iffco rehan

RESEARCH PROJECT REPORT

ON

“Analysis of Financial Statement Judeging the Financial Position of IFFCO”

Submitted in Partial Fulfilment of Master of Business Administration

Programme : 2006 - 08of

Uttar Pradesh Technical University, Lucknow

Under the Supervision of Submitted by:- Ms. Sandhaya Singh Name : Rehan Akhtar MBA Department, Roll No. : 4037 S.R.M.S.C.E.T. , Bareilly

Faculty of Management ScienceShri Ram Murti Smarak College of Engineering & Technology, Bareilly

Shri Ram Murti Smarak College of Engineering & Technology,

Bareilly (U.P.)

Faculty of Management ScienceCertificate

This is to certify that Mr. Rehan Akhter, a student of MBA-IInd Semester

has completed her Research Report titiled “Analysis of Financial Statement

Judeging the Financial Position of IFFCO” assigned by MBA Department

and under my Supervision.

It is further certified that He has personally prepared this report that is the

result of his personal survey/observation. It is of the standard expected of MBA

student and hence recommended for evaluation.

Supervisor

( Mr. Sandhya Singh )Above statement is endorsed.

( Prof. S.P. Gupta ) Director General

PREFACE

A comprehensive practical study of management is a supplement to the theoretical classroom

knowledge. It helps to understand the subject more precisely.

This report tries to outline idea of professional world & helps in understanding the pragmatic

aspect of management function. Own observations are significant towards the contribution in

learning the subject. The report is therefore designed as a reference of organization functioning

rather than copy down instrument.

The purpose of vocational training is to make management student familiar with day to day

functioning of business. The present report is an effort in this direction

.

My humble endeavor & motive in presenting the project report is to impart a balanced

introduction & knowledge of HRD, which is an important integral part of personal management.

It is hoped that this project will serve as a supportive document to research worker as efforts has

been tired to make this report an informative, stimulating & self-explanatory.

ACKNOWLEDGEMENT

The extensive endeavor, bliss and euphoria that accompany the successful completion of any

task would not be complete without the expression of gratitude to the people who made it

possible. I take this opportunity to acknowledge all those whose guidance and encouragement

has helped me in winding up this project.

I am really grateful to my guide Mr. ………(Asstt. Manager P&A Department) for guiding

and providing me with necessary help throughout the project. Without his critical and timely

suggestion, this project would never have been possible.

I would like to thank him for assigning me the project and for their help and

cooperation. Besides this I would like to thank Mr………. (Sr. Manager Training) & Mr.

……….. (Asstt. Manager Training) who gave me the opportunity to do summer training in his

Organization.

I wish to express my special thanks and Regards to Dr ……Dr…… & Other

Faculty & Staff faculty of RBMI who was my guide my in charge of summer training, S.R.M.S

BAREILLY, who had me the necessary tips and supervision to carry out my summer training

project and to prepare the report.

Unfortunately, the list of expression of thank, no matter how extensive I is

incomplete and inadequate Last but not the least, I would like to extend my heartfelt gratitude to

all those who had directly or indirectly responsible for the successful completion of the project.

REHAN AKHTAR M.B.A.

TABLE OF CONTENT

CHAPTER – 1

Introduction.

Scope of Study.

Objective of Study.

Methodology.CHAPTER – 2

Company Profile and Current Financial Position of IFFCO.

CHAPTER – 3

Comparison of Financial Statement of IFFCO.

Analysis of Previous year’s Profit & Loss Statement.

CHAPTER – 4

Finding & Suggestion.

CHAPTER – 5

Limitation of Study.

CHAPTER – 6 Bibliography.

INTRODUCTION OF THE TOPIC

“Analysis of financial statement for judging the financial position of IFFCO”

The analysis of financial statement allows comparison between one enterprise to

another. The analysis let’s to the measure of performance of organization and to

Know its financial position in the market with the help of financial statements one

can come to know the essentials in both profit and non profit organization.

Analysis of financial statement and judging the financial position are contradictory

to each other which go assesses the financial position manager company through

the working out of the return of capital , debt-equity ratio, cost of capital each

sources etc, and comparison of the capital structure with that of similar companies.

Financial statements are indicate of two significant factors profitability and

“financial soundness “Analysis and Interpretation are complantary to each other .

Interpretation requires analysis , while analysis useless without interpretation

“analysis “means methodical classification of data given in financial statement and

“ Interpretation explaining the meaning and significant of the data so simplified .

Financial analysis is also done according to the financing of the organization .In

this research project report I will study the method of financial analysis with the

analysis of financial statement and interpret the financial position of IFFCO.

Objective of the study

To find out the financial position of the IFFCO

To find out the annual turnover of the IFFCO.

To analysis the factor that influence that financial statement of

IFFCO.

To compare the current financial position to the previous financial

position.

To analyze the profitability of IFFCO.

COMPANY PROFILE

Indian farmer fertilizer cooperative limited IFFCO was established on

3rd November, as a Multiunit Cooperative Organization with board objectives of

augmenting fertilizer production ensuring fertilizer availability at farmer, door

step, strengthening cooperation fertilizer distribution system & education, training

& guiding the farmer for improving productivity & rural economy.

From its very inception, IFFCO has been performing exceedingly well.

In fact, IFFCO’s name has assumed the hallmark of success. Over the years, it has

grown in stature strength, & become the light beacon for other, in just three

decades; it has out to be an institution with immense contribution in National

Progress.

It is the federation of more than 35,000 societies, most of them being

village cooperatives spread all over in sixteen states & three union territories.

IFFCO presently own four most modern plants at Kalol & Kandla in

Gujarat & Phulpr & Aonla in U. P. & Paradeep in Udisa having a total annual

production capacity of 4.7 million tones of fertilizer material. IFFCO’s all the

plant has been achieving the annual capacity utilization in the range of 112-

120%s.

OBJECTIVE OF COMPANY

During last 35 years of existence, IFFCO has taken a remarkable step

forward has established itself as Asia’s largest fertilizer company. The

board objectives of setting up this venture are as follows:

1) The main trust of IFFCO’s activity is an increasing agricultural

productivity through balanced fertilization.

2) Some of the innovative endeavors of IFFCO in the pursuit of its

commitment to serve the farming community are village and district

adoption programs, intensive fertilizer promotion campaigns and

reclamation of problematic lands.

3) It aims to promote the activities for enriching the life of rural

masses playing a role of catalyst by village adoption.

4) To create a healthy social atmosphere by establishing some health

care centers in clusters of villages.

5) To create scientific awareness among the farmers.

6) To ensure availability of fertilizers at the farmers’ doorstep.

7) Other side of IFFCO is provided relief to rural masses at time of

contingencies and to help them in the treatment of wasteland.

