SLN Project

S.L.
N CHEMICALS AND FERTILIZERS, PVT LTD
INDEX
S.NO. CHAPTER NAME Page No
01 EXECUTIVE SUMMARY
02 INDUSTRY PROFILE& COMPANY PROFILE

1) SECTOR DETAIL
2) HISTORY OF THE COMPANY
3) VISION, MISSION OR OBJECTIVES
4) DEPARTMENT ANALYSIS
5) ORGANIZATIONAL CHART
6) SWOT ANALYSIS
03 REASEARCH METHODOLOGY
1) NEEDS FOR THE STUDY
2) OBJECTIVES
3)DATA COLLECTION (PRIMARY &
SECONDARY)
4) TOOLS FOR DATA ANALYSIS
04 DATA ANALYSIS
1)TABLE
2) CHARTS
3) INTERPRETATION
05 FINDINGS
06 SUGGESTION
07 1) BIBLIOGRAPHY
2) REFERENCE
3) ANNEXURE
1
DEPT OF MANAGEMENT STUDIES [KACD]
S.L.N CHEMICALS AND FERTILIZERS, PVT LTD
EXECUTIVE SUMMARY
INTRODUCTION:
Shri Laxmi Narayan Chemicals and Fertilizers is a Private Limited Company, registered
under Indian Companies Act, 1956. The company has the paid up capital of 200 lakhs .The
Company was launched on June, 2006 and the production will commence by second week of
March 2007. We have advanced technology of fertilizer granulation with a per day output of
150 MT. The factory is situated in such a locality that transportation by road and by rail is
very convenient. Factory site is about 10 km from Hubli and 9 kms from Dharwad and is on
the Hubli - Dharwad Road and is located on the National Highway. Dharwad is the District
Head Quarter. Since Hubli is situated in the centre of Northern Karnataka and is an important
commercial centre the availability of trucks is good to districts like Belgaum, Dharwad,
Haveri,Bagalkot, Bellary, Koppal, Davanagere, Shimoga which forms the economic
marketing zone in the radius of 100/200 kms. Apart from the above we have following
advantages: We are equipped with a advanced quality control laboratory for quality assurance
Right from procurement of raw materials, processing, production. Packing and storage are
monitored by well qualified technical staff. Company is very much interested in value
addition to the NPK mixtures by adding micro nutrients. One of our directors himself is
technically qualified doctorate in Soil science which is an added advantage. Company is
having a strong financial backing which will help in purchasing raw material in advance
The easiest way to evaluate the performance of the firm is to compare its present
balance sheet with the past balance sheet. When balance sheet over a period are compared. It
gives the indication of direction of change and reflects whether the firm’s financial
performance has improved, deteriorated or remained constant over time. The company should
determine these changes, but more importantly understand why comparative balance sheet
they have changed. Comparative balance sheet demonstrates a company's ability to pay its
current obligations. A class of financial metrics is used to determine a company's ability to
pay off its short term debt obligations. Instead of finding the balance sheet, maintaining
physical records of all transactions Enterprise Resource Planning (ERP) Software could be
effectively used to manage all such time consuming work.
2
So project is undertaken on “Study on receivables management of S.L.N CHEMICAL

AND FERTILIZER PVT.LTD”. This study was conducted to meet the following
 To serve as the basis for the future operation.

 To disclose the implication of operating profit on financial position of a concern.
 To give sufficient and relevant financial information to various parties interested
in financial statements analysis.
 To study the present financial soundness of the company
3
CHAPTER – I
INDUSTRY PROFILE AND COMPANY PROFILE
INDUSTRIAL PROFILE:
Sector details:
Indian Fertilizer industry is one industry with scope in future. India is primarily
agriculture oriented country and its economy is highly based on the aggregate produce the
agricultural sector and its other associated spares provide employment to a large section at the
country’s population and share about 25%to the GDP. The Indian fertilizer industry is one of
the allied sectors of the agricultural spares. India has emerged as the third largest producer of
nitrogenous fertilizers.
In recently production has gone up to extent that there is scope for export of food
grains the surplus has been foliated by the way of chemical fertilizers. The large scale of
chemical fertilizers has been instrumental in bringing about green revolution in India.
The fertilizer industry in India began its journey way back in 1906.during this period
the first single super phosphate factory was established in Reanimating Chennai. In pre and
post-independence era a couple of large scale fertilizers unit like as fertilizer corporation of
India in shindri ,Bihar and the fertilizer and chemical of India in Cochin ,Kerala was
established. At present there are 57 large scale fertilizers units. The units manufacture an
extensive range of phosphate, nitrogenous and complex fertilizers 37 units are engaged in
manufacturing of Urea while is of them produce calcium ammonium nitrate and ammonium
sulphate. The remaining 20 fertilizers plants produce complex fertilizer and DAP. There is
also a member of medium and small scale industries in operation.
4
Status of Indian Fertilizer Industries
For long Indian farmer use the traditional fertilizer such as manures to grow crops. Though
they were helpful but it became extremely important to meet the demands the countries food
requirement. So the use of modern fertilizers became the need of the hour. Presently the
minister of chemicals of and fertilizer is the administrative unit of two departments.
 Department of chemicals and petro chemicals.

 Department of fertilizers.
There are about 57 large fertilizer plants in the country producing major fertilizers such as
urea, ammonium sulphate, calcium ammonium nitrate etc.
 But the demand for bio fertilizer has increased in the recent times because the
excess use of some of the above fertilizer can seriously affect the crops as
well as health. The demand of bio fertilizer is about 6, 27,000 MT.
Leading fertilizer manufacturing companies of India
Some of the leading fertilizer manufacturing companies of India are;
 National fertilizer Limited (NFL)

 Hindustan fertilizer Corporation (HFC)
 PRADEEP phosphates Limited (PPL)
 Fertilizer & chemicals Travancore Ltd (FACT)
 Pyrites, phosphates & chemicals Ltd (PPCL)
India is today is the third largest producer of nitrogenous fertilizers in the world. There
are at present 63 fertilizer units manufacturing a wide range of nitrogenous and complex
fertilizers, including 38 units producing urea and 9 units producing ammonium sulphate
as a by-product. Besides there are about 79 units producing single super phosphate.
5
The production capacity of nitrogen has increased from a modest 85000 tonnes in 1951-52 to
105.20 lack tones of p205 during the same period. Against the nominal production of 16000
tonnes of nitrogen and 29.76 lack tones of p205 in 1951-52, the country produced 100.86 lack
tones of nitrogen and 29.76 lack tones of p205 during 1997-98
The public sector has been playing a dominant role in the fertilizer industry. The first state
owned fertilizer units were set up in 1951 at Sindri in Bihar which was followed by another
plant at Nan gal in Punjab. With the coming up of another fertilizer plan at Torbay, the
government decided to bring all the public sector fertilizer units under the management of a
single undertaking and the fertilizer corporation of India (FCI) was accordingly incorporated
in January 1961. At present, there are nine public sector undertaking under the administrative
control of department of fertilizers. FCI has now four units one each at sindri (Bihar),
Gorakhpur (U.P), Talker (Orissa) and Ramagundam (Andra Pradesh). Other fertilizer plants
under the control of other undertakings are locates at Bhatinda, Panipat, Tromby, Nmrup,
Cochin, Pradeep, Talcher and Rourkela.
6
COMPANY PROFILE
History of the company:

