SUMMER TRAINING PROJECT

REPORT ON

“FINANCIAL ANALYSIS OF FOOD CORPORATION OF INDIA”

Submitted Toward the Partial Fulfilment of the Requirement for the

Award of the Degree of
Master of Business Administration (F&C)

Under the Guidance of

DR. SHRUTI AURORA
(MENTOR)

SUBMITTED TO SUBMITTEDBY:
DR. VASUDHA KUMAR ARYAN PATEL
MBA (F&C) III SEMESTER
ROLL NO: - 2210019025267
Batch - 2022-24

INSTITUTE OF MANAGEMENT SCIENCES

UNIVERSITY OF LUCKNOW (NEW CAMPUS)
LUCKNOW.
i
 CANDIDATE DECLARATION

I, ARYAN PATEL student of UNIVERSITY OF LUCKNOW, LUCKNOW

hereby declare that the work incorporated in the present report entitled
“FINANCIAL AND CONTROL FOOD CORPORATION OF INDIA” is my
own work and is original. This work (in part or in full) has not been submitted to
any other institution for the award of a degree. I have properly referenced the
material collected from secondary sources wherever required. I solely own the
responsibility for the originality of the entire content of this report.

ARYAN PATEL
MBA (F&C) 3rd Semester
Roll No: - 2210019025267

ii
 ACKNOWLEDGEMENT

Like most effective endeavours, preparing this project was a collaborative effort. I owe a
great debt to many individuals who helped me in successful completion of this project. I
would not have completed this journey without the help, guidance and constant support and
cooperation of certain people who acted as guides and friends along the way. I would like
to express my deepest and sincere thanks to DR. SHRUTI AURORA, Master of Business
Administration (MBA) for their invaluable guidance and help. It would never have been
possible for me to take this project to this level without their innovative ideas and their
relentless support and encouragement.

I express my gratitude to the FOOD CORPORATION OF INDIA for giving me an

opportunity to work with them and make the best out of internship. My heartful gratitude
goes to the staff and employees at FOOD CORPORATION OF INDIA for cooperating
with me and guiding me throughout the 45 days of my internship period.

In this connection I would like to express my gratitude to my parents and friends who were
constant source of inspiration during the project report. At last, I thank the Almighty for
giving me the power to complete this project successfully.

ARYAN PATEL
MBA (F&C) 3RD Semester
Roll No: - 2210019025267

iii
 TABLE OF CONTENT

SR.NO TOPICS PAGE NO.

1. INTRODUCTION 01-06
2. COMPANY PROFILE 07-19
3. OBJECTIVE OF THE STUDY 20
4. RISK ANALYSIS 21-23
6. DATA ANALYSIS 24-47
7. FINDINGS 48-49
8. SUGGESTIONS 50
9. CONCLUSIONS 51-52
10. BIBLIOGRAPHY 53
11. ANNEXURE 54

iv
 INTRODUCTION

Introduction

The Food Corporation of India was setup under the Food Corporation's Act 1964, in order to

fulfill following objects of the Food policy: -

 Effective price support operations for securing the interests of the farmers

 Distribution of food grains throughout the country for public distribution system.

 Maintaining satisfactory position of functional and buffer stocks of food grains to

ensure National Food Security

Since its commencement, FCI has played a significant part in India's success in

transubstantiating the extremity operation acquainted food security into a stable security

system.

In its 50 years’ service of the nation, FCI has played a significant role in India’s success in

transforming the crisis management-oriented food security into a stable security system.

 To provide farmers remunerative prices.

 To make food grains available at reasonable prices, particularly to vulnerable section

of the society.

 To maintain buffer stock as measure of Food security.

 To intervene in market for price stabilization.

1
Citizen Charter of FCI

Citizen’s Charter is a document which represents a systematic effort to focus on the

commitment of the organization towards it’s citizen’s /clients in respect of standard of

services, information, choice and consultation, accessibility, grievance redressal, courtesy and

value for money.

Objectives of Charter

\The main objective of the Citizen’s Charter is to inform the public about the mandate of the

company, how one can get in touch with its officials, what to expect by way of services and

how to seek a remedy if something goes wrong. The Corporation is committed to

continuouslystrivetowardsimprovingitsresponsibilitiesandbusinessaffairstomakeapositiveimp

actonthesociety. However, regular, untiring and persistent efforts are required to bring about

attitudinal changes and the corporation is striving hard to develop simple and transparent

procedures and to uphold the principles of corporate governance.

General Information about FCI

FCI is Public Sector Undertaking, under the Deptt. of Food & Public Distribution, M/o

CAF&PD, set up in 1965 under the Food Corporations Act, 1964 against the backdrop of

major shortage of grains especially, wheat with the primary duty to undertake purchase,

store,move/transport,distributeandsellfoodgrainsandotherfoodstuffs.Simultaneously,Agricultu

ral Prices Commission was created in 1965 to recommend remunerative prices to farmers.

2
FCI is mandated with three basic objectives:

(1) To provide effective price support to farmers;(2

(2) To procure and supply grains to PDS for distributing subsidized staples to

economically vulnerable sections of society; and

(3) Keep a strategic reserve to stabilize markets for basic food grains.

1.3 Organizational Set-Up of FCI

Food Corporation of India coordinates its functions through a country-wide network of

offices with Headquarters at New Delhi with five Zonal Offices, twenty-five Regional

Offices and 170 District Offices under its control.

VISION

To provide remunerative prices to farmers

To play a significant role in India’s success in transforming the crisis management-oriented

food security into a stable security system to ensure availability, accessibility and

affordability of food grains to all people at all times so that no one, nowhere and at no time

should go hungry.

MISSION

i) Ensuring food security of nation by maintaining satisfactory level of operational

buffer stocks of food grains.

ii) Distribution of food grains throughout the country for Public Distribution System.

3
 iii) EffectivePriceSupportOperationsforsafeguardingtheinterestoffarmers.

What is Food Security?

Food security, widely defined by FAO, has basically four pillars:

(1) Availability: food should be available insufficient quantity at all times and at all

places.

(2) Affordability: food should be affordable, i.e., people should have economic access

(ample income) to buy food.

(3) Absorption: food should be safe and nutritious that body can absorb for a healthy life;

and finally.

