Project: Comparative Analysis Of Financial Statements

OBJECTIVES OF STUDY
The present study “A COMPARATIVE FINANCIAL PERFORMANCE ANALYSIS OF NACL INDUSTRIES LTD.”
Has been designed to achieve the following objectives: -
1. To study the financial position of NACL INDUSTRIES LTD.
2. In respect of above objective we are trying to judge the financial performance of NACL        INDUSTRIES LTD.  
 
 
SCOPE OF STUDY
The present study is confined to the two leading units in steel industry namely NACL INDUSTRIES LTD.  The study covers a period of three years from 2019-20 to 2021-22. This period is enough to cover both the short and medium terms fluctuations and to set reliability.

COMPANY PROFILE
NACL Industries limited is a renowned player in the Agrochemical space. Started in 1993 as Chemagro International Limited. NACL has started off with the manufacturing of Agrochemical Active Ingredients. Today, NACL has emerged as a trustworthy brand in Farming Community.
NACL Industries Limited is an India-based agrochemical company. The Company is in the business of crop protection and manufactures both technical (active ingredient) and formulations. It manufactures products in categories, such as insecticides, herbicides, fungicides, and plant growth regulators. It manufactures a range of technical, such as Myclobutanil, Propiconazole, Profenofos, Pretilachlor and Tricyclazole. Its formulation business is in the Indian market and sells through its retail dealer network across India. It has a range of branded formulations. It also exports technical and formulations and does toll manufacture for various companies. In India, it has over fifty products covering various crops. It exports its products to over thirty countries. The Company's subsidiaries include LR Research Laboratories Private Limited, Nagarjuna Agri-chem (Australia) Pty Limited, NACL Spec-Chem Limited and NACL Multi-chem Private Limited.
NACL is an established player with PAN India presence and is among the top Indian Agrochemical companies. It has over fifty products covering all major crops and most of the geographies. It has a strong logistic presence with over 56 Stock points across India for faster deliveries. NACL’s products are sold in more than 55000 counters. NACL conducts various activities at the field level to educate and bring awareness among the farmers about the fair use of agrochemicals.
NACL is a renowned name in the agrochemical business for over two decades. We are customer centric and offer a wide range of quality products along with customized packing services. With thrust on quality and EHS, we have become one of the reliable contract manufacturers for major MNCs.
It has entered the international market with a vision to become a trusted agrochemical supplier. It contributes to the global crop protection by exporting our products to over thirty countries. It has forayed into International Brand business by registering brands in South-East Asia and Africa and are in the process of expanding our reach in these regions.

 