Shri LaxmiNarayan Chemicals and Fertilizers is a Private Limited Company, registered
under Indian Companies Act, 1956. The company has the paid up capital of 200 lakhs .The
Company was launched on June, 2006 and the production will commence by second week of
March 2007. We have advanced technology of fertilizer granulation with a per day output of
150 MT. The factory is situated in such a locality that transportation by road and by rail is
very convenient. Factory site is about 10 kms from Hubli and 9 kms from Dharwad and is on
the Hubli - Dharwad Road and is located on the National Highway. Dharwad is the District
Head Quarter. Since Hubli is situated in the centre of Northern Karnataka and is an important
commercial centre the availability of trucks is good to districts like Belgaum, Dharwad,
Haveri,Bagalkot, Bellary, Koppal, Davanagere, Shimoga which forms the economic
marketing zone in the radius of 100/200 kms. Apart from the above we have following
advantages: We are equipped with a advanced quality control laboratory for quality assurance
Right from procurement of raw materials, processing, production. Packing and storage are
monitored by well qualified technical staff. Company is very much interested in value
addition to the NPK mixtures by adding micro nutrients. One of our directors himself is
technically qualified doctorate in Soil science which is an added advantage. Company is
having a strong financial backing which will help in purchasing raw material in advance
7
8
Company profile
Nameof the company Shree Laxminarayana Chemicals & Fertilize Pvt.Ltd.
Name of the Proprietors: Mr.Vinayak akalwadi (Chairman)
Mr.Nilakanta akalwadi (Director)
Mr.Anand kalyan (Ass.Director)
Mr.Kiran Anegundi (M.D)
. Address of the Company POLT #29, KIADB industrial area, Rayapur,
Dharwad- 580009.
Area covered 2 acres of land
Total investment 10 cores
Communication Tell NO 0836-2222293
Email : sln hubli@yahoo.com
Land and building Owned
9
VISION AND MISSION
VISION
The vision of the company is to achieve excellence in the selected field of service by bringing
the global acclaim to the company and to leave an everlasting positive imagine the mind of
the people and to develop a team of highly talented and resourceful personnel who help to
achieve the vision. In addition to that we have been approved by ISO9001:2008.
MISSION
1. Achieve sustainable and profitable growth in chemical and fertilizer business.

2. Delight our customer through product quality.
3. Facilitate the growth of employee community
10
GOALS AND OBECTIVES OF THE COMPANY
1. Serves the farmer community.
2. Profit maximization and increasing sales volume.
3. Supply of products at reasonable and fair prices.
4. To meet the growing demand of fertilizers and pesticides.
5. To improve the quality of seeds and ensuring high yield.
6. To develop Agricultural food products.
7. Efficient utilization of plant capacity.
8. To achieve high production.
9. To improve the efficiency of product distribution channels.
10. To achieve leadership in the market.
11. To control the environmental pollution from harmful chemical &
Pesticides.
12. To ensure welfare of labourers.
11
MANAGEMENT SYSTEM OF SLN COMPANY

The management system of SHRI LAXMI NARAYAN PVT.LTD. Is of vertical or functional
type wherein we can see three level of management i.e., top level, low level and middle
level?
Here responsibility accountability is decentralized I.e., it is distribution to the different

level of management. Thus, the management ensures collective efforts and coordination of all
the workers in the management ensures collective efforts and coordination of it is distribution
of all the workers in the organization towards achieving its goals and objectives.
STRUCTURE OF ASSOCIATION MANAGEMENT
CHAIRMAN
MANAGING
DIRECTOR
GENERAL PRODUCTION FINANCE HR MANAGER

MARKETING MANAGER MANAGER
MANAGER
DEALER
SUPERVISOR ASSISTANT
MARKETING
OPERATORS DISPATCH
SALESMAN MANAGER
SKILLED LABORS
12
DEPARTMENTALANALYSIS:
 FINANCE DEPARTMENT
 MARKETIANG DEPARTMENT
 PRODUCTION DEPARTMENT
 ACCOUNTS DEPARTMENT
FINANCE DEPARTMENT:
Finance is the life blood of every business. It is the foundation of every economic
activity. Finance department is a key department of any organization. In our present day
economy, finance is defined as the provision of money man the time when it is required.
Every industry whether large, medium or small scale need finance to carry out business as
finance is the life blood of industry. Without adequate finance, no industry or organization or
enterprise can possible to accomplish its objectives or organizational goals.
In SLN industry department is the central part of the organization, the main objective
of this department is to record each and every transaction that take place in which effect
directly to the organization financially. This department is looking after by Mr. Vadiraj Desai
as he considered with the planning and controlling the financial resources.
a) hopper mail elevator, urea DAPS and MOP and in ‘slat conveyer’, SSP, Benton ate
powder and Neam powder will be stored.
b) Hammer mill elevator and slot conveyer are connected with ‘ Piddle Mixture;
13
FINANCIAL DEPARTMENT:
CHAIRMAN
MANAGING DIRECTOR
FINANCE MANAGER
CASHIER
ACCOUNT ASSISTANT
MARKETING DEPARTMENT:
Marketing is a process of moving people closer for making a decision to purchase,

use, follow, refer and become a competent to another person, society or organization value.
Marketing is a process of identifying the customer wants, developing the products and
making them available for securing customer satisfaction. It deals with market information
product development, preceding, promotions and physical distribution policies.
The SLN is having sufficient distribution channels for its products according to
government of Karnataka, the SLN sales its products to dealers as fixed by the department of
agriculture. Totally, 150 dealers are functioning under SLN Pvt., Ltd. They are scattered all
over Karnataka and to some more out skirts states. The market of products is sole
responsibilities of marketing executives.
14
MARKETING DEPARTMENT:
“SLN” PRODUCTS
“SLN”GENERAL\
MARKETING MANEGER
“SLN”DESPATCHMANEGER
“SLN”DESPACTH EXCUTIVES
DEALERS
CONSUMERS
POTENTIAL DEALERS OF SLN COMPANY LIMITED
1. Karnataka Agro Chemical, Dharawad.

