Disentangling Agria/PGW for FY2012
Quote:
Originally Posted by
Snoopy
Time to try and disentangle the PGW debt from the underlying Agria debt.
From the PGW FY2011 Balance sheet:
PGW Total Liabilities: $NZ844.685m
PGW Total Equity: $NZ604.341m
PGW Total L & E: $1,449.026m
Convert that to USD using $NZ1= US81.73c
PGW Total Liabilities: $US690.36m
PGW Total Equity: $US493.92m
PGW Total L & E: $US1,184.29m
Reduce value to allow for Agria owning 50.22% of shares as at 30th June 2011
Agria PGW Liabilities: $US346.69m
Agria PGW Equity: $US248.05m
Agria PGW L & E: $US594.75m
Now we go to the Agria Balance Sheet for the same 30th June 2011 date, which includes the 50.22% share of PGW as a consolidated entity.
Agria Liabilities: $US831.1m
Agria Equity: $US412.3m
Agria L & E: $US1243.4m
Now use subtraction to look at the underlying Agria balance sheet.
Underlying Agria Liabilities: $US484.4m
Underlying Agria Equity: $US164.2m
Underlying Agria L & E: $US648.6m
That means the underlying Agria itself has an equity ratio of:
$US164.2m /$US648.6m= 25.3%
Repeating this exercise for the FY2012 financial year...
Time to try and disentangle the PGW debt from the underlying Agria debt.
From the PGW FY2012 Balance sheet:
PGW Total Liabilities: $NZ402.698m
PGW Total Equity: $NZ577.774m
PGW Total L & E: $NZ980.472m
Convert that to USD using $NZ1= US79.64c
PGW Total Liabilities: $US320.708m
PGW Total Equity: $US460.139m
PGW Total L & E: $US780.847m
Reduce value to allow for Agria owning 50.22% of shares as at 30th June 2012
Agria PGW Liabilities: $US161.060m
Agria PGW Equity: $US231.082m
Agria PGW L & E: $US392.141m
Now we go to the Agria Balance Sheet for the same 30th June 2012 date, which includes the 50.22% share of PGW as a consolidated entity.
Agria Liabilities: $US415.033m
Agria Equity: $US406.596m
Agria L & E: $US821.629m
Now use subtraction to look at the underlying Agria balance sheet.
Underlying Agria Liabilities: $US253.973m
Underlying Agria Equity: $US175.514m
Underlying Agria L & E: $US429.488m
That means the underlying Agria itself has an equity ratio of:
$US175.514m /$US429.488m= 40.8%
That is heavily indebted but manageable (perhaps), until you remember the $US100m in PGW share writedowns that have been shuffled off balance sheet
($US175.514m-$US100m) /$US429.488m= 17.6%
With no income to service a $US430m debt and an equity ratio of just 18% it is at this point that I declare Agria technically bankrupt.
SNOOPY