IFFCO has grown steadily since its inception today. It has emerged not

only as the largest fertilizer producing organization in India but also Asia’s

largest fertilizer co-operative.

HIERARCHY OF IFFCO

CHAIRMANAN

BOARD OF DIRECTORS

MANAGING DIRECTOR

FINANCE DIRECTOR

MARKETING DIRECTOR

EXECUTIVE DIRECTOR

(PROJECT)

EXECUTIVE DIRECTOR (GENERAL MANAGER)

GENERAL MANAGER

(KALOL)

GENERAL MANAGER

(KANDLA)

GENERAL MANAGER

(AONLA)

GENERAL MANAGER(PHULPUR)

TRANSPORT ADVISOR

RESEARCH METHODLOGY

DEFINATION

All progress in born of inquiry, doubt is better then confidence. It leads to

enquiry and enquiry leads to invention.

Hudson Maxim

It was the contexts of which the significance of research can well be

understood .increased amount of research make progress possible. Research

inoculates scientific & inductive thinking about organization.

Research methodology is a way to systematically solve the research problem.

But also conceder the logic behind the method we use in our context of our

research study and explain why we are using a particular method of technique and

why we are not using other methods so that research result are capable of being

evaluated either by the researcher or by others.

ORGANISATION STRUTURE OF IFFCO

The organization structure of IFFCO is such as to provide a high

degree of collaboration among the managerial personal. This help in attaining

staff effectiveness. The structures consist of both line & staff managers but

there is clear demarcation in their authorities & responsibility. Through the

structure provides unlimited power to the manager yet most of the manager

believes in benevolent leadership. This is the main reason behind the new

record made by IFFCO.

The Head Office of IFFCO is situated at New Delhi. It has

cooperative staff that plays a link pin role between cooperatives office operating

units of Kalol, Kandla, Phulpur & Aonla units. There are five zones. Each zone

has its own headquarter of each zone is as follows;

Zone Headquarter

North zone Chandigarh

East zone Kolkata

West zone Bhopal

North Central zone Lucknow

South zone Bangalore

Each headquarter has certain no. of neighboring states under it & the

functioning of those states is controlled by the particular headquarter; each state

has a State Office under each zone. Under each state office there is Area Office

& under each Area office there are Service sectors.

The organization Structure of IFFCO consists of Board of Director.

The government of India nominates two member of the board. The member of

cooperatives societies nominates rest of the members. A chairman is the

functional Head of his organization since he has an elected member. There is also

a vice chairman elected by the member of the Board of director.

Once of the members of Board of directors is the Managing

Director. The MD is the Executive Head since he is an appointed member. The

MD is responsible for carrying out all the function of the organization.

The MD controls the function of the following;

Director Marketing

Director Finance

Executive Director (Personal & Administration)

Executive Director (Technical)

Executive Director (Technical service Deptt. / Planning &

Development)

Management

The representative General Body (RGB), which is the general

body, forms the supreme body that guides the various activities of

IFFCO. The RGB consists of:

1. Members of the board of Directors.

One delegate from each of the members societies holding share of

the value of the Rs. 100 thousand and above; such delegate shall be

as per the

2. Provisions of the multi-state Cooperative Society Act / rules as

amend from time to time.

3. Delegates to be elected from amongst the representatives of

members-

Societies (other than members holding shares of the value of Rs.

100 thousand and above) in each state/ union territory at the rate of

one delegate foe every 200.

AONLA UNITE

The flagship of IFFCO, Aonla Unit is located in the Genetic of Uttar

Prudish in Bareilly district about 28 km Southwest on Bareilly Aonla road.

Aonla Unit, Ammonia –Urea complex, is comprised of two phases; Aonla

I and Aonla II.

The total capacity of Aonla Unit including both phases is 5011600 MTPA

for ammonia and 8644600 MTPA for Urea having two streams of

ammonia and four streams of Urea. The natural gas from HBJ pipeline

being supplied from Bombay High is the feedstock for the plants. Aonla I

was commissioned in May 1998 and Aonla II in Dec.1996. Both Aonla I

and Aonla II units are achieving average annual capacity utilization of

116%.

IFFCO Aonla unit is one of the most efficient and quality wise as well as

environment oriented unit so that M/s KPMG Peat Mar wick, a quality

registrar has certified it as ISO:9002 unit and M/s BVQL London has

accredited it as ISO:14001 unit.

PLANTS OF AONLA UNIT

There are mainly four plants in the unit namely:-

1. Ammonia Plant

2. Urea Plant

3. Product Handling Plant

4. Steam and Power Generation Plant

AMMONIA PLANT

There are two stream of Ammonia Plants having the capacity to produce 2x1520

MTDP of liquid ammonia. The technology is based on holder topsoil, Denmark process

with Natural gas and Naphtha as main raw material.

UREA PLANT

There are four streams of urea plant having the capacity to produce 4x1310 MTDP of

urea fertilizer. The technology is based on snamprogetti, Italy of ammonia striping

process.

PRODUCT HANDLING PLANT

Product handling plant is composed of Urea storage known as Silo and packing and

transport activities. Two Silo of 45,000 and 30,000 MT capacity have been provided to

Urea product to ensure continuous urea production even if it is not taken off due to non

–availability of rail wagons or seasonal demand fluctuations.

STEAM AND POWER GENERATION PLANT

To meet the continuous power supply needs of the main plants; capacity power plant

and stem generation facilities have been provided. In this plant, two gas turbines each

having the capacity of 18 MW along with heat recovery steam generation unites have

been provided to cater to the plant needs of power and steam. Additionally, HRU unit

of Ammonia –II add to the steam supply of the complex.

VISION 2010

In order to maintain the sustained pace of remarkable growth being

achieved under the MISSION – 2005, the society is in the Process of

formulating another growth plan “VISION 2010”.

Profitable business a part from investments in the fertilizer sector. In

its foray in to other sectors, the society strengthening cooperative

infrastructure and the fertilizer pricing policy environment in the country

continues to be uncertain. In order to sustain growth and ensure adequate

return the member shareholders on the investment, IFFCO is exploring

opportunities for diversification into other areas of cooperative system with

overall emphasis on strengthening Rural India. Accordingly, the following

main objectives have been kept in view while formulating him “VISION

2010”.

Attaining an annual turnover of Rs. 15000 corer by 2010;

Installation of Ammonia and urea plants including acquisition

of fertilizer units;

Backward integration to meet feed-stock requirements such as

phosphoric acid etc.;

Generation of power;

Exploration / Distribution of hydrocarbons;

Production and marketing of micro-nutrients, seeds, bio-

fertilizer, pesticides etc.;

Value addition to Agro-product and marketing;

Manufacture of Petrochemicals;

Banking and financial services;

Information Technology IT enables services.