(4) Stability: food system should be reasonably stable, as high volatility in food systems

impacts adversely not only the poor but also endangers the stability of political and social

systems.

Major Activities undertaken by FCI

Procurement

The Central Government extends price support for procurement of wheat, paddy and coarse

grains through the FCI and State Agencies. All the food grains conforming to the prescribed

specifications are procured by the public procurement agencies at the Minimum Support

Price (MSP) plus incentive bonus announced, if any.

Procurement is undertaken both in DCP & Non-DCP mode.

4
 Under Decentralized Procurement Scheme (DCP), introduced in 1997-98, food grains

are procured and distributed by the State Governments themselves. The designated States

procure store and issue food grains under TPDS and other welfare schemes of the

Government of India. The decentralized system of procurement was introduced to enhance

the efficiency of procurement for PDS and to encourage procurement in non-traditional States

as well as to save on transit losses and costs.

Before the start of each procurement season, Govt.of India announces uniform specification

for quality of wheat, paddy, rice and coarse grains.

Quality Control Division of FCI ensures procurement of food grains from procurement

centers strictly in accordance with Govt. of India's uniform quality specifications.

As decided by the CCEA, FCI has also been nominated as an additional nodal Agency for

procurement of Pulses and Oilseeds.TheDepartment of Agriculture and Co-0operation is

drawing up guidelines / MoU for FCI to procure the said items.

FCI procured 15200.74 MT of Chana and 4335.57MT of Masur during RMS 2016-17.

Targeted Public Distribution System

FCI meets the requirements of TPDS through grains procured which are issued at Central

Issue Price fixed by GOI to fulfill the objective of helping the economically vulnerable

sections of society. FCI delivers food grains to State Govt./ State Agencies from its base

depots for distribution by the latter through Fair Price Shops. The role of FCI becomes even

more important in the backdrop of National Food Security Act, 2013, that commits to

distribute more than 61MMT through targeted public distribution system (TPDS) and other

welfare schemes (OWS), at highly subsidized prices.

5
Stocking Norms

The buffer stocks are required to meet the food grain requirement for allocations made by

Government of India for TPDS and OWS; ensure food security during the periods when

production is short of normal demand during bad agricultural years; and stabilize prices

during period of production shortfall through open market sales.

Storage Management

Existing storage capacity with FCI and State agencies for central pool stocks as on30.06.2016

is 816.24 LMT, of which 164.81 LMT is under Cover and Plinth (CAP). To reduce the

dependence on CAP storage and to harness the benefits of private participation, Government

has introduced “Private Entrepreneur Guarantee Scheme” (PEG. Out of this 134.83 lakh MT

has been constructed up to 30.06.2016.

Movement

In order to ensure availability of food grains for TPDS and OWS,and to maintain reasonable

levels of buffer stocks at various strategic locations throughout the country, FCI undertakes

transportation of food grain (wheat and rice) from surplus States to the deficit States and also

within the States by rail, road and riverine modes. About 90% of all India movement is

undertaken by railways and rest by road and waterways. On an average of 25 lakh bags

(50KG) of food grains are transported every day from the procuring areas to the consuming

areas, covering an average distance of 1500 Kilometer.

6
 COMPANY PROFILE

Food Corporation of India

Type Statutory Body

Industry Food security

Founded 14 January 1965

(58 years ago)

Founder Government of India

Headquarters New Delhi

India

Number of locations 5 (Zonal Offices)

Area served Throughout India

Key people Ashok Kumar Meena, IAS

7
 (Chairman & MD)

Products Food Grains

Services Ensuring Food security of India

Owner Ministry of Consumer Affairs, Food and Public

Distribution, Government of India

Number of employees 21,847 (as on 31 March 2019)

Website fci.gov.in

The Food Corporation of India (FCI) is a statutory body created and run by the Government
of India. It is under the ownership of Ministry of Consumer Affairs, Food and Public
Distribution, formed by the enactment of Food Corporation Act, 1964[2] by the Parliament of
India. Its top official is designated as Chairman and Managing Director, who is a central
government civil servant of the IAS cadre. It was set up in 1965 with its initial headquarters
at Chennai. Later this was moved to New Delhi. It also has regional centers in the capitals of
the states.

Mandate
The Food Corporation of India was set up on 14 January 1965, having its first district office
at Thanjavur and headquarters at Chennai, under the Food Corporations Act 1964[3] to
implement the National Food Policy's objectives.

Statistics
It is one of the largest corporations in India started by the government, and one of the largest
supply chain management companies in Asia.[4] It operates through 5 zonal and 26 regional
offices. Each year, the Food Corporation of India purchases roughly 15 to 20 percent of
India's wheat output and 12 to 15 percent of its rice output. The purchases are made from the

8
farmers at the rates declared by the Government of India. This rate is called the MSP
(Minimum Support Price).

Operations
There were 21,847 employees working in FCI as of 2019.[6] Its storage facilities which are
located at Hapur in Uttar Pradesh, Malur in Karnataka and Elavur in Tamil Nadu.

Food Corporation of India

The Food Corporation of India was setup under the Food Corporation's Act 1964 , in order to
fulfill following objectives of the Food Policy:

 Effective price support operations for safeguarding the interests of the farmers.
 Distribution of foodgrains throughout the country for public distribution system.
 Maintaining satisfactory level of operational and buffer stocks of foodgrains to ensure
National Food Security
 Since its inception, FCI has played a significant role in India's success in transforming
the crisis management oriented food security into a stable security system.

The Food Corporation of India (FCI) is a statutory body under the Ministry of Consumer
Affairs, Food and Public Distribution.

It was set up in 1965 following the enactment of the Food Corporation Act, 1964 with the
objective of fulfilling various aspects of the National Food Policy at the time.

This article will give details about the Food Corporation of India within the context of
the IAS Exam

Overview of the Food Corporation of India

The Food Corporation of India is one of the largest corporations started by the government of
India and likely one of the largest supply chain management in India. Initially headquartered
in Chennai, it was moved to New Delhi.

Roughly 15 to 20% of India’s wheat output is purchased by the FCI along with 12 to 15% of
the total rice output. The purchases are made as per the Minimum Support Price and no
restriction on procurement is placed as long as the criteria under Fair Average Quality is met.

