BUSINESS PERFORMANCE ANALYSIS OF A MICRO-IRRIGATION FIRM - A CASE STUDY ON VEDANTA IRRIGATION SYSTEMS PVT. LTD.
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Date
41604
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Publisher
University of Agricultural Sciences GKVK, Bangalore
Abstract
The present study analysed the business performance of Vedanta
Irrigation Systems Pvt. Ltd., a micro-irrigation firm based at Bangalore.
Percentage change analysis and financial ratio analysis were used to
analyse the data. The findings of the study indicated that there was an
increasing trend in the growth of shareholder’s funds, current liabilities,
non-current assets, current assets, total revenue, total expenses and net
profit of the firm. The firm has a four-tier organizational structure. All
the liquidity ratios except liquid ratio were the highest for the year 2009-
10 and all these ratios were the lowest for the year 2011-12. The return
on the shareholders’ investment increased which was due to the increase
in the net profits of the firm. The inventory turnover ratio increased from
5.90 to 8.90 which is an indication of good inventory management. The
‘word of mouth’ strategy was the most effective promotional strategy
adopted by the firm as this strategy contributed to about 50 per cent of
the sales of the firm. Among the constraints, non-availability of labour
was the most important constraint faced by the firm followed by
fluctuation in input prices, high manufacturing cost, inadequate credit,
transportation problems, high interest rate on loans and non-availability
of training staff.