QUALITY POLICY

ISO 9001-2000

IFFCO Aonla Unit is committed to achieve satisfaction of its co-operative

society, farming community and customer by manufacturing and supplying

specified quality product, by pursuing:

Improvement of enhancing / maintaining productivity and growth.

Creating safe and healthy working condition and eco-friendly

environment.

Co-operation and team sprite.

Development of Human Resources.

Continual improvement of effectiveness of its quality management

system.

ENVIRONMENT POLICY

Aonla Unit is committed for continual improvement and protection of

environment by setting and renewing its objects and targets through

environmental management system focusing at:

Compliance of legislation related to stack emissions, efficient

discharge, and ambient air and water quality.

Conservation of water resources.

Emergency preparedness for safety of plant and concerned

personnel.

Effluent and waste minimization.

Development of all round awareness and competence on

environmental issues.

MAJOR AWARDS RECEIVED BY IFFCO

KALOL:

Seven awards for all performance from FAI. Two awards for industrial safety from GOI. Awards technical innovation from FAI. Two Rajya Bhasha shields for promoting Hindi. Awards for safety from National safety council, Chicago. PHULPUR:

Four awards for productivity from NPC. Six national safety awards for GOI. Two awards for overall performance from FAI. Two awards for technical innovation from FAI. Three national energy conservation awards. There awards for west environment protection from FAI.

Aonla: Awards for west implemented project (II nd prize) from GOI. Awards for conservation of energy from GOI.

KANDLA:Ten safety awards from National Council, Bombay GOI.Twenty one-safety awards from Gujarat Safety Council, Baroda.Nineteen awards for safety from National safety council, USA.Five awards for overall performance from FAI.Rajya Sabha awards for promoting Hindi.Best productivity awards from NPC.

NOTABLE ACHIEVEMENTS OF IFFCO,

AONLA:

Aonla Project “Mechanical” completion achieved within 36 months

from zero date.

Commissioning of Ammonia plant within 36 days from the process

feed cut-into primary reformer.

Commencement of commercial production in just 42 month from zero

date in spite of in delay in supply of natural gas by M/s GAIL and CO2

compressors by M/s BHEL.

Implementation of Aonla project has been taken as model for future

projects by Govt. of India.

IFFCO has bagged two prestigious National Awards – one for best

project implementation (second prize) by Ministry of programmed

Implementation, Govt. of India and other for technical film new horizons-

Aonla project (second prize) by FAI.

ASCI, Hyderabad has adopted implementation of Aonla project as a

model case study for there general management level courses.

The consumption of energy per tone of urea produced at Aonla has

been record lowest in Indian fertilizer industry.

The project by implemented with a saving of Rs. 30 crores from the

original estimate of Rs. 696 crores.

Doordarshan, Lucknow and Delhi in its National Network presented

the story of the Aonla project highlighting project completion and its

others social activities.

Development of 50 meter inside green belt around the factory to kept

the environ mend cleans.

National Energy Conservation Awards -1995(first prize) in the

fertilizer sector by ministry of power, Govt. of India.

Certificate of Merit from NPC for performance in the year1993-1994.

Financial statements

The financial statements are often an important source of

information or financial decision.

So I examine financial statements in this research report.

My emphasis is not on preparing financial statements which is

the job of accountants-but on understanding the kind of information find

in these statements. I will pay special attention to difference between

accounting value and economic value and the difference between

accounting income and cash flow.

Financial statement serve important function

they provide information how the firm has performed in the past

and what is its current financial position.

They are a convenient device for stakeholder to set performance

norms and impose restriction on the management of the firm.

They provide convenient templates for financial forecasting and

planning.

In my research report the financial statement, show how major topics in

financial management may be keyed to these statements, briefly touches on

taxation, and explain how you can cull cash flow information for financial

statements

Balance sheet of IFFCO 31 march, 2005

Profit & loss account of IFFCO 31march, 2005

Cash flow statements of IFFCO 31 march,2005

All India Share of IFFCO

All India Share of IFFCO (Quantity

in '000 Tonnes)

2004-05

2003-04 2002-03 2001-02 2000-01 99-00 98-99 97-98 96-97 95-96 94-95

N ALL INDIA

Prodn.

11333.2

10633.9 10507.6 10689.5 10942.8 10873.2 10477.3 10083 8592.3 8768.8 7944.3

Cap. Util.

92.6%87.0% 86.6 % 88.3% 92% 98.2% 99.2% 93.2% 98.5% 91.0%

IFFCO Prodn. 2070.8 1977.4 2060.2 1911.6 1879.3 1807.5 1843.6 1497 1019.5 1012.0 1006.7

Cap. Util.

101%98% 102.0 98% 100.0% 109.0% 115.0% 112.0% 106.9% 117.2% 116.6%

Share 18.3% 18.6% 19.6% 17.9% 17.1% 16.6% 17.6% 14.8% 11.9% 11.5% 12.7%

P2O5 ALL INDIA

Prodn.

3996.8

3630.8 3907.4 3835.2 3734.2 3404 3181.2 3058 2559 2593.5 2562.6

Cap. Util.

72%66% 74.7% 75.9% 77.8% 90.5% 95.0% 87.1% 90.7% 90.9%

IFFCO Prodn. 938.4 832.7 949.2 793.3 664.2 708.8 500 478 350.427 360.634 377.214

Cap. Util.

103%101% 115% 109% 118.0% 126.0% 162.0% 154.5% 113.4% 116.7% 122.0%

Share 23.5% 22.9% 24.4% 20.7% 17.7% 21.1% 16.3% 15.6% 13.7% 13.9% 14.7%

TOTAL ALL INDIA

Prodn.

15330.0

14264.7 14415.0 14524.7 14676.9 14277.2 13658.5 13141 11151.3 11362.3 10506.9

IFFCO Prodn. 3009.2 2810.1 3009.4 2704.9 2543.5 2516.3 2343.6 1974.5 1369.9 1372.6 1383.9

Share 19.6% 19.7% 20.9% 18.6% 17.3% 17.6% 17.2% 15.0% 12.3% 12.1% 13.2%

Analysis of the financial Performance of IFFCO

The financial analysis depend primarily on these statements to diagnose financial performance.

It appears that there are principal reasons

As long as accounting biases remain more or lessthe same over time,

meaningful inferences can be drawn by examining trends in raw data and

financial ratios.

Since similar biases characterize various firms in the same industry,

inter firm comparisons are useful.

Experience seems to suggests that financial ,work, if one is aware of

accounting biases and make adjustments for the same.

