This document discusses the fertilizer industry in India. It begins with acknowledging the guidance received for the project. It then provides background on the Indian economy and describes the growth of the fertilizer industry in India since 1950-1951. It discusses the major public and private sector companies involved in fertilizer production in India and provides employment statistics for the industry.

1. INDIAN SCHOOL OF MINES
Managerial Economics
Subject Code : MSC – 41105
Assignment No. 1
A Comparison Between Public & Private Sector Industry
Submitted To : Submitted By:
Dr. P. K. Chakrabarty Anshul Rawat
2012MB0028
MBA 1st
Year

2. ACKNOWLEDGEMENT
I express my sincere gratitude to my faculty Dr. P.K.Chakrabarti for his
guidance and motivating me for doing this project. Study of managerial
economics has really helped me to understand the present scenario of Public
Sector Company as well as Private sector companies. At last I want to thank my
friends, seniors for extending their kind cooperation to bring this project in such
a nice form.
I again would like to thank everybody whose contribution in any form is useful
for me to make a difference.
Date : Anshul Rawat

3. CONTENTS
1. ACKNOWLEDGEMENT……………………………………..
2. THE ECONOMY OF INDIA.................................................
3. FERTILIZER INDUSTRY IN INDIA...................................
4. NATIONAL FERTILIZERS LIMITED................................
5. ASIAN FERTILIZERS LIMITED.........................................
6. COMPARISON.......................................................................
7. CONCLUSION...................................................................….
8. BIBLIOGRAPHY..............................................................…..

4. Indian Economy
The economy of India is the eleventh largest in the world by nominal GDP and the third largest by
purchasing power parity (PPP). The country is one of the G-20 major economies and a member of BRICS.
On a per capita income basis, India ranked 140th by nominal GDP and 129th by GDP (PPP) in 2011,
according to the IMF.
After the independence-era Indian economy (before and a little after 1947) was inspired by the Soviet model
of economic development, with a large public sector, high import duties combined with interventionist
policies, leading to massive inefficiencies and widespread corruption. However, later on India adopted free
market principles and liberalized its economy to international trade under the guidance of Manmohan Singh,
who then was the Finance Minister of India under the leadership of P.V. Narasimha Rao the then Prime
Minister who eliminated License Raj a pre- and post-British Era mechanism of strict government control on
setting up new industry. Following these strong economic reforms, and a strong focus on developing
national infrastructure such as the Golden Quadrilateral project by Atal Bihari Vajpayee the then Prime
Minister the country's economic growth progressed at a rapid pace with very high rates of growth and large
increases in the incomes of people.
India recorded the highest growth rates in the mid-2000s, and is one of the fastest-growing economies in the
world. India has recorded a growth of over 200 times in per capita income in a period from 1947 (Rs 249.6)
to 2011. The growth was led primarily due to a huge increase in the size of the middle class consumer, a
large labour force, growth in the manufacturing sector due to rising education levels and engineering skills
and considerable foreign investments. India is the nineteenth largest exporter and tenth largest importer in
the world. Economic growth rate stood at around 6.5% for the 2011–12 fiscal year.

5. Fertilizer Industry in India
Indian fertilizer industry's main objective is to ensure the supply of primary and secondary nutrients in the
required quantities. The Indian Fertilizer Industry is the most energy intensive sectors according to the
context of environmental discussions. As there is increasing productivity through the implementation of
competent and pollution free technologies in the manufacturing sector it would be desirable in combining
economic, environmental and social development objectives. Today the Indian fertilizer industry in the past
50 years has grown in size and stature as it ranks third in the world.
Brief Introduction
In 1950-51 in India the per hectare consumption of fertilizer was less than 1/4th of the global average.
During this particular period the production was by and large in the purview of public sector and co
operative sector. Government introduced the Retention Price Scheme (RPS) in the year 1977 with the goals
of providing fertilizers to farmers at reasonable rates without affecting the profitability of the manufacturers.
The government under this policy would pay the manufacturers, the difference between the administered
price (sale price) and the retention price (cost of production).Over and above the retention price subsidy,
the equated freight subsidy was introduced to enable the manufacturers to cover the cost of transportation.
Economic liberalization Policy had its effect on the fertilizer industry too. Where the government had the
move to aim at reducing subsidy and decontrolled all the phosphatic and potassic fertilizers in 1992 the
ratio of fertilizer utilization was strained.
The government strategized a long term fertilizer policy to be completed in three different phase, beginning
in 2000-01 and ending in 2006-2007.
Phase 1: 2000-01 and 2001-02
Evaluate the possibility of a coal based expertise.
Promote joint ventures.
Finalize policy on fertilizer pricing and capacity enhancement.
Eliminate distribution controls on urea and augment concession scheme to biofertilizers.
Evaluate existing capacity.
Increase in urea prices from time to time.
Fertilizer is defined as any substance which is organic or inorganic, natural or artificial, supplies one or more of
the chemical elements required for plant growth. Carbon, oxygen and hydrogen are directly supplied by air and
water and therefore not treated as nutrients by the fertilizer industry. One of the vital industries for the Indian
economy is the Indian Fertilizer Industry as it manufactures a very critical raw material for agriculture which is
the major occupation of the country. The fertilizers especially like the ammonia urea plants are energy
demanding in their operation.

6. Phase II (2002-03-2003-04)
Finalize decision on feedback.
Eliminate MRP and encourage productive investment.
Reorganize the association between the industry and farmers.
Long term strategy of increased capacity.
Decide on extent of protection to local industry.
Judicious utilization of fertilizer and greater emphasis on eco friendly fertilizer.
Establish Fertilizer Policy Planning Board.
Phase III (2004-05-2006-07)
Define government's role in decontrol setup and with respect to policy relating to LNG.
Removal of MRP
Size of the industry
Indian Fertilizer industry today has succeeded in meeting the demand of all chemical fertilizers over the
years. The first manufacturing unit was started by the Indian Fertilizer Industry which was of Single Super
Phosphate (SSP) in Ranipet near Chennai with a capacity of 6000 MT a year. India's green revolution in
60‟s gave a positive boost to this particular sector. The industry of Fertilizer experienced a faster growth
rate and presently India is the third largest fertilizer producer in the world. According to Statistics, total
capacity of the industry as in .2003 has reached a level of 121.10 lakh MT of nitrogen (inclusive of an
installed capacity of 208.42 lakh MT of urea after reassessment of capacity) and 53.60 lakh MT of
phosphatic nutrient.
In India, presently there are 57 large fertilizers plants producing urea, DAP, Complex fertilizer, Ammonium
Sulphate (AS) and Calcium Ammonium Nitrate (CAN). There are others also boosting the Industry like the
Tranvancore of India Ltd. (FACT) in Cochin, Kerala, and the another one Fertilizers Corporation of India
(FCI) in Sindri, Bihar.Both of these were established as pedestal fertilizer units to have self sufficiency in
the production of foodgrains. Later the industry gained impetus in its growth due to green revolution. Then
followed by seventies and eighties when fertilizer industry witnessed an incredible boom in the fertilizer
production.
Year of
manufacture
Fertilizer product
Total number of
units
1906 SSP 65
1933 AS 10
1959
Ammonium sulphate
nitrate
No longer
manufactured
1959 Urea 29