9
Food Corporation of India recently ventured into procurement of pulses in various regions
from the crop year 2015–16, and pulses are procured at market rate, which is a sharp
deviation from its traditional minimum support price-based procurement system.

Further details about the Food Corporation of India are given in the table below:

Facts about Food Corporation of India

Industry Food Security

Founded 14 January 1965

Chairman and Shri Sanjiv Kumar, IAS

Managing Director

Products Mainly Wheat and Rice

Parent Entity Department of Food and Public Distribution, Ministry of

Consumer Affairs, Food and Public Distribution

Services Ensuring Food security of India

Objectives of the FCI

The Objectives of the Food Corporation of India is as follows:

 Proper price support for to protect the interests of poor farmers

 Effective distribution of foodgrains through a Public Distribution Systems (PDS)

 Maintenance of operational and buffer stocks of food grains to ensure continued

supply of essential food supply.

 Regulation of market price for foodgrains so that the population can get them at an
affordable price.

10
Food Corporation of India:-

Organizational Structure of the FCI

The Food Corporation of India is led by a Chairman and it operates through its many depots
located across the country. The depot reports to a divisional office, which is headed by an
Assistant General Manager.

These managers are in charge of various sections such as sales, contracts, procurement,
quality control, operations account,

The Divisional Officer reports to the Regional Office. A General Manager is in charge of the
Regional Office and they are usually selected from the ranks of the Indian Administration
Services, Indian Police Services or from the All India Services under deputation.

The officers inform the General Manager on the status of their respective sections.

The FCI is divided into the following 5 zones:

1. North

2. South

3. East

4. West

5. North-East

They all have their own zonal offices. Under the Zonal offices are the regional offices which
are headed by an Executive Director usually selected from the Indian Administrative Service
or Indian Revenue Service.

The flowchart below elaborates the structure of the FCI in a simplistic way

11
(Source: Food Corporation of India Official Website:https://fci.gov.in/organisation-
structure.php?view=str)

Latest Developments about the Food Corporation of India

Due to many shortfalls of the FCI, a High Level Committee (HLC) under Shanta Kumar
made several recommendations on how the corporation could be restructured based on factors
of procurement, storage and distribution. They are as follows:

 Procurement: The committee recommended that all procurement made by the FCI
should be handed over to the states that gained experience in this matter and created
the necessary infrastructure for the same

 Negotiable warehouse receipt system : A warehouse receipt system should be made

negotiable as this can help farmers deposit their produce at the registered warehouses.
They can then sell it at a price suitable for them and at the same time reduce the cost
of storage for the government.

 Revision of the MSP Policy: The HLC recommends that pulses and oilseeds should
also be in the MSP category. At present MSP for 23 commodities were announced
with wheat and rice given priority, but the MSP was applicable in only selected states.
The present arrangement creates a disproportionate price structure that favours wheat
and rice.

 HLC had recommended that the government should relook at the coverage (67% of
the population) under the NFSA as it’s on the ‘higher’ side.

In the Union Budget 2021 it was proposed that the food subsidy allocated to the Food
Corporation of India be revised to Rs 3,44,077 crore from the original subsidy amount of Rs

12
77,983 crore allocated in the 2020 Union Budget. The revised allocation was made due to the
government’s decision to pay the FCI’s rising loans and return to budgetary transfers to fund
the food subsidy bill.

FCI Salary 2023, Salary Structure, Job Profile & Allowances

FCI Salary 2023 has been discussed here along with the salary structure and job profile. Get
the details of FCI Salary 2023 and the allowances.
yogesh purohit

August 26, 2023

Table of Contents
FCI Salary 2023: The Food Corporation of India offers one of the best salaries for various
posts including FCI Manager, FCI Assistant Manager, etc. The FCI Salary 2023 varies for
different posts offered by the recruitment authority. The FCI offers attractive candidates’
salaries every year and a stable salary structure.

The candidates applying for the FCI 2023 must go through the details of the FCI Salary 2023.
Here, we have discussed the details of FCI Salary 2023, the Salary structure for several posts,
and Job profiles. The FCI 2023 Notification is yet to be released and the candidates must go
through the details of the recruitment authority and process before the application process.

FCI Salary 2023

FCI Salary 2023: The Food Corporation of India offers handsome FCI Salary 2023 to
candidates appointed to various posts. The FCI Salary 2023 varies from Rs 9,300 to Rs
1,40,000 for various posts offered by the recruitment authority. The salary for FCI
Recruitment 2023 includes several perks and allowances. The candidates will enjoy the FCI
Salary 2023 along with medical allowances, dearness allowances, transport allowances, etc.

The candidates can get the post-wise FCI Salary 2023 details from this article. The FCI
Recruitment 2023 offers several posts including Assistant Grade III (Accounts), Typist
(Hindi), Assistant Grade III (Depot), etc.

13
FCI Salary 2023 Overview

The candidates can go through the details of the FCI Salary 2023 from this article before
applying for the offered posts. The details of the recruitment process for FCI Recruitment
2023 have been mentioned in the table given below.

FCI Salary 2023 Overview

Recruitment Authority Food Corporation of India

Exam FCI Exam 2023

Post Various Post

Vacancy To be Announced

Category Govt Jobs

Notification To be Released

Application Dates To be Announced

Mode of Application Online

Selection Post Varies According to Posts

Official Website fci.gov.in

FCI 2023 Salary Structure

The FCI Salary Structure has been discussed in the table given below. The FCI Salary 2023
has been classified into the city classes for the interested candidates. Level 1, Level 2, and

14
Level 3 indicate the Metropolitan cities, Large Urban areas, and Towns or Urban
communities respectively.

FCI 2023 Salary Structure

Level 1/ Class A Level 2/Class B Level 3/ Class C

Post
City City City

Assistant Grade III

22213 21283 20353
(General)

Assistant Grade III

22213 21283 20353
(Accounts)

Assistant Grade III (Depot) 22213 21283 20353

Assistant Grade
22213 21283 20353
(Technical)

Typist (Hindi) 22213 21283 20353

FCI Post Wise Salary 2023

The candidates can get the details of post-wise FCI Salary 2023 from the table given below.
The candidates can apply for one post out of the various posts offered by the recruitment
authority.