COMPARITIVE ANALYSIS OF BALANCE SHEET OF NACL INDUSTRIES

S. NO.		Particulars	2020	2021	2022	Absolute Change		Percentage Change
						2020-2021	2021-2022	2020-2021	2021-2022
I	ASSETS
1	Non-current assets
	(a)  Property, plant, and equipment		18,291	18,572	20,354	281	1,782	1.54	9.60
	(b) Right-of-use assets		597	349	461	-248	112	-41.54	32.09
	(c)  Capital work-in-progress		3,482	2,748	955	-734	-1,793	-21.08	-65.25
	(d) Intangible assets		174	149	109	-25	-40	-14.37	-26.85
	(e)  Intangible assets under development		751	799	1,179	48	380	6.39	47.56
	(f)  Financial assets					0	0
		(i) Investments	858	3,022	5,760	2,164	2,738	252.21	90.60
		(ii) Other financial assets	482	401	408	-81	7	-16.80	1.75
	(g)  Income tax assets (net)		407	461	469	54	8	13.27	1.74
	(h)  Other non-current assets		663	1,056	1,804	393	748	59.28	70.83
	Total non-current assets		25,705	27,557	31,499	1,852	3,942	7.20	14.30
2	Current assets
	(a) Inventories		16,450	22,830	41,071	6,380	18,241	38.78	79.90
	(b)  Financial assets
		(i) Trade receivables	35,939	33,582	52,897	-2,357	19,315	-6.56	57.52
		(ii)  Cash and cash equivalents	8,353	6,663	4,455	-1,690	-2,208	-20.23	-33.14
		(iii) Other bank balances	3,415	821	3,210	-2,594	2,389	-75.96	290.99
		(iv) Other financial assets	394	392	614	-2	222	-0.51	56.63
	(c)  Income tax assets (net)		267	-	-	-267
	(d)  Other current assets		4,278	4,950	7,287	672	2,337	15.71	47.21
	Total current assets		69,096	69,238	1,09,534	142	40,296	0.21	58.20
Total assets			94,801	96,795	1,41,033	1,994	44,238	2.10	45.70
II	EQUITY AND LIABILITIES
1	Equity
	(a) Equity share capital		1,926	1,962	1,983	36	21	1.87	1.07
	(b) Other equity		33,127	39,186	46,412	6,059	7,226	18.29	18.44
	Total equity		35,053	41,148	48,395	6,095	7,247	17.39	17.61
2	Non-current liabilities
	(a)  Financial liabilities
		(i) Borrowings	2,175	7,149	8,777	4,974	1,628	228.69	22.77
		(ii)  Lease Liabilities	316	226	261	-90	35	-28.48	15.49
		(iii) Other financial liabilities	1,264	1,176	1,340	-88	164	-6.96	13.95
		(b) Provisions	563	749	1,039	186	290	33.04	38.72
		(c)  Deferred tax liabilities (net)	101	1,076	1,013	975	-63	965.35	-5.86
	Total non-current liabilities		4,419	10,376	12,430	5,957	2,054	134.80	19.80
3	Current Liabilities
	(a)  Financial liabilities
		(i) Borrowings	22,724	11,263	35,275	-11,461	24,012	-50.44	213.19
		(ii)  Lease Liabilities	379	164	238	-215	74	-56.73	45.12
		(iii) Trade payables
		(a) total outstanding dues of micro enterprises and small enterprises	533	1,108	1,891	575	783	107.88	70.67
		(b) total outstanding dues of creditors other than micro enterprises and small enterprises	26,284	26,298	36,997	14	10,699	0.05	40.68
		(iv) Other financial liabilities	3,767	4,405	3,484	638	-921	16.94	-20.91
	(b) Provisions		154	243	281	89	38	57.79	15.64
	(c)  Income tax liabilities (net)		248	452	398	204	-54	82.26	-11.95
	(d)  Other current liabilities		1,240	1,338	1644	98	306	7.90	22.87
	Total current liabilities		55,329	45,271	80,208	-10,058	34,937	-18.18	77.17
	Total liabilities		59,748	55,647	92,638	-4,101	36,991	-6.86	66.47
Total equity and liabilities			94,801	96,795	1,41,033	1,994	44,238	2.10	45.70

INTERPRETATION OF BALANCE SHEET
ASSETS
1.     Non-current Assets:
(a)   Property, Plant and Equipment:
During the year 2020-21 PPE has increased by 1.54% because the company has made certain purchase and sale some of the fixed assets.
During the year 2021-22 PPE has shown an increase of 9.60% out which a major chunk of increase can be seen in the Plant & Equipment and Buildings, this may be because the company is planning for the expansion and increase in the production capacity of the stocks produced.

Particulars	As at March 31, 2022	As at March 31, 2021	As at March 31, 2020
Land	2,508	2,508	2,508
Buildings	4,329	4,056	3,787
Plant and equipment	13,118	11,642	11,590
Furniture and fixtures	65	103	144
Vehicles	83	96	64
Office equipment	81	51	58
Computers	170	116	140
Total	20,354	18,572	18,291
Capital work-in-progress	955	2,748	3,482

 
(b)  Capital work-in-progress:
During the year 2020-21 and 2021-2022 capital work-in-progress has shown a decrease of -21.08% and -65.25% respectively which shows that the certain amount of fixed assets which have been under making process has been completed now and this can also be justified through increase in the PPE in the preceding year also.

