technique (discounted measures)

Formulation of project feasibility

12
report

Farm machinery project proposals

13
as entrepreneur-individual

Farm machinery project proposals

14
as entrepreneur-Group

Visit to entrepreneurship
15
development institute
Visit to entrepreneurs-(case study
16
of successful entrepreneurs)
Practical No. – 01

Title - Preparation of business – Strengths, Weaknesses

Opportunities and Threats (SWOT) analysis
INTRODUCTION
Human have been drinking milk from cows for thousands of years.
Modern dairy farming began early 1900`S after pasteurization was developed
and practiced. Milk and dairy products play and important role in a healthy,
balanced diet. They are rich sources of calcium which is easily absorbed by the
body. Reports show that the dairy industry accounts for 1 percent of the U.S.
gross domestic product (GDP). Dairy farmers own and operate milk producing
farms. Rather than receiving an actual fixed salary, the farmers income is based
on the farm`s scale revenue.
SWOT analysis allows the synthesis and integration of various type of
information which are generally known but skill makes it possible to enhanced
milk production with consequently increased avaibility of milk production with
consequently increased availability of milk processing Improve purchasing
power of the consumer
Here, we are doing the SWOT analysis of the dairy industry.
Strengths
 ·Enhanced milk production with consequently increased availability of
milk processing.
 Improved purchasing power of the consumer.
 Improved transportation facilities for movement of milk and milk
products. Increased availability of indigenously manufactured equipment.
 Large number of dairy plants in the country.
 Vast pool of highly trained and qualified manpower available to the
industry.
 Country's vast natural resources offer immense potential for growth and
development of dairying.

Weaknesses
 Lack of appropriate technologies for tropical climate conditions.
 Erratic power supply.
 Lack of awareness for clean milk production.
 Underdeveloped raw milk collection systems in certain parts of the
country.
 Seasonal fluctuations in milk production pattern.
 Regional imbalance of milk supply.
 Species-wise variation in milk quality received by dairy plants.
 Poor productivity of cattle and arable land.
 Scarce capital for investment in the dairy development programmes on
a priority basis.
 Absence of proper data records which is essential for preparing
development programmes.
 Dairy development programmes have not been fully implemented as
per the needs of the region in different agro-climatic zones.
 Lack of marketing avenues for the dairy produce.
 Non-availability of software for preparing needed dairy
schemes/projects.
 Lack of infrastructure for offering Dairy Business Management
programmes to train dairy personnel.

Opportunities
 Greatly improved export potential for milk products of western as
well as traditional types.
 Expanding market for traditional dairy products.
 Increasing demand for fluid milk as well as value added products.
 By-product utilization for import substitution.
 Employment generation.
 Growing demand for milk and milk products.
 Liberalized polices in dairy sector.
 Availability of large resources of unconventional feeds
and fodders.
 Availability of diverse germ plasm with unique features like heat
tolerance, disease resistance, draft ability and ability to survive and
produce under stress conditions.
 Availability of animal production technologies for faster
development and effective implementation.
  Integrated structure of marketing for milk and milk products.
 Integrated structure of livestock marketing through regulated
markets.
 Improved collection of data on contract basis through agencies.
 Market information intelligence system for milk and milk products.
 Development of software for project formulation for dairy
enterprise.

Threats
 Introduction of foreign products in Indian market.
 Increasing chemical contaminants and residual antibiotics in
milk.
 Poor microbiological quality of milk.
 Export of quality feed ingredients particularly cakes under the
liberalization policy.
 Deficiency of molasses, a rich source of energy and binding
agent in feed industry and constituent of urea molasses mineral
lick.
 Excessive grazing pressure on marginal and small community
lands resulting in complete degradation of land.
 Extinction of the indigenous breeds of cattle due to
indiscriminate use of crossbreeding programme to enhance milk
production.
 The liberalization of the dairy industry is likely to be exploited
by multinationals. They will be interested in manufacturing
value added products. It will create milk shortage in the country
adversely affecting the consumers.

Conclusion
As dairy industry will be an outstanding marketing organization with
specialization in marketing of food (milk) and milk products, both fresh and
long life with customer focus and information technology integration. The
network consists of many office’s and stockiest covering at least every taluka
and village also.
From the above analysis we conclude that the dairy industry has a bright
future in the own going time with full of opportunities.
Practical No. – 02
Title -: Analysis of Financial Statements (Balance Sheet,
Profit & Loss Statement)
Introduction
Financial Statement Analysis is a method of reviewing and analysing a
company‘s accounting reports (financial statements) in order to gauge its past,
present or projected future performance. This process of reviewing the financial
statements allows for better economic decision making.
When the analysis is conducted for all financial statements at the same time,
the complete impact of operational activities can be seen on the companies’
financial condition during the period under review. This is a clear advantage of
using horizontal analysis as the company can review its performance in
comparison to the previous periods and gauge how it‘s doing based on past
results.
The Profit and Loss account for the year ended 31/12/2022
The Balance sheet as it is in 31/12/2022

