Vol. 11, Special Issue 8 (2022)

Author(s):
Vivek Prasad, K Uma, D Murugananthi, R Pangayar Selvi and M Priyadharshini

Abstract:
To be able to feed the expanding populations in our nation and the rest of the world, fertilisers and seeds are needed in ever-increasing amounts. Huge investments in the input industry have been planned and approved by the Indian government. Input businesses are numerous and active in India. Profitability is one of the key requirements for any firm looking to stay in business. The value of the company will be maximised and its overall risk will be reduced by careful research of the financial stability of companies. With the help of the data that are now accessible on the four Indian seed and four fertiliser firms that were chosen, an effort has been made in the current study to assess the financial risk involved with the company. Indian seed company of choice. specifically, Kaveri Seed Company Ltd.(KSCL), JK Agri Genetics Ltd.(JKAGL), Shree Ganesh Biotech Ltd.(SGBL), Mangalam Seeds Ltd.(MSL) and Indian fertilisers company of choice. Specifically, National Fertilisers Ltd.(NFL), Coromandel International Ltd.(COROMANDEL), Chambal Fertilisers and Chemicals Ltd.(CHAMBLFERT), Deepak Fertilisers and Petrochemicals Corporation Ltd.(DFPCL). The information was gathered during a ten-year period, from the financial years 2011–12 to 2020–21.This paper aims to investigate the reliability of Altman Z-score model in predicating the possibility of financial failure that threaten agriculture input industry in India, at least a year before its occurrence. To figure out the financial efficiency of the various seed and fertilizers companies, Altman Z score model was used for the study. The study revealed that in seed companies three companies were in safe zone and one company was in grey zone. In fertilizer companies it was found that three companies were in grey zone and one company was in distress zone. The financial health of the companies was analysed.