FCI Salary 2023 Post Wise

15
 Post Salary

Manager Rs 40,000 to Rs 1,40,000

Assistant Grade II (Hindi) Rs 9,900 to Rs 25,530

Assistant Grade III (General) Rs 9,300 to Rs 22,940

Assistant Grade III (Accounts) Rs 9,300 to Rs 22,940

Assistant Grade III (Depot) Rs 9,300 to Rs 22,940

Typist (Hindi) Rs 9,300 to Rs 22,940

FCI Salary 2023 Perks and Allowances

The candidates will get to enjoy several perks and allowances along with the FCI Salary
2023. The FCI Salary 2023 Perks and Allowances have been mentioned below. The
candidates selected for the post of Junior Engineer (Civil/Electrical/Mechanical),
Stenographer Grade II, Typist (Hindi), and Assistant Grade III
(General/Accounts/Technical/Depot) will be able to enjoy these allowances from the
recruitment authority.

 Medical Allowances: The candidates will be given a certain amount for any medical
emergency on a monthly or quarterly basis.
 Dearness Allowances
 Transport Allowances: The travel cost of the candidates during duty hours will be
compensated by the recruitment authority.

16
FCI Salary 2023 Job Profile

The candidates can go through the Job Profile for the offered posts by the recruitment

authority from the table given below. The Job profile for FCI Recruitment 2023 includes the

roles and responsibilities the candidates will take up after qualifying and getting appointed.

The post-wise Job Profile has been mentioned below.

FCI Assistant Grade 3 Job Profile

The candidates can go through the FCI Salary 2023 details and the FCI Assistant Grade 3 Job

Profile from the table given below.

FCI Assistant Grade 3 Job Profile

Pay Scale Rs 9,300 to Rs 22,940

Job Profile AG-III (General):

Administrator-related work.

Take care of PV, IT, SL/TL.

AG-III (Accounts):

To take care of the Financial Account Package (FAP).

AG-III (Depot):

17
 Hands-on work

To keep a climate where the capacity loss of grains is very less

FCI Typists Job Profile

The candidates can go through the FCI Salary 2023 details and the FCI Typist Job Profile

from the table given below.

FCI Typist Job Profile

Pay Scale Rs 9,300 to Rs 22,940

 Drafts records, reports, coordinate data, and so forth

Job Profile  General office obligations

 Blunder free report

FCI Stenographer Job Profile

The candidates can go through the FCI Salary 2023 details and the FCI Stenographer Job

Profile from the table given below.

FCI Stenographer Job Profile

18
 Pay Scale Rs 9,900 to Rs 25,530

 Records speed composing of messages, reports, and different constituents

Job Profile  Interpretation Duties

 Administrative Duties

FCI Watchman Job Profile

The candidates can go through the FCI Salary 2023 details and the FCI Watchman Job

Profile from the table given below.

FCI Watchman Job Profile

Pay Scale RS 8,100 to Rs 18,070

 Security of individuals and property of the association

Job Profile  Performs regulatory undertakings

 Examine the property for any dubious exercises

19
 OBJECTIVE OF THE STUDY

OBJECTIVE

 To understand the analytical framework of project financing and to analyze

the existing project appraisal mechanism at FCI

 To study the project financing of Food Corporation of India

 To familiarize with the interrelationship among various aspects of project

finance.

 To understand the importance of project appraisal in sharpening the ability of

the FCI to identify investment opportunities of the project undertaken.

 To study the assessment of the various aspects of investment proposition to

arrive at a financing decision

Need for the study

 To have practical knowledge and experience towards project financing.

 To sharpen the ability of identification of various attractive investment

opportunities.

 To value the options embedded in the project

 To familiarize with the inter relationship among the various aspects of project

appraisal.

 To evaluate the project in order to give suggestions to the FCI

20
 RISK ANALYSIS

Risk Factor Mitigation

Company proposes to use its existing as well as

Marketing Risk
Brand recognition to sell its products.

The states where the cement plants are being set

Employee Risk up has adequate skilled and unskilled human

resources.

According to CRISIL research the industry is

expected to add capacities equivalent to 50 MTPA

Off take risk/ Market Risk in the next 2-3 years. The company is confident of

leveraging on present brand recognition as well as

contacts to secure firm clients for the product.

Company plans to set up captive power plant of

Power availability risk 50 MW at each of the 3 locations, which will

supplement the power requirement.

The plants are being located adjacent to the Lime

Availability and Transportation of
Stone mines (major Raw Material), hence there
Lime stone
will be logistic advantage.

21
 Adequate contingency provision of around 10%

Cost Over run has been provided in the project cost. This will be

useful for to pay extra cost

Company has proposed to hire reputed engineering

consultants and contractors for the execution of the

Construction Risk/ Time over run project. More over it is also proposed to have a

risk well chosen team of experienced persons and in

house task force to co-ordinate the implementation

of the project

Company is already into cement business by

setting up 2.14 MTPA cement plant along with a

Operating Risk
30 MW CPP at Chandrapur, which is likely to be

commenced in this year, in the schedule time.

The promoters are well experienced businessmen,

who have shown commitment to the company and

have successfully implemented many projects in

Management Risk the past. It is also expected that they will show the

same commitments and zeal to this projects as

well. Suitable stipulation in the sanction term not

to sell stake of promoter share mitigate this risk.

Lenders are stipulating for 19.66% upfront equity

22
 from the promoters. Considering the past record of

the promoters, no difficulty is involved in the tie

Funding Risk
up of debt funds for the project. Also the internal

accruals of the company are considered adequate

to part finance the project.

Company does not face any problem in obtaining

Environmental Risk
the clearance.

23
 DATA ANALYSIS AND INTERPRETATION
Data analysis is a process of inspecting, cleansing, transforming, and modeling data with the
goal of discovering useful information, informing conclusions, and supporting decision-
making. Data analysis has multiple facets and approaches, encompassing diverse techniques
under a variety of names, and is used in different business, science, and social science
domains. In today’s business world, data analysis plays a role in making decisions more
scientific and helping businesses operate more effectively. Although many groups,
organizations, and experts have different ways to approach data analysis, most of them can be
distilled into a one-size-fits-all definition. Data analysis is the process of cleaning, changing,
and processing raw data, and extracting actionable, relevant information that helps businesses
make informed decisions. The procedure helps reduce the risks inherent in decision making
by providing useful insights and statistics, often presented in charts, images, tables, and
graphs.