Total revenues
2,500,000
(-) cost of goods sold
(1,500,000)

= Gross profit 1,000,000

Operating expenses 450,000

= Profit before extraordinary items

550,000
+ Net capital gains and losses
(30,000)
(1000000 -130000 capital gains capital losses )

= Profit before interest 520,000

and taxes (-)Interest (120,000)
= Profit before tax 400,000
250000 (-) Taxes (132,000)
= Net profit after tax 268,000
 The Balance sheet as it is in 31/12/2022

Amount Liabilities and Equity Amount Assets

5,000,000 Equity 3,000,000 Fixed assets
1,200,000 Reserves are not subject to tax (400,000) (-) depreciation acumen.
Long term loans (8%) Net fixed assets
1,500,000 Current liabilities 2,600,000 Prepaid expenses
750,000 Revenue received in advance 640,000 Stock
190,000 3,300,000 Accounts receivable
1,200,000 Cash
900,000
8,640,000 Total 8,640,000 Total

Additional information
 Revenue last period 2,000,000
 Revenue from client 1,500,000
 Average number of employees 1,500

Details
1.Revenue growth = (revenue this period - revenue last period) ÷ revenue
last period
2,500,000 – 2,000,000 ÷ 2,000,000 = 0.25 = 25%

2. Revenue concentration = (revenue from client ÷ total revenue)

1,500,000 ÷ 2,500,000 = 0.6 = 60%

3. Revenue per employee = (total revenue ÷ average number of employees)

2,500,000 ÷ 1500 = 1667

4. Gross profit margin = (total revenues – cost of goods sold) ÷ revenues

2,500,000 – 1,500,000 ÷ 2,500,000 = 0.40 = 40%

5. Operating profit margin (total revenues – cost of goods sold – operating

expenses) ÷ total revenues.
(2,500,000 – 1,500,000 – 450,000) ÷ 2,500,000 = 0.22 = 22%
6. Net profit margin (revenues – cost of goods sold – operating expenses –
all other expenses) ÷ revenues.
(2,500,000 – 1,500,000 – 450,000 – 252,000) ÷ 2,500,000 = 0.12 = 12%

7. Accounts receivables turnover= (net credit sales ÷ average accounts

receivable).
1,000,000 ÷ 1,200,000 = 0.83

8. Inventory turnover = (cost of goods sold ÷ average inventory)

1,500,000 ÷ 3,300,000 = 0.45 = 45%

9. Return on equity = (net income’ shareholder ‘s equity)

268,000 ÷ 6,200,000 = 0.043 = 4,3%

10.Debt to equity (debt ÷ equity).

21
2,440,000 ÷ 6,200,000 = 0.3935= 39.35%

11.Current ratio (current assets ÷ current liabilities).

6,040,000 ÷ 940,000 = 6.425
12.Interest coverage (earnings before interest and taxes ÷ interest expense).
520,000 ÷ 120,000 = 4.333.13

Conclusion
From the above analysis we conclude that there is a balanced expenditure
throughout the survey. Here we can predict that by the following above way is
best to have a bright future for any company or service sector.
Practical No. 03
Title: Compounding and Discounting and
Break Even Analysis
INTRODUCTION
Compounding
Compounding helps us to find the future value of a present value (or
amount) that is compounded for a given interest rate for a given number of
years.
Let's say we have $10,000 and we want to find its future value when the
amount is invested for 10 years at 10% interest rate compounded annually.
To calculate this, we use Compounding.

Types of Compounding
Mostly compounding is done annually. But here are some of the common
compounding type.
Interest compounded annually - This means we are calculating the interest
once per year.
Interest compounded half-yearly - This means we are calculating the interest
twice per year.
Interest compounded quarterly - This means we are calculating the interest 4
times per year.
Interest compounded monthly - This means we are calculating the interest
every month per year.
In general:
The value of money after nth period of time can be calculated as:
F = P(1+i)"
Which F is the future value of money, P is the money that you have at the
present time, and is the compound interest rate.
Example 1-1:
Assume you put 20,000 dollars (principal) in a bank for the interest rate of 4%
How much money will the bank give you after 10 years?
F= P(1+4)=20,000 (1+0.04)10-20,000 1.480242960-4.8
So the bank will pay you 29604.8 after 10 years.

