Report on Vnacs

1169 Words5 Pages
CASE STUDY 1 __________________________________________________________________________________ VARUN NAGAR AGRICULTURAL COOPERATIVE SOCIETY __________________________________________________________________________________ Report Submitted By: Arpan Maji PGP 2015-17 CAT ID: 4223318 Preparatory Course Section 2 PURPOSE AND SCOPE ________________________________________________________ The purpose of the report is to facilitate the decision-making process for Mr. Agarwal, Manager of Varun Nagar Agricultural Cooperative Society, on what he should do with the cash of Rs.5 Lakh available, whether he should pay the bank farmers, or buy 2000 bags of fertilizer, or sell the paddy now, or wait for 6 more months for better returns and try meeting the objectives of society. EXECUTIVE SUMMARY ________________________________________________________ VNACS is a village-level agricultural society with 300 members, managed by Mr. Agrawal. The society had drawn an overdraft of Rs.5 Lakh from Jaldhara District Bank in September 1990 which is yet to be repaid. However, owing to the secure operations, the Bank has allowed the society to continue using the overdraft at an interest rate of 10% per annum. In mid-March, the society procured 100 tons of paddy which can be sold at a current pricing of Rs.5000/ton. But, prices are expected to increase by the next six months to about Rs.7500/ton. Also, a payment of Rs.5 Lakhs to the members towards this procurement is due. Meanwhile, an offer of pesticides, which usually costs Rs.300/bag at the time they are required, are being offered at a special price of Rs.250/bag if taken within two weeks. Thus, Mr. Agarwal faces a dilemma between an ethical choice of paying back the members and a profitable one of buying the fertilizers at a low price at the cost of deforming the relationships with the members of the

More about Report on Vnacs

Open Document