2. Revanasiddeshwar Agro Centre, Dharwad.
3. Swastika Agro Centre, Ranebennur.
4. Kiran Enterprise, Shimoga.
5. Shri Ishwar Fertilizers, Shikaripur.
15
PRODUCTION DEPARTMENT:
The production department of SLN is fully mechanized. As SLN is a capital intensive

and large-scale industry. Its main target being a large-scale industry is to achieve rapid
production. However, it requires huge capital requirements, good working atmosphere,
adequate supply of raw materials and other inputs and availability of efficient labour force.
Thus, the company to be well equipped, and then only it can realize its visions.
The process of chemical fertilizer production can be divided into 3 stages, they are as
follows:
 Primary stage
 Secondary stage (core process)
 Final stage
Primary stage
In this stage raw materials which are required for producing of fertilizer such as urea,
Di-Ammonium Phosphate, MOP single user phosphate, fill materials (Bentonate powder) and
Neam will be stored in the Hoppers through which the production process initializes.
c) In hopper mail elevator, urea DAPS and MOP and in ‘slat conveyer’, SSP, Benton ate
powder and Neam powder will be stored.
d) Hammer mill elevator and slot conveyer are connected with ‘ Piddle Mixture’
Through mixed Material belt conveyer cross belt conveyer. Piddle mixture thoroughly
mixes the raw materials of required quantity of each material. This mixture is passed on to
core or secondary process through mixed materials belt elevator.
16
Secondary stage/ core process
The core process mainly involved in 3 process and they are
a) Water mixing
b) Heating and
c) Cooling
The mixture through belt elevator gets into ‘Granulated Drum’ in which it’s mixed
with required quantity of water and creates moisture.
The ‘Granulated Drum’ is connected directly to ‘dryer drum; which is liked with
‘furnace’ and involved ‘dryer fen’. The water mixture is new supplied with the maximum
temperature through furnace. At the same time, dryer san removes moisture by providing
fresh air. By this process, urea started melting.
The hot mixture is transferred to ‘cooler fan’ and cooler mixture concentrates in
bucket elevator’. Thus, core process there by ends.
Final stage:
At this stage, the cooled material is concentrated in bucket elevators. It will be the
form of cyclical crystal. Usually the proposed diameter of these crystal range from 1.5mm to
4mm so ‘’ dryer cooler” so as to bring them a required shape and size. Finally, the produced
crystal is collected in “finished product Hopper” weight and packaging activities will be
done.
At present the SLN is producing about 100 to 134 tons of fertilizer daily, but project
daily production is 150 tons. Because of this, many efforts have been done in production to
Touch 150. Such as increase works house, over duty payment with high rates,
procurement of some equipment, tools and raw materials and employ additional labours in
seasons.
17
PRODUCTION DEPARTMENT
CHAIRMAN
MANAGING DIRECTOR
GENERAL MANAGER
PRODUCTION MANAGER
ASSISTANT PRODUCTION MANAGER
OPERATERS
SUPERVISON
SKILLED WORKERS
In each shift there are totally 25 workers, which include clerks, operator’s supervisors,
welders and labours. Generally, production depends upon quantity of demand for that
product in the market. Therefore, the demand for fertilizers has great impact on its
production. When there is great demand, the company to produce the fertilizer at large
quantity.
18
ACCOUNTS DEPARTMENT
Accounts departments has always has an upper hand in any organization. It plays a vital role
in ensuring that the funds of the organization are not used in an improver way, and see that
the money spent yields enough return to the company.
The main function of account department is collecting information of finance.
i.e source of finance and payments made during the finance end, in this department various
book are maintain d like journal ,ledger, cost accounts, process account, profit and loss
account, balance sheet.
ACCOUNTS DEPARTMENT
CHAIRMAN
MANAGING DIRECTOR
ACCOUNT MANAGER (1)
ASSISTANT (2)
DETAILSOFSLNPRODUCTS
N.P.K-Nitrate, Phosphate & Potassium are the basic three elements which are essential for
chemical fertilizers. They help us in increasing fertility of soil and ensures high rate of yield
to the farmers. These elements provide to the farmers essential nutrients and other basic
requirement through which a plant can grow healthy. But, it is to be noted that chemicals
have adverse effect on the fertility of soil. Therefore, one should be knowledgeable and
cautious regarding quantities of each chemical while applying them to the fields.
The SLN produces different granulated fertilizers mixtures and the proportion of each
chemical i.e., N,P&K, which differ by one mixture to another.
19
These products are as follows
MONTHS NO.OF.SHIFTES DEMAND SEASONS
June to October 3 High Rainy
November to February 1 Low Winter
April to May 2 Moderate Summer
PROPORAITON (Per 100 kg) & BRAND NAME
Above mixture of granulated fertilizers are most commonly in use and the government of
Karnataka approves and license these products. The company cannot make any changes
or manipulation in these mixtures as they restricted by government of Karnataka 17:17:17
and 20:20:0 are the most popular products amongst all other varieties of the Fertilizers.
N(nitrate) P(phosphate) K (potassium) BRAND name
17 17 17 SHRI LAXMI
20 20 00 SHRI LAXMI
18 10 10 SHRI LAXMI
14 06 21 SHRI LAXMI
15 05 05 SHRI LAXMI
10 20 10 SHRI LAXMI
20
RAW MATERIALS
Now a day’s fertilizer companies are greatly suffering from shortage of required Raw
materials they are not adequately available in our country to meet demands of number of
fertilizer industries located in India is totally dependent of number of fertilizer industries
located in India. Therefore, many of the chemicals are import form foreign courtiers. For
instance, India is totally dependent on Germany for potassium (k) in addition to this; India is
importing phosphoric acid and naphtha from Russia, France, and from Germany to some
extent.
RAW MATIRIALS
SL PARTICULARS OF RAW INGREDIENTS /100KG MONTHLY

NO MATIRIALS QUNANTITY
REQUIDRED
1 Di-Ammonium Phosphate 18% Urea-Nitro 1000mts

(DAP) 46% Potassium
2 Mono- Ammonium 11% Urea-Nitro 700mts
Phosphate (MAP) 52% Potassium
3 Urea 46% Nitrogen 750mts
4 Potash 24% Potassium, 600mts

54% Benton ate powder
5 Super phosphate(SSP) 16% Phosphate 250mtss
6 Neam Cake and Oil ---- 20mts
7 Benton ate powder as a filter ---- 200mts

material powder
21
PRODUCT AND SERVICES:
NPK (Nitrate, Phosphate and Potassium) are the basic three elements which are
essential for chemical fertilizers. They help us in increasing fertility of soil and ensure high
rate of yield to the farmer these element provide to the former essential nutrients and other
basic requirements through which a plant can grow healthy. But it is to be noted that
chemicals have adverse effect on the fertility of soil.
Therefore one should be knowledgeable and cautious regarding quantities of each

chemical while applying them to the fields. Sri Laxmi Narayan Company produces different
granulated fertilizers mixtures and the portion of each chemical i.e. P&K which differ from
one mixture to another.
Raw Material Proportion:
N(nitrate) P (Phosphate) K(Potassium) Weights

17% 17% 17% 50kg
20% 20% 00% 50kg
15% 05% 05% 50kg
14% 06% 21% 50kg
Above mixture of granulated fertilizers are most commonly in use and government of
Karnataka approves and licensed these products. The company cannot make any changes of
manipulation in these mixtures are restricted by government of Karnataka. 17:17:17 and
20:20:20 are the most popular products amongst all other of the fertilizers
22
NPK 17:17:17 Fertilizer:
NPK 17:17:17 Fertilizer, which we make available, is processed using premium

material. We are rated as a trusted Manufacturer and Supplier of NPK 17:17:17
Fertilizer, located in Gulbarga (Karnataka). We offer this NPK 17:17:17 Fertilizer at
the market leading rates. Also, we cater to the bulk requirements of the NPK 17:17:17
Fertilizers.
Product Description
 Contains 17% Nitrogen, 17% P2O5 and 17 % K2O