Balance sheet

As on 31 March, 2019-2023

(Rs. In crore)

BALANCE SHEET MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

OF FOOD
CORPORATION
OF INDIA (in Rs.
Cr.)

12 months 12 months 12 months 12 months 12 months

EQUITIES AND
LIABILITIES

SHAREHOLDER'S
FUNDS

Equity Share Capital 1,198.84 333.11 229.41 204.50 167.54

24
TOTAL SHARE 1,198.84 333.11 229.41 204.50 167.54
CAPITAL

Revaluation Reserve 902.18 663.28 663.28 679.74 0.00

Reserves and Surplus 14,463.84 9,849.46 11,819.26 10,481.64 10,316.94

Total Reserves and 15,366.02 10,512.74 12,482.53 11,161.38 10,316.94

Surplus

TOTAL 16,564.86 10,845.85 12,711.95 11,365.88 10,484.48

SHAREHOLDERS
FUNDS

Deposits 184,567.84 183,315.95 220,559.6 205,170.84 199,345.82

2

Borrowings 8,394.26 22,171.08 6,468.17 13,112.19 10,414.90

Other Liabilities and 4,050.89 5,558.37 8,151.32 5,214.70 5,747.82

Provisions

TOTAL CAPITAL 213,577.85 221,891.26 247,891.0 234,863.62 225,993.02

AND LIABILITIES 5

ASSETS

Cash and Balances 9,661.07 11,140.15 17,496.63 10,087.21 10,148.93

with Reserve FCI of
India

Balances with FCIs 2,907.97 177.48 7,553.32 5,093.98 2,589.97

Money at Call and
Short Notice

Investments 59,979.20 70,349.76 64,072.98 63,280.63 63,412.28

Advances 121,251.21 119,868.84 140,356.7 140,322.24 145,066.04

9

Fixed Assets 1,421.85 1,229.21 1,290.01 1,277.13 526.37

25
Other Assets 18,356.56 19,125.82 17,121.31 14,802.41 4,249.43

TOTAL ASSETS 213,577.85 221,891.26 247,891.0 234,863.62 225,993.02

5

OTHER
ADDITIONAL
INFORMATION

Number of Branches 2,432.00 2,440.00 2,517.00 2,440.00 2,298.00

Number of 18,935.00 19,419.00 19,667.00 19,569.00 19,210.00

Employees

Capital Adequacy 12.00 9.00 11.00 11.00 11.00

Ratios (%)

KEY
PERFORMANCE
INDICATORS

Tier 1 (%) 11.00 7.00 9.00 8.00 8.00

Tier 2 (%) 2.00 2.00 2.00 3.00 3.00

ASSETS QUALITY

Gross NPA 20,723.68 22,213.44 17,045.22 14,544.25 7,106.67

Gross NPA (%) 15.00 17.00 12.00 10.00 5.00

Net NPA 6,926.64 14,077.02 11,692.18 9,160.14 4,464.98

Net NPA (%) 6.00 8.00 8.00 7.00 3.00

Net NPA To 6.00 8.00 8.00 7.00 3.00

Advances (%)

CONTINGENT
LIABILITIES,
COMMITMENTS

26
 Bills for Collection 13,747.31 13,893.40 17,304.90 25,905.72 24,809.92

Contingent 62,625.63 0.00 81,531.24 69,697.40 87,755.79

Liabilities

Current Ratio = current assets/current liabilities

Figure 1 showing current ratio

CURRENT RATIO
0.64

0.62

0.6

0.58

0.56 CURRENTRATIO

0.54

0.52

0.5

0.48 2019 2020 2021 2022 2023

27
Liquid Ratio = liquid assets/current assets

Table .2 showing liquid ratio

YEARS LIQUIDRATIO

2019 5064.28/18701.74 = 0.27:1

2020 5107.99/21538.35 = 0.24:1

2021 6918.31/24218.95 = 0.29:1

2022 6190.51/22940.81=0.27:1

2023 6627.7/25810.82 = 0.26:1

The following table shows liquid ratio. Generally, liquid ratio of 1:1 is considered as
satisfactory. This means that liquid assets are just equal to the current liabilities. For this
company the past five years show a less than liquid ratio, when compared to the satisfactory
ratio. It further means that, the company is not able to pay off its current liabilities.

28
Figure .2 showing liquid ratio

LIQUID RATIO
0.35

0.3

0.25 LIQUIDRATIO

0.1

0.05
2019 2020 2021 2022 2023
2019 2020 2021 2022 2023

Solvency Ratio (long term solvency ratio)

Debt-equity ratio = long term debt/share holders’ fund

Table. 4 showing debt-equity ratio

YEAR DEBT-EQUITYRATIO

2019 10599.96/23262.11 = 0.46:1

2020 13686.09/21162.61 = 0.65:1

2021 13155.91/20200.98 = 0.65:1

29
 2022 13914.74/22162.52 = 0.63:1

2023 14776.51/18387.65 = 0.80:1

The following table shows debt-equity ratio. The standard debt-equity ratio is 1:1. Here, the
company shows lower ratio for the past five years. It indicates that it is better for the
creditors. But this lower ratio is not a satisfactory ratio for the share holders’ as it indicates
the firm has not been able to use outsiders fund to manage their earnings.

Figure 4 showing debt-equity ratio

DEBT EQUITY RATIO

0.9

0.8

0.7

0.6
DEBTEQUITYRATIO
0.5

0.4

0.3

0.2 2019 2020 2021 2022 2023

Proprietary ratio = share holders’ fund/total assets

Table 5 showing proprietary ratio

30
 YEAR PROPRIETARYRATIO

2019 23262.11/56678= 0.41:1

2020 21162.61/58878.28 = 0.36:1

2021 20200.98/59212.30 = 0.34:1

2022 22162.52/60909.63 = 0.36:1

2023 18387.65/62589.87 = 0.29:1

The following table shows proprietary ratio. A ratio of 0.5:1 or above is considered as
satisfactory. Here, the proprietary ratio is declined for the last five years which is a greater
risk to the creditors. In the share holders’ point of view, the lower ratio indicates the company
is highly dependent on creditors for its working capital. Therefore, the company’s financial
position for the last five years is not sound.