Capital work-in-progress

955

2,748

3,482

 
 
(c)   Intangible Assets:
During the year 2020-21 and 2021-22 intangible assets has shown a decrease of -14.37% and -26.85% respectively which shows that intangible assets are amortized.   

Particulars	As at March 31, 2022	As at March 31, 2021	As at March 31, 2020
Computer software	-	-	18
Developed products	109	149	156
Technical knowhow	-	-	-
Total	109	149	174
Intangible assets under development (IAUD)	1,179	799	751

 
(d)  Intangible assets under development:
During the year 2020-21 and 2021-22 the intangible assets increased by 6.39% and 47.56% respectively which shows that a certain intangible asset and made ready for the development to made intangible assets.
 
 
(e)   Financial Assets:
(1)   Investments
The investments made by the company during the year 2020-21 and 2021-22 shows increase of 252.21% and 90.60% respectively which shows that the company’s profit earning is increasing and its idle cash is been invested in the certain sources.

Particulars	Nominal Value	Number of shares	As at March 31, 2022	Number of shares	As at March 31, 2021
Trade
Unquoted equity investments (all fully paid)
(a) Investment in subsidiaries at cost
Nagarjuna Agrichem (Australia) Pty Limited	AUD 1	64,734	32	64,734	32
LR Research Laboratories Private Limited	H10	10,000	1	10,000	1
NACL Spec-Chem Limited [refer notes (i) and (iv) below]	H1	2,00,00,000	439	2,00,00,000	200
NACL Multi-Chem Private Limited [refer note (ii) below]	H1	1,00,000	1	1,00,000	1
(b) Investment in associate at cost
Nasense Labs Private Limited	H10	61,27,513	816	61,27,513	816
(c) Other equity investment at fair value through other comprehensive income
New India Co-operative Bank Limited		-	-	81,875	8
SVC Co-operative Bank Limited	H25	100	*	100	*
Total equity investments (A)			1,289		1,058
Investment in preference shares at fair value through other comprehensive income
Nagarjuna Sh 1207 ubho Green Technologies Private Limited
10% cumulative redeemable preference shares	H100	5,00,000	1	5,00,000	1
Total other investments (B)			1		1
Unquoted investment in compulsory convertible debentures carried at amortized cost
NACL Spec-Chem Limited
0.01% cumulative convertible debentures [refer note (iii) below]	H100,000	6,500	4,436	3,000	1,963
NACL Multi-Chem Limited
0.01% cumulative convertible debentures [refer note (v) below]	H100,000	50	34	-	-
Total other investments (C)			4,470		1,963
Total unquoted investments (A) + (B) + (C)			5,760		3,022
Aggregate carrying value of unquoted non-current investments			5,760		3,022

(2)   Other Financial assets:
During the year 2020-21 the there is a decrease of -16.80% and in the year 2021-22 there is a increase of 1.75% which is due to increase and decrease in the security deposits made by the company.   
 

Particulars	As at March 31, 2022	As at March 31, 2021	As at March 31, 2020
Non-current
Security deposits	408	401	361
Total	408	401	361
Current
Interest accrued on deposits and others	73	13	19
Insurance claims receivable	323	379	362
Others	218	-	13
Total	614	392	394

 
(f)    Other non-current assets:
During the year 2020-21 and 2021-22 there is an increase of 59.28% and 70.83% respectively into which most of the impact is made by the prepaid expenses of which benefits will be taken by the company in future and after that it will be realized.

Particulars	As at March 31, 2022	As at March 31, 2021	As at March 31, 2020
Non-current
Capital advances	165	141	568
Balance with government authorities	75	77	92
Prepaid expenses	1,564	838	3
Total	1,804	1,056	663

 
2.     Current Assets:
(a)   Inventories:
The inventories of the company have shown an increase for the years 2020-21 and 2021-22 which was 38.78% and 79.90 for the years respectively, which shows that the company has increased its production capacity in past three years.

