A Study on Financial Performance Using Ratio Analysis at Emami Ltd free essay sample

The examination is made to assess the monetary position, the operational outcomes just as budgetary advancement of a business concern. This investigation clarifies manners by which proportion examination can be of help with since a long time ago rang arranging, planning and resource the executives to fortify monetary execution and help maintain a strategic distance from budgetary troubles. The examination not just tosses on the money related situation of a firm yet in addition fills in as a venturing stone to medicinal measures for Emami Limited. This undertaking assists with distinguishing and give recommendation the region of more fragile situation of business exchange in â€Å"EMAMI LTD†. Rundown OF TABLES Table NoName of TablesPage No. 5. 1Current Ratio27 5. 2Quick proportion 29 5. 3Cash ratio31 5. 4Average Collection Period34 5. 5Inventory Turnover Ratio35 5. 6Working Capital Turnover Ratio37 5. 7Fixed Assets Turnover Ratio39 5. 8Proprietary Ratio42 5. 9Debt to Equity Ratio43 5. 10Interest Coverage Ratio45 5. 11Gross Profit Ratio48 5. 12Net Profit Ratio49 5. 13Return on Investment 51 5. 14Return on Equity53 5. 15Return on Total Assets55 5. 16Comparative Balance Sheet as on 31st March 2001†200258 5. 17Comparative Balance Sheet as on 31st March 2002†200360 5. 18Comparative Balance Sheet as on 31st March 2003†200462 5. 9Comparative Balance Sheet as on 31st March 2004†200564 5. 20Comparative Balance Sheet as on 31st March 2005†200666 LIST OF CHARTS Chart No. Name of ChartsPage No. 5. 1Current Ratio28 5. 2Quick proportion 30 5. 3Cash ratio32 5. 4Average Collection Period34 5. 5Inventory Turnover Ratio36 5. 6Working Capital Turnover Ratio38 5. 7Fixed Assets Turnover Ratio40 5. 8Proprietary Ratio42 5. 9Debt to Equity Ratio44 5. 10Interest Coverage Ratio46 5. 11Gross Profit Ratio48 5. 12Net Profit Ratio50 5. 13Return on Investment 52 5. 14Return on Equity54 5. 15Return on Total Assets56 CHAPTER I Presentation 1. 1 COMPANY PROFILE 1. 1. 1 HISTORY OF THE COMPANY: Emami, which began as a makeup producing organization in the year 1974, progressing with expanded force has ventured into Emami Group of Companies of today. Despite the fact that beautifying agents and toiletries keep on being the central purpose region, different organizations in the Emami Group are performing similarly splendidly. From human services organization to meds, from land to retailing and, from paper to composing instruments, Hospital, Emami is making one example of overcoming adversity after another. 1. 1. 2 Vision and Mission : Vision An organization, which with the assistance of nature, takes into account the consumers’ needs and their internal desires for dreams of better life, in the fields of individual and medicinal services, both in India and all through the world. Strategic hone purchaser bits of knowledge to comprehend and address their issues with esteem included separated items which are sheltered, successful quick. †¢To incorporate our vendors, wholesalers, retailers and providers into the Emami family, along these lines fortifying their ties with the organization. †¢To enroll, create and rouse the best abilities in the nation and give them a situation which is requesting and testing. To fortify and encourage in the representatives, forceful emotive sentiments of unity with the organization. †¢ To maintain the principals of corporate administration and move towards decentralization to create long haul most extreme returns for all stake proprietors. †¢To contribute entire heart edly towards the earth and society and to develop as a model corporate resident. 1. 1. 3 Values: Respect for individuals: We treat people with pride and regard. We keep on being straightforward, open and moral in the entirety of our cooperations with sellers, merchants, retailers, providers, investors, clients and with one another. Purchasers amuse: We augmenting that our business can succeed just on the off chance that we can make and keep clients. We make items that offer an incentive for cash, which are separated and convey sheltered, powerful and quick arrangements. Trustworthiness: People at each level are required to stick to the best expectations of business morals. Anything less is inadmissible. Our moral lead rises above past arrangements. It is instilled in our corporate custom that is moved starting with one age of representatives then onto the next. We conform to relevant government laws and guidelines in the topographies where we are available. Quality: We are focused on greatness in all that we do. Our philosophy: There is constantly a superior way-We should think innovatively, consistently improve and seek after new plans to accomplish unprecedented answers for basic issues. Collaboration: Teamwork is the foundation of our business that conveys an incentive to our clients. We cooperate across titles, work obligations and hierarchical