Chapter 1- EXECUTIVE SUMMARY Introduction Investor Relation (IR) is primarily concerned with ensuring that the right company

information is released in a fair and trustworthy manner to the current and prospective target audiences of the company. These are its shareholders and stakeholders, its investors (retail and institutional, domestic and foreign), as well as the analysts and media who comment on its performance. The types of information involved are strategic, financial and legal. IR matters because it is the means by which companies can target their desired shareholders; keep their current and prospective shareholders informed about long-range strategy and short and medium term events that affect it and the resulting associated risk and reward profile of the company. Equally important, a good IR programme links the drivers of corporate value to the risk appetite of its owners, by reflecting on the one hand what shareholders value about the company, and explaining to them on the other hand what the drivers of company value are and how these create the desired risk profile. In both cases the effect is to allow shareholders to make informed decisions about owning the company while enabling the company to choose its shareholders by matching their time horizons and risk appetite to the risk profile of the company and its activities. To do this well, effective IR must be more than the occasional press release when a new product is launched, a dividend is declared, or a senior executive moves. Companies should not rely on the AGM, the annual report and quarterly results only as the main means of communicating with shareholders. Investor relations must be strategic and proactive as opposed to tactical and reactive giving shareholders sound reasons to buy and hold stock or not depending on their individual risk appetites and time horizons. Given that effective IR policies incorporate the desires and expectations of target audiences it is obvious that IR must be a two-way process that involves the board on the one hand and the audience on the other and this must be managed well by the IR function.

Learning During the period of summer internship project as an investment relation I did analysis of the company. This analysis gives brief idea about company. This data can further be used for fundamental analysis. This data provides consolidated information of companys financial statement to the investors. In this way investor relation play a key role in building up a strategic relation between company and investors i.e. analyst, investors from public .Further analysis of company helps to figure out problem child, stars, cash cows and dogs of the company. In this way company can indentifies the actual problem and concentrate to overcome the same. At same time (IR) deals with IPOs Initial Public Offer by giving ideas of promoters of company to investors.

Chapter 2- COMPANY OVERVIEW PRANA PR Ltd. Company Profile Prana, as it means, signifies the positive energy in every atom. Energy, which is reflected in the reputation of every business enterprise irrespective of its size, stature and relevance in the overall socio- economic environment. at Prana PR believe that it is communications is that vital, life sustaining positive energy for businesses. Through core competency of public relations, Prana Public Relations attempts to add value to clients businesses through

advising and creating communication solutions that are critical, timely and comprehensive For us, public relations go beyond media relations. For us, the challenge is to get the businesses ready to manage the entire ecosystem. Born at the turn of the millennium at Mumbai, Prana Public Relations is happy to share its eleven years track record of delivering measurable, focused and timely solutions in public relations successfully. believe that the best way for successful PR delivery is to work as a part of the clients team. And while try to be the Prana for everything do, there are a welldevised, professionally tested systems & processes at work. Systems that ensure that the every single opportunity is exploited and processes that ensure that every action is accounted for and every delivery is measured as an ongoing activity. Prana Public Relations is also differentiated in the way approach public relations as a tool in building equity for corporate entities, products, service and issues. At Prana Public Relations, take a holistic view of options available and recommend a precise role that public relations would play in the process. experience pool brings in a 360o of communications spectrum, thus ensuring a precise, scientific and aggressive approach in work as a single-window offering. group companies Raka Advertising & Marketing Pvt. Ltd. and Patrakars India provide us the support in advertising and content creations. Company have evolved from people - a team of discerning, thought-men who prefer intense, stimulating work to just another day at office.

Beyond corporate reputation management, investor relations, IPO communications and issue management, Prana Public Relations has successfully delivered effective PR solutions building and managing reputation across focus industry verticals such as financial services, education, healthcare, technology, manufacturing, logistics, lifestyle products & services, etc specific successes in delivering best results in concept promotion, issue management and crisis management have been acknowledged by clients, peers and other stakeholders. Prana Public Relations nationwide reach of 10 branch offices enables to offer national and international solutions in the truest sense. Branches are present at Mumbai, Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Kochi, Pune, Indore, Ahmedabad and Chandigarh.