Particulars	As at March 31, 2022	As at March 31, 2021	As at March 31, 2020
Raw materials	17,811	9,845	6,386
Work-in-progress	3,471	2,245	1,574
Finished goods	16,750	8,483	6,305
Traded goods	1,284	660	801
Packing materials	690	626	591
Stores and spares	1,065	971	793
Total	41,071	22,830	16,450

 
 
 
(b)  Financial assets:
(1)   Trade Receivables:
During the year 2020-21 company has shown a decrease -6.56% and in the year 2021-22 it has shown increase of 57.52% which shows the company has sold more goods on credit in the past three years. 

Particulars	As at March 31, 2022	As at March 31, 2021	As at March 31, 2020
Current
(a) Considered good - Secured	698	635	727
(b) Considered good - Unsecured	52,199	32,947	35,212
(c) Which have significant increase in Credit risk	-	-	-
(d) Credit impaired	528	293	489
	53,425	33,875	36,428
Less: Impairment loss on trade receivables	528	293	489
Total	52,897	33,582	35,939

 
(2)   Cash and cash equivalents:
The cash and cash equivalents of the company has been decreasing in the year 2020-21 and 2021-22 by -20.23% and -33.14% respectively which interprets that the company is investing more of its idle cash on certain investments to earn a certain income from it, this also can be justified by seeing the investments of the company.

Particulars	As at March 31, 2022	As at March 31, 2021	As at March 31, 2020
Cash on hand	7	5	7
Balances with banks
in Current accounts	51	1,457	6,556
in Cash credit accounts	869	569
in Export earning foreign currency accounts	575	1,232	1,790
in demand deposit accounts with original maturity of less than 3 months	2,953	3,400
Total	4,455	6,663	8,353

 
(3)   Other bank balances:
During the year 2020-21 the company shows a decrease of -75.96% and increase of 290.99% which depicts in an year company has reduced its other bank balances and in the next year deployed it back.

Particulars	As at March 31, 2022	As at March 31, 2021	As at March 31, 2020
In other deposit accounts
Term deposits with original maturity of more than 3 months	173	500	-
In earmarked accounts
Unclaimed dividend accounts	36	320	210
Margin money / deposit	3,001	1	3,205
Total	3,210	821	3,415

 
(4)   Other financial assets:
During the year 2020-21 the other financial assets of the company has decreased by -0.51% and in the year 2021-22 it shows increase of 56.63% which is due to the changes in insurance claim receivable and accrued interest on deposits and others.

Particulars	As at March 31, 2022	As at March 31, 2021	As at March 31, 2020
Current
Interest accrued on deposits and others	73	13	19
Insurance claims receivable	323	379	362
Others	218	-	13
Total	614	392	394

 
 
(c)   Other current assets:
During the year 2020-21 and 2021-22 there is an increase in the value of the other current assets by 15.71% and 47.21% respectively. It shows that the incomes that are yet to be received by the company by various sources are increasing.

Particulars	As at March 31, 2022	As at March 31, 2021	As at March 31, 2020
Current
Advance to suppliers	422	960	1,015
Balance with government authorities	4,343	2,352	2,023
Advance to related parties	241	9	-
Prepaid expenses	796	517	279
Export Incentive receivable	1,481	1,108	957
Advance to employees	4	4	4
Total	7,287	4,950	4,278

 
 
 
EQUITY & LIABILITIES:
(1)   Equity:
(a)   Equity share capital:
During the year 2020-21 and 2021-2022 company shows and that its equity share capital has shown an increasing ability by 1.87% and 1.07%. It shows that company is diluting its owner by issuing equity share capital.

Particulars	As at March 31, 2022		As at March 31, 2021		As at March 31, 2020
	Number of shares	Amount	Number of shares	Amount	Number of shares	Amount
Authorized share capital:	25,00,00,000	2,500	25,00,00,000	2,500	25,00,00,000	2,500
Fully paid-up equity shares of H 1 each
Issued, subscribed and fully paid-up capital	19,83,07,464	1,983	19,62,17,758	1,962	19,26,05,261	1,926
Fully paid-up equity shares of H 1 each
	19,83,07,464	1,983	19,62,17,758	1,962	19,26,05,261	1,926

 
(b)  Other Equity:
During the year 2020-21 and 2021-2022 the other equity of the company is increasing by 18.29% and 18.44% respectively its shows that the earing of the company is increasing which is transferred by various methods in the other equity.

