Financial Management Focus on Operational Performance of Paper Industry in Andhra Pradesh State of India : Empirical Research Findings *

By Reddy, G. Sudarsana; Reddy, C. Sivarami et al. | Journal of Financial Management & Analysis, July-December 2014 | Go to article overview

Financial Management Focus on Operational Performance of Paper Industry in Andhra Pradesh State of India : Empirical Research Findings *


Reddy, G. Sudarsana, Reddy, C. Sivarami, R eddy, P. Mohan, Journal of Financial Management & Analysis


Introduction

Firm may have abundant resources but if the available funds are not properly utilised, it will approach an early end. Every effort should be made to make the finance function as effective as possible. Financial appraisal is helpful to judge the effectiveness of the finance function of the firm. Robert opines that, it as a technique of x-raying the financial position as well as progress of the company1. The analysis of financial statements spotlights the significant (profit & loss account and balance sheet) facts and relationship concerning managerial performance, corporate efficiency, financial strengths and weaknesses and creditworthiness that would have otherwise been buried in a maze of details.

Andhra Pradesh is one of the leading producers of paper in the country. It has occupied third place in the country accounting for 10.14 per cent of share in the total capacity utilisation. There are 22 paper mills in the State with an annual installed capacity of 4.92 lakh tonnes per annum. Regrettably, majority of the paper mills are in the state are in red. The main reason for their poor performance is their failure to manage their finances effectively. A time has, therefore, come to take stock of the causes for ineffective financial management of the sample paper mills and the final conclusions drawn and inferences arrived at would provide effective guidelines to the management of paper mills and other stakeholders.

Methodology Used

The study confines to the financial appraisal of paper industry in Andhra Pradesh covering a ten-year period commencing with 1989-90 and ending with 1998-99, As on 31st December 1999, there were 22 paper mills consisting of three large and 19 small paper mills, with an installed capacity of 4.92 lakh tonnes per annum. Of the 22 paper mills, three mills were closed between 1989-90 and 1998-1999 for various reasons and four new mills were started between 1991 and 1999. The closed and the newly started mills have been excluded from this study, because the life period of newly started paper mills is less than the study period and the study about closed units is not possible in view of inaccessibility to data. This leaves a total of 15 mills for the purpose of the study. Three of these are large mills and 12 are small mills. The researchers have been successful in getting response from all the three large mills and from only three small mills. The sample size, therefore, constitutes six mills. It is felt that these six mills are representatives of the total paper industry in Andhra Pradesh.

The data have been obtained from secondary sources which have been obtained from the annual reports and accounts of the sample paper mills. The data published have been obtained from reports prepared by the Development Council for Paper, Pulp and Allied Industries (DCPl), Annual Survey of Industries, the Stock Exchange Official Directory, Centre for Industrial and Economic Research (CIER's) - Industrial Data Book, and Reports and Publications of Planning Commission. Relevant information is also gathered from the data published by Indian Pulp and Paper Technical Association (IPPTA) and The Economic Times Research Bureau. Various journals and periodicals on finance and industry have also been referred to. The data from various sources have been analysed with the help of various financial tools and techniques such as ratio analysis, trend analysis, common size analysis and comparative financial statement analysis. Statistical tests have been applied in appropriate cases.

In order to facilitate uniformity in data, years have been readjusted and the data have been recast as on 31st March of each year. The figures taken from the annual reports have been rounded off to two decimals of rupees in lakhs (one lakh=l 00,000). The data available in financial statements have been translated into a pre-designed structure format so that a meaningful interpretation could be made through inter-firm and intra-firm comparisons. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Financial Management Focus on Operational Performance of Paper Industry in Andhra Pradesh State of India : Empirical Research Findings *
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.