Management To live and express values through most important asset, people, for whom company provide the best professional development, work environment and career opportunities available in the global public relations industry. employees have strong institutional knowledge of issues, trends and opportunities across industries. Their experiences enhance clients credibility and trust. Sushil Bahal - Managing Director Sushil Bahal has been in the business of communication for the past 23 years. A 360o communications practitioner, Sushil has been hands-on in advertising, public relations, direct marketing, sales promotions and direct sales. In each of these practices, he has managed complex tasks as individual assignments and also as integrated solutions provider. In the BFSI segments, Sushil has managed communications for six banks, three brokerage houses, three mutual funds, over 75 IPO and debt mandates, dozens of M&A transactions, stock/commodity exchanges, primary dealers, investment banks, insurance products, asset management companies, etc. Although Sushil Bahal has been primarily associated with financial services communications cnd corporate reputation management assignments, he has worked for products and services from health sciences, manufacturing, hospitality and ITeS domain also. Through associate firm Raka Advertising & Marketing Pvt. Ltd., Sushil is well represented in Advertising Agencies Association of India, Indian Broadcasting Foundation (IBF) etc. Suresh Shah Group Account Director Suresh Shah has over 35 years of experience in business jnalism and public relations and was Business Editor at The Economic Times before he moved in to public relations about five years back. He is one of the most respected names in the jnalist beats covering corporate, business, markets and financial coverage. In PR, he has been associated with some of the most complex assignments in recent times.

Practice Areas Prana Public Relations offer expertise in a wide range of practice areas. Each practice area is focused on a specific communications need and meeting specific business goals. Bringing in specialists from a particular industry, company are able to build teams best suited to address any client situation. core capabilities are in people, their expertise and domain experience. commitment and contribution manifests itself as maximum value for clients in everything it do. Specifically, practice areas include:

Corporate Reputation Management Financial Services PR Concept Marketing PR Product Launch and Brand Building PR Investor Relations Public Affairs Issues Management Crisis PR

Though Prana Public Relations has successfully delivered on PR challenges for clients as diverse as Art Auction Houses, Stock Exchanges, Investment Banking Companies, Technology Companies, Logistics Companies, Fitness Centers, Hotels & Restaurants etc company deals with believe that core focus remains in the following industry verticals

Banking & Financial Services Capital Markets Health Care Information Technology Infrastructure Education Public Affairs and Crisis Communications

Approach At Prana Public Relations, partners in business and aim to know organization. Company use PR as a strategic reputation management and marketing communications tool and interact with all companys stake holders knowledgably to add value at each stage. Company help anticipate changes to help make y communications continuously relevant. The entire effort is based on a meticulous process framework and is designed for result-oriented and measurable delivery. Prana defines scope of work at the beginning of any relationship and ensure that service offering renders itself to the overall objective and strategy established for PR communications.

Scope of work Opportunity Analysis

Conduct ongoing research, both internally and externally, to identify communication opportunities and issues

Strategic consultancy and planning

Provide consultancy on all aspects of clients communication needs, all issues that impact corporate reputation and corporate identity Develop a PR events calendar of all predictable events offering PR opportunities

Message development and synergizing

Formulate key messages for various target constituencies and at various touch points and synergize the same across the organization

Media Relations

Assist in developing all communications to be disseminated to the media including information kits, press releases, backgrounders, features etc.

Identifying and maintaining lists of media professionals relevant to client on a national basis

Assist in managing one-on-one relationships with all media professionals relevant to client, including correspondents of International media based in India.

Assist the client in managing all media events like press conferences, analyst meets, select briefing as well as disseminating information on a national basis

Assist the client in managing media relations during potential crisis situation, if any Assist the client in placing their senior management personnel and key spokespersons as industry spokespersons and domain experts in the media on a continuous basis.

Media Monitoring

Provide the company with all coverage related to the client on a national basis. Prana PR provides a special media tracking service. The details of the service are captured below:

The coverage will be monitored from top 10 cities and delivered to the company in electronic format through the internet on the same working day by the afternoon

The coverage is stored in archive for future reference. The database of the coverage will have search facilities to retrieve old stories of interest based on newspaper, correspondent, city, edition or any key word.

Non-media programs conceptualization

Work with corporate communications to conceptualize non-media events to directly communicate cluster specific messages to target audiences

Media Customer constituencies Thought leaders Opinion influencers

Opinion research

Provide feedback on media perceptions twice a year. A dipstick study will be conducted twice a year amongst the relevant media based in Mumbai and atleast two other important cities Account management reporting & evaluation

Daily media reports and advisory service Weekly meetings to discuss WIP Weekly Status reports Monthly report of activities Coverage docket of monthly clippings

Monthly & Quarterly reviews Sound documentation and archiving practices

Services PRANAs services follow a unique semiotic approach to strategic thinking, measurable deliverables and superior customer satisfaction. It began by understanding the outcome. With a clear sense of purpose, It leverage in-depth research capabilities to develop strategies that map to the needs of key constituencies, such as consumers, employees, policymakers, regulators and investors. PRANA is a performance-driven company that consistently exceeds client expectations. From the start, companyfocus on outcomes, and track progress against the fulfillment of key business objectives.

ertising ns

List of Clients: 1. Sanwaria Agro Oils Ltd. (Edible Oil sector) 2. Aanjaneya Lifecare Ltd. (Pharma sector) 3. Sudar Garments Ltd. (Textile sector)

1.

Sanwaria Agro Oils Ltd. - Mkt Cap - *1190Cr.