Particulars	As at March 31, 2022	As at March 31, 2021
General reserve	4,175	4,175
Capital reserve	21	21
Securities premium account	13,506	12,687
Reserve for equity instruments through other comprehensive income	-499	-499
Share warrants	-	154
Stock option reserve	159	71
Retained earnings	29,050	22,577
Total	46,412	39,186

 
 
NON-CURRENT LIABILITIES:
(a)   Financial Liabilities:
(1)   Borrowings
During the year 2020-2021 and 2021-2022 the short-term borrowing of the company is increased by 228.69% and 22.77% respectively. It shows that company is using or acquiring more outside funds for using it in the various parts of the company. May be company is planning of expansion.
 
 
 

Particulars	As at March 31, 2021	As at March 31, 2020
Non-current
Secured - at amortized cost
Term loans
from banks (refer note (a) below)	4,899	2,175
from financial institution (refer note (a) below)	2,250	-
Total - non current	7,149	2,175

 
(2)   Other financial liabilities
During the year 2020-21 other financial liabilities of the company decreased by -6.96% and in the year 2021-2022 it increased by 13.95%.

Particulars	As at March 31, 2021	As at March 31, 2020
Non-current
Trade deposits from dealers	1,066	1,090
Derivative liabilities	110	174
Total - non current	1,176	1,264

 
(b)  Provisions
During the 2020-21 provisions were raised by 33.04% and in the year 2021-2022 it increased by 38.72% which shows that company is ready to anticipate any losses that would my incur due to non-payment in the liabilities.  

Particulars	As at March 31, 2021	As at March 31, 2020
Non-current
Gratuity liability	351	220
Compensated absences	398	343
Total - non current	749	563

 
(c)   Deferred tax liabilities
In the year 2020-2021 the deferred tax liability of the company increased by 965.35% which shows that a certain amount of tax which was unpaid and deferred by the actual amount paid by the company in previous year has incurred where as in the year 2021-2022 it decreased by 5.56% which shows that the deferred amount has been paid by the company during the year.

Particulars	As at March 31, 2021	As at March 31, 2020
Deferred tax liability (net)	1,076	1,322
MAT credit entitlement	-	-1,221
Total	1,076	101

 
CURRENT LIABILITES:
(A) Financial liabilities
(1)   Borrowing
In the year 2020-2021 the company’s current borrowings were decreased by 50.44% which states that any long-term liability that the company was having has been realised in this year. Where as in the year 2021-2022 it increases by 213.19% which shows that another long-term liability or borrowing has been raised by the company in the year.

Particulars	As at March 31, 2021	As at March 31, 2020
Current
Secured - at amortized cost
Repayable on demand from banks (refer note (b) below)	11,263	21,293
Unsecured - at amortized cost
from banks (refer note (c) below)
Others	-	1,431
Total - current	11,263	22,724

 
(2)   Trade payables
During the year 2020-21 and 2021-22 the company has two heads of trade payables namely dues to micro enterprises and small enterprises (107.88% and 70.67%) and creditors other than micro enterprises and small enterprises (0.05% and 40.68%) which shows that the company is purchasing more goods on credit and might be planning to expand its production capacity.

Particulars	As at March 31, 2021	As at March 31, 2020
Total outstanding dues to micro enterprises and small enterprises	1,108	533
Total outstanding dues of creditors other than micro enterprises and small enterprises	26,298	26,284
Total	27,406	26,817

 
 
(3)   Other financial liabilities
During the year 2020-21 the company’s other financial liabilities were increased by 16.94% and in the year 2021-22 it decreased by 20.91%

Particulars	As at March 31, 2021	As at March 31, 2020
Current
Current maturities of long-term borrowings	1,399	1,175
Payable on purchase of property, plant and equipment	2,677	2,342
Interest accrued but not due	9	40
Unclaimed dividend (refer note below)	320	210
Total - current	4,405	3,767

 
(B) Provisions
During the year 2020-21 and 2021-22 companies’ provisions were raised by 57.79% and 15.64% respectively which shows that company has already made itself ready to anticipate any losses that might be incurred by the non-payment that are to be received in the long term.