31
Figure. 5 showing proprietary ratio

PROPRIETARY RATIO
0.45

0.4

0.35

0.3

0.25 PROPRIETARYRATIO

0.2

0.15

0.1

0.05 2019 2020 2021 2022 2023

Solvency ratio = total assets/total debt

Total debt = long term borrowings + current liabilities

Table .6 showing solvency ratio

YEARS SOLVENCYRATIO

2019 56676.00/(10599.96+18701.74)=1.93:1

2020 58878.28/(13686.09+21538.00)=1.67:1

2021 59212.30/(13155.91+24218.95)=1.58:1

2022 60909.63/(13914.74+22940.81)=1.65:1
32
 2023 62589.87/(14776.51+25810.82)=1.54:1

The following table shows solvency ratio. If the ratio is more than one it is treated as
satisfactory. Here, the company shows higher ratio than the satisfactory ratio which indicates
the solvency and financial position are strong. And in the creditors’ point of view, it shows a
greater margin of safety to them.

Figure .6 showing solvency ratio

SOLVENCY RATIO
2.5

1.5

SOLVENCYRATIO
1

0.5

0
2018 2019 2020 2022 2023

33
Fixed assets to net worth ratio = fixed assets/total share
holders’ fund

Table. 7 showing fixed assets to net worth ratio

YEAR FIXEDASSETSTONETWORTHRATIO

2019 26762.34/23262.11 = 1.15:1

2020 28043.92/21162.61= 1.32:1

2021 26800.35/20200.98 = 1.33:1

2022 28573.42/22162.52 = 1.29:1

2023 29702.78/18387.65 = 1.62:1

The following table shows fixed assets to net worth ratio. The standard rate of the fixed assets
to net worth ratio is one. The company shows higher ratio for the past five years, when
compared to the standard ratio. A higher ratio indicates that the outsiders’ funds have been
used to acquire a part of fixed assets.

34
Figure 7 showing fixed assets to net worth ratio

2019 2020 2021 2022 2023

Fixed assets ratio = (fixed assets/long term funds)*100

Long term funds = share capital + reserves and surpluses

+ long term liabilities

Table .8 showing fixed assets ratio

YEARS FIXEDASSETSRATIO

2019 (26762.34/14712.15)*100=181%

2020 (28043.92/16177.32)*100=173%

2021 (26800.35/14822.32)*100=180%

2022 (28573.42/15806.30)*100=180%

35
 2023 (29702.78/18391.40)*100=161%

The following table shows fixed assets ratio. The standard percentage is 100%. Here the
company shows decreased mode for the past five years but it is higher when compared to the
standard rate. This indicates that the company’s fixed assets are more than long term funds.

That means fixed assets have been financed out of short term funds. So the company’s
financial position is not sound.

Figure 8 showing fixed assets ratio

FIXED ASSETS RATIO

185

180

175 FIXEDASSETSRATIO

160

155
20172019 2018
2020 2019
2021 2020
2022 20232021

36
Capital gearing ratio = fixed income bearing funds/equity
share holders’ funds

Table.9 showing capital gearing ratio

YEAR CAPITALGEARINGRATIO

2019 26762.34/10599.96 = 2.52:1

2020 28043.92/13686.09 = 2.05:1

2021 26800.35/13155.91 = 2.04:1

2022 28573.42/13914.74 = 2.05:1

2023 29702.78/14776.51 = 2.01:1

The following table shows capital gearing ratio. Here the company shows higher ratio than
the standard ratio which is 1:1. This indicates that the company is highly geared. That is, its
equity capital is less than its fixed income bearing funds which is not a risky element to the
equity share holders.

Figure .9 showing capital gearing ratio

37
 CAPITAL GEARING RATIO
3

2.5

CAPITALGEARINGRATIO

0.5
2019
2017 2020
2018 2021
2019 2022
2020 2023
2021

38
 Income statement

As on 31 march 2019-2023

(Rs in crore)

KEY MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

FINANCIAL
RATIOS OF
FOOD
CORPORAT
ION OF
INDIA (in
Rs. Cr.)

PER SHARE
RATIOS

Basic EPS -30.06 -35.30 5.17 -5.48 6.97

(Rs.)

Diluted EPS -30.06 -35.30 5.17 -5.48 6.97

(Rs.)

Cash EPS -10.27 -23.29 6.30 -3.61 8.44

(Rs.)

Book Value 26.13 61.14 105.04 104.51 125.16

[Excl. Reval
Reserve]/Shar
e (Rs.)

Book Value 27.63 65.12 110.82 111.16 125.16

[Incl. Reval
Reserve]/Shar
e (Rs.)

Dividend/ 0.00 0.00 0.00 0.00 1.40

Share (Rs.)

Operating 26.06 105.84 169.75 189.84 233.45

Revenue /

39
Share (Rs.)

Net -10.57 -24.34 4.89 -4.95 6.97

Profit/Share
(Rs.)

PER
EMPLOYEE
RATIOS

Interest 8,250,662.9 9,077,878.7 9,900,580.5 9,919,381.1 10,180,346.

Income/ 5 3 7 1 07
Employee
(Rs.)

Net Profit/ - - 285,354.15 -258,817.72 304,141.38

Employee 3,344,590.9 2,087,616.8
(Rs.) 2 2

Business/ 161,509,930 156,127,909 183,513,709 176,551,220 179,287,795

Employee .66 .26 .72 .91 .21
(Rs.)

PER
BRANCH
RATIOS

Interest 64,237,789. 72,247,265. 77,359,840. 79,554,249. 85,102,022.

Income/ 06 16 29 59 63
Branch (Rs.)

Net Profit/ - - 2,229,662.3 - 2,542,452.5

Branches 26,040,225. 16,614,520. 0 2,075,739.3 7
(Rs.) 74 90 4

Business/ 1,257,479,6 1,242,560,6 1,433,915,0 1,415,955,2 1,498,746,1

Branches 61.60 02.46 29.40 63.11 03.57
(Rs.)

