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INTERNATIONAL JOURNAL OF ADVANCED RESEARCH IN COMMERCE, MANAGEMENT & SOCIAL SCIENCE (IJARCMSS) [ Vol. 6 | No. 3 (I) | July - September, 2023 ]

ANALYSIS OF LIQUIDITY OF SELECTED COMPANIES FROM THE AGRO-BASED MANUFACTURING SECTOR IN INDIA

CA (Dr.) Yukti Baljit Chandok & Prof. Vrinda Dave

Agro-based sector, which is one of the major upcoming industrial sectors in India, promotes integrated development of both agriculture and industry. It binds and strengthens industrial and agricultural linkages. This research is an attempt to study, analyse and compare the liquidity of companies from three major industries of Agro-based manufacturing sector in India namely: Textile, Paper and Sugar.  Four companies from each industry have been selected for financial analysis. Liquidity analysis on data collected from annual reports of the selected companies from Agro-based manufacturing sector in India have been studied for a ten-year period from 2008-09 to 2017-18. Mean, Standard deviation and Co-variance was calculated for three liquidity ratios namely: Current Ratio, Liquid Ratio and Cash & Bank to Current Liability Ratio. Industry wise ranks and overall ranks were given to companies on the basis of mean. Share of each industry in overall industry mean was also found out. Statistical t-test was applied to measure the difference of liquidity among the selected companies. It was concluded that in terms of liquidity, companies from Textile and Paper industry were doing better than companies from Sugar Industry. Companies from Sugar industry were facing financial crunch. Vardhman Ltd from Textile industry was at Rank 1 among all companies. Analysis of ratios indicates that there is a significant difference in the liquidity ratios among the textile and paper industry, among the sugar and paper industry, and among the textile and sugar industry too.

               

KEYWORDS: Agro-based Sector; Textile Industry; Paper Industry; Sugar Industry; Liquidity Analysis.

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