 17:17:17 contains most important primary nutrients Nitrogen, Phosphorous
Potash in Equal Proportion

 Single most important source of all major nutrients
 Available in free flowing granular form
 Granules are stronger, harder and of uniform size
Features & Benefits
 It has good storage properties

 Due to high water solubility, has a greater mobility in the soil
 Being non- hygroscopic, can be conveniently stored well even in high rainfall areas
23
Applications
 Suitable for all crops both for initial application and top dressing
 Granules are stronger, harder and of uniform size which facilitates easy application
Technical Details
Moisture per cent by weight (maximum) – 1.5
Total Nitrogen per cent by weight (minimum) – 17.0
Ammonia cal nitrogen per cent by weight (minimum) – 5.0
Urea Nitrogen, per cent by weight (maximum) – 12.0
Neutral ammonium citrate soluble phosphates (as P2O5), per cent by weight (minimum)
– 17.0
Water soluble phosphate (as P2O5), per cent by weight (minimum) – 14.5
Water soluble potash (as K2O) per cent by weight (minimum) – 17.0
Particle size: Not less than 90 per cent of the material shall pass through 4 mm IS sieve
and be retained on 1 mm IS sieve. Not more than 5 per cent shall be below 1 mm IS
sieve.
24
NPK 20:20:00 Fertilize:
Made using the best ingredients, the NPK 20:20:00 Fertilizer, which we offer, is processed
in compliance with the set industrial standards. We offer this NPK 20:20:00 Fertilizer at the
market leading rates to the clients. Also, we provide this NPK 20:20:00 Fertilizer in hygienic
packaging.
ProductDescription
 Contains 20% Nitrogen, 20% P2O5 and 00 % K2O

 20:20:00 contains most important primary nutrients Nitrogen, Phosphorous and Potash
in equal proportion
 Single most important source of all major nutrients
 Available in free flowing granular form
 Granules are stronger, harder and of uniform size
Features & Benefits
 It has good storage properties

 Due to high water solubility, has a greater mobility in the soil
 Being non- hygroscopic, can be conveniently stored well even in high rainfall areas
Applications
 Suitable for all crops both for initial application and top dressing
 Granules are stronger, harder and of uniform size which facilitates easy application
25
Technical Details
 Moisture per cent by weight (maximum) – 1.5

 Total Nitrogen per cent by weight (minimum) – 20.0
 Ammonia cal nitrogen per cent by weight (minimum) – 5.0
 Urea Nitrogen, per cent by weight (maximum) – 12.0
 Neutral ammonium citrate soluble phosphates (as P2O5), per cent by weight (minimum)
– 20.0
 Water soluble phosphate (as P2O5), per cent by weight (minimum) – 14.5
 Water soluble potash (as K2O) per cent by weight (minimum) – 00.0
 Particle size: Not less than 90 per cent of the material shall pass through 4 mm IS sieve
and be retained on 1 mm IS sieve. Not more than 5 per cent shall be below 1 mm IS
sieve
Packing.
26
INFRASTRUCTURAL FECILITIES
TRANSPORTATION
VaishnviRoadlinesHubli are providing the necessary transportation service to SLN

industry. The finished goods are dispatch through lorries of Vaishnvi Road Lines And they
provide medium supply of raw materials .the payments are done according to the no of trips
OR according to kilo meters .the prompt service of Vaishnvi road lines have cleared all the
barriers of transportation .
COMMUNICATION
The main source of communication is through telephone media which meets the
overall requirement of communication within the organization. The SLN company conducts
the meeting smoothly who is main agenda is to discuss the proceedings.
WARE HOUSE
It self-sufficient and self-reliantin ware housing the requirements .the industry has its
one ware house with capacity of storing 300tunnes of raw materials and1000 tonnes for
finished goods.
POWER
Even in the matter of power requirement the SLN is self-reliant. It can carry out the
production throughout the day. The storage of power cuts does not affect the production
activity because the company has own electricity generator that could sufficient meet the
power requirement of SLN during power cuts. Generator has capacities of 14HP with Eco
friendly features.
27
COMPEITORS INFORMATION
Fertilizer Company in India
 Brahmaputra Valley Fertilizer Corp.
 Hindustan Copper Ltd.
 Hindustan Fertilizer Corporation
 Madras Fertilizers Ltd.
 Rashtriya Chemicals & Fertilizers
 The Fertilizer Corp. of India Ghathpraba Chemical and Fertilizers, Raibag.
 Tungbadra Chemical and Fertilizer Ltd, Munirabad.
 Ganesh Angara Chemical and Fertilizer Ltd Belure, Dharwad.
28
Top Fertilizer Companies in India

Fertilizer Companies Products Contact Details
Basant Agro Tech India NPK Fertilizers Basant Agro Tech (India) Ltd.,
Limited SSP Fertilizers Sea Lord A-1/3, Cuffe Parade,
SSP Single Super Mumbai 400 005.India.
Phosphate Basant Agro Tech (I) Ltd.
Seeds Near S.T.Workshop, Kaulkhed,
Akola. 444 044.
Phon:0724-2432513.
email:customercare@basantagro.
Com
Bharat Fertilizer Prilled Urea Namrup, P.O. Parbatpur - 786623

Industries Limited Ammonia Dist. Dibrugarh (Assam), India
Fax:0374-2500317 / 2500524
Tel: See link
email: bvfclnam@bsnl.in
Zuari Industries Urea Zuari Industries Limited Jai Kisaan

Limited Bio Fertilizers Bhawan
Seeds ssssZuarinagar - Goa 403 726.
Tel No.: 91-832-2592180
Fax No.: 91-832-2555462
E-mail: shares@zuari.co.in
investor_redressal@zuari.co.in
United Phosphorous Caustic Chlorine United Phosphorus Limited

Limited Industrial Chemicals Uniphos House, Madhu Park
Speciality Chemicals Centre,
White Phosphorus Opp Madhu Park,Chitrakar
Dhurandar
Marg, Khar (West), Mumbai 400
052
Tel : 2646 8000 (Board)
Fax : 26041010
Email : info@uniphos.com
29
SWOT ANALYSIS:
Strengths:
 Employees are more co-ordinated in their Team work.

 Quality of the product is very good and standardized
 The company product has good Customer satisfaction.
 The company is always active in developing new product.
Weakness:
 Shortage of raw materials

 Lack of transportation and communication facilities.
 Less subsidies to the former by the government.
Opportunities:
 To design a new and diverse range of products as per the market needs.
 They are very much interested to enter their foot prints in sheet metal field like
automobile
Threats:
 Facing problems from strong competitors.