Discounting
In economic evaluations, “discounted” is equivalent to “present value” or
“present worth” of money. As you know, the value of money is dependent on
time; you prefer to have 100 dollars now rather than five years from now,
because with 100 dollars you can buy more things now than five years from
now, and the value of 100 dollars in the future is equivalent to a lower present
value. That's why when you take loan from the bank, the summation of all your
instalments will be higher than the loan that you take. In an investment project,
flow of money can occur in different time intervals. In order to evaluate the
project, time value of money should be taken into consideration, and values
should have the same base. Otherwise, different alternatives can’t be compared.

Assume you temporarily worked in a project, and in the end (which is present
time), you are offered to be paid 2000 dollars now or 2600 dollars 3 years from
now. Which payment method will you choose?

In order to decide, you need to know how much is the value of 2600 dollars
now, to be able to compare that with 2000 dollars. To calculate the present
value of a money occurred in the future, you need to discount that to the present
time and to do so, you need discount rate. Discount rate, i, is the rate that money
is discounted over the time, the rate that time adds/drops value to the money per
time period. It is the interest rate that brings future values into the present when
considering the time value of money. Discount rate represents the rate of return
on similar investments with the same level of risk.
So, if the discount rate is i=10% per year, it means the value of money that you
have now is 10% higher next year. So, if you have P dollars’ money now, next
year you will have P+iP =P(1+i) and if you have F dollars’ money next year,
your money is equivalent to F/(1+i) dollars at present time.
Going back to the example, considering the discount rate of 10%:
We can calculate the present value of $2600 occurred 3 years from now by
discounting it year by year back to the present time:
Value of 2600 dollars in the 2nd years from now =2600/ (1+0.1) =2363.64
Value of 2600 dollars in the 1st years from now = (2600/
(1+0.1))/(1+0.1)=2600/[(1+0.1)2]=2148.76
Value of 2600 dollars at the present time = ((2600/
(1+0.1))/(1+0.1))/(1+0.1)=2600/[(1+0.1)3]=1953.42
So, it seems at the discount rate of i=10%, present value of 2600 dollars in 3
years equals 1953.42 dollars, and you are better off, if you accept the 2000
dollars now.
With the following fundamental equation, present value of a single sum of
money in any time in the future can be calculated. It means a single sum of
money in the future can be converted to an equivalent present single sum of
money, knowing the interest rate and the time. This is called discounting.
P= F[1/(1 + i)n]
Equation 1-2
P: Present single sum of money.
F: A future single sum of money at some designated future date.
n: The number of periods in the project evaluation life (can be year, quarter or
month).
i: The discount rate (interest rate).

Example 1-2:
Assuming the discount rate of 10 %, present value of 100 dollars which will be
received in 5 years from now can be calculated as:
F=100 dollars =5i =0.1P=F[1/(1 + I )n]= 100[1/(1 + 0.1)5]=62.1
You can see how time and discount rate can affect the value of money in the
future. 62.1 dollars is the equivalent present sum that has the same value of 100
dollars in five years under the discount rate of 10%
Compounding and Discounting
 The concept of compounding and discounting are similar.
 Discounting brings a future sum of money to the present time using discount
rate and compounding brings a present sum of money to future time.
 Break-Even Analysis
 You may have an idea that spurs you to open a business or launch a new
product on little more than a hope and a dream.
 Or, you might just be thinking about expanding a product offering or hiring
additional personnel.
 It’s wise, however, to limit your risk before jumping in.
 A break-even analysis will reveal the point at which your endeavour will
become profitable-so you can know where you’re headed before you invest
your money and time.
 A break-even analysis will provide fodder for considerations such as price
and cost adjustments.
 It can tell you whether you may need to borrow money to keep your
business afloat until you’re pocketing profits, or whether the endeavour is
worth pursuing at all.
 A break-even analysis is a financial calculation that weighs the costs of a
new business, service or product against the unit sell price to determine the
point at which you will break even.
 In other words, it reveals the point at which you will have sold enough units
to cover all of your costs.
 At that point, you will have neither lost money nor made a profit.
 Variable costs rise and fall according to changes in sales.
 Examples of variable costs include direct hourly labour payroll costs, sales
commissions and costs for raw material, utilities and shipping.
 Variable costs are the sum of the labour and material costs it takes to
produce one unit of your product.
 Total variable cost is calculated by multiplying the cost to produce one unit
by the number of units you produced.
 For example, if it costs $10 to produce one unit and you made 30 of them,
then the total variable cost would be 10 x 30 = $300.

