A Study On Financial Performance in Andhra Pradesh Mineral Development Corporation LTD., Mangampet

“A STUDY ON FINANCIAL PERFORMANCE IN
ANDHRA PRADESH MINERAL DEVELOPMENT CORPORATION

LTD., MANGAMPET”
Project Synopsis submitted in partial fulfillment of the requirement for the

Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
Of
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY,
ANANTHAPUR
By
Name: R.NAGENDRA
Reg. No. 17AK1E0051
Under the guidance of
Dr.SESHAGIRI RAO, M.B.A., Ph.D.,

Professor & Project Guide
Department of MBA
DEPARTMENT OF MANAGEMENT STUDIES

ANNAMACHARYA INSTITUTE OF TECHNOLOGY & SCIENCES
TIRUPATI-517520
MBA 2017-2019
AITS - TIRUPATI Page 1

1. INTRODUCTION:
Financial Performance
Finance is the lifeblood of the organization, irrespective of its size mission.
Management of finance in the organization has been changing at a rapid pace after the
inception of the computers in the field. In the modern phase the financial manager is not in a
passive role of a scorekeeper of accounting information and arranging funds, when ever
diversified to do so. Rather, he is confronted with various issues and decisions to ensure that
the funds are raised economically and canalised in most effective manner.
Definition Of Financial Performance:
According the BONNEVILE AND DEWEY:” Financing consists in the rising, providing and
managing of all the money, capital or funds of any kind to be used in connection with the business”.
According to proffer SOLOMAN:” Financial Management is concerned with the efficient

use of any important economic resource, namely capital funds”.
2. INDUSTRY PROFILE
Mining is the basic to all other industries and no progress is possible without mineral
development. Minerals are valuable natural resources as they form the basic raw materials for
most of the industrial products and are essential for man’s progress. Minerals, natural
substances got from the earth by mining are the backbone of our industries and hence are of
commercial and economic use. Mining industry is playing a vital role in the growth and
development of our nation economy. The country is heading towards a stage where larger
consumption of mineral will be required to sustain even the minimum growth rate of our
economy. The mineral industry comprising mining, geology, mineral processing, metallurgy
and materials is characterized by distinctive and special features and considered as dynamic
in nature. It is an industry meeting the basic raw materials requirement of various finished
products.

3. COMPANY PROFILE
The Andhra Pradesh Mineral Development Corporation Limited (APMDC) (formerly

The Andhra Pradesh Mining Corporation Limited) was incorporated in the year 1961 as a
wholly State Owned Undertaking of Govt. of Andhra Pradesh, having its registered office at
8-3-945, 2nd floor, Pancom Business center, Ameerpet, Hyderabad – 500073 with the main
objectives of the development of mineral resources of the state including exploration,
exploitation, conservation, processing, beneficiation, conversion into value added products,
promotion of mineral based industries and sale ores mined. The corporation is the largest
producer and exporter of barites in India. It contributes 95% of the production in the country.
APMDC maintains International standards in barites quality.
Consequently the following New Projects have been initiated and the same are under progress.
Galaxy
: Mining and Processing
Low Grade Iron Ore : Mining and Beneficiation
Semi-precious Stones : Exploration and Exploitation
Silica Sand : Mining and Beneficiation
The Corporation offers the following products/ services;
The Corporation offers Barytes lumps and powder of various grades for exports to Oil
Well Drilling Companies for making Drilling Muds. The corporation also offers barites
powder for domestic consumption to Oil and Natural Gas Corporation and Oil India for
making Oil well drilling muds and

4. REVIEW OF LITERATURE
MEANING OF FINANCIAL PERORMANCE

Finance is one of the foundations of all kinds of Economic activities. Finance is the
life-blood of a business. The financial management study-blood of a business. The financial
management study deals with the process of procuring necessary financial resource and their
judicious use with a view to maximizing the value of the firm and their by the value of the
owners i.e. equity share holders in a company. Practicing managers are interest in this
subject because among the most crucial decisions of the firm are those which relate to
finance, and an understanding of the theory of financial management provides them with
conceptual and analytical insights to make those decisions skillfully.
NEED & IMPORTANCE OF FINANCIAL PERFORMANCE:
The analysis and interpretation of financial statements is used to determine the financial
position and results of operation as well. A number of methods or devices are used to study the
relationship between different statements. An effort is made to use those devices, which clearly
analyze the position of the enterprise
The following methods of analysis are generally used.
 Comparative statements
 Trend Analysis
 Common – Size statements
 Funds flow Analysis
 Cash flow Analysis
 Ratio Analysis
 Cost – volume – Profit Analysis

