PROFILE

OF
SAHASTRA AGRO TRADERS

D.No. 3-116, Surmaiguda, Abdullapurmet, Rangareddy District, Telangana-501512

Name SAHASTRA AGRO TRADERS

Registered Office
D.No. 3-116, Surmaiguda, Abdullapurmet, Rangareddy
District, Telangana-501512
Godown Address

Incorporation 20th April, 2022

Constitution Partnership firm

Firm Registration 1283 of 2022 at Ranga Reddy

PAN AERFS8913F

GSTIN 36AERFS8913F1ZI

MSME UDYAM-TS-09-0057195

1. Mr. Puri Swayam Prakash

Partners
2. Mr. Puri Sri Laxmi
Existing: Trading in Cattle Feed, Calcium Gluconate Power,
Maize, Cotton Seed Hulls, Multi Grain Bran, and other
Line of activity Agricultural commodities.
Proposed: Trading in Cattle Feed, Calcium Gluconate
Power, Maize, Cotton Seed Hulls, Multi Grain Bran, and
other Agricultural commodities.
Industry Association Agriculture

The Firm requires working capital for existing trading

Present Requirement business.
Overdraft: Rs.200.00 Lakhs
Residential plot situated in Warangal which is having
Collateral Security market value of around Rs.3.00 Crores.
Collateral Security Coverage of more than 100%.
 Key Financials:
Sr. For year ended / ending March 31st 2023 2024 2025 2026 2027
No.
Estimated Projected Projected Projected Projected
1 Net Sales 1300.00 1800.00 2000.00 2200.00 2500.00
2 EBIDTA 16.33 45.91 49.84 56.92 72.88
3 E B I D T A/ Net Sales (%) 0.01 0.03 0.02 0.03 0.03
4 Interest 2.50 22.50 22.50 22.50 22.50
5 Depreciation 0.72 0.54 0.24 0.21 0.17
6 Operating Profit after Dep.& Int. 13.11 22.87 27.10 34.21 50.21
7 Net Non Operating Income -9.00 -12.00 -12.00 -12.00 -12.00
8 PBT 13.11 22.87 27.10 34.21 50.21
9 PAT 9.70 16.92 20.05 25.32 37.16
10 PAT/ Net Sales (%) 0.75% 0.94% 1.00% 1.15% 1.49%
11 Net Cash Accruals (NCA) 10.42 17.46 20.29 25.53 37.33
Cash Accruals/ Net Sales (%) 0.80% 0.97% 1.01% 1.16% 1.49%
12 Net Fixed Assets 2.15 1.61 1.37 1.16 0.99
13 Tangible Networth (TNW) 99.70 126.62 146.67 171.99 209.15
14 Working Cap. Bank Finance 200.00 200.00 200.00 200.00 200.00
15 Deposits from Customers/others 0.00 0.00 0.00 0.00 0.00
16 Total Debt 200.00 200.00 200.00 200.00 200.00
17 Total Debt/ TNW 2.01 1.58 1.36 1.16 0.96
18 TOL/TNW 2.42 1.95 1.71 1.48 1.23
19 Total Current Assets 338.75 371.98 396.07 424.78 466.44
20 Total Current Liabilities 241.20 246.97 250.77 253.95 258.28
21 Net Working Capital 97.55 125.01 145.30 170.83 208.16
22 Current Ratio 1.40 1.51 1.58 1.67 1.81
23 Current Ratio Excl TL instalment 1.40 1.51 1.58 1.67 1.81
24 R O C E (%) 0.14 0.40 0.36 0.36 0.38
25 Interest Coverage Ratio 10.13 2.57 2.75 3.06 3.77
26 Total Debt/Net Cash Accrual 19.20 11.46 9.86 7.84 5.36
ABOUT THE FIRM
M/s. Sahastra AgroTraders is a Partnership Firm established on 20th April, 2022. The
main business of the firm is trading business dealing with Cattle Feed, Calcium
Gluconate Power, Maize, Cotton Seed Hulls, Multi Grain Bran, and other Agricultural
commodities. We supply maize, cotton seed cake or meal, multigrain bran, to
manufacturing and trading companies situated in Telangana, Andhra Pradesh, and
Tamilnadu. Registered and Corporate office is situated in D.No.3-116, Surmaiguda,
Abdullapurmet, Rangareddy District, Telangana-501512. The firm started its business
with trading of different kinds of agricultural commodities by supplying to
exporters/traders situated in South Zone of India. The promoters of the firm have been
associated with exporters/traders for the last three years in terms of sourcing
agricultural seeds from south India.