7. 1959 Ammonium chloride 1
1960 Ammonium phosphate 3
1961 CAN 3
1965 Nitro phosphate 3
1967 DAP 11
1968 TSP
No longer
manufactured
1968
Urea ammonium
phosphate
2
1968 NPK complex fertilizers 6
The total indigenous capacity of N and P2O5 increased from 17 000 and 21 000 tonnes in 1950/51 to 12 276
million and 5 547 million tonnes in 2004/05.
Total contribution to the economy/ sales
Year
Fertilizer (NPK) consumption
(million tonnes) (kg/ha)
1969/70 1.98 11.04
1979/80 5.26 30.99
1989/90 11.57 63.47
1999/2000 18.07 94.90
2000/01 16.70 89.30
2001/02 17.36 92.80
2002/03 16.09 86.01
2003/04 16.80 89.80

8. Top leading Companies
Some of the public sector companies in India fertilizer industry:
National Fertilizers Limited
Fertilizers & Chemicals Travancore Limited
Rashtriya Chemicals & Fertilizers Limited
Madras Fertilizers Limited
Steel Authority Of India Limited
Neyveli Lignite Corporation Limited
Paradeep Phosphates Limited
Pyrites, Phosphates & Chemicals Limited
Hindustan Fertilizer Corporation Limited
Some of the private sector companies in Indian fertilizer industry:
Chambal Fertilizers & Chemicals Limited
Ajay Farm-Chem Private Limited
Balaji Fertilizers Private Limited
Asian Fertilizers Limited
Deepak Fertilizer and Petrochemicals Corporation Limited
Bharat Fertilizer Industries Limited
Coromandal Fertilizers Limited
Gujarat Narmada Valley Fertilizer Co. Limited
Meerut Agro Chemicals Private Limited
Duncans Industries Limited
Karnataka Agro Chemicals
Godavari Fertilizers & Chemical Limited
Shri Amba Fertilizers (I) Private Limited
Tuticorin Alkali Chemi & Fertilizer Limited
Gujarat State Fertilizers & Chemicals Limited
Indo-Gulf Fertilizers & Chemicals Corporation Limited
Southern PetroChemical Industries Corporation Limited
Maharashtra Agro Industrial Development Corporation
Zuari Industries Limited- Fertilizer Limited
Mangalore Chemicals & Fertilizers Limited
Employment opportunities
Fertilizer Industry consists all the opportunities for the person who has graduated in the filed of science and
specialised in the areas of agriculture. Job opportunities available in the fertilizers industry can easily be
know in the several placement and employment websites which are available online by the job seekers.
Accounting, marketing, manufacturing, sales, etc. are the various jobs available in this field in India. The
fertilizers industry and related jobs offer opportunities are available in different areas of the field. Several
jobs are available in this area and one can study about fertilizers and build a career in fertilizers industry or
related fields.

9. Pollution
The classification of the Indian Fertilizer Industry as “Red" represents it as a highly polluting industry.
Latest developments
Indian Fertilizer demand in 2007-08 was 26 MM tons, which went up to 29 MM tons in 2008-09
against a supply of 20 MM tons in 2008-2009.
It is forecasted that the demand for fertilizers in 2011-12 is going to be around 35.5 MM tons.
The leading role is to be played by Gujarat in fertilizer production.
There is a lot of development going on to meet the demand of fertilizers in the country through
indigenous production, self-reliance in design engineering and execution of fertilizer projects is very
crucial. There are consultancies which organize themselves to undertake execution of fertilizer
projects starting from concept/designing to commissioning of fertilizer plants in India and abroad.
Many concepts have been developed to carry out research and development / basic research work by
mutual understanding between industry and academic institutions, and even there is support from the
Department of Fertilizers to sponsor research and development projects through the Indian Institutes
of Technology, Delhi and Kharagpur under the Science and even other major institutions in the
country
The fertilizer plant operators are now in the position to absorb and assimilate the latest technological
developments, incorporating environmental friendly process technologies, and are in a position to
operate and maintain the plants at their optimum levels without any foreign assistance and on
international standards in terms of capacity utilization, specific energy consumption & pollution
standards.
Indian fertilizer industry is carrying out de-bottlenecking and energy saving schemes for the existing
plants to enhance the capacity and reduce the specific energy consumption per ton of product.
Today India has developed expertise for fabrication and supply of major and critical equipment such
as high-pressure vessels, static and rotating equipment, Distributed Control System (DCS), heat
exchangers and hydrolyser for fertilizer projects.
The most significant development/advancement made by the Industry is in the field of
manufacturing of catalysts of various ranges by catalyst-manufacturing Organisations like PDIL.
PDIL helps in implementing the schemes for enhancement of capacity and technological upgradation
in their existing catalyst plant and other utilities at Sindri to compete in the International market.
Fertilizer serves as the key ingredient for the food security of the country, by increasing the
production and productivity of the soil. The Industry has set the domestic food grain production
target at 320 million tones by 2011-12 from the present production of 210 million tones. This target
would only be achieved by higher productivity through improved farming practices, expansion of
irrigation, better seeds and extensive and balanced use of fertilizers.

10. National Fertilizer Ltd
National Fertilizers Limited is a Schedule „A‟ and Mini Ratna Company, which was incorporated on 23rd
August, 1974 for setting up of two Nitrogenous fertilizer plants, based on gasification technology of Feed
Stock / LSHS at Bathinda (Punjab) and Panipat (Haryana) having an installed capacity of 5.11 lakh tonnes
of Urea each. The commercial production from these plants commenced w.e.f. 1.10.1979 & 1.9.1979
respectively. Consequent upon reorganization of FCI in April 1978, the Nangal unit (including Nangal
expansion project) of FCI was transferred to NFL.
The Govt. of India, in 1984, entrusted the Company to execute the country‟s first inland gas based fertilizer
project of 7.26 lakh tonnes Urea capacity in District Guna of Madhya Pradesh and commercial production
started from 01-07-1988. Expansion of Vijaipur Plant was taken up in the year 1993 for doubling its
annual production capacity. The commercial production from Vijaipur Expansion Plant commenced with
effect from 31.3.97. The Department of Fertilizer subsequently re-assessed the annual installed capacity of
Vijaipur Plants from 7.26 lakh tonnes of Urea to 8.64 lakh tonnes (each) with effect from 1st April 2000.
Revamp of Urea plant at Nangal for increasing the production from 3.30 lakh tonnes to 4.78 lakh tonnes per
annum was under taken and commercial production commenced from 1st February 2001 raising the total
present annual installed production capacity of Urea at NFL to 32.31 lakh tonnes (i.e. 14.86 lakh tonnes in
terms of Nitrogen Fertilizer).
The Company also produces various Industrial Products, like Nitric Acid, Ammonium Nitrate, Sodium
Nitrite, Sodium Nitrate, Sulphur, Methanol, Argon Gas, Liquid Nitrogen, Liquid Oxygen etc besides Bio-
fertilizers. Bio-Fertilizers plant at Vijaipur produces three strains of Bio-Fertilizer (Solid & Liquid) namely
PSB, Rhizobium &Azotobacter. Company has also started marketing of special fungus based bio-fertilizer
“Mycorrhiza” under the brand name of „Kisan Mycorrhiza‟.
The value-added Neem Coated Urea developed by NFL & widely recognized for its effectiveness is being
produced at its three units at Panipat, Bathinda & Vijaipur. NFL is the first company in India to be permitted
by the Government of India to produce and market Neem Coated Urea.
In order to make different agro products available to the Farmers under single window concept, Company is
presently undertaking trading of various agro-inputs like quality seeds, Compost Khad, insecticides &
Herbicides, imported MoP (Murate of Potash) etc. Company has also taken initiative to add some
more products through trading such as Micro Nutrients (Zinc Sulphate), SSP (Single Super Phosphate),
Bentonite Sulphur, imported DAP and Complex Fertilizers. Company is also selling BSNL products to the
Farmers through its existing dealer‟s network. The Company‟s Marketing Network comprises of
Central Marketing Office at NOIDA, three Zonal Offices at Bhopal, Lucknow & Chandigarh, 13 State
Offices and about 39 Area Offices spread across the country.
The authorized capital of the company as on 31-03-2012 stood at 1000 crore and the paid up capital at
490.58 crore, comprising Govt. of India share of 479 crore (97.64%) and remaining 11.58 crore
(2.36%) held by financial institutions and others.