structure to share information and ability. The correct condition: It is our obligation to make a domain that assists workers with understanding their maximum capacity. Authority: We perceive that we can be a main organization through dynamic assignment and by making pioneers at each degree of the association. Network advancement: We keep on adding to the networks in which we work and address social issues capably. Our items are sheltered to make and use. We monitor common assets and keep on putting resources into a superior domain. Straightforwardness and investor esteem: We are resolved to be driven by our still, small voice and administrative norms, to convey an incentive to our investors, similar with our administration and money related quality. Top managerial staff The effective working of this rumored organization rests with the accompanying characters. Shri R S Agarwal, Chairman Shri R S Goenka, Director Shri Sushil Kr. Goenka, Managing Director Shri A V Agarwal, Director Shri Mohan Goenka, Director Shri H V Agarwal, Director Shri Viren J Shah, Director Shri K Khemka, Director Shri S N Jalan, Director Shri Vaidya S Chaturvedi, Director Shri K N Memani, Director Shri S K Todi, Director Management group †¢Smt. P. Sureka, Brand Director †¢Shri Manish Goenka, Brand Director †¢Shri Prasant Goenka, Brand Director †¢Shri Dhiraj Agarwal, Media Director †¢Shri Hari Gupta, President †Sales Shri Ashok Dasgupta, President †Operation †¢Shri R. D. Daga, Chief of Legal Affairs †¢Shri R. K. Surana, Sr. V. P. †Purchase Development †¢Shri N. H. Bhansali, Sr. V. P. †Finance †¢Shri S. Rajagopalan, Sr. V. P. †Production †¢Shri R. C. Gattani †Sr. V. P. †Projects Development †¢Shri D. Poddar, V. P. †Co-appointment †¢Shri A. B. Mukherjee, V. P. †Logistics †¢Shri A. Ghose, V. P. †Ayurvedic Division †¢Shri A. K. Rajput, V. P. â€Operations †¢Shri S. Grover, V. P. †Rural Marketing †¢Shri S. K. Mandal, G. M. †Systems †¢Shri Vimal Kr. Pande, G. M. †Sales †¢Shri P. N. Balakrishnan, G. M. â€Technical †¢Shri A. K. Joshi, Company Secretary †¢Shri H. K. Goenka, G. M. †Works †¢Dr. Neena Sharma, G. M. †Ayurveda (RD) †¢Shri Raj Kr. Gupta, G. M. †Purchase †¢Shri T. R. Rajan, G. M. †Production †¢Ms. Ratna Sinha †Head HR The most entrancing reality about the group is that however singular individual from the group capacities freely and expertly in their own regions however they are intently weave by an obligation of individual inclination. All the individuals from the Emami group cheerfully exist together as though relatives. 1. 1. 4 Profile of the Organization: Emami Limited is in the matter of assembling individual, excellence and social insurance items. The organization fabricates natural and Ayurvedic items using present day logical research facility rehearses. This mix empowers the organization to make items that are gentle, protected and powerful. The companys item bin includes more than 20 items, the major being Boroplus Antiseptic Cream, Navratna Oil, Boroplus Prickly Heat Powder, Sona Chandi Chyawanprash and Amritprash, Mentho Plus Pain Balm, Fast Relief, Golden Beauty Talc, Madhuri Range of Products and others. The items are sold over all states in India and in nations like Nepal, Sri Lanka, the Gulf nations, Europe, Africa and the Middle East, among others. . 1. 5 Manufacturing: Emami’s items are fabricated in Kolkata, Puducherry, Guwahati and Mumbai. The organization started activities at its completely computerized fabricating unit in Amingaon, Guwahati in 2003-04. 1. 1. 6 Network: The companys scattered assembling offices are supplemented with a solid item throughput, encouraged by a powerful circulation system of more than 2100 direct wholesalers and 3. 9 lakhs retail outlets. So as to venture its items more profound into the nation, direct selling has been reached out to rustic towns. Accordingly, rustic deals expanded considerably in 2003-04 contrasted with the earlier year. Emami is headquartered in Kolkata. The companys branch workplaces are situated across 27 urban areas in India. 1. 1. 7 Promoters: Emami is advanced by Shri R. S. Agarwal and Shri R. S. Goenka, Kolkata based industrialists. Emami’s shares are recorded on the Calcutta Stock Exchange, Bombay Stock Exchange and National Stock Exchange. 1. 1. 8 IT BACKBONE INTEGRATED INFORMATION TECHNOLOGY A productive data innovation organize is vital for a dynamic FMCG organization where the market requests change quicker than maybe in some other industry. At Emami, the mix of data innovation happens on a nonstop premise. This guarantees the organization reacts to changing commercial center real factors quicker than its rivals and that its items arrive at retail retires exactly when they are required. Thusly, this upgrades brand dedication and holds clients. A fruitful execution of the ERP in the workplaces, plants and stops expanded the company’s in general effectiveness. It empowered single-point information passage and multi-point data