 MRP (maximum retail price) Govt of Karnataka fixes this. It can be altered.
 Stiff completion prevailing in market of fertilizer is one of the important threats.
30
CHAPTER – II
RESEARCH METHODOLOGY
INTODUCTION:
The research design refers to pre planning of what researcher does in the study. The design
adopted in the study comes under exploratory and evaluator research. Since data collected
from receivables management of the company.
The data that has been collected from various source and presented in the form
of materialistic information in known as research methodology. Research methodology is a
systematic way to solve any research problem.it may be understood as a science of studying
how research is done scientific.
Needs for the study
The study has been made with special reference SLN Pvt. Ltd., Dharwad. The study covers
the “Receivable Management” in company, taking tools and techniques that have been used
for analysing the Receivable Management and Annual Report of the company constitutes the
most important source of operating and statistical data for judging Receivable Management
of the Organization as well as the methodology for data collection is covered.
 Measure is another component within account receivables management. Traditional

ratios, such as turnover will measure how many times you were able to convert
receivable over into cash.
 Measurement may need to be modified to account for wide fluctuation within the
sales cycle.
 The use of weight can help ensure comparable measurements.
The study would also attempt to identify the various source available for financing of
Receivable Management.
1. The study gives a fair idea of improvement in efficiency of Receivable Management.
2. And also to have proper control over the workings of Receivable Management and
managing the efficiency.
Scope of study
31
The scope of the study includes studying the practices and procedures of bills receivables in
this firm and to analyse the past trend occurred in the firm and to suggest suitable credit
policies was the area of the study.
1. Fostering credit awareness.

2. Understanding the need for a credit policy.
3. Understanding financial statements.
4. Allowing too much credit, or not managing the credit policy carefully enough, could
result is irrecoverabledebts. This represents a loss of income to the company, affecting
both profitability and cash flow. So credit management has to be done.
5. Applying financial analysis of financial statement.
6. To reduce administrative cost and enhance office productivity.
7. To manage you sales by measuring trends and analyzing performance.
8. How the managed calculation to fit your business needs.
Limitation for study
1. The major part of the study is based on the observations at SLN Pvt. Ltd., Dharwad.
2. My study is restricted to the study of Finance Department and rest of the department of
the Organization is not studied in depth.
3. The report is subjected to the current situation or prevailed during the particular period of
the study the report changes in the working system of the company after the preparation
of this report.
OBJECTIVES OF THE STUDY
32
1. Define a procedure by which assets are identified and maintained in the Receivables in
the company.
2. To file the Receivable Management system within the values and ways manuals..
3. To study the present credit policy of the company, analyzing and giving relevant
suggestions to improve the credit policy.
4. To understand how to measure the key variables and use them to evaluate quantitatively if
either relaxing or tightening a firm’s credit standards.
5. To know the three basic components of a firm’s credit terms, the effect of changes in each
of them on key variables and profits and the procedure for evaluating the quantitative
effects of the proposed changes.
DATA COLLECTION METHOD
Data collection methods are an integral part of research design. Problem researched with the
use of appropriate methods greatly enhance the value of the research
In this study, the data are collected from the secondary source. Secondary data are
indispensable for most organizational research. Such data can be internal or external to the
organization and accessed through the internet or perusal of recorded or published
information.
Secondary data can be used, among other things, for forecasting sale by considering models
based on past sales figure, and though extrapolation.
SOURCES OF DATA COLLECTION:
33
PRIMARY SOURCES:
Primary data collection has been collected through;
 Direct contract with officials of the concerned department,

 The data collected is through personal interaction with the finance officer, and receivable
department authorities.
 Interview schedule observation, during observation, notes were made and complied for
the study. The interviews were conducted among the executive of the company.
SECONDARY SOURCES:
 Annual report of the company, Balance Sheet, Profit, Loss Accounts and trial balance
sheet of the past 3 years and audited reports of the Firm.
 Formal discussion with staff.
 Book related to accounting financial management.
TOOLS FOR DATA ANALYSIS
34
RECEIVABLES MANAGEMENT
INTRODUCTION TO RECEIVABLES:
Receivables, also termed as trade credited or debtors are component of current asset. When a
firm sells its product credit, account receivables are credited.
Account receivables are the money receivables in some future date for the credit sale of
goods and services at present. These days, most business transaction are the in credit. Most
companies, when they face competition, use credit sales as an important tools for the sale
promotion. A sale promotion tool, credit sale enhance firm’s sales revenue and ultimately
pushes up the profitability. But after the credit sale has been made, the actual collection of
cash may be delayed for months.
As these late payments stretch out over time, they may cause substantial drop in a company’s
profit margin. Since the extension of credit involves both cost and benefits, the firm’s
manager must be able to measure them to determine the ultimate effect of credit sales. In this
prospective, we define the receivables management as the aspect of a firm’s current assets
management, which is concerned with determining optimum credit policy associated to a
firm, such that the benefit from extensions of the credit is greater than the cost of maintaining
investment in accounts receivables.
MEANING OF RECEIVABLES MANAGEMENT
Receivables means book debt or debtors. So receivables arises if the goods the sold on credit.
The sale of goods on credit is an essential part of the modern competitive system.
Receivables are the claim of the company against its customer. The receivables are the
carried for the customers. The period of the credit depends upon the credit policy followed by
the firm. Debt involves an element of risk and bad debts also. Hence it calls for careful
analysis and proper management. The gaols of receivables management is to maximise the
value of the firm by achieving a trade-off between risk and profitability.
ACCOUNT RECEIVABLES DEFINITION
35
According to Robert .N. Anthony “account receivables are amounts owed to the business
enterprise, usually by its customers. Sometimes it is broken down into trade accounts
receivables; the formers refers to amount owed by customers, and latter refers to amount
owed by employees and others;
According to PrasannaChandra, “The balance in the receivables account would be; average
daily credit sales x average collection period.”
“Receivables are also known as accounts receivables trade receivables, customer’s

receivables book debts or trade credit management.”
OBJCTIVES OFRECEIVABLES MANAGEMENT
In the words other f S.E. Bolton the objective of receivables management is “to promote sale
and profits and until that point is reached where the return on investment in further funding of
receivables is less than the cost of funds raised to finance that additional credit. “
The following are the objectives:
 To promote sale and maximise the profits

 To obtain optimum value of sales
 To control the cost of receivables such as
A. Cost of collection
B. Administrative expenses
C. Bad debts (default) and opportunity cost of funds
 To maintain debtors at minimum
 To offer cash discount suitably depending on the cost of receivables
 To increase credit sale
 To optimize the amount of sale
 To optimize investment in receivables
 To minimise cost of credit
Following are the areas covered by receivables management
36
 Credit Analysis
 Credit Terms
 Financing of Receivables
 Credit Collection
 Monitoring of Receivable.
Factors affecting the receivables
I. Level of sale
The volume of sale is the best indicator of accounts receivables. It differs from one firm to
another.
II. Credit policy
The credit policy are another major force of determine in deciding the size
of the accounts receivables. There are two types of credit policies.
III. Terms of trade
The terms of the trade are normally bifurcated into two categories viz credit
period and cash discount.
The benefits of effectively managing the receivables asset are:
• Increased cash flow