11. Company History
National Fertiliser Limited was registered on 23.08.1974 with an authorised capital of 500 Crores and a
capacity of 10.36 lakhs MT Nitrogen. The company is indulged in manufacturing chemicals & Bi-Products
as well as to provide the allied services.
The company has its units in various places like Nangal, Panipet, Bhatinda & Vijaipur. The Government of
India has approved the implementation of Vijaipur Expansion Project with an outlay of 987 Crores.
2001
- Mr. P.S. Grewal will take over as the new Chairman and Managing Director of the public sector urea
major, National Fertilisers Ltd.
- The Company has signed a memorandum of understanding with the Union Government for 32.25 lakh
tonne production in 2001-02.
2002
-NFL has been upgraded as a schedule A company because of its constant good performance.
-A.V.Singh ceases to be the director of the company. Shri Vijay Singh has been co-opted as the Director on
the board, Dr.B.C.Jain appointed as the director to the board by IDBI.
-NFL has worked out a new process of neem-coated urea with a thin film of neem oil-water emulsion of
specified concentration.
2003
-NFL has signed memorandum of association for 2003-04 with the Department of Fertilizers
- National Fertilizers Ltd, Ranbaxy Laboratories Ltd and Indo Rama Synthetics Ltd have secured the
National Safety Awards for the year 2001 and 2002.
-High court has permitted National Fertilizers Employees Union to tender for stakes in the company.
-Secured the National Safety Awards for the year 2001 and 2002
- Appointed three Additional Directors on the Board wef October 31, 2003.
1. Shri Hemendra Kumar
2. Shri Jawahar Nehru
3. Prof KDP Nigam
2004
-Smt. Suman Swarup has resigned as Director of the Company
- Shri Satish C. Chhatwal, Director (Finance) has ceased to be a Director of the Company

12. 2006
-National Fertilizers Ltd has informed that Shri Hemendra Kumar, Shri J Nehru & Prof K D P Nigam have
ceased to be Directors of the Company w.e.f. October 21, 2006. Shri K B Sachdev has taken over as
Director (Marketing) w.e.f. October 27, 2006. Earlier to that he was Chief General Manager (Marketing) of
the Company.
2007
- National Fertilizers Limited has appointed Shri Kanwal Malhotra, F.C.A.as Part-time Non-official Director
on the Board of Directors of the Company w.e.f. 21.02.2007.
- National Fertilizers Ltd has informed that Ms. Neeru Abrol has joined the Company as Director (Finance)
on October 01, 2007.
2009
- National Fertilizers Limited has informed that Shri Sudhir Bhargava has been appointed as Part-time
Official Director on the Board of the Company w.e.f. March 16,2009.
Modernization and Expansion Projects:
With a view to consolidate its position as a market leader in Urea, projects of about 4700 crore are at
various stages of implementation in Company‟s various plants. The major ongoing schemes are:-
Revamp of fuel-oil based plants at Panipat, Bathinda & Nangal:
The Company has undertaken revamp of fuel-oil based plants at Panipat, Bathinda & Nangal for changeover
of feedstock from Fuel-oil to Natural Gas. These projects involve a total investment of 4066 Crore and a
completion period of 36 months from the zero date i.e. 29th January 2010. These projects are being
implemented on Lump Sum Turnkey (LSTK) basis. Panipat & Bathinda projects are being implemented by
M/s Larsen & Toubro (L&T) with process license from Halder Topsoe. Nangal project is being
implemented by Consortium of M/s Tecnimont SPA Italy & M/s Tecnimont ICB Mumbai with process
license from KBR. M/s Project & Development India Limited (PDIL) has been engaged as Project
Management Consultant for all these three projects. The scheduled commissioning of the projects at Panipat
& Bathinda is by January 2013 and at Nangal by December 2012.
Revamp of Vijaipur plants for Energy Saving & Capacity Enhancement & Carbon
Dioxide Recovery (CDR) project for Vijaipur:
The Company has undertaken Capacity augmentation of Ammonia & Urea plants at Vijaipur-I & II units
including installation of Carbon Dioxide Recovery (CDR) plant at an investment of around 650 crore.
The total urea capacity of Vijaipur units after commissioning of the project shall be 20.66 lakh tonnes per

13. annum against 17.29 lakh tonnes per annum at present. Projects are scheduled to be commissioned during
April / June 2012. CDR project is expected to beCommissioned in June 2012.
NFL in collaboration with M/s KRIBHCO & RCF has a joint venture company (JVC) named as
"UravarakVidesh Limited" to explore investment opportunities abroad and within country in Nitrogenous,
Phosphatic&Potassic sectors and to render consultancy services for setting up Projects in India & Abroad.
Company has also been awarded on nomination basis the revival of HFC‟s Ramagundam and FCI‟s Sindri
Units in joint venture with M/s EIL & M/s SAIL respectively by GOI.
Production Performance
The Company, during 2011-12, produced 34.01 lakh tonnes of Urea (105.3% of installed capacity) as
compared to 33.80 LMT in previous year. The company registered ever best production of 639568 tonnes of
Neem Coated Urea during 2011-12 against 120067 tonnes during 2010-11.
Sales & Marketing
The company, during 2011-12, sold 33.90 lakh tonnes of Urea against 33.59 LMT in last year. The
company, during the year, achieved ever best sale of Industrial products worth 174 crore (Provisional)
against 120 crore during 2010-11.During the year, the company sold 23124 MT of Ammonium Nitrate
(Melt) worth 3762.05 lacs, a new product marketed this year, 49853 MT of Nitric Acid (equated
100% concentration level), 23124 MT of Ammonium Nitrate (Melt), 3395 MT of Sodium Nitrate, 1410 MT
of Sodium Nitrite, 695352 NM3 of Argon, 10699 MT of Sulphur, 877817 NM3 of Liquid Oxygen etc.
Financial Performance
During 2011-12, the Company registered a turnover of 7286 crore (provisional) against 5791 crore
during 2010-11.The turnover is higher due to higher sales volume & increase in subsidy due to increased
prices of petroleum products & Natural Gas and accountal of sales above cut-off quantity at Vijaipur-II on
Import Parity Price of Urea.
Awards & Accolades
Company excelled in performance in various areas, which got recognition from various quarters during the
year. The company has received “Excellent” rating for the MoU 2010-11 which is 11thexcellent rating in a
row. Company has won the following prestigious awards during 2011-12:
a) Two state level Safety Awards viz. „WINNER‟ for the year 2009 & „RUNNERUP‟ for the year 2008
from Government of Haryana for “Lowest Frequency rate” for Panipat Unit.
b) First Award for excellence in „Cost Management‟ in the category of Large Public sector Undertakings for
2010 from the Institute of Cost and Works Accountants of India (ICWAI), New Delhi.
c) “Business Achiever” Award in woman category by the Institute of Chartered Accountants of India to
Director (Finance), Ms Neeru Abrol. The evaluation of the award was done by a Jury panel of eminent
persons with Mr. N.R. Narayana Murthy, chief mentor, Infosys as chairman.
d) Scope Excellence Award 2009-10 to Director (Finance), Ms Neeru Abrol for “Outstanding Woman
Manager” among all the CPSEs from Hon‟ble Prime Minister of India at Vigyan Bhawan, New Delhi.
Corporate Social Responsibility and Agriculture Extension Activities:

14. During the year 2010-11 & 2011-12, company earmarked 3.0 crores & 3.25 crores respectively on CSR,
against which a total expenditure of 1.90 crores has been incurred till 31-3-2012 (estimated) and 4.35
crores is being carried over to the year 2012-13 as per DPE guidelines. The details of the work carried out
under CSR by Units and Marketing division in various districts viz. Guna, Hoshangabad & Indore in M.P.,
Jalgoan in Maharashtra, Solan in H.P., Nangal & Bathinda in Punjab, Panipat in Haryana, Jhansi and
Badayun in U.P. and Mayurganj&Balsore in Odisha are as under:
a) Basic Amenities: Drinking water facility, Approach roads, Toilets, Water tank, Tube wells, Overhead
tanks, Anganwadies, Compost structures like NADEP / Vermi Pits, training on low cost agriculture
practices to the Farmers etc.
b) Children education: Provided Kitchen shed, Boundary wall, Sports infrastructure, Force lift pump,
furniture, computers, ceiling Fans to the primary and middle schools in various villages situated in States of
U.P, M.P, H.P & Haryana. 2245 beneficiaries were benefitted.
c) Women Empowerment: Provided Multipurpose Women empowerment centers, stitching & sewing
machines, Floor and Masala Grinding Mill and training programs on stitching/Embroidery/Food
processing/Beautician/Sanitary pad making/Soft toys making etc. under women empowerment initiative in
the States of U.P, M.P & H.P. 312 beneficiaries were benefitted.
d) Afforestation: Around 73000 saplings planted.
e) Installation of Solar Lights: 45 Solar Lights were installed at 8 adopted villages in the States of U.P,
M.P, H.P, Punjab& Haryana.
f) Children & Women Health Camps: 20 Children and Women Health camps were organized at various
villages in the states U.P, M.P, Himachal Pradesh, Haryana and Maharashtra. 5546 beneficiaries were
benefited by these camps.
g) Animal Health Camps: 20 Health camps were organized in various villages of States U.P, M.P,
Himachal Pradesh, Haryana, Rajasthan and Maharashtra. 7270 no. of beneficiaries were benefited by these
camps.
h) Water Harvesting / Ground water recharging: 7 Water harvesting structures were constructed (4 stop
dams in Bhopal zone, renovation of 2 ponds and construction of a water harvesting tank in Chandigarh
zone).
Environment Management:
The company accords highest priority to industrial safety, Ecology & pollution control and has adopted 3R‟s
approach i.e reduce, reuse, recycle in an effort to have zero effulent discharge plants. Company has adopted
an extensive Afforestation program. All the statutory standards are met by respective units.Silo system for
collecting fly ash from ESP Hoppers using dense phase pneumatic conveying system has been installed at
Panipat, Bathinda and Nangal Units for excavation of cash from the plants. This has helped to contain the
ecological concerns in fly ash disposal.
All the Units are ISO 9001-2000 certified for Quality Management System, ISO- 14001 certified for
Environment Management System and have received OHSAS- 18001 certification for occupational health
and safety management system. Company is putting up a Carbon Dioxide Recovery plant of 450 MTPD

15. capacity for recovery of CO2 from Flue gases of Primary Reformer at Vijaipur. This will help in reduction
of discharge of greenhouse gases.
Human Resource Management:
The company has always believed that human resource is its most important asset and continues to work for
its development and realization of its potential. To achieve growth and to foster motivational climate,
several initiatives were taken up during the year. Modified Performance Related Pay Scheme for Executives
and Non- Executives has been implemented and Group Productivity Allowance Scheme has also been
introduced. The company has introduced Employees Economic & Social Rehabilitation Scheme, which
protects the welfare of the family in case of demise/permanent disablement of employee during service. A
new pension scheme for the benefit of employees is in the process of implementation.
During the year, to inculcate leadership qualities with high values, moral and ethics in all supervisory staff
and managerial cadre. Manpower strength of the company as on 31.03.2012 was 4515 comprising of 1942
Executives and 2573 Non-Executives.
The Employer-Employee relationship continued to be harmonious during the year. There was no loss of
production due to any adverse IR situation. The schemes for employees participation in Management
continue to function succeefully. There were continuous interactions between the Management and
employees representatives on various issues keeping in view the best interest of employees and the
company.
The company continues to make efforts for improving employees health, well being and welfare and has
taken steps for providing recreation, education and general welfare of employees.
MISSION
NFL‟s mission is to be a market leader in fertilizers and a significant player in all its other business, reputed
for customer satisfaction, reasonable reward to shareholders, ethics, professionalism and concern for
ecology & the community.

16. Investment :
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997
22852.4 19853 17355.7 19323.3 16978.8 14838.1 12459.7 16982.5 17809.9 19113.6 23104.2 22387.1 22087.5 21678.3 19948.4
Company‟s investment has been increasing continuously over this period, though it shows a downward
trend during the period, 2001 – 2005. But 2005 onwards, the investments start increasing again.
0
5000
10000
15000
20000
25000
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997
Investment (Rs. in Million)
Investment (Rs. in Million)

17. Sales Turnover :
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997
58040.3 51005.6 51408 41581 38809.3 36038.5 34925.5 34057.3 36685.2 30231.1 28767.2 24952.6 23232.6 22406.2 14440.2
Company has been showing good sales throughout this period with a sales turnover of over Rs. 50,000
Million in the last 3 years. The sales has been increasing each year with a couple of exceptions.
0
10000
20000
30000
40000
50000
60000
70000
201120102009200820072006200520042003200220012000199919981997
Sales Turnover (Rs. In Million)
Sales Turnover (Rs. In Million)

18. Wages :
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997
3869.6 3495.2 3297.3 3028.5 1675.9 1704.2 1749.8 1654.3 1865.1 1999.4 2064.9 1668.2 1522.6 1235.5 883.8
The graph for the wages is a fluctuating one. During the period, 1997 – 2001, the amount of money being
spent on wages is increasing each year. But the graph shows a downward trend for the next 6 years. Again
from year 2008, a considerable amount of increase can be seen in the wages which keeps on increasing in
the coming years.
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997
Wages (Rs. In Million)
Wages (Rs. In Million)

19. Cost of Production :
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997
53192.2 44777 46792 37074 33392.5 37582.6 37678.3 34963 37076 32644.7 31332.6 26562 19004.8 18040.1 11941.1
From the graph, it is evident that the cost of production has been increasing over the years, with a slight
decrease in 2004, 2007 and 2010.
0
10000
20000
30000
40000
50000
60000
201120102009200820072006200520042003200220012000199919981997
Cost of Production (Rs. In Million)
Cost of Production (Rs. In Million)