Sanwaria Agro Oils Ltd (SAOL) (BSE Code: 519260) is part of the Sanwaria Group, which has also has a presence in various sectors such as, energy (Sanwaria Energy Limited), infrastructure (Sanwaria Infrastructure Limited), edible oils (Sanwaria Agro Oils Limited) and foods (Sanwaria Foods Limited). SAOL is Indias premium edible oil brand and is also into solvent extraction. The company has also launched edible oils in the brand name Sulabh, Narmada and Sanwaria. The company has set up a solvent extraction plant with the capacity of 200 Tones per day of soyabean in Itarsi. The company had a top line has been Rs.1562 crore, bottom line of Rs.31 crore for the financial year 2010-2011. A Bhopal-based company - SAOL is a solvent extraction and refining company. It is primarily engaged in Soybean processing, Soy Oil & Soy Meal being its two main products. The company has also launched edible oils in the brand name Sulabh, Narmada and Sanwaria. The company has set up a solvent extraction plant with the capacity of 200 Tones per day of soyabean in Itarsi.

2.

Aanjaneya Lifecare Ltd: - Mkt Cap - *744Cr.

Aanjaneya Lifecare Limited is a vertically integrated company having state-of-the-art; WHO GMP approved facilities for manufacturing bulk drugs at Mahad and finished dosage forms at Pirungut near Pune. It is one of the largest contract manufacturers of codeine based cough syrups in India. The company exclusively manufactures the Codorex Brand of Zydus Cadilla and Codilite Brand of Tablets India Ltd. amongst others.

The company recently raised about Rs. 117 crore from its IPO and the funds are being used to built new capacities alongwith the refurbishing of Research & Development centre. The new facilities being created as part of CAPEX are using eco friendly, recyclable material and will be rated by LEEDS once completed, company sces informed. The Facilities being established will comply with the latest European & US guidelines. With new capacities to be

added in next 6 to 9 months the company will be expanding operations in emerging markets of South East Asia, Africa & South & Central America and its domestic operation inbranded generics segment.

3.

Sudar Garments Ltd.: - Mkt Cap - *97Cr.

The promoter, Mr. Murugan M Thevar has been associated with the apparel manufacturing business since 1992 and today the Company has installed capacity of 20 Lacs Pieces of garments and proposes further expansion. The company is presently manufacturing under its own brand name Glory to Glory and will be launching two more brands namely St. Paul and Majesty along with setting up of retail outlets and also brand building exercise.

From the above list of clients the company which I received as my final project is Sanwaria Agro Oils Ltd. This company is solvent ofextract soy oil. The details of company are as follows.

Sanwaria Agro Oils Lt

INDEX DETAIL
Scrip ID Scrip Code Group/Index B / SMLCAP Face value SENSEX NIFTY 1.00 17282.79 5250.30 SANWARIA 519260

SCRIP
Weekly 35.50/31.55 Monthly 35.50/29.55 52 Weeks 41.55/9.80 H/L

SHAREHOLDING PATTERN Promoter 70.05 FII DII H/L Others 29.95

H/L

INDUSTRY Edible Oil

Company Profile A Bhopal-based company - Sanwaria Agro Oils Ltd. (SAOL) is a solvent extraction and refining company. It is primarily engaged in Soybean processing, Soy Oil & Soy Meal being its two main products. The company has set up a solvent extraction plant with the capacity of 3025 Tones per day of Soya bean in Itarsi. Products of the Company The company has launched edible oils in the brand name

Sulabh Narmada Sanwaria

SAOL being an integrated agro food processor has following lines of businesses: Seed processing and Solvent Extraction Producing and selling Soy meal (De-oiled cakes) in domestic and International markets. Refining of crude Soy oil to produce refined Soy oil; Distribution and sale of bulk and branded Soy oil; Producing and selling by-products like Soy Lecithin and Acid Oil; Trading of other agro commodities like Wheat, Gram & Pulses

Management

Managing Director Chairman

Mr. Anil Agrawal Mr. Ram Narayan Agrawal

Year of establishment Date of Listing

22nd April, 1991 27th March 2001

SWOT ANALYSIS - Sanwaria Agro Oils Ltd

Strength

-Company is diversified in various segments. -It is based on solvent of extraction of soy- oil. -It is situated in Madhya Pradesh which is the largest state who produces soybean. -It is listed in BSE & NSE.

Weakness

-Company owns more debt fund then equity fund. -Its share prices are very volatile.

Opportunities

-It can cover Indian Market through its brand Sulabh, Narmada & Sanwaria. -It raise its revenue from other segments like food grains, power generation and refined oils.

Threats

-Its biggest threat are peer group.