When to Use a Break-Even Analysis

 Basically, a business will want to use a break-even analysis anytime it
considers adding costs.
 These additional costs could come from starting a business, a merger or
acquisition, adding or deleting products from the product mix, or adding
locations or employees.
 In other words, you should use a break-even analysis to determine the
risk and value of any business investment, especially when one of these
three events occurs:
 1. Expanding a business
 Break-even points (BEP) will help business owners/CFOs get a reality
check on how long it will take an investment to become profitable.
 For example, calculating or modelling the minimum sales required to
cover the costs of a new location or entering a new market.
 2. Lowering pricing
 Sometime businesses need to lower their pricing strategy to beat
competitors in a specific market segment or product.
 So, when lowering pricing, businesses need to figure out how many more
units they need to sell to offset or makeup a price decrease.
 3. Narrowing down business scenarios
 When making changes to the business, there are various scenarios and
what-ifs on the table that complicate decisions about which scenario to go
with.
 BEP will help business leaders reduce decision-making to a series of yes
or no questions
 Break-Even Analysis Formula
Break-even quantity = Fixed costs / (Sales price per unit – Variable cost per
unit)

Break-even analysis example

 Beth has dreams of opening a gourmet cupcake store.
 She does a break-even analysis to determine how many
cupcakes she’ll have to sell to break even on her investment.
 She’s done the math, so she knows her fixed costs for one year
are $10,000 and her variable cost per unit is $.50.
 She’s done a competitor study and some other calculations and
determined her unit price to be $6.00.
 $10,000 / ($6 – $0.50) = 1,819 cupcakes that Beth must sell in
one year to break even
How to Lower Your Break-Even Point
 There are two basic ways to lower your break-even point:
 lower costs and
 raise prices.
 But neither should be done in a vacuum.
 Weigh your options carefully in pricing methods and consumer
psychology to make sure you don’t sell more product but lose
money in the bargain.
 Further, consider all elements of costs, such as the associated
quality and delivery, before slashing them to prevent damage to
your brand.
 Outsourcing products or service can also reduce costs when
demand or volume increase.
Practical No. – 03 & 04
Title – Visit to Agro Based Industries
Course No. : AS ECON-231
Name of Course Teacher : Prof. S. M. Patil
Course Title : Entrepreneurship Development and Business Communication
Purpose of Visit : Exposure to Agi. Based Unit

Place of Visit : Greeno Biotech, A/P - Pattan kodoli, Tal – Hatkanangale, Dist -
Kolhapur 416202
Class of Students : Second Tear B. Tech. (Agril. Engg.)
No. of StudentsParticipated : 57 (Fifty Seven)

Name of Staff accompanied : 1) Prof. S. M. Patil.

2) Er. Ms. R. R. Surve
Spots Visited : Greeno Biotech, A/P - Pattan kodoli, Tal – Hatkanangale,
Dist - Kolhapur 416202
Date of Visit : 05/11/2022

Spot wise photographs with representative photographs:

Spot 1 - Greeno Biotech, Pattan Kodoli (Agri. Based Unit)

Spot 2 – Advance Vermicompost Unit

Summary:
1. Permission of Principal & Greeno Biotech, Pattan Kodoli

List of Participated Students with Sign.

 As per practical schedule of AS-ECON-231 course, Dr. D. Y. Patil College of Agricultural
Engineering & Technology, Talsande had arranged exposure visit of S. Y. B. Tech. (Agril. Engg.)
Students to Greeno Biotech, Pattan Kodoli, Tal – Hatkanangale, Dist - Kolhapur 416202 on
November 05, 2022.
During visit students were exposed & explained about detail technical information about
commercial production, packaging, transportation and marketing of Vermibed, Azolla Bed & Vegetable
Growing Bed.
The information was given by Mr. Amol Bongale, owner of the Unit. Students observed sticking
of beds, Preparation of Package for online selling and other operations carried out for the finalization of
the product. Students were explained about types of markets, marketing channels and payment methods
of product. Most important students got knowledge about the various characteristics of entrepreneur,
economical status, investment and overall financial environment of the business.

2. Feedback from students about visit

1. Got on field knowledge of Entrepreneurship Management.
2. Received a knowledge regarding production Vermibed, Azolla Bed & Vegetable Growing Bed.
3. Learnt regarding handling of product and processing.
4. Acquired knowledge about different markets and how to study need of market.
5. Also got acquainted with different entrepreneurial skills required to become a successful
entrepreneur.
6. Learnt about the process and procedure to start the new start up business.

3. Feedback from staff about visit

From the conducted visit students were exposed with Agri.based business unit. It also helps
students to understand in detail technical and practical knowledge about various Entrepreneurial skills
and economical environment of business.
The practical knowledge from the visit will help the students understanding of concepts to which
will enhance the knowledge and which will be beneficial in the overall academic progress.
Practical No. 06
Title: -Time Audit through Planning
INTRODUCTION

 Do you ever reach the end of the workday and wonder where the time went?

 Of course you do.

 You felt like you were busy and working on important things all day, but
when it’s time to go home, you wonder what you did all day.