20. Net Profit :
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997
1390.9 1715.3 998 1074.9 1751 1163.6 1608.6 843.8 2854.6 406.2 271.7 335.5 409.2 1889.9 110.9
Company has never suffered a loss during the period 1997 – 2011. Though there have been great variations
in the net profit earned.
e.g. In year 1997, company earned a profit of just 110.9 Million, but in the next year, the profits increased to
a whooping Rs. 1889.9 Million. Similarly in year 2002, a profit of Rs. 406.2 Million was earned, which in
next year reached to Rs. 2854.6 Million.
0
500
1000
1500
2000
2500
3000
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
Net Profit (Rs. In Million)
Net Profit (Rs. In Million)

21. Rate of Growth (%) :
2011 2010 2009 2008 2007 2006 2005 2004
ROG-Net Worth (%) 5.69 7.58 4.48 2.69 9.1 5.9 9.81 5.21
ROG-Capital Employed (%) 15.1 14.39 -10.2 13.8 14.4 19.1 -26.6 -4.65
ROG-Net Sales (%) 13.7 -0.68 23.8 7.11 7.66 3.35 2.55 -7.28
ROG-Cost of Production (%) 19.1 -4.47 26.5 11 -11.1 -0.39 7.77 -5.82
ROG-Total Assets (%) 16.3 4.87 -5.29 13.5 11.1 9.03 -14.9 -14.1
ROG-PBIT (%) -21.1 36.82 14.1 -38.1 48.8 -20.2 54.02 -70.3
ROG-PAT (%) -19.3 75.98 -10.3 -38.3 51.3 -27.7 89.22 -70.3
2003 2002 2001 2000 1999 1998 1997
ROG-Net Worth (%) -6.08 -22.3 1.32 1.59 2.06 11 0
ROG-Capital Employed (%) -6.82 -17.3 3.2 1.36 1.89 8.67 0
ROG-Net Sales (%) 21.5 5.1 15.2 7.45 3.79 55.6 0
ROG-Cost of Production (%) 13.7 4.57 17.4 40 5.43 49.7 0
ROG-Total Assets (%) 6.14 -9.63 2.13 2.25 6.32 13.7 0
ROG-PBIT (%) 227 11.46 -14.2 -21.7 -46.5 492 0
ROG-PAT (%) 605 48.7 -21.7 -15.2 -78.2 1588 0

22. Rate of Growth (%) :
-200
0
200
400
600
800
1000
1200
1400
1600
1800
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997
Rate of Growth (%)
ROG-Net Worth (%)
ROG-Capital Employed (%)
ROG-Net Sales (%)
ROG-Cost of Production (%)
ROG-Total Assets (%)
ROG-PBIT (%)
ROG-PAT (%)

23. FINANCE - BALANCE SHEET - (Curr: Rs in Mn.)
As on 14/08/2012
COMPANY/FINANCE/BALANCE SHEET/12061/Natl.Fertilizer¤CmbDetail»0¤CmbCommonsize»0
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
SOURCES OF FUNDS :
Share Capital 4905.8 4905.8 4905.8 4905.8 4905.8 4905.8 4905.8 4905.8 4905.8 4905.8 4905.8
Reserves Total 11816 10915.6 9801.2 9170.9 8801.7 7658.4 6958.9 5898.6 5364 6028.8 9165.1
Equity Share Warrants 0 0 0 0 0 0 0 0 0 0 0
Equity Application Money 0 0 0 0 0 0 0 0 0 0 0
Total Shareholders Funds 16721.8 15821.4 14707 14076.7 13707.5 12564.2 11864.7 10804.4 10269.8 10934.6 14070.9
Secured Loans 4938.4 2331.6 648.7 4246.6 2264.2 2273.9 595 5666.2 7040.1 7499 8262.1
Unsecured Loans 1192.2 1700 2000 1000 1007.1 0 0 511.9 500 680 771.2
Total Debt 6130.6 4031.6 2648.7 5246.6 3271.3 2273.9 595 6178.1 7540.1 8179 9033.3
Other Liabilities 0 0 0 0 0 0 0 0 0 0 0
Total Liabilities 22852.4 19853 17355.7 19323.3 16978.8 14838.1 12459.7 16982.5 17809.9 19113.6 23104.2
APPLICATION OF FUNDS :
Gross Block 29295.4 29240.4 29059.7 29248.3 29033.7 28971.3 28622.5 28462.9 28392.7 26918 26867.2
Less : Accumulated
Depreciation 23305.3 22582.4 21715.6 21154.8 20325.9 19341 18127.3 16933.1 15169.8 13498 12389.9
Less:Impairment of Assets 0 0 0 0 0 0 0 0 0 0 0
Net Block 5990.1 6658 7344.1 8093.5 8707.8 9630.3 10495.2 11529.8 13222.9 13420 14477.3
Lease Adjustment 0 0 0 0 0 0 0 0 0 0 0
Capital Work in Progress 6541.5 292 174.9 123.8 224.9 106.6 119.1 12.9 12.8 11.3 18.9
Producing Properties 0 0 0 0 0 0 0 0 0 0 0
Investments 0 1218 4604.3 6333.2 0 0 0 0.3 0.3 0.3 0.3
Current Assets, Loans & Advances
Inventories 3645.5 3488.2 3504.4 3829.1 3501.4 3245 3508.4 3925.8 5376.1 7619.6 7980.1
Sundry Debtors 16012.6 9205.5 9304.8 7767.2 12057.2 8244.7 4350.6 4637.8 8211.4 4531.9 5404.7
Cash and Bank 294.4 6908.1 1076 1613.7 133.9 118.3 1334.8 1964.5 181.6 261.2 399.9
Loans and Advances 1213.8 1230.9 1372.1 1319.2 1257.1 1950 1523.1 2902.8 2291.7 1955.3 2479.9
Total Current Assets 21166.3 20832.7 15257.3 14529.2 16949.6 13558 10716.9 13430.9 16060.8 14368 16264.6
Less : Current Liabilities and Provisions
Current Liabilities 7710.8 5785.3 6655.1 6476.2 5506.5 4615.4 5036 2293.1 3238.7 4470.2 6857.7
Provisions 2281.9 2166.4 2213.6 1782.5 1432.2 1752.6 1624.2 3384.4 5517.4 1717.7 803.3
Total Current Liabilities 9992.7 7951.7 8868.7 8258.7 6938.7 6368 6660.2 5677.5 8756.1 6187.9 7661
Net Current Assets 11173.6 12881 6388.6 6270.5 10010.9 7190 4056.7 7753.4 7304.7 8180.1 8603.6
Miscellaneous Expenses not
written off 0 0 0 0 0.1 67.8 168.2 268.8 369 130.3 4.1
Deferred Tax Assets 544.8 438.7 691.5 559.7 235.5 225.1 241.8 368.5 209.4 0 0
Deferred Tax Liability 1397.6 1634.7 1847.7 2057.4 2200.4 2381.7 2621.3 2951.2 3309.2 2628.4 0
Net Deferred Tax -852.8 -1196 -1156.2 -1497.7 -1964.9 -2156.6 -2379.5 -2582.7 -3099.8 -2628.4 0
Other Assets 0 0 0 0 0 0 0 0 0 0 0
Total Assets 22852.4 19853 17355.7 19323.3 16978.8 14838.1 12459.7 16982.5 17809.9 19113.6 23104.2
Contingent Liabilities 4910.4 2327.3 2301.2 2138.5 2156.8 1238 1345.6 707.5 722.7 1297.7 1491.7