We have a very reliable and wide base of clients across the country and we are
endeavouring to stretch globally. All the customers appreciate our range of products
on the standards of quality and durability. Our list of prominent clientele includes
prestigious and reputed companies.

We are supplying maize, multi grain bran, cotton seed hulls, cotton seed cake, and
other cattle feed supplements in both bulk as well as small quantities all over south
India. The promoters were trading with cotton seeds, maize, broken rice, bran, etc
from past 8 years. The firm was mainly engaged in trading of agricultural products.
Now the firm is trading with the following products:

Agricultural Seeds

All kinds of multi grain bran

Maize

Cotton Seeds
The partners of the firm are having vast experience as merchant traders and having
long standing association with companies all over India. Majority of the Customers and
vendors of the firm are feed manufacturers, buying agents, wholesale and retail traders.
Presently, the firm procures materials on open credit with margin deposits.

COMPANY OBJECTIVES:

To provide our customers with

To establish a strong network between food manufacturers, processors, buyers
and traders.

Better access to new markets with wide range of products like grains, pulses
through our expertise and experience

Best-in-class customer experience

Timely, reliable, accurate supply and delivery

Competitive pricing

To promote local Agro products and educating their healthy, nutritious and
medicinal value

Our expertise embraces the following activities:

We ensure premium quality organic products

Guarantee the most competitive prices

We ensure premium quality merchandise

Last but not the least to help enhance lives of millions of consumers worldwide

To carry on a sustainable agriculture development. To carry on organic farming
in different agro-ecological regions. To carry on business of cultivation,
manufacturing, processing, and trading of agricultural goods, products and
related items of agro allied products, organic farming, and food processing.

To carry on the business on importation and exportation of agricultural products
and equipments to enhance the mechanization of agricultural activities.

To engage in all activities of producing, supplying, importation & exportation of
agricultural commodities, and preserving, processing, storing, distribution and
marketing of agricultural products.

To carry on business on construction of Greenfields, refineries, bio digesters and
waste management units.

To establish plant or tree nurseries to produce and supply of rare and herbal
seedlings in agriculture & horticulture.

To carry on business on dairy farming, organic farming, fish farming, cattle
farming, milk production and processing, poultry farming and poultry layer
farming.

To provide consultancy in areas of agriculture, horticulture, and trading.To
transfer of technology and state of art know-how in the agricultural value chains.

OUR VALUES:
SAT's core values are client-oriented, honesty, quality and commitment. These values
guide everything we do and enable us to make a positive difference. We are a customer-
oriented company and believe in developing strong, positive and long-lasting
relationships with all our partners. We are honest and fair with suppliers, customers
and colleagues. We are dedicated towards providing goods and services of excellent
quality with competitive prices to our entire client base. We are working with strong
commitment to ensure the expectations of the customers.