CHAPTER 3-TITLE OF THE PROJECT Company Analysis of Sanwaria Agro Oils Ltd. Company analysis is detail study of company based on following factors:

Industry analysis Product line analysis Financial statement analysis Comparable company analysis

Industry analysis

Industry analysis is important because each industry is different, and using one different approach to analysis is problems. Factors of affecting the companys growth. Factors which affects companys slowdown.

Product line analysis

Product line analysis A good way for a company to try to expand its business is by adding to its existing product line. This is because people are more likely to purchase products from brands with which they are already familiar .A group of related products manufactured by a single company.

Financial statement analysis

Financial statement analysis is an evaluative method of determining the past, current and projected performance of a company. Several techniques are commonly used as part of financial statement analysis including horizontal analysis, which compares two or more years of financial in percentage form; vertical analysis, where each category of accounts on the balance sheet is shown as a percentage of the total account; and ratio analysis, which calculates statistical relationship between data. In research we have concentrated on vertical analysis.

Comparable company analysis

Comparable company analysis starts with establishing a peer group consisting of similar companies of similar size in the same industry and region. Investors are then able to use online resces to compare a particular company to its competitors. This information can be used to determine a company's enterprise value and to calculate other ratios used to compare a company to those in its peer group of company. Thus company analysis helps in this way to understand the growth plans, financial stability and position as compared to peer groups.

CHAPTER 4 - RESEARCH OBJECTIVES

To determine the financial position of the company To analysis past , present and future performance of share price of the company build a strategic relation between company and investors To project the future growth of the company

CHAPTER 5-RESEARCH METHODOLOGY Source of data

There are two types of data collection primary and secondary data collection. In primary data collection we gather our data by our own. Whereas, secondary data is collected by some other person. For company analysis we take the secondary data. The data used is financial statements, annual reports provided by company. The survey report done on the industry. Details provided on BSE and NSE website.

RESEARCH METHODS USED

Ratio analysis Competition analysis

Ratio analysis

A tool used by individuals to conduct a quantitative analysis of information in a company's financial statements. Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to judge the performance of the company. Ratio analysis is predominately used by proponents of fundamental

Competition analysis

In competition analysis is done within industry comparison is made by the peer groups through its share price , earning per share and price to earning ratio .The reasons affecting the industry . The performance related to it and its movement affected by index.

CHAPTER 6-DATA ANALYSIS & INTERPRETATION Industry Analysis Edible oil Industry Global Soya Bean Production V/s Consumption

Soya bean is one of the major oilseed crop in the world. Soya bean accounts 57% of total oil seed in the world. 85% of worlds Soya bean production is crushed for oil out of which oil recovery is 17% to 18% and Soya meal forms around 80% In the international market Soya bean oil accounts for more then 22% of the total trade volume of the edible oils in the world. The contribution of Soya oil in worlds total oil production has reached up to 25% during last few years. USDA estimates, India is the third largest consumer of edible oils (after China and the EU-countries); and will account for 11% of global edible oil demand and 16% of global imports in OY 2010/11F.

The demand for edible oils in India has shown a compounded growth of 4.5% over the last 10 years and is estimated at 16.2 million tones for Oil Year (OY) 2010-11.

India plays an important role in the global edible oil market, accounting for approx. 10.2% share of consumption; 7% share of oilseed production; 5% share of edible oil production and 13.6% share of world edible oil imports for OY 200910.

World Soya bean Consumption (in. %)

Argentina US India Europe China Others 0% 5% 10% 15% 20% 25% 30% 35% 40%

Chart I

World Soya Production (in % )

India Argentina US China Malaysia Indonesia Others 0% 5% 10% 15% 20% 25% 30%

chart II

Indias annual per capita consumption has shown a steadily increasing trend from 4 kg in the 1970s to 10.2 kg in the late 1990s to current levels of ~13.5 - 14 kg. However, it still ranks well below the world average of around 24 kg, thereby signifying the high growth potential of the industry.

The annual production of soybean in India is more then 9 million tons. Madhya Pradesh (Soya bean bowl) contributes to around 75% of the total Indian production. Production of soy meal in India is on an increasing level with a production figure of 5 million tons. Soya oil is considered as one of the most important edible oil in the India. Indian production of soy oil is around 1 million tons annually and it accounts for about 18% of total consumption of oils in the country.

Soya bean Production in India

Madhya Pradesh Maharashtra Rajasthan Karnataka Andhra Pradesh Chhatisgarh Other States

0%

10%

20%

30%

40%

50%

60%

Chart III

Product Line Analysis Expansion Plans- Sanwaria Agro Oils Ltd.

The company has ventured into Basmati Rice and Chakki fresh Aata - Fortified Aata, a specialized quality parameter. Target of the Company is to increase its revenue from its branded and Value added portfolio. It is now planning for high value added Soya products like Soya fl,Soya Bari (nuggets), vegetable oil refinery etc. SAOL currently manufactures High Protein Soy Meal and under the current expansion programme proposes to set up manufacturing capacities for Soy Fl and Textures Vegetable Protein (TVP).