 How did the time get away from you?

 If you want to figure out where your time goes, try doing a time audit

What is a time audit?

 Simply, a time audit is keeping track of what you do during the day.

 You want to track your time over a period of several days so that you can get
a better idea of how you are spending your time.

 This way you can examine and analyse how you actually spend your time
versus how you want to spend your time.

 When you track your activities for a week or more, you can pinpoint what
types of activities take up most of your time.

 By knowing where your time goes, you can identify opportunities where you
can be more efficient and increase your productivity.

 Increasing your productivity makes you, your boss, and all stakeholders
much happier as you stay on task and complete projects on time.
 How to conduct a time study?

There are many ways to conduct a time study.

Let's break it down into the following simple steps:

Determine how you will track daily activities.

Determine how and how often you will be reminded to track your tasks.

1. Track your daily activities

 At the core of doing a time audit is recording the work that you do
throughout the day. There is no right or wrong way to record your
activities.
 Your method can be as low-tech as writing everything down with a pencil
and paper or as high-tech as using time tracking software on your
computer or phone.
 Whatever you are comfortable using is the right method for you.
 Don’t worry about writing detailed descriptions for each task that you
record in each time period.

For example, the word “email” is enough to record the time spent checking
your inbox.

2. Set an alarm to remind you to record your tasks

 The world’s best and most sophisticated time tracking software will not
do you any good if you don’t look at it. Even if you have an incredibly
good memory, chances are you will get busy and forget to record your
activities.
 You need to determine how you will remind yourself to record your data.
If you always have your phone with you, all you need to do is set an
alarm on your phone. If you spend most of your day on your laptop or
 desktop computer, create an alarm that either makes a sound or visually
alerts you when it is time to record your work.
 How often these alarms are triggered is entirely up to you. Some people
like to record work in 15- or 30-minute intervals. Others are more
comfortable recording activities hourly or every two hours.

3. Analyse your data to determine where your time is going

 As you look at the activities you’ve recorded, look for the items that you
do often during the day that may be draining your time.
 For example, if you’ve recorded that you spend 10 to 15 minutes looking
at email every hour, that activity is taking a significant amount of time
that could be used on other work.

Place the activities into different categories:

 Very important: Tasks that should take up the majority of your time
 Not as important: Tasks that need to be completed, but can be put on the
back burner and assigned lower prioritization
 Not important at all: Activities that waste your time and that you
probably shouldn’t be doing at all
 Next, rank these activities in order of importance. This step is very useful
because it can give you an idea of which tasks are draining the most time
from your day and can help you to prioritize the most important ones that
should be taking most of your time.
 For example, email can be important, but not every email that comes into
your inbox is so important that you need to stop what you are doing to
read and respond to it. Attending meetings may be a very important part
of your job. If so, rank meetings much higher.
 Pro tip: You should also consider completing a time audit as a team
to analyse the efficiency of your processes. In Lucid chart, you can
 overlay data on top of flowcharts and other visuals to easily highlight
bottlenecks or points where time is wasted.

