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About KRIBHCO
Krishak Bharati Cooperative Ltd. (KRIBHCO) is a Multi-state Cooperative Society
Bio fertilizer
Ammonia Argon
Financial Performance
(Rs in Crore) 2010-2011 Sales including Subsidies 3554.09 2009-2010 2597.07
Other revenue
Increase/(Decrease) in Stock Income Profit Before Tax Provision for Tax Profit after Tax
299.76
50.50 3904.35 230.26 29.71 200.55
304.78
(38.19) 2863.66 252.77 24.60 228.17
Net profits of Rs. 200.55 Crore in FY 2011. It invests a certain part of its surplus cash with banks, thus
Methodology
Analyzed the financial data of 26 public-sector banks, 10 private-sector banks and 11 State co-operative banks. Adopted a Risk Grading Model to grade the public-sector
Investment of Funds
The total investment was Rs. 4,015 crore. The following allocations were made: Public sector banks were allocated Rs. 2,810 crore - 69.99% of the total investment. Private sector banks were allocated Rs. 1,050 crore 26.15% of the total investment.
Co-operative banks were allocated Rs. 155 crore 3.86% of the total investment due to the tax benefits enjoyed by KRIBHCO under Section 80(P).
Conclusion
Hedging has not only helped KRIBHCO to reduce its losses, but has also enabled it to earn a considerable amount of income in terms of savings from hedging against transaction exposure of foreign exchange.
Its sound investment strategy of investing its surplus funds has enabled it to earn a huge return on the sum invested.