KEY
PERFORM
ANCE
RATIOS

40
ROCE (%) 1.85 1.82 1.85 1.34 1.37

CASA (%) 31.59 29.52 26.46 22.13 19.72

Net Profit -40.53 -22.99 2.88 -2.60 2.98

Margin (%)

Operating -52.52 -36.11 -12.98 -11.54 -4.59

Profit Margin
(%)

Return on -2.96 -1.82 0.22 -0.21 0.25

Assets (%)

Return on -40.43 -39.81 4.65 -4.73 5.57

Equity /
Networth (%)

Net Interest 2.57 2.18 1.79 1.80 1.80

Margin (X)

Cost to 78.38 56.19 30.93 30.64 23.61

Income (%)

Interest 7.31 7.94 7.85 8.26 8.65

Income/Total
Assets (%)

Non-Interest 0.87 1.04 1.24 0.73 0.65

Income/Total
Assets (%)

Operating -3.84 -2.86 -1.02 -0.95 -0.39

Profit/Total
Assets (%)

Operating 1.63 1.44 1.25 1.22 1.11

Expenses/Tot
al Assets (%)

Interest 4.73 5.76 6.05 6.45 6.85

Expenses/Tot
al Assets (%)

41
 VALUATIO
N RATIOS

Enterprise 200,534.31 199,460.11 215,553.20 212,188.63 203,984.63

Value (Rs.
Cr)

EV Per Net 12.84 11.31 11.07 10.93 10.43

Sales (X)

Price To 1.10 0.50 0.50 0.37 0.42

Book Value
(X)

Price To 1.10 0.29 0.31 0.21 0.22

Sales (X)

Retention 100.00 100.00 100.00 100.00 79.92

Ratios (%)

Earnings -0.37 -0.79 0.09 -0.13 0.13

Yield (X)

Source : Dion Global Solutions Limited

Gross profit ratio = (gross profit/revenue from

operation)*100

Table. 10 showing gross profit ratio

YEAR GROSSPROFITRATIO

2019 (19240.33/42845.47)*100 =44.91%

2020 (17897.89/44316.34)*100 =40.39%

2021 (22466.51/58831.41)*100 =38.19%

42
 2022 (27863.96/69202.76)*100 =40.26%

2023 (18416.47/43928.17)*100 =41.92%

The following table shows gross profit ratio. There is no norm to interpret gross profit ratio.
Generally, a higher ratio is considered better. Here the company has highest ratio for the last
five years. So the gross profit ratio is satisfied.

Figure 10 showing gross profit ratio

GROSS PROFIT RATIO

46

44

GROSSPROFITRATIO

38

36
2019 2020 2021 2022 2023

Net profit ratio = (net profit after tax/revenue from

operation)*100

Table .11 showing net profit ratio

YEAR NETPROFITRATIO

43
 2019 (-62.30/42845.47)*100 = -0.15%

2020 (-2429.60/44316.34)*100 =-5.48%

2021 (-1034.85/58831.41)*100 =-1.76%

2022 (2023.60/69202.76*100=2.92%

2023 (-7289.68/43928.17)*100 =-16.59%

The following table shows net profit ratio. Generally, the ideal net profit ratio is 10%. The
company has failed to attain the standard ratio, which means the company is under pricing.
Also shows lower profitability and lower return to the share holders of the company. Net
profit ratio for the past five years shows negative value because of net loss for the mentioned
period except 2022-21.

Figure 11 showing net profit ratio\

NET PROFIT RATIO

5

0
2010 2020 2021 2022 2023

-5
NETPROFITRATIO
-10

-15

-20

44
 Operating cost ratio = (operating cost/revenue from
operation)*100

Table . 12 showing operating cost ratio

YEAR OPERATINGCOSTRATIO

2019 (3607.24/42845.47)*100=8.42%

2020 (4219.13/44316.34)*100 = 9.52%

2021 (4441.71/58831.41)*100 = 7.55%

2022 (4844.83/69202.76)*100 =7%

2023 (5214.55/43928.17)*100 =11.87%

The following table shows operating cost ratio. The ideal ratio of operating cost ratio is 60%
to 80%. Although, the lower it is, the better. Here, the company has lower ratio, which
indicates that the expenses are decreasing. This is a positive sign for the company.

Figure .12 showing operating cost ratio

45
OPERATING COST RATIO
14
12

Operating profit ratio = (operating profit/revenue

from operation)*100

Operating profit = Net profit before taxes + Non-operating

expenses – Non-operating incomes

Table 13 showing operating profit ratio

YEAR OPERATINGPROFITRATIO

2019 (29279.14/42845.47)*100 =68.34%

2020 (30866.95/44316.34)*100 =69.65%

2021 (42486.60/58831.41)*100 =72.22%

2022 (51109.47/69202.76)*100=73.85%

2023 (26143.74/43928.17)*100 =59.47%

The following table shows operating profit ratio. An operating profit ratio higher than 15% is
considered good. The company has higher ratio for the past five years. So it indicates that the
company is earning enough money from business operations to pay for all of the associated
costs involved in maintaining the business.

46
Figure 13 showing operating profit ratio

OPERATING PROFIT RATIO

80

70

60

50

40 OPERATINGPROFITRATIO
30

20

10

0
2019 2020 2021 2022 2023

FINDINGS

Balance sheet

Current Ratios: - It has been observed that current ratios of FCI is declining since last 5
years i.e., from 2019 to 2023 (0.63 to 0.55) . That means current asset of FCI is declining in
respect of its current liabilities which is the warning signal for the company that it is not able
to meet even the current liabilities of the company.

Liquid Ratios:- It has been observed that liquid ratios of FCI is has maintained is level since
last 5 years i.e., from 2019 to 2023 (0.310 to 0.309) . That means liquid asset of FCI is
maintaining its level in respect of its current liabilities.

47
Super Quick Ratio:- It’s has been observed that super quick ratio of the company is not
satisfactory because it is lower than the ideal ratio that is 0.5:1. And here the company shows
an increasing super quick ratio from 0.04:1 to 0.14:1.

Debt equity ratio:- The standard debt-equity ratio is 1:1. Here, the Company shows lower
ratio for the past five years. It indicates that it is better for the creditors. But this lower ratio is
not a satisfactory ratio for the share holders’ as it indicates the firm has not been able to use
outsiders fund to manage their earnings.