Particulars	As at March 31, 2021	As at March 31, 2020
Current
Gratuity liability	103	55
Compensated absences	140	99
Total - current	243	154

 
(C) Income tax liabilities
In the year 2020-21 and 2021-22 the company’s income tax liabilities were increased and decreased by 82.26% and -11.95% respectively.

Particulars	As at March 31, 2021	As at March 31, 2020
Advance tax [net of provision ` Nil (2020: ` Nil)]	-	267
Provision for tax [net of advance tax ` 1,433 lakhs (2020: ` 653 lakhs)]	452	248

 
(D) Other current liabilities
During the year 2020-21 and 2021-22 the other current liabilities has increased by 7.90% and 22.87% respectively.

Particulars	As at March 31, 2021	As at March 31, 2020
Advances from customers	781	733
Statutory payables	557	507
Total	1,338	1,240

 
 

COMPARITIVE ANALYSIS OF PROFIT AND LOSS STATEMENT

Particulars	2020	2021	2022	Absolute Change		Percentage Change
				2020-2021	2021-2022	2020-2021	2021-2022
INCOME
Revenue from operations	1,01,489	1,19,137	1,64,016	17,648	44,879	17.39	37.67
Other income	749	1,536	1,640	787	104	105.07	6.77
Total income	1,02,238	1,20,673	1,65,656	18,435	44,983	18.03	37.28
EXPENSES
Cost of materials consumed	60,450	81,479	1,23,767	21,029	42,288	34.79	51.90
Purchases of stock-in-trade	4,564	4,719	7,540	155	2,821	3.40	59.78
Changes in inventories of finished goods, work in progress and stock- in-trade	6,319	-2,708	-10,117	-9,027	-7,409	-142.85	273.60
Employee benefits expense	8,627	9,394	9,993	767	599	8.89	6.38
Finance costs	2,916	2,880	2,984	-36	104	-1.23	3.61
Depreciation and amortisation expense	2,397	2,530	2,495	133	-35	5.55	-1.38
Other expenses	14,671	14,983	18,748	312	3,765	2.13	25.13
Total expenses	99,944	1,13,277	1,55,410	13,333	42,133	13.34	37.19
Profit before tax (I - II)	2,294	7,396	10,246	5,102	2,850	222.41	38.53
Tax expense
(i) Current tax	423	2,606	2,691	2,183	85	516.08	3.26
(ii) Deferred tax	294	-239	-49	-533	190	-181.29	-79.50
Total tax expense	717	2,367	2,642	1,650	275	230.13	11.62
Profit for the year (III - IV)	1,577	5,029	7,604	3,452	2,575	218.90	51.20
Other comprehensive income / (loss)
Items that will not be reclassified subsequently to statement of profit and loss
(a) Remeasurement of defined benefit obligation	-28	-92	-143	-64	-51	228.57	55.43
(b) Income tax expense on remeasurement above	10	23	36	13	13	130.00	56.52
Items that will be reclassified subsequently to statement of profit and loss
(a) Effective portion of loss on designated portion of hedging instrument in a cash flow hedge	-174	64	86	238	22	-136.78	34.38
(b) Income tax expense there on	60	-16	-22	-76	-6	-126.67	37.50
Total other comprehensive loss net of tax	-132	-21	-43	111	-22	-84.09	104.76
Total comprehensive income for the year (V + VI)	1,445	5,008	7,561	3,563	2,553	246.57	50.98
Earnings per equity share of H1 each
Basic (H)	0.94	2.6	3.84	2	1	176.60	47.69
Diluted (H)	0.94	2.6	3.83	2	1	176.60	47.31

 
ANALYSIS AND INETRPRETATION OF PROFIT AND LOSS ACCOUNT
 
1.     Revenue from operations:
During the year 2020-21 and 2021-22 the revenue of the company increases by 17.39% and 37.67% respectively which shows that the company’s revenue from operations is increasing by the preceding years which is a good sign to it.

