FINANCIAL ANALYSIS AND DEVELOPED FACT PACK OF NAGARJUNA FERTILIZERS AND CHEMICALS LIMITED
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Date
2012-06
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jau,junagadh
Abstract
Agriculture which accounts for one fifth of GDP provides sustenance to two-thirds of our population. Besides, it provides crucial backward and forward linkages to the rest of the economy. Successive five-year plan have laid stress on self-sufficiency and self-reliance in food grains production and concerted efforts in this direction have resulted in substantial increase in agriculture production and productivity.
Fertilizer sector was very crucial for Indian economy because it provides a very important input to agriculture. The fertilizer industry in India has played a pivotal role in achieving self-sufficiency in food grains as well as in rapid and sustained agriculture growth. India is the third largest producer and consumer of fertilizer in world after China and USA.
Financial analysis was a measure of the organizations ability to translate to its financial resources into mission related activities. Financial analysis is desirable in all organization of individual mission. It measures the intensity with which a business uses it assets to generate gross revenue and the effectiveness of producing, purchasing, pricing, financing, and marketing decisions.
The present study was undertaking in Murtizapur taluka of Akola district with respect to find relationship with the company, dealer’s relations and the expectations of the market from the company. Company is facing the problems of weak marketing network, improper distribution, unavailability of fertilizer, less margin compare to other companies product and result to less market share, so to solve above problems mainly need to concentrate on key problem and they upgrade production capacity and improve marketing network. The respondents were selected purposively so in statistical term purposive random sampling technique was adopted. From surveyed taluka 25 dealers were selected randomly. For financial analysis secondary data required that was collected from company website. The research involves the collection of balance sheet, profit and loss account for the last five year.
The result of study work shows financial analysis and found that it was a very difficult task to maintain ideal ratios in such a big organization. There were various factors affecting while managing ratio analysis. NFCL’s current ratio was better for company prestige. Liquidity position of a company can be ensured by the current ratio analysis; if the ratio was 2:1 then the company’s liquidity position was sound. NFCL’s debt-equity ratio indicated that greater claim of lender’s contribution for each rupee of the owners’ contribution. Inventory turnover ratio show the highest efficiency uses of the inventory these indicating of good inventory management. Gross profit margin ratios were almost 14 per cent and above every year its very satisfactory management for the company. The net profit margin ratio was satisfactory and these had in an advantageous position to survive in market. Return on equity indicates how well the company has used their sources of the owners. During the whole years of study reflects the owners’ wealth and market place. It’s good for owners. The earning per share registered an increasing trend during the study.
In the research it was found that 8 per cent of the dealers was in favor of company, while 32 per cent dealers had maintain the brand image of the company in the market and was putting hard efforts to sales the products. Another 60 per cent are good in their position but they have some problems. According to study about 54 per cent of the dealers expect more and convincing promotional activities. 32 per cent dealers suggested introducing new products, 36 per cent of the dealers require company representative, while other 80 per cent dealers wanted good quality products. Remaining has various expectations like, 64 per cent (increase in margin of products), 72 per cent (less price), 84 per cent (timely availability of products) and 32 per cent (good packaging). Market share of NFCL’s product among other competitor’s products were 7 per cent, RCF got 21 per cent, Coromandal International and IFFCO having market share of 17 per cent and 16 per cent respectively.
The study of the research work suggested that, to improve financially company should enlarge their equity share capital through issuing of new equity shares, long-term funds. Whereas according to dealer expectation company should make the product availability time to time, keep in touch with farmers continuously through advertisement and used of promotional activity. The distribution of product should be well planned. So that company able to provide the product to its retailers/ dealers/distributors before commencement of season. Company should be give reward to retailers/dealers/distributor according to the achievement of target and also should be given some attractive offers which will motivate them for more selling.
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management