5.Objectives of study:
 To analyze the financial position of APMDC LTD through ratio analysis,

common size financial statements and comparative financial statements for
2017-18.
 To analyze the liquidity position of the APMDC Ltd for the period of 2017-
18.
 To analyze the long term solvency position for 2017-18 of APMDC Ltd
 To analyze the turnover and profitability position for the period of APMDC
LTD.
 To analyze the operating efficiency for 2017-18.
6.Research methodology:
The study is based entirely on the data that has been collected .
DATA COLLECTION:
Primary data is known as synonymous to first hand information that is exclusively
collected for the study of the primary data in calculated for sake this Study has been the
communication with the states members and personal Dias.
This secondary data is gathered from financial statements and records of the company
like annual reports and its informative brochures. Information is also collected from the academic
books and journals available on the subject.
7. SCOPE OF THE STUDY
The scope of the present study is the analysis of financial performance of

APMDC LTD by adopting comparative financial statement analysis, Common size
statement analysis and financial ratios
The APMDC LTD overall performance is simplify and managed act as a
externally performed and supported from beginning to end

8.Limitations of study:
 Confidential matters relate to the financial statements and Auditor’s Reports.

 It is only a study on of interim reports
 It does not consider changes in price levels
 financial analysis is based on only monetary information and non monetary factors
are ignored
 A collection of academic data is difficult because of the study schedule of the
company employees.
 The study was conducted two months only
9. Findings, suggestions, conclusion:
 The analysis of financing of the APMDC Ltd, the year 2017-18 is increased by 32.134
% at the time fixed assets are 13.86. The percentage of current liabilities less than the
current assets. The reserves and surpluses are increases continuously.
 In the year 2016-17 fixed assets are increased 25.491. The Sundry debtors decreased
263.74%
 In the year 2014-15 the current assets is double than current liabilities.
 The analysis of financing of the APMDC Ltd, the year 2013-14 is increased by 1.936 %
at the time fixed assets are decreased.
B. SUGGESTIONS:
 Firm absolute liquid assets position is not up to the mark so the firm may take steps to
improve the absolute liquidity position
 Variance in sales volume is high. So the firm takes steps to minimize the variances in
sales volume.
 To keep operating expenses under control, cost controlling measures are to be
intensified.
 The funds in reserve and surpluses may to be used for the expansion and implement
new technology.
 To introduce the inventory control system.

C. CONCLUSION:
After finding and suggestions given by me i would like to calculate the APMDC LTD
performance is highly satisfactory in the way of utilization of funds and allocation of funds.
Working capital turnover decreased in some years so the firm may take steps to
improve the working capital turnover in the forth coming years.

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“A STUDY ON FINANCIAL PERFORMANCE IN

ANDHRA PRADESH MINERAL DEVELOPMENT CORPORATION

Project Synopsis submitted in partial fulfillment of the requirement for the

Reg. No. 17AK1E0051

Under the guidance of

Dr.SESHAGIRI RAO, M.B.A., Ph.D.,

DEPARTMENT OF MANAGEMENT STUDIES

AITS - TIRUPATI Page 1

Definition Of Financial Performance:

According to proffer SOLOMAN:” Financial Management is concerned with the efficient

AITS - TIRUPATI Page 2

The Andhra Pradesh Mineral Development Corporation Limited (APMDC) (formerly

Semi-precious Stones : Exploration and Exploitation

Silica Sand : Mining and Beneficiation

The Corporation offers the following products/ services;

making Oil well drilling muds and

AITS - TIRUPATI Page 3

MEANING OF FINANCIAL PERORMANCE

NEED & IMPORTANCE OF FINANCIAL PERFORMANCE:

The following methods of analysis are generally used.

AITS - TIRUPATI Page 4

 To analyze the financial position of APMDC LTD through ratio analysis,

7. SCOPE OF THE STUDY

The scope of the present study is the analysis of financial performance of

AITS - TIRUPATI Page 5

 Confidential matters relate to the financial statements and Auditor’s Reports.

9. Findings, suggestions, conclusion:

AITS - TIRUPATI Page 6

AITS - TIRUPATI Page 7

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