24. FINANCE - BALANCE SHEET - (Curr: Rs in Mn.)
As on 14/08/2012
2000 1999 1998 1997
SOURCES OF FUNDS :
Share Capital 4905.8 4905.8 4905.8 4905.8
Reserves Total 8982.3 8764.7 8489.1 7160.9
Equity Share Warrants 0 0 0 0
Equity Application Money 0 0 0 0
Total Shareholders Funds 13888.1 13670.5 13394.9 12066.7
Secured Loans 7951.5 7596.3 8144.8 7550.8
Unsecured Loans 547.5 820.7 138.6 330.9
Total Debt 8499 8417 8283.4 7881.7
Other Liabilities 0 0 0 0
Total Liabilities 22387.1 22087.5 21678.3 19948.4
APPLICATION OF FUNDS :
Gross Block 25278.5 24839.2 23715.7 23095.8
Less : Accumulated
Depreciation 11359.4 10346.3 9396.2 8424.8
Less:Impairment of Assets 0 0 0 0
Net Block 13919.1 14492.9 14319.5 14671
Lease Adjustment 0 0 0 0
Capital Work in Progress 280 332.6 953.9 821.5
Producing Properties 0 0 0 0
Investments 0.3 0.3 0.3 0.3
Current Assets, Loans & Advances
Inventories 9293.9 7534.6 7035 4841.5
Sundry Debtors 3972.4 4391.5 2728 1806.1
Cash and Bank 385.6 165.9 129.8 169.8
Loans and Advances 2268.8 2539.8 2539.9 2051.8
Total Current Assets 15920.7 14631.8 12432.7 8869.2
Less : Current Liabilities and Provisions
Current Liabilities 7136.6 6810.4 4780.3 4233.6
Provisions 604.6 580.8 1263.8 187.6
Total Current Liabilities 7741.2 7391.2 6044.1 4421.2
Net Current Assets 8179.5 7240.6 6388.6 4448
Miscellaneous Expenses not
written off 8.2 21.1 16 7.6
Deferred Tax Assets 0 0 0 0
Deferred Tax Liability 0 0 0 0
Net Deferred Tax 0 0 0 0
Other Assets 0 0 0 0
Total Assets 22387.1 22087.5 21678.3 19948.4
Contingent Liabilities 6836.5 2898.3 3449.4 3250.5

26. Asian Fertilizers Limited
Company Overview
Asian Fertilizers (ASIANFR), incorporated in 1986, is an Indian-based company engaged in the
manufacture and distribution of fertilizers and other agricultural chemicals. The company has its head office
in Kanpur, India.
Asian Fertilizers‟ products include insecticides, fungicides, and herbicides, from technical chemicals or
concentrates that require further processing before use. It also manufactures nitrogenous and phosphatic
fertilizers.
The Asian Fertilizers shares are traded on the Bombay Stock Exchange under the ticker symbol <524695>.
Description and history
The Company is engaged in the manufacture of single super phosphate fertilizer, both in powder and
granulated form, and sulfuric acid.
The Company was listed at Bombay stock exchange with an authorized 1,00,00,000 Equity Shares of Rs. 10
each , issued and fully paid up capital of 79,01,500 Equity Shares of Rs. 10 each. The registration no : 7621.
The Company has its manufacturing unit located in the Gorakhpur district of Uttar Pradesh with annual
installed capacities of 66,000 MT single super phosphate powder, 66,000 MT granulated single super
phosphate, and 33,000 MT sulfuric acid. It has a purchase agreement with Shriram Fertilizers & Chemicals,
a division of DCM Shriram Consolidated. It has been suspended from the BSE on account of non
compliance with listing agreement clauses.
INDUSTRY STRUCTURE
Nitrogen, phosphors, potassium are three major constituents of fertilizers. India has good reserves of
phosphate rocks, which can be processed to give water soluble phosphatic fertilizers. Single Super
Phosphate is a cheap fertilizer and also known as common farmer's fertilizer.
PLANT OPERATIONS

27. The turnover of the company has increased as compared to the previous year due to better market
conditions. In quantum vise production of SSP has decreased about 17% whereas production of Sulphuric
Acid has increased about 12%, Net Profit has also been affected due to the above reasons.
Pursuant to the purchase agreement entered into with M/s Shriram Fertilizers &Chemicals (A Division of
DCM Shriram Consolidated Ltd.) on 22.10.02. The company has been able to achieve production of 40454
MT of SSP during the year 2010-11 against the targeted production of 48000 MT which is about 84 % of
the production target and 61% of installed capacity. The company has entered a fresh purchase agreement
with Shriram Fertilizers & Chemical (A division of Shriram Consolidated Ltd.) from1.4.11, in which the
total production target is fixed 65000 MT & Shriram Fertilizers & Chemicals has agreed to purchase total
production of SSP. The company has agreed to pay only commission on sales and interest on deployed
advances @ 1% - SBI PLR to Shriram Fertilizers & Chemicals. To maintain the production schedule, it has
installed a new grinding mill so that targeted production can be achieved smoothly.
FINANCE
As on date the company has no debts owing to Financial Institutions.
PUBLIC DEPOSIT
The company has not invited any deposit from the public in terms of provisions of section 58-A of the
Companies Act, 1956 read with the Companies (Acceptance of Deposits)Rules, 1975.
DIRECTORS
Mr. Somil Matanhelia whole time director & Mr. Anurag Tulsyan director of the company retires by
rotation at the forthcoming Annual General Meeting & being eligible, offers himself for re-appointment.
Mr. Ashok Kumar Matanhelia was re-appointed by Board of Directors on the remuneration package as
recommended by remuneration committee as Managing Director of the company w.e.f. 1st April 2011 after
passing the necessary resolution as required in accordance with provisions of section 198, 268, 269, 310,
311, 317 read with schedule XIII of Companies Act, 1956.
Mr. Somil Matanhelia was re-appointed as whole time Director and designated as Executive Director by
Board of Directors on the remuneration package as recommended by remuneration committee w.e.f. 1st
October 2010 after passing the necessary resolution as required in accordance with provision of Section 198,
268, 269, 310, 311, 317 read with schedule XIII of Companies Act, 1956.
All the resolution for the approved of Share Holders are being placed before Annual General Meeting.
OPPORTUNITIES

28. Since agriculture sector has its own importance in Indian economy, it is bound to grow and ASIANFR‟s
product SSP has also its own importance in Agriculture sector.
Due to heavy increase in imported price of DAP and non-availability of DAP in worldmarket, Govt. of India
has emphasized to promote SSP to fulfill the demand of phosphatic fertilizers.
RISK AND CONCERN
(a) Government Policy:
The Govt. of has opened the MRP of SSP from 01/04/11 and manufacturers are free to decide their rates.
(b) Availability of Raw Material:
Rajasthan State Mines & Mineral Ltd., a Govt. undertaking is the sole supplier of company‟s basic raw
material i.e. Rock Phosphate. The company has also imported the Rock Phosphate during the year.
(c) Subsidy on SSP
The Govt. of India has introduced nutrient base subsidy policy for all type of fertilizers including SSP. The
Govt. of India fixed subsidy for whole year.
TOTAL QUALITY MANAGEMENT
The emphasis on quality management followed by the company has yielded harmonious relationship at all
levels. The management philosophy to have a strong marketing focus with excellent customer's services in a
wide-ranging marketing area is apparent from the excellent achievement on this score in the past.
CONSERVATION OF ENERGY
The company has been making continuous efforts to reduce energy consumption and achieve high plant
operating efficiencies. The requisite information with regard to conservation, technology absorption and
foreign exchange earnings and outgo in terms of the Companies Act,1956 (Disclosure of Particulars in the
Report of Board of Directors) Rules,1988 is set out in a separate statement attached here to as Annexure-I.
ENVIRONMENT
The focus of the company is "Environment " friendly and quality production by adopting stringent controls
for pollution free plant running coupled with regular monitoring arrangements for air, water and effluent
zero level pollution.

