PROJECT REPORT ON

“ROLE OF FINANCIAL MANAGER OF UPL LTD.”

Submitted in partial fulfillment of the requirements of the degree

Master of Business Administration
Centurion University of Technology and Management

By
Pratyush Ranjan Padhy
Registration no- 210402100039

Under the supervision of

Dr. Pramod Kumar Patjoshi

SCHOOL OF MANAGEMENT
CENTURION UNIVERSITY OF TECHNOLOGY & MANAGEMENT
BHUBANESWAR, ODISHA, INDIA, 2022

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 CONTENTS

SL. NO INDEX PAGE NO.

1 HISTORY 1

2 ROLE OF FINANCIAL MANAGER: 4

3 OPERATIONAL PERFORMANCE 5

4 DIVIDEND 6

5 FINANCE 6

6 AMALGAMATION 6
BUY–BACK OF SHARES BY BIO–WIN
7 7
CORPORATION LTD
8 UPL'S KEY FUNDAMENTALS 7

9 UPL'S SHAREHOLDING PATTERN 8

10 PROFIT & LOSS 9

11 FINANCIAL PERFORMANCE 10

12 BALANCE SHEET 10

13 CAPITAL STRUCTURE 11

14 DIVIDEND DECISION 11

15 FINANCING DECISION 11

16 EMPLOYEE STOCK OPTION PLANS 12

17 WORKING CAPITAL DECISION 12

18 CASH FLOW 12

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History
United Phosphorous (UPL) was founded in 1969 as a producer of crop protection products,
intermediates, specialty chemicals, and other industrial chemicals. UPL is India's largest agrochemical
manufacturer. It is one of the world's top five post-patent agrochemical producers.
It has created over 100 insecticides, fumigants, rodenticides, fungicides PGR, and herbicides, among
other chemicals.
UPL is a global player in crop protection products, with 123 nations as customers. Argentina,
Australia, Bangladesh, Brazil, China, Canada, Denmark, Indonesia, France, Hong Kong, Japan,
Korea, Mauritius, Mexico, New Zealand, Russia, Spain, Taiwan, South Africa, the United States, the
United Kingdom, Vietnam, and Zambia all have subsidiary offices.
UPL has 23 production facilities, including nine in India, two in Spain, four in France, three in
Argentina, and one each in the United Kingdom, Vietnam, the Netherlands, Italy, and China. All of
the units are ISO 9001 certified for quality assurance, 14001 certified for pollution control, and
OHSAS 18001 certified for health and safety.

Products
UPL manufactures plant growth and regulatory products in addition to crop protection goods. It has
created brands such as Saaf, Doom, Samar, Jhatka, SaathiI, Renova, and Ratol under this category.
Caustic Chlorine, White Phosphorus, Industrial Chemicals, and Specialty Chemicals are also
produced by UPL. Copter, Vijeta, Urethane, Phoskill, Sweep, UMet, TikTok, Oorja, and many others
are among the brands it has established.
It also features a captive power plant with a capacity of 48.5 megawatts.

Other Businesses
BEIL (Bharuch Enviro Infrastructure) is a corporation in which UPL owns a majority share. It has
built a secure centralized landfill facility. BEIL collects and disposes of solid/hazardous waste from
member industries in the region.
UPL's diversification strategy includes CEL (Chemo Electronics Laboratory). It is the only
manufacturer of chemical detector tubes in India and one of the leading manufacturers of dangerous
gas detection devices in India.
In Gujarat, ETL (Enviro Technology) has a shared wastewater treatment plant.

Awards
2010 – Finalist Nomination Award of Ernst & Young Entrepreneur of the Year
2009 – Lifetime Achievement Award from CHEMXCIL
2008 – Rolta Corporate Award 2008

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Role of Financial Manager:

A financial manager is a person who manages the finance of a business entity both efficiently
and effectively. A Finance Manager plays a significant role in an organization. It is the finance
manager who helps organizations in financial planning, assists organizations in the planning
and acquisition of funds, helps organizations in effectively utilizing and allocating the funds
received or acquired, assists organizations in making critical financial decisions, and helps in
improving the profitability of organizations, increases the overall value of the firms or
organizations, provides economic stability, encourages employees to save money, which in
turn helps them in personal financial planning.