WHAT WE DO -BUSINESS LINES:

Agriculture industry specifically in many countries is at the crossroad of a new
revolution. The entire food chain is supposed to be modernized and the production is
expected to be doubled in the coming couple of years. Apart from domestic demand,
this industry brings in imports & export prospects. At present agri-business may
involve either an input or produce or service and encompasses items. We do this by
designing and implementing successful, effective programmes that support the growth
of businesses and community-based organizations across region, especially those that
are rurally based, youth-focused and female-owned. We implement much needed
change in an effective and professional manner. SAT is exploring this opportunity and
started to work in following agribusiness lines.
Capabilities:
In the present business situations, Even though the market is slashing down, we still
aim at exploring new markets and other Business avenues. We thrive to give the best
services at every time and are confident to do that due to a large network of agent’s
all over India which makes possible for us to give best product at reasonable rate. As
a trader, we have achieved the confidence of our buyers, by providing them the
quality products at reasonable rate. Our aim is not merely to get the business, but also
to get total satisfaction of our customers.

The promoters were trading with agricultural seeds, rice bran, maize, etc from past 10
years. Both the partners are graduates in Commerce have been in the field of selling of
agricultural commodities.
ABOUT THE PROMOTERS

M/s. Sahastra AgroTraders has the following partners:

3. Mr. Puri Swayam Prakash
4. Mrs. Puri Sri Laxmi

1. Mr. Puri Swayam Prakash: He is aged about 45 years. His forefathers were doing
business in rice and maize. He was into the same business from past 15 years. He has
varied and rich experience in trading of all kinds of agricultural commodities and has
good network of customers. He is having an overall experience of more than 15 years in
possessing deeper knowledge and experience in the fields of administration, Marketing,
Sales, and Finance. He has adequate exposure in all the aspects of agricultural
commodities and animal feed industry. Based on previous experience in the animal
feed and agricultural commodities, he started his own business in the name of Sahastra
AgroTraders for supplying Calcium Gloconate, Cotton seed meal, maize, and animal
feed. He is also acting as Managing Partner of M/s Thanmayi Agro Traders

2. Mrs. Puri Sri Laxmi : She is aged about 38 years. She is a commerce graduate and
has over 10 years of rich and diverse experience in trading of Maize. Her father is
supplying maize to exporters from past 30 years. She is looking after procurement and
supply of Maize. She was looking into area wise cost variances and quality of products
in such areas. Recently, she joined the firm to start own business. She is having good
contacts with Cotton seed Mills and flour mills situated around Hyderabad.
Products:
Experience and Activities: The firm is in the business since last 3 years, and is dealing
in supply of Animal Feed and Agriculture commodities. Now the firm has expanded its
business into trading of Maize and multi grain bran from last 2 years onwards. Firm’s
present activities consist of:

Affected by the balance of supply and demand of dairy products, changes in feed costs
and the international dairy product market, the purchase price of fresh milk continues
to be low, while the cost of feeding remains at a relatively high level. At the same time,
as dairy companies have increasingly stringent requirements on fresh milk quality,
reducing the cost of kilograms of milk and increasing the efficiency of pastures have
become a hot topic. In order to meet the severe challenges of the dairy cow industry,
yeast-based products for animal nutrition from our products and solutions for dairy
nutrition, which aims to solve the problems of rumen health, nutrition and production,
heat stress and mycotoxin management. With our products, you will breed higher-
performance cows and get high-quality milk, save costs and improve efficiency, and
better realize the sustainable development of the dairy cow industry.

Calcium Powder:
We supply & market calcium feed supplement in powder form (CUPCLA-7). This is
more stronger that liquid calcium supplement. This is perfect blend of Calcium &
vitamin which yields more milk & faster growth of animal. It is the common source of
baby calcium supplement, widely used in infant food, cereal and cereal product, health
products, sports and milk beverage, high calcium concentrate, etc. It also could be as
buffer and firming agent, used in fried food and pastries, to prevent oxidation and
discoloration, and improve the sensory quality.
Cattle Feed:
Cattle feed to be supplied by Sahastra AgroTraders is a balanced source of essential
nutrients required for body maintenance, growth and milk production. It is
manufactured using good quality grains, oil cakes/ meals, brans, molasses, com- mon
salt, minerals and vitamins. It is comparatively cheaper and highly palatable to the
animals. When kapas is ginned, the lint and seed get separated.