If properly analysed and interpreted , financial statement can provide

valuable insights in to firm, s performance. Analysis of financial statements is

interest of llenders ,investors ,security analysis ,manager and other . financial

statement analysis may be done for variety of purpose, which may range frome

simple analysis of the short term liquidity position of the firm to comprehensive

assessment of the strengths and weeks of the firms in various areas .it is helpful in

assessings corporate predicting bankruptcy, and assessing market risk.

This resurch project report discusses how information can be extracted from

financial statements for analuysing financial performance.

FINANCIAL POSITION OF IFFCO PREVIOUS FIVE YEAR

Analysis of total sales of fertilisers

In 2002-03 The total sales of fertilizers are 60.11(Lack MT)

In 2003-04 The total sales of fertilizers are 60.54(Lack MT).The sales are

increases 0.43(Lack MT) for the analysis of previous year 2002-03.

In2004-05 The total sales of fertilizers are 64.64(Lack MT).The sales are






Analysis of Sales Performance

In 2002-03The sales performance of complex is 23.39(lakh MT).The sales performance of urea is 36.72(lakh MT).

In 2003-04

The sales performance of complex is 23.52(lakh MT). The sales performance is increase 0.13(lakh MT) for analysis of previous year 2002-03.

The sales performance of urea is 37.02 (lakh MT). The sales performance is increase 0.30(lakh MT) for analysis of previous year 2002-03.

In 2004-05


The sales performance of urea is 36.70 (lakh MT). The sales performance is decrease 0.32(lakh MT) for analysis of previous year 2003-04.

In 2005-06


The sales performance of urea is 50.13 (lakh MT). The sales performance is increase 13.43(lakh MT) for analysis of previous year 2004-05.

Analysis of profit before tax (PBT)

In 2002-03

The profit before tax is 807.09(Rs.crore)In 2003-04

The profit before tax is 512.7(Rs.crore)

In 2004-05


In 2005-06


In 2006-07


Analysis of Profit after tax

In 2002-03The Profit after tax is 557.21 (Rs.Crore)


In 2004-05The Profit after tax is 319.64(Rs.Crore)



Analysis of net worth of IFFCO

In 2002-03The networthr of IFFCO is 3274(Rs. Crore )

In 2003-04The networth of IFFCO is 3110(Rs. Crore )

In 2004-05The net worth of IFFCO is 3301(Rs. Crore )

In 2005-06The net worth of IFFCO is 3555(Rs. Crore )

In 2006-07The networth of IFFCO is 3642(Rs. Crore )

Analysis of turn over of IFFCO

In 2002-03The turn over of IFFCO is 6275(Rs. Crore )





FINDING AND SUGESSION

After serving the organization, I observed that the performance appraisal system at IFFCO, used

the self appraisal form for employees of grades I and below.

Almost ¾ the of the employees were satisfied by the appraisal system existing in the

organization.

Immediate boss was their authorized and the time interval for appraisal process was annually.

Only 63% of the employees told that they were properly communicated before appraisal, which

is a negative factor for them, that should be improve. 80% of their interrelated task becomes easy

due to performance appraisal system.

50% employees interpreted that the appraising result were not discussed with them due to

which there is hindrance created in improving themselves.

Problem regarding this system was that transparency should be maintained. And 80% of

the employees were satisfied by the appraisal system and also by the appraisal method, which

was applied on them.

RCOMMENDATION

1. Now a days performance appraisals purpose is development of individuals to improve

performance on the job and provide emotional security. So, a better method may be

adopted.

2. The techniques being used are mutual goat setting critical incidents and are less

quantitative in nature. Superior stimulates employee to analyze himself and get down

objectives in line with job recruitment, with help and council of the superior. So they

have to shift towards a better system i.e. towards performance management.

3. Negative factor should bed communicated to the employees related to their performance.

4. The appraisal results should be advised to improve his level of efficiency.

5. Remarks should not be given on the relationship between the employee and his superior

that is biasness should not be there.

6. Accounting to the work performed by the employee’s remarks should be given that

means transparency should be there.

LIMITATION OF STUDY

Limitations faced while conducting survey were as follows:

People were a little bit hesitates in filling the questionnaire.

Sometime respondent were found to be in active.

They did not take it seriously.

It was difficult for me to take proper sampling.

Close supervision to check the correctness of responses was not possible due to

limited access to plant & working staff.

Certain confidential matter were not disclose which might have made the findings

a little of the mark & increase the error variances.

BIBLIOGRAPHY

Dr.S.P Gupta Financial Management

M.Y Khan financial Management

Prasanna Chandra financial Management

Annual Report of IFFCO

www.iffco.nic.in

Service rule of IFFCO

Analysis of sales during KHARIF seasons

In 2002 :-

The sales during KHARIF seasons of complex is 9.45(lakh MT). The sales during KHARIF seasons of urea is 17.71(lakh MT). The sales during KHARIF seasons of total is 27.16(lakh MT).

In 2003:-

The sales during KHARIF seasons of complex is 8.37 (lakh MT).Sales is decrease 1.08(lackMT) for the analysis of previous 2002.

The sales during KHARIF seasons of urea is 17.65(lakh MT).Sales is decrease 0.06(lackMT) for the analysis of previous 2002.

The sales during KHARIF seasons of total is 26.02(lakh MT).Sales is decrease 1.14(lackMT) for the analysis of previous year2002.

In 2004 :-

sales during KHARIF seasons of complex is 8.68(lakh MT).Sales is increase 0.31(lackMT) for the analysis of previous year2003

The sales during KHARIF seasons of urea is 17.12(lakh MT).Sales is increase 0.53(lackMT) for the analysis of previous year2003

The sales during KHARIF seasons of total is 25.80(lakh MT).Sales is decrease0.22 (lackMT) for the analysis of previous year2003

In 2005 :-

The sales during KHARIF seasons of complex is 10.84(lakh MT).Sales is increase 2.16 lackMT) for the analysis of previous year2004

The sales during KHARIF seasons of urea is 20.36(lakh MT).Sales is increase 3.24 lackMT) for the analysis of previous year2004

The sales during KHARIF seasons of total is 31.20(lakh MT).Sales is increase5.4 (lackMT) for the analysis of previous year2004

In 2006 :-

sales during KHARIF seasons of complex is 15.10(lakh MT).Sales is increase4.26 (lackMT) for the analysis of previous year2005

The sales during KHARIF seasons of urea is 23.34(lakh MT).Sales is increase2.98 (lackMT) for the analysis of previous year 2005

The sales during KHARIF seasons of total is 38.44(lakh MT).Sales is increase7.24 (lackMT) for the analysis of previous year 2005

Analysis of sales during Rabi seasons

In 2002-03:-

The sales during Rabi season of complex is 13.92(lakh MT)

The sales during Rabi season of Urea is 19.02(lakh MT)

The sales during Rabi season of Total is 32.95(lakh MT)

In 2003-04:-

The sales during Rabi season of complex are 13.92 (lakh MT) .sales

increases 1.22 (lakh MT) for the analysis of previous year 2002-03.