A finance manager has to take decisions on whether the required funds should be raised from
loans/borrowings/debt or share capital. As they achieve higher scale through an asset-smart
strategy, their leading position across most brands enables them to command premium pricing
compared to the industry average and with occupancies improving, their revenues have grown
consistently. Another focus area for us has been to drive overall profitability by enhancing
operational efficiencies. These strategies have paved the way for the sustainable turnaround of
our operations with demonstrated margin expansion.
The financial manager has to take a different kind of decisions:
1. Raising of Funds

To meet the obligation of the business it is important to have enough cash and liquidity.
A firm can raise funds by the way of equity and debt. It is the responsibility of a
financial manager to decide the ratio between debt and equity. It is important to
maintain a good balance between equity and debt.

2. Allocation of Funds

Once the funds are raised through different channels the next important function is to
allocate the funds. The funds should be allocated in such a manner that they are
optimally used. To allocate funds in the best possible manner, the following point must
be considered

▪ The size of the firm and its growth capability

▪ Status of assets whether they are long-term or short-term
▪ Mode by which the funds are raised

These financial decisions, directly and indirectly, influence other managerial activities.
Hence the formation of a good asset mix and proper allocation of funds is one of the
most important activity

3. Profit Planning

Profit earning is one of the prime functions of any business organization. Profit earning
is important for the survival and sustenance of any organization. Profit planning refers
to the proper usage of the profit generated by the firm.

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 Profit arises due to many factors such as pricing, industry competition, state of the
economy, mechanism of demand and supply, cost, and output. A healthy mix of
variable and fixed factors of production can lead to an increase in the profitability of
the firm.

Fixed costs are incurred by the use of fixed factors of production such as land and
machinery. To maintain a tandem, it is important to continuously value the depreciation
cost of the fixed cost of production. An opportunity cost must be calculated to replace
those factors of production which has gone thrown wear and tear. If this is not noted,
then this fixed cost can cause huge fluctuations in profit.

4. Understanding Capital Markets

Shares of a company are traded on the stock exchange and there is a continuous sale
and purchase of securities. Hence a clear understanding of the capital market is an
important function of a financial manager. When securities are traded on the stock
market there involves a huge amount of risk involved. Therefore, a financial manager
understands and calculates the risk involved in this trading of shares and debentures.

It’s at the discretion of a financial manager as to how to distribute the profits. Many
investors do not like the firm to distribute the profits amongst shareholders as dividends
instead invest in the business itself to enhance growth. The practices of a financial
manager directly impact the operation of the capital market.

Operational Performance
In India, during the year, serious drought conditions prevailed in western and northern regions. In
earlier years also, there was a rainfall deficit. These conditions affected the agrochemical usage, both
in Kharif and Rabi crops. There was poor off-take of farm produce resulting in tight liquidity in the
market. Despite such an adverse scenario, the Company's insecticides were in good demand,
especially in the North against infestation of sucking insects. The new herbicide "Shagun" was also
well received in the market for wheat production.
Globally, commodity prices remained depressed throughout the year. Shortly also, no upside is
expected. Further, there was significant currency devaluation of a few currencies against the US
Dollar Given de–growth of the ag chem market, any attempt to increase in prices of agrochemicals
met with very limited success. Despite all these factors, the Company delivered sterling financial
results in FY 2016 with an 11% increase in revenues and 13.5% growth in profits. It managed this by
its diverse geographical presence, strong product profile, and prudent financial management.
In Latin America, the EI Nino effect prevailed in Colombia. This affected the production of rice,
potato, and corn. In Brazil, there was currency devaluation. This resulted in higher realization for the
local farmers for the farm produce. The company's fungicides, especially Unizeb Gold, were in great
demand in Brazil. However, the demand for insecticides contracted, mainly for Soya. Argentina
abolished export taxes on all commodities except Soya. The requirement of having an import license
for the agrochemicals was also removed. This led to the Latin American revenues growing by 25%
over the previous year.
In North America, continued dry conditions prevailed in western parts. In these parts consumption of
fungicides was less. The insect pressure was low in field crops, affecting the use of insecticides. There
was a reduction in the cultivation of rice and cotton. The Company's new herbicides performed well
in this market. The company's revenues from North America grew by 10% over the previous year.

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In Europe, there was the devaluation of the Euro. Any price increase for agrochemicals is met with
stiff resistance. Northern Europe suffered from dry summer affecting the usage of fungicides. In other
parts, winter was mild and spring set early. It is expected that the ag chem market in Europe will
remain flat shortly. The organic portfolio of the Company performed well. The fungicides business
also grew for potato and vine crops. The herbicides market was affected on account of the reduction
in the sugar beet area. Though the revenues for the company in Europe were flat, on a constant
currency basis the revenue growth was upwards of 5%.
In the rest of the World, dry conditions prevailed in Southeast Asia. There were severe floods in
Pakistan. Turkey was hit by frost and hailstorms. These factors adversely affected the ag chem
market. In North Africa and Iran, the economic embargo was lifted. This will help the Company grow
its business there. The Company is also gaining improved market access in Africa by getting more
registrations for its products. In Australia also, the market is improving. Revenues from the Rest of
the World grew by 2% over the previous year.
Some of the financial highlights of its global performance are as under:
a) Revenue from operations increased by 10% to C13,302 crores.
b) EBIDTA improved to 21.1%
c) Profit before taxes have gone up by 15% to C1626 crores
d) Profit after taxes have gone up by 15% to C1343 crores.

Dividend
Your Directors have recommended a dividend of 250% i.e. C5 per Equity Share of C2 each for the
financial year ended 31st March 2016, which if approved at the forthcoming Annual General Meeting,
will be paid to all those Equity Shareholders of the Company whose names appear in the Register of
Members as on 29th Jue, 2016 and whose names appear as beneficial owners as per the beneficiary
list furnished for the purpose by National Securities Depository Limited and Central Depository
Services (India) Limited.

Finance
(a) Fixed Deposits
The Company has not accepted fixed deposits during the year. No fixed deposits are outstanding as of
31st March 2016.

(b) Particulars of Loans, Guarantees, or Investments

The details of Loans, Guarantees, or Investments are given in the notes to the Financial Statements.

Amalgamation:
The Company has proposed a scheme of Amalgamation with Advanta Limited, whereby all the
business, assets, and liabilities of the said Advanta Limited will be transferred and vested into the
Company from the Appointed date, on the scheme becoming effective. The equity shareholders and
the creditors of both the companies have approved the scheme. The Company has now filed a petition
with the Hon'ble High Court of Gujarat for sanctioning the scheme.

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Buy–back of shares by Bio–Win Corporation Ltd.:
During the year under review, the wholly-owned subsidiary of the Company M/s Bio–win
Corporation Ltd. based in Mauritius, offered to buy back shares of U.S. Dollars 70 million. The
Company accepted the offer and shares of U.S. Dollars 70 million were offered under Buyback.
Necessary approval was taken from the Reserve Bank of India in this regard. After the said buy-back,
the Company continues to hold all the remaining existing shares of the said Bio–win Corporation Ltd.

UPL's Key Fundamentals

Parameter Values

Market Cap (in ₹ Cr.) 39,677.82

Earnings Per Share (EPS TTM) (₹) 7.94

Price To Earnings (P/E) Ratio 98.11

Book Value Per Share (₹) 156.26

Price To Books (P/B) Ratio 4.99

EBIT Margin (%) 9.64

PAT Margin (%) ROSE

ROCE (%) 8.04

PAT Growth (%) 123.67

Total Debt to Equity (D/E) Ratio 0.14

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UPL's Shareholding Pattern

SHARE HOLDING PATTERN

0% 13%

28% Promoters
Individuals
Institutions
FII
34% Govt.
9%
Others

16%

Share Holding Pattern (% of Shares Held)

CATEGORY OF SHAREHOLDER Total Number of Percentage Share
Shares Holding (%)

Promoter

Indian Promoter 13,22,49,517 25.98

Foreign Promoter 99,02,992 1.95

Total Promoter 14,21,52,509 27.92

Non-Promoter

Institutions

Mutual Funds / UTI 4,54,41,577 8.93

FI/Bank/Insurance 30,32,123 0.60

Govt 17,71,741 0.35

FRI 0 0.00

Other 21,36,36,428 41.96

Total Institutions 26,38,81,869 51.84

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 CATEGORY OF SHAREHOLDER Total Number of Percentage Share
Shares Holding (%)

Non-Institution

Bodies Corporate 1,58,61,198 3.12

Individuals (upto Rs. 1 lakh) 2,90,98,026 5.72

Individuals (over Rs. 1 lakh) 50,57,239 0.99

NRIs/OCBs 54,47,869 1.07

Others 3,96,46,163 7.78

Total Non-Institution 6,09,55,230 11.97

Total Non-Promoter 32,48,37,099 63.81

Depository Receipts 4,23,53,062 8.27

Total 50,93,42,670 100.00

Profit & Loss - UPL Ltd.Rs (in Crores)

Mar'22 Mar'21 Mar'20 Mar'19 Mar'18
12Months 12Months 12Months 12Months 12Months
INCOME:
Sales Turnover 16449.00 11345.00 9641.00 8660.00 7374.00
Excise Duty .00 .00 .00 .00 111.00
NET SALES 16449.00 11345.00 9641.00 8660.00 7263.00
Other Income 631.0000 113.0000 506.0000 560.0000 435.0000
TOTAL INCOME 17080.00 11458.00 10147.00 9220.00 7698.00
EXPENDITURE:
Manufacturing Expenses .00 501.00 386.00 337.00 237.00
Material Consumed 9882.00 6736.00 5924.00 5481.00 4274.00
Personal Expenses 767.00 685.00 646.00 551.00 486.00
Selling Expenses .00 87.00 99.00 84.00 72.00
Administrative Expenses 3743.00 1716.00 1381.00 1368.00 1245.00
Expenses Capitalised .00 .00 .00 .00 .00
Provisions Made .00 .00 .00 .00 .00
TOTAL EXPENDITURE 14392.00 9725.00 8436.00 7821.00 6314.00
Operating Profit 2057.00 1620.00 1205.00 839.00 949.00
EBITDA 2688.00 1733.00 1711.00 1399.00 1384.00
Depreciation 1044.00 977.00 891.00 724.00 666.00
Other Write-offs .00 .00 .00 .00 .00
EBIT 1644.00 756.00 820.00 675.00 718.00
Interest 377.00 307.00 272.00 185.00 135.00
EBT 1267.00 449.00 548.00 490.00 583.00
Taxes 85.00 214.00 77.00 81.00 28.00
Profit and Loss for the Year 1182.00 235.00 471.00 409.00 555.00
Non Recurring Items -6.00 -16.00 -11.00 -1.00 -7.00
Other Non Cash Adjustments .00 .00 .00 .00 .00
Other Adjustments .00 1.00 1.00 -3.00 .00
REPORTED PAT 1176.00 220.00 461.00 405.00 548.00

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 KEY ITEMS
Preference Dividend .00 .00 .00 .00 .00
Equity Dividend .00 458.00 407.00 407.00 357.00
Equity Dividend (%) .00 299.35 266.01 399.02 350.00
Shares in Issue (Lakhs) 7650.00 7640.45 7640.45 5093.43 5093.33
EPS - Annualised (Rs) 15.37 2.88 6.03 7.95 10.76
Rs (in Crores)

FINANCIAL PERFORMANCE OF COMPANY

Net profit

• 2022- Rs.1182 Cr

• 2021- Rs.235 Cr
Total comprehensive income for the year ended March 31, 2022, stood at Rs 16449.00 crore.

Particulars Mar'22 Mar'21 Mar'20 Mar'19 Mar'18

Liabilities 12 Months 12 Months 12 Months 12 Months 12 Months
Share Capital 153.00 153.00 153.00 102.00 102.00
Reserves & Surplus 8048.00 7633.00 7871.00 7870.00 7867.00
Net Worth 8201.00 7786.00 8024.00 7972.00 7969.00
Secured Loan 1665.00 .00 .00 .00 995.00
Unsecured Loan .00 1087.00 997.00 1365.00 .00
TOTAL LIABILITIES 9866.00 8873.00 9021.00 9337.00 8964.00
Assets
Gross Block 6386.00 8164.00 7458.00 6718.00 6374.00
(-) Acc. Depreciation .00 2566.00 2104.00 1737.00 1472.00
Net Block 6386.00 5598.00 5354.00 4981.00 4902.00
Capital Work in Progress .00 722.00 886.00 889.00 663.00
Investments 2374.00 1441.00 1406.00 1441.00 594.00
Inventories 2929.00 1943.00 1316.00 1866.00 1452.00
Sundry Debtors 5567.00 4046.00 3161.00 2733.00 2017.00
Cash and Bank 825.00 334.00 163.00 100.00 126.00
Loans and Advances 1552.00 1199.00 1542.00 1893.00 2296.00
Total Current Assets 10873.00 7522.00 6182.00 6592.00 5891.00
Current Liabilities 9600.00 6252.00 4677.00 4463.00 3018.00
Provisions 167.00 158.00 130.00 103.00 68.00
Total Current Liabilities 9767.00 6410.00 4807.00 4566.00 3086.00
NET CURRENT ASSETS 1106.00 1112.00 1375.00 2026.00 2805.00
Misc. Expenses .00 .00 .00 .00 .00
TOTAL ASSETS(A+B+C+D+E) 9866.00 8873.00 9021.00 9337.00 8964.00

Capital Structure - UPL Ltd.

Authorized
Period Instrument Capital Issued Capital -PAIDUP-

Shares Face Capital

From To (Rs. cr) (Rs. cr) (nos) Value (Rs. Cr)

Equity
2020 2021 Share 247.5 152.8 764045456 2.0 152.8

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 Equity
2019 2020 Share 247.5 152.8 764045456 2.0 152.8

DIVIDEND DECISION
The Board has recommended a dividend of 500% i.e. H 10/-per equity share of H 2/- each for the
financial year ended March 31, 2021, which if approved at the forthcoming Annual General Meeting
(AGM), will be paid to all those equity shareholders of the Company whose names appear in the
Register of Members and whose names appear as beneficial owners as per the beneficiary list
furnished for the purpose by National Securities Depository Limited and Central Depository Services
(India) Limited. The total dividend pay-out will amount to approx. H 764 crore (including tax).

FINANCING DECISION
(a) Deposits

During FY2021, the Company did not accept any deposit.

(b) Particulars of Loans, Guarantees or Investments

The details of Loans, Guarantees or Investments are given in the note nos. 5, 6, 32 and 35 to the
standalone financial statement.

(c) Changes in Paid-up Share Capital

During the year, no equity shares were issued and allotted. The paid-up share capital of the Company
as

at March 31, 2021 was H 1,52,80,90,912/- comprising of 76,40,45,456 equity shares of face value H
2/- each.

(d) Transfer to Reserves

The Company does not propose to transfer any amount to the reserves.

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EMPLOYEE STOCK OPTION PLANS
The Company has no active Employee Stock Option Plans as on March 31, 2021 considering that
there were no outstanding options under the Advanta India Limited Employees Stock Option and
Shares Plan - 2006 and Advanta Employee Stock Option Plan - 2013. There are no plans to make any
further grants under these schemes.

WORKING CAPITAL DECISION

• Working Capital refers to the short term funds to meet operating expenses. It is concerned
with the management of the firms current asset and current liabilities.
• Working Capital = Current assets – Current liabilities
In the year 2022 - Total current asset was Rs. 82,679.00 Cr, Total current liability was Rs. 53,371.00
Cr
Working capital was (82,679.00 – 53,371.00) = Rs.29,308 Cr
In the year 2021-Total current asset was Rs. 70,431.00, Total current liability was Rs. 45,851.00
Working capital was (70,431.00– 45,851.00) =24,580

CASH FLOW
ANNUAL FY 2022 FY 2021
Total Assets 82,679.00 70,431.00
Total Assets Growth (%) 17.39 0.50
Total Liabilities 53,371.00 45,851.00
Total Liabilities Growth (%) 16.40 -3.45
Total Equity 29,308.00 21,594.00
Total Equity Growth (%) 35.72 10.13
Current Ratio (x) 1.41 1.53
Total Debt to Equity (x) 1.05 1.32
Contingent Liabilities 0.00 781.00

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