Further it intends to leverage its manufacturing experience to manufacture Soy milk & Soy based beverages. The company imports crude palm oil, RBD palmolein (refined palm oil), soy crude de gummed oil, crude sunflower oil and exporting De oiled cake, corn, maze, cotton et

Financial analysis Ratio Analysis

Current Ratio Current Ratio = Current assets Current liabilities The Current asset of the company is more than 1:2. This indicates that current assets can meet the current liabilities. Quick Ratio

QuickRatio = Current assets- Inventories Current liabilities

Quick ratio of the company came down as compared to previous year. This indicates a company has brought in process for further production. Debt to Equity Ratio

Debt to equity ratio has increased from previous year.This indicates that company lending more finance from market to meets it operating expenses. Still the ratio is below 2.00.This indicates company is not in position of bankruptcy.

Debt to Equity Ratio = Debt Equity (Net worth)

Debt Ratio

The debt ratio indicates that the debtors fund contribute more to the total capital employed, as compared to previous year debtor have increased.

Debt Ratio = Debt (Debt+ Equity)

Interest Coverage Ratio

Interest Coverage Ratio = Earnings before interest and taxes Interest

This ratio indicates the interest expense beard from earning before tax and interest. The company leverage ratio is above 1.5% .This means company is able to generate revenue and meets its expenses. Inventory Turnover Ratio

Inventory turnover Ratio = Cost of Goods sold Average Inventory

Inventory turnover ratio has come down slightly. This indicates that company has reduced the ineffective purchases. Return on Equity

Return on Equity = Profit after tax Equity ( Net Worth) Return on equity indicates the return on equity capital invested by equity shareholders. In short it indicates the profitability percentage. Therefore, it indicates profitability of the company has come down. It has come down by less than half as compared to previous year.

Days Holding of Inventory

Days Holding of Inventory= No. of days in a year Inventory turnover

Credit transaction regarding purchase and sale of inventory is managed within1 month period.

Debtor Turnover Ratio

Debtor Turnover Ratio = Credit sales or Net sales Average or closing debtors
Debtor turnover ratio indicates the credit sales of the companys from total turnover. Credit sales have contributes less than 50% of total sales.

Net Current asset Turnover Ratio

Net Current asset Turnover Ratio =

Net Sales Net Current asset

Net current asset used in generation of total turnover is around 3%. Therefore this indicates that company is not making any investment for short time but for long time. Net Fixed Asset Turnover Ratio Net Fixed asset Turnover Ratio= Net Sales Net Fixed Assets

Net Fixed asset Turnover Ratio has increased as compared to previous year. This that fixed asset as contributed more effectively as compared to previous year. This means company is employing the assets for long term run. Net Margin Ratio Net Margin Ratio= PAT Net Sales As Net margin ratio of the company has decrease nearly by 50% as compared to previous year as a result share price became stagnant.

Earning per Share

Earning per Share= PAT No. of equity shares

EPS is basically used to calculate the profit shared to each share. So basically it indicates the profitability of the company. Here the EPS has gradually fell down .Hence this indicates profitability of company is decreasing

P/E Ratio. P/E Ratio=Market value per share

EPS P/E ratio had grown as compared to previous year. This indicates that the company is expecting growth in future

Competition Analysis

28th June 2012

Edible oil sector traded low All three stocks ended low as compared to previous day

29th June 2012

Commodity prices of edible oil were high. Day trading was seen good in Sanwaria Agro Oils Ltd.

3rd July 2012

Among all three stocks Gokul Refoil & Ruchi Soya oils traded in green whereas sanwaria traded in in red. The main reason behind average performance of edible oil stock would be the revenue loss in cooking gas which would increase the price of cooking gas .as cooking gas and edible oil have direct relation the socks traded at low.

4th July 2012

Among all three stocks Gokul Refoil & Ruchi Soya oils traded in green whereas sanwaria traded in in red. The main reason behind average performance of edible oil stock would be the revenue loss in cooking gas which would increase the price of cooking gas .as cooking gas and edible oil have direct relation the socks traded at low

5th July 2012

Sensex movements & volatile currency affecting stocks .Only Ruchi Soya traded high whereas other two low.

Capital Employed

1,200
(In Rs.Crores)

1,000 800 600 400 200 0

De- Oiled cakes Soya Crude Oils Soya Refined oils
chart IV

2011 2010

From the above figure, we can conclude, capital employed has increased by Rs. 3500 Lakhs. The maximum capital is employed in De-oiled cakes followed by Soya crude oil and then by soya refined oil.
Results
1,200 1,000
Rs. in Crores

800 600 400 200 0

Refined Oil (Gross) Crude Oil Soya Meal Food Grains & Others Miscellaneous Items Income From Pow er (Gross) Generation

2011 2010

chart V

Results of company shows that although company in various segments of soya oil extraction and refineries with power generation. The maximum higher results are achieved soya meal and other food grains production. All segments have contributed higher than previous year.

