Financial Performance Evaluation: A Case Study of MAHA-Farmers Producers Company Ltd.

Financial Performance Evaluation: A Case Study of MAHA-Farmers Producers Company Ltd.

AUTHORS :

S. N. Tripathy

 

DOI :

CP2020/OCT-MAR/ARTCL1

 

ABSTRACT :

The present paper with the help of secondary sources of data attempts to capture the major events that shaped the course of cooperative movements in Odisha. The paper portrays the prevailing socio-economic factors and key events which contributed to the development of cooperatives in different phases and its genesis and growth trend in Odisha in the national perspectives.

 
REFERENCES :
  1. Bengal under the Lieutenant-Governors, Vol. I. In C. Buckland – Northcok, S. (n.d.).
  2. Madras Provincial Banking Enquiry Committee Report, 5 Vols. Madras. – Government of Madras. (1930).
  3. Contractual Labour in Agricultural Sector. Discovery Publishing. – Tripathy, S. (2000).
  4. Co-operative Movement in Odisha: Highlights of Progress. Odisha Review, February – March, 51-54. – Senapati, S. (2012).
  5. Annual Activity Report 2018-19. Cooperation Department. –   Government of Odisha.
 
KEYWORDS :

Cooperatives Movements, Rural credit, Money lenders, Farmers.

AUTHORS :

Sagar Wadkar, Pallavi Ingale and Bhargavi Thakur

 
DOI :

CP2021/October-December2021/ARTCL2

 
ABSTRACT :

In 21st century, Farmer Producers Organizations (FPOs) model has been seen as vehicle for agri-food system transformation. Despite two decades journey, the FPOs movement is in the nascent stage, where in the focus is on formation and promotion of a commodity specific FPOs under both cooperative and producers company act. Increasingly, the government of India is spending huge amount on creating the social capital and handholding them. However, their financial and longterm sustainability is a serious issue. The present study is an attempt to assess  the financial performance of one such state level federation of FPOs i.e. MAHA-FPC, a state level producers company. The study follows the case study approach and descriptive research design. The primary data  was collected through semi-structured interview schedule from the chairman and CEO of MAHA-FPC. The secondary data has been collected through company’s previous six years annual report (2014-15 to 2019-20). The data was analyzed through ratio analysis liquidity, leverage and profitability and trend analysis. It was found that the liquidity position of MAHA-FPC is stable, net profitability to revenue from operation of the company has a fluctuating trend over the last six years. Overall, MAHA-FPC is in the growing phase of the business cycle thus, the company would increase the profitability in the coming years.

 
REFERENCES :
    1. Andelic, Slavica & Vesic, Tamara. (2017). The importance of financial analysis for business decision making., Finance, banking, insurance, Publisher: Faculty of business economics and entrepreneurship, pp.9-25
    2. Arena, M., Azzone, G. & Bengo, I. (2014). Performance Measurement for Social Enterprises. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 26 (2): 649-672.
    3. Altman, E. I. (2000). Predicting financial distress of companies: revisiting the Z-Score and ZETA® models. In Handbook of Research Methods and Applications in Empirical Finance, DOI: 10.4337/ 9780857936097.00027 (pp.428-456). Edward Elgar Publishing.
    4. Blank, S. (2013). Why the lean start-up changes everything. Harvard Business Review, 91 (5): 64-68.
    5. Chauhan, S. (2015). Producer companies in Madhya Pradesh: An evaluative study. International Journal of Recent Research Aspects, 2 (3): 66-77.
    6. Dees, J. G. (2001). The meaning of social entrepreneurship. Working Paper, Kauffman Center for Entrepreneurial Leadership. Available online at https://centers.fuqua.duke.edu/case/wp-content/uploads/sites/7/2015/03/ Article_Dees_MeaningofSocialEntrepreneurship_2001.pdf
    7. Dwivedi, Y. K. and Joshi, A. R. (2007) Producer company—a new generation farmers institution. Leisa India, pp. 16–17.
    8. Hadad, S. and Gauca, O. (2014). Social impact measurement in social entrepreneurial organizations. Management & Marketing. Challenges for the knowledge society, 9 (2): 119-136.
    9. Hassler, M. and Trebbin, A. (2012). Farmers’ producer companies in India- a new concept for collective action. Environment and Policy, 44 (2): 411 – 427
    10. Iyakaremye, A. (2015). Analysis of financial performance and financial risk in agricultural companies listed on the Nairobi security exchange. Nairobi: United States International University Africa.
    11. Kakati. S. (2017). A Study on the Financial Performance of Farmer Producer Companies with special reference to North East India. Amity journal of Agribusiness. 2 (1): 37-56.
    12. Luke, B. (2016). Measuring and Reporting on Social Performance: From Numbers and Narratives to a Useful Reporting Framework for Social Enterprises. Social and Environmental Accountability Journal, 36 (2): 103-123.
    13. McGill, R. and Sachs, D. (2013). The Fireflies next time: The rise of social entrepreneurship suggests a possible future for global capitalism. In R. McGill (Ed.), The art and science of delivery (Vol. 1, pp. 64-69). Retrieved from McKinsey on Society.
    14. Murray, E. V. (2008). Producer company model-current status and future outlook: Opportunities for bank finance. Financing Agriculture, 40: 18–26.
    15. Odalo, S. K. (2016). Liquidity and Financial Performance in Agricultural Firms listed in the Nairobi Securities Exchange in Kenya. International Journal of Business and Social Science, 7 (7): 57-65.
    16. Perrini, F., Vurro, C. and Contanzo, L. A. (2010). A process-based view of social entrepreneurship: From opportunity identification to scaling-up social change in the case of San Patrignano. Entrepreneurship & Regional Development, 22 (6): 515-534.
    17. Shah, T. (2016). Farmer Producer Companies. Economic & Political Weekly, 51 (8): 15.
    18. Singh, S. (2008) Producer companies as new generation cooperatives. Economic and Political Weekly, 43: 22–24.
    19. Social Enterprise UK (2014). Impact Report 2013-14. Available online at https://www. socialenterprise.org.uk/wp-content/uploads/2019/05/ seuk_social_impact_report_2013-1.pdf
    20. Trebbin, A. (2014). Linking small farmers to modern retail through producer organizations: Experiences with producer companies in India. Food policy, 45: 35–44.
    21. Tripathy, K. K. and Wadkar, S. K. (2021). Social Enterprises: An Instrument for Sustainable Development. Agricultural Extension in South Asia (AESA) Blog 157 – August 2021.
    22. Tripathy, K. K., Deshpande, D. V., Wadkar, S. K., and Lokhande, J. (2020). Catalyzing Development through Collectives: Status and Issues of Cooperatives, SHGs and Farmer Producers Organizations in India. VAMNICOM Working Paper Number 3, 2 (1): 1 – 42.
 
KEYWORDS :

FPOs, Liquidity, Profitability, Returns on Capital Employed, MAHA-FPC.