Particulars	For the year ended March 31, 2021	For the year ended March 31, 2020
Sale of products	116,543	98,777
Other operating revenue (refer note below)	2,594	2,712
Total	119,137	101,489

 
2.     Other income:
In the year 2020-21 the other income of the company was increased by 105.07% as compared to previous year and in 2021-22 the other income of the company was increased by 6.77% we can say that the income from other sources apart from core operations in more in 2021 as compared to 2022.

Particulars	For the year ended March 31, 2021	For the year ended March 31, 2020
Interest income earned on financial assets that are not designated as
fair value through profit and loss	12	9
Interest income	268	43
Unwinding of discount on 0.01% cumulative convertible debentures	72	-
Insurance claims	408	172
Credit impaired trade receivables recovered	106	151
Liabilities / provisions no longer required written back	99	68
Net gain on foreign currency transactions and translations	370	-
Miscellaneous income	201	306
Total	1,536	749

 
3.     Cost of material consumed:
In the year 2020-21 and 2021-22 the cost of material consumed increased by 34.79% and 51.90% as the raw material consumed is increasing the company is planning to increase its production.  

Particulars	For the year ended March 31, 2021	For the year ended March 31, 2020
Raw material consumption	76,249	56,125
Packing material consumption	5,230	4,325
Total	81,479	60,450

 
4.     Changes in inventories of finished goods, work in progress and stock- in-trade:
In the year 2021 change in inventories of finished goods and work in progress got reduced by 104% as compared to previous year and in the year 2022 it was increased by 273.60% this is because the company sold out the stock which was accumulated in the year 2020 another reason is that the sales got increased.
 

Particulars	For the year ended March 31, 2021	For the year ended March 31, 2020
Opening balance
Work-in-progress	1,574	1,342
Finished goods	6,305	10,447
Stock-in-trade	801	3,210
Total opening balance	8,680	14,999
Closing balance
Work-in-progress	2,245	1,574
Finished goods	8,483	6,305
Stock-in-trade	660	801
Total closing balance	11,388	8,680
Net (increase) /decrease in inventories	-2,708	6,319

 
 
5.     Employee benefits expense:
In the year 2021 the employee benefit expenses of the company got increased by 8.89% as compared to previous year and in the year 2022 this got increased by 6.38% which shows that the company employed newer employee in 2021 and there is more recruitment in 2022 as compared to previous year.
 
 

Particulars	For the year ended March 31, 2021	For the year ended March 31, 2020
Salaries, wages, and bonus	8,160	7,367
Contribution to provident and other funds (Refer note below)	617	567
Employee stock compensation expense	71	44
Staff welfare expenses	546	649
Total	9,394	8,627

 
6.     Finance costs:
In the year 2020-21 the finance cost of the company is reduced by 1.23% which states that the any loan taken whose interest is being paid by the company has been laid off where as in the year 2021-22 it increases by 3.61% which states that any new liability loan has been takin by the company.
 

Particulars	For the year ended March 31, 2021	For the year ended March 31, 2020
Interest expenses
Interest on working capital and term loans (gross)	1,941	2,522
Less: Interest cost capitalized	-143	-494
Interest on working capital and term loans (net)	1,798	2,028
Other interest expenses	486	377
Interest on lease liabilities	67	114
Interest cost on amortized assets	97	11
Bank and finance charges	432	386
Total	2,880	2,916

 
 
7.     Depreciation and amortisation expense:
During the year 2020-21 the stated expenses are increasing by 5.55% which shows 8. that there is a increase in the assets and in the year 2021-22 there is a decrease of 1.38% which says that some of the assets as sold or laid off by the company.
 