Revenue Mix
Soya Meal Food Grains & Others Refined Oil (Gross) Crude Oil Miscellaneous Items (Gross) Income From Power Generation
Chart VI

16.5% 67.5% 10.8% 2.9% 2.0% 0.3%

From revenue earned from different sectors Soya meal contributes highest by 67.5%. followed by food grains by 16.5% .Then comes refined oil by10.8%.Minimum revenues earned from crude oil & power generation.

EBITDA
800 700 600 500 400 300 200 100 0 2007-08 2008-09 Year 2009-10 2010-11

Rs. in million

Chart VII

EBITDA is earning before interest, tax, depreciation and amortization.SAOL is having the lowest EBITDA in 2010-11. It is around Rs. 441 Crore.

Net income
1400 1200

Rs.in Million

1000 800 600 400 200 0 2007-08 2008-09 Year 2009-10 2010-11

Chart VIII

Net Income of company is gradually rising from year 2007-08 to year 2010-11.In the year 2010-11 net income is highest above Rs 1200 crore.

Net worth ratio

40% 35% 30% 25% 20% 15% 10% 5% 0% 2007-08 2008-09 Year
Chart IX

(in Percentage)

2009-10

2010-11

Net worth ratio is presented in %. It shows realtion between shareholders capital with net income earned.

Debt to Equity Ratio

2.5 2.0

Ratio

1.5 1.0 0.5 0.0 2007-08 2008-09 Ye ar

Chart X

2009-10

2010-11

Debt to equity ratio has increased from previous year .This indicates that company lending more finance from market to meets it operating expenses. Still the ratio is below 2.00.This indicates company is not in position of bankruptcy

Performance Analysis

Performance Analysis PE(in %) INDUSTRY.PE EPS(Rs) FII HOLDING(Rs in 4,608 1,269 3.34 1 0.0061% 11.50% 18.82 12.13 1.73

million) BV( Rs in million) M.CAP(Rs. in Crores) FV (in Rs.) Dividend yield CAGR

Ratio Table
Particulars Liquidity Ratio Current Ratio Quick Ratio Solvency Ratio Debt To Equity ratio Debt Ratio Interest Coverage Ratio Turnover Ratio Inventory ratio Days Holding of 23.7 0.042 8516 asset 2.98 3.3 21.2 0.039 9169 turnover 15.2 16.95 1.95 0.7 8.3 1.443 0.6 16.6 9.7 3.9 8.9 8.4 2011 2010

inventory Debtor Turnover Ratio Collection Period Net Current

Turnover Ratio Fixed Asset Turnover Ratio Profitability Ratio Net Margin Ratio Return on Equity Equity Ratio EPS

12.3

8.7

0.02 81.58%

0.03 204.29%

0.82

2.04

P/E Ratio

37.8

15.08

Competition Analysis Table

28th June 2012

Sanwaria Agro Oils Ltd. Ruchi Soya Industries Ltd Gokul Refoil &Solvent LTD.

Open Close P/E EPS Market Capital/Free Float (In Cr.)

31.25 31 182.3529412 0.17

Open Close P/E EPS Market Capital/Free

92 88.2 94.83870968 0.93

Open Close P/E EPS Market Capital/Free

73.25 73.25 244.1666667 0.3

1,082 / 324

Float (InCr.) Pervious

2,940 / 1,323

Float (In Cr.)

966 / 338

Pervious day Close /Open 30.65 / 31.25

day Close/Open 91.25 / 92.00

Pervious day Close /Open 73.50 / 73.90

29th June 2012

Sanwaria Agro Oils Ltd. Ruchi Soya Industries Ltd Gokul Refoil &Solvent LTD.

Open Close P/E EPS

31 30.5 179.4117647 0.17

Open Close P/E EPS

89.7 89.5 96.23655914 0.93

Open Close P/E EPS Market

74.9 75 250 0.3

Market Capital/Free Float (In Cr.) 1,120 / 336

Market Capital/Free Float (In Cr.) 2,968 / 1,335

Capital/Free Float Cr.) Pervious (In 989 / 346

Pervious day Close /Open 32.35 / 33.70

Pervious day Close /Open 88.15 / 88.40

day /Open

Close 74.10 / 74.9

3 July 2012 Sanwaria Agro Oils Ltd. Ruchi Soya Industries Ltd Gokul Refoil &Solvent LTD.

rd

Open Close P/E EPS Market Capital/Free Float (In Cr.) Pervious day Close /Open

32.5 31.5 185.2941176 0.17

Open Close P/E EPS Market Capital/Free

90.1 89.85 96.61290323 0.93

Open Close P/E EPS Market Capital/Free Float

76 76.95 256.5 0.3

1,096 / 328

Float (In Cr.) Pervious day

2,995 / 1,347

(In Cr.) Pervious day

1,014 / 355

34.20 / 31.00

Close /Open

89.35 / 89.8

Close /Open

76.25 / 76.00

4th July 2012

Sanwaria Agro Oils Ltd. Ruchi Soya Industries Ltd Gokul Refoil &Solvent LTD.