Rice Bran:
Rice bran is the vitamin-rich outer layer that surrounds the endosperm of whole grain
brown rice. While comprising just 8% of total weight, rice bran (which includes the
germ) accounts for 60% of the nutrients found in each rice kernel. Ordinarily, the oil in
rice bran quickly spoils, but ours has undergone an effective stabilization process to
ensure its freshness. Bob's Red Mill Rice Bran is low in fat and calories and rich in
dietary fiber. It is also a good source of minerals including iron, magnesium and
phosphorous. Our Rice Bran can be added it a variety of foods to boost your intake of
fiber and nutrients. Try it in fruit smoothies, cereals, casseroles, soups, muffins, breads,
cakes and other baked goods.
Bran is particularly rich in dietary fiber and essential fatty acids and contains significant
quantities of starch, protein, vitamins, dietary minerals and phytic acid, which is an
antinutrient that prevents nutrient absorption. The high oil content of bran makes it
subject to rancidification, one of the reasons that it is often separated from the grain
before storage or further processing. Bran can be heat-treated to increase its longevity

Cottonseed:
Cottonseed is the seed of the cotton plant.
The mature seeds are brown ovoid weighing about a tenth of a gram. By weight, they
are 60% cotyledon, 32% coat and 8% embryonic root and shoot. These are 20% protein,
20% oil and 3.5% starch. Fibres grow from the seed coat to form a boll of cotton lint. The
boll is a protective fruit and when the plant is grown commercially, it is stripped from
the seed by ginning and the lint is then processed into cotton fibre. For unit weight of
fibre, about 1.6 units of seeds are produced. The seeds are about 15% of the value of the
crop and are pressed to make oil and used as ruminant animal feed. About 5% of the
seeds are used for sowing the next crop.
Cottonseed meal: Cottonseed meal is a good source of protein. The two types of meal
extraction processes are solvent extraction and mechanical extraction. Most of the meal
is extracted mechanically through cottonseed kernels. Cottonseed meal can be used in
multiple ways either alone or by mixing it with other plant and animal protein sources.

Cottonseed hulls: The outer coverings of the cottonseed, known as cottonseed hulls, are
removed from the cotton kernels before the oil is extracted. Cottonseed hulls serve as an
excellent source of feed for the livestock as they contain about 8% of cotton linters
which have nearly 100% cellulose in them. They require no grinding and easily mix
with other feed sources.

Maize:

The maize grain is a major feed grain and a standard component of livestock diets
where it is used as a source of energy. Other grains are typically compared
to maize when their nutritional value is estimated. Maize has been recognised as a
major energy feed ingredient in the diets of poultry. Its major nutritional limitation has
been the low protein content and poor poor protein quality, which necessitates the use
of expensive high-protein supplements or synthetic amino acids such as lysine in diets
containing large proportion of maize.
List of Customers:
1. Poojasri Traders
2. Sambasiva Traders
3. Revention Industries Private Ltd
4. Ayyappa Traders
5. Mahaveer Impex
6. Sanjayprem Agro Farming Private Ltd
7. Sri Krishna Trading Company

List of Suppliers:
1. Hemanth Agro Products
2. Vijaya Rama Agro Traders
3. Akshaya Sri Agro Foods Private Ltd
4. Surya Teja Enterprises
5. Gayathri Cropcare Private Ltd
6. Vijaya Lakshmi Traders
7. Sri Guru Raghavendra Traders
3.1 Banking Arrangement:

The Present proposal is for fund based credit facilities to the tune of Rs. 2.00 Crores. The
proposed requirement of fund & non-fund based facilities is given hereunder: -

Credit Facilities Proposed:

Proposed Limits
Credit Facility
Rs. in Crores
Over draft 2.00

Letter of Credit 0.00

Total 2.00

1. Company is requesting for working capital facilities, Cash Credit/OD – Rs.2.00

Cr for working capital requirement.
2. Interest rate: 11 % p.a.
3. Security :
a. Exclusive Charge on current assets of the company.
b. Personal guarantees from promoters.
c. Collateral Security: Collateral security to the extent of more than 100% of the
credit facilities will be provided as additional collateral security for working
capital facilities.
3.2 ASSESSMENT OF WORKING CAPITAL:

The firm requested Over Draft limit of Rs.2.00 Crores for the current year based on
estimated turnover of Rs.18.00 Crores. The credit limits are assessed under II method of
lending as under:

(Rs. in Lakhs)
Sl. Particulars
Estimated Projected Projected Projected Projected
No
1 Current Assets 338.75 371.98 396.07 424.78 466.44
Current Liabilities
2 (Other than Bank 41.20 46.97 50.77 53.95 58.28
Liabilities)
Working Capital Gap
3 297.55 325.01 345.30 370.83 408.16
(WCS) 1-2
Min. Stipulated net
4 84.69 93.00 99.02 106.20 116.61
working capital
Actual/projected Net
5 97.55 125.01 145.30 170.83 208.16
Working Capital
6 Items 3 minus Item 4 212.86 232.02 246.28 264.64 291.55

7 Items 3 minus Item 5 200.00 200.00 200.00 200.00 200.00

Maximum Permissible
8 200.00 200.00 200.00 200.00 200.00
Bank Finance

Holding levels in number of days of various components of current assets and

current liabilities are as under:

Estimated Projected Projected

Year ended Projected Projected
March 31st
2023 2024 2025 2026 2027
Finished goods 14.92 15.52 15.61 15.61 15.62

Receivables 37.75 56.79 53.17 50.92 48.13

Sundry Creditors 10.78 8.92 8.64 8.21 7.53

(a) Finished goods:
Firm is purchasing the agricultural commodities such as Paddy, Maize, Cotton Seed,
Rice Bran, Broken Rice, etc from manufacturers, traders, and commission agents. The
agricultural commodities will be directly sold to exporters, manufacturers, and traders.
Most of the times firm procuring materials immediately after harvesting, and hold the
same for more than 20 – 25 days to sell in the market after getting better price.
Accordingly, the firm is required to hold or maintain finished goods stock. Whereas the
firm requires time to sell the animal feed and agricultural seeds. The firm projected 20
days for Stock in trade which includes only finished goods.

(c) Receivables:
The firm selling the products to Distributers, Suppliers, Manufacturers, Traders, and
End users. As list of debtors includes different category of customers, so the payment
from these people will be received in between 30 to 60 days. As there is competition in
the line of business, the purchasers seek credit for more than 45 days. Hence the firm
projected its receivables level at 45 days and acceptable in the said industry.

(d) Creditors for purchases:

The main products of the firm are Agriculture commodities and paper products. The
products are generally procured from the local market. For cash purchases firm making
payments in between 15 – 30 days which is standard in the market.
3.3 SWOT ANALYSIS

STRENGTHS:

• Promoters and employees are having good experience in animal feed and
agricultural commodities Industry.
• Firm orders in hand.
• New Firm and hence no old liabilities.
• Firm is having dedicated team of professionals for supplying animal feed and
required inputs for cultivation and collection of agricultural commodities.
• Promoters are HNI, capable of infusing funds into business on requirement basis.

WEAKNESS:

• Unfavourable change in taxes structure.

• Low profit margins due to high level competition.
• Competition from local merchants.

OPPORTUNITIES:

• Increase in population, growing demand for food, etc

• Increase in civil supplies and exports
• Growth rate of the industry, economy
• Better price realization for agricultural commodities from the market

THREATS:

• Continuance of recession over a longer time horizon

• Power position in the state
• Fluctuating input prices
FINANCIALS