29. COMPANY’S PHILOSOPHY
The company strongly believes in good corporate governance. Strong corporate governance policy reflects
healthy business growth besides being significant weapon of investor protection. Good corporate
governance provides an appropriate framework to the Board & Management to carry out of the objectives
that are in the interest of the company and shareholders. Corporate Governance based on the principles of
integrity, fairness, equity, transparency, accountability and commitment to values. Good Governance
practices stem from the culture and mindset of the organization. Corporate Governance is an integral part of
management, execution of business plans, policies and processes as the company believes that it is a tool to
attain and enhance the competitive strengths in business and ensure sustained performance for continuously
enhancing the value for every stakeholder. Accordingly, Asian Fertilizers Limited endeavors to adhere to
the highest levels of transparency, accountability and ethics in all operations fully realizing at the same time
social responsibilities.

30. Investment :
2011 2010 2009 2008 2007 2006 2005 2004 2001 2000 1999 1998
68.8 61.6 58.7 45.8 45.2 30.8 58.8 72.5 136.5 151.9 146.4 140.6
Company made huge investment in the early years but in the coming years, the investment decreased at a
considerable rate. Post 2006, the company started increasing its investments again.
0
20
40
60
80
100
120
140
160
2011 2010 2009 2008 2007 2006 2005 2004 2001 2000 1999 1998
Investment (Rs. In Million)
Investment (Rs. In Million)

31. sSales Turnover :
2011 2010 2009 2008 2007 2006 2005 2004 2001 2000 1999 1998
394 288 569 179 187 238.6 244.5 192 167 204 208 165
Sales turnover has been steady but comparatively low till 2008. After 2008, the company’s sales turnover increased
to a huge extent.
0
100
200
300
400
500
600
2011 2010 2009 2008 2007 2006 2005 2004 2001 2000 1999 1998
Sales Turnover (Rs. in Million)
Sales Turnover (Rs. in Million)

32. Wages :
2011 2010 2009 2008 2007 2006 2005 2004 2001 2000 1999 1998
10 10 8.5 7.1 8.4 7.3 7.4 6.4 8.8 8.8 7.5 6.3
There has been a little variation in the amount of money the company spent in the wages. There has been 2
noticeable downward trends in 2004 and 2008, but otherwise, amount spent on wages has been increasing steadily.
0
2
4
6
8
10
12
2011 2010 2009 2008 2007 2006 2005 2004 2001 2000 1999 1998
Wages (Rs. In Million)
Wages (Rs. In Million)

33. Cost of Production :
2011 2010 2009 2008 2007 2006 2005 2004 2001 2000 1999 1998
374.8 292.9 515.8 163.7 172.3 223.8 227.1 183.3 147.6 175.4 157.9 130.6
The Cost of production for the period 1998 – 2008 does not show much variation, but from 2009 – 2011, the cost of
production has reached a high level.
0
100
200
300
400
500
600
2011 2010 2009 2008 2007 2006 2005 2004 2001 2000 1999 1998
Cost of Production (Rs. In Million)
Cost of Production (Rs. In Million)

34. Net Profit :
2011 2010 2009 2008 2007 2006 2005 2004 2001 2000 1999 1998
7.1 3.3 16.8 3.6 1.8 -0.3 4.8 7.5 -43 -14 0.6 -9
Company’s net profit hasn’t been much. Also company suffered huge losses during 1998 – 2001; but later it
stabilized and incurred decent profits.
-50
-40
-30
-20
-10
0
10
20
2011 2010 2009 2008 2007 2006 2005 2004 2001 2000 1999 1998
Net Profit (Rs. In Million)
Net Profit (Rs. In Million)

35. Rate of Growth (%) -
2011 2010 2009 2008 2007 2006
ROG-Net Worth (%) 14.1 7.04 55.8 13.6 21 313
ROG-Capital Employed (%) 11.7 4.94 28.2 1.33 46.8 -47.6
ROG-Net Sales (%) 35.2 -48.5 227 -6.73 -22.1 -3.61
ROG-Cost of Production (%) 5.52 -38.8 271 -19.1 -26.2 6.67
ROG-Total Assets (%) 23.1 47.44 -9.93 2.2 14.3 0.54
ROG-PBIT (%) 136 -83 500 -37.7 -62.5 116
ROG-PAT (%) 115 -80.4 367 -21.7 -68.5 198
2005 2004 2001 2000 1999 1998
ROG-Net Worth (%) 1225 0 -109 -26.5 1.12 -14.4
ROG-Capital Employed (%) -18.9 0 -10.1 3.76 4.13 -3.23
ROG-Net Sales (%) 27.5 0 -18.5 -1.21 25.6 -15.2
ROG-Cost of Production (%) 27.9 0 -12.6 5.03 32.8 -22.4
ROG-Total Assets (%) 0.82 0 -17.5 -0.1 15 -5.37
ROG-PBIT (%) -19.1 0 2110 -107 155 -67.5
ROG-PAT (%) -30 0 203 -2483 -107 -343

36. Rate of Growth (%) :
-3000
-2000
-1000
0
1000
2000
3000
2011 2010 2009 2008 2007 2006 2005 2004 2001 2000 1999 1998
Rate of Growth (%)
ROG-Net Worth (%)
ROG-Capital Employed (%)
ROG-Net Sales (%)
ROG-Cost of Production (%)
ROG-Total Assets (%)
ROG-PBIT (%)
ROG-PAT (%)