Open Close P/E EPS Market Capital/Free Float (In Cr.) Previous day

32.5 31.5 185.2941176 0.17

Open Close P/E EPS Market Capital/Free

90.1 89.85 96.61290323 0.93

Open Close P/E EPS Market Capital/Free

76 76.95 256.5 0.3

1,096 / 328

Float (In Cr.) Previous day

2,995 / 1,347

Float (In Cr.) Previous day

1,014 / 355 76.25 76.00 /

Close /Open

34.20 / 31.00

Close /Open

89.35 / 89.8

Close /Open

5th July2012
Sanwaria Agro Oils Ltd. Ruchi Soya Industries Ltd Gokul Refoil &Solvent LTD.

Open Close P/E EPS Market Capital/Free Float (In Cr.) Pervious day Close /Open

32.1 33.05 194.4117647 0.17

Open Close P/E EPS Market Capital/Free

90.5 88.8 95.48387097 0.93

Open Close P/E EPS Market Capital/Free Float

75.45 76.3 251.5 0.3

1,150 / 345

Float (In Cr.) Pervious day

2,960 / 1,332

(In Cr.) Pervious day

1,006 / 352

32.30 / 32.10

Close /Open

89.40 / 90.60

Close /Open

75.85 / 76.5

Stock performance

The stock performance of Sanwaria Agro Oils Ltd is out performing The stock movement is out performing with the Sensex movement The movements of stock remains different from the BSE oil &gas sector movement This means company is dealing at great amount of risk.

CHAPTER -7 FINDINGS & RECOMMENDATIONS FINDINGS

The company Sanwaria Agro Oils Ltd. is basically a solvent extracts of soy oil. Its revenue model is basically depends upon the sales made by the company in a financial year. Hence it is aprofit and loss driven company. Therefore decrease in sales will result in low performance of company.

In the financial year 2010-11 government of India passed a law that edible oil can sold in packaging .This has affected companys revenue because its main generation of income in revenue is from soy oil extraction which was sold in unpacked .

Therefore in financial year 2010-2011 company has recorded least growth in net income, EBITDA and margins. Beside ,the companys debt went high as compared to previous financial years. This all reason made company s slow growth.

RECOMMENDATIONS

To overcome from this situation company should try raise its sales of soy oils. It should reduce its dependency on any one segment and try to find out the way to earn revenue from other segments.

To make sound financial position of the company it should reduce debt funds in net worth.

All this measures will also help in bringing stable share prices

CHAPTER 8- LIMITATIONS OF THE STUDY

Company analysis require deep study of company .Hence, consumes time. It requires to be updated with daily. Its share price should be tracked daily without any failure. It is done on the basis of past data which cannot tell its manipulaton.

CHAPTER 9- IMPLICATION OF THE PROJECT FOR THE COMPANY

Sanwaria groups is diversified in various segments. They are food grains, refined oils, power generation, extraction of soya oil, and others. But the key contributor in revenue generation is given by soy oil. So, it should also concentrate in other segments like power generation, food grains, and refined oils.

This will help them to bring stability in business model as all sectors are diversified and cannot be in crisis at one time. The company analysis will help them to understand the financial position .The position in market as compared to their competitors. Thus to strengthen their strengths and overcome weakness.

.This analysis can help to understand investors emotion towards the stock. In this way this analysis will provide better market to the company and it will give consolidated view regarding the needs of consumers.

Chapter10 -SCOPE FOR THE FUTURE STUDY Company analysis should be done at the end of every financial year. This analysis helps to know which segments and areas are outstanding and contributing highest in growth of the company. Then which are the areas that carry high potential and needs to be brushed up. Followed by the part which intakes least capacities but contributes high in companys revenue. At the end we can come to know the area which consumes high and gives no or least return

This analysis will be further useful for fundamental analysis of company. This data also proves useful to compare the peer group. This analysis will growth potential of the sector and companies in it in future.

Chapter 11 -CONCLUSION Sanwaria Agro oils Ltd. is an upcoming company. It persist high amount of potential. It is diversified into various segments with quality products and brand. Hence it has a larger scope as it is diversified in. Due to its diversification its risk also get reduce. Its P/e ratio is matching the sectors P/e ratio. This all will contribute in high growth of company in future. Prana PR ltd has played vital role in building corporate relation of Sanwaria Agro Oils Ltd with analyst. It has made effort to bring real picture of company to investors. As an Investment Relation I have tried to build strategic relation between investor and company. Also provide analysis of their company which would help them in internal as well as external Management of company.