The sales during Rabi season of UREA are 19.37 (lakh MT) .sales

increases .35 (lakh MT) for the analysis of previous year 2002-03.

The sales during Rabi season of total are 34.52 (lakh MT) .sales increases

1.57 (lakh MT) for the analysis of previous year 2002-03.

In 2004-05:-



The sales during Rabi season of UREA are 19.58 (lakh MT) .sales increases




In 2005-06 :-







In 2006-07:-





The sales during Rabi season of total are 47.66 (lakh MT) .sales decreases


COMMUNICATION ON PROGRESS ON GLOBAL COMPACTPRINCIPLES FOR THE FINANCIAL YEAR 2005-06The Indian Farmers Fertiliser Cooperative Limited (IFFCO) is a national levelmulti-unit cooperative society engaged in manufacturing and marketing of chemicalfertilisers. The Society was registered in 1967 and presently having a membershipof over 37,424 cooperatives as shareholders. IFFCO is presently operating fourfactories located at Aonla and Phulpur in Uttar Pradesh, Kalol and Kandla inGujarat and Paradeep in Orissa. IFFCO produced over 6.4 million tonnes offertilizers in 2005-06 and contributed about 18.4% to the total Nitrogen and 23.4%to the total P2O5 produced in India. IFFCO markets its fertlisers throughCooperative Agencies and Member Cooperative Societies.IFFCO supports Global Compact Principles of United Nation and believes inphilosophy of trusty ship and strives for sustainable development. It alwaysemphasizes on the need to protect the environment, human rights, health andsafety of its employees, strengthening the cooperative structure in India, improvingthe living standard of farmers who are the backbones of Indian economy etc. Adetailed report on progress of various Community Development initiatives taken byIFFCO is included in its Annual Report which is posted on its websitewww.iffco.nic.in.The brief report on various activities undertaken by IFFCO showing its commitmenttowards Global Compact Principles, as per the suggested proforma, are as under:I. HUMAN RIGHTSPrinciple 1: Business should support and respect the protection of internationalhuman rights within their sphere of influence; andPrinciple 2: make sure they are not complicit in human right abuses.1COMMITMENT• Towards making the cooperative societies economically and democraticallystrong for professionalized services to the farming community to ensure anempowered rural India.• Towards farmers for their welfare, prosperity and growth.• Towards social responsibilities for a strong social fabric.• Towards fostering cooperative movement in the country.• Towards abolition of child labour.• Towards indiscrimination on the basis of gender in employment.• Towards providing employment opportunity to weaker sections.SYSTEMS• Cooperative Development Programmes through marketing Field Officers.• Rural and Agricultural Development Programmes through marketing FieldOfficers.• Cooperative and Rural Development Trust (CORDET) promoted by IFFCO.• Services through IFFCO Kisan Sewa Trust promoted by IFFCO;• Services through IFFCO Foundation a Trust promoted by IFFCO;• Services through Indian Farm Forestry Development Cooperative Ltd.(IFFDC) a Cooperative Society promoted by IFFCO.• Ban on recruitment of child labor and policy towards employment

opportunity to weaker sections.ACTIONS• IFFCO adopts villages with an objective of bringing about over all economicdevelopment and improvement in living standards of rural communitythrough integrated rural development with particular emphasis onagricultural development.2• To make Cooperative societies economically viable, IFFCO adopt them andprovide infrastructure and financial support, for their revival, through sale ofIFFCO fertilizers.• In order to strengthen Cooperative societies, IFFCO appoints some of themas Franchisees for storage and handling of fertilizers which includeswarehousing, transportation and rake handling;• Organize programs viz; Farmers Meeting, Crop Seminars, FieldDemonstration, Sale Point Personnel Training, Agricultural and SocialCampaigns, Demonstrations etc. to educate farmers and cooperativesocieties to enhance crop productivity through balanced use of nutrients;• Organize community based programs viz; Women Training, Medical /Veterinary check up, etc. for farming community;• IFFCO promoted Indian Farm Forestry Development Cooperative Ltd.(IFFDC) with the prime objective of development of wasteland and toenhance the socio–economic status of the rural poor. IFFDC helps information of Self Help Groups (SHGs) in villages for unity, fulfilling need ofloan, saving and improvement in livelihood assets. Emphasis is laid onformation of women SHGs.• Promoted a Charitable Trust known as “IFFCO KISAN SEWA TRUST” toprovide relief and rehabilitation to victims in the event of natural calamities.• Promoted a Trust “IFFCO Foundation” with an objective to promotecooperative development.• The Cooperative Rural Development Trust (CORDET) promoted by IFFCOprovides practical training to farmers to improve their skills in agriculturalproduction, horticulture, dairy, poultry, professional leadership at villagelevel, management of cooperatives and several other activities.PERFORMANCE DURING 2005-06• Social and community development programmes were organized andinfrastructure were provided in around 405 adopted villages.• Conducted various social and promotional programmes as under:3 5910 field programmes 105 health checkup camps 124 veterinary checkup camp 1116 sale point personnel training programmes 157 crop seminars 1401 agricultural campaigns Distributed 8257 critical input package (CIP) kits to farmers. Analyzed 1,19,054 soil samples in different states.

• IFFCO KISAN SEWA TRUST organized Mega Health Check-up camps andEye Check-up Camps for the farmers of Rajasthan. The trust distributedwoolen pullovers to the earthquake affected people in J & K. It alsoextended financial assistance for construction of water pipelines, Gaushalasand “Adhar Sankaul” – the home for orphans, widows and old personsunder rehabilitation programme for the earthquake affected people ofGujarat. The trust also supported the rehabilitation and welfare activities forthe Tsunami affected people by constructing community centres in thestates of Kerala & Andhra Pradesh and for bore wells with water storagefacilities in the state of Pondicherry.• Warehousing of IFFCO fertilizer were awarded to 345 cooperative societieswhile 317 cooperative societies were awarded transportation work and 51cooperative societies were awarded rake handling & transportation offertilizers to increase their income.• Under the project ‘Western India Rainfed Farming’ (WIRF), beingimplemented in 78 villages of India, IFFDC has so far formed 939 Self HelpGroups (SHGs). Under the Watershed Management Plan, IFFDCconstructed 50 Earthen Dams and 93 Anicuts (stop Dam) in addition to 240kilometres of Stone Bunds and Earthen Bunds to store the water.• IFFDC undertook Poverty Elimination Project in Jhalawar and Baran Districtof Rajasthan.• CORDET organized 237 training programmes to benefit 34004 farmers fromvarious states and analyzed 89,610 soil samples free of charge.4• IFFCO Foundation had undertaken several research and developmentactivities for economic up-liftment of weak cooperative societies.II. LABOURPrinciple 3: Businesses should uphold the freedom of association and theeffective recognition of the right to collective bargaining;Principle 4: the elimination of all forms of forced and compulsory labour;Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment andoccupation.COMMITMENT• Towards institutionalizing the core values and creating a culture of teambuilding, empowerment and innovation which would help in incrementalgrowth of employees and enable achievement of strategic objectives.• Towards fostering a culture of trust, openness and mutual concern to makeworking a stimulating and challenging experience for stakeholders.• Towards ban on child labour.• Towards indiscrimination on gender basis.• Towards upliftment of weaker section.• Towards Health and Safety of employees.• Towards upgradation of knowledge & skills of employees.SYSTEMS• Ban on employment of child labour.