Proprietary Ratio:- A ratio of 0.5:1 or above is considered as satisfactory. Here, the

proprietary ratio is declined for the last five years which is a greater risk to the creditors. In
the share holders’ point of view, the lower ratio indicates the company is highly dependent on
creditors for its working capital. Therefore, the company’s financial position for the last five
years is not sound.

Solvency Ratio:- If the ratio is more than one it is treated as satisfactory. Here, the company
shows higher ratio than the satisfactory ratio which indicates the solvency and financial
position are strong. And in the creditors’ point of view, it shows a greater margin of safety to
them.

Fixed Asset to net worth Ratio:- The standard rate of the fixed assets to net worth ratio is
one. The company shows higher ratio for the past five years, when compared to the standard
ratio. A higher ratio indicates that the outsiders’ funds have been used to acquire a part of
fixed assets.

Fixed assets Ratio:- The standard percentage is 100%. Here the company shows decreased
mode for the past five years but it is higher when compared to the standard rate. This
indicates that the company’s fixed assets are more than long term funds. That means fixed
assets have been financed out of short term funds. So the company’s financial position is not
sound.

Capital Gearing Ratio:- Here the company shows higher ratio than the standard ratio which
is 1:1. This indicates that the company is highly geared. That is, its equity capital is less than
its fixed income bearing funds which is not a risky element to the equity share holders.
48
Income Statement

Gross profit Ratio:- There is no norm to interpret gross profit ratio. Generally, a higher ratio
is considered better. Here the company has highest ratio for the last five years. So the gross
profit ratio is satisfied.

Net Profit Ratio:- Generally, the ideal net profit ratio is 10%. The company has failed to
attain the standard ratio, which means the company is under pricing. Also shows lower
profitability and lower return to the share holders of the company. Net profit ratio for the past
five years shows negative value because of net loss for the mentioned period except 2022-21.

Operating Cost Ratio:- The ideal ratio of operating cost ratio is 60% to 80%. Although, the
lower it is, the better. Here, the company has lower ratio, which indicates that the expenses
are decreasing. This is a positive sign for the company.

Operating Profit Ratio:- An operating profit ratio higher than 15% is considered good. The
company has higher ratio for the past five years. So it indicates that the company is earning
enough money from business operations to pay for all of the associated costs involved in
maintaining the business.

SUGGESTIONS

i. Net Present Value of the project should be calculated. NPV is considered as one of the

best method for evaluating the capital investment projects. It is the difference between the

total present value of future cash inflows and the total present value of future cash

outflows. The project should be accepted if the NPV is positive. If the would have

calculated the NPV it would have made better appraisal. Because present value methods

always provides for correct ranking of investment projects.

ii. All critical assumption could be valued in the light of actual parameters for similar

understanding in the same industry and sensitivity analysis can be undertaken by varying

49
 these factors accordingly. Relative comparison with other players in the industry would

provide a better estimation and analysis of the project. It also helps to assess the impact of

adverse changes in the operating conditions of the project on its viability.

iii. In recent years, environmental concerns have assumed a greater deal of significance. The

FCI has to do Ecological analysis as the new project like drug and chemical industry

impact the Environment.

iv. The FCI should also consider the capability of management and its analytical skills of the

top management in the company.

v. The Costs, Profits are predicted only on the basis of the past trends. But same trend may

not continue in the future. They may vary depending upon the Economic conditions,

Business cycles, Government policies etc. So there should be a provision for all these

contingencies. This exercise is critical as it calls for a multi-dimensional analysis of the

project that is, a complete scanning of the project.

CONCLUSION

Financial analysis is analysis of financial statements of and enterprise. Financial statement

reorganized collection of data according to logical and constituent accounting procedures.

How ever financial statements in their traditional from giving historical data and information

are of little us to these who use them to draw certain conclusion.

Financial appraisal is scientific evaluation of profitability and financial strength of any

business concern. Financial appraisal techniques include ration analysis common size

50
analysis trend analysis, fund flow analysis etc. these techniques may be applied in the

financial appraisal of any entity and FCI Ltd.. Is no exception to it.

Financial analysis involves examining a company's financial statements and other relevant

information to evaluate its financial performance and make informed business decisions.

Conclusions drawn from financial analysis depend on the specific goals and context of the

analysis. Here are some common conclusions that can be drawn from financial analysis:

Profitability:

Positive Net Income: A company is generating profits.

Negative Net Income: The company is incurring losses.

Liquidity:

Current Ratio > 1: The company has sufficient short-term assets to cover its short-term

liabilities.

Current Ratio < 1: The company may face liquidity challenges.

Solvency:

Debt-to-Equity Ratio: A high ratio may indicate higher financial risk, while a low ratio

suggests lower risk.

It's important to note that financial analysis is a comprehensive process, and conclusions

should be drawn in the context of the industry, economic conditions, and the company's

specific circumstances. Additionally, trends and patterns over multiple periods are often more

51
informative than isolated data points. Financial analysis is dynamic, and regular updates are

necessary to ensure conclusions remain relevant.

52
 REFERENCES

 www.corporationFCI.com

 www.google.com

 www.finance.india.mart.com

 Journals & Brochure of Axis FCI

 Business and economics magazine

 Economics times

53
 ANNEXURE
Financial Results of the FCI
Table No 1: Financial Results of the FCI
(Rs in crores)

Particulars 31st March 31st March 31st March

2023 2022 2021

Interest Earned 2659.69 3367.53 4516.58

Other income 461.34 635.57 702.08

Total Income 3121.03 4003.10 5218.16

Interest Expended 1413.88 2054.46 3063.09

Operating Expenses 751.05 804.47 892.26

Total Expenditure 2164.93 2858.93 3955.35

Operating Profit before provision and 956.10 1144.17 1263.31

contingencies
Provisions (other than tax) 283.88 323.46 185.74

PBT 672.22 820.71 1077.57

Tax 229.22 304.57 327.16

PAT 443.00 516.19 750.41

Capital 143.44 143.44 143.44

3231.45 3622.01 4139.78
Reserves 32876.53 42356.89 55424.42
Deposits 23962.43 29949.65 39185.57
Advances 10651.99 14417.49 16512.38
Investment

54