Chapter12 -ANNEXTURE

Quarterly Results (In Lakhs) Particulars Sales Turnover Other Incomes EBITDA Net Profit Mar-12 33794.76 677.34 1762.63 607.61 Dec-11 32848.64 297.19 805.84 408.14 Mar-11 39362.25 1970.04 2009.38 533.84

Consolidated Balance Sheet( Rs. in Billion) Particulars Sources of Fund Share Capital Reserve& Surplus Loan Funds 17400 2005 4253 17400 1712 2722 March-11 Mar-10

Application Of Fund Fixed Assets 1,269 1,277

Net current assets Investments Cash and Bank Balance

525 62.7 127

335 12 82.4

Profit Loss Statement ( Rs. in Million)

Particulars Net Sales EBITDA PAT 2009-10 15,625 441 132 2010-11 11,168 630 110

Cashflow Statement(Rs. In lakhs) PARTICULARS Net Profit before Tax and extraordinary Items Operating Activities Investing Activities Financing Activities NET Increase /Decrease In Cash Opening Cash Closing Cash 2010 383191 -7030.82 -1327.37 -1268.05 6971.51 1269.15 8240.66 2011 576424 -5219.29 -23.05 -1990 3206.24 8240.66 5034.42

Dividend History (Rs.) 25-Sep-10 25-Sep-09 3-Jul-09 26-Aug-08 22-Sep-07 0.2 0.15 0.1 0.3 0.4

Bonus History 8-Apr-11 30-Sep-08 14-Oct-05 20-Sep-02 1:01 1:01 1:04 1:05

Peer competition

Name

Last Price

Market Cap. (Rs. cr.)

Sales Turnover 25,951.54 1,420.43 704.54 6,486.78 2,962.30 218.19 2,114.09 5,625.04 817.73 1,090.47 1,615.21 543.35 341.35 280.87

Net Profit

Total Assets

Ruchi Soya Sanwaria Agro Agro Tech Foods Gokul Refoils Ruchinfra AVT Natural Guj Amb Exports KS Oils Rasoya Protein Murli Anik Industries KSE Raj Oil Mills Kriti Industrie

90.35 32.50 460.50 82.00 19.25 38.15 19.95 5.75 20.90 18.30 34.00 240.00 11.55 7.00

3,012.63 1,131.16 1,122.20 1,081.54 395.09 290.48 276.01 264.03 238.11 131.96 94.36 76.80 41.59 34.72

124.87 18.47 36.14 -106.99 9.64 50.41 49.70 -333.95 12.99 -301.26 12.92 10.45 -0.39 5.58

5,623.64 643.31 208.66 822.92 507.82 123.58 738.75 3,578.42 406.15 1,448.37 474.07 64.51 361.88 68.35

Consumption of soyabean in India Countries Brazil China Argentina Europe India US Others consumption 4% 20% 2% 17% 11% 8% 38%

Productionof soyabean in India Countries Indonesia Malaysia China Europe US Argentina India Others Production 18% 15% 13% 12% 7% 5% 5% 25%

States Producing soya bean in India States Madhya Pradesh Maharashtra Rajasthan Andhra Pradesh Karnataka Chhatisgarh Other States Production 53% 34% 8% 1% 2% 1% 1%

Table IV Capital Employed Products De- Oiled cakes Soya Crude Oils Soya Refined oils 2009-10 105,302.18 4,563.26 16876.17 2010-11 75,953.95 4,863.43 13,419.32

Table V Results Refined Oil (Gross) Crude Oil Soya Meal Food Grains & Others Miscellaneous Items (Gross) Income From Power Generation 2010 1,687,617,156 456,325,883 10,530,217,983 2,572,696,994 317,421,450 40,632,695 2011 1,341,932,119 486,342,886 7,595,395,434 1,185,702,971 517,564,427 60,952,181

Table VI Revenue Pattern segments Refined Oil (Gross) Crude Oil Soya Meal Food Grains & Others Miscellaneous Items (Gross) Income From Power Generation Revenue 1,687,617,156 456,325,883 10,530,217,983 2,572,696,994 317,421,450 40,632,695

EBITDA Year 2007-08 2008-09 2009-10 2010-11 Amount 676.16 628.04 629.17 441

Net income Year 2007-08 2008-09 2009-10 2010-11 Amount 616.07 894.10 1,098 1,318

Net worth ratio Year 2007-08 2008-09 2009-10 2010-11 Amount 35% 25% 20% 13%

Debt To equity ratio Year 2007-08 2008-09 2009-10 2010-11 Amount 1.5 1.43 1.43 1.95

Chapter 13-BIBLIOGRAPHY/REFERENCES Data provided by company

Financial statements Annual reports

Data collected from website www.bseindia.com www.nseindia.com www.oilassociation.com