• No discrimination on gender basis.• Policy on employment opportunity to weaker section.• Programs for Human Resource Development.• Recognized Employee Union in all the operating plant, Head Office andMarketing Division.5ACTION• Computerised Human Resource Management System implemented acrossthe organisation provides better management control, manpower planning,succession planning, employees welfare and transparency etc.• Upgrading the skills of manpower through training and developmentprogrammes with a view to improve the productivity of employees and toenable them to shoulder more responsibilities.• Constructive dialogue between management and union to take care theinterest of employees.PERFORMANCE DURING 2005-06• No child labour employed.• More than 204 in-house programmes on agriculture, marketing, generalmanagement, finance, technical, information technology, cooperativesmanagement, material management, workers development etc. have beenconducted for employees spread over 749 training days.• Out of total employee strength of 6573 as on 28th February, 2006, 491employees belong to Schedule Caste, 37 belong to Schedule Tribe, 488belong to other Backward Classes.• Out of total employee strength of 6573 as on 28th February, 2006, 165employees are women out of which 103 are in key positions. They areplaced in engineering, chartered accountancy, medical etc. fields dependingupon their qualification and work experience. Women employees are alsoassociated with recruitment committees.• Kalol unit received “Rotating Shield (Winner Award)” with certificate for theLowest Disability Injury Index (DIL) from Gujarat Safety Council. Got“National Safety Award” for Aonla unit as Runner-up based on largestAccident Free Year.6III. ENVIRONMENTPrinciple 7: Businesses should support a precautionary approach toenvironmental challenges;Principle 8: undertake initiatives to promote greater environmental responsibility;andPrinciple 9: encourage the development and diffusion of environmentally friendlytechnologies.COMMITMENT• Towards maintaining the global ecology & environmental health.• Towards environment and forestry development to enrich the quality ofhuman life.• Towards making the plants energy efficient which in turn reduces the green

house gases (GHG) emission to the atmosphere.• Towards acquirement, assimilation and adoption of reliable, efficient andcost – effective technologies for a greener environment.SYSTEMS• ISO 14001 certification.• Tree plantation and green belt development• Treatment of effluent/sewage water• Rain water harvesting• Implementation of various schemes to reduce energy consumption forproduction of Ammonia & Urea.• Reduction of CO2 EmissionACTION• A systematically designed green belt has been developed all around theoperating plant complexes and on vacant land inside the factory premisesand townships to keep the environment clean and natural.• Effluent treatment plants had been installed.7• Sewage treatment plants had been installed to treat domestic sewage anduse treated water for horticultural purpose.• Installed eco-friendly vermi-culture system for treatment of solid waste oftownship.• Rainwater recharging pond/well has been installed for rain harvesting toincrease the water table of ground water.• Reduction in CO2 emission through following schemes:- Various measures is being implemented in Ammonia & Urea plantsat Kalol, Aonla and Phulpur units to reduce consumption of NaturalGas/Naphtha.- Fuel and Feed switch from Naphta to LNG at Phulpur unit- Carbon Di-oxide recovery from flue gases at Aonla and Phulpur units.• IFFCO promoted Indian Farm Forestry Development Cooperative Ltd.(IFFDC) with the prime objective of development of wasteland and toenhance the socio–economic status of the rural poor. IFFDC hastransformed wasteland into forests in Uttar Pradesh, Rajasthan and MadhyaPradesh.PERFORMANCE DURING 2005-06• The four operating plants of IFFCO (Kalol, Phulpur, Kandla & Aonla) havebeen awarded ISO – 1400 certification for their Environmental ManagementSystem in addition Township of Kalol, Aonla and Phulpur units, CORDETand Hospital at Phulpur unit have acquired ISO–14001 certification for theirEnvironmental Management System.• The Energy Efficiency Improvement Schemes at Ammonia plant located atAonla, Phulpur & Kalol have been completed and commissioned except S-50 converter at Aonla which is expected to be commissioned by April, 2007.• Switchover from Naphtha to Natural Gas at Phulpur plant is commissioned.• Carbon Di-Oxide recovery plant is expected to be commissioned byJanuary, 2007.

8• All the above three scheme would reduce Green House Gas (GHG)emissions in the atmosphere by around 1 million ton CO2 per annum whichwill be traded under Clean Development Mechanism of Kyoto Protocol ofUnited Nations.• Phulpur Unit was awarded the prestigious “Rajiv Ratna National Award –2005” for Excellence in Indian Industries – “Best Pollution Control GoldAward” and prestigious “National Energy Conservation Award – 2005”Certificate of Merit in the Ferti• Greenbelt development in and around the factory and township premisesare as under:Kalol Unit: 28.5 acres area is covered under greenbelt which is 30.5%of the total area.Phulpur Unit: 294 acres is covered under greenbelt which is 33.45% of thetotal area.Aonla Unit: 440 acres is covered under greenbelt which is 29% of thetotal area.Kandla Unit: 13.65 acres is covered under greenbelt which is 7.845% ofthe total area.• In addition, Kalol unit planted around 20000 plants in vicinity of the factory,township and distributed around 6000 plants in adjoining villages, Phulpurunit planted 5750 trees for maintaining eco-balance not only within thepremises but also all around the plant.• IFFDC have transformed around 65,000 acre wasteland area into forests.The Primary Farm Forestry Development Cooperative Societies (PFFCS),promoted by IFFDC are managing the total tree inventory of around 7.45million trees.I V. ANTI - CORRUPTIONPrinciple 10: Business should work against corruption in all its forms, includingextortion and bribery.910COMMITMENT• Towards transparency, accountability and integrity in principle and practice.• Towards fostering a culture of trust, openness and mutual concern.SYSTEMS• Full fledged Vigilance department in each factory and marketing divisiondirectly reporting to Chief Vigilance Officer (CVO) a Director ranked officer.ACTION• Vigilance division headed by Chief Vigilance Officer of Director rank ensuresthe transparency in various functions viz; procurement, contracts, disciplineetc. and directly report to the Chief Executive of the Company.PERFORMANCE• The procurement files are reviewed/audited and examined on random basis.• All employees are required to submit return annually on the immovableproperties in their possession.

RESEARCH METHODLOGY

DEFINATION

All progress in born of inquiry, doubt is better then confidence. It leads to

enquiry and enquiry leads to invention.

Hudson Maxim

It was the contexts of which the significance of research can well be

understood .increased amount of research make progress possible. Research

inoculates scientific & inductive thinking about organization.

Research methodology is a way to systematically solve the research problem.

But also conceder the logic behind the method we use in our context of our research study and explain why we are using a particular method of technique and why we are not using other methods so that research result are capable of being evaluated either by the researcher or by others

. Data Collection-

The data I have collected is secondary in the nature .I have used various soures of data

collectoon .the sources are :

Company annul report

Published information of finance

Company circulation booklet

Company webside

Books management of financial institution and services

CHAPTER- 4

Research Methodology

In order to provide conclusion with regard to the topic of the study, it was

necessary to adopt a suitable mode of study. The survey method adopted for

research analysis. The methodology used for the survey conducted can be

numbered as follows:-

Data Collection

Contact Method

Area of Study

Period of Study

Sample Size

Sampling Technique

Statistical Analysis

Contact Method-

The contact method was used to personal interviewing. This is a very

versatile method where the interviewer was able to ask more dichotomous

questions and record additional information and observation about the

respondents. Under this intercept interviews as well as arranged interviews

were taken.

Area of Study- Area of study confined to only Bareilly City only and it mainly include

the area of Civil lines, Rampur Grden, Baraa Bazaar, Rajendra Nagar,

Beharipur. The sample respondents are the people from different middle

class family of Bareilly City. I have taken Ayub Khan Chauraha as centre

from I cover the area of 3 km in each direction.

Geographic representation of the respondents of Bareilly City

Area East West North South Total

Service 6 5 9 8 28

Businessman 6 1 4 1 12

Student 1 0 1 1 3

Housewife 1 1 0 0 2

Self-employed

1 1 2 1 5

Total 15 8 16 11 50

Classification of the Respondents based on their income


<10,000 2 3 5 3 12

10,000 –

20,000

4 3 5 1 13

20,000 –

40,000

5 1 2 2 10

>40,000 4 1 4 6 15

Total 15 8 16 11 50

Classification of the Respondents based on their age group


18-25 1 2 2 3 8

25-35 3 4 4 3 14

35-45 5 1 4 3 13

45 above 6 1 6 2 15

Total 15 8 16 11 50

Classification of the Respondents based on their gender


Male 13 7 14 10 44

Female 2 1 2 1 6

Total 15 8 16 11 13

Period of the Study-

The study is conducted from 12th March. 2008 to 20 March 2008 in

these areas. The process was a time consuming because a large number of

questionnaire had to be administered, which required the researcher

attention.

Sampling Technique-

Disproportionate stratified random sampling techniques was used for the

primary data collection from the people of middle class family of Bareilly

City. Some self-selection was also done to ensure fair representation of data.

hence intensive care was taken for sampling.

Statistical Analysis-

The statistical techniques are used for analyzing and interpreting the

collected data are weighted average method, and percentage method.

Data Collectin

The data I have collected is secondary in the nature .I have used various soures of data

collectoon .the sources are :

Company annul report

Published information of finance

Company circulation booklet

Company webside

Books management of financial institution and services

IFFCO Diary-a presetation of IFFCO`s success

ACKNOWLEDGEMENT

Nothing concrete can be achieved without an optimal combination of

inspiration and perspiration. No work can be accomplished without taking the

guidance of the import. It is only the critiques for the ingenious intellectual that

helps transform product.

.

I am really grateful to my guide Ms. Sandhya Singh (Faculty, M.B.A.

Department) for guiding and providing me with necessary help throughout the

project. Without his critical and timely suggestion, this project would never have

been possible.

I would like to thank him for assigning me the project and for their

help and cooperation. Besides this I would like to thank Mr. Ratan Singh (Sr.

Manager) who gave me the opportunity to do research in his Organization.

I wish to express my special thanks and Regards to Dr. S.P.Gupta

(Director General) & Other Faculty & Staff faculty of S.R.M.S BAREILLY.

Unfortunately, the list of expression of thank, no matter how

extensive I is incomplete and inadequate Last but not the least, I would like to

extend my heartfelt gratitude to all those who had directly or indirectly responsible

for the successful completion of the project.

REHAN AKHTAR M.B.A. IInd sem

Table Of Contents

Certificate PrefaceAcknowledgement Chapter 1: Introduction

Objective and Scope

Scope of the study

Research Methodology

Chapter 2:

Company profile

Company Objective

Organization Structure

Vision 2010

Achievement Awards

Chapter 4: Challenges and Opportunities

Introduction

Challenges faced by the Retail Organization

Opportunities for Global Players

Chapter 5: Research Methodology

Research Problem

Research Design

Chapter 6: Data Collection

Chapter 7: Analysis of the Information

Chapter 8: Interpretation

Research in Supply Chain Management

Exibits

Chapter 9: Findings

Supply Chain of Subhiksha

Subhiksha’s Marketing Strategy

Managerial Aspects of Store Brands

Chapter 10: Conclusion

Chapter 11: Annexure

Questionnaire

Chapter 12: Bibliography

IFFCO franchisees

In order to further improve the economically viability of cooperatives societies,

IFFCO has been developing some of the adopted societies as “IFFCO franchisee

“by giving them the business of rake handling , transportation and warehousing of

IFFCO fertilizers besides providing them guidance to undertake educational and

promotional activities . 299 cooperatives societies has taken up the activity of

warehousing and 218 societies have taken undertaken transportation of fertilizers

from warehouses of their go downs and 66 societies undertook fertilizer

transportation work from warehousing to other societies. 50 societies are

undertaking the rake handling job.

PRODUCT OF IFFCO

IFFCO's NPK/DAP

As far as Indian farmer is concerned, IFFCO's

NPK/DAP is not just a source of crucial nutrients N, P,

K for the crops, but is an integral part of his/her quest

for nurturing mother earth. The bountiful crop that

results from this care is an enough reason for the

graceful bags of IFFCO NPK/DAP bags to be an

integral part of the farmer’s family.

The two grades of NPK produced by IFFCO, 10:26:26 and 12:32:16, indicating the

content of N,

P, K proportion, is tailor made to supply the exact composition required for

replenishment of the soil. The Indian farmer's confidence and trust stems from the

fact that IFFCO's NPK/DAP are merely a part of a complete package of services,

ably supported by a dedicated team of qualified personnel. More importantly, they

are aware, IFFCO is a cooperative society owned by farmers cooperatives.

About DAP/NPK

Diammonium Phosphate

It is the most popular phosphatic fertilizer because of its high analysis and good

physical properties. The composition of pure salt of DAP is N-21.19% and P205 -

53.76%.Fertilizer grade DAP is 18:46:0.

NPK Complex Grades

NPK complex fertilizers produced at Kandla are DAP based grades. At present two

grades Grade I - 10:26:26 and Grade II - 12:32:16 are produced.

Granular NPK complexes are free flowing and do not pose any problem during

handling and storage. However, exposure of material for long period to very high

humidity may cause caking. Therefore, NPK complexes are bagged in quality

tested HDPE bags to prevent ingress of moisture.

IFFCO's Urea

IFFCO's Urea is not merely a source of 46% of nutrient nitrogen for crops, but it is an integral part of millions of farmers in India. A bag of IFFCO's urea is a constant source of confidence and is a trusted companion for Indian farmer.

When farmers buy IFFCO's urea, they know that what they get is not just a product but a complete package of services, ably supported by a dedicated team of qualified personnel. More importantly, they are aware t

About Urea

Urea is the most important nitrogenous fertilizer in the country because of its high N content (46%N). Besides its use in the crops, it is used as a cattle feed supplement to replace a part of protein requirements. It has also numerous industrial uses notably for production of plastics. hat it is their own urea, produced and supplied by a cooperative society owned by themselves.

BIO – FERTILISERS

A biofertiliser unit was established at Cooperative Rural Development Trust,

Phulpur (Uttar Pradesh) in 1996 - 97 and other at Kalol (Gujarat) in 2003-04 with

an annual capacity of 75 MT and 165 MT respectively of different cultures such as

Rhizobium, Azotobacter, PSM, Azospirillium and Acetobacter

Phosphate Solubilising Micro Organism - Several soil bacteria and fungi

possess the ability to bring insoluble phosphates into soluble forms by secreting

organic acids. They can be applied to and recommended for all crops

Rhizobium - It is the most important nitrogen fixing organism. It live

symbiotically in the root nodules of leguminous plants and supply nitrogen to the

plant through nitrogen fixation. Besides, supplying nitrogen to the crop, nitrogen

fixed by legume - Rhizobia association would also leave residual nitrogen for the

succeeding crops. The beneficiary crops are Groundnut, Soybean, Red-gram,

Green-gram, Black-gram, Lentil, Cow pea, Bengal-gram and Fodder legumes.

Azotobacter - It is non symbiotic nitrogen fixing bacteria recommended for

non leguminous crops like Paddy, Wheat, Millets, Cotton, Tomato, Cabbage,

Mustard, Safflower and Sunflower. The Azotobacter performs well if the soil

organic matter content is high.

Acetobacter - It is a symbiotic bacteria capable of fixing atmospheric

nitrogen by living within the sugar plant. They are found in all parts of plant body.

It is suitable for sugarcane cultivation

Azospirillium - It is an associative microaerophilic nitrogen fixer is

commonly found in association with the roots of cereals and forage grasses. The

beneficiary crop includes Sugarcane, Vegetables, and Maize, Pearl millet, Rice,

Wheat, Fodders and Oil seeds.

PRODUCTION OF BIO – FERTILISERS

CORDET - PHULPUR & KALOL (Annual Capacity 75 MT & 165 MT)

(Qty in MT)

STRAIN 2000-01 2001-02 2002-03 2003-04 2004-05

Rhizobium 5.07 3.81 5.50 5.39 7.37

Azotobacter 45.72 55.37 56.22 56.73 120.20

PSM 51.80 72.07 71.17 71.24 172.77

Azospirillium 0.01 0.37 0.34 3.14 8.36

Aectobacter 0.00 0.00 0.00 0.00 30.43

TotalProduction

102.60 131.62 133.23 136.50 339.13

CapacityUtilisation (%)

136.80 175.49 177.64 182.00 141.30

CORDET- KALOL commissioned w.e.f. 16.02.2004 with annual capacity of 165 MT.

Ammonium Phosphate Sulphate (20-20-0-13)

i) Moisture, per cent by weight, maximum

1.0

ii) Total Nitrogen, per cent by weight, minimum

20.0

iii) Ammoniacal Nitrogen, per cent by weight, minimum

18.0

iv) Nitrogen in the form of urea, per cent by weight, maximum

2.0

v) Neutral Ammonium Citrate soluble Phosphates(as P205), per cent by weight, minimum

20.0

vi) Water soluble phosphates (as P2O5), per cent by weight, minimum

17.0

vii) Particle size Not less than 90 per cent of the material shall pass through 4 mm IS sieve and shall be retained on 1 mm IS sieve. Not more than 5 per cent shall be below 1 mm IS sieve.

viii) Sulphur (as S), per cent by weight minimum

13.0

Ratings assigned by different Rating Agencies to the Society

Ratings assigned by CRISIL:

(i) Rating for Governance and Value Creation (GVC) Practices of IFFCO:

CRISIL has, assigned a “GVC Level 2” rating to IFFCO. This rating indicates that the capability of the Society with

respect to wealth creation for all its stakeholders, while adopting sound corporate governance practices, is High.

(ii) Rating for the Rs. 100 crore Commercial Paper Programme of IFFCO .

CRISIL has assigned a “P1+ (pronounced “P One Plus”) rating to IFFCO’s Rs.100 Crore Commercial Paper

Programme.This rating indicates that the degree of safety with regard to timely payment of interest and principal on

the instrument is Very Strong.

(iii) Rating for the Rs. 400 crore Bonds Programme of IFFCO.

CRISIL has assigned the rating on IFFCO’s Long Term Borrowing Programme to AA/Stable.The rating indicates

high degree of safety with regard to timely payment of interest and principal on the instrument.

Ratings assigned by FITCH

(i) Rating for the Rs. 100 crore Commercial Paper Programme of IFFCO.

FITCH Ratings has assigned a National Short Term Rating of ‘F1+(Ind)’to IFFCO’s Rs. 100 crore Commercial

Paper Programme.

(ii) Rating for Long Term Borrowing Programme of IFFCO.

FITCH Ratings assigned National Long - Term Rating of ‘AA+(ind)’ to the Long Term Debt Programme of IFFCO.

The outlook on the Long Term Rating is “Stable”.

BALANCE SHEET AS 31 MARCH ,2005

SOURCES OF THE FUNDS

SHARE HOLDERS FUNDS 42

iffco rehan

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