Background of the Study

This study highlights how Gujarat Narmada Valley Fertilizers Company has performed in last five years. In this study financial data for last five years has been gathered and then with appropriate tools and techniques financial statement were analyzed. In this study to get the perfect idea about GNFCs performance all the ratios of GNFC are compared with the industry average ratio. Industry average ratios are found on the bases of average ratios of top four companies of fertilizer industry they are Nagarjuna Fertilisers and Chemicals, Coromandel International Ltd., Chambal Fertilisers & Chemicals Ltd., Gujarat State Fertilizer & Chemicals Ltd. With this study GNFCs performance is easily compared with the top companies of fertilizer industry so we can easily found where GNFC is lacking compared to all other companies in industry. As to calculate industry average ratios, top companies were taken which have highest share in industry so we can have more accurate idea about industry average ratio. This study mainly focuses on the performance of GNFC only. Various tools like multistep income statement, trend analysis, commonsize statement, comparative statement and ratio analysis is taken to do the analysis. Study will reveal the past performance, current performance, and trend of the company and will also help in estimating future performance of company.