• Higher credit sales and margins
• Reduced bad debt loss
• Lower administrative cost in the entire revenue cycle
• Decreased deductions and concessions losses
• Enhanced customer service
• Decreased administrative burden on sales force
These benefits can easily total millions in profit and tens of millions of cash flow in a year.
Costs
37
The major categories of costs associated with the extension of credit and accounts receivables
are:
1. Collection Cost
2. Capital Cost
3. Delinquency cost
4. Default cost
 Collection Cost:
Collection costs are administrative costs incurred in collecting the receivables from
the customers to whom credit sales have been made.
 Capital Cost:
The increased level of accounts receivable is an investment in assets. They have to be
financed thereby involving a cost to meet the firm’s own obligation while waiting for
payment from its customers.
 Delinquency Cost:
This cost arises out of the failure of the customers to meet their obligations when
payment on credit sales becomes due after the expiry of the credit period.
 Default Cost:
The firm may not be able to recover the over dues because of the inability of the
customers. Such debts are treated as bad debts and have to be written off as they
cannot be realized.
Benefits
38
Apart from the costs, another factor that has a bearing on accounts receivable management is
the benefit emanating from credit sales. The benefits are:
 Credit sale is oriented to sales expansion either by increased sales to existing customers or
to attract new customers.
 Credit sales enable the firm to protect its current sales against emerging competition. Here
the motive is sales retention.
 A relatively liberal credit policy and therefore, higher investments in receivables will
produce large sales.
 The extension of trade credit has a major impact on working capital, sales, costs and
profitability.
CREDITPOLICIES
The accounts receivable management should aim at a trade-off between profit (benefit) and
risk (cost). That is to say, the decision to commit funds to receivables will be based on a
comparison of the benefits and costs involved, while determining the optimum level of
receivables. The credit policy of a firm provides a framework to determine
 Whether or not to extend credit to a customer?

 How much credit to extend?
The credit policy decision of a firm has the following dimensions
1. Credit Standards
2. Credit Analysis
3. Credit terms
4. Collection Policy and Procedures
39
1. Credit Standards:
The term credit standards represent the basic criteria for the extension of credit to customers.
The quantitative basis of establishing credit standards are factors such as credit ratings, credit
references, average payment period and certain financial ratios. The overall standards are
divided into (a. tight or restrictive and b. liberal or non-restrictive). The credit standards have
implications on the collection costs, investment in receivables, bad debt expenses and sales
volume.
2. Credit Analysis:
Besides establishing credit standards, a firm should develop procedures for evaluating credit
applicants. Two basic steps are involved in the credit analysis and investigation process.
 Obtaining credit information through internal sources such as employees, previous

records etc and external sources such as published financial statements, bank and trade
references and credit bureau reports.
 Analysis of credit information on the basis of the credit worthiness of the customer and
quantum of credit to be granted.
3. Credit Terms:
The management must now determine the terms and conditions on which trade credit will be
made available. The stipulations under which goods are sold on credit are referred to as credit
terms. Credit terms have three components.
 Credit period, in terms of the duration of time for which trade credit is extended-during
this period the overdue amount must be paid by the customer.
 Cash discount, if any, which the customer can take advantage of, i.e., the overdue amount
will be reduced by this amount.
 Cash discount period, which refers to the duration during which the discount can be
availed of. It is usually written in abbreviations, e.g., ‘2/10 net 30’. Here ‘2’ signifies rate
of cash discount (2%), ‘10’ represents time duration (10 days) and ‘30’ means maximum
period for which credit is available is 30 days.
40
4. Collection Policy and Procedure:

They refer to the procedures followed to collect accounts receivable when, after the expiry of
the credit period they become due. These policies cover two aspects.
 Degree of collection effort- it can be either a strict collection effort or a lenient one.
 Type of collection effort- it includes letters, reminders, telephone calls, personal visits,
help of collection agencies or finally legal action.
FIVE SIMPLE STEPS TO ACCOUNTS RECEIVABLE RECOVERY:

As a small business owner, one of the most challenging tasks of owning a small business is
collecting on past due accounts.
STEP ONE: The first step in the collection process is to send the debtor a past due
INVOICE stating their account is 30 days past due and payment must be received within 14
days or their account maybe subject to further collection efforts. It is important to DO
CUMENT each contact you make with the debtor; this will make your job easier down the
line for more aggressive collection approaches.
STEP TWO: After 14 days, contact the debtor by PHONE and kindly REMIND them of
their outstanding debt, because in some cases they may have simply forgot about the bill and
sometimes will pay in full or make partial payment. After making your phone call to the
debtor, allow an additional 14 days for payment to be received before sending a letter of
demand for payment.
STEP THREE: A Demand for payment may be needed after the debt is 60 days past due,
include all documentation supporting the debt. Mail a letter, along with a copy of the past due
invoice, and any other supporting documentation to the debtor. State in the letter that
payment must be received within 10 days or the account will be turned over to a collection
AGENCY.
STEP FOUR: Collection agency services may be needed to collect debts beyond 60 days
past due. It is important to start the collection process early. Do not wait until the account is
41
1-2 years past due, because as time passes the debt becomes increasingly DIFFICULT to
collect and collection agencies typically charge higher fees for older accounts. The collection
agency will then mail the client a validation, which is a letter that states the balance due and
to whom the original creditor the debt is owed. The debtor then has 30 days to dispute the
debt, if after 30 days no dispute is received, the debt is assumed VALID and the collection
process continues. If you decide to send a account to a collection agency. It is very important
that you cease all communications with the debtor. Be sure to give the collection agency all
the documentation available about the debtor as it will make the collection process easier
with the more information you can provide.
Some of the specific technics and process for speedy collection of

receivables from customers or ensuring prompt payment for receivables:
I have studied receivables management of SLN PVT LTD receivables by studying trade
receivables, average debtor,debtors turnover ratio, debtors collection period, trade receivables
to current asset ratio and trade receivables to total asset ratio which are as follow
AVERAGE DEBTORS:
“In accounting the term debtors collection period indicates the average time taken to collect
trade debts. In other words, a reducing period of time an indicator of increasing efficiency. It
enables the enterprise to compare the real collection period with the granted\theoretical credit
period “
Average debtors = Total Receivables
DEBTORS TURN OVER RATIO:
This is also called “Debtors velocity “or “Receivables Turnover”. A firm sells goods on
credit and cash basis. When the firm extends credits to its customers, book debts (Debtors or
Account Receivables) are credited in the firm’s account. Debtors expected to be converted
42
into cash over short period and thus included in current assets. Debtors includes the amount
of Bills Receivables and book debts at the end of accounting period. It is most essential that a
reasonable quantitative relationship between Outstanding Receivables and Sale should
always be maintained. If the firm has not been able to collect its debtors within a reasonable
time, its funds are unnecessarily locked up in Receivables. Infunds are unnecessarily locked
up in Receivables. In such case short-term loans have to be arranged for paying off its current
liabilities. The liquidity position of the firm depends on quality or liquidity of debtors –
Debtors Turnover and Average collection period.
Debtors turnover = Total sales – Returns
Average debtors
DEBTORS COLLECTION PERIOD:
“In accounting the term Debtors Collection period indicates the average time taken to collect
trade debts. In other words, a deducing period of time is an indicator of increasing efficiency.
It enables the enterprise to compare the real collection period with the granted
period/theoretical credit period “
Debtors collection period= No of days in a year
Debtor’s turnover ratio
TRADE RECEIVABLES TO CURRENT ASSET RATIO:

“The current ratio is mainly used to give an idea of a company’s ability to pay back its
liabilities (debt and accounts payable) with its assets (cash, marketable securities, inventory,
43
and accounts receivables.) As such, current ratio can be used to make a rough estimate of a
company’s financial health.”
Trade receivables to current asset ratio=Trade receivables of the following year
Total current asset of the following year
CHAPTER - III
DATA ANALYSIS
Trade credit arises when a firm sells its products or services on credit and dos not receive
cash immediately. It is an essential marketing tool, acting as a bridge for the movement of
goods through production and distribution stages to consumers. Trade credit creates Accounts
Receivables or Trade debtors (also referred to as Book Debts in India) that the firm is
expected to collect it in the near future.
Receivables Management constitutes a major part of the Operating Cycle, as all the credit
granting decisions, collection decisions and collection efforts are to be carried out by
receivables management. The length of Operating Cycle depends on the type of collection
effort carried out by the company.
Table no 1:It showing outstanding Trade Receivables.
44
Year Trade Receivables Growth rate

(Rs)
2013-2014 74,33,196.94 46%
2014-2015 1,92,84,807.47 61%
2015-16 1,87,58,518.32 -8.40%
2016-17 4,14,44,266.38 54.73%
(Source: Annual report)
Graph 1:It showingTrade Receivables
TRADE RECIEVABLES
45000000
40000000
35000000
TRADE RECEIVABLES
30000000
25000000
20000000
TRADE RECIEVABLES
15000000
10000000
5000000
0
2013-14 2014-15 2015-16 2016-17
YEARS
45
GRAPH 1:
GROWTH RATE
70%
60%
50%
GROWTH RATE
40%
30%
20%
10%
0%
2013-14 2014-15 2015-16 2016-17
-10%
YEARS
GROWTH RATE
Analysis and Interpretation
From the above table & chart, Vertical Axis represents the Outstanding Trade receivables,
whereas the Horizontal Axis represents the Year.
The above Table & Chart shows that for the year 2013-14 the trade receivables were Rs
74,33,196.94, it increased in 2014-15 trade receivables were Rs1,92,84,807.14, it decreased
in 2015-2016 trade receivables were Rs.1,87,58,518.32 and it increased in 2016-2017 the
trade receivables were Rs4,14,44,266.38.
Hence, by referring to the above table &analysing the above chart, the growth rate was 46%
in the year 2013-14, 61% in the year 2014-15, (-)8.40% in the year 2015-16 and the year
2016-17. The company sold on credit more in the year 2016-17 Trade receivables are
4,14,44,266.38 so the growth rate was increased in this year from (-)8.40% to 54.73.
Here, the company has trade receivables very high in the year 2016-17. The company ready
to credit trade with customers for the purpose of developing and sale maximising.
Table no 2: it showing calculation of average debtors.
46
Year Total Receivables Avg Debtors

2 (Rs)
2013-14 74,33,196.94 37,16,598.47
2014-15 1,92,84,807.47 96,42,403.735
2015-16 1,87,58,518.32 93,79,259.16
2016-17 4,14,44,266.38 2,07,22,133.19
GRAPH2:
47
AVERAGE DEBTORS
25000000
20000000
AVG DEBTORS
15000000
10000000
5000000
0
2013-14 2014-15 2015-16 2016-17
YEARS
avg debtors

From the above table & chart, Vertical Axis represents the Average Debtors, whereas the
Horizontal Axis represents the Year.
The above Table & Chart shows that for the year 2013-2014 Average Debtors were Rs
37,16,598.47, for the year 2014-15, it has increased from Rs.37,16,598.47 to Rs.96,42,403.73
in the year 2015-16, has decreased to Rs. 96,42,403.73 to Rs.93,79259.16, in the year 2016-
17and increased from Rs.93,79259,16 to Rs. 2,07,22,133.19.
Hence, by referring to the above table &analysing the above chart, Here the average debtors
is very less in the year 2013-14 because the company sold products on credit is low. And in
the year 2016-17 the average debtors are more, the company sold product on credit is more.
Table no 3: It showing Debtors Turnover Ratio.
48
Debtors Turnover
Year Net sales Average debtors ratio
2013-14 123700208 3716598.47 3%
2014-15 180175936 9642403.735 18%
2015-16 177155072 9379259.16 18%
2016-17 115225312 20722133.19 5%
GRAPH 3:
49
DEBTOR TURNOVER RATIO
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
2013-14 2014-15 2015-16 2016-17
YEAR

From the above table & chart, Vertical Axis represents the Debtors turnover ratio, whereas
the Horizontal Axis represents the Year.
The above Table & Chart shows that for the year 2014 the Debtors turnover ratio was 3 times
and for the year 2015 the Debtors turnover ratio was 18 times and for the year 2016 the
Debtors turnover ratio was 18 time and for the year 2017 the debtor turn0ver ratio was 5.
Hence, by referring to the above table &analysing the above chart, the Debtors turnover ratio
has increased from 3 to 18 times in the year 2015 and from 18 to 18 times in the year 2016
and from decreased 18 to 5 which indicates that the credit collection policy has been
improved and it increases the solvency position of the company.
Table no 4: It Showing Debtors Collection Period.
50
Year No of days in a year Debtors collection

Debtors turnover ratio
Period (days)
360/3
2013-14 120
2014-15 360/18 20
2015-16 360/18 20
2016-17 360/5 72
Source: (Annual report)
GRAPH 4: It showing debtor’s collection period.
51
DEBTORS COLLECTIN PERIOD

DEBTORS COLLECTION PERIOD
120
100
80
60
40
20
0
2013-14 2014-15 2015-16 2016-17
YEARS
DEBTORS COLLECTIN PERIOD

From the above table & chart, Vertical Axis represents the Debtors collection period, whereas
the Horizontal Axis represents the Year.
The above Table & Chart shows that for the year 2013-14 the Debtors collection period was
120 days, it decreased from 120 to 20 day for the year 2014-15, again it happens same in the
year 2015-16 the collection period was 20 days and for the year 2016-17 it increased 20 to 72
days.
Hence, by referring to the above table &analysing the above chart, the collection period is
120 days in the year 2013-14 and 72 days in the year 2016-17 this collection period is more,
20 days are in the year 2014-15 and 2015-16this collection period is an average period.
Debtor collection period means prompt collection and better management of receivables.
Table no 5: It showing trade receivables to current asset ratio.
52
In Percentage
Year Working note Ratio (%)
7433196.94
2013-14 0.09 9%
78175282.46
19284807.14
2014-15 0.25 25%
74202629.29
18758518.32
2015-16 0.16 16%
113641792.67
41444266.38
2016-17 0.38 38%
107007688.36
GRAPH 5: It showing trade receivables to current asset ratio.
53
TRADE RECEIVABLES TO CURRENT ASSET RATIO
40
35
30
PERCENTAGE
25
20
15
10
5
0
2013-14 2014-15 2015-16 2016-17
YEARS
TRADE RECEIVABLES TO CURRENT ASSET RATIO