4. Plan and prioritize your work

After you have identified where time is being used, make a plan that will
prioritize your most important tasks, and eliminate any activities that keep
you from your priorities.
Begin by defining what your ideal day should look like. For example, if the
majority of your time should be spent writing code, make coding your top
priority. If you should not spend any time on social media platforms, make
social media the lowest priority or eliminate it if you can.
Consider using an Eisenhower matrix to help you prioritize your work based
on urgency and importance so you can use your time more wisely. The
matrix is divided into four quadrants:
 Quadrant 1: Important and urgent
 Quadrant 2: Important but not urgent
 Quadrant 3: Urgent but not important
 Quadrant 4: Not important, not urgent
 The idea of a time audit is to prioritize your time so you can be as
productive as possible.
 Perform a time audit periodically to ensure that you are using your time
wisely. Consider sharing your data and analysis with your manager to
show how your productivity has increased.
 You may want to share time audit ideas with other team members.
 Don’t use time audits as a way to increase your workload. Instead, use it
to find ways to minimize distractions and activities that keep you from
completing your most important work.
 Commit to the improvements you make so that you will always be
perceived as an essential member of your organization.
When should you do a time audit?
You can do a time audit at any point, but it’s good to have at least a few
weeks to a month of personal data before you dive in.
If you can run through this list monthly, you’ll be able to fine-tune your
schedule. However, quarterly or bi-yearly is good as well.
Especially if you’ve been conscious of where your time is going for a while
now.
How to Capture Your Data?
This is an essential step toward taking control of your time so that
you’re doing less of what isn’t helping you and more of the things that
add value to your business and life.
How to Capture Your Data?
1. Pen and paper- is the tried and true solution. This is what we
recommend for the most thorough analysis of your time. If you tend to
think outside the box, feel restricted by adding additional systems, don’t
always work in the digital space, or just enjoy having a pen in your hand,
this is the option for you.
2. Calendar blocking -is a great way to track your time consistently, so if
you’re already a pro in this system, then you’re ahead of the game.
Simply make detailed notes about the specific tasks you completed in
each calendar block as you go through your day. Move the blocks from
your “ideal” recurring schedule to match what time they actually
happened.
3. Many apps- exist for tracking your time. You can manually track your
time in tools like Harvest, Toggl, Fresh books, etc. However, you can
also install a browser or desktop plugin (like Rescue Time) that will track
your time automatically. At the end of the day, check that the data aligns
with what you actually did (technology isn’t perfect!), and add any details
the plugin may have missed. Be mindful that Rescue Time will track all
of the time you spend on your computer, tablet, or phone, so you’ll track
what sites you visit even when you’re not working if you don’t toggle on
and off during work hours.
4. A physical time tracker- is a die-like device that sits on your desk.
Download the app and set up the device (mark each side with things that you
usually do, then link that to a specific task in your app), then flip it to the
appropriate side that corresponds with what you’re working on. Again,
you’ll need to do some maintenance to note exactly what you were doing,
but this does offer a bit more customization to the automation than apps in
that regard. All you need to do is remember to flip!
Practical No. 07
Title- Study of Agro-Industries Development Corporation
INTRODUCTION
The demand for food and agricultural products is changing in
unprecedented ways. Increases in per capita incomes, higher urbanization and
the growing numbers of women in the workforce engender greater demand for
high-value commodities, processed products and ready-prepared foods. A clear
trend exists towards diets that include more animal products such as fish, meat
and dairy products, which in turn increases the demand for feed grains (FAO,
2007).
There is also a growing use of agricultural products, particularly grains
and oil crops, as bioenergy production feedstock. International trade and com-
munitions are accelerating changes in demand, leading to convergence of
dietary patterns as well as growing interest in ethnic foods from specific geo-
graphical locations.
The nature and extent of the changing structure of agri food demand offer
unprecedented opportunities for diversification and value addition in
agriculture, particularly in developing countries. As a reflection of changing
con- summer demand, the 1990s witnessed a diversification of production in
developing countries into non-traditional fruits and vegetables. The share of
developing countries in world trade of non-traditional fruits and vegetables has
increased rapidly in the recent past (FAO, 2007). According to Rabobank,
global processed foods sales per year are estimated at well over US$3 trillion, or
approximately three-quarters of the total food sales internationally (RBL bank,
2008).
While most of these sales are in high-income countries, the percentages
of global manufacturing value addition for the main agro-industry
manufacturing product categories generated by developing countries have
nearly doubled in the last 25 years (FAO, 2007). The prospects for continued
growth in demand for value-added food and agricultural products constitute an
incentive for increased attention to agro- industries development within the
context of economic growth, food security and poverty-fighting strategies.
Agro-industries, here understood as a component of the manufacturing sector
where value is added to agricultural raw materials through processing and
handling operations, are known to be efficient engines of growth and
development. With their forward and backward linkages, agro-industries have
high multiplier effects in terms of job creation and value addition. A new dairy
processing plant, for instance, creates jobs not only at its own transformation
facilities, but also at dairy farms and in milk collection, farm input supply and
product distribution.
The demand pull created by an agro-industrial enterprise stimulates
businesses well beyond the closest links with its direct input suppliers and
product buyers; a whole range of ancillary services and supporting activities in
the secondary and tertiary sectors of the economy are also positively impacted.
Because of the generally perishable and bulky characteristics of agricultural
products, many agro-industrial plants and smaller-scale agro-processing
enterprises tend to be located close to their major sources of raw materials.
Consequently, their immediate socio-economic impacts tend to be exerted in
rural area
Practical NO.08
Title: Ratio Analysis-I
Theory
 Test of Solvency
This ratio indicates the ability of the industry to meet its short term and
medium term obligations.

Ratios of Solvency -
A) Ratio of Total liability to owned funds →
Total liability/ owned funds
This ratio reflects the lesser than financially
stranger the industry.
This ratio reflects higher than financially dependent on external funds."
Fixed asset owned funds

B) Ratio of fixed asset to owned funds

• If 1:1 ratio then consider to be acceptable limits.
 If it is greater than I then the profit of Industry is increased.
 Test of Liquidity
This measure used to find out the ability of the unit to meet indicate maturing
obligations
•Ratios of Liquidity.
A) Ratio of liquid asset to total asset
Liquid asset /Total asset

 If the ratio is upto 0.5 then it shows liquidity preference of the industry.
B) Ratio of current asset to current liabilities
Current assets /Current liabilities
 The ratio of must be greater than 1.

 current assets or obligations and short

term lean can replay easily.