Particulars	For the year ended March 31, 2021	For the year ended March 31, 2020
Depreciation of property, plant and equipment (Refer Note 4)	2,117	1,742
Less: Depreciation capitalized during the year	80	70
	2,037	1,672
Add: Depreciation on right-of-use assets (Refer Note 4A)	325	402
Add: Amortization of intangible assets (Refer Note 5)	167	323
Total	2,530	2,397

 
 
8.     Other expenses:
The other expenses of the company were increased in the year 2021 by 2.13% as compared to the previous year and in the year 2022 it was again increased by 25.13% because in the year 2022 the production was increased leading to increase in expenses and company has to incur financial cost, new assets were purchased by the company which also resultant in the increase of expense in the form of depreciation.
 

Particulars	For the year ended March 31, 2021	For the year ended March 31, 2020
Consumption of stores and spare parts	755	653
Repairs and maintenance
Buildings	68	49
Plant and machinery	307	279
Others	28	36
Other manufacturing costs	1,495	1,129
Power and fuel	3,147	2,961
Rent	52	20
Rates and taxes	60	75
Communication expenses	70	81
Travel and conveyance	457	986
Legal and professional charges	388	520
Insurance	459	522
Directors' sitting fees	30	14
Auditors' remuneration (refer note (i) below)	52	33
Product development expenses	117	82
Credit impaired trade receivables written off	1,889	1,129
Reversal of provision for credit impaired trade receivables	-956	-546
Allowances for credit impaired receivables and advances	758	811
Royalty	1,029	957
Marketing expenses	1,002	2,389
Freight outward	2,551	1,922
Net loss on disposal of property, plant and equipment	54	28
Intangible assets and intangible assets under development written off	343	138
Goodwill written off	-	121
Reversal of accumulated amortization on goodwill	-	-121
Loss / (gain) on foreign currency transactions and translations	-	-230
Corporate social responsibility expenses (refer note (ii) below)	19	32
Miscellaneous expenses	809	601
Total	14,983	14,671

 
 
9.     Profit after tax:
In the year 2021 the profit after tax was increased up to 218.90% as compared to previous year and in the year 2022 it was increased up to 51.20% as compared to previous year it clearly shows that the earning or profit left with the company was increased after deducting all the taxes.
 
 
 
 
 
 
MY OPINION
In past three financial year 2019-20, 2020-21, and 2021-22 the company’s PAT i.e., profit after tax is showing an increasing tendency which is a good, after analysis I would say that its growth rate is at a good pace it can perform better in the market. In the year company profit after tax was 2021 increased by 218.90% as compared to previous year and in the year 2022 it was again increased by 51.20% which typically depicts that the earning of the company is increasing which is an idle sign for an investor to invest in it. Now commenting on the debt-to-equity ratio of the company it was 1.08% in the year 2022 which also a great sign for the investor to invest in the company because it says that the amount of debt and equity the company is holding or we can it briefly shows the capital structure of the company.
My final opinion about whether the company is investable or not is that the company is investible as all the pattern of the company is in good state make it an idle company to invest in it.   

Strengths and weaknesses:

Companies’ main strength could be its assets holding which make it more reliable and trust worthy in the eyes of investors. Both the current and non-current has been seen increasing in the past years, current assets has increased up to 58.20% and non-current assets has increased up to 14.30%.

Where as its weakness can be its current liabilities of the company as they are also increasing at pace rate, the total current liabilities in the year 2021 was decreased by 18.18% and in in the year 2022 it was raised up to 77.17% which more than the double as compared to previous year. 

 

CONCLUSIONS

The NACL industries limited has shown a very good progress over the years and this has been reflected in the study.

The growth rate of the NACL industries ltd. has been analysed through comparative analysis as a result NACL industries ltd. has emerged as a financially strong and profitable company which keeps its customers and stake holders ahead.

Comparative analysis was considered as a main analytical tool to measure the growth rate of the NACL company ltd.

Comparative analysis has succeeded in providing a clear insight to the financial position of NACL industries ltd. And thus, has been successful in an analysis tool to measure growth rate of the company.