A Study on the Viability and Financial Feasibility of APMC, Mysore

Financial feasibility is one of important factors to be considered for any investment analysis. Investment is primarily viewed from twin objectives viz., return on investment and service to the society. The investments made by the Market committees have to adhere to these two objectives from the point of long tern sustainability. The study was conducted in 201112, in the APMC yard at Bandipalya, Mysore with the objective of assessing the viability and financial feasibility of Mysore APMC. Assets and liabilities statements and income and expenditure statements were collected from the APMC office records for a period of five years viz. 2007–08 to 2011–12. Financial ratios and tabular analysis were used to analyze the data. The study revealed that between the period 2008 and 2011 the income and expenditure grew at 41% and 24% respectively and by policy the APMC had contributed significantly to different funds from its income. The return on investment amounted to rupees 6.72 crores in 2011–12, which has increased from Rs. 72.69 lakhs in the year 2007–08. This accounts a growth of 70.81%. This indicator exhibits the robust return on capital expenditure of Mysore APMC. The income generated has substantially contributed to various provisional funds as per the policies of the government and the balance money available under the head capital fund of Mysore APMC stands at Rs. 11.05 crores. This fund can be used to further develop the Mysore market. The APMC Mysore has successfully met the set objectives by providing not only service to the farming community but also earned substantial profits on investments made over a period of time. The study implies that Mysore APMC is a profit making body, showing commendable returns over the years. However due consideration must be given to ensure that the income generated at APMC, Mysore shall cater lions share to develop infrastructure at main market and its sub yards, towards imparting knowledge and training to farmers and holistic development of the farming community.