C) Acid Test Ratio. = Current Assets –Inventories/ Current liabilities

 If ratio is 1:1 then it is optimum.
 If ratio is <0.5 then it is unsatisfactory
 Indicates dependence of unit industry an Inventory
Practical No. 09
Title: -Ratio Analysis-II
INTRODUCTION
Test of Profitability.
A. Net Profit to total Assets Ratio
Net Profit /Total Assets
This ratio indicates rate of profit earn the total assets employed & increased. In
the ratio over the years indicates improvement in the overall efficiency of the
unit.
B. Net profit to Funds Ratio
Net profit/ owned funds
 Indicates profit earned by processing unit on the funds invested in the
business Higher rate indicates higher stage of the income generated
C. Net profit to fixed Assets Ratio
Net Profit /fixed Assets
 Higher ratio indicates greater utilization of fixed assets and they in better
position to meet its long term.
 Test of Turnoover
 It is also known as activity ratio.
 This ratio expresses relationship between
 levels of sales and investments.
A) Stock - Turnover Ratio = Annual sales/ Average Inventory
 Inventory = Opening Stock + Closing stock /2
 Indicates effectiveness of industry in
Sales
 If the ratio is higher than the greater. performance of industry occum.
B) Working capital Turnover Ratio
Total Sale/ Current Assets
 It helps measuring efficiency of employment of working capital. Higher ratio
then greater efficiency.
 Higher ratio then greater efficiency
C) Fixed assets turnover ratio
 It is used to test the efficiency in utilizing the fixed assets, higher the fixed
assets higher will be the efficiency of unit. generate in utilizing of fixed
assets to sales and profit.
D) Total assets turnover ratio
Annual sale / Fixed assets
 This ratio indicates effectiveness in utilizing total assets of business fund
 Higher the ratio indicates increased the effectiveness of the processing unit
 In accounting, turnover ratios are the financial ratios in which an annual
income statement amount is divided by an average asset amount for the
same year.
 Generally, the larger the turnover the better.
 The turnover ratios indicate the efficiency or effectiveness of a company's
management.
 Receivable Turnover Ratio or Debtor's Turnover Ratio is
an accounting measure used to measure how effective a company is in
extending credit as well as collecting debts.
 The receivables turnover ratio is an activity ratio, measuring how efficiently
a firm uses its assets
Practical No. 10 & 11

Title:-Application of Project Appraisal Technique

(Undiscounted Measures)
INTRODUCTION

 In view of the scarcity of resources for investment one must attempt to

make best use of available resources.
 This may help on investment allocations of fund before decision made.
 Sound project are those which satisfied economic criteria of efficiency.
 Evolution of investment implies the application of fact finding process.
 Evolution the most important aspect on which the success of project
depends.
 The evolution of investment in project can be made at 3 stages.
 The ex-ante evolution helps to ascertain the economic feasibility of project
investment by using technique like cost benefit ratio, etc.
 The concurrent evolution helps to detect flaws in implementation and
difficulty pandas’ shortage and encountered during the course of
operation.
 The ex-post or end evolution or poster projects evolution help to assess in
its totally the benefits accurately and detected flaws in the overall scheme.
 Measures of Project Worth are –
A. Undiscounted measures of Project Worth
1. Ranking by inspection
2. Payback period
3. Process per unit of outlay.
4. Average income on book value of investments.
B. Discounted measures of project worth
1. Net present worth
 2. Internal rate of return
3. Benefit cost ratio
4. Net benefit investment ratio
A.1. Ranking by Inspection
 In some cases, we can tell by simply looking at the investment cost and
the shape of the stream for the net value of incremental production that
one project should be accepted over another.
A.2. Payback Period
 The Payback period is the length of the time from the beginning of the
project until the net value of incremental production stream reaches the
total amount of the capital investment.
 The payback period is common rough means of choosing among
investment in a business enterprise. Especially when the choice and tell is
high degree of risk.
 In agricultural projects however it is not often used.

Net Present Worth

 The most straight forward discounted cash flow measures of project
worth is the net present worth.
 This is a simply the present worth of the incremental net profit or
incremental cash flow stream.
 The net present worth may also be computed by finding the difference
between the present worth of the benefit stream less the present worth of
cost stream.

 Although the net present worth maybe computed by subtracting the total
discount present worth of the cost stream from the benefit stream.