From the above table & chart, Vertical Axis represents the year, whereas the Horizontal Axis
represents the Trade Receivables to current asset ratio.
The above Table & Chart shows that for the year 2013-14 the trade receivables to current
asset ratio was 9 (%),it has increased from 9% to 25% in the year 2014-15, it decreased from
25% to 16% in the year 2015-16 and it has increased form 16% to 38% in the year 2016-17.
Hence , by referring to the above table &analysing the above chart, the trade receivables to
current asset ratio When compared to all the four years the maximum portion of the trade
receivables contributed in the current asset was in the year 2017 which was 38(%).
TABLE NO 6: It showing trade receivables to total asset ratio.
54
Year Working note Ratio In Percentage

(%)
7433196.94
2013-14 0.06 6%
107592245.46
19284807.14
2014-15 0.18 18%
102750320.29
18758518.32
2015-16 0.13 13%
143545259.64
41444266.38
2016-17 0.30 30%
135420819.17
GRAPH 6: It showing trade receivables to total asset ratio.
55
TRADE RECEIVABLES TO TOTAL ASSET RATIO
30
25
PERCENTAGE
20
15
10
0
2013-14 2014-15 2015-16 2016-17
YEARS
TRADE RECEIVABLES TO TOTAL ASSET RATIO

From the above table & chart, Vertical Axis represents the year, whereas the Horizontal Axis
represents the Trade Receivables to total asset ratio.
The above Table & Chart shows that for the year 2013-14 the trade receivables to total asset
ratio was 6 (%), it has increased from 6% to 18% in the year 2014-15, it has decreased from
18% to 13% in the year 2015-16 and it has increased from 13% to 30% in the year 2016-17.
Hence, by referring to the above table &analysing the above chart, the trade receivables to
total asset ratio has high in the year 2016-17. The trade receivables to total asset ratio is high
compare to all 4 years it has 30% trade on total asset ratio.
CHAPTER - IV
56
FINDINGS
FINDINGS:
 When compared the outstanding receivables in all the four respective years 2013-14,
2014-15, 2015-16 and 2016-17.In the year 2013-14 the outstanding receivables were ₨
7433196.94.The company’s maximum amount of outstanding receivable was ₨
41444266.38 in the year 2016-17. This reveals that the collection efforts or the policy in
the year 2016-17 was not effective.
 when compared to the following four years 2013-14, 2014-15, 2015-16 and 2016-17 the
company’s outstanding trade receivables to current asset ratio is more in the year 2015-16
which was 38%,which indicates that the maximum amount of the current asset were of
trade receivables, where the company had to make reserves for the working capital.
Whereas 9(%) in 2013-14, 25(%) in 2014-15, 16(%) in 2015-16 and 38(%) in the year
2016-17.
 SLN Pvt Ltd. Has incurred a profit in the years 2013-14, 2014-15, 2015-16 (₨
427136.04,5702339.05,6304276.59).
 In the over view of the company’s collection policy the company applies a liberal
collection policy which may affect the insolvency position of the company.
 The company is enjoying the profit during the period of study.
 The company is having more external fund.
 The company sufficiently utilized available resource
CHAPTER – V
57
SUGGESTIONS
SUGGESTION:
 Based upon the credit period allowed to the debtors, if the debtors make payment within
15 days of the credit period allowed, the Company in respect to early & prompt payment
may allow certain amount of discount to its debtors, which may in some respect increase
the goodwill of the Company.
 The Company can give its customers (debtors), corporate gifts on annual bases in order to
boost their loyalty towards prompt payments for the credit period allowed.
 Improved your quality and decrease credit period.
 The company should reduce its credit collection period.
CHAPTER – VII
58
BIBLIOGRAPHY, REFERENCE AND ANNEXURE
BIBILIOGRAPHY
 Company Manual & Financial statements.
 Web-site www.sln.co.in
 Previous year report
REFERENCE
 Financial Management (By I.s M PANDEY)
 Financial management(By G.B BALIGER)
ANNEXTURE
 P & L A/c.
 Balance Sheet
59

SLN Project

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

SLN Project

Hochgeladen von

Copyright:

Verfügbare Formate

S.L.

N CHEMICALS AND FERTILIZERS, PVT LTD

S.NO. CHAPTER NAME Page No

02 INDUSTRY PROFILE& COMPANY PROFILE

So project is undertaken on “Study on receivables management of S.L.N CHEMICAL

 To serve as the basis for the future operation.

INDUSTRY PROFILE AND COMPANY PROFILE

Status of Indian Fertilizer Industries

 Department of chemicals and petro chemicals.

Leading fertilizer manufacturing companies of India

Some of the leading fertilizer manufacturing companies of India are;

 National fertilizer Limited (NFL)

History of the company:

Nameof the company Shree Laxminarayana Chemicals & Fertilize Pvt.Ltd.

Name of the Proprietors: Mr.Vinayak akalwadi (Chairman)

Mr.Nilakanta akalwadi (Director)

Mr.Anand kalyan (Ass.Director)

Mr.Kiran Anegundi (M.D)

. Address of the Company POLT #29, KIADB industrial area, Rayapur,

Area covered 2 acres of land

Total investment 10 cores

Communication Tell NO 0836-2222293

Email : sln hubli@yahoo.com

Land and building Owned

VISION AND MISSION

1. Achieve sustainable and profitable growth in chemical and fertilizer business.

GOALS AND OBECTIVES OF THE COMPANY

1. Serves the farmer community.

2. Profit maximization and increasing sales volume.

3. Supply of products at reasonable and fair prices.

4. To meet the growing demand of fertilizers and pesticides.

5. To improve the quality of seeds and ensuring high yield.

6. To develop Agricultural food products.

7. Efficient utilization of plant capacity.

8. To achieve high production.

9. To improve the efficiency of product distribution channels.

10. To achieve leadership in the market.

11. To control the environmental pollution from harmful chemical &

12. To ensure welfare of labourers.

MANAGEMENT SYSTEM OF SLN COMPANY

Here responsibility accountability is decentralized I.e., it is distribution to the different

STRUCTURE OF ASSOCIATION MANAGEMENT

GENERAL PRODUCTION FINANCE HR MANAGER

Marketing is a process of moving people closer for making a decision to purchase,

POTENTIAL DEALERS OF SLN COMPANY LIMITED

1. Karnataka Agro Chemical, Dharawad.

The production department of SLN is fully mechanized. As SLN is a capital intensive

Secondary stage/ core process

The core process mainly involved in 3 process and they are

ASSISTANT PRODUCTION MANAGER

The main function of account department is collecting information of finance.

ACCOUNT MANAGER (1)

These products are as follows

MONTHS NO.OF.SHIFTES DEMAND SEASONS

June to October 3 High Rainy

November to February 1 Low Winter

April to May 2 Moderate Summer

PROPORAITON (Per 100 kg) & BRAND NAME

N(nitrate) P(phosphate) K (potassium) BRAND name

SL PARTICULARS OF RAW INGREDIENTS /100KG MONTHLY

1 Di-Ammonium Phosphate 18% Urea-Nitro 1000mts

3 Urea 46% Nitrogen 750mts