FINANCIAL ANALYSIS OF NFL

BY:
SUMAN RAWAT
INTRODUCTION

NFL, naya nangal unit is a Mini Ratna Company was incorporated on

23rd August 1978 for setting up two Fuel Oil / LSHS based Urea plants at Nangal
plant.

NFL is the 2nd largest producer of Urea in the country with a total share of 15.5%
and largest Urea producer amongst public sector Urea producing companies.

In NFL ,Government of India holds 89.71% shares and 10.29% shares are held by
financial institutions & others.
KEY PEOPLE

Chairman & Managing Director (C&MD) - Shri Manoj Mishra

Director technical -Shri D S Ahuja

Director Finance - Shri Rajiv K chidok

General manger material Shri J.P shacdeva

Nangal unit GM SHRI Nirlip Singh RAI

INTRODUCTION TO TOPIC :
Meaning : Financial analysis is the examination of a
business from a variety of perspectives in order to fully
understand the greater financial situation and
determine how best to strengthen the
business.A financial analysis looks at many aspects of
a business from its profitability and stability to its
solvency and liquidity.
Objective
1. To study the working capital potion of NFL.
2. To study their cash and receivable management.
3. To study the different account section.
4.To analyze performance and position of the
company
Account Section Of NFL
WORKS ACCOUNT

NFL has to execute and under-take number of projects for the

expansion, repair and maintenance of its Fixed Assets particularly
the Plant and Machinery. In order to streamline and detail out the
working a separate section has been formed as Works Section. Such
section shall be responsible for the following activities:

1.Civil Construction and Maintenance;

2.Fabrication, procurement and erection;
3.Electrical and Instrumentation procurement and erection;
4.Turnkey jobs for design, engineering, procurement, erection and
commissioning;
TENDER

To tender is to invite bids for a project, or to accept a formal offer

such as a takeover bid. Tender usually refers to the process whereby
governments and financial institutions invite bids for large projects
that must be submitted within a finite deadline. The term also refers
to the process whereby shareholders submit their shares or securities
in response to a takeover offer.
IMPORTANT STEPS IN TENDERING
NIT (Notice Inviting Tender)

SELECTION

EMD

WORK ORDER

PERFORMA

PASS ORDER
 PURCHASE ACCOUNTS
Purchases are done by the company regularly of all kind of Raw Material
and of all the items which are required both for Improvement,
Enhancement, Repair and Maintenance of the assets.

Purchase of stock comprising of Raw Materials, Consumables, Bought out

items and Packing material.

Purchase of Assets comprising of Direct Purchase of Fixed assets, Fabrication,

Construction, Improvement and Enhancement of assets.

Purchase of services like Contract services, Hiring charges and Professional

Technical Consultancy.
SALES ACCOUNTING

The distribution of the Fertilizer is controlled by Government of India

under Essential Commodities Act (ECA) and necessary allocation
of quantity for distribution from each plant in various states is
decided by Government of India, Ministry of Agriculture before the
start of the Crop Season viz Kharif and Rabi. All the Manufacturing
units have to adhere to the ECA allocation notified by the
Government for each unit
WORKING CAPITAL IN NFL

Working capital is simply difference of current asset

and current liabilities. Working capital is an expression
of how much in liquid assets the company currently
has to build its business, fund its growth and product
value for the owner. When a business expands faster
more cash will be needed for working capital and
investment. Good management of working capital is
very important because the term is used for the
capital needed for day-to-day operations.
PARTICULARS 2013-14 2014-15 2015-16
Inventories 1427302764 506477560 812117440
Trades 5676075221 8219603583 7473364823
Receivable
Cash & Bank 290979 886389 216355
Loans & 148828416 65815083 67904458
Advances
Total (A) 7252497380 8792782615 8353603076

PARTICULARS 2013-14 2014-15 2015-16

Trades Payable 1397943280 477279085 452220686
Provisions 57809226 112696860 130605768
Total (B) 1455752506 589975945 582826454

Net Working 5796744874 8202806670 7770776622

Capital (A-B)
RECOMMENDATION
The company was doing all the operations in papers. They have to generate lot of files. They have to keep them
separately in order. Hence, they require more time, human resource and money. They should do some changes in
their way of working. They should start use laptops or desktops to reduce the time.

There was lot of workers who were not having proper knowledge about using computers. Company should give them
some guidance to improve their skill.

NFL is centralized. Passing of one paper is went through several departments and several department head. It
increases the time of the task. Hence, they should divide the work and give authority to the department to pass a
paper.

The number of workers in NFLs Nangal unit was greater than the amount of work. Company should move the
employee to the other unit. So that company can use its human resources efficiently.

The NIT which NFL unveiled for the vendor is more done offline than online. Hence there is limited no of vendor. NFL
should advertise online also to attract more and more vendor. It will reduce the rates of the tendor.

An organization and its performance can only be as good as the people who manage and control it. A few persons
who are responsible for spending over half the revenue of the company on material must be carefully selected,
oriented, trained and developed. Many employee in NFL undertakings lack some of these requirements and therefore
special attention is required in training, development and delegation. and they must have proper training on
technical issues that they have face during e-tendering.
LEARNING
NFL is a PSU company. The company is running because of the subsidy given by
the government. NFL has to follow some rules like the area in which it can sell its
product is limited and only neam coated urea it can sell.

There is a order of doing work. One document is checked by many departments so

the possibility of errors is very low.

GST will not effect the company. With increase in excise duty, service charge etc.
the subsidy given by govt. will also increase.

C-form will be removed after GST.

Location plays an important role in establishing a industry.

RESPONSIBILITY
The responsibility given to me was to check the performa of the tenders
given to the vendors. I have to check the running bills of the vendors. For
example if a vender is related to furniture manufacturer then I have
multiply the dimension of the product which is to be made. The volume of
that product is multiplied by rate of the wood which was fixed.
Then the second responsibility given to me was to check the pass order. In
pass order we have to check the service tax. The amount which is given to
vendor with the additional charges like water charges, electricity charges
etc.
Third responsibility was to make the excel sheet of the machines which
were given on lease. We have to check the person who is taking machine
on rent is either doing work inside the NFL or outside. Rates were fixed on
hourly basis with addition of depreciation charge, labor charge etc,. The
rates for the outsider renter were 25% more than the fixed charges.
I have written letter to the bank regarding to the bank guarantee that is
deposited by the vendor on failure of the work or not properly work done
in given time.
The purchase departments mainly do the purchase of the
product required. I was working in the purchase accounts
under the guidance of Mr. Rajeev Kumar Mehta. There they
told me what C-form is. My responsibility was to make C-Form
of the NFL. In which I have to fill the purchase order no. ,
address of the supplier company, product and the dates.
I made the files of the company in which C-Form, purchase
order slip, material inspection slip etc. were there. Then I have
to check the delivery date of the product if it is on time then it
is ok but if it is late then we have to deduct the amount by
1.5% per week on total amount.
THANKYOU