37. FINANCE - BALANCE SHEET - (Curr: Rs in Mn.)
As on 14/08/2012
COMPANY/FINANCE/BALANCE SHEET/4262/Asian Fertilizer¤CmbDetail»0¤CmbCommonsize»0
201103 201003 200903 200803 200703 200603 200503 200403 200106 200003 199903 199803
SOURCES OF FUNDS
:
Share Capital 78.4 78.4 78.4 78.4 78.4 78.4 78.4 78.4 78.4 78.4 78.4 78.4
Reserves Total -21.1 -28.2 -31.5 -48.3 -51.9 -56.5 -73.1 -78 -82 -38.7 -24.4 -25
Equity Share Warrants 0 0 0 0 0 0 0 0 0 0 0 0
Equity Application
Money 0 0 0 0 0 0 0 0 0 0 0 0
Total Shareholders
Funds 57.3 50.2 46.9 30.1 26.5 21.9 5.3 0.4 -3.6 39.7 54 53.4
Secured Loans 1.3 1.2 1.6 0.1 4.7 8.2 48.2 66.8 134.8 106.9 86.2 80.2
Unsecured Loans 10.2 10.2 10.2 15.6 14 0.7 5.3 5.3 5.3 5.3 6.2 7
Total Debt 11.5 11.4 11.8 15.7 18.7 8.9 53.5 72.1 140.1 112.2 92.4 87.2
Other Liabilities 0 0 0 0 0 0 0 0 0 0 0 0
Total Liabilities 68.8 61.6 58.7 45.8 45.2 30.8 58.8 72.5 136.5 151.9 146.4 140.6
APPLICATION OF
FUNDS :
Gross Block 139 137.9 137.4 134.4 134.3 133.6 133.4 133.7 126.9 126.9 126 125.2
Less : Accumulated
Depreciation 104.7 102.3 99.9 97.7 95.5 93.5 91.3 90 75.9 67.9 58.2 48
Less:Impairment of
Assets 0 0 0 0 0 0 0 0 0 0 0 0
Net Block 34.3 35.6 37.5 36.7 38.8 40.1 42.1 43.7 51 59 67.8 77.2
Lease Adjustment 0 0 0 0 0 0 0 0 0 0 0 0
Capital Work in
Progress 2.4 0 0 0 0 0.7 0.5 0.3 2.3 2.3 0 0
Producing Properties 0 0 0 0 0 0 0 0 0 0 0 0
Investments 0 0 0 0 0 0 0 0 0 0 0 0
Current Assets, Loans &
Advances
Inventories 125 101.4 46 32.2 55.2 40.7 21.1 15.1 22.2 67.3 51 40.8
Sundry Debtors 12.4 9.5 8.1 15.9 7.4 5.5 9.3 13.5 29.8 35.5 44.4 28.7
Cash and Bank 8.4 2.7 1.6 13.2 2 0.6 0.4 0.7 1.1 2.4 1.5 4.4
Loans and Advances 29.9 23.3 23.8 31.9 23.7 23.6 37.2 36.4 60.5 35.8 37.8 25
Total Current Assets 175.7 136.9 79.5 93.2 88.3 70.4 68 65.7 113.6 141 134.7 98.9
Less : Current Liabilities
and Provisions
Current Liabilities 138.4 107.2 52.9 81.3 78.6 77.3 50 35.7 31.3 51.7 57.7 37.4
Provisions 5.2 3.7 5.4 2.8 3.3 3.1 1.8 1.5 0 0 0 0
Total Current Liabilities 143.6 110.9 58.3 84.1 81.9 80.4 51.8 37.2 31.3 51.7 57.7 37.4
Net Current Assets 32.1 26 21.2 9.1 6.4 -10 16.2 28.5 82.3 89.3 77 61.5
Miscellaneous Expenses
not written off 0 0 0 0 0 0 0 0 0.9 1.3 1.6 1.9
Deferred Tax Assets 0 0 0 0 0 0 0 0 0 0 0 0
Deferred Tax Liability 0 0 0 0 0 0 0 0 0 0 0 0
Net Deferred Tax 0 0 0 0 0 0 0 0 0 0 0 0
Other Assets 0 0 0 0 0 0 0 0 0 0 0 0
Total Assets 68.8 61.6 58.7 45.8 45.2 30.8 58.8 72.5 136.5 151.9 146.4 140.6
Contingent Liabilities 24 24 11.9 2.9 4.4 4.7 8.1 3 2.8 1.7 4.9 18.1

38. Comparison
National Fertilizers Limited Vs. Asian Fertilizers Limited
1. Investment
It is evident from the graph that National Fertilizers Ltd. is investing many folds more in the business than Asian
Fertilizers Ltd. It is more evident from the fact that the highest that the latter has invested is Rs. 151.9 Million, which
is much lesser than the former’s lowest investment during the same period i.e. Rs. 12459.7 Million.
0
5000
10000
15000
20000
25000
201120102009200820072006200520042003200220012000199919981997
National Fertilizers Limited
Asian Fertilisers Limited

39. 2. Sales Turnover
Again, the huge difference in sales turnover of both the companies is clear from this graph. On one hand, National
Fertilizers Limited shows a huge turnover, on the other, the turnover of Asian Fertilizers Limited is very less
comparatively.
However, there is a difference in the variation as well. As can be seen in the graph, the sales turnover of National
Fertilizers Ltd. is showing a steady increase; whereas, the sales turnover of National Fertilisers Limited has been
more or less same till 2008, after which it suddenly shows a huge increase in the sales turnover.
0
10000
20000
30000
40000
50000
60000
70000
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997
National Fertilizers Limited
Asian Fertilisers Limited

40. 3. Wages
Asian Fertilizers Ltd. being a much larger company than National Fertilisers Ltd. has been spending a lot of money on
the wages of the workers working there.
However, in the graph we can see that there has been a big dip in the amount spent for wages in the case National
Fertilizers Limited, whereas the graph of National Fertilizers limited has been more or less consistent.
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997
National Fertilizers Limited
Asian Fertilisers Limited

41. 4. Cost of Production
Here also, the vast gap between the cost of production for the two companies is clearly illustrated from the graph.
Apart from a couple of small downfalls, the graph for National Fertilizers Ltd. shows a consistent rise in the cost of
production; however, in the case of National Fertilizers Limited, we can see that, after a steady increase till 2008, the
cost of production suddenly booms up in the period 2009 – 2011.
0
10000
20000
30000
40000
50000
60000
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997
National Fertilizers Limited
Asian Fertilisers Limited

42. 5. Net Profit
The profits earned by National Fertilizers Ltd. show huge variation during this period, but never suffered a loss, and
also have always been much higher than Asian Fertilizers Ltd.
On the other hand, Asian Fertilizers Ltd. suffered huge losses in the initial period but later emerged from it and
earned decent profits.
-500
0
500
1000
1500
2000
2500
3000
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997
National Fertilizers Limited
Asian Fertilisers Limited

43. Conclusion
After this analysis of two fertilizer companies i.e. National Fertilizers Ltd. (Public Sector)
and Asian Fertilizers Ltd. (Private Sector), we can conclude that each of them is currently
doing well in their respective fields. Though they faced initial ups and downs, but slowly
and steadily, they have been moving to achieve their goals. They increased their
productivity, wages, sales and ultimately their profits.
In either case, the world's economists now have an example of an economy that did not have
remarkably favorable initial conditions but that has sustained rapid economic growth over
two decades. To those for whom the East Asian miracle seemed out of reach--for whom the
advice to emulate South Korea seemed so unattainable as to lead to despair--advice to
emulate India may well prove more useful.

44. Bibliography
Investment decisions in Indian Public Sector
- By Dr. P. K . Chakrabarti
Coal Industry in West Bengal
- By Dr. P. K . Chakrabarti
Wage – Productivity relationship in Indian Public Sector
- By Dr. P. K . Chakrabarti
http://www.indiainfoline.com/Markets/Company/Fundamentals/Management-Discussions/Asian-
Fertilizers-Ltd/524695
listofcompanies.co.in/asian-fertilizers-ltd/
www.indianfertilizer.com
http://www.economywatch.com/indian-fertilizer-industry/challenges.html
http://www.indianmirror.com/indian-industries/fertilizer.html
http://en.wikipedia.org/wiki/Economy_of_India