Net Present Worth = Bt - Ct/ (1+i) t

Practical No. - 12
Title -: Formulation of Project Feasibility Report
Purpose of Project
In the region of sub-Sahara Africa, the number of undernourished people
accounts for a high percentage of about 30% of the whole population.
Moreover, poverty and starvation are increasingly serious problems in this
region due to the hikes of food prices worldwide in recent years. To solve these
problems, it is important to ensure the food security in this region and reduce
poverty. The measures to achieve these objectives include promoting increase in
agricultural products and improvement of their productivity through direct
investments in agriculture which is the key industry in sub-Sahara Africa.
Based on this recognition, Subsidized Project of the Ministry of Agriculture,
Forestry and Fisheries, "2013 Model Project for Demonstration of Development
and Promotion of Agribusiness in SubSahara Africa" (hereinafter referred to as
this project) was implemented with the aim of promoting investments in
agribusiness targeting farmers in the region of sub-Sahara Africa as well as
increasing incomes of local farmers and reducing poverty by conducting a
demonstrative experiment to increase production volume of agricultural
products and improve their productivity through investments in materials and
equipment, including agricultural machinery which was introduced in the region
using a rental or leasing system.

Contents of Project
As the target countries of this project, Republic of Uganda (hereinafter
Uganda) and the United Republic of Tanzania (hereinafter Tanzania) were
selected from the countries located in sub-Sahara Africa. In Uganda, a
demonstrative experiment and its supplementary research were conducted. In
addition, in Tanzania, a supplementary research of the demonstrative
experiment was conducted to promote investments in agribusiness for farmers
in a wider area in the sub-Sahara Africa region. In this demonstrative
experiment, power tillers, grain threshers and rice milling machines were
introduced mainly to farmers engaged in growing upland rice to verify the
performance of each agricultural machine and to what extent those machines
could contribute to the improvement of productivity of labor. In Uganda, as
there were farmers who had already introduced power tillers made by a
Japanese manufacturer, research was conducted on what changes in the
operation of farming those farmers have experienced after introducing power
tillers and what issues they have in relation to durability and operation of the
power tiller.
In the supplementary research conducted along with the demonstrative
experiment, information was collected which was necessary for introducing
agricultural machinery with the aim of increasing incomes of farmers. In
addition, a training session was held during the period of dispatch of the project
team to provide local farmers and technical experts with instructions and
education on how to use and manage agricultural materials and equipment.
From these activities, basic information necessary for the development and
promotion of agribusiness operated by private companies and other parties was
collected in this project. Report on the outcome of this project was prepared
based on the demonstrative experiment result, the result of its supplementary
research and the result of review by a committee of knowledgeable key figures.
In addition, as general reporting on the project outcome, a seminar was held
targeting parties involved in manufacture of agricultural machinery and in
international cooperation projects to share the vision for the future investment
direction among interested parties.

Summary of Project Results

1) Feasibility Experiment

The demonstrative experiment in this project was implemented in

cooperation with AEATREC and Promotion of Rice Development Project
which is operated by JICA within NaCRRI located in Kyaddondo County,
Wakiso district in Uganda. In this experiment, a farm field for seed
development and other farm fields around it within NaCRRI were leased and
two work areas were set in these fields; one work area using machines and
another with human power for growing upland rice in rainfed lowland. By
comparison of these two areas, it was evaluated how labour productivity
changed as a result of introducing machinery in stages of plowing, cultivation
(weeding) and harvesting. In this experiment, power tillers (rotary and tractor
types), reapers, grain threshers and pneumatic separators were used. A test of
rice milling machines was also conducted using rice crop. As a result of the
experiment, working time was shortened and productivity of labour was
improved in
All processes of rice cultivation. It was revealed that in agriculture in
Uganda which is suffering a labour shortage, mechanization of plowing was
economical even with a cost of fuel, and that expansion of farm lands was
possible. Efficiency in weeding work which is a heavy burden on farmers was
also improved to the same extent as flowing work. At the same time, issues
faced with farmers when actually introducing machinery were identified. In the
experiment in the stage of harvesting, reapers have remarkably improved the
efficiency and it was highly appreciated by farmers. In addition, in working
with grain thresher and pneumatic separator, not only the working time was
shortened but also harvest loss was prevented, which means that higher
efficiency is expected than the result value indicates. Furthermore, in the
experiment of rice milling machine, it was found that mill top type of rice
milling machine was more effective in shortening working time and reducing
energy cost in comparison with the Engberg type.
As stated above, agricultural machineries introduced in the demonstrative
experiment in this project have improved the labour productivity in each
process of rice cultivation. Although improvements are required in some areas
since a system of mechanization is not fully established and operators have not
sufficient skills, it was indicated that farm mechanization can contribute to
expansion of scale of farmers involved in rice cultivation. On the other hand,
effect of mechanization on crop yields per unit area which was not clearly found
in this experiment and how much increase in incomes will be expected if
agricultural machineries were continuously operated and whether it will lead to
reduction in poverty are the issues to be addressed.