2. MAJOR CHEMICAL COMPANIES
GUJARAT FLUROCHEMICALS LIMITED
GUJARAT HEAVY CHEMICALS LIMITED
INDIA GLYCOLS LIMITED
PIDILITE INDUSTRIES LIMITED
PHILIPS CARBON BLACK LIMITED
3. INTRODUCTION
In financial accounting,
the term reserve is most
commonly used to describe
any part of shareholders equity,
except for basic share capital.
Reserve is used in the
sense of the term provision.
4. OBJECTIVES
To make an overview on the increased or decreased
status of the reserves of major chemical companies
based on Fundamental analysis.
To predict or to estimate the reserve composition of
the fore coming financial year using Trend
analysis.
To make a comparative study on the reserve
component of the major chemical companies based
on Comparative analysis.
5. SCOPE OF THE STUDY
To emphasize and interpret the position of reserve
components of the major chemical companies
through various tools such as Fundamental analysis,
Trend analysis and Comparative analysis.
6. LIMITATIONS
Since the analysis is made only on the reserves of the
company, the further complete financial position is
not well determined.
The analysis is based only on the past five years,
hence the critical time factor lacks here to focus on
detailed analysis.
7. METHODOLOGY
The study is based on secondary data. The data were
collected from the websites, magazines and journals
on finance.
To assess the position of reserves of selected major
chemical companies, the study adopted the tools
such as Fundamental analysis, Trend analysis and
Comparative analysis.
The study covers a
period of five years
from 2009-2013
8. FUNDAMENTAL ANALYSIS
Fundamental analysis of a business involves
analyzing its financial statements and health, its
management and competitive advantages, and
its competitors and markets.
to conduct a company stock valuation and predict its
probable price evolution,
to make a projection on its business performance,
to evaluate its management and make internal
business decisions,
to calculate its credit risk.
9. TREND ANALYSIS
An aspect of technical analysis that tries to predict
the future movement of a stock based on past data.
Trend analysis is based on the idea that what has
happened in the past gives traders an idea of what
will happen in the future.
10. COMPARATIVE ANALYSIS
This study performs a comparative analysis on the
reserve composition of GFCL,GHCL,IGL,PIL and
PCBL.
11. FINDINGS
The reserve composition of GFCL was 1219.84 for the
base year 2009 and there is a tremendous change
during the years, hence the current position is
increased to 2484.27 for 2013.
It is found that the predicted value of IGL for 2010
was 349.29 but there was an increase in the acquired
value of up to 366 and so for the years. Thus the
predicted value for 2013 was 481.66 but the acquired
value was 598.07 and hence for the year 2014.
12. By comparing the reserve composition of PCBL and
GFCL, it is observed that the reserve for the base
year 2009 was 189.93 and 1219.84 respectively. For
the year 2013 the composition was increased to
554.64 for PCBL and 2484.27 for GFCL.
13. SUGGESTIONS
There must be adequate steps taken to increase the
profit margin of GHCL within a short period
otherwise the reserve value will be ultimately
affected.
The reserve composition of IGL, PIL and PCBL must
be taken care of, to overcome the threat of the
competitor.
14. CONCLUSION
The reserve composition of GFCL was 1219.84 for the
base year 2009 and there is a tremendous change
during the years, hence the current position is
increased to 2484.27 for 2013
By comparing the reserve composition of PCBL and
GFCL, it is observed that the reserve for the base
year 2009 was 189.93 and 1219.84 respectively. For
the year 2013 the composition was increased to
554.64 